Loading...
HomeMy WebLinkAbout2017-12-04 Agenda with BackupCit of Denton City Hall Y 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DENTON Meeting Agenda City Council Monday, December 4, 2017 11:30 AM Work Session Room Joint Meeting of the City Council of the City of Denton, Texas and the Denton Housing Authority on Monday, December 4, 2017 at 11:30 a.m. in the Council Work Session Room at City Hall, 215 E. McKinney Street, Denton, Texas at which the following item will be considered: 1. Work Session Reports A. ID 17-1643 Receive a report and hold a discussion with the Denton Housing Authority regarding the overall policies, procedures, budgets, financial arrangements, and other details for housing projects, programs, and potential partnerships between the City of Denton and the Denton Housing Authority. Attachments: Exhibit 1 - Agenda Information Sheet Exhibit 2 - October 10, 2017 Work Session Item Exhibit 3a - DHA Cover Letter Exhibit 3b - DHA Board of Commissioners Exhibit 3c - DHA Property List Exhibit 3d - DHA Meeting Minutes Sept 2016 -Present Exhibit 3e - DHA Monthly Financials Jan 2016 -Present Exhibit 3f - DHA Budgets 2013 to Present Exhibit 3g - DHA Audits 2014-2016 Exhibit 3h - DHA Correspondence -Info to City Staff CERTIFICATE I certify that the above notice of meeting was posted on the bulletin board at the City Hall of the City of Denton, Texas, on the day of , 2017 at o'clock (a.m.) (p.m.) CITY SECRETARY NOTE: THE CITY OF DENTON CITY COUNCIL WORK SESSION ROOM IS ACCESSIBLE IN ACCORDANCE WITH THE AMERICANS WITH DISABILITIES ACT. THE CITY WILL PROVIDE SIGN LANGUAGE INTERPRETERS FOR THE HEARING IMPAIRED IF REQUESTED AT LEAST 48 HOURS IN ADVANCE OF THE SCHEDULED MEETING. PLEASE CALL THE CITY SECRETARY'S OFFICE AT 349-8309 OR USE TELECOMMUNICATIONS DEVICES FOR THE DEAF (TDD) BY CALLING 1 -800 -RELAY -TX SO THAT A SIGN LANGUAGE INTERPRETER CAN BE SCHEDULED THROUGH THE CITY SECRETARY'S OFFICE. Page 1 Printed on 121112017 City Hall City of Denton 215 E. McKinney St. Denton, Texas 76201 www.cityofdenton.com DEN'rIN File #: ID 17-1643, Version: 1 Legislation Text AGENDA CAPTION Receive a report and hold a discussion with the Denton Housing Authority regarding the overall policies, procedures, budgets, financial arrangements, and other details for housing projects, programs, and potential partnerships between the City of Denton and the Denton Housing Authority. City of Denton Page 1 of 1 Printed on 12/1/2017 powered by I-eg;gl;>karI City of Dent _ on city Hale 41"I&IMMM215 E. McKinney Street DENTON Denton, Texas www.cityofdenton.com AGENDA INFORMATION SHEET DEPARTMENT: City Manager's Office CM/ DCM/ ACM: Todd Hileman DATE: December 4, 2017 SUBJECT Receive a report and hold a discussion with the Denton Housing Authority regarding the overall policies, procedures, budgets, financial arrangements, and other details applicable to housing projects, programs, and potential partnerships between the City of Denton and the Denton Housing Authority. BACKGROUND In May 2017, City Council requested staff to research how other municipalities consider requests of support for housing tax credit projects and if a review process could be implemented to provide for a thorough review of proposed projects requesting support and set clear deadlines and expectations. Staff presented a draft application and policy at a Council work session on June 27, 2017. After receiving Council feedback, staff revised the application and policy, gathered feedback and input from the DHA and potential developers, and presented to City Council on October 10, 2017 (see Exhibit 2). During the October 10 work session, City Council requested a joint workshop with the Denton Housing Authority (DHA) to discuss the proposed housing tax credit request application process and to more broadly have the opportunity for the two governing bodies to discuss the partnership between the City of Denton and the Denton Housing Authority and the sharing of key financial and policy information regarding any potential projects. DISCUSSION Partnership between the City of Denton and Denton Housing Authority The relationship of the City of Denton to DHA is controlled by Chapter 392 of the Local Government Code. A municipal housing authority, like DHA, is created by a resolution adopted by the municipal governing body. The City Council passed such a Resolution in 1970 creating the municipal housing authority. It was determined that a housing authority was needed at the time because there were few dwelling accommodations for elderly, and low-income citizens in Denton. The municipal housing authority is a separate unit of government operating under its own rules and regulations and those of the Department of Housing and Urban Development (HUD). The only formal relationship between the City of Denton and DHA is through the Mayor. The Mayor appoints Commissioners to the DHA Board made up of 5 citizens. The Mayor also has sole authority to remove commissioners of the DHA for inefficiency, neglect of duty, or misconduct in office. Background documents, including recent DHA Board minutes and financial information, were requested by Mayor Watts. The information is attached to this agenda item as Exhibit 3. Recent City Council Consideration of DHA Items In early 2017, the City Council considered requests for resolutions of support for Housing Tax Credit (HTC) projects and a request from the Denton Housing Authority for City Council to only support HTC projects that were partnered with the DHA. Below is a brief outline of the requests and dates: • January 10, 2017 — A summary of the Texas Department of Housing and Community Affairs (TDHCA) Tax Credit Program was presented to the City Council. The purpose of the item was to seek direction on how to proceed with current and future requests for resolutions from developers applying for state tax credit. • February 7, 2017 — The DHA presented their mission and shared information on existing housing programs and partnerships, and asked the City Council to consider adopting a policy to only support resolutions for projects that partnered with the DHA. Four (4) requests were also presented to City Council — Palladium Denton (9%), The Reserve at Sherman (9%), The Standard at MedPark Station (4%), and The Hudson at MedPark Station (4%). • February 21, 2017 — Two (2) resolutions of support for Palladium Denton (9%) and The Reserve at Sherman (9%) were presented to City Council and approved. • May 2, 2017 — DHA, in partnership with a private developer Oj ala Holdings, requested two (2) resolutions of support for The Standard at MedPark Station (4%) and The Hudson at MedPark Station (4%). City Council requested more information, including the business plans and financial information. • May 9, 2017 — City Council approved a resolution of support for the Hudson at MedPark Station (senior housing), but did not approve a resolution for the Standard at MedPark (multi- family). Through the review of these projects and the tight timeframes from the requestors, City Council requested staff to research how other municipalities consider requests of support for HTC projects and if a review process could be implemented to provide for a thorough review of proposed projects requesting support and set clear deadlines and expectations. Housing Tax Credit Application and Policy In September 2017, City staff met with representatives from the DHA to review the goals of implementing an application for HTC requests, which included establishing expectations with applicants, increasing transparency, and streamlining the review process of projects for Council. Staff provided the draft application and policy and the DHA provided some general feedback at the meeting, as well as followed up with a letter the following week (included in Exhibit 3h). More information on the revised draft application and policy and presentation to Council on October 10, 2017 is attached as Exhibit 2. The purpose of this joint work session with the City Council and DHA is to allow for discussion between the two governing bodies. Depending upon the discussion and City Council direction, City staff can bring back any items for consideration for a future Council meeting. Please note that the City may receive requests for resolutions of support for 9% housing tax credit projects beginning in January 2018 as the deadline to submit 9% applications to the TDHCA is in March 2018. PRIOR ACTION/REVIEW (Council, Boards, Commissions) A general outline of recent activity is shown above, in addition to City Council work sessions on June 27, 2017 and October 10, 2017 to review a draft application and policy to review requests of support for HTC proj ects. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Safe, Liveable & Family -Friendly Community Related Goal: 4.5 Provide support to citizens in need through social service agencies and programs EXHIBITS 1. Agenda Information Sheet 2. AIS from October 10, 2017 with Draft Application and Policy 3. Background Documents a. DHA Cover Letter b. DHA Board Members c. DHA Properties d. DHA Board Meeting Minutes (Sept. 2016 — present) e. DHA Monthly Financial Statements (Jan. 2016 — Aug. 2017) f. DHA Approved Budgets (FY 2013 — present) g. DHA Audits (FY 2014-2016) h. DHA Correspondence/Info to City Staff Respectfully submitted: Bryan Langley Deputy City Manager Prepared by: Sarah Kuechler Assistant to the City Manager Presentation to the Denton City Council "Housing Tari Credit Applications" g Dente HousIng Authority J":P1 NIS February 7, 2017 Denton Housing Authority The Denton Housing Authority was formed to address the housing needs of low income families in the city of Denton. It's mission is: "To transform DHA into a premier housing authority through honest and effective leadership by providing quality affordable housing and promoting programs that foster economic independence to enhance the lives of our clients and enrich our communities. " DHA's Residential Developments Peen Place Apartments, South Locust, Deaton, TX 762o i 24 Units Ramage A arfi n nit 2,501 Norffi BeItAvenue, D:uuto p TX -,62o 114 Units Renaissance Courts Apartments 1224 E. Hidwry, Denton, TX 76,2o5 150 Units (@I Denton's Rental Housing Demand APARTMENT MARKETDATA, LLC Conducted a rental market analysis that indicated the following: • Currently the Denton rental market is 98.9% occupied. • Employment growth shows demand for 3,937 new rental units over the next five years based on a conservative 3.0% annual growth estimate. poi Denton Housing Authority DHA currently has 3,000 households on the Housing Choice Voucher waiting list. a Housing Tax Credit (HTC) Program • The Housing Tax Credit Program is codified in Section 42 of the Internal Revenue Code of 1986 as a means of directing private capital toward the creation of affordable rental housing. • Tax Credits are a dollar -for -dollar tax reduction for a 10 year period for the tax credit investor a Housing Tax Credit Program • Use of the credits comes with a mandatory 15 year compliance period • HTCs are awarded to owners of projects, who then sell the credits to investors for a certain price, which then becomes the equity contributed to the project. (@I Housing Tax Credits • Minimum 30 Year Affordability Commitment • 15 year Compliance Period • 15 year Extended Use Period — Project owner must agree to extend low- income housing use for at least 15 years • This agreement is binding on the project owner AND successors • Agreement is recorded in the real property records and can be enforced by tenants a Housing Tax Credit Program • The HTC Program in Texas is administered by the Texas Department of Housing and Community Affairs (TDHCA) • There are two different HTC Programs: • A Competitive 9% Program and, • A Non -Competitive 4% Program • Each HTC Program is funded from different tax credit allocations (@I Income (60%) Income (50%) Area Medium Income (AMI) $71,700 (Denton County) $30,112 $25,100 $34,425 $28,700 $38,378 $32,300 $43,012 $35,850 $46,462 $38,750 (@I Non -Competitive 4% HTC Program • TDHCA accepts and funds applications year round • Although, there is a State wide cap as to the amount of credits that can be awarded annually, the cap is rarely reached. • Tax exempt bonds are also part of the financing of the housing development • The bonds may be issued by an affiliate of a Housing Authority, a Municipality, a County or the State • The application must include a resolution of "Non -Opposition" must be approved by the Municipality or the County if the site is in an unincorporated area (@I Competitive 9% HTC Program • The 9% Program has an annual application and funding cycle • This year, the pre -applications were due January 9, 2017 • The final applications are due March 1, 2017 • The awards are made in the third week of July, 2017 • The Credits are awarded based on a Regional Allocation Formula • Applications are scored and ranked within their region in accordance with the rules and laws outlined in the Qualified Allocation Plan (QAP) • The final application must include a resolution from the local unit of government • In 2017, 85 pre -applications were submitted in Region 3 a IVIV Mayo, 1 Current and Potential Partnerships Se'r've at (@I The Veranda — NRP Group In 2015, DHA executed a MOU with a private developer that outlined the business terms to create a partnership to construct a 322 unit residential development. The Veranda is a workforce housing development for residents whose income is 60% of Area Medium Income (AMI) or less, adjusted for family size. The terms of the MOU allowed DHA to share in the distribution of the developer fee and cash flow. The DHA also retains the right of first refusal to purchase the development after 15 years. The Veranda was financed in part with 4% tax credits. The Denton City Council approved a resolution for these projects. The Standard and Hudson at MedPark Station In 2016, DHA entered into a MOU with affiliates of Oj ala Holdings, a private developer, that outlined the business terms to create two partnerships to construct two residential developments. The Standard at MedPark Station, a 263 units family development and the Hudson at MedPark Station, a 160 elderly development. The terms of the MOU will allow DHA to share in the distribution of the developer fee and cash flow of both projects. The DHA also retains the right of first refusal to purchase the developments after 15 years. Both MedPark Station developments are scheduled to be financed in part with 4% tax credits. The Denton City Council will be requested to approved a resolution for these projects. G)i 2017 9% HTC Applications • Pre -applications for the 2017 9% HTC awards were due on January 9, 2017. • TDHCA received 85 applications from Region 3, of which 3 applications were for projects in the city of Denton. • As of January 31, 2017 DHA negotiated a MOU with one of the developers to create a partnership for the purpose of submitting a final application for a 9% HTC award. • The application will require a resolution of support from the City Council to be approved. (@I 2017 9% HTC Applications • Palladium — Denton • Family Development —180 Units • MOU with DHA • Reserve at Sherman • Family Development —120 Units • Negotiating a MOU with DHA as of 1-31-17 • Mayhill Pointe • Family Development —150 Units • As of 1-31-17, no contact with DHA (@I Development The Veranda DHA/Developer Partnerships Partner Type No. of Units Est. Revenue (DHA 15 Years) NRP Family 322 MedPark Standard Ojala Family MedPark Hudson Ojala Elderly Palladium Palladium Family Totals 263 160 00 $3,000,000 $2,400,000 $1,900,000 $2,500,000 926 $998009000 Use of Funds DHA will use funds generated from the partnerships with developers to: ➢ Create more quality affordable housing, ➢Fund DHA programs and operations, and ➢Assist in funding support service programs that are provided by other community agencies. (@I Denton Supportive Services ➢DHA will provide up to 5% of the funds received from the partnerships to local agencies to provide services for DHA clients and the community. ➢DHA may enter into a partnership with United Way of Denton County to distribute the funds. ➢DHA may establish other programs that address other housing needs and services. (@I Request to the City Council The DHA requests that before the Denton City Council approves a resolution for a Housing Tax Credit application (4% or 9%), that the developer/applicant have an executed Memorandum of Understanding with the DHA related to the proposed project. a Criteria to be used by DHA to select proposed developments are, but not limited to the following: • The response to local market demand • Site Characteristics: • Location • Neighborhood Amenities • Proposed Financing • Experience of the Developer • Management of the Development • Addressing special need populations in the community The MOU will include, but not limited to the following: • Location of the proposed development • Type of development (Family or Elderly) and number of units • Define DHA's role in the ownership structure • Sharing in the developer fees and cash flow • Authority to review the design and monitor the construction • Right of first refusal to purchase the development after the 15 year compliance period • Review and approve the selection of the tax credit investor, lender and property management company • Require developers to set aside 3 — 5 units per development for special needs populations, including homeless and veterans �Ww families. The Denton City Council is requested to consider adopting a similar Resolution as listed below. Resolution No. A RESOLUTION OF THE CITY OF DENTON DECLARING THE CITY COUNCIL'S POLICY ON ISSUING RESOLUTIONS OF "NON OPPOSITION" AND "SUPPORT" FOR FOUR PERCENT (4%) AND NINE PERCENT (9%) LOW INCOME HOUSING TAX CREDIT APPLICATIONS TO THE TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS FOR MULTI- FAMILY DEVELOPMENTS WITHIN THE CITY OF DENTON. (a DATE: February 15, 2017 215 E M HM , DENT04 TEXAS 76201 f + 0)349.830+ -FA 0)349.8596 CITY MANAGER'S OFFICE MEMORANDUM TO: Todd Hileman, City Manager FROM: John Cabrales, Assistant City Manager SUBJECT: Denton Housing Authority Housing Tax Credit Resolution Issues ISSUE The Denton Housing Authority (DHA) has been before council in two recent work session discussions to ask the council not to issue any resolutions of support for any housing tax credit development applications in Denton, unless the developer and DHA have executed a Memorandum of Understanding (MOU) related to the proposed development. These discussions have raised several questions with council and below are answers to some of those questions. The information was provided by DHA, Denton ISD, Denton County and the Community Development Division. There is another council work session discussion scheduled for Feb. 21 and two germane action items that are resolutions of support for 9% housing tax credit development applications. QUESTIONS How is the funding from DHA derived from these projects? DHA enters into an MOU with a private housing tax credit developer, that among other things allows DHA to share in the developer fees and other cash flow that are derived from the sale of low income housing tax credits (if awarded) and bond revenues. These developer fees are usually deferred over a 15-17 year period. DHA has partnered with private developers on three of the eleven tax credit developments in the City. Currently DHA has Pecan Place (1993), Renaissance Courts (2004) and The Veranda (2015) (Exhibit 1). In the MOU agreement for the 150 unit Renaissance Courts, DHA owned the land and negotiated to receive 50% of the developer fees and 100% of the cash flow after 10 years. In total DHA has received $700,000 in developer fees from this project and has used it to pay asset management and loan refinancing fees. Renaissance Courts is expected to complete payment of loan to DHA by 2018. DHA does have the right of first refusal to purchase Renaissance Courts at the end of the 15 year compliance period, which is estimated to be 2020-21, and will need approximately $2 million for this purchase. "Dedicated to Quality Service„ www.citvofdenton.com In 2016 DHA entered into an MOU (Exhibit 3) on the 322 unit residential development known as The Veranda. As a result of the agreement, DHA will receive 35% of the developer fees and 50% of the other cash flow. On page 11 of Exhibit 3, there is a breakdown of the annual payments to DHA over a 17 year period. For year one of this agreement, DHA received approximately $122,500 for developer fees in the FY 2015-16. They will not receive any more developer fees until The Veranda reaches "stabilization" or "lease up," defined by the state as 90% of the units leased for three consecutive months. When stylization is reached, which is estimated to be November 2018, then they can resume collection of a portion of the developer fees annually, which are scheduled to end by the tenth year. However, in the tenth year, the cash flow payments begin and go until year 17, of which DHA receives 50%. DHA has the right of first refusal to purchases the property in year 15, and if they do purchase the property they will get 100% of the cash flow. Of the developer fees received thus far from The Veranda MOU, DHA has used these revenues to pay for construction monitoring and other repairs and upgrades at other DHA properties. DHA expects to receive additional developer fees in 2018. Some of these fees will be used to go towards the purchase of Renaissance Courts and other development opportunities. What is the funding that DHA is expecting to get for the two 9% tax credit projects? DHA has been in MOU discussion with Palladium for the proposed 180 unit Palladium development, and with MV Residential for the 120 Reserve at Sherman development. The proposed agreements have a 15 to 17 year developer fee and cash now pay out with the following breakdown: - Developer = 50% DHA = 35% • Historically Underutilized Business (HUB) = 15% (This is a state mandated percentage if a HUB is brought on as a partner.) The two developers want to bring on a HUB as a partner because under the Texas Department of Housing & Community Affairs (TDHCA) scoring of housing tax credit applications, the developer will get an additional point for having a HUB partner. This will also impact the cash flow breakdown to the following. • Developer 48% • DHA 28% • HUB 14% • Tax Credit Investor 10% If DHA had land to offer up for these types of developments, then they would be able to negotiate a higher percentage of the developer fees or cash flow. For example, the Fort Worth Housing Authority (FWHA) has been able to negotiate 50% in developer fees and 50% in cash flow because they have used land owned by FWHA for the development. FWHA also has taken advantage of a Department of Housing and Urban Development (HUD) program to convert existing public housing units into Rental Assistance Demonstration (RAD) units. Under RAD, Housing Authorities are able to raise substantial amounts of capital to rehabilitate or redevelop deteriorating public housing developments. The RAD program operates by converting public housing subsidies into Section 8 vouchers that are attached to some of the units in the housing tax credit development. Also, the City of Ft Worth has approved a policy that all applicants for housing tax credits, partner with the housing authority or another public entity, require a percentage of RAD units or supportive housing units, and a minimum of market rate units. Denton Housing Authority does not have or own public housing units so they do not qualify for the RAD credits. How would the 5% funds the DHA mentioned going to United Way be used? How was 5% derived? Why not 10%, 50%? DHA has a need for programs and services to better improve the lives of the families they serve and to foster independence and self-sufficiency. These programs could include financial management, budget training, job training, childcare classes, counseling, help with utilities, etc. These programs are already available here in Denton, and DHA does not want to duplicate them. They also know that a lot of these agencies are losing local, state, and federal funds. However, revenues from developer fees could be used to keep families from becoming homeless. For example, if a voucher family's utilities are shut off, DHA is required to terminate them from the program, which could result in the family becoming homeless. Funds received from non-federal sources, such as developer fees, could be used to pay for utility bill and for other services that will help families stay in stable housing. DHA's ability to partner with a developer allows them to earn additional revue streams, and not just rely on the federal funding. Their ability to negotiate developer fees and cash now from these types of projects also allows some of these funds to remain here locally. DHA understands that partnering with the United Way of Denton County and other non -profits makes sense because many of their clients are supported by local non-profit programs and services. An amount of 5% of annual revenues was being discussed, because DHA feels that they will need most of the funding from these agreements to purchase the development after the 15 years. They are already partnering with United Way by the providing the land for a new office building & community center and United Way in turn will provide space for DHA to use for meetings with their clients. DHA is also working with United Way to provide funds for Supportive Housing needs in the community. They also already partner with Giving HOPE, Inc. to provide funds for a Security Deposit & Application Fee program for clients searching for better housing. DHA proposes to allocate some of total developer fees ($1,265,000) for their current fiscal year (Exhibit 4, page 2) in the following way. • $63,250 to United Way agencies that provide services to DHA clients 0 $150,000 to United Way to develop a Pilot Housing Program $5,000 to Giving Hope for Security Deposit payments $450,000 reserve towards the purchase of Renaissance Courts The remaining balance will be used for DHA operations Is it true that in the past five years, no new affordable housing built? Since 1993, Denton has had eleven housing tax credit developments (see exhibit 1) with the last one being 322 multifamily unit development known as The Veranda. The Texas Department of Housing & Community Affairs (TDHCA) scores all housing tax credit applications within the rules outlined in their Qualified Action Plan (QAP). According to the QAP any housing tax credit development proposed in a community, whose population is greater than 100,000, and has more than 20 percent Housing Tax Credit Units per capita, shall be considered ineligible unless the Governing Body of the municipality passes a resolution of support. In other words, if a city has two times or more than the state average of affordable housing units ratio to the total household units in a city, then the developer will not get any points towards their application, unless they convince the city council to pass a resolution of support. At one time the City of Denton was over the threshold and resolutions of support were required by TDHCA, the City of Denton has been at two times or higher of said state average so we were not an attractive community for housing tax credit developers looking to score points on their application. However, due to the growth in population in Denton we recently dropped below this state average so developers are coming back to Denton to try and build these types of developments. Construction of Housing Tax Credit properties has been only one method used to support affordable housing in the Denton community. Over the past 32 years, the City of Denton has supported affordable housing by providing grants and very low-interest loans to low income homeowners who would probably not have been able to stay in their homes or may have been in a unit that had some significant and possibly dangerous problems. HUD funding has also been used to assist low and moderate -income households to purchase homes by providing funding for down payment and closing costs. Over the years, the City has worked with the Denton Affordable Housing Corporation, Habitat for Humanity and Cumberland Presbyterian Children's Home to provide affordable housing either through renovation, purchase and rehabilitation, or new construction. Habitat currently has a funding agreement with the City to build a unit on Alexander St. and DAHC has funding to renovate a six-plex on Bolivar Street. Though HUD funding has been reduced significantly in the last few years, the City continues to use the funds to support affordable housing in a variety of ways. Also, the QAP changes each year so developers must locate available land in a qualified census tract (QCT) in order to score enough points to receive an award. DHA has submitted pre - applications in previous years, but could never score enough points, based on the location of the land they owned near downtown and in northern Denton. According to the Census Bureau's 2015 American Community Survey (ACS), there are a total of 48,282 "housing units" in Denton. Occupied "Housing units" in Denton are listed at 45,529 and comprise 94.3%. Renter occupied units amount to 23,744 and comprise 52.2% of the occupied units (45,529). The ACS also shows an increase in rental households earning $15,000 - $49,000 from 2010 to 2015. There were 15,098 households in 2010, and 16,654 in 2015 for an increase of 1,556 households or 10.31%. Employment growth shows demand for 3,937 new rental units over the next five years based on a conservative 3.0% annual employment growth estimate. DHA current voucher holders experience a difficult time locating units to use the voucher, especially 1& 2 bedroom units. DHA has 3,000 families on their waiting list. They are expecting a reduction in HUD funding and may have to reduce their program from 1536 vouchers/assisted families to 1420. What amount of taxes is the city forgoing for each project? It is not known what the value of either the 180 unit Palladium development or the 120 unit Reserve at Sherman development will be. However, if we use the value of The Veranda development in the financial documents (Exhibit 3) it shows that the cost of the land acquisition and building is $47,568,010 million. Because of the developer's partnership with DHA, this development is tax exempt. Had the City been able to collect taxes for this property we estimate that had the development been completed for FY 2016-17 the taxes would have been approximately $325,051. Our Building Inspections (BI) Division uses a multiplier from the International code council as a way to provide values for different types of buildings. According to BI, they have given The Veranda project a multiplier of $107.72 per square foot, which gives the buildings a value of $45,953,760. The financials from this agreement estimate the land acquisition costs at $2,500,000 so when we add these two together for a total of $48,453,760, which is close to the values in the financial documents. It is important to note that a housing tax credit development only becomes tax exempt when it partners with a housing authority. Also, under state law DHA is only allowed to partner with two 9% developments per year, but it is not limited to the number of partnerships it can have with 4% developments. Financials for DHA Some additional financial information was requested from DHA. They have provided us with a one page overview of their FY 2016-17 Budget (Exhibit 4), their accountant's compilation report on their balance sheet as of January 31, 2017 (Exhibit 5) and their year-end auditor's report for FY 2014-15 (Exhibit 6), and their negotiation activities with housing tax credit developers (Exhibit 7). DHA's current budget shows total operating income of $3,643,160. Current budgeted expenses are $2,972,949, leaving a net operating income of $670,211. They also receive $11,000,000 in Housing Assistance Payments (HAP) funds to distribute annually to landlords, and these are restricted to HAP. DHA financial as of January 2016 (Exhibit 5) show the housing authority's assets and liabilities and income statement for the first four months of the fiscal year. Their total assets are $9,056,123. The majority of these assets are restricted (HUD funding) and most of the land is tied to the developments. The operating revenues for each program are listed on page 5 and show operating revenues and expenses for the current fiscal year. Why do Developers want to work with Housing Authorities? Private developers choose to work with local housing authorities in order to better structure their deals financially and to have a local connection to the community. Housing Authority's bring a wealth of community knowledge and experience and can better assist them in going through the planning process with the local municipalities. Property and sales tax exemptions allow developers to save thousands of dollars for supplies and materials and real estate tax. Sometimes these expenses alone can make the business performa unattractive for the development. Also, the instability of the current market has lowered the price for the sale of the tax credits, most recently from $1.06 to $.85. This means that the revenue from the sale of the credits will be much lower than expected, and thus partnering with a housing authority is much more desirable to a developer. Housing authorities also bring to the table a waiting list of potential applicants already looking for affordable housing and families on the wait list are provided rental opportunities with the development before opening it up to the general public. How are school districts and County allowed input? State law does not require applicants for tax credits to get "support" from the schools or the county. However, DHA does try to notify and work with the school so that they will know of potential population increase in the school in which the development will be located. DHA did receive a letter of support from the school superintendent for The Veranda. Staff did reach out to Denton County and Denton ISD (DISD) to solicit any concerns or input regarding the proposed 180 unit Palladium development and the 120 Reserve at Sherman development. Denton County Judge Mary Horn stated that she was not in support of the developments, and Commissioner Bobbie Mitchell stated that she was in support. DISD is supportive of affordable housing and is not opposed to these developments, but they do have concerns about the impact that the amount of children that these developments would place in their schools. They are also concerned about the impact to some of their programs such as the free and reduced lunch and Communities in Schools. As of the drafting of this memo, they had not submitted their letter they were drafting for council consideration. EXHIBIT 1 TEXAS DEPARTMENT OF HOUSING AND COMMUNITY AFFAIRS Inventory of Developments Placed in Service or Under Construction as of January 26. 2017 Board Meeting TDHCA# Program Type Original TDHCA# Year Board Approval Development Name Project Address Project City Project County Zip Code LIHTC Amt Awarded Total Units LIHTC Units Population Served Apt. Phone # 93010 9% HTC 1993 1993 Pecan Place 302 S. Locust Si. Denton Denton 76201 $209,406 24 24 Elderly (940) 484-9535 94138 9% HTC 1994 1994 Country Park Apartments 1606 East McKinney St. Denton Denton 76209 $701,222 120 120 General (940) 243-0007 96003 9% HTC 1996 1996 The Waterford at Spencer Oaks 2100 Spencer Rd. Denton Denton 76205 $1,128,301 208 156 General (940) 591-8400 98-02T 4 % HTC 1 1998 1998 1 Pebblebrook Apartments 191 Dutchess Dr. Denton Denton 76208 $650,859 250 1 250 General (940) 243-2098 01408 4% HTC 2001 04/26/01 Rosemont @ Pecan Creek (fka Knoll 3500 E. McKinney Denton Denton 76205 $932,246 276 276 General (940) 383-9400 01409 4% HTC 2001 04/26/01 Primrose @ Sequoia Park (flea Bluffvi 1400 E. University Dr. Denton Denton 76209 $728,563 250 250 General (940) 383-4344 02474 4% HTC 2002 04/10/03 Quail Creek North 3500 Quail Creek Drive Denton Denton 76201 $1,039,028 264 264 General (972) 733-3399 04151 9% HTC 2004 07/28/04 Renaissance Courts* 1224 E. Hickory Si. Denton Denton 76205 $993,822 150 120 General (940) 383-3039 05616 4% HTC 05447 2005 09/16/05 Providence Place II 3500 Quail Creek Dr. Denton Denton 76208 $1,071,070 252 252 Elderly 972-239-8500 07037 9% HTC 04151 2007 10/12/06 Renaissance Courts 1224 E. Hickory St. Denton Denton 76205 $65,771 0 0 General (940) 383-3039 11248 9 % HTC 2011 07/28/11 The Roxton 307 N Loop 288 Denton Denton 76209 $1,362,651 126 122 General (305) 854-7100 15411 40/.iTC 2015 12/17/15 The Veranda 2420 E. McKinney Street Denton Denton 76269 $1,666,107 322 322 General (940) 383-3039 Denton Count* 11 `TDHCA REPORT LISTS 12 -Renascence Court (04151 to 07037) listed twice due to second tax credit award. One was removed. SOURCE LIP //—tdhca state txus/m,mramilymousing-tax-credits-9pctfndexhtm 2/16/2017 2:00 PM EXHIBIT 2 MEMORANDUM OF UNDERSTANDING BETWEEN DENTON PUBLIC FACILITY CORPORATION AND NRP HOLDINGS LLC "Denton Apartments" This Memorandum of Understanding (the "MOU") is between Denton Public Facility Corporation ("DPFC"), a Texas public facility corporation, and NRP Holdings LLC ("NRP"), an Ohio limited liability company, and is dated effective as of 2015. NRP is a developer of affordable housing in the State of Texas. DPFC is a public facility corporation whose mission, in iaart, is to provide safe, decent and sanitary housing for low-income persons. NRP and DPFC hereby agree to work cooperativOy to develop affordable housing at the following location, in accordance with the terms of this MOU: Denton Apartments, a 322 unit multifamily apartment development to be located in the 2400 block of East McKinney Street, Denton, Denton County, Texas 76209 (the "Project"). In order to accomplish this purpose, the parties agree as follows: AGREEMENTS: A. Definitions, 1. Class B LP -An affiliate of NRP that, to the extent permitted by applicable law, will be admitted to the Partnership. 2. Closing — The initial closing and funding of Construction Loan and Equity financing to the Partnership. 3. Construction Loan - The loan identified in Section E.1 hereof for the construction of the Project. 4. Developer - NRP Holdings LLC. 5. Development Fee - The fee paid to Developer in the amount set forth in Section L.1 hereof. 6. Equity - The equity financing of the Project identified in Section E.2 hereof. tl 11838.00000314834-1344.9000.v7 7. General Partner - A single purpose entity affiliated with DPFC that will be admitted to the Partnership as general partner. S. Guarantor - One or more affiliates of the Class B LP which will guarantee the Construction Loan and Permanent loan and Equity that shall be reasonably acceptable to the General Partner. 9. Investor LP -The provider of the Equity through a purchase of an Investment in the Partnership entitling the Investor LP to the Tax Credits, The Investor LP may, at Developer's option and with the consent of the General Partner, be a limited partnership formed by Developer. 10. Keystone - Keystone Services LLC, an Ohio limited liability company. 11. Manager - NRP Management LLC, an Ohio limited liability company. 12. Management Agreement - Property Management Agreement between the Partnership and Manager, the form of which is attached hereto as Exhibit „A„ 13. MOU - This Memorandum of Understanding between DPFC and NRP.. 14. NRI' - NRP Holdings LLC, an Ohio limited liability company. 15. NRPC - NRP Contractors LLC, an Ohio limited liability company. 16. Partnership - McKinney Denton Apartments, Ltd. to be formed Texas limited partnership, which will be the limited partnership formed for the purpose of owning the Project. 17. Partnership Agreement - The Amended and Restated Partnership Agreement to be entered into among the General Partaaa:r, Class B LP, Developer and Guarantor and the Investor LP, to be drafted by counsel for the Investor LP. 18. Permanent Loan - The loan identified in Section E.1. 19. Pre -Development Loan -The loan identified in Section P.2. 20. QAP - Qualified Allocation Plan for 2015 Tax Credits issued by TDHCA. 21. Subordinate Loan(s) - The loan(s) identified in Section E.1, if any, which will be subordinate to the Construction Loan and Permanent Loan, 22. Tax Credits - Low Income Tax Credits allocated by TDHCA. 23. TDHCA - Texas Department of Housing and Community Affairs. 0 l 1838,000003\4834-1344-9000.v7 B.amrnq of Coni ensation and Fees.. 1. DPFC shall receive thirty-five percent (35%) of the Developer Fee. (See Section L.1 hereof) 2. Developer shall receive sixty-five percent (65%) of the Developer Fee. (See Section L.1.) 3. NRPC shall receive a general contractor fee, overhead, profit and general conditions as set forth in Section F.6. 4. Manager shall receive a Management Fee as set forth in Section G.1. 5. Keystone shall receive the fee set forth in Section H. C. PAUrAhip StaucLure. 1. The Partnership will be formed by Developer for the purpose of owning the Project. 2. The General Partner will become the sole general partner and will be admitted to the Partnership at Closing. To the extent permitted by applicable law as amended between the date hereof and Closing, the Class B LP will have certain control oversight and approval rights. Any such rights must be agreed to by DPFC and may not, in the opinion of DPFC's counsel, result in the Special LP being deemed a General Partner for exercising its rights under the Partnership Agreement (as hereinafter defined). 3. The duties of the General Partner and the Class B LP shall be set forth in the Partnership Agreement. 4. Title to the land for the Project shall be taken in the name of DPFC, or a subsidiary of DPFC, and DPFC, or such subsidiary shall then enter into a long-term ground lease (the "Ground Lease") with the Partnership as tenant holding an interest in the improvements that constitute the Project. Funding for the acquisition of the land will come from the financing of the Project, and may be paid to DPFC in the form of an up -front Ground Lease payment. Upon termination of the Ground Lease, ownership of the improvements constituting the Project shall revert to DPFC. 011838.000003\4634-1344-9000.v7 D. Due Diljgrr 1. As a condition to DPFC's participation with the Project, DPFC requires NRP to provide all due diligence information on the Project and its proposed financing and operations. 2. A proforma budget of the Project is attached to this MOU as Exhibit "B" entitled "Proforma Development Budget". DPFC and NRP acknowledge that the proforma is subject to change. DPFC further acknowledges that NRP shall be responsible for maintaining and updating the proforma budget, which shall be subject to review and approval by DPFC. E. �Financln '. 1. On behalf of the Partnership, Developer has applied for a reservation of up to Twenty Three Million Nine Hundred Fifteen Thousand Dollars ($23,915,000) in private activity bonds (the "Bonds') to be issued by DPFC ("Issuer"). If the Partnership receives a reservation of Bonds, Developer shall be responsible for selecting the manner in which the Bonds will be sold to facilitate debt financing for the Project and negotiating the Bond financing terms on behalf of the Partnership, provided that DPFC shall have the right to review and approve the financing arrangements and the terms and conditions of any Bond or loan document. 2. The Partnership will require a taxable bridge loan in the approximate amount of Fourteen Million Five Hundred Eighty Three Thousand Seven Hundred Eighty Seven Dollars ($14,583,787). NRP shall identify financing sources for the taxable bridge loan on behalf of the Partnership and coordinate all interaction with the Iender. The General Partner shall have the right to review and approve the financing arrangements and the terms and conditions of the financing arrangements of the taxable bridge loan, such approval not to be unreasonably withheld, conditioned or delayed. A commitment for the taxable bridge loan shall be in place prior to Closing (as hereinafter defined). The General Partner shall timely review and comment upon any documents related to the taxable bridge loan and shall timely execute any and all such documentation, 3. On behalf of the Partnership, Developer has applied for approximately One M'lllio,ru Six hundred Twenty One Thousand One Hundred Seventy Six Dollars ($1,621,1.76) in Tax Credits from TDHCA. The parties anticipate that the Investor LP will provide Equity in return for the benefit of the Tax Credits. NRP shall negotiate equity financing for the Project on behalf of the Partnership and coordinate all interaction with the Investor LP. DPFC shall have the right to review and approve the financing arrangements of the Equity, such approval not to be unreasonably withheld, conditioned or delayed. The Equity financing documents are expected to include the Partnership Agreement. The General Partner shall timely review and comment upon any documents related to the Equity and shall timely execute any and all such documentation at Closing. 011838.000003\4834-1344-9000.0 4. Developer shall pay all costs and fees associated with applying for the Bonds, the Loan, and Tax Credits, which costs, along with all other pre -development costs incurred by Developer (to the extent included within the approved budget), shall be reimbursed at Closing from the proceeds of the Bonds and Equity. In the event this MOU is terminated or the transaction fails to close as contemplated herein, Developer shall be solely responsible for all costs described above and DPFC and its affiliates shall have no responsibility for payment or reimbursement of such costs. 5. Guarantor shall provide any guarantees that may be required hi conjunction with the Loan financing or the Equity referenced in paragraphs E.1 and E.2 above. Because NRP is providing any ongoing compliance or other guaranties, NRP and DPFC shall enter into a Master Agreement, the form of which is attached hereto as Exhibit "C providing for NRP's right to control certain decisions of the Partnership (including, but not limited to, those which could affect Guaranty liability) and for reimbursement of sums expensed by NRP as guarantor from sources available to the Partnership as provided in the Partnership Agreement. The Project will undergo audits from the Investor LP, provider of the Permanent Loan, provider of the Subordinate loan(s), and from the Partnership. The Partnership shall facilitate providing the necessary documents requested by the various parties to allow for the aforementioned third party audits. DPFC shall have reasonable access to records and financial reports for inspection and review. F, 2mign and Construction, 1. Developer shall provide comprehensive development services to the Partnership pursuant to a Development Agreement to be entered into by the Partnership and Developer. 2. NRP has provided DPFC a detailed pro forma budget for the Project, a current copy of which is attached hereto as Exdubit "B". 3. NRP shall be responsible for obtaining the services of design professionals for the design of the site plan and design of the project. DPFC will be provided copies of the final plans and specifications for the Project, including all construction contracts. DPFC will have the right to review, comment and approve such plans, and specifications. 4. In order to secure an exemption from state sales tax for the acquisition of building materials, DPFC shall serve as the general contractor and enter into a master subcontractor agreement for the construction of the Project with NRPC. 5. The sub -contractor of the project will be NRPC, an affiliate of NRP. NRP shall provide the Partnership a standard AIA form Lump Sum contract in an amount and otherwise on terms and conditions acceptable to all parties, each acting reasonably, s 011838.00000314834-1344-9000.0 the form of which is attached to this MOU at Exhibit "D". In no event shall the amount of the general contract be less than shown in the Project proforma attached hereto. The lump sum payable to NRPC shall be an expense of the Partnership and shall be inclusive of a typical 6-2-6 construction profit (i.e., 6% builder profit, 2% overhead and 6% general conditions) all of which will be drawn on a percent complete based on the percent of work complete. The fixed price amount of the contract will also include a contractor's contingency of 5% solely for the use of NRPC and to be drawn as needed by approved change order to complete the work as needed. Any unused contingency at the completion of the project will be used to pay deferred development fee; provided, however, that General Partner shall not unreasonably withhold its approval of any construction draw request involving release of contingency. 6. NRP shall be responsible for obtaining all governmental approvals and permits needed in order to construct and operate the Project. 7, NRPC shall guarantee to the Partnership, the Investor LP and any lender, delivery of the Project on time and within the approved budget (as it may be amended or revised from time to time with appropriate approvals). 8. The Project shall be constructed so as to comply with ADA and Section 504 requirements, as applicable under federal and state law. 9. The Partnership will not accept any financing source which requires a bond from the general contractor or master subcontractor without DPFC's and NRP's approval. 10. In no event will the Project require a contingency in excess of five percent (5%) of hard costs without the approval of NRPC. 11. NRP shall be responsible for the preparation of the construction loan draws for the Project. 12. Ramel Consulting ("Consultant") shall participate in the construction loan draw meetings and monitor the design and construction activities for the Project. G. D"Ianaerent ancb aerationw NRP Management, LLC or such other Developer designated affiliate shall serve as the property manager ("Manager") for the Project, which will be memorialized in a management agreement (the "Management Agreement"), the form of which is attached hereto as Exhibit "A". At any time that there are compliance guaranties executed by any affiliate of NRP, the General Partner shall (i) have consent in any removal of the Manager and (ii) shall have approval of any subsequent Manager. Any approval of any subsequent Manager while there are compliance guaranties executed by any affiliate of NRP shall be accomplished by NRP presenting up to three (3) acceptable property management firms to the General Partner for review and approval. The amount of the 6 01 1838.000003\4634-1344.9000.v7 Management Fee shall be four and 75/100 percent (4.7536) of effective collected gross income and paid as outlined in the Property Management Agreement. Because the Project consists of new construction, prior to the receipt of a Certificate of Occupancy for the first residential building, the Manager will be compensated by monthly fees equal to Twenty Dollars ($20) per unit commencing with the first complete month after the first community employee commences to work at the Project, provided such date is typical for when an employee would commence working at similar projects. The parties understand that in no event shall the first community employee commence work any earlier than three to four months prior to the receipt of a Certificate of Occupancy. H. Accounting. Subject to termination for reasonable cause, Keystone, an affiliate of NRP, shall provide accounting services (including but not limited to : (i) bookkeeping, monitoring reporting requirements and processing construction loan draws and change orders, and (ii) preparation of and/or coordinating preparation of cost certification, carryover, 10% test, tax returns and the Partnership's audit and audited financial statements for filing or certification by the Partnership's outside accountants,) to the Project until the later of: (i) conversion to the Permanent Loan; (ii) receipt of the final installment of the Equity Financing; and (iii) receipt of Form 8609. Keystone shall receive a fee from the Partnership of Two Hundred dollars ($200) per,unit per year for such services, but in no event more than Twenty Thousand Dollars ($20,000) annually. Supportive Services, NRP will identify an appropriate provider of supportive services. The scope of such supportive services shall be consistent with the committed to services in the application for the Tax Credits. The fee for such supportive services will be as shown in the final proforma. Pursuant to the approved budget, DPFC shall monitor and approve the provision of such supportive services during the Tax Credit compliance period. Developer shall be responsible for providing any evidence of supportive services which may be required for the Tax Credit application. J.rrrtmky— l WROrt. DPFC and NRP shall be jointly responsible for interfacing with the local governmental officials in connection with support for the Project. The parties will consult with each other and coordinate the response to any media inquiries and/or public opposition to the Project that may arise. K. Tax ExeLnp The ownership structure contemplated herein is expected to generate an ad valorem tax exemption for the Project. DPFC, on behalf of the Partnership, shall work with the applicable appraisal district to obtain confirmation of the availability of such exemption. 01 1838.00000314834-1344-9000.0 L. Fees and -!! est 1. As consideration for the services of the Developer in connection with the construction and development of the Project, Partnership shall in accordance with Partnership Agreement, pay a fee (the "Developer Fee") of up to Five Million Twenty Thousand Dollars ($5,020,000) or such maximum amount as may be permitted by all applicable laws, rules and regulations including those of TDHCA and lender, which Developer Fee shall include any Developer's overhead charged to the Project. NRP will receive 65% of the Developer Fee and DPFC will receive 35% of the Developer Fee. The obligations of the Partnership to pay the Developer Fee shall be non- recourse to the Partners of the Partnership but recourse to the assets of the Partnership. 2. The General Partner may be entitled to receive certain fees or priority distributions for its services in such capacity as set forth in the Partnership Agreement. Such amounts shall be payable from the Partnership's net cash flow, as provided in the Partnership Agreement. 3. After payment of the Developer Fee, the General Partner's fee, if any, and any other priority net cash flow payments established in the Partnership Agreement, the General Partner and the Class B LP shall split any remaining net cash flow distribution, 50% to the Class B LP and 50% to General Partner. 4. Neither party shall enter into any contractual relationship or agreement relating to the Project that would cause either financial or legal liability to the other, without the other party's prior written consent. M. Long Term Ownership and lUght of first Refusal Designation. At the end of the 15 -year Tax Credit compliance period, the General Partner, DPFC, or DPFC's designated affiliate shall have a right of first refusal to acquire the Project for a price equal to the outstanding indebtedness secured by the Project plus any exit taxes. In addition, the General Partner, or other DPFC affiliate shall have an option to acquire the Project at any time as necessary to obtain the required property tax exception on terms acceptable to the Equity and NRP. N. NRI Expenses. 1. To the extent that NRP has advanced sums for the benefit of the Project which have not been reimbursed, DPFC may not take any action regarding the ownership, development, construction, management or finances of the Project (whether prior to or after Closing) without NRP's prior consent. NRP shall be entitled to priority reimbursement for all bona -fide reasonable out-of-pocket pre -development costs associated with the development of the Project (including any interest paid by NRP) upon the earlier of (i) Closing of the Construction Loan and Equity and (ii) the Project 01 183 8,00000314834-1344.9000.v7 receiving any pre -development loan or equity advance. 2. NRP shall have the right to identify Pre -Development Loan financing to the Partnership for reimbursement of Project expenses incurred by NRP, to be guaranteed by NRP subject to DPFC's review and approval. If NRP identifies and DPFC approves such a Pre -Development Loan, NRP shall execute loan documents evidencing the Pre -Development Loan on behalf of the Partnership without creating any liability to DPFC or its affiliates. The fees and interest of such Pre -Development Loan shall be expenses of the Partnership. O. PPF Ex es ,, NRP acknowledges that it is the parties' intent that DPFC bear no out of pocket expenses in connection with the Project, provided that such reasonable expenses shall be considered Project expenses and shall be shown in the Development Budget. DPFC shall provide the amount of the fee for the Consultant to NRP for inclusion in the Proforma Development Budget. DPFC shall have reasonable access to records and financial reports for inspection and review, P. Miscellaneous, 1. This MOU reflects the entire understanding between the parties and may only be amended by DPFC or NRP in writing, signed by both parties. This MOU is not merely an "agreement to agree". 2. Each party hereto is prohibited from assigning any of its interests, benefits or responsibilities hereunder to any third party or related third party, without the prior written consent of the other party, such consent not to be unreasonably withheld, conditioned or delayed. 3. The parties agree to execute such documents and do such things as may be necessary or appropriate to facilitate the development of the Project and the consummation of their agreement herein. 4. This MOU may be executed in several counterparts, each of which shall be deemed to be an original copy and all of which together shall constitute one agreement binding on all parties hereto, notwithstanding that all the parties shall not have signed the same counterpart. 5. THIS MOU SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF TEXAS, EXCLUSIVE OF CONFLICT OF LAWS PRINCIPLES. 6. In case any one or more of the provisions contained in this MOU for any reason are held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability will not affect any other provision hereof, and this MOU 9 0l 183 8,000003\4834-1344-9000.v7 will be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 7. The parties hereto submit exclusively to the jurisdiction of the state and federal courts of Denton County, Texas, and venue for any cause of action arising hereunder shall he exclusively in the state and federal courts of Denton County, Texas. 8. Should any party employ an attorney or attorneys to enforce any of the provisions hereof, to protect its interest in any manner arising under this MOU, or to recover damages for the breach of this MOU, the non -prevailing party in any action pursued in courts of competent jurisdiction (the finality of which is not legally contested) agrees to pay to the prevailing party all reasonable costs, damages and expenses, including specifically, but without implied limitation, attorneys' fees, expended or incurred by the prevailing party in connection therewith. 9. The subject headings contained in this MOU are for reference purposes only and do not affect in any way the meaning or interpretation hereof. 10. This MOU shall continue until terminated upon the occurrence of one of the following conditions; (i) DPFC and NRP sign a mutual consent to terminate this Agreement, (ii) The transactions contemplated hereby are not closed by July 31, 2016; (iii) The terms of the Loan and Equity financing for the Project are unacceptable to DPFC, in its sole discretion, and DPFC provides Developer notice of such fact and a 30 -day opportunity to provide financing terms that are acceptable to DPFC and Developer, but Developer does not do so; (iv) DPFC's Board of Directors does not approve the Project; (v) Developer fails to deliver Checklist items as required herein; (vi) Either party breaches its obligations under tivs MOU, the non- binding party provides the breaching party notice of such fact and a 15 -day opportunity to cure, and the breaching party fails to do so; or (vii) Either party files for bankruptcy protection, makes an assignment for the benefit of creditors, has a receiver appointed as to its assets or generally becomes insolvent. Upon termination of this MOU for DPFC's breach hereof, or DPFC's violation of item (vii) above, DPFC shall reimburse NRP for all of its bonafide reasonable out of pocket pre development costs associated with development of the Project, with interest as indicated above. Upon termination of this MOU for any other reason, neither party shall have any ongoing obligation to the other with respect to this MOU and the Project. 10 011838.000003\4834-1344-9000.v7 13. In addition, the provisions of this MOU with respect to the Project, other than those provisions which expressly survive the termination hereof, will be terminated and suspended when the General Partner is admitted to the Partnership Agreement and DPFC and NRP and their affiliates, as applicable, enter into definitive agreements with respect to the governance of the Partnership and the development, construction, financing, and operation of the Project as contemplated herein. If this MOU is terminated for any reason and neither DPFC nor any of its affiliates (i) acts as General Partner in regard to the Project or (ii) acquires any ownership interest in the Project, NRP shall retain all rights to control the Project, including the right to identify any alternate general partners, guarantors, and developers and to re -apply for an allocation of tax credits for the Project. DPFC agrees, upon termination of this MOU, to execute any document reasonably requested by NRP to give effect to the provisions of this paragraph. The provisions of this paragraph shall survive termination of this MOU. 14. The parties acknowledge that, the General Partner, DPFC and its affiliates will be represented in this transaction by Coats Rose Yale Ryman & Lee, PC ("General Partner Counsel"). All costs of General Partner Counsel and Consultant will be considered Costs hereunder and paid as provided herein. The Partnership, Developer, the Special LP, and their affiliates will be represented by separate counsel whose fees will also be an expense of the Partnership reflected in the Proforma Development Budget and will not be entitled to rely on General Partner Counsel for representation in this matter, [REMAINDER OF PAGE INTENTIONALLY BLANK] 411838.00000314834-1344-9000.0 EXECUTED to be effective as of the date above shown. DENTON PUBLIC F CILFY OIC IAC R TO By /L Name:.�' Title: r NRP FIi'Lll��1� aw B Narlte� I�'�4r4�e1 l°i. l4!I���lcsox° Title: AutIj('qLrzs1,d Tie re Aig.� i e 13 011838.00000344834-1344-9000,v7 EXHIBIT "A" FORM OF MANAGEMENT AGREEMENT (TO BE ATTACHED) !3 011838.000003W834 -1344.9000.v7 EXHIBIT "B" PROFORMA DEVELOPMENT BUDGET (TO BE ATTACHED) 14 011838,000003\4834-1344-9000.v 7 EXHIBIT "C" FORM OF MASTER AGREEMENT (TO BE ATTACHED) 011838.00000314834-1344.9000.x7 EXHIBIT "D" PARTNERSHIP STANDARD AIA FORM STIPULATED SUBCONTRACT AND MASTER SUBCONTRACT (TO BE ATTACHED) 16 011838.00000314834-1344.9000,v7 EXHIBIT 3 THE NRP GROUP LLC Denton Apartments, Denton, TX Scenario: 4% L1HTC Sources & Uses Sources of Funds Construction: 6.00% interest only Permanent: 4.30% for 35 Years Loan #2: BofA Bridge Loan 4.00% for 30 Years Loan #3: 0.00% for 30 Years Tax Credit Equity - Federal Tax Credit Equity - State Income during Construction Period Soft Loan #1: Local Funds 1.00% for 30 years Soft Loan #2: Source 1.00% for 30 years Soft Loan #3: Source 0.00% for 30 years GIC Interest Deferred Development Fee Uses of Funds Acquisition Costs Construction Costs Architect/Engineering Permits & Fees Title & Survey Construction Period Expenses Financing Costs Professional Services Tax Credit Fees Development Fee Reserves & Other Surplus (Deficit) Cash Source Paid Developer Fees 15 -Year Cash Flow after 1 st Mortgage DS Deferred Developer/GC Fee 15 -Year Cash Flow available for Deferred Developer Fe( Sources & Uses Construction Permanent $ 27,000,000 $ 27,000,000 13,500,000 - 2,553,584 17,807,419 2,760,591 43,053,584 47,568,010 2,500,000 2,500,000 28,181,918 28,181,918 1,282,500 1,282,500 1,755,000 1,755,000 315,000 315,000 545,000 545,000 5,237,650 5,247,650 461,500 516,500 92,860 118,620 350,000 5,234,000 913,000 1,871,822 41,634,428 47,568,010 $ 1,419.156 $ $ 350,000 $ 2,473,409 6,795,396 6,795,396 - 2,760,591 6,633,404 63.34% depreciable basis plus land 15.0% of Eligible Basis Prevailing Wage Required: No Sales Tax Exemption: Yes Construction Start Date: 4115/2016'.. 47.3% Club House Delivery Date: 51112017 '.. Construction Completion Date: 3/112018 52.7% Stabilization/Perm Conversion: 11/1/2018 .......... m. _ _........... _..... The analysis contained 11—no prAn,rery drtrt d h.o.d on Into—ti- gathered from sourcesthat have not been indepence 9y ve,iried. This analyse not a co— rent by The NRP Group, LLC to pr®vide any ..p "'ft fiaan ' d'eculte prsp . r� fnanwg dc;ar..ti- This analysis ie confidentlai and cannot bu n leased to any other party vsthnat the wide, con.errt of The NRP Gnc,p, LLC. The assumpit ons used herein are subject to change vM.0 dd-. Denton Apartments 4%.Current 1 Project Statistics: Units 322 ''..... 5th Year Cash -Flow $ 338,814 Construction CostJUnit $ 83,844 '. GC/Unit $ 87,521 Source Paid Dev Fees 2,473,408 '.. Market Rate 0% 63.34% depreciable basis plus land 15.0% of Eligible Basis Prevailing Wage Required: No Sales Tax Exemption: Yes Construction Start Date: 4115/2016'.. 47.3% Club House Delivery Date: 51112017 '.. Construction Completion Date: 3/112018 52.7% Stabilization/Perm Conversion: 11/1/2018 .......... m. _ _........... _..... The analysis contained 11—no prAn,rery drtrt d h.o.d on Into—ti- gathered from sourcesthat have not been indepence 9y ve,iried. This analyse not a co— rent by The NRP Group, LLC to pr®vide any ..p "'ft fiaan ' d'eculte prsp . r� fnanwg dc;ar..ti- This analysis ie confidentlai and cannot bu n leased to any other party vsthnat the wide, con.errt of The NRP Gnc,p, LLC. The assumpit ons used herein are subject to change vM.0 dd-. Denton Apartments 4%.Current 1 Mzm� THE NRP GROUP LLC Dootor, Apartments, Denton, TX Scenario: 4% 1-11fTC 4M 80.016 1:50 PM Total Eligible Basis Good Costs Bad Costs Depreciable Construction Develoornent Costs Arqul.lff.. Cost. Land 2,500,0(J0 2,SM,000 5 $ 2,5N1,(XX.1 Building Acquisition Offsite C-Mr..f- Construction Costs Contingency (E00%) 1„'184,114 1,174,183 1,184,114 1,174,1FG 1,'164,1'l4 Site Work 4,480, 794 4,480,794 4,480,794 4,480,7,94 4,480,794 New C-st-5ian 19,0042,8-15 19,002,875 13,369,206 5633,669 19,0(12,875 11,1,K1'2,875 0-ifion, - Offsite Construed- 19S,615 198,615 198,615 Land -prig Retail So.- (We- Who. S-) General Rquirensents, (6.GD%) 1,420,937 1,409,020 1,420,937 1,409,010 1,420,967 C.ftwtor 0oartteani (2.00%) 413,W5 469.673 473,646 46lq,57,, 4T,3,(A6 Contractor Profft (6,001%) 1,420"MY 1,409,020 1,420,937 1,409070 f,42.0,937 Architect/Engineering Architect Fee - Design 6100,000 800,000 800,000 - M'O06 WOOD Architect Fee -Supervision, 87,15,00 67,500 87,500 67,5470 V,500 Engineer "325,000 325,000 325,000 al's,000 325'an Sole Testing 70,000 70,00D 70,000 70,M)G 70,C)EXX P. -H. & Fees - Water & S -r Tap F- 1'100'000 1,300,000 1,300,000 1,300,000 1,300,000 pe"It. 455,ff30 455,000 455,000 455,000 455,000 Park Dadicatbrin)-alaptnent Fee - - The & Sa-y S-eynivam,is 10(),000 100,000 100,000 100'000 100'000 TRIWIR-ordinglCi..ing 215,000 215,000 215,000 215,000 295,000 Construction Period Ep-- - GC Oversight Fee - DPFC 270,000 - 270,000 - 270,000 Construction, insurance 250,000 250,000 250,600 - 250,000 250,ODO Property Tanen 25,000 25,000 25,0700 25,000 25,000 R -mg Cost. B -d Costs FirstS.W-st C..pry To- Bond R -L- Board 21,250 21,250 21,250 Texas Department of Aging 27,000 27,000 27,000 T-tes, 13,500 13,500 13,500 Trustee Counsel 9,500 9,SW 9,500 Bead Priming le..r Fee - Issuer Counsel 202,500 202,500 20225W AG Fee 9,500 9,500 q,:Axl Cost. Rose - DHA Counsel 145,000 145,000 N)a mentgrign, Cost. Constn,idion Manager Fee 270,000 270,000 VoXXX3 Con.trurfl- M. -ger DD 10,000 10,000 10'[ml Construction Manager Legal 55,000 55,000 55'rm C.roft-flori LC Aqde of Rat. mi- Bond Costs - Other R .. dsg Duch, Bridge Leon Origination L15,000 100,161 135,000 IN),'f61 135,000 Bridge Loan Legal 25,4W 18,540 25,000 18,549 2e, 000 Letter of Credit 18,00.10 - 18,900 -18'�4m Other -- R...4 C...1fing 45,1300 46,000 45,000 Denton Apartments 4%.CUrTent 2 4M 80.016 1:50 PM THE NRP GROUP LLC Deaver; Apmn.-ft, Denton, 7X Scen— 4% LJHTC JLL - Cecil Faith Return C.pitalval inea-1, Seek Loan JLL - Ongurpion Fee AL - DO & C.r,.tLdi.n M -R. Freddie M.o - Appr—fi-, Standby, Deposit JLL - Legal Construction D— Review Fee Capitated interest O`h- Per. L— - Ctirv—bu Fee ME Develop rnrt NRP Line of Credd Reimubursomerd P&P Bond Set-up Fees Rr.resiu—1 $."to - Property Appraisal Market Study Ernworm.M.1 Report / Sails Accounting/Cost Certification Legal Tax Credit Fees TC Monitoring Fee TC Application & Reservation Fee App Fee. Development Fee Ream" & Other Orgarintional (a -g,, Partnershp) pent-up Reserve Operating Reserve FFE Sell CmA Contingency Martating R...— Construction ...— Construction Cost Summary GC Contraut Am=A (not including carding—y) GO Contract Amount per Unit Total Construction Co9l, per Sq Ft Total Cost per Unit T.t.1 Cost (tot.1 I.. 1.0, demo & per Sul Ft D.-I.p..d Costs wa,cm 72,000 40,0M 40,0M 'IDSM 40,OW 411,000 2,615'aw 1,084,RM 850'170 1,984,5M 2'n-"wrr 45,000 15,000 45,000 16LX)0 115,000 15,000 25'r.ox) 25,00() 25,000 6,500 firm 6'.500 6,5fk 6,510 'L"Qw. 35000 3's'000 35,000 20,M) xpo 20,000 20:0M 65,000 F5'000 F15,000 55,000 400,0f.g.1 'W.'Ooc 400,000 300,000 400,000 25, 7M 25,76 0 - 92r850 92,WO 92.050 5,234,(M 5,2.34,WO 5,234,000 517..34,000l 351)'(00 30'w) 30,00r.1 30'(= 3}2,260 3f2,250 MIZA) 958,32.2. 95S822 aw'(M 300LW 300,000 3M,(M ) 100'100 2.5'000 100,000 - 25,000 IGO," 120, 750 120,750 120,7..>0 Trmplo 'tox" $ 27,000,000 20A8.070 40,128,276 41AM,42.8 26,997,804 83A44 81.82. 147,727 127,27 Denbo Apartments 4%.Curnent 3 4M 812016 1:50 PM THE NRP GROUP LLC Denton Apantraents, Denton, TX Sclurad.. 4% LJKFC T- Credit Eg.ity Federal Calculated Projected Annual Credit Eligible Development Costs: $ 40,128.276 Percentage Affordable: i0o O..rff,.d Basis: — — — — — —00% 40, 128,276 High Cost Area AdjustmenhNA): Month Total Adjusted Qualified Basis: 52,166,758 Applicable Federal Rate: 3.18% Projected Annual Construction Credit: �l F5A 903 Acquisition Basis - Applicable Federal Rate: 3.18%. Projected Annual Acquisition Credit: Oct -17 Max Credit Amount 1,649,000 Investor Ownership 99.99% Projected Annual Credit to ILP: N-18 Projected LP Equity 14,808,650 Projected Annual Credit to IM $ 1,648,835 # of years available: 10 Total Credit to ILP, 16,488,351 Antlap.t.el pfl- per credit $1: 1.080 Projected ILP Equity Cowntherfi— $ 17,807.419 Use $ 17.907,419 Tax Credit Equity Installments: Federal Month Completion Amount % D -amp., Fee Payment I Apr -16 0.00% 560,934 3.2% 350,000 6,7% Payment 2 Oct -17 81.05% 1,992,650 1111% - 0.0% Payment 3 N-18 100.00% 14,808,650 832% 1,678,224 32.1% Payment41 Noy -18 I00.00% 445,185 2-5% 445,185 85% Payments Nov -18 100.00% - 0.0% - (I rYY Payment 6 Nov -18 100A0% 0.0% 0.01/ Payment 7 N-18 100.00% - 0-0% 0.0% 17,807,419 100.0% 2,473,409 Paid 2,760,591 Deferred Availability of Tax Credits: 2016 0% - 2017 16% 268,560 2018 88% ,442,7 1 1,442,731 2019 100% 1,648,835 Denton Apartments 4%.Cument 4 Unit Summary THE NRP GROUP LLC Denton Apargrnents, Denlon, IX Scenario: 4% LIffrC Unit Mix and Rent Schedule $ 662 $ 23,170 0.93 832 113,994 0.82 832 6,656 0.68 946 116,358 0.83 1,035 12,420 Sq. Ft. per Extended Sq. Developer Utility Developer Net Max Net 673 Unit Type 0.66 Affordability Descdpffon units unit Ft. Gross Rent Allowance Rent 0HTC 3,105 Bedrooms.EM11F, Unit 1 1 1 60% 35 712 24,920 753 $ 91 $ 662 $ 701 Unit 2 2 2 60% 137 1,015 139,055 951 119 832 832 Unita 2 2 60% a 1,218 9,744 951 119 832 832 Unit 4 3 2 60% 123 1,139 140,097 1,098 152 946 946 Unit 5 4 2 60% 12 1,584 19,008 1,225 190 1035 1,035 Unit 6 1 1 50% 1 712 712 660 91 569 569 Unit 7 2 2 50% 1 1,015 1,015 792 119 673 673 Unita 3 2 50% 1 1,139 1,139 915 152 763 763 Unit 9 4 2 50% 1 1,580 1,580 1,021 190 831 831 Unit 10 4 2 60% 3 1,580 4,740 1,225 190 1.035 1,035 322 342,010 Summary Data Denton Apartments 4%.Cu"nt 5 4118/2016 1:50 PM Final Net Rent Extended Rent Rent Per Sq. Ft. $ 662 $ 23,170 0.93 832 113,994 0.82 832 6,656 0.68 946 116,358 0.83 1,035 12,420 0.65 569 569 0.80 673 673 0.66 763 763 0.67 831 831 0.53 1,035 3,105 0.66 Monthly CPR A1,14 GPR I THE NRP GROUP LLC Denton Apartments, Denton, TX Scenario: 4% LIHTC Inflation Revenue Expense Percent of Units Available during Year Portion of Year Operating Income Statement Revenue Gross Potential Rent Vacancy Loss Delinquency Loss Total Rental Income Other Income Total Revenue Operating Expenses Management Fees Payroll Administrative Marketing Cleaning & Decorating Utilities Contract Services Repairs & Maintenance Supportive Services & Coordination Compliance Monitoring / Trustee Fee Insurance Real Estate Taxes / Franchise Tax Total Operating Expense Replacement Reserves Total Expenses and Reserves % of Revenue Net Operating Income Debt Service Net Cash Flow Statistics Debt Coverage Ratio 4 Months Oper. Exp. And Debt Srvc. Denton Apartments 4%.Current 6 4/18/2016 1:50 PM Annual % Per Unit 9.00 1.00 100.0% 900% $ 3,342,348 100.0% $ 10,380 (253,574) -7.6% (787) - 0.0% 3,088,774 92.4% 9,592 38,640 1.2% 120 3,127,414 93.6% 9,712 148,552 4.75% $ 461 402,500 12.9% 1,250 128,800 4.1% 400 32,200 1.0% 100 16,100 0.5% 50 136,850 4.4% 425 48,300 1.5% 150 193,200 6.2% 600 32,200 1.0% 100 17,380 0.6% 54 88,550 2.8% 275 17,983 0.6% 56 1,262,615 40.4% 3,921 80,500 2.6% 250 1,343,115 42.9% 4,171 42.9% 1,784,299 57.1% 5,541 1,493,469 47.8% 4,638 $ 290,830 9.3% 903 9.3% 1.195 $ 945,528 Det W U.l".$:; and —s THE NRPGROUP LLC Demnn Ap Uamon, T# 1% UHTC D-,,, Ap.,t,,,— 4�/, C—M 64yr i6 M.Y.16 1-1 6 X,11, ., 16 N-1 5 De— Ix,, -17 F-17 M-7 A,,P .., 11 J,-17 1A 17 Aug -17 1,2% 10]1 1 i.4% 24sll 31[.01 356% 19.4% 43.1% 469 SOY% 5% 5111% 1111% 65.9% U,7% 7i -i% M..Aw f a,.m 2 U-0, I M..,*, 4 M -1p, S U—h 6 ft.1h I W—M A M-01 N tlNnrc1611P5 Manfb 11 U -.h 12 4M.M 13 W.1h M M -lb tl M..h 1L DMaiiad Sources artd Uses 6 7 8 1,,Ond —,l L -d $ 2,02,117 1 ;l 7096,1!19' 1 M, 9 "So'M 1150,950 667691 P1 "I'lY 0 117,601 00 1 .7,016'97,691 64'7,6,91 1' V,.i I 17,130 17,130 7,1. 17,116 17.130 IT.M 1'('1361 171A 17.— 7"., l.,W.1 76,— . . . .....Dmnr .. s"Fdl "u, 1519 .......... 53P., 5,521 (1,43(10 .424 1834,.1 11520,501 1.52.6.50 1vl5 SG9 1 IMM, 6ntY,T47 6161,142 619,342 -1217 1,M,V7 6((321 r 603,217 63,217 093,117 .d5E9;Om 2"1 R, " N, N 560 550,21i. 550.2".5 5062'16 Ag, -51 51�M�ll 5.9$516 N, .1 s t 104 M 5 1 �MM i I -, "'T I YET , v , B,mm, MI.— $;5,`12,6'72 13,705,rM $ 0 $ "'W— I Mllfll9l I ll,lr(1l'7 'I IAW— IA62117 $ 9,77%— NO,— .,m W6 111.365,075 011 111,71g,1110 10,089,137 %4S%?.5,l OMMU 8,145.745 74n2 Jl 7 6,171,119IX . ", M 1.+7(r . �l 1 991647 11 2 '.11 -Wl P"�7�217 0-217 :11 aw.� B.W.- 'M ............. W lin A ONM V 1 1-2 51-1 $ 1 35M. il Ml 0, 1 "1 -1.21766:3217 1 1 1 5,412005 1,11D .7 Oic Income Ad,hfi— S,111,1 E,A­ B.k,- . . . ........... .k_........... 1u " 0% IN, B.gm.mg B.h— I s Hard . b.Nh.. Uebt $ 5 1,567,424. 1 1,815"641 i 2.3K534 I 2.071 ,617 1 3,411101 1 3"516.7a4 4.455A 8 4935228 5 1",454,688 5 5,811.949 5 6,17543M $ F, 423,54 1 7.473,780 1 9159,6'[g 1 0357,550 .;.196,606 y67,124 - ----- 1,l6,YA 11 Z,154,5 2&1661: 1417TOI 4WI6E8 4 PJ5 40 5,41 Aab 5 5.4;25 514 -4';1,79. 0rl590"' tlsbs 9,6117,124 9E9,59Y —pn 2na ......'2 2 ,,,N,t" A,2 W ... %2-35 110521: 599,515 :;95,515 Sg15A4 Ending Balance 1 �7 124 2,X�,5a4 2.57��617 W 1(�l IGM M $ 4,b 3N, 4 SA1w 1W fi,3T3.16, .— i 5154 fDt5 U -51 ,11O 5 sI'll son sar€rtrdinare nett S.W.mq B.I.- -bl-d I S Gash d.mg C ... em.N., ftnod Beqmi.g MI.— F s s Mdb- -W . ......... . . ....... . . . Gmnd T..l I 2"W'M 2410'12,1" 111J5 5,199 11,571:116 15,02,05 11,4269JI4 $ tZl?-rl"I T M15617'31 11,126419 113.491070 9,12%1,41 P, 13 Q4 $ Aft-,, 05& 51111193 $10 p11 $4104: Y14 M.: 471, ,11506 1— 50 1L. IMUM L LI,711 S,,bl-� .�u5 1� 7U Il �221M 1� .71 770 11 �452r� 1� 11 .. 1. 11 1,01,— 11 0421 2 I'm . ol d 4 a,; IOZ6 Rl 7 ELM 7E.—,— .4 � 6 $ 20 O"r 1 9 1 5C 6S05"4 . ...... $ le -9,49 S $,,., 15457. 515 � D45 54 1 315984114 fA27 A1l 411 1.1761 s '12 w IN 1' � -70 1 7% M 1 �V � 1101205.#S4 I t0,70 S I D 06 M � Ill 45) 1 40"3051, 1 0,129621 5 4045� B445424 1,Ml N� 9 7.751_.1 5 777, '2"r -- 7 D-,,, Ap.,t,,,— 4�/, C—M 0-9�� S --and U.. 411r.016 1:59Y'lq THE HRP GROUP LLC —c P�. S— 9mp-il (51 -it W 7 — 11 ..- Feb -16 M.— Apr -10 May -18 ". 1. J.4 1. A.948 .e,l 8 ..l. 173% kh PP BY,tI -10h ve 5401, Uwh 1. $0.0% M..h 20 924% U..h., 9Ii2l M..Ih 22 1000% M..th 23 IWO% U -1h . W..V% U -1i, M 906.0% 100.0% Morph n M�a— 100,0% W,m 1080% 1(11101 Month 28 -nIft 30 17 1 11 N 21 22 13 14 PS N 27 28 29 30 m.iw 05217 iD-W —l'-, Ego aQ ),303 .217 s 26,'7"3.598 -977-77 U— G.d Cas -7 TW 501,595 501,091 5(17,6" 607,691 607,591 b—I MI.., M— MM m,— 1U 505 m,wr, ll,M —1 - '�21 ° 531 0 55?"�: 5-=,V 7M,5N �17,w —17 3481535M1 s 6 535 ti- ftd U.- 71, d5tl:53h 1 595523 596,Pi35 1, 590 535 15 IM K.10 5-1 M.. Dnbl —c P�. S— rt Addatiena .. . . ........ .. .. . ..... U.. fM IL7_L.1.217 05217 iD-W —l'-, Ego aQ ),303 .217 s 26,'7"3.598 -977-77 -7 "am 7M,5N �17,w 3481535M1 s 6 535 ti- 7M.M 8 11 a,. i I K.10 5-1 M.. Dnbl BeM—i gBA.,.. M—,— 511,r -,,Vii 10,553,167 $ 1(?,553,157 $ 10,95d.648 S, 11,553,183 3 12 DMW 6 12,OM,— 12.1:1.5.&44 12,135 w s 12,M�S� ddNona W -A 10553:1 Y' 10551,10 'D513,151 1Q,.5S3,55t 12 DHO 544 V,—,— I., 935,844 {2:Y 35,&44 12,135,944 121135,W 11.,—j14T .,535 10,151115' 10'503'157 , 10.934.546 % il,nmn 5 12,460.944 S 52,050,644 S,w a. rt. PAdi0or7.s . ...... . ..... Bh— 5 $ —7-7 $ mm.. Enik,g B,d — $ $ Grand T-1 $ 6,396,771 $ 5,713,554 6A24.451 $ 5.142,638 $ 3,860,945 2,291,45/ $ 1 N7,124 1 1A1,1,1N 107.124 1,567,121 S 1AIM124 -15 0,59 - 5 - 01 01 590'5,5 55 I I:T�Ill . ,ID6104 � 42� 4�1 5 1.37 �519,1 9 2 N� 27 1 �67 �N - 1 74, t'W,— t�llv — I — 12� 1,H7 12� 'L— 'N I I il , Ri 5 I M 1 2f. 1 M 1'3®1 ,M I �R W, �%Iyoa =a, :1 1 -1 11.7121 5 4 —21 1 v®.7 IN $ w,ft7 12tl S 1.167 IN Lease Up THE NRR GROUP LL Denton Apa,& .. 9., Dept.., TX Scenario: 4% LINTC Corn4Cvcfion ComoMon & Leaslna Schedule No [-1212 U is C-.t.,W- Uuft Pereenbge or Leap Ari ldbf.AlocM or Unite in Full Ea Pement M WbLease-upum C----Lease-upft p U P--f W.W, Leese -up Full .M, . 1 9.11dg. Credift Deli -d 00.i.g Apr -16 1 0.0% may'lO 5 2 10.3% 00% Jun -16 6 0.0% 3 17.4% 0.0% jOklu 7 0.0% 4 7.45% • 0.6% Aug -16 8 OM 31 A% 0.0% Sep..16 0.0% 35.6% 0.0% (N-.06 1 0 0.0% i 7 39.3% 0.0% N-16 11 0.0% 8 43.1% 0.0% D-16 12 0,0% 9 489% 0,0% J-17 13 0.0% 50.7% 0.0% Fen -1'7 14 0.0% 11 54.5% 0.0% M-17 is 0.0% 12 59.3% 0.0% Apr -1'7 16 ok% 62.1 % 0.0% M.y-17 17 0.0% 4 � 65.9% 23 7.1% J-17 23 18 23 0.0% 5 097% 46 14.3% J.k17 46 1,M) 19 29 46 0.0% 6 � 735% 69 21A% Aug -17 69 2, 20 59 69 0,0% 7'i7.3% 92 28.6% Sep -17 92 3.W 21 88 92 0.0% 16 810% 111 357% 01107 115 3m 22 88 115 0.0% 9 84�6-1. 13942.9% N-17 138 4,00 23 138 0.0% 20 ea.6% 161 50.0% D..17 161 6.00 24 117 46 146 16.3% 21 92.,4% 184 571% J-18 184 B -CA 25 176 184 O.m 2.2. 96.2% 207 64.3% Feb -18 2 7 7.00 26 20 207 0.0l. 23 1 100.0% 230 714% Mar -18 230 TOG 27 2U5 230 0.0 2.4 0 .0% 100.0% 253 78.6% Apr -18 253 6, 28 234 253 00% 2.5 100.0% 0 .0% 276 85.79E M.y,19 2769.W 29 263 276 0.0 26 000% 100.0% 299 929% .1-18 299 10.00 30 2932990.0% 2.7 100� 0% 32.2 100.0% j.kI8 1 31 322 322 0.0% 28 1000% 322 IMO% Aug -18 322 1, DO 32 322 322 00% 2.9 100.0% 32.2. 100.0% Sap -18 322 11W 33 322 322 0.0% 30 1000% 322 100.0% Qct-t8 322 1 34 322 322 00% 31 1000% M Mo% N- 18 322 35 322 322 0,0% 32 1000% 32.2 100.0% D-18 32.2 1100 36 322 322 87.5% 33 100.6% 322 10.0% J- 19 3' 11 . 00 37 322 322 00% 1 34 100.0% w ov, 322 I00.0% Feb 19 322 1100 3'322 322 0,0% 35 100.0% 322 100,0% M-19 322 MOO M 322 322 00% 38 100.0% 322 100.0% Apr -19 322 11.00 40 322 322 0.0% No [-1212 U is THE NRP GROUP LLC Denton Apartments Scenario: 4% LIHTC Closing Construction Lease -up Year Year 4 Year 5 Year Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13 Year 14 Year 15 Year 16 Year 17 Project Total Denton Housing Authority Cash Cash Distribution Developer Fee (+ Available for (Partnership Mgmt Interest Def. Fee Fee 350,000 - De Fee 2,123,409 - 65% 234,996 234,996 35% 306,442 306,442 227,500 329,457 329,457 122,500 352,541 352,541 1,380,216 375,685 375,685 743,193 398,877 398,877 152,747 422,107 422,107 82,248 340,485 340,485 94,389 - - 421,766 107,255 442,706 - - 463,632 - 115,310 484,532 - 229,152 505,390 - 526,192 244,195 546,926 5,234,000 2,760,591 3,485,532 Denton Apartments 4%.Current Cash Flow 4/18/2016 1:50 PM NRP GrouE Denton Housing Authority Distributed Distributed Developer Fee Cash Flow Total De Fee Cash Flow Total 65% 50% 35% 50% 227,500 227,500 122,500 122,500 1,380,216 1,380,216 743,193 743,193 152,747 - 152,747 82,248 82,248 199,188 199,188 107,255 107,255 214,147 214,147 115,310 115,310 229,152 229,152 123,389 123,389 244,195 244,195 131,490 131,490 259,270 - 259,270 139,607 139,607 274,370 - 274,370 147,738 - 147,738 221,315 47,194 268,509 119,170 47,194 166,364 - 210,883 210,883 210,883 210,883 221,353 221,353 221,353 221,353 231,816 231,816 231,816 231,816 242,266 242,266 242,266 242,266 252,695 252,695 252,695 252,695 263,096 263,096 - 263,096 263,096 273,463 273,463 273,463 273,463 3,402„100 1,742,766 5,144,866 1,831,900 1.742,766 3,574,666 Depreciation Analysis Denton Apartments, Denton, TX DEPRECIATION SCHEDULE (With 50% Bonus Depreciation if applicable) Total Construction Costs 28,181,918 Total Depreciable Basis 40,128,276 Ratio Asset/ Depr Basis Allocated Personal Property - 5 year 7.9200% 3,178,148 Site Work - 15 year 15.8995% 6,380,209 Total 9,558,357 With Soft Cost Allocation 4/18/2016 1:50 PM 3,178,148 6,380,209 9,558,357 Denton Apartments 4%.Current 12 Allocated Allocated Total Personal Property Site Work Per Allocated 1st Year Depreciation 635,630 319,010 954,640 2nd Year 1,017,007 606,120 1,623,127 3rd Year 610,204 545,508 1,155,712 4th Year 366,123 491,276 857,399 5th Year 366,123 442,148 808,271 6th Year 183,061 397,487 580,548 7th Year 376,432 376,432 8th Year 376,432 376,432 9th Year 377,070 377,070 10th Year 376,432 376,432 11th Year 377,070 377,070 12th Year 376,432 376,432 13th Year 377,070 377,070 14th Year 376,432 376,432 15th Year 376,432 376,432 16th Year 188,858 188,858 3,178,148 6,380,209 9,558,357 Denton Apartments 4%.Current 12 THE NRP GROUP LLC Denton Apartments, Denton, 7) Scenario: 4% LIHTC Compliance Period Date 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 Start 2 3 4 5 6 7 8 9 10 11 12 13 14 End 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Annual IRR Capital Benefits Benefits Losses Note Contribution Tax Credits Cash Distrib. Incgme $ (560,934) $ - $ $ (66,519) (1,992,650) 268,560 (14,621,847) 2,316,217 (15,253,835) 1,442,731 - 1,962,536 294,020 1,648,835 (10,617,449) 1,179,167 262,257 1,648,835 (8,706,357) 840,053 - 1,648,835 (6,889,826) 749,309 81,100 1,648,835 (5,159,891) 479,136 65,632 1,648,835 (3,445,423) 231,712 86,780 1,648,835 (1,709,808) 187,524 197,764 1,648,835 10,488 247,947 189,691 1,648,835 46,863 565,041 180,821 1,380,275 49,190 541,971 172,033 206,104 51,515 516,630 162,424 - 53,837 491,526 152,640 - 56,154 464,065 2,197,198 2,197,198 58,466 436,113 - 60,769 6,277,710 4/18/2016 1:50 PM Tax Savings Combined Net Cumulative Net Ending Capital Cost $ Benefits Benefits Account (23,283) $ (584,217) $ (584,217) 627,453 810,676 (913,414) (1,497,631) 303,886 686,888 (13,124,216) (14,621,847) 13,595,185 412,708 2,061,543 (12,560,304) 12,416,018 294,020 1,942,855 (10,617,449) 11,575,965 262,257 1,911,092 (8,706,357) 10,826,656 167,696 1,816,531 (6,889,826) 10,347,520 81,100 1,729,935 (5,159,891) 10,115,808 65,632 1,714,467 (3,445,423) 9,928,284 86,780 1,735,615 (1,709,808) 9,669,849 197,764 1,846,599 136,791 9,057,945 189,691 1,569,966 1,706,757 8,466,785 180,821 386,925 2,093,682 7,898,640 172,033 172,033 2,265,715 7,353,277 162,424 162,424 2,428,139 6,833,058 152,640 152,640 2,580,779 6,338,479 2,197,198 2,197,198 4,777,977 (0) $ (17,807,419) $ 16,488,351 $ 387,281 $ 17,420,138 $ 6,097,045 $ 4,777,977 IRR 5.44% Denton Apartments 4%.Current 13 EXHIBIT 4 Denton Housing Authority Fiscal Year 2016-17 Budget T1 41917AIZ Veranda Bond 0t Veranda Annualf 7,200 Developer .. tip :.464,000 260,300 A(Ojala) 46,000 Section 8 Admin .. 1,175,891 Tenant Rental Income 920,460 Other _ 281,809 Total ,, ,r Administration 2,211,634 Tenant Services 7,200 Utilities 97,500 Maintenance 260,300 Other General Expenses 154,314 Non -Routine Expense 41,000 Total Operating Expense 2,771,949 CAPITA! EXPENSES Repairs and Replacement 201,000 Total Capital Expense 201,000 Net Operating Income 670,211 Denton Housing Authority Fiscal Year 2016-17 Budget Proposed Distribution of Earned Developer Fees DEVELOPER FEES Veranda Bond Issuance 162,000 Veranda Annual Income 27,000 Developer Fee (Ojala) 566,000 Bond Issuance (Ojala) 464,000 Annual Income (Ojala) 46,000 Total Developer Fees 1,265,000 COMMUNITY CONTRIBUTIONS United Way Partnership (5%) Pilot Housing Assistance Program Giving Hope Partnership (Deposits) Total Community Contributions Reserve for Purchase of Renaissance Courts @ 15 years Net Income MIM 63,250 150,000 5,000 218,250 450,000 1,961 EXHIBIT 5 Urlaub & Co., PLLC CERIUIED PUBLIC ACCOUNTANT Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of January 31, 2017, and the related income statement for the 1 Month and 4 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the users conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC February 16, 2017 Current Assets 334,002.00 Cash -unrestricted 628,415.42 Cadi-other resuxted 0,00 Accounts receivable - PHA pru*cts 67,563.23 Amounts receivable - miscellaneous (net) (35,264.12) Amounts receivable - tenants (net) 0.00 Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Investments - unrestricted 0.00 Prepaid expenses and other assets 4,810.96 Inventoties (net) 0100 Inter program - due from 17.507.32 Property and Equipment 334,002.00 Land 0.D0 Buildings 205,955.95 Furniture, equipment and machinery dvvellings 0.00 Furniture, equipment and machinery administration 170,701.73 Accumulated depredation (255,622,08) Unstruction in progress 0.00 Notes, bans & mortgages receivable - non-current 0.00 Nelt Property and Equipment ............................ U�.5. ... . ... ... Total Assets 1N6 152.69 - - ------------ - -- Denton Housing AuthorltV 334,002.00 0.00 159,009.13 2,47000.00 Balance Sheet - Combining 1,837,624.92 3,858,627.68 0.00 2,358,240.87 As of January 31, 2017 Assets 8,260,449.42 0.00 0.00 0.00 Man Herttw Oaks Disaster Funds Pecan Place DPFc Total Fund 0.00 10,059.64 0.00 278,928.63 $ 683,9W,02 $ 946,944.15 0.00 $ 12,248.40 # 0.00 $ 2,271,601.99 0.00 0.00 81,827.31 0.00 0100 811,827.31 0.00 0.00 0.00 0.00 0.00 67,563.23 217,202.93 0.00 0.00 0.00 0.00 181,938.81 0.00 459.10 0.00 233.00 0,00 692.10 0.00 0.00 0.00 0.00 0.00 2,084.00 11.08 0.00 0.00 0.00 0.00 11.36 192,607.22 0.00 0100 0.00 OM 192,607.22 63.16 118.51 0.00 0.00 MOO 4,992.63 986.65 6,591.61 MOD 999.73 0.00 8,577.99 7-0722.74 0.00 0.00 0100 0.00 88,230.06 1,165,507.80 --------------- 95_4 113.37 81,827.31 13 4BI.13 0,00 2,91M,126.74) 509,949.32 334,002.00 0.00 159,009.13 2,47000.00 3,472,960.45 1,837,624.92 3,858,627.68 0.00 2,358,240.87 0,00 8,260,449.42 0.00 0.00 0.00 51,461.80 0.00 51,461.80 36,076.58 62,MO.68 0.00 10,059.64 0.00 278,928.63 (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 ...................... 150. .00I ................................................... 0.00.. 0.00 MOO 0.00 150000.00 . ...... L039 28-6.92 1062 T90.47....... A.OD ....................!�83.46 ........... ..47M.qQ. ...................§L 5996.45� 2,016,503.84 827.31 L===M� L--LjZ0-DDQ.00 L___125_6 123.15 - ---------- -,. 1 .............................. ..................... . .......... - ......... . ................ ......... Uflaub & Co., PLLC See Amountanfs Compilation Report 3 Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Lcmg-Term Liabilities To UaWiftles Net Position Investrnent in capital assets Unrestricted Restitted Capital expenditures -contra Net inoorne (loss) Total Net Position Total Liabilities and Net Position Denton Housing Authority Ralance Sheet - Combining As of 3anuary 31, 2017 Liabilities and Net Position section a Managenumt: Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund $ 1,175.58 0.00 $ 0.00 $ 0.00 $ 0.00 UO 1,17538 1%844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 0.00 UO 21,150.00 0.00 31900.00 0100 25,050.00 1'469.00 0.00 0.00 0100 0.00 2,450,564.81 2,460,03181 12,140.78 0.00. 2,171.67 _.. 0.00 73,917.61 0.00 88.230.06 34,630.22 ------------------ - 11,397.76 2_9579.00 0.00 7-8711.32 2,458,564.81 2 6,02 883,11 12,363.67 1,521,42 �5 835.98 0.00 907.56 0.00 - 12,363.67 1,521.42 5835.98 907.56 0.00 �46 993.89 2,919.18 _3S 414.98 79 618,08 2,458,564.81 99,105.60 1,479,706.13 1,059,290.47 0.00 853,103,21 2,470,000.00 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 23,945,39 0.00 UO 81,027.31 0.00 OLOO 16,630.00 9,580.79 3,100.00 0.00 10,1()0.25 0100 93,141,82 10,266.27 49,218.98 0.00 (24,581.93) 0.00 . ............... 759 158.80 . ....... _2,801 955.54 1,901 WB.86 . . .......... . . ..... . ......... 97 145.71 ............. 11435.19 152,69 . . ...................... jq6_ ............................................................ 874,72 M� 16503.84 �O R27,31 ................... LE6 �76439 J2,!gp,000.00 Urlaub & Co., PLLC See Accountants Compilation Report 4 Operating Revenues Net tenant rental revenue Tenant revenue - other HUD PHA operating grants Management fees Investrrient income - unrestricted Fraud recovery Other revenue Total operating Revenues Operating Expe- Administrative salaries Management heas Advertising and marketing Employee berrefits - adminWrative OMce experees Legal expenses Travel Other admin. Total Administrative -Ilaintenance labor Maintenance materials Maintenance contracts '."Vloyee benefits - maintenance Total IMaintPT3TM. Denton Housing Authority Irim-'rare StateTreTt-CoTrftftiTa Section 8 Management Hedtmffl Oaks Disaster Funds Pecan Place DPFC Total Fund $ 0.00 $ 0.00 $ 240,838.00 $ 0.00 43,876.00 $ mao $ 284,714.00 0.00 0.00 1,079.75 0.00 36.00 0100 1,115,75 4,180,561.00 0.00 0,00 0.00 0.00 0.00 4,180,561.00 0.00 19,692.79 0.00 0100 0.00 0.00 19,692.79 99,66 163.86 894.94 6.00 2.60 0.00 1,161.06 1,967.00 0.00 0.00 0.00 0.00 0.00 1,967.00 210,612.82 128,260,00 1,112.75 0.00 3, .00 0.00 342,985.57 5,300.00 ......................................................... . ....................................................... 01GO . ............................... 0.00 ........................... . 0.00 - O.Go 5,300.00 ...... . ....... ..............................1i8,11665, . ................293 42 46914.60 0.00 , 4,837,497.17 1 163,332.48 32,332.83 26,353.45 0.00 15,775.55 0.00 237,794.31 0.00 0.00 16,621.47 0.00 3,071.32 0.00 19,692.79 344.25 96.67 297.84 0.00 5.09 0.00 743.85 55,198.06 8,900.84 10,569.37 0.00 3,454.51 0.00 78,122.78 61,171.50 7,599.58 4,80.61 0.00 2,729.10 0.00 76,30019 0.00 2,195.50 0.00 0.00 0.00 0.00 2,195.50 6,142.80 5,232.84 416.23 0.00 170.32 0.00 11,962.19 -- -- 9.815.84 28307.62 1,351.98 ---------------- 1.00 --------------- 1073.46 0.00 40,548.90 296, .93 �84 665.88 6-0410.95 0,00 26279.35 0,00 46�7361.11 ..................................................... 0.00 ....................... . ... ...................... 0. - 00 . .... . ...................... I - 892.23 - - .- 0.00 747.24 0.00 2,1539.47 ...... .............................................................. ....................................... -.- .......... . - ...... . ..................................... 47.24 0.00 _2 639.47 0.00 2,484.15 3,475.28 0.00 850.94 0.00 6,810.37 0.00 4,600.05 2,983.28 0.00 2,743.69 0.00 10,327.02 0100 0.00 1,073.83 0.00 1,337.03 0.00 3,211.66 1 0.00 478.45 4,795.34 0.00 956.76 0.00 6_230.551 0.00 7,562.65 13,127.73 0.00 5,889,22 0.00�26 579.60,1 0.00 10,003.27 36,203.68 0.00 4,283.84 0.00 50,490.79 290.55 3,83024 20,327.20 0,00 4,073.38 0.00 28,521.37 1,175.00 0,710.76 37,483.69 0.00 12,308.08 0.00 59,677.53 . .................................0................ . .......................M .. m... 1111n .... 200%27 .... . .............................. 1&465.55. . ............................. t. ;�Jqlt. . ........................... .. . . . ............................................... . .......................... . ... .. ............................................. 0.00 . ...... -.- . . . ........... 1 58g 745.96.. Udaub & Co., PLLC See Accountants Compilation Report 5 Denton Housing Authority P, 11�1 .1 WW M Replacement of equipment section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total W.79 I 2� .....................................0. _..................................................0.00 Fund �21 781.M Total Other Financial I 16 E309 580,79 3.100. W Property insurance 657.00 3,360,17 4,181.09 0.00 1,015.80 0.00 9,214.06 Liability insurance 467.43 459.74 142.91 MOO 39.17 OAD 1,109,251 workmen's compensation 2,060.15 1,957,47 3,048.34 0.00 512.34 OAD 7,586,30 All other Insurance 357.71 75312 465A5 0.00 100.61 0.00 1,676.89 Total Insurance 3,550.29 6,530.50 7,837.79 0.00 1,667.92 0.00 _19 5B6,50 ProbKfive services - other contract costs 0.00 1,988.08 908.55 0.00 2,032.40 0.00 4,929.03, Total Protective Seovkas 0,00 1,9 .08 . . . . . . . 208.55 0.00 2032,40 0.00 4,929,03 Other general expenses 5,571.89 339.00 0.00 0.00 0.00 0.00 5,910.89 Payments In lieu of taxes 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43' Total General Expenses 5,571-89 2,451.43 0.00 0.00 0.00 0.00 8,023.321 Housing assistance payments 3,778,513.00 0.00 0.00 0.00 0.00 OLD 3,778,513.0D HAP portability -in . .......... ;MW3.W. 0.00 ..... . .................................................... ­­ .... . 092 . . ..................................................... 0. 00 - 0.00 0.00 203,663.00 Total Housing Assistance Paymaxats ...................... �6W ..................................... ...................................................0.00 0.00 0.00 MOD 3.982.176.00'' Total Operating Expenses ...................... . ........................... .................... 1-91 0100 61,396.28 0.00 4,670,040.99 Operating Income (Loss)109„771.82.. 19847.06 52318,.98„ 0.00 (14,481.68) 0.00 167,456.18 P, 11�1 .1 WW M Replacement of equipment 16,630.00 O.DO 0.00 0.00 0.00 0.00 16,630.00 Property betterments & additions 0.00 _ . .......................................................... ...................... W.79 I 2� .....................................0. _..................................................0.00 ............................... .... ..................................................... �21 781.M Total Other Financial I 16 E309 580,79 3.100. W W . .......................... ... ..................................................... O.M 1�0 ................................... _4 NetIn (Loss) ....................... 1..... ................ �-1026.27 ;.....................49,218.98 ........................ .. L. 0......._..................Q.....g...4.....5.....8.....L�.......9.....3.......... ................... .............................. j....... 0._....0..... .................j;........M............g................ . 111111111111111 . , �;M!1111111111111 EXHIBIT 6 iW + w MAURMUKAN M FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 TABLE OF CONTENTS FINANCIAL SECTION Page Independent Auditors' Report......................................................................................... 1 Management's Discussion and Analysis.. .. . - — . ........ 3 Statements of Net Position ......................... ......... ......... 8 Statements of Revenues, Expenses and Changes in Net Position ............................... 9 Statements of Cash Flows .. ......... ......a,.. ........ .... 10 Notes to the Financial Statements ... .................... ......... ... 12 FEDERAL AWARDS SECTION Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 19 Independent Auditors' Report on Compliance with Requirements That Could Have A Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 .............................................. 21 Schedule of Findings and Questioned Costs................................................................. 23 Corrective Action Plan ...................... ......... ........ ......... ......,.,.. 24 Schedule of Status of Prior Findings.....................,..,.......,.,...,..,.,......,........,.............. 25 Schedule of Expenditures of Federal Awards................................................................ 26 Notes to Schedule of Expenditures of Federal Awards ............................... .................. 27 HUD Financial Data Schedule ...................... ................... ....... --- ...... . 28 Members: E: AMERICAN INSTITUTE OF A— . AN I S, EASTUP, �E � . ,.. CERTIFIED PUBLIC ACCOUNTANTS TONN a SEAI TEXAS SOCIETY OF CERTIFIED fAPROFESSIONAL, MtPORArl0 m CERTIFIED PlJt31 ICACCOUNTANTSµ^^: PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report of the Financial Statements 902 NORM LOCUS'� POBOX 977 DEN "fON, IX 76202-0077 TEL. (940) 3847 8563 FAX �940� 383 4746 We have audited the accompanying financial statements of the Housing Authority of the City of Denton, Texas ("the Authority"), which comprise the statements of net position as of September 30, 2015 and 2014, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Housing Authority of the City of Denton, Texas as of September 30, 2015 and 2014, and the changes in its net position and its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 7 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Housing Authority of the City of Denton, Texas' basic financial statements. The HUD Financial Data Schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, and is also not a required part of the basic financial statements. The HUD Financial Data Schedule and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the HUD Financial Data Schedule and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2016 on our consideration of Housing Authority of the City of Denton, Texas' internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Govemment Auditing Standards in considering Housing Authority of the City of Denton, Texas' internal control over financial reporting and compliance. ` f �, Ccw�,J, Qea, I �ivw �2 Hankins, Eastup, Deaton, Tonn & Seay, PC Denton, Texas June 24, 2016 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2015 The following is an analysis of the financial performance of the Housing Authority of the City of Denton, Texas (the "Authority"). It is intended to provide the reader with an overview of the Authority's financial activities for the fiscal year ended September 30, 2015. The information contained in this MD&A should be considered in conjunction with the Authority's basic financial statements. Financial Highlights The Authority's total assets decreased from $6,989,951 to $6,259,781, a decrease of $730,170 or 10.4%. The unrestricted net position balance is $2,012,275 at September 30, 2015. This represents a decrease of $229,259, or 10.2% from the previous year. Unrestricted net position represents the amount of available funds for future appropriations. Operating revenues decreased from $12,762,871 to $10,973,856, a decrease of $1,789,015 or 14.0% primarily due to the decrease in the Section 8 Voucher funding. Operating expenses increased by $33,585 to $11,840,527 for the current year. The increase was primarily due to increased maintenance costs. Using this Annual Report This annual report consists of basic financial statements and notes to the financial statements. Management's Discussion and Analysis provides a narrative of the Authority's financial performance and activities for the year ended September 30, 2015. The basic statements provide readers with a broad overview of the Authority's finances. The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. 3 The basic financial statements consist of three statements. 1. The Statement of Net Position provides information on all the Authority's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial situation of the Authority is improving. 2. The Statement of Revenues, Expenses and Changes in Net Position presents information showing how the Authority's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Certain revenues and expenses are reported in this statement that will result in cash flows in future periods. 3. The Statement of Cash Flows presents information showing how the Authority's cash changed during the most recent fiscal year. It shows the sources and uses of cash. The Authority's housing programs include the Housing Choice Voucher Program, Management Program, and DHAP. The Housing Choice Voucher Program provides rental assistance to aid low income families to afford decent, safe and sanitary rental housing. The Authority provides rental assistance in the form of a Housing Assistance Payment to a landlord on behalf of the tenant. The DHAP program ended, however, the Authority still holds funds totaling $81,827 related to that program that are currently restricted. The Authority currently has 1,526 baseline units available. Funds are provided by HUD to provide rental assistance payments. The Authority is provided an administrative fee for the purpose of covering the administrative costs of the program. The fee is preset by HUD on an annual basis. The Authority administers a management fund designed to perform asset management responsibilities for additional properties. Payment for the Authority's administrative office and other rental properties support the Management Program. The Authority organized the Denton Public Facility Corporation (DPFC) in December 2012 to receive and operate a twenty-four unit low-income housing facility. The Authority owned a portion of the general partner of Denton Senior Housing Development, L.P. which held the facility. After the fifteen -year compliance period related to tax credits expired, the limited partner transferred the entire interest in the facility to DPFC. The Authority must operate the facility under the supervision of the Texas Department of Housing and Community Affairs for an additional fifteen years. Renaissance Courts is a multi -family project that received a tax' credits award from Texas Department of Housing and Community Affairs for the development of a 150 unit town -home style, affordable housing project. The development provides for mixed income and market rate rents. The Authority formed Renaissance Courts Public Facility Corporation to serve as the general partner of Renaissance Courts, L.P. a limited partnership to fund and operate the project. Funding comes from the limited partners purchasing the tax credits and a HUD insured 221 (d)4 mortgage. Operation of Renaissance Courts is managed by an outside management group and funded from rental revenues. The Authority received a developer fee this fiscal year and is still to receive additional deferred developer fees in the future, based on the project's cash flow. 4 Authority Activities & Highlights The Authority's overall financial position and operations for the past two years are summarized below based on the information in the current and prior financial statements. The table below lists the asset and liability comparisons for the years ended September 30, 2015 and September 30, 2014. Statement of Net Position Assets The decrease in current assets -unrestricted was due to a decrease in cash as a result of lower administrative fee income. The decrease in current assets -restricted, is due the Authority receiving less funds from HUD than it expended for tenant rents. The increase in capital assets was due to technology purchases and major renovations at Heritage Oaks Apartments. Other non-current assets is a receivable from a related housing development. The Authority advanced funds to refinance existing debt on the development. Liabilities Current liabilities increased primarily due to an increase in accounts payable and accrued compensated absences. Net Position The Authority's unrestricted net position decreased slightly as the Authority spent unrestricted cash on fixed assets. The net investment in capital assets increased due to major renovations at Heritage Oaks. Restricted net position decreased due to a decrease in housing assistance funding from HUD. 5 Statement of Revenues & Expenses Results of Operations Revenues Operating revenues of the Authority are generated principally from dwelling rents, Section 8 Administrative fees, HUD grants, and rental assistance payments. The Authority's revenues decreased by $1,670,650. The primary reason for the decrease in revenue was a decrease in Section 8 voucher funding, decreased payments from other housing authorities and less insurance proceeds from storm damages, partially offset by an increase in tenant revenue. Tenant revenue increased due to an improved lease out percentage at Heritage Oaks. Interest income decreased due to decreasing interest rates paid by banks. The decrease in other revenue is due to decreased payments received from other housing authorities with clients living in the Authority's boundaries and a decrease in insurance payments due to prior year storms, ns�es Total expenses increased by $31,556 over the prior year. Administrative expenses decreased due to broad cost cutting across several areas including salaries, legal, postage and others. Utilities increased as North Texas had a warmer summer than the previous year. Ordinary maintenance increased due to additional maintenance issues with Heritage Oaks. The decrease in general expense was due to a decrease in bad debt. The increase in depreciation expense was due to technology purchases and renovations at Heritage Oaks. Housing assistance payments barely changed as the Authority continued working on keeping their vouchers utilized. 9 Capital Assets As of September 30, 2015, the Authority's investment in capital assets was $ 3,851,375. This investment includes land, building, building improvements, office equipment, and maintenance equipment. The increase in capital assets is the result of technology purchases and renovations at Heritage Oaks. Future Economic Factors The Authority will continue to use excess HAP funds and HUD held reserves to cover funding shortfalls from HUD. The Authority will continue to receive developer fee revenues from Renaissance Courts and income from commercial buildings. The Authority has formed Denton Public Facility Corporation to develop 322 multi -family units of affordable housing using tax credits and tax-exempt bonds. The Authority expects to earn developer and management fees and bond issuance fees from this development. The Authority will work with developers to construct more affordable housing to earn additional developer fee revenues. The Authority also plans to sell vacant land that cannot be used for affordable housing development and use those funds for operational and development purposes. Request for Information This financial report is designed to provide a general overview of the Authority's accountability for all those interested. If you should have additional questions regarding the financial information, contact the Executive Director at Denton Housing Authority, 1225 Wilson Street, Denton, TX 76205. STATEMENTS OF NET POSITION - PROPRIETARY FUND TYPE SEPTEMBER 30, 2015 AND 2014 ASSETS Current Assets: Cash and cash equivalents Cash and cash equivalents - restricted Accounts receivable - net Accounts receivable - HUD Investments Prepaid expenses Total Current Assets Non -Current Assets: Due from related party - net Capital assets Land Building and improvements Furniture and equipment Construction in progress Accumulated depreciation Total Capital assets Total Non -Current Assets Total Assets LIABILITIES Current Liabilities: Accounts payable Accrued salaries payable Security deposits payable Total Current Liabilities Long -Term Liabilities: Accrued compensated absences - non-current NET POSITION Net investment in capital assets Restricted Unrestricted Total Net Position 2015 $ 1,465,866 257,421 5,809 66,270 380,234 19,203 2,194, 803 213,603 1,203,916 8,167,700 348,378 9,116 (5,877,734) 3,851,376 4,064,979 6,259,782 33,478 50,377 25,500 109,355 29,356 3,851,376 257,421 2,012,274 $ 6,121,071 The accompanying notes are an integral part of this statement C 2014 $ 1,720,687 1,035,522 6,133 24,007 379,450 20,491 3,186,290 213,603 1,203,916 7,694,337 329,863 (5,638,058) 3,590,058 3,803,661 6,989,951 27,763 50,082 22,050 99,895 22,942 3,590,058 1,035,522 2,2_41,534 $� 6,867,114 STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Operating Revenue: Tenant revenue Federal housing grants Management income and other operating revenue Total Operating Revenues Operating Expenses: Administration Housing assistance payments Tenant services Utilities Maintenance Insurance Bad debt expense Depreciation Total Operating Expenses Operating Income (Loss) Non -Operating Revenues (Expenses) Interest income Insurance proceeds Gain/(loss) on disposition of asset Total Non -Operating Revenues (Expenses) Change in net position Net Position, Beginning of Year Net Position, End of Year 2015 770,371 9,931,026 272,459 10,973,856 1,118,295 9,877,007 5,144 107,162 467,062 26,066 115 239,676 11, 840, 527 (866,671) 1,703 118,925 120,628 ITITIT(746,043) 6, 867,114 $ 6,121,071 The accompanying notes are an integral part of this statement 0 2014 $ 687,096 11,082,544 993,231 12,762,871 1,181,798 9,867,424 5,661 100,673 372,318 26,346 31,596 221,126 11,806,942 955,929 2,263 X2,,02.9) 234 956,163 5,910,951 $ 6,867,114 STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Cash Flows From Operating Activities Cash received from HUD Cash received from tenants and other housing authorities Cash received from other sources Cash payments for rent and utility assistance Cash payments for administrative and operating expenses Net cash provided (used) by operating activities Cash Flows From Investing Activities Interest on investments Cash from special item Acquisition of capital assets Sale (Purchase) of investments Net cash provided (used) by investing activities Cash Flows From Capital and Related Financing Activities Cash advanced to related party Net cash provided (used) by capital and related financing activities Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year (includes restricted cash of $257,421 and $1,035,522 at September 30, 2015 and 2014, respectively) The accompanying notes are an integral part of this statement 10 2015 2014 $ 9,888,763 $ 11,027,103 1,013,328 1,217,797 33,276 435,848 (9,877,048) (9,867,424) (1,710,091) .___ 1 630) (651,772) 1,090,694 1,703 2,263 118.925 - (500,994) (207,385) 902 (381,150) (206,024) - (213,603) (213,603) (1,032,922) 671,067 2,756,209 2,085,142 $ 1,723,287 $ 2,756,209 STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE (CONTINUED) FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 2015 2014 Reconciliation of Net Operating Income to Cash Provided by Operating Activities: Net operating income (loss) $ (866,671) $ 955,929 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation 239,676 221,126 Decrease (increase) in accounts receivable -net 324 1,465 Decrease (increase) in accounts receivable -HUD (42,263) (24,007) Decrease (increase) in prepaid expenses 1,288 (16,633) Increase (decrease) in accounts payable 5,715 (20,992) Increase (decrease) in accounts payable - HUD (31,434) Increase (decrease) in accrued salaries payable 6,709 1,790 Increase (decrease) in security deposits payable 3,450 3,450 Net Cash Provided by Operating Activities$ X651,772) $ 1,090 694 The accompanying notes are an integral part of this statement 11 ..TAS+ NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES ep�arti Enfit The Housing Authority of the City of Denton, Texas (the "Authority") is a governmental entity with the purpose of providing low income families with reasonable assistance for housing, giving consideration and care for their well-being, and promoting family self- sufficiency to all families without discrimination. The Authority primarily serves the residents of Denton County, Texas. The Authority's primary funding source is the U.S. Department of Housing and Urban Development under the Section 8 Rental Voucher Program. Basis of Presentation The activities of the Authority are similar to those of proprietary funds of local cities and therefore are reported as an enterprise fund in accordance with governmental accounting and financial reporting principles issued by the Governmental Accounting Standards Board (GASB). Accordingly, transactions are accounted for using the accrual basis of accounting. Under Alternative 1 of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the Authority has elected to apply all standards issued on or before November 30, 1989, by the Financial Accounting Standards Board (FASB), in addition to all GASB standards. Canital Assets and Depreciation The Authority records capital assets at cost and provides for depreciation using the straight-line method over the respective estimated useful lives. Furniture and equipment are depreciated over five years. Buildings and improvements are depreciated over thirty to forty years. The cost of normal maintenance and repairs is charged to operating expenses as incurred. Income Taxes The Authority is not subject to income taxes. Cash and', .ash EgUivalents Cash equivalents consist of highly liquid investments with an initial maturity of three months or less. Cash and cash equivalents — restricted represents excess HAP and DHAP funds. See Restricted Net Position. 12 3 �.J4,L'1;,"!w�''ASU kd.M-LI:...,... U9._ 1.1.7..19E NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Net Position The Authority receives payments from the U.S. Department of Housing and Urban Development ("HUD") in monthly installments as determined at the beginning of the year based on anticipated needs. At the end of the year, HUD determines how much of the advanced funds were earned by the Authority. Differences in the amounts advanced and the amount earned create excess HAP funds. The Authority must calculate the excess HAP funds, but keeps the excess funds to use towards any funding shortages in future periods. The funds may only be used in connection with the rental voucher program. The Authority calculated the excess funding of $257,421 and $1,035,522 as of September 30, 2015 and 2014, respectively, which it shows as restricted net position in the statement of net position and as cash and cash equivalents — restricted. The balances of the restricted net position accounts for voucher programs are as follows: Excess HAP — Section 8 Voucher Excess HAP — DHAP Total restricted assets — voucher programs See also Note 3. ConiL)ensated Absences 2015wwwww2014 $ 175,594 $ 953,695 81,827 81,827 $ 257,421 $ 1,035,522 Regular, full-time employees receive compensation for vacations, holidays, illness, and certain other qualifying absences. Compensated absences, which have been earned but not paid, have been accrued in the accompanying basic financial statements. For all compensated absences, the liability is valued using pay rates in effect at the end of the Authority's fiscal year. Pre aid menses Payments made to vendors for services that will benefit future fiscal periods are recorded as prepaid expenses. 13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1 = SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value of Financial Instruments The Authority values cash, cash equivalents, investments, receivables and current liabilities at their carrying amounts reported in the financial statements due to the short maturities of those instruments. Date ofana. e tint's Review Management has evaluated subsequent events through June 24, 2016, the date on which the financial statements were available to be issued. NOTE 2 — REPORTING ENTITY The Authority, for financial purposes, includes all of the accounts relevant to the operations of the Authority. The financial statements presented herein do not include agencies which have been formed under applicable state laws or separate and distinct units of government apart from the Authority. The Authority is governed by a five member Board of Commissioners, who are appointed by the City of Denton, Texas City Council. NOTE 3 — DEPOSITS AND INVESTMENTS Deposits, including those in restricted assets, are defined as cash or cash equivalents on deposit with financial institutions. At September 30, 2015, the carrying amount of the Authority's deposits was $1,723,287 and the bank balance was $1,743,348. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2015, all of the Authority's deposits were covered by FDIC insurance or pledged securities. At September 30, 2014, the carrying amount of the Authority's deposits was $2,756,209 and the bank balance was $2,765,115. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2014, all of the Authority's deposits were covered by FDIC insurance or pledged securities. 14 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED) Cash and cash equivalents consist of the following at September 30: 2015 2014 Cash and cash equivalents — unrestricted $ 1,465,866 $ 1,720,687 Cash and cash equivalents - restricted 257,421 1,035,522 Total cash and cash equivalents $ 1,723,287 $ 2,756,209 Investments The Authority's investments consist of bank certificates of deposit. The certificates of deposit total $380,234 and $379,450 at September 30, 2015 and 2014, respectively. The certificates of deposit are insured up to $250,000 per financial institution. Custodial Credit Risk Custodial credit risk, for deposits and investments that are certificates of deposits, is the risk that, in the event of a bank failure, the Authority's deposits may not be returned. As of September 30, 2015 and 2014, the Authority's deposits were either collateralized or covered by FDIC insurance. For sixteen days during the fiscal year ended September 30, 2015 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $881,868. For sixteen days during the fiscal year ended September 30, 2014 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $799,682. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an instrument. The Authority's investments were in certificates of deposits with maturities no longer than two years. Credit Risk Credit risk is the risk that an issuer or other counterparts to an investment in debt securities will not fulfill its obligation. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage sixteen days during the years ended September 30, 2015 and 2014, respectively. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the Authority's investment in a single issuer. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage sixteen days during the years ended September 30, 2015 and 2014, respectively. 15 _NO 5I�1.G: AUTHOR F-T1J 11 " QF'QF 4T I!, TI, A , NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 4 — C'apital Asset Activity Capital asset activity for the Authority for the year ended September 30, 2015, was as follows: Balance Retirement/ Balance _Oct......1..............__....._........Additions.................._m Adjustment m�..__,,........ Sept. 30.............._ Capital assets not being depreciated: Land $ 1,203,916 $ .. $ $ 1,203,916 Construction in progress 9,116 9116 Total assets not being depreciated 1,203,916 9,116 _ 1,213,032 Capital assets being depreciated: Buildings and improvements 7,694,337 473,363 r 8,167,700 Furniture and equipment 329,863 18,515 _ 348,378 Total capital assets being depreciated 8,024,200 491,878 8,516,078 Less accumulated depreciation for: Buildings and improvements (5,391,063) (203,752) - (5,594,815) Furniture and equipment e (24„6,995) (35,924)mm m. ' _ (282,919) Total accumulated depreciation J5,638,058) ___(239,676)- y �5 877 734 Total capital assets being depreciated, net 2,386,142 252,202 2,638,344 Total capital assets, net $ �W3,590058 ,2,8 $ $ 51,31 ��� - $ 3 >., ,851376 NOTE 5 — RISK MANAGEMENT The Authority is exposed to various risks of loss related to theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The Authority manages its risk of these types of losses through the purchase of commercial insurance. There were no significant reductions in insurance coverage from the previous year, nor have there been settlements in excess of insurance coverage for any of the past three fiscal years. 16 r NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 6 — EMPLOYEE RETIREMENT PLAN The Authority maintains an employee retirement plan for all full-time employees after 90 days of employment. The plan is a defined contribution plan. The Authority contributes 7% of eligible employees' compensation, and employees may make voluntary contributions of up to 10% of their compensation. For the year ended September 30, 2015 and 2014, the authority recorded $36,513 and $43,670, respectively, as retirement contribution expense. NOTE 7 — RELATED PARTY TRANSACTIONS In October of 2004, the Authority formed Renaissance Courts Public Facility Corporation, a not-for-profit entity, to become a general partner in Renaissance Courts, L.P. The Authority transferred low-income housing credits obtained from the Texas Department of Housing and Community Affairs to Renaissance Courts Public Facility Corporation, who in turn, transferred them to Renaissance Courts, L.P. Renaissance Courts, L.P. is a partnership formed to build and operate a 150 unit housing project in Denton, Texas. An outside management group manages the housing project which opened in the summer of 2006. In the event Renaissance Courts Public Facility Corporation is dissolved, any remaining assets, after all of the obligations of the corporation are paid, will be transferred to the Authority. The Authority's directors are also the directors of the Renaissance Courts Public Facility Corporation. In 2014, the Authority advanced funds to the project to facilitate refinancing debt on the project. The advance totaled 213,603 and is shown as due from related party on the statement of net position. NOTE 8 — ACCOUNTS RECEIVABLE Accounts receivable at September 30, 2015 and 2014 consists of the following:. Tenant receivables Receivables due from other Housing Authorities Receivables due from tenants from fraudulent activity Other receivables Less allowance for doubtful accounts Total 17 2015 201..4..........mm..... $ 1,331 $ 2 9,043 9,742 16,674 20,459 2,946 - (24,185) (24,070) $ 5,809 $ 6,133 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Note 9 — Inter -program Receivables and Payables Inter -program balances at September 30, 2015 and 2014 consisted of the following individual program receivables and payables: These accounts were eliminated in the preparation of the general-purpose financial statements. Note 10 —Special Item The Authority was a majority owner in Denton Housing Partners, Inc. the general partner to the Denton Senior Housing Development, L.P. which owned and operated a twenty- four (24) unit low income housing facility for tenants meeting certain income qualifications and are at least sixty-three (63) years of age. Effective December 20, 2012, the limited partner transferred and assigned 100% of its limited partner interest in the partnership to Denton Public Facility Corporation (DPFC). DPFC agreed to accept the transfer and assignment and to release the limited partner from certain of its obligations. DPFC is a public facility corporation and instrumentality of the Housing Authority of the City of Denton, Texas. The Authority now accounts for the assets and liabilities in DPFC as its own as a separate program. 18 201 5 2014 _�...�u Pro..ram ��..�.....__. eceivable Pa_y —Receivab..le ayable Housing Choice Voucher Program: Business Activities $ - $ 6,013 $ - $ 4,630 New Construction Program 3,442 - - 117 Senior Housing Program 504 - Senior Housing Program: Business Activities - 35,698 82,764 Housing Choice Voucher Program 504 - - New Construction Program: Housing Choice Voucher Program - 3,442 117 - Business Activities: Housing Choice Voucher Program 6,013 - 4,630 - Senior Housing Program 35,698 -.m w 82,764 - $ 45,657 $ 45,657 $ 87,511 $ 87,511 These accounts were eliminated in the preparation of the general-purpose financial statements. Note 10 —Special Item The Authority was a majority owner in Denton Housing Partners, Inc. the general partner to the Denton Senior Housing Development, L.P. which owned and operated a twenty- four (24) unit low income housing facility for tenants meeting certain income qualifications and are at least sixty-three (63) years of age. Effective December 20, 2012, the limited partner transferred and assigned 100% of its limited partner interest in the partnership to Denton Public Facility Corporation (DPFC). DPFC agreed to accept the transfer and assignment and to release the limited partner from certain of its obligations. DPFC is a public facility corporation and instrumentality of the Housing Authority of the City of Denton, Texas. The Authority now accounts for the assets and liabilities in DPFC as its own as a separate program. 18 FEDERAL AWARDS SECTION Members:111G� . 902 NORTH LOCUST AMERICAN INSTITUTE OF A TUP, DEATON, I-IANKINS EAS DTC1 N, P.O. BOX 977 CERTIFIED PUBLIC DENTON, TX 76202-0977 ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORAT[ON TEL (940)367-6563 ..;,�.-,.--�. ...,�;,„;=22=••••••;: FAX (9401363.4746 PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Housing Authority of the City of Denton, Texas (the "Authority") as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements and have issued our report thereon dated June 24, 2016. Internal Control Over Financial) RepoEtI In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 19 As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of the audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. h w , C0 Dead, ,iawK 4 Hankins, Eastup, Deaton, Tonn & Seay, PC Denton, Texas June 24, 2016 20 Members:aa.....—,,,,,,,,,,,,,,,,,,,,,m �...�.e ,�_.m,—.wr 902 NORTH LOCUST AMERICAN INSTITUTE OF HANKINS, EASTUP, DEATON, P.O BOX 977 CERTIFIED PUBLIC DENTON, TX 76202-0977 ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORATION TEL (940(.387-8563 CERTIFIED PUBLIC ACCOUNTANTS�ar(gar�(se3-n 746 PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report on Compliance for Each Malior Federal Proaram We have audited Housing Authority of the City of Denton, Texas' compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Housing Authority of the City of Denton, Texas' major federal programs for the year ended September 30, 2015. Housing Authority of the City of Denton, Texas' major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. IVl�una emer�t°s Res orasibitMt Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Res wr�sibilit� Our responsibility is to express an opinion on compliance for each of Housing Authority of the City of Denton, Texas' major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Housing Authority of the City of Denton, Texas' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Housing Authority of the City of Denton, Texas' compliance. 21 & tainlon ort Each_Ma or federal Pro(jrarn In our opinion, Housing Authority of the City of Denton, Texas complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2015. lie port ori frnterrral Control Ogen° Cora llarwce Management of Housing Authority of the City of Denton, Texas is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Housing Authority of the City of Denton, Texas' internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Housing Authority of the City of Denton, Texas' internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. X". k�,, &,"4Ie, aec, Hankins, Eastup, Deaton, Tonn & Seay, PC'�' Denton, Texas June 24, 2016 22 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 1. Summary of Auditors' Results a. Type of auditors' report issued on the financial statements: Unmodified. b. Financial statements — internal control over financial reporting: Material weakness (es) identified: No Significant deficiencies identified that are not considered to be material weakness: No c. Noncompliance which is material to the financial statements: None d. Federal Awards — internal control over major programs: Material weakness (es) identified: No Significant deficiencies identified that are not considered to be material weakness: No e. Type of auditors' report issued on compliance for major federal award programs: Unmodified. f. Did the audit disclose findings which are required to be reported under Section .510(a)2-7 of OMB Circular A-133: No g. Major programs include: Section 8 — Rental Voucher Program, CFDA number 14.871 h. Dollar threshold used for distinguishing between Type A and Type B programs: $300,000. I. Low risk auditee: Yes 2. Findings Related to the Financials Statements None 3. Other Findings None 23 CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2015 CORRECTIVE ACTION PLAN N/A 24 N/A w SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 FEDERAL GRANTOR/ Federal PASS-THROUGH GRANTOR/ CFDA Federal PROGRAM OR CLUSTER TITLE Number Er nditures____ U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Section 8 — Rental Voucher Program Total U.S. Department of Housing and Urban Development 14.871 $ 9,931,026 9,931,026 Total Expenditures of Federal Awards $ www 9,931,026 26 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Denton, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 27 Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 0 913 0/2 01 5 14.871 Housing Chaice Vouchers 6.2 Component Unit- Blended 2 State&ocel 1 Business Activities Subtotal 111 Cash - Unrestricted 112 Cash - Restricted - Modernization and Development $334,359 $10 $852,153 $388,428 $1,574,940 Cash - Other Restricted $175,593 ......,.. $81,627 $257,420 114 Cash -Tenant Security Deposits $o $25,500 $25.5"W113 115 Cash - Restricted for Payment of Current Liabilities $o $o 100 Total Cash $509,952 $877,653 $81,827 $388,428 $1,857,860 .... 121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Projects 124 Accounts Receivable -Other Government $9,043 $66,270 $0 WOO $o 125 Accounts Receivable -Miscellaneous $160 $37 $216,351 $216,548 126 Accounts Receivable -Tenants $0 $1,331 $1,331 12_6.1 Allowance for Doubtful Accounts -Tenants $o _$593 4593 126.2 Allowance for Doubtful Accounts - Other -$7,234 127 Notes, Loans, & Mortgages Receivable - Current $0 $0 $0 I -$7,234 $0 128 Fraud Recovery $16,674 .................. ...._....._..... $tssza 128.1 Allowance for Doubtful Accounts - Fraud $is,357 -$16,357 129 Accrued Interest Receivable $sot $865 $1,466 ....... _.._ .............m._. 120 Total Receivables, Net of Allowances for Doubtful Accounts $69,157 �... $775 .. so $217,216 $267,148 ................ ..._ ..... 131 Investments - Unrestricted $53,189 $192,472 $245,661 _....._._ 132 Investments - Restricted $o ......... ..._... .� $0 135Investments - Restricted for Payment of Current Liability ® _- 142 Prepaid Expenses and Other Assets 143 Inventories $o ____......... $,10,729 $0 _......_ j $987 56,141 W $494 $o $12,210 $6,141 Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 0913012015 14.871 Housing Choice Vouchers 62 Component Unit- Blended 2StaWLocal '. 1 Business AclMlies '.. Subtotal 143.1 Allowance for Obsolete Inventories $o -$614 ` -$614 144 Inter Program Due From $3,946 $41,711 $45,657 145 Assets Held for Sale $0 $o 150 Total Current Assets $646,973 $884,942 $81,827 $840,321 _ $2,454,063 161 Land $0 $493,011 $710,905 81,203,916 162 Buildings $205,956 $6,168,171 $1,793,573 $8,167,700 163 Furniture, Equipment & Machinery - Dwellings $o $51,462 $51,462 164 Furniture, Equipment & Machinery - Administration $212,340 $48,498 $36,077 $296,915 165 Leasehold Improvements so $0 166 Accumulated Depreciation -$295,626 -$4,755,851 -$826,256 $5,677,733 167 Construction in Progress $0 $9,116 _ $9,116 168 Infrastructure $o $0 160 Total Capital Assets, Net of Accumulated Depreciation $122,670 $2,005,291 $0 51,723,415 $3,851.376 171 Notes, Loans and Mortgages Receivable - Non -Current $0 $0 172 Notes, Loans, & Mortgages Receivable - Non Current - Past $o $0 173 Grants Receivable - Non Current $o $o 174 Other Assets $0 $0 176 Investments in Joint Ventures $c so 180 Total Non -Current Assets $122,670 $2,005,291 $0 $1,723,415 $3,851,376 1200. Deferred Outflow of Resources $0 $o ..290 Total Assets and Deferred OutFlow of Resources $769,643 $2,990,233 $81,827 1 $2,563,736 $6,305,439 ..-..... _ 1 Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09130/2015 __._....._........ .....__"______________...._._........._,.._....._. 311 Bank Overdraft 312 Accounts Payable <= 90 Days 313 Accounts Payable X90 Days Past Due 14.871 Housing 'x.6.2 Choice Vouchers .. $0 $3,281 $0 Component Unit- Blended _...............,..,_._....__................... $4.942 2 State/1--i 1 Business Activities .._....... ... - m $11,956 80M01 ........_. $o $20,17.9 $0 321 Accrued Wage/Payroll Taxes Payable 322 Accrued Compensated Absences - Current Portion $23,719 $18,220 $8,294 $4,350 $1,054 $1,118 $33,067 $23,688 324 Accrued Contingency Liability M. 325Accrued Interest Payable _ .......... _ 331 Accounts Payable - HUD PHA Programs $0 _ $o $265 __,.. ........� $0 $0 $zss 332 Account Payable - PHA Projects $o s0 333 Accounts Payable - Other Government $o so 341 Tenant Security Deposits 342 Unearned Revenue _. so $o $25.500 $3,298 $25,500 $3,298 343 Current Portion of Long-term Debt - Capital s0 $0 344 Current Portion of Long-term Debt - Operating Borrowings so so 345 Other Current Liabilities $o so 346 Accrued Liabilities - Other so $1,265 $2,094 $3,359 347 Inter Program - Due To $6,013 $39,644 $45,657 348 LoanLiability - Current $o $0 I 310 Total Current Liabilities $51,498 $87,293 $0 $16,222 $155,013 w 351 Long-term Debt, Net of Current - Capital Projects/Mortgage so $0 352 Long-term Debt, Net of Current - Operating Borrowings 353 Non-current Liabilities - Other so $0� $0 $0 _...._....._.....aa............... ........ ................ 354 Accrued Compensated Absences - Non Current $22.198 $5,850 $1, 07 $29,355 355 Loan Liability - Non Current 356 FASB 5 Liabilities _..__........ ._ __.. $o so ...._._.... ..------. ................_...._..-- $o....._. $0 Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/30/2015 14.871 Housing Choice Vouchers 6.2 Component UnB-'. Blended 25tatelLocal 18uslness Activities Subtotal 357 Accrued Pension and OPER Liabilities $0 $o 350 Total Non -Current Liabilities $22,198 $5,650 $o $1,307 $29,355 30o Total Liabilities $73,666 $93,143 $0 $17,529 Q $184,368 400 Deferred Inflow of Resources 9 508.4 Net Investment in Capital Assets $122,670 $2,005,291 $1,723,415 $3,851,376 511.4 Restricted Net Position $175,593 $81,627 $257,420 512.4 Unrestricted Net Position $397,684 $791,799 $0 $822,792 $2,012,275 513 Total Equity - Net Assets / Position $695,947 $2,797,090 $81,827 $2, 546,207 $6,121,071 600 Total Liabililtles„ Deferred Inflows of Resources and Equity - $769,643 ��$2,890,233 $81,627 $2,563,736 $6,305,439 Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudfted/A-133 Fiscal Year End: 09/30/2015 ......... ._.._......... _.... 111 Cash - Unrestricted FLIM $0 TOW $1,574,940 112 Cash - Restricted - Modernization and Development .____ .._ _... 113 Cash -Other Restricted so $o So __......_ _.......m_...._. $257,320 114 Cash - Tenant Security Deposits so $25,500 115 Cash - Restricted for Payment of Current Liabilities 100 Total Cash so $0..... ._.. $o mmmmm$107,860 121 Accounts Receivable - PHA Projects $o $9,043 122 Accounts Receivable - HUD Other Projects $o $s6 z7o 124 Accounts Receivable - Other Government so so 125 Accounts Receivable - Mis_cellaneous�®.._. 126 Accounts Receivable -Tenants _...._.. so $0 $216,548 $1,331 126.1 Allowance for Doubtful Accounts -Tenants so -$693 126.2 Allowance for Doubtful Accounts - Otherso _.... m........... �.............. -$7,234 -.... .............................. 127 Notes, Loans, & Mortgages Receivable - Current 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud $0 so $0 so $16,674 $16,357 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts $0 so $1,466 $287,148 131 Investments - Unrestricted so $245,551 132_ Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 142 Prepaid Expenses and Other Assets so$o ..._.....,.,..$o $o $o slz,zto mm 143 Inventories $o $6,141 143.1 Allowance for Obsolete Inventories so 4614 Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 0 913 012 01 5 FLIM TOM 144 Inter Program Due From -$45.657 $o 145 Assets Held for Sale ew so $0 150 Total Current Assets -345,657 32,408,406 161 Land $c 31,203$16 162 SWdings $0 $8,167,700 163 Furniture, Equipment & Meohinery- Dwellings $0 $51,462 164 Furniture, Equipment & Machinery -Administration 1165 Leasehold Improvements $6 $0 $296,915 so 166 Accumulated Depreciation $o .$5,877,733 167 Construction in Progress 168 Infrastructure $0 $0 $9,116 $e 160 Total Cap"stat Assets, Net of Accumulated Depreciation $0 $3,651,376 171 Notes, Loans and Mortgages Receivable - Non -Current $0 $0 172 Notes, Loans, & Mortgages Receivable- Non Current- Past so so 173 Grants Receivable - Non Current $o $0 174 Other Assets $6 $0 176 Investments in Joint Ventures $0 $0 180 Total Non -Current Assets $0 $3,851,376 200 Deferred Outflow of Resources so $0 290 Total Assets and Deferred Outflow of Resources -$45,657 $6,2$9,782 311 Bank Overdraft so so Denton Housing Authority (170392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/30/2015 EIIM Total 312 Accounts Payable <= 90 Days $0 $20,179 313 Accounts Payable >90 Days Past Due 50 $o 321 Accrued Wage/Payroll Taxes Payable $0 $33,067 322 Accrued Compensated Absences - Current Portion so $23,688 324 Accrued Contingency Liability $o so 325 Accrued Interest Payable $o $0 331 Accounts Payable - HUD PHA Programs $o $265 332 Account Payable - PHA Projects .-._........ $o _._......._..._. $0 333 Accounts Payable - Other Government $o so 341 TenantSecurifyDeposits $0 $25,500 342 Unearned Revenue $0 $3,298 343 Current Portion of Long-term Debt- Capital $o $0 344 Current Portion of Long-term Debt - Operating Borrowings $o $c 345 Other Current Liabilities $o $c 346 Accrued Liabilities - Other _ $0 $3,359 347 Inter Program - Due To G -$45,657 $c 348 Loan Liability- Current $o $0 310 Total Current Liabilities $45,657 $109.356 351 Long-term Debt, Net of Current - Capital Projects/Mortgage $0 $o 352 Long-term Debt, Net of Current -Operating Borrowings $o $o 353 Non-current Liabilities -Other .. $0 $0 .____._._...�.._._...._ 354 Accrued Compensated Absences - Non Current .......... _.... ., $o _.... -..._..._..._...................._ $29,355 355 Loan Liability - Non Current ....,. $0 $0 356 FASB 5 Liabilities $o $0 357 Accrued Pension and OPEB Liabilities $o $o Denton Housing Authority (TX392) Denton, TX Entity Wide Balance Sheet Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09130/2015 FLIM Total 350 Total Nan -Current Liabilities So 526,365 300 Total Liabilities 445,657 $138,711 400 Deferred Inflow of Resources 508.4 Net Investment in Capital Assets $3,851.376 511.4 Restricted Net Position $257,420 512A Unrestricted Net Position I 52,012,275 513 Total Equity - Net Assets / Position 11 $6,121,071 600 Total Liabilities, Deferred Inflows of Resources and Equity - -$45,667 $6,259,782 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09130!2015 14.871 Housing Choice Vouchers 620omponentunil' 2StatnJLoca1 Blended 1 Business Activities Subtotal 70300 Net Tenant Rental Revenue $o $768,300 $768,300 70400 Tenant Revenue -Other $o $2,071 � C _.._ $2,071 70500 Total Tenant Revenue s0 $770,371 $0 $0 $770,371 70600 HUD PHA Operating Grants $9,931,026 .... $9,931,026 70610 Capital Grants W.__.. �o $o LL 70710 Management Fee $0 70720 Asset Management Fee somm__.. _ 70730 Book Keeping Fee $o 70740 Front Line Service Fee so 70750 Other Fees $o 70700 Total Fee Revenue so W 70800 Other Government Grants so $0 71100 Investment Income - Unrestricted 3x60 $635 36x6 _ $1,704 71200 Mortgage Interest Income so so 71300 Proceeds from Disposition of Assets Held for Sale $o s0 71310 Cost of Sale of Assets $0 $o 71400 Fraud Recovery $922 $922 71500 Other Revenue $231,794 $122,228 $1x6,956 emmmmmm $540,97 m 71600 Gain or Loss on Sale of Capital Assets so $o 72000 Investment Income - Restricted so s0 ,70000 Total Revenue $10,164,222$893,184 $0 $167,645 $11,245,001 91100 Administrative Salaries $473,962 $130,509 $16,801 $621,292 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/30/2015 14.871 Housing Choice Vouchers 6.2 Component Unit- Blended 2 Stale/Cowl 9 Business Activities Subtotal 91200 Auditing Fees $8,925$5,100 52,975 $17,000 91300 Management Fee $0 $53,958 $53,956 91310 Book -Steeping Fee $0 $0 91400 Adverllsing and Marketing $1,166 $173 $323 I $1,662 91500 Employee Benefit contributions - Adminlstra6ve $138,867 $34,202 54,424 $975,493 91600 Office Expenses 191700 Legal Expense, $185,298 s0 $25,438 $7,313 $10,977 $218,049 $10,977 91800 Travel $17,760 $4,180 $11,657 $33,597 91810 Allocated Overhead _ 30 91900 Other 91000 Total operating -Administrative $29,146 $853,944 $10,100 �. $263,65a $0 �$22,476 $76,946 $61,722 $1,193,748 92000 Asset Management Fee $o $0 92100 Tenant Services - Salaries $0 $0 92200 Relocation Costs so ....$o 92300 Employee Benefit Contributions - Tenant Services $0 [G' $0 92400 Tenant Services - Other $0 $5,144 $6.944 92500 Total Tenant Services $0 $5,144 $0 $o $5,944 93100 Water s0 $17,420 $8,545 ' $25,965 .93200 Electricity �.._ $0 $23,636 $20,730 $44,366 93300 Gas $0 $12,150 $12,150 93400 Fuel so $0 93500 Labor $0 $0 93600 Sewer $0 $22,871 $1,810 $24,681 93700 Employee Benefit Contributions - Utilities $0 $0 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09(30/2015 .... ................. ........ . . . . ..... . . ............ . .... 93800 Other Utilities Expense 93000 Total Utilities. . .......... . ........ . 14.871 Housing Choice Vouchers . so so . ............ . .. ..... 6.2 Component Unit- Blended . . . . ........... $76,077 2 Staten oval $0 I Business Activities $3 Subtotal $0 . . . ...... 94100 Ordinary Maintenance and Operations - Labor 94200 Ordinary Maintenance and Operations - Materials and 94300 Ordinary Maintenance and Operations Contracts $o $3.012 $3,414 $11x,729 $109,858 $117.130 $13.557 $8,376 $27,082 $12g.286 $121.246 $147.626 94500 Employee Benefit Contributions - Ordinary Maintenance $0 $39,532 $6,09�7 $44.629 94000 Total Maintenance $6.426 $382.249 $0 $54,112 $442.787 . ............................ 95100 Protective Services - Labor $0 $0 ...a_ ................. 95200 Protective Services - Other Contract Costs $0 $12,664 $6,024 $18,688 95300 Protective Services - Other $0 $0 95500 Employee Benefit Contributions - Protective Services . . . ......... . .... 95000 Total Protective Services $o $o . .....® --$1-2,664 $0 $6.024 $0 $18.688 96110 Property Insurance 96120 Liability Insurance $3,329 $216 $6,658 $433 $3.329 $216 $13,316 $865 96130 Workmen's Compensation 96140 All Other Insurance $1,836 $1.135 $3.672 $2,270 $1,836 $1.135 $7.344 $4,540 96100 Total insurance Premiums ....... . ........ . . . ...... . . .... $6,516 $13,033 $0 $5.516 $26.065 .... ....... . 96200 Other General Expenses 96210 Compensated Absences $23,277 $33,273 1160 ......... $9.894 . ..... $817 $2.238 $24,254 $45,405 96300 Payments in Lieu of Taxes $0 f $0 . ....... 96400 Bad debt- Tenant Rents ..... . $0 $594 $594 96500 Bad debt- Mortgages ........................ . ......................... . . . . . ............................. . so Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense summary Submission Type: UnauditedlA-133 Fiscal Year End: 0913012015 14.871 Housing Choice Vouchers 6.2 Component Unit - Blended 2 StatelLocal 1 Business Aetivilies subtotal 96600 Bad debt - Other $82 $82 96800 Severance Expense $0 $o 96000 Total Other General FJCpenSBS$56,632 $10,648 $o $3,055 $70,335 96710 Interest of Mangege (ar, Bonds) Payabge 50 $o 96720 Intereston Nos 9 96730 Amortization ofBond a5 I st a Costsand Lon Term) $o SO $0 $0 96700 Total Interest Expense and Amortization Cost $o $6 � $o $o $0 196900 Total O ar'� at4n Expenses p $922,718 ii $763,473 $0 .m $177,738 $1,863,929 97000 Excess of OparaUng Revenue over Operating Expenses $s,241,s0a $126,661 $9 $6,907 $9,381,072 97100 Extraordinary Maintenance $0 $5,586 $5586 97200 Casualty Losses- Non-capHtalized $o $4,646 $4,846 9 97300 Housing Assistance Payments _ $6,68x,166 $9,682,166 ,.,. 97 350 HAP Portabi4itymOn 97400 Deprecdation'i Expense $194,841 $29,093 11 $141,148 $69.435 $194,841 $239,676 97500 Fraud Losses $0 $o 97600 CapiW OtAlays - Governmental Funds 97700 Debt Pnnnipal Payment- Governmental Funds 97800 Dtiveltlrng Units Rent Expertise $0 i so 90000 Total Expenses $10,826,818 $915,053 $0 $247,173 $11,991,044 10010 Chperat`rng Transfer in _. 10020 Oparating transfer Out $a $0 $o $o Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: UnauditedlA-133 Fiscal Year End: 09/3012015 14.1171 Housing Choice Vouchers 6.2 Component Unit-'. 2 State/Local 1 Business Aclrvlttes Blended Subtotal 10030 Operating Transfers from/to Primary Government __.. so $o 10040 Operating Transfers fromlto Component Unit _ so $0 10050 Proceeds from Notes. Loans and Bonds 10060 Proceeds from Property Sales 10070 Extraordinary Items, Net Gain/Loss $o 10080 Special Items (Net Gain/Loss) _ $o $0 10091 Inter Project Excess Cash Transfer In ........ _. ..._ $0 10092 Inter Project Excess Cash Transfer Out $0 10093 Transfers between Program and Project - In $o $0 10094 Transfers between Project and Program - Out $0 $0 10100 Total Other financing Sources(Uses) $0 I $o so $o $0 _ ._ ._.. 10000 Excess (Deficiency) of Total Revenue Over (Under) Total $664,596 -$21,919 $0 459,528 -$746,043 11020 Required Annual Debt Principal Payments $0 so so $0 $0 11030 Beginning Equity $1,360,543 $2,819,009 $81,827 $2,605,735 $6,867,114 11040 Prior Period Adjustments, Equity Transfers and Correction $0 $0 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability _...... �, 11080 Changes in Special Term/Severance Benefits Uability, 11090 Changes in Allowance for Doubtful Accounts_- Dwelling .,_..,..m._.� 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity 5520,354 $520,354 11180 Housing Assistance Payments Equity $17ss93 $175,593 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/30/2015 14.871 Housing 6.2 Component Unit- Choice Vouchers Blended 2 StalelLocel ss 1 BusineActivities Subtotal 11190 Unit Months Available 18312 1726 20040 11210 Number of Unit Months Leased172s2 1429 lasso 11270 Excess Cash 11610 Land Purchases 11620 Building Purchases 11630 Furniture & Equipment - Dwelling Purchases 11640 Furniture & Equipment - Administrative Purchases 11650 Leasehold Improvements Purchases 11660 Infrastructure Purchases 13510 CFFP Debt Service PaymenPs f 13901 Replacement Housing Factor Funds Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/3012015 . ......... . . . ........... . ELIM . .. ........ Total 70300 Net Tenant Rental Revenue $0 $768,300 70400 Tenant Revenue - Other .............. $0 ]— $2.071 70500 Total Tenant Revenue ........ .. $0 —..- $770,371 70600 HUD PHA Operating Grants $0 $9,931,026 70610 Capital Grants so so 70710 Management Fee ... . ....... .... $0 $0 70720 Asset. Management Fee $0 $0 70730 Book Keeping Fee so so 70740 Front Line Service Fee so so 70750 Other Fees so $0 70700 Total Fee Revenue $0 $0 . . . .. ..... . ..... 70800Other Government Grants .._._.......- . ......70800 $0 $0 71100 Investment Income - Unrestricted $0 $1.704 71200 Mortgage Interest Income $0 so 71300 Proceeds from Disposition of Assets Held for Sale $0 71310 Cost of Sale of Assets $0 $0 71400 Fraud Recovery $0 $922 71500 Other Revenue "71600 .$149,956 $391,022 Gain or Loss on Sale of Capital Assets $0 $0 72000 Investment Income - Restricted $0 $0 ........ .... 70000 Total Revenue -$149.966 $11.0"'95,045 L91100 Administrative Salaries $0 $621,292 �91200 Auditing Fees .......... . $0 $17.000 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/30/2015 ELIM Total 91300 Management Fee $53,956 $o 91310 Book-keeping Fee $0 $o 91400 Advertising and Marketing 91500 Employee Benefit contributions - Administrative $0 $o $102 $175,493 91600 Office Expenses$ss,aoo $122,049 91700 Legal Expense $0 $10,977 91800 Travel $0 $33,597 91810 Allocated Overhead $o $o 91900 Other $c $61,722 91000 Total Operating - Administrative $149,956 $1,043,792 92000 Asset Management Fee $o $0 92100 Tenant Services - Salaries $0 so 92200 Relocation Costs $0 $0 92300 Fmployee Benefit Contributions - Tenant Services $o $o 92400 Tenant Services - Other $o $5,144 92500 Total Tenant Services $o $5,144 93100 Water - $0 $25,965 93200 ElecIddly $n $44,366 93300 Gas $o $12150 93400 Fuel $0 $o 93500 Labor $c $0 93600 Sewer .......... $0 $24,661 93700 Em&yee Benefit Contributions - Utilities $0 $0 93800 Other Utilities Expense $0 $0 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09130/2015 ELIM Total ... . .... ........ 93000 Total Utilities-. $0 $107,162 94100 Ordinary Maintenance and Operations - Labor $0 $129.286 94200 Ordinary Maintenance and Operations - Materials and $.D. $121,248 94300 Ordinary Maintenance and Operations Contracts $0 $147,626 94500 Employee Benefit Contributions - Ordinary Maintenance $0 $44,629 94000TotalMaintenance $0 $442.787 95100 Protective Services - Labor $0 .... . . . ............ 95200 Protective Services - Other Contract Costs $0 95300 Protective Services - Other so $0 $18,688 so 95500 Employee Benefit ContHbutions - Protective Services $D so 95000 Total Protective Services $0 . . . . ............ . .. - - - ----- $18.688 [96110 Property insurance $0 96120 Liability Insurance so 96130 Workmen's Compensation 96140 -All &her Insurance $0 96100 Total insurance Premiums 0 ............. . ........ . . ..... ... . ....... . .. . .......... $13,316 $865 $7,344 $4,540 $26,065 16200 Other General Expenses $0 96210 Compensated Absences $0 $24,254 $45,405 96300 Payments in Lieu of Taxes so 96400 Bad debt - Tenant Rents so $0 $594 96500 Bad debt - Mortgages so so 96600 Bad debt- Other so $82 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/3012015 EUM Total 96800 Severance Expense $o $o 96000 Total Other General Expenses $0 $70,335 96710 Interest of Mortgage (or Bonds) Payable so so 96720 Interest on Nates Payable (Short and Long Tenn) so $o 96730 Amortization of Bond Issue Costs $o $o 96700 Total Interest Expense and Amortization Cost $0 so 96900 Total Operating Expenses -$149,956 $1,713,973 97000 Excess of Operating Revenue over Operating Expenses $0 $9,381,072 97100 Extraordinary Maintenance $o $5,585 97200 CESUalty Losses - Non -capitalized so $4,846 97300 Housing Assistance Payments $0 $9,682,166 97350 HAP Portability -In $0 $194,841 97400 Depreciation Expense $o $239,676W 97500 Fraud Losses so $o _ 97600 Capital Outlays - Governmental Funds 97700 Debt Principal Payment- Governmental Funds 97800 Dwelling Units Rent Expense $0 $o 90000 Total Expenses 5149,956 $11,641,088 10010 Operating Transfer In $0 $o 10020 Operating transfer Out $0 $o 10030 Operating Transfers fromlto PrimaryGovemment $0 $o Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 0913012015 EUM Total 10040 Operating Transfers from/to Component Unit so ............. so 10050 Proceeds from Notes, Loans and Bonds 10060 Proceeds from Property Sales 10070 Extraordinary Items, Net Gain/Loss so $0 10080 Special Items (Net Gain/Loss) so so 10091 Inter Project Excess Cash Transfer In so $0 10092 Inter Project Excess Cash Transfer Out $0 $0 10093 Transfers between Program and Project -In $0 $0 10094 Transfers between Project and Program - Out so $0 10100 Total Other financing Sources (Uses) $0 10000 Excess (Deficiency) of Total Revenue Over (Under) Total -$746.043 . .................... 11_020Required Annual Debt Principal Payments ......................................- ....... .................11020 $0 11030 Beginning Equity -i1046 $0 $6,867,114 Prior Period Adjustments, Equity Transfers and Correction so so 11050 Changes in Compensated Absence Balance 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity 111180 Housing Assistance Payments Equity 111190 Unit Months Available 0 20040 Denton Housing Authority (TX392) Denton, TX Entity Wide Revenue and Expense Summary Submission Type: Unaudited/A-133 Fiscal Year End: 09/30/2015 EUM Total' 11210 Number of Unit Months Leased o lasso 11270 Excess Cash 11610 Land Purchases 11620 Building Purchases 11630 Furniture & Equipment- Dwelling Purchases 11640 Fumtture & Equipment - Administrative Purchases 11650 Leasehold Improvements Purchases 11660 Infrastructure Purchases 13510 CFFP Debt Service Payments 13901 Replacement Housing Factor Funds �� EXHIBIT 7 DHA Development Activities # OF Market DEVELOPER EST. REV. DEVELOPMENT PARTNER TYPE UNITS Rate DHA AFFILIATE FEE ROFR CASHFLOW 4% or 9% (15 YEARS) The Veranda NRP Family 322 0 DPFC 65/35 ✓ 50/50 4% $3,574,666 MedPark Standard Ojala Family 263 0 DPFC 65/35 ✓ 50/50 4% $2,400,000 MedPark Hudson Ojala Elderly 160 0 DPFC 65/35 ✓ 50/50 4% $1,900,000 Palladium Palladium Family 180 92 Premier DPFC 50/35/15 ✓ 48/28/14/10 9% $1,564,407 Reserve at Sherman MV Residential Family 120 24 Premier DPFC Pending ✓ Pending 9% $2,000,000 Total 1045 $11,439,073 CH O DATE: May 1, 2017 DEPARTMENT OF COMMUNITY AFFAIRS 215 E. McKinney * Denton, TX 76201 * 940-349-8509 MEMORANDUM TO: Todd Hileman, City Manager FROM: John Cabrales, Director of Community Affairs SUBJECT: Information on Denton Housing Authority — Ojala Tax Credit Development Below is information in response to questions asked by council regarding the partnership between the Denton Housing Authority (DHA) and Ojala Holdings on two, 4% tax credit developments. All the information was provided by DHA and Ojala. Both DHA and Ojala plan to be present at tomorrow's Work Session discussion to answer any further questions. What are the differences between a 9% Housing Tax Credit development and a 4% Housing Tax Credit development? The Texas Department of Housing and Community Affairs (TDHCA) administers two different housing tax credit programs in the State of Texas; a 9% and 4% program. Housing tax credits are used to help finance the construction, acquisition and/or renovation of affordable housing units. • 9% housing tax credit program: o VERY competitive program -- In 2017, 85 applications were submitted in the DFW region, of which eight may be funded (less than 10% success rate). o Applications are funded based on detailed scoring criteria established by TDHCA -- all developers `compete' against one -another. o Local units of government can affect the points of an applicant from their jurisdiction by approving a resolution of "Opposition", "Non -Opposition", or "Support." o Typically, a 9% award will provide an equity contribution to the development equal to approximately 70% of the total development costs. 4% housing tax credit program: o Non-competitive program that favors good site selection over an opaque set of application rules. o Applications are funded based on hitting detailed criteria established by TDHCA. o Local units of government must approve a resolution of "Non -Opposition" for an application to be considered. o Typically, a 4% award will provide an equity contribution to the development equal to approximately 30% of the total development costs -- significantly lower than a 9% deal, thus additional financial creativity is required (tax exemptions, soft loans, forgivable grants, etc.). What are the deal points in the partnership agreement between DHA and Ojala? • DHA and Ojala will serve as co -developers o Ojala will manage the pre -development, development and construction process o DHA has consent/approval rights on all major decisions • Developer Fee split 65/35 between Ojala/DHA - $1,925,000 to DHA • Cash Flow split of 50/50 - $2,977,423 to DHA • DHA to retain the Right of First Refusal (ROFR) purchase option in year 15 (can purchase the property from the partnership) What are the financials for DHA in the agreement? • $4,902,423 in total income = $1,925,000 (developer fee) + $2,977,423 (cash flow), over a 15 year period. What does DHA plan to do with the revenue gain from this agreement? • DHA plans to further its core mission to provide quality affordable housing and promote programs to assist families toward self- sufficiency. DHA's waiting list has 3,000 families currently, but it is closed, and they will not be able to reissue any vouchers for the next year. • Reserve some funding for the purchase option on the development after the 15 year period. • Use some funds towards their voucher program, due to reduced funding from the Department of Housing and Urban Development HUD. They estimate they will lose approximately 170 vouchers for next fiscal year. • They plan to use some funds for pre -development costs towards the replacement of their remaining senior housing property. • Fund Community Partnership with United Way and its partner agencies to address Community Impact issues relating to DHA's mission and goals, (i.e. Security Deposit, Homelessness & veteran housing issues, and programs for families to better enhance their lives). • Backfill federal budget cuts, allowing DHA to provide housing options for about 170 individuals and families that would otherwise be homeless • Help funding on-site services and programs for the MedPark residents — such services include: o Social events (potluck dinners, game night, movie nights, birthday parties) o After school childcare services and programs o Health screenings and nutritional courses o GED preparation classes o Annual income tax preparation (offered by an income tax prep service) o Quarterly financial planning courses (homebuyer education, credit counseling, investing advice, retirement plans) o Arts, crafts, and other recreational activities o Guest lectures o Food pantry/common household items What specifically is in it for the community as a whole? • Residents — Both seniors and families will gain access to quality housing that is in extremely high -demand. o Denton has a large supply/demand imbalance of quality, affordable rental housing - a market study conducted last year (surveying 53 apartment communities) indicated that the Denton rental market was 98.9% occupied o Denton has not had additional affordable units added to its inventory in several years and is projected to create a demand for 3,937 new rental units over the next five years • Community — The development will provide revenue to DHA (backfilling the reduction in HUD funding) and allow DHA to provide housing options for 100 plus individuals and families that would otherwise be homeless City of Denton — The City will receive fees related to construction of the development, i.e. Permit fees, inspection fees, and impact fees Local businesses — Gain access to consumers that can spend more of their incomes on goods and services vs. rent o 6,807 income qualified families and 2,531 income qualified seniors currently live in Denton -- families and seniors that qualify already live in the proposed development -- currently, they are just paying a very high % of their income on rent (reducing their discretionary spending allowances) What is the loss of the property taxes of a period of time (15 years)? • Current land value o The land has an agricultural tax exemption and is valued at $247,672 o $115,030 in tax payments over a 15 -year period • As developed into a workforce housing property o $4,514,413 over a 15 -year period, or $300,960 per year o This assumes that the property is assessed at a similar value to Providence Place, the nearby tax credit property. https://www.dentoncad.com/home/details?search=306721 o Providence Place is assessed at $27,945 per unit, less than 1/4 of the value ascribed to market rate properties in Denton ■ Arch at Denton - 2010 Construction — 210 units —Assessed at $185,000 per unit https://www.dentoncad.com/home/details?search=209329�year�___ x2017 ■ Lodge at Pecan Shores — 2011 Construction — 192 units — Assessed at $130,000 per unit https://www.dentoncad.com/home/results?owner id=780461&searchb� See attached Property Tax Analysis for more information. What is a clear definition of workforce (or affordable) housing? What does it looks like for Denton? Workforce housing = Housing that is restricted to residents (families and seniors) that earn at or below a certain % of Area Median Income (AMI). AMI in Denton County = $71,700. Restrictions at MedPark are set at 60% of AMI, thus residency will be restricted to tenants earning at/below $43,020 per ,year. Rents are restricted at $776 - $1,057 for 1, 2, and 3 bedroom units. The goal of workforce housing is to provide quality housing options at restricted rental rates, so that residents do NOT pay more than -30% of their income on rent. How much workforce housing is currently available in Denton? Current rental market in Denton consists of 82 total rental properties, of which 7 are workforce (8.5% of total). Currently, the workforce properties are 99% occupied. How much workforce housing is needed? The current occupancies sit at about 99%, and there have been no workforce units added since 2007, and the projected growth in Denton over the next 5 -years will likely create a demand for an additional 3,937 rental units. Therefore, the demand for new rental units is extremely high. 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Standard / Hudson at Med Park Station Property Tax Analysis Current Value Assumes 2.0% Annual Increase Property current has an Agricultural Tax Exemption Developed Value, as Tax Credit Property Value Rate Structure with DHA Year Land Improvements Total Per $100 Tax Pmt 2016 $ 92,737 $ 154,935 $ 247,672 2.49% $ 6,171 2017 94,592 158,034 252,625 2.49% 6,295 2018 96,484 161,194 257,678 2.49% 6,421 2019 98,413 164,418 262,832 2.49% 6,549 2020 100,382 167,707 268,088 2.49% 6,680 2021 102,389 171,061 273,450 2.49% 6,814 2022 104,437 174,482 278,919 2.49% 6,950 2023 106,526 177,972 284,497 2.49% 7,089 2024 108,656 181,531 290,187 2.49% 7,231 2025 110,829 185,162 295,991 2.49% 7,375 2026 113,046 188,865 301,911 2.49% 7,523 2027 115,307 192,642 307,949 2.49% 7,673 2028 117,613 196,495 314,108 2.49% 7,827 2029 119,965 200,425 320,390 2.49% 7,983 2030 122,365 204,433 326,798 2.49% 8,143 2031 124,812 208,522 333,334 2.4991. 8,306 12,795,369 12,901,895 2.49% Total Payments $ 115,030 Developed Value, as Tax Credit Property Proposed Structure with DHA Assumes 2.0% Annual Increase Value Rate Year Land (a) Improvements (b) Total Per $100 Tax Pmt Notes Year Developer Fee Cash Flow Total 2016 $ 92,737 - $ 92,737 2.49% $ 2,311 Under Construction 2016 962,500 - 962,500 2017 94,592 - 94,592 2.49% 2,357 Under Construction 2017 962,500 - 962,500 2018 96,484 5,910,472 6,006,955 2.49% 149,678 Lease -Up 2018 - 168,435 168,435 2019 98,413 11,820,944 11,919,357 2.49% 297,001 Stabilized 2019 - 174,330 174,330 2020 100,382 12,057,362 12,157,744 2.49% 302,941 2020 - 180,432 180,432 2021 102,389 12,298,510 12,400,899 2.49% 308,999 2021 - 186,747 186,747 2022 104,437 12,544,480 12,648,917 2.49% 315,179 2022 - 193,283 193,283 2023 106,526 12,795,369 12,901,895 2.49% 321,483 2023 - 200,048 200,048 2024 108,656 13,051,277 13,159,933 2.49% 327,913 2024 - 207,050 207,050 2025 110,829 13,312,302 13,423,132 2.49% 334,471 2025 - 214,296 214,296 2026 113,046 13,578,548 13,691,594 2.49% 341,160 2026 - 221,797 221,797 2027 115,307 13,850,119 13,965,426 2.49% 347,984 2027 - 229,560 229,560 2028 117,613 14,127,122 14,244,735 2.49% 354,943 2028 - 237,594 237,594 2029 119,965 14,409,664 14,529,629 2.49% 362,042 2029 - 245,910 245,910 2030 122,365 14,697,858 14,820,222 2.49% 369,283 2030 - 254,517 254,517 2031 124,812 14,991,815 15,116,626 2.4991. 376,669 2031 263,425 263,425 Total Payments $ 4,514,413 $ 1,925,000 $ 2,977,423 $ 4,902,423 (a) Land= Current Land Valuation (b) Improvements = Per Unit Value of adjacent property (Providence Place) $27,945 per unit x423 units = $11,820,944 Providence Place Improvement Value $ 8,104,193 Units 290 Value/Unit $ 27,945 Source: Denton CAD: https://www.cientoncaci.com/home/details?search=306721 Denton Housing Authority L3721 NUMM 215 E. McKinney Street Denton, TX 76201 Re: Resolutions for Developments Dear Ms. Kuechler, DHA is in receipt of your request dated May 4, 2017 for answ�6rs to additional questions following,the City Council meeting held on May 2. 2017, with a required due date of by 9:00 am. The answers to most of these questions have been asked and answered and backup documentatioormation has been provide&to Council and City staff on several occasions. My records indicate: OctoberA8, 2016, February 7 Ith & �k 21st, 2017, and finally on Mayl, 2017. Section 8 Pecan Place Hentage Oaks 940/383 1504 940/484-9535 940/383-1506 '225 Mlsoiri St. , DcriRicn, Texas 716205 -9401383-3039 - Fax 9401383 2035 E-mafl ACa dentonhousingauthority.com 121 *Please note: Any funding not used for the Voucher Program will be used to fund the reserve for purchase option for Standard & Hudson. **DUE TO THE TIMING OF THIS RESPONSE, THE PROPOSED LIST OF FUNDING HAS NOT GONE BEFORE THE DHA BOARD 2. The City of Denton has a staff liaison, Barbara Ross that receives DHA Board of Commissioner's reports, agendas, and minutes for all monthly and Special called meetings. We will continue to provide her with the same information. We will provide you with a report of any funds allocated to United Way for Community Impact Initiatives as they are approved by our Board annually. 3. Yes, there will be internet access. 4. DHA and City staff have spoken to the Superintendent previously, and as of today have requested a written letter as the Council has requested. 5. DHA provided the financial information regarding these developments to City staff as reported and reviewed at the May 2, 2017 Council Work Session. According to the Mayor and Council at the meeting on May 2"d, these Resolutions would be placed on the Council agenda for May 91". If for some reason they are not, please notify me as soon as possible. Thank you, 9VI,, C( —jz-' YWAA4 "' M 5�d Sherri McDade Chief Executive Officer Denton Housing Authority September 14, 2017 City of Denton Sarah Kuechler Assistant to the City Manager 215 E. McKinney Street Denton, TX 76201 Re: Low Income Housing Tax Credit (LIHTC) • Request for Support 2018 Policy Dear Sarah, Thank you for meeting with myself, staff, consultant, and a member of our Board of Commissioners on September 6, 2017 regarding your draft of a LIHTC Policy. We shared with you our concerns of the impact this policy would have on the affordable housing community and specifically Denton Housing Authority (DHA). Since we did not receive a copy of this draft prior to this meeting, we could only provide you a brief response. I was a little surprised by this, especially since you had already met with City Council in June. This Policy is a barrier to affordable housing in the city of Denton, especially for DHA. This policy will unfairly target minority, disabled, and elderly families who are in the most need for affordable housing and will hinder DHA's efforts to provide affordable housing to these vulnerable populations. At a time when affordable housing is a luxury for some, many poor families struggle to make enough to afford rent, even here in the City of Denton. In Texas, a minimum wage worker has to work 93 hours per week in order to afford a modest two-bedroom apartment. (Sources: 2014 American Community Survey, National Low Income Housing Coalition's Out of Reach 2014) Non-profit developers such as DHA should not be required to "pay to play" in order to develop affordable housing in Denton, when state law, not the whim of the council, has determined that a housing authority is a political subdivision of the state and therefore exempt from property taxes. Just like UNT, TWU, school districts, counties, etc. This Policy only recreates the LIHTC application process already in place by the state and requires the expenditure of unnecessary dollars at a time when funding from federal agencies have been drastically reduced. The majority of the questions will require work from attorneys, architects, engineers, consultants, costly studies (i.e. traffic impact, market, environmental, etc.) that in most cases would not be required until further along in the state application process. No developer, private or non-profit would want to work with a city that has such strict requirements, just to get a resolution of support or non -opposition. Section 8 Program Pecan Place Apartments Heritage Oaks Apartments 940/383-1504 940/484-9535 9401383-1506 1225 Wilson St. • Denton, Texas 76205 •940583-•3039 • Fax 9401484-8804 E-mail. s8@dentonhousingauthority.com Q Denton Housing Authority As we explained to you, this is a very competitive process on the state level and there is no guarantee any application will be approved. Your Policy will goa any attenr t by DHA to even submit an application. This year Council approved resolutions for two 9% Applications from Developers (only if they did not partner with DHA) and neither of these applications was approved. Note: Council denied the application with the developer who partnered with DHA. The more applications a city can get on the table greatly improves its chances of being awarded limited tax credits to develop affordable housing. The losers are the people in need of affordable housing. The City was awarded credits in the 9% round in 1996, then not again until 2004 when DHA replaced the old Phoenix Apartments in southeast Denton. The next time an award was received was in 2011, and this was a rehab of an existing property. The Policy must include the City's policy/plans for affordable housing, as outlined in the Consolidated and Action Plan, Affirmatively Furthering Farr Housing Plan, or any other policy or plan that addresses affordable housing. And this Policy must be consistent with these Plans, and what you submit to the federal government for awards of CDBG & HOME funds. The Policy must define the City's definition of "financial investment in the community". If you are looking for a dollar amount, the Policy must state that amount. If you have programs or initiatives that the City would like funded, the policy should also state this. The requirement to get letters of support from school districts, county government, and neighborhood associations is another unnecessary barrier and only feeds the "Not In My Backyard" (NIMBY) associated with LIHTC development. The US Senate and House have introduced related bills, Affordable Housing Credit Improvement Act of 201 e7 that would prohibit local approval or support. These bills have broad support from across the nation, with bipartisan support in both chambers. The explanation being that these types of provisions can result in the unintended consequence of giving local governments "veto power" over projects, as withholding support could result in the project not getting funded, especially in high opportunity areas such as Denton. The intent of this provision is to prevent "Not In My Backyard" (NIMBY) opposition from interfering with tax credit development. Senator Orrin Hatch, the bill co-sponsor stated in opening statements at a Finance Committee hearing on Increasing Access to Affordable Housing on August 1, 2017: "...guiding principles for tax reform ... the principles are: Fairness, efficiency, simplicity, and American competitiveness." ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,n„n,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,-...,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,............................. Section 8 Program Pecan Place Apartments Heritage Oaks Apartments 940383-1504 9401484-9535 9401393-1506 1225 Wilson st.. - Denton, Texas 76205 - 9401383 3039 - Fax 9401484-8804 E-mail: sB@dcntonhousingauthority.com 0 Denton Housing Authority As discussed with you, the Policy should also separate the 9% applications from the 4% applications. They are two different programs with different timetables and requirements. Although I do believe there should be some kind of request process, I do not feel that recreation of the state application process is the answer. 1 believe that the zoning process already fully vets a development and addresses a lot of the duplicative questions in your proposed policy and application. The zoning process allows public comments and citizen input, and a much fairer process than what you have proposed. I believe that this draft should be tabled until the City has done its own study of affordable housing, so you will better understand the need, availability, and resources available, and then develop a Policy. 1 feel that what you have now is only a deterrent to stop affordable housing in the city of Denton. Thank you for the opportunity to comment on your draft policy and application and I appreciate your willingness to listen. I hope that you will take all these comments into consideration and understand that they come from a place of passion for the families we serve and knowledge of the need in our community. X Sherri .d. Chief Executive Officer Denton section 8 Program Pecan Place Apartments Heritage Oaks Apartments 9401383-1504 940/484-9535 9401383-1506 1225 Wilson St.. ® Denton, Texas 76205.9401383.3039 • Fax 940/494-8804 -mail: s8@�dentonhousingauthoriry.com City of Denton City Hall �215 E. McKinney Street DENTON R, Denton, Texas www.cityofdenton.com AGENDA INFORMATION SHEET DEPARTMENT: City Manager's Office CM/ DCM/ ACM: Todd Hileman DATE: October 10, 2017 SUBJECT Receive a report, hold a discussion, and give staff direction regarding a policy and application process to review housing tax credit requests. BACKGROUND The Texas Department of Housing and Community Affairs (TDHCA) offers a Housing Tax Credit program as one of the primary means of directing private capital toward the development and preservation of affordable rental housing for low-income households. Typical projects include apartment complexes, rental townhomes, mixed -income and mixed-use properties, supportive housing for those with special needs, and independent living facilities for seniors. There are two types of Housing Tax Credit programs available: a 4% (non-competitive) and a 9% (competitive) program. Both programs have unique features and rules; however, in general, current policy from the TDHCA requires that developers receive resolutions of support or no objection from the municipality in which the project is located. In May 2017, the City Council considered two 4% housing tax credit (HTC) requests from a developer, Ojala Holdings, in partnership with the Denton Housing Authority (DHA). Through this review, Council requested staff to research how other municipalities consider HTC requests and if a review process could be implemented to provide for a thorough review of proposed projects and set clear deadlines for the applicant to meet. On June 27, 2017, staff briefed the City Council after researching processes used by other municipalities and presented a draft application and policy for discussion. DISCUSSION At the June 27, 2017 work session, Council provided feedback on the application and asked if staff could develop a point system to evaluate the applications. Staff also stated they would review a draft with the Denton Housing Authority (DHA) to ask for their comments. Staff met with representatives from the DHA to review the goals of implementing an application for HTC requests, which include establishing expectations with applicants, increasing transparency, and streamlining the review process of projects for Council. Staff provided the application and policy and the DHA provided some general feedback at the meeting, as well as followed up with a letter the following week (Exhibit 4). Although the DHA opposes any city process being instituted, staff listened and tried to incorporate some of their feedback where possible. Staff generally revised the application and policy as follows: • Condensed the narrative questions and checklist to streamline the format and submittals; Eliminated some duplicate questions that would be addressed through planning & zoning submittals; and • Recommended adjusting to have the 9% applications on a deadline but allowing the 4% applications to be reviewed throughout the year. DHA provided feedback that the 9% credit has a deadline process from TDHCA, but 4% credits can be applied for throughout the year and if a 9% is denied, a 4% application may be sought. Staff also went back and reviewed the policies of other municipalities— the majority had a deadline for the 9% but not for the 4%. In addition, staff reviewed other municipal applications and brainstormed if a point system could be implemented. The City of El Paso has such a system assigning points by categories based upon the City's stated value statements and affordable housing policies. However, staff could not find other examples of assigning points in other cities and had challenges trying to brainstorm due to the potential subjectivity and not having a policy document off of which to base evaluation or scoring categories. Staff is recommending two options to Council: • Option 1 (Implement General Application and Policy) — This would be the baseline option to launch the application process and list general factors/considerations that the Council may consider. This would be beneficial to get the process in place, learn from experience, and revisit next year. Staff has regrouped the general factors into 4 areas and would provide an analysis/summary of the application. Option 2 (State Policy Preferences) — Although there are challenges in developing a point system now, the City Council could go a step further to state policy preferences. This is done in other cities such as Houston and Arlington (Exhibit 5). Some examples could be those projects that pay property taxes, projects that serve a certain population (e.g. senior housing or homeless), projects that have a certain ratio of affordable and market rate units, projects that redevelop an existing property, etc. Please note that TDHCA sets policy for the Housing Tax Credit program annually. There is a possibility that TDHCA could change their requirements or evaluation criteria and no longer require a resolution of support or no objection from the municipality in the future; however, there is no indication the process will change in the near term. PRIOR ACTION/REVIEW (Council, Boards, Commissions) Staff presented a draft application and policy to review requests of support for housing tax credits to City Council on June 27, 2017. STRATEGIC PLAN RELATIONSHIP The City of Denton's Strategic Plan is an action -oriented road map that will help the City achieve its vision. The foundation for the plan is the five long-term Key Focus Areas (KFA): Organizational Excellence; Public Infrastructure; Economic Development; Safe, Livable, and Family -Friendly Community; and Sustainability and Environmental Stewardship. While individual items may support multiple KFAs, this specific City Council agenda item contributes most directly to the following KFA and goal: Related Key Focus Area: Safe, Liveable & Family -Friendly Community Related Goal: 4.5 Provide support to citizens in need through social service agencies and programs EXHIBITS 1. Agenda Information Sheet 2. Presentation 3. Revised Draft Application and Policy 4. Letter from DHA 5. Research Respectfully submitted: Sarah Kuechler Assistant to the City Manager Barbara Ross Community Development Manager DRAFT - 10/10/17 City of Denton Housing Tax Credit (HTC) — Request for Support 2018 POLICY Policy Statement: To meet the housing and development objectives of the City of Denton, it shall be the City's policy to analyze projects requesting support for proposed Housing Tax Credits (HTC). Such analysis is to determine if the projects comply with certain principles and policies in the City's Denton 2030 Plan, as well as various other master, strategic, and redevelopment or neighborhood plans adopted by the City of Denton. The goal of this analysis is to (a) establish if HTC projects merit local support, and (b) prioritize HTC submissions if more than a single proposal is received during an evaluation period. The Office Development Services Department, serves as the City's primary staff and point of contact for all HTC programs. Evaluation Criteria: The City of Denton is committed to the goal of improving the quality of life in the City, its neighborhoods and for its residents. As part of this commitment to a comprehensive community development and improvement program, the City supports the development of decent, safe, sanitary, and affordable housing options that provides full and equal access to all persons. Therefore, in general, the City of Denton will use, but not be limited to the following criteria and preferences in evaluation of projects for consideration of City support: 1. Maximize affordable units in the community • Provision of both tax credit and market rate units • Impact on existing affordable housing and multi -family housing in a the neighborhood • Development serves seniors and workforce as well as priorities for other special populations 2. Improves the quality of housing and neighborhoods • Development pays property taxes or show an financial investment in the community • Development revitalizes existing housing through renovation or acquisition and revitalization • Provide for access supportive services demonstrated through provision of or proximity to community resources — schools, libraries, public facilities, nonprofits, health care and food security, etc. • Availability of and impact on public transit service 3. Inclusiveness with surrounding neighborhood • Letters of Support - Involvement and support from local stakeholders and neighborhood organizations; o Neighborhood Association ( if applicable) o School District o County (If Development will be Tax Exempt) 4. Meets City Comr�rehensive Planni • Alignment with the Comprehensive Plan, Future Land Use Map, zoning and other master, strategic, and redevelopment or neighborhood plans adopted by the City. • Quality of design and construction • Impact on City infrastructure • Demonstrated development team experience • Any other factor relevant to the best interest of the City (includes consideration for fair housing) DRAFT - 10/10/17 City of Denton Housing Tax Credit (HTC) — Request for Support 2018 POLICY Required Information: Before a project will be evaluated by the staff, each applicant requesting support must submit the City of Denton's HTC Request for Support application with all attachments. The application and list of required documents are available on the City's website at www.cit�ofdenton.com. Annual Schedule: The City of Denton will establish and announce each year an annual schedule of deadlines and other dates of importance for consideration of City support for LIHTC projects. The schedule is available on the City's website at www.cit�ofdenton.com. Meeting with City Staff: No less than one meeting with the applicant, developer, sponsor, and relevant City staff will take place to discuss the proposed project in general, and any issues and concerns identified in the application in particular. Presentation to City Council: The Applicant will be requested to give a presentation to the City Council regarding their proposed project. Presentations will generally be scheduled during a City Council Work Session in the month of February. Substantial Changes: Should a project which receives support from the City have a substantial change including, but not limited to, the following before the start of construction, the Developer must notify the City of Denton in writing and request a new commitment of support: • Number of units • Number of Affordable Units or Affordability period • Type of units • Target population • Amenities • Type of construction • Developer / sponsor / owner • Final site development plan Administration of the HTC Program: The HTC program in the State of Texas is administered by the Texas Department of Housing & Community Affairs. The City of Denton has no responsibility for application approval for HTC projects or for the administration of the HTC program. Development Review: Consideration of the applicant's request for a Resolution of Support or a Resolution of No Objection in no way impacts the City's rights to approve, disapprove, or modify the developers proposed site plans or to modify the zoning for the proposed development. ,t Imawa DENTON City of Denton DRAFT - 10/10/17 Housing Tax Credit (HTC) - Request for Support 2018 Application Please note: The City of Denton reserves the right to deny applications that do not coincide with the City's Housing Tax Credit Support Instructions and Policy, various strategic and master plans, or policy direction from the Denton City Council. Before a project will be evaluated, each applicant requesting support must submit a completed application with all attachments in accordance with the timeline prescribed herein. 1. PROJECT INFORMATION Leeal Name of Developer/Entity Name of Proposed Development Physical address of the project Census tract # Council District # School District Project type: ❑ General ❑ Elderly []Supportive Housing -Special Populations Applicant Role: ❑ Owner ❑ Developer ❑ Other (list below): Housing Tax Credit application for: ❑ 9% HTC ❑ 4% HTC Applicant is requesting Council Resolution: ❑ of Support ❑ Stating No Objection Is the property: ❑ New construction ❑ Renovation ❑ Acquisition/Redevelopment Total number of units: *Single Room Occupancy 2. APPLICANT INFORMATION Name City ST ZIP Telephone Contact person Contact Telephone Contact Email DUNS #: Federal Tax ID# For Developers and Partners, check all that apply: ❑ For Profit ❑ Nonprofit ❑ Public Housing Authority Page 1 of 3 # of Total Units # of Market Rate Units # of Affordable Units #30% #60% #80% $Estimated Rent # SF of Each Unit SRO* 11311 2 BR 3 BR Total Units 0 0 0 0 0 % of Total 0.0% 0.0% 0.0% 1 0.0% Length of Affordability on the Project: *Single Room Occupancy 2. APPLICANT INFORMATION Name City ST ZIP Telephone Contact person Contact Telephone Contact Email DUNS #: Federal Tax ID# For Developers and Partners, check all that apply: ❑ For Profit ❑ Nonprofit ❑ Public Housing Authority Page 1 of 3 ,t Imawa DENTON City of Denton DRAFT - 10/10/17 Housing Tax Credit (HTC) - Request for Support 2018 Application In the last ten years: Have you developed other Housing Tax Credit projects? ❑Yes ❑No If yes, please list project names and addresses: Have you developed other affordable housing projects? ❑Yes ❑No se list project names and addresses: 3. PROJECT NARRATIVE & ATTACHMENT CHECKLIST A project narrative and attchements must be attached to this application and briefly address, at a minimum, each of the following items: a. ❑ Preliminary Site Plan - Provide a preliminary site plan for the proposed project; b. ❑ Location map "all" multi -family developments highlighting affordable housing within two miles of the proposed site, c. ❑ Census tract map with site identified; d. ❑ Letter of zoning verification or status of rezoning request from the City - Include a letter from the City of Denton's Development Services Department verifying that the current zoning of the site for the proposed project is compatible with the anticipated use, or include documentation verifying that a request to change current zoning has been submitted e. ❑ Support and/or opposition from community - Describe the impact the project is anticipated to have on surrounding neighborhood and involvement and support from local stakeholders and neighborhood organizations; include a list of stakeholders and neighborhood associations contacted. Attach all letters of support or opposition to your project: I. ❑A projected loss of property taxes (to each taxing entity and in total) over the 15 -year period, and include assumptions and i. ❑ Letter of support and/or opposition from the neighborhood association; ii. ❑A copy of the fiscal year budget and strategic plan of the public housing partner; ii. ❑ Letter of support and/or opposition from the school district(s); iii. ❑A detailed plan clearly showing how project revenues will be distributed, including uses by the public housing partner and community contributions and investments. iii. ❑ Letter of support and/or opposition from the County (if project will be tax exempt) f. ❑ TDHCA self score - Please attach TDHCA Application g. ❑ Describe tenant population(s), restrictions (e.g. income or age restrictions) and access to supportive services demonstrated through provision of or proximity to community resources — schools, libraries, public facilities, nonprofits, health care and food security, public transit etc. if any, to be provided to or made available to residents; h. ❑ Provide a list of basic amenities and unit amenities proposed for the project; I. ❑ Describe the project's quality of design and construction; j. ❑ Demonstrate the project's compatibility and alignment with the priorities stated in the City's Comprehensive Plan, Future Land Use Map, Consolidated Plan, and any other applicable master, strategic, and redevelopment or neighborhood plans adopted by the City of 4. FINANCIAL NARRATIVE & ATTACHMENT CHECKLIST A financial narrative for the project must be attached to this application. Please address, at a minimum, each of the following items including following attachments: a. ❑ Project pro forma and plan for public housing partner and Community b. ❑ Annual Audit and if public housing partner, fiscal year budget c. ❑ Describe the taxable status of the development. Indicate whether the development will be paying property taxes or if the development will be tax exempt; d. If tax exempt, provide: I. ❑A projected loss of property taxes (to each taxing entity and in total) over the 15 -year period, and include assumptions and ii. ❑A copy of the fiscal year budget and strategic plan of the public housing partner; iii. ❑A detailed plan clearly showing how project revenues will be distributed, including uses by the public housing partner and community contributions and investments. Page 2 of 3 ,t Imawa DENTON City of Denton DRAFT - 10/10/17 Housing Tax Credit (HTC) - Request for Support 2018 Application 5. SUBMISSION INFORMATION The Development Services Department serves as the City's primary staff and point of contract for all TDHCA programs. Completed applications should be submitted to: Before a project will be evaluated, each applicant requesting support must submit a completed application with all attachments. City of Denton 2018 Important Dates for 9% Request for Support*: January 2018: Application Deadline February 2018: Presentation from Applicant(s) at City Council Work Session March 2018: Consideration of Resolution(s) at City Council Meeting *Housing Tax Credit 4% Request for Support will complete the some steps above but may be submitted year-round. Applicant must attend all City Council meetings where these Resolutions are discussed. Staff will inform the applicant, using the e- mail addresses provided, of the meeting dates as soon as they are determined. CERTIFICATION The applicant/developer certifies that the data included in this application and the exhibits attached is true and complete to the best of my knowledge. The statements are made for the purpose of obtaining a resolution or resolutions from the Denton City Council. I understand that false statements may result in forfeiture of benefits and possible prosecution by the City Attorney. Legal Name of Developer/Entity Authorized Officer Signature Title Date Page 3 of 3 Denton Housing Authority September 14, 2017 City of Denton Sarah Kuechler Assistant to the City Manager 215 E. McKinney Street Denton, TX 76201 Re: Low Income Housing Tax Credit (LIHTC) • Request for Support 2018 Policy Dear Sarah, Thank you for meeting with myself, staff, consultant, and a member of our Board of Commissioners on September 6, 2017 regarding your draft of a LIHTC Policy. We shared with you our concerns of the impact this policy would have on the affordable housing community and specifically Denton Housing Authority (DHA). Since we did not receive a copy of this draft prior to this meeting, we could only provide you a brief response. I was a little surprised by this, especially since you had already met with City Council in June. This Policy is a barrier to affordable housing in the city of Denton, especially for DHA. This policy will unfairly target minority, disabled, and elderly families who are in the most need for affordable housing and will hinder DHA's efforts to provide affordable housing to these vulnerable populations. At a time when affordable housing is a luxury for some, many poor families struggle to make enough to afford rent, even here in the City of Denton. In Texas, a minimum wage worker has to work 93 hours per week in order to afford a modest two-bedroom apartment. (Sources: 2014 American Community Survey, National Low Income Housing Coalition's Out of Reach 2014) Non-profit developers such as DHA should not be required to "pay to play" in order to develop affordable housing in Denton, when state law, not the whim of the council, has determined that a housing authority is a political subdivision of the state and therefore exempt from property taxes. Just like UNT, TWU, school districts, counties, etc. This Policy only recreates the LIHTC application process already in place by the state and requires the expenditure of unnecessary dollars at a time when funding from federal agencies have been drastically reduced. The majority of the questions will require work from attorneys, architects, engineers, consultants, costly studies (i.e. traffic impact, market, environmental, etc.) that in most cases would not be required until further along in the state application process. No developer, private or non-profit would want to work with a city that has such strict requirements, just to get a resolution of support or non -opposition. Section 8 Program Pecan Place Apartments Heritage Oaks Apartments 940/383-1504 940/484-9535 9401383-1506 1225 Wilson St. • Denton, Texas 76205 •940583-•3039 • Fax 9401484-8804 E-mail. s8@dentonhousingauthority.com Q Denton Housing Authority As we explained to you, this is a very competitive process on the state level and there is no guarantee any application will be approved. Your Policy will goa any attenr t by DHA to even submit an application. This year Council approved resolutions for two 9% Applications from Developers (only if they did not partner with DHA) and neither of these applications was approved. Note: Council denied the application with the developer who partnered with DHA. The more applications a city can get on the table greatly improves its chances of being awarded limited tax credits to develop affordable housing. The losers are the people in need of affordable housing. The City was awarded credits in the 9% round in 1996, then not again until 2004 when DHA replaced the old Phoenix Apartments in southeast Denton. The next time an award was received was in 2011, and this was a rehab of an existing property. The Policy must include the City's policy/plans for affordable housing, as outlined in the Consolidated and Action Plan, Affirmatively Furthering Farr Housing Plan, or any other policy or plan that addresses affordable housing. And this Policy must be consistent with these Plans, and what you submit to the federal government for awards of CDBG & HOME funds. The Policy must define the City's definition of "financial investment in the community". If you are looking for a dollar amount, the Policy must state that amount. If you have programs or initiatives that the City would like funded, the policy should also state this. The requirement to get letters of support from school districts, county government, and neighborhood associations is another unnecessary barrier and only feeds the "Not In My Backyard" (NIMBY) associated with LIHTC development. The US Senate and House have introduced related bills, Affordable Housing Credit Improvement Act of 201 e7 that would prohibit local approval or support. These bills have broad support from across the nation, with bipartisan support in both chambers. The explanation being that these types of provisions can result in the unintended consequence of giving local governments "veto power" over projects, as withholding support could result in the project not getting funded, especially in high opportunity areas such as Denton. The intent of this provision is to prevent "Not In My Backyard" (NIMBY) opposition from interfering with tax credit development. Senator Orrin Hatch, the bill co-sponsor stated in opening statements at a Finance Committee hearing on Increasing Access to Affordable Housing on August 1, 2017: "...guiding principles for tax reform ... the principles are: Fairness, efficiency, simplicity, and American competitiveness." ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,n„n,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,-...,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,............................. Section 8 Program Pecan Place Apartments Heritage Oaks Apartments 940383-1504 9401484-9535 9401393-1506 1225 Wilson st.. - Denton, Texas 76205 - 9401383 3039 - Fax 9401484-8804 E-mail: sB@dcntonhousingauthority.com 0 Denton Housing Authority As discussed with you, the Policy should also separate the 9% applications from the 4% applications. They are two different programs with different timetables and requirements. Although I do believe there should be some kind of request process, I do not feel that recreation of the state application process is the answer. 1 believe that the zoning process already fully vets a development and addresses a lot of the duplicative questions in your proposed policy and application. The zoning process allows public comments and citizen input, and a much fairer process than what you have proposed. I believe that this draft should be tabled until the City has done its own study of affordable housing, so you will better understand the need, availability, and resources available, and then develop a Policy. 1 feel that what you have now is only a deterrent to stop affordable housing in the city of Denton. Thank you for the opportunity to comment on your draft policy and application and I appreciate your willingness to listen. I hope that you will take all these comments into consideration and understand that they come from a place of passion for the families we serve and knowledge of the need in our community. X Sherri .d. Chief Executive Officer Denton section 8 Program Pecan Place Apartments Heritage Oaks Apartments 9401383-1504 940/484-9535 9401383-1506 1225 Wilson St.. ® Denton, Texas 76205.9401383.3039 • Fax 940/494-8804 -mail: s8@�dentonhousingauthoriry.com Research on Low -Income Housing Tax Credit Request Policies CITY POLICY HIGHLIGHTS Waco • Establishes a process for review for requests, but does not identify what factors it might be evaluated on (no criteria • Asks that applicant submit a number of items through one application package listed) • Procedures: Low income Housing Tax Credit Application Procedures Temple • Goal of analyzing projects requesting support is to (a) establish if LIHTC projects merit local support and/or funding assistance and (b) prioritize LIHTC (General submissions if more than a single proposal is received during an evaluation evaluation period criteria) • A list of general evaluation criteria is stated with an application required; project narrative section include a list of questions that will help the city analyze against the general evaluation criteria • Specify that if a projects receives support and/or funding assistance and a substantial change is made before the start of construction, the developer must notify the City and request a new commitment of support • Policy and Application: http://www.ci.temple.tx.us/232/Low-income-Housin- Tax-Credit Sherman • Substantially the same as the City of Temple in both the policy and application • Policy and Application: https://www.ci.sherman.tx.us/1031/LiHTC-Polio (General evaluation criteria) Bexar County • A list of general factors is stated; including target population to be served, consistency with plan documents, if the project is off the property tax rolls, (General community support, and more evaluation • An application is required; including information on the development team, criteria) request being made, project information, project characteristics, site information, and a number of attachments including a basic pro -forma • Policy and Application: http://www.bexar.org/2054/TDHCA-Housing-Tax- Credits Houston • Instructions list priorities for the City in reviewing LIHTC requests: o Major renovation of older multi -family properties (Priority o Revitalization of the Community Revitalization Areas (CRAB) and CRA considerations Outreach areas funded in part by the State of Texas Disaster Relief listed) Program Round 2 ("DR2 Program") o Construction of housing for large families (3 or more bedroom units) • Policy and Instructions: http://www.houstontx.ov/housing/instructions for Support Resolutions 201 7. df Arlington • A one-page policy statement listing general evaluation criteria and preferences: o The proposed developer has a track record of developing and managing (Priority high quality LIHTC housing considerations o The proposed project should be consistent with Comprehensive & listed) Consolidated Plans o The proposed project should use energy-efficient, sustainable building materials o The City has a preference for new development of senior housing or redevelopment of senior and/or workforce housing o The City has a preference for local experience constructing and owning/managing well-maintained, quality properties • Community Development and Planning staff evaluate the developer's proposal using these criteria as well as applicable city ordinances and make a recommendation to the Community and Neighborhood Development Committee as to whether the proposed project should be reviewed by City Council Fort Worth • Separate policies for 4% and 9% requests that are reevaluated at least annually • Policy for 4% (Thresholds to o A development must have one of the following for a resolution of no meet) objection: ■ 10% of total units dedicated for Rental Assistance Demonstration project (RAD); OR ■ 5% of the total units set aside as Permanent Supportive Housing (PSH) units and a minimum of five percent of the total units set aside as market rate o The Council may also consider support for 4% applications: that are public private partnerships between a developer and a public entity, that provide affordable housing for seniors, or that provide affordable housing for households making at or below 30% percent on area median income (AMI) • Policy for 9% o A development must have a minimum of five percent of the total units are dedicated as market rate units and it has met one the following: ■ 10% of total units dedicated for Rental Assistance Demonstration project (RAD); OR ■ 5% of the total units dedicated as Permanent Supportive Housing (PSH) units • A basic initial screening application is required Plano • Applicants must meet at least 4 of the 6 threshold questions and be deemed financially stable in order for staff to give a recommendation of support or no (Thresholds to objection to Council: meet) 1. Addresses a housing need in Consolidated Plan for HUD programs 2. Applicant has experience with Plano on building or maintaining affordable housing or a letter of support from a municipality 3. Development is within 0.5 miles walking distance of DART transportation or a high opportunity area 4. At least 25% of units are market rate units (preference for mixed income developments) 5. Redevelops a multifamily complex or underperforming development 6. Includes at least 4 energy efficient or sustainable build components from a list • Separate applications for 4% and 9% requests • Application and Policy: httES://www.nlano.gov/DocumentCenter/View/20285 EI Paso • Adopted a timeline, evaluation criteria, and a point system based upon the City's Value Statements for 9% HTC applicants seeking City financial support. 4% HTC applicants and requests are accepted on a rolling basis throughout the year (Specific . The criteria categories are as follows: criteria and o Maximize affordable housing units within the City with whatever scoring for 9%) combination of projects produces the most affordable housing units given allocation of funds for the region; o Support breaking the cycle of poverty and supporting upward mobility by either directly providing or facilitating availability of social services; o Residents given an opportunity for inclusiveness and afforded an opportunity to access public services; o Local presence and long-term accountability in EI Paso; o Meets City smart growth initiative as set out in Plan el Paso. • 2012 I._ow Income 1-1ousing.Tax.Credi s..Re Uest.for..IM.Uni.i al.R sol.Ution ... • Evaluation Criteria on s_3_nd 4 ..........................................................................................(................12 g... ...........................) Denton Housing Authority November 16, 2017 Bryan Langley Deputy City Manager/Chief Operating Officer City of Denton 215 E. McKinney Street Denton, TX 76201 Dear Mr. Langley, Attached and enclosed please find the documents requested for the joint meeting with the Council scheduled for December 4, 2017. I have enclosed: A list of DHA Board Members A list of DHA Properties DHA Board meeting minutes from September 2016 to present Monthly financial statements from January 2016 — August 2017 DHA approved budgets for fiscal years 2013 to present Audits for fiscal years 2014 2016 Please let me know if you have any questions about any of the material or information. We would like to request the use of a meeting room to conduct the DHA Board meeting if possible. We will need to open our meeting, then join the Council, and continue the DHA meeting. Please let me know if this is possible. Thank you for your patience in getting you these documents, and if I have missed anything please let me know. Sin er ly, Sherri McDade Chief Executive Officer Section 8 Program Pecan Place Apartments Heritage Oaks Apartments 940)383-1504 940484-9535 940/383-1506 1225 Wilson St. • Denton, Texas 76205 •940/383-3039 • Fax 940)484-8804 E••maiL s81( dcntonhousingauthoritycom 1� DENTON HOUSING AUTHORITY BOARD OF COMMISSIONERS Dr. Kathryn Stream Appointed March 2009 Term 2016-2018 Dr. Kathryn Stream moved to Denton in 1980. From 1982 until 2008, she lived in Denton and worked in Houston. In 2008 she retired as Senior Vice President of the Texas Medical Center in Houston and returned to Denton full time. She was chosen as a member of Leadership Texas and later served by appointment of the Governor of Texas to a six year term on the Board of the Teacher Retirement System. She currently serves as Chair for the Denton Housing Authority Board of Commissioners. Sheryl English Appointed November 2014 Term 2015-2017 Sheryl English has been in the Real Estate industry for nearly 30 years. She relocated from Los Angeles, California to Denton in 2002. Ms. English has worked in commercial real estate and property management, as well as currently selling residential real estate. She also has a mobile notary company. Ms. English is a mother of 3, best- selling author and community leader. She serves on various boards and committees throughout the City of Denton. Ms. English currently serves as Vice Chair of the Denton Housing Authority Board of Commissioners. Bill Giese Appointed July 2000 Term 2016-2018 JW "Bill" Giese is a retired Accountant and University Professor. Dr. Giese has volunteered and served on various boards and committees in Denton. He currently serves as Treasurer of the Flow Health Care Foundation, is a member of the Behavioral Health Leadership Team and Commissioner (former Chairman) for the Denton Housing Authority Board of Commissioners. Salty Rishel Appointed January 2012 Term 2015-2017 Walter "Salty" Rishel has a background in sales and construction. Mr. Rishel has owned and operated Distinct Designs Construction since 1986. He has served on various boards and committees in Denton- Denton Electrical Board, Planning and Zoning, Denton Animal Shelter, Kiwanis Club to name a few. Mr. Rishel currently serves as Commissioner for the Denton Housing Authority Board of Commissioners. Beverly Bryant Appointed August 2017 Term 2017-2019 Beverly Bryant settled in Denton in 2001. She attended American Commercial College and graduated with a certification as a Computerized Administrative Assistant. In 2005 she earned her certification as a Certified Professional Coder. Ms. Bryant has been employed as a Patient Account Specialist with Navigant Cymetrix for 12 years. She has volunteered in the community for several years assisting with food drives, blood drives, adopting local families every holiday season and organizing trash pickup for annual community service week. Ms. Bryant joined the Denton Housing Authority Board of Commissioners in August 2017. DENTON HOUSING AUTHORITY PROPERTY LIST NOVEMBER 2017 .......... .......... Property Address Description 2501 N. Bell -Heritage Oaks .... . . . ...... . 302 S. Locust Pecan Place ..... ................................................... . . . ................................ . 1225 Wilson St DHA Office 1224 E. Hickory Renaissance Courts . ..... . . ...... . ........ ... _ . ........... . ..... . .. . ..................................................... . .... . . . . . . . . ............. 117 W. Sycamore .......................................................... . ..... . ............ . ............ . ...... . .......................... . ... . ... . ..................... . . .... . Commercial ........ . . . ......................................................................... 301 S. ElmCommercial ......... .309 S. Elm . . ..................................................................................... . ......................................... Downtown Property 313 S. Elm ............................ Downtown Property 317 S. Elm Downtown Property ..... . ......... 321 S. Elm Commercial 401 S. Elm . .............................................................................................................................................................. . ............. Downtown Property . . ............................................................................................... 1005 Wilson Vacant Lot ... ............................. ...... . . . . . . . . . . . . . . _­,", 10Wilson U9 09 . ............ . . . .................... . . Vacant Lot .............. 1340 Morse Vacant Lot . 2329 Hinkle . . ........... . ........... . . Vacant Lot Housing Authority of the City of Denton Minutes for the Special Called September Work Session Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, September 20, 2016 at 12:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 12:00 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Bill Giese, Commissioner Salty Rishel, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistance to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Accounting Manager Cynthia Richards, Eligibility Specialist Ramon Guajardo, Development Consultant Il. OPEN FORUM No speakers were present III. CAPACITY- DENTON HOUSING AUTHORITY Ms. McDade went over the newly proposed DHA Organizational Chart and focused on positions that are being proposed to add for 2016-2017. Ms. McDade stated that she is proposing to add a Deputy CEO, an additional Admin Assistant, Asset Specialist (this position would assist with compliance of DHA properties), Accounting Clerk (this position would assist the Director of Finance with payroll and accounts payable), Mobility Specialist (DHA applied for funds from HUD to pay for this position, which would assist clients search for units), additional Maintenance Tech, and a Heritage Oaks Manager. Ms. McDade stated that we would also add a new Eligibility Specialist to replace the staff person that performs those duties now due to her transferring into a Case Specialist position. She also stated that we would like to make the Summer Youth positions (2) permanent as well. Ms. McDade stated that these new positions would allow us to operate DHA more efficiently and to bring in some additional staff to assist with the development side. Chair Stream asked for the dollar amount that will be added to the budget for these new positions. Commissioner Giese stated that it is approximately $319,000 in salaries. Chair Stream asked why we need an additional Maintenance Tech. Ms. McDade stated that the Maintenance Department is stretched with work orders and make readies at the Main Office, Pecan Place and Heritage Oaks, as well as maintaining the other rental properties owned by DHA. Page 1 of 4 Chair Stream asked the Board to give their current thoughts on the addition of these new positions. Commissioner Giese stated that Ms. McDade cannot be expected to do everything, and he thinks that the Organizational Chart is appropriate and the Board should give her the authorization to make needed changes (with guidance from the Board). Commissioner Rishel stated that he believes we have been operating with a very lean number of staff. He thinks we will continue to grow and he supports where we are going with the changes, but he would like to see some comparables from other PHA's about what they are spending on administrative fees. Ms. McDade stated that it is difficult to compare DHA to other housing authorities because most HA's do not do development (especially those operating only Section 8), but she can attempt to do so. Chair Stream expressed concern for the dollar amount of the salaries and relying on the money from development to pay those salaries. Vice Chair English stated that she had some concerns and would like to see job descriptions for the new positions. She stated that she thinks the Organizational Chart is top heavy and adds a lot of additional salaries to the budget. She stated that she is not opposed to it, but would like to see a bit more information. Ms. McDade stated that she will bring the Board a more detailed budget at the next meeting. Ms. McDade stated that the Board was provided a printout of available cash as of July 31, 2016. She stated that this is money available to DHA for development or special programs. Ms. McDade stated that last year we set up a program to help with security deposits and application fees. Commissioner Giese stated that he believes DHA should maintain approximately $600,000 in cash (90 day supply). Ms. McDade told the Board that the Attorney is still working on the information regarding the sale of the properties that the Board approved for sale back in July. The Board agreed that they would like to see some movement on this sooner, rather than later. Ms. McDade stated that the Board was provided a chart showing the projected income from development. There was some discussion about Renaissance Courts and the time frame remaining before the option to purchase„ Chair Stream stated that we need to determine what reserves we will need to purchase the property and funds to maintain it. There was some discussion about assuming the loan, rather than having to have cash on hand to purchase the property. Mr, Guajardo stated that the earlier you can negotiate a buy-out the lower the exit taxes will be. He stated that if there is a significant amount of exit taxes (over $100,000), we could probably be in a position to refinance again and roll the exit taxes into the loan. He stated that the limited partner may want to exit before the 15 years, if they have gotten all of their benefit from the deal, and it couldn't hurt to have some discussion with them about their position. Ms. McDade stated that we will be having a Renaissance Courts Public Facility Corporation meeting next week to further discuss their finances. IV. REVIEW OF CURRENT DHA PROGRAMS AND PROPERTIES Chair Stream asked for an update on Real Waves Radio and the car lot that we are currently renting property to. Ms. McDade stated that Real Waves Radio have been making some improvements to the building and their lease will start on October 15'. Ms,., McDade stated that Paul Hamilton Motors has been paying increased rent to cover the property taxes, and our maintenance staff restriped the parking lot, Ms. McDade stated that Giving Hope requested a reduction in rent due to their loss of funding. She stated that their rent was $1400, and we agreed to reduce it to $1000.�month,. V. HOUSING NEEDS Ms. McDade stated that she wanted to provide some information regarding the needs of DHA (waiting list) and the City of Denton. Ms. McDade stated that she thinks the Board needs to discuss these needs, as well as what we see DHA's role being in housing the homeless. Page 2 of 4 There was a lot of discussion about options available to DHA to help in housing the homeless. The Board discussed project basing some vouchers at some of the new developments. Ms. McDade stated that there is a process that has to be gone through to project base vouchers. She stated that a RFQ has to be issued and applications can be received from several properties. So, there is no guarantee that the vouchers would go to a DHA owned or developed property. There was discussion about setting up special programs to assist with emergency and transitional housing. The Board had discussion about setting up a fund for a specific amount to assist with these types of housing and whether DHA would facilitate the program or contract with another community service provider that already provides that type of assistance, and DHA would provide the funding. Ms. McDade stated that if DHA funds the program, we will be able to set the guidelines. Ms. McDade stated that she will do some research about what other communities are doing and bring some more information back to the Board for further discussion. VI. TIMETABLE FOR CURRENT DHA OWNED PROPERTIES Ms. McDade summarized a previous recommendation from the Consultant that DHA keep Pecan Place and develop on the site, as well as keep Heritage Oaks land and rebuild. Ms. McDade stated that we are maintaining Heritage Oaks, but she suggests the Board make Heritage Oaks a priority. She stated that DHA did put out an RFQ for developer partners. Commissioner Rishel stated that the development team reviewed the three RFQs that were submitted. He gave an overview of the RFQs stating that two of them provided proposals to demolish and rebuild Heritage Oaks and one of them also included a proposal to demolish and rebuild Pecan Place. Ms. McDade stated that her recommendation is to ask the developers that responded to the RFQs to put together a proposal for Heritage Oaks specifically and bring back to the Board. The Board requested the full appraisal for Heritage Oaks. Ms. McDade stated the appraiser is working on it, and she will bring it back to them as soon as we receive it. Commissioner Rishel stated that he wants to see the appraised value of Heritage Oaks before deciding to develop or sell. Mr. Guajardo stated that he believes that Pecan Place is an excellent location for development. He stated that we could utilize state, federal, historical credit and housing credits on the existing building. Then, use 4% housing tax credits for construction of new units. The Board said that they do want to look at developing the lots around Pecan Place. They also want to confirm if Pecan Place is still committed to being an elderly property. Mr. Guajardo stated that he also recommends that we go back to the three developers that submitted an RFQ and ask for their best and final proposals. The Board concluded that they would like to see a complete appraisal of Heritage Oaks in the next 30 days and an answer on whether Pecan Place is still committed to being an elderly property. Ms. McDade stated that we would also ask the developers to submit their best and final proposals for Heritage Oaks, if interested. VII. NEW DEVELOPMENTS Mr. Guajardo stated that he would like some direction from the Board regarding how many more development deals they would like to see and in what time frame. He stated that he believes AMTEX will be coming back to the Board in the next month or two with more details about their proposed site. Chairman Stream stated that the Board needs to consider what they can reasonably manage. Commissioner Giese said that he thinks we should be receptive to new proposals that come in. He also stated that there is a limit to what the Board can do and what the staff can do. Commissioner Rishel stated that if DHA is going to ask the City to send all Page 3 of 4 interested developers through us, then we need to establish a percentage goal to fill the housing need in the community. Mr. Guajardo recommended going through with the presentation to City Council and taking the position that DHA is open to consider any proposal that is submitted and will look at each one individual,ly to determine demand, look at financing and management of the property and decide if we want to partner with them on a case by case basis. VIII, ADJOURNMENT Meeting adjourned at 2:50 pm Page 4 of 4 Housing Authority of the City of Denton Minutes for the September Meeting of the Board of Commissioners The meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, September 27, 2016 at 5:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:30 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistance to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Accounting Manager Tangela Caldwell, Director of Section 8 Barbara Ross, City of Denton Il. OPEN FORUM No speakers were present III. PRESENTATION OF FY 2014-2015 AUDIT: ROB SEAY Rob Seay (Hankins, Eastup, Deaton, Tonn & Seay) presented the FY 2014-2015 Audit. He stated that the audit went well and no issues or problems were found. Commissioner Rishel had a question regarding Acquisition of Capital Assets that went from $207,385 in 2014 to $500,994 in 2015 (page 10 of the report). Mr. Seay stated that he would get the detail and breakdown to Ms. McDade to pass on to the Board. In regard to Custodial Credit Risk (page 15), Mr. Seay stated that we had a total of 16 days last year where deposits exceeded FDIC insurance and pledged collateral. So, there was technically a little bit of risk. He stated that it appears the bank was taking a day to pull collateral over. Ms. McDade stated that she has already spoken to the bank about this and feels it has been taken care of. Mr. Seay stated that in regard to internal control over financial reporting, the results of their tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. In regard to compliance with major federal programs, DHA complied in all material respects with compliant requirements. IV. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: August 23, 2016 The above minutes were presented for approval. Motion was made by Commissioner Giese to approve the minutes for August 23, 2016 and seconded by Vice Chair English. b. Administrative Reports for August 2016: Sherri McDade Ms. McDade followed up with the Board regarding the preliminary appraisal values for Heritage Oaks and provided them with those numbers. The Board had some discussion, but agreed they Page T of 2 do want a full appraisal of Heritage Oaks, Ms. McDade stated that she also provided the Board with some information and a timeline for selling the DHA owned properties. Commissioner Rishel requested more detail in Ms. McDade's report in regards to meetings that are attended in the community. Ms. McDade introduced Tangela Caldwell, the new Director of Section 8. c. Financial Statements for August 2016 August Financials were provided in the Board packets. The Board had no questions or concerns... d. Approval of Resohition #09-16- To Approve Budget for FY 2016-2017 Resolution #09-16 was presented to the board for approval of the Budget for FY 2016-2017, Accounting Manager, Darlene Hattox presented the proposed budget. Mrs. Hattox gave an overview of DHA Income, New Positions, Salaries, DHA Benefits and each DHA program, The Board requested more detailed information about staff training and travel. Chainnan Stream stated that she would like to know what training DHA staff are attending in order to know that the travel and training budget are not excessive. Ms. McDade stated that she provided the Board with staff position descriptions, which includes the proposed new positions. Motion was made by Commissioner Giese to approve Resolution #09-16 and seconded by Commissioner Risher, The Resolution was approved by unanimous vote. V. ADJOURNMENT Meeting a4jouarned at 6:45 pm. Page 2 of 2 Housing Authority of the City of Denton Minutes for the October Meeting of the Board of Commissioners The meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, October 25, 2016 at 5:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:20 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Kristin English, Executive Assistance to the CEO Mattye Jones, Attorney Gary Henderson, United Way of Denton County Greg Sawko, United Way of Denton County Il. OPEN FORUM No speakers were present III. APPROVAL OF RESOLUTION #10-16- Amendment to the Purchase and Sale Agreement of 1710 Morse Street with United Way of Denton County Resolution 10-16 was presented to the Board for approval. Mr. Sawko, Chairperson United Way of Denton County, stated that they are requesting an amendment to the sales contract to allow more time to develop the property on Morse Street. He stated this is due to financing, City issues and recommendations from their Consultant to hold off until their capital campaign is wrapped up. Mr. Sawko stated that they are asking for an additional 12 months and that he anticipates possibly having to come back with an additional request for more time. Motion was made by Commissioner Giese to approve Resolution 10-16 and seconded by Commissioner Rishel. The Resolution was approved by unanimous vote. IV. PRESENTATION OF HERITAGE OAKS APPRAISAL- Chip Sargent The Board was provided with a hard copy of the Heritage Oaks appraisal. Mr. Sargent gave an overview of the appraisal. He stated that the value is placed at $5.1 million that reflects 134 units. He stated that he budgeted $10,000 per unit to renovate the down units (20 units) and $1004150,000 toward other site issues, such as drainage. He stated that Heritage Oaks is currently renting below market. He estimates the neighborhood market rent to be $650 per unit. The analysis provided considers renting at market. Since Heritage Oaks is renting below market, he states that it takes approximately a one year cycle to bring income to market levels due to staggering leases. Mr. Sargent stated that a 15% discount was applied to market income to reflect lease -up. Mr. Sargent stated that during the course of his research, he found that there is a high interest in apartments in Denton and a large market for this type of property, if the Board decides to sell. Page 1 of 2 V. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: September 20, 2016 and September 27, 2016 The above minutes were presented for approval. Motion was made by Commissioner Rishel to approve the minutes for September 20, 2016 and September 27, 2016 and seconded by Vice Chair English. b. Administrative Reports for September 2016; Sherri McDade Ms. McDade was not present at the meeting, The Board did not have any questions regarding her report at this time. The Board stated that they would like to meet as soon as possible in Executive Session to discuss the future of Heritage Oaks regarding whether to sell or redevelop and put a timeline in place. The Board also requested a report from staff that attended the presentation given at the City regarding tax credits available to historic properties. VI. ADJOURNMENT Meeting adjourned at 5:55 pm. Page 2 of 2 Housing Authority of the City of Denton Minutes for the Special Called December Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, December 20, 2016 at 5:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:29 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistance to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section 8 Barbara Ross, City of Denton Ramon Guajardo, Consultant Ramon Guajardo, Jr., Consultant II. OPEN FORUM No speakers were present III. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: October 25, 2016 The above minutes were presented for approval. Motion was made by Commissioner Rishel to approve the minutes for October 25, 2016 and seconded by Commissioner Giese. The minutes were approved by unanimous vote. b. Administrative Reports for October and November 2016: Sherri McDade Ms. McDade stated that she submitted the Section 8 Management and Assessment Certification (SEMAP) to HUD. This report is a management review of the Section 8 program. She stated that it is done throughout the year by checking files, voucher utilization and inspections. Ms. McDade stated that there were some technical issues this year with reporting to HUD's PIC system that created a lot of errors that needed to be fixed. She stated that overall she feels we performed a lot better this year. Ms. McDade stated the staff completed some research on Emergency and Transitional Housing available in Denton. She also discussed the Denton Supportive Housing Pilot that United Way is administering, in which transitional housing is provided for 10 individuals for one year with intensive case management. Ms. McDade stated that we are also researching the process of project basing some vouchers, which is a lengthy process involving HUD, and she will be bringing that information back to the Board. There was also some discussion about the Page 1 of 2 possibility of reopening the waiting list for the homeless population. Chair Stream expressed some concern about reopening the list and the new applicants being ranked higher than the current individuals that have been waiting on the list. Commissioner Giese stated that he thinks we need to partner with other agencies to administer an emergency and transitional housing program that includes wrap around services. He stated that DHA could fund the program. Ms. McDade stated that she recommends partnering with another agency, but make sure that we set the criteria and priorities. Commissioner Giese stated that he would prefer to gear the program toward families with dependent children. Ms. McDade asked if they preferred to set aside a set amount of money for the program, or set a number of families to help. Commissioner Giese suggested setting a specific number of families to assist, provide the funds for the rent and partner with United Way to provide the other services needed by the family. Ms. McDade stated that she would have a meeting with United Way staff and bring information back to the Board. Ms. McDade stated that the Mayor has requested some additional HUD VASH vouchers for us to assist the veteran population. Ms. McDade stated that we are extending the deadline to sell our rental properties. After running the ad in the newspaper, we did not receive any bids. She also stated that we have a staff person working on the information needed to apply for historical tax credits for Pecan Place and will be bringing that information, back to the Board. c. Financial Statements for September,, October, November 2016 Commissioner Giese had a question on October financials regarding the line item of Transfer Between Programs and Projects in the amount of $257,500.00 between Management Fund and DPFC. Mrs. Hattox explained that was money from The Veranda development that went into DPFC and transferred to Management Fund. There was some discussion about utilization. Commissioner Rishel asked Ms. McDade what her goals are for 2017. Ms. McDade stated to better utilize the voucher program and to put some services together for our clients to help them toward self-sufficiency. She also stated that she wants to get the Ready to Rent Program going to better train and equip our clients to be good tenants in the private market.. VI. ADJOURNMENT Meeting adjourned at 6:35 pm. Page 2 of 2 Housing Authority of the City of Denton Minutes for the Special Called January Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, January 31, 2017 at 5:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Sheryl English, Vice Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:06 pm. Commissioners Present: Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Commissioners Absent: Kathryn Stream, Chairman Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section 8 Barbara Ross, City of Denton Mattye Jones, Attorney Ramon Guajardo, Sr., Consultant H. OPEN FORUM No speakers were present III. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: December 20, 2016 The above minutes were presented for approval. Motion was made by Commissioner Giese to approve the minutes for December 20, 2016 and seconded by Commissioner Rishel. The minutes were approved by unanimous vote. b. Administrative Reports for December 2016: Sherri McDade Ms. McDade stated that the Section 8 voucher program is under a continued Resolution from the federal government that ends on April 28`'. She stated that she has not yet heard what the budget or funding is going to look like under the new administration. Ms. McDade stated that she will be getting some information back to the Board regarding some options for transitional housing. Ms. McDade stated that she received a notice that the Affirmatively Furthering Fair Housing may be cut by the new administration, and she will update the Board when she receives further information. Page 1 of 3 Ms. McDade stated that the bid process for the sale of DHA rental properties has been extended to February 14`'. Ms. McDade stated that the I" building is being projected to be complete on The Veranda in June. She stated that the Ieasing trailer should be up soon and she would like to market to the individuals on our waiting List and residents at DHA properties first. Ms. McDade stated that she has been asked by the City Council to do another presentation to talk about tax credits on February 7'h. She stated that Mr. Guajardo and Mrs. Jones will be present as well. Ms. McDade stated that part of the presentation will include our plans regarding the money we will receive from development and how we can give some of those fees back to the community. Commissioner Giese stated that he really does think we need to help improve the shelter. As part of Ms. McDade's report, she stated that she included Resolution 02-17- Support MOU for Regional Assessment of Fair Housing. Resolution 02-17- To Support MOU for Regional Assessment of Fair Housing was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 02- 17 and seconded by Commissioner Rishel. The Resolution was approved by unanimous vote. c. Financial Statements for December 2016 There were no questions or comments regarding December financial statements. IV. Executive Session Vice Chair English suspended the regular meeting at 5: 28pm to go into closed session pttrsttant to §551,071 of the Texas Government Code to seek the advice of its attorneys about a pending or contemplated litigation or about a settlement oyer; or to consult with its attorney on a matter in which the duty of its attorney tinder the Texas Disciplinary Rules or Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act andlor pursuant to §551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property, if deliberation in an open meeting would have a detrimental effect on the position of the Authority in negotiations with a third person; discussion with Consultant regarding development and/or pttrsttant to §551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or charge against any officer or employee, unless the officer or, employee who is the subject of the deliberation or hearing requests a public hearing. a. Consult with Attorney regarding MOU with Palladium USA, Inc. Vice Chair English reopened regular session at 6:47pm. V. Approval of Resolution 01-17 RESOLUTION AUTHORIZING DENTON HOUSING AUTHORITY TO (A) WORK COOPERATIVELY WITH PALLADIUM INTERNATIONAL USA„ INC. TO DEVELOP PALLADIUM DENTON (THE "PROJECT") BY NEGOTIATING AND ENTERING INTO A MEMORANDUM OF IJKDERSTANDING WITH REGARD TO THE PROJECT; (B) FOR THE FORMATION OF A TEXAS LIMITED PARTNERSHIP FOR THE PURPOSE OF OWNING THE PROJECT; .AND (C) SUCH OTHER ACTIONS NECESSARY OR CONVENIENT TO CARRY OUT THIS RESOLUTION. Resolution 01-17was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 01-17 as amended per discussion with our Attorney and seconded by Commissioner Rishel, The Resolution was approved by unanimous vote. Page 2 o1'3 There was discussion and a decision to move the regularly scheduled February Board Meeting to February 22`x. V]. ADJOURNMENT Meeting adjourned at 5:53 pm. Page 3 of 3 Housing Authority of the City of Denton Minutes for the Special Called February Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Thursday, February 9, 2017 at 3:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 3:07 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner arrived at 3:30 pm Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO Mattye Jones, Attorney II.OPEN FORUM No speakers were present III. Executive Session Chairman Stream suspended the regular meeting at 3: 09pm to go into closed session pursuant to ,551.071 of the Texas Government Code to seek the advice of its attorneys about a pending or contemplated litigation or about a settlement offer; or to consult with its attorney on a matter in which the duty of its attorney cinder the Texas Disciplinary Rules or Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act and/or pursuant to §551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property, if deliberation in an open meeting would have a detrimental effect on the position of the Authority in negotiations with a third person; discussion with Consultant regarding development and/or pursuant to §551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties, discipline, or charge against any officer or employee, unless the officer or employee who is the subject of the deliberation or hearing requests a public hearing. a. Consult with Attorney Chairman Stream reopened regular session at 4:06 pm. IV. Approval of Resolution 03-17 RESOLUTION AUTHORIZING THE CEO OF DENTON HOUSING AUTHORrrY (A) TO CREATE THE PREMIER DENTON PUBLIC FACILITY CORPORATION, A PUBLIC FACILITY CORPORATION, AND (B) ANY OTHER ACTIONS NECESSARY OR CONVENIENT TO CARRY OUT THIS RESOLUTION. Resolution 03-17 was presented to the Board for approval. Motion was made by Commissioner Rishel to approve Resolution 03-17 as presented with the noted edits to be made by the Attorney, Mrs. Jones, who will review all filed forms and make any changes referring to Ms. McDade as a Commissioner of the Board, rather than Secretary to the Board. Motion was seconded by Vice Chair English. Resolution was approved by unanimous vote as presented with noted edits to the Formation documents. Page 1 of 2 V. Approval of Resolution 04-17 RESOLUTION AUTHORIZING DENTON HOUSING AUTHORITY TO (A) WORK COOPERATIVELY WITH MV RESIDENTIAL, LLC TO DEVELOP RESERVE AT SHERMAN (THE "`PROJECT") BY NEGOTIATING AND ENTERING INTO A MEMORANDUM OF UNDERSTANDING WITH REGARD TO THE PROJECT; (B) FOR THE FORMATION OF A TEXAS LIMITED PARTNERSHIP FOR THE PURPOSE OF OWNING THE PROJECT; AND (C) SUCH OTHER ACTIONS NECESSARY OR CONVENIENT TO CARRY OUT THIS RESOLUTION. Resolution 0417 was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 0417 and seconded by Vice Chair English. The Resolution was approved by unanimous vote. VI. ADJOURNMENT Meeting adjourned at 4:17 pm. Page 2 of 2 Housing Authority of the City of Denton Minutes for the Special Called March Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Friday, March 10, 2017 at 9:00 am at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 9:00 am. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section 8 Cynthia Richards, Asset Compliance Specialist Mattye Jones, Attorney with Coats Rose Ramon Guajardo, Sr., Consultant Ramon Guajardo, Jr., Consultant II. OPEN FORUM No speakers were present III. DISCUSSION WITH MAYOR REGARDING DHA DEVELOPMENT City of Denton Mayor, Chris Watts, stated that he wanted the opportunity to have an open dialogue with the Board following the last City Council meeting. He stated that the Council is trying to monetize the request for Resolutions from the City by developers. The Mayor stated that due to the elimination of property taxes, the Council would like to know how the developer fees will be used to benefit the community. He stated that DHA had made a request to the City that all developers first come to the Housing Authority to be vetted. In light of that request, the Council wants to know how much revenue the Housing Authority will be getting and what DHA will be doing with all of the revenue. There was a lot of discussion about these developments being taken off the tax roles and that the income DHA will be receiving needs to be put back into the community. Ms. McDade stated that DHA provided audits, financial statements and budgets to the City Council as requested. Mayor Watts stated that Council requested that information in order to make an informed decision on the request to send all developers to DHA. He stated that Council was not satisfied with the answers of how the developer fees were going to be spent and maximized to benefit the community. Ms. McDade stated that the developer fees DHA will receive is over a 15 year period. She stated the numbers given to the Council in regard to how the developer fees were to be spent over that 15 year period were an estimate due to the impossibility of providing exact numbers. There was also discussion that without DHA as a Page 1 of 3 partner, the developers would pay the property taxes and take all of the developer fees and none of that money would be put back into the City. Ms. McDade stated that it is DNA's mission to provide affordable housing to the community and house the low income families on our program and waiting list. Attorney Jones clarified that DHA was before the Council because we wanted to be co - developers with the two developers that were asking for Resolutions of Support. She stated that DHA's request to have the City send all developers to DHA to vet deals was a separate request and issue that was not related to the current request. The Board agreed that the two were confusing the Council. So, DHA chose to take the policy request off the table until the current developers requesting Resolutions could be looked at by Council. Mayor Watts stated that all of this is a worthy conversation, and he thinks it was just bad timing. Chair Stream stated that she was surprised to learn that Council did not know that these developments were tax exempt. Mayor Watts stated that he does not know if the Council is currently able to distinguish between the request that DHA made to be "a clearing house" for development in the city and current requests from developers coming before the Council for Resolutions that DHA already has Memorandums of Understanding (MOU) with. He stated that the City Council has to look at the interest of the entire community. Chair Stream stated that the Board wants the City to know that the only project that DHA is currently needing support for is the Ojala project. She stated that the Ojala project has a senior development that is much needed in the community. Chair Stream stated that the Ojala project is the only project DHA is working on at this time. She stated that if the City wants to take on these projects and partner with developers to build affordable housing in the future, that the Board would be delighted because of the time and effort spent to get the deals done. Vice Chair English expressed her hopes that the City Council will continue to get educated on how the Housing Authority works and the mission of DHA in relation to the housing needs of the community. IV. UPDATE FROM OJALA REGARDING DEVELOPMENT Matt Vruggink from Ojala Holdings stated that they route all of their projects in other cities through the local Housing Authorities because they know the housing needs of the city. He stated that the current project (Standard and Hudson at Medpark) got through Planning and Zoning and will be coming up for zoning approval in the next month. Mr. Vruggink stated that Ojala has a MOU with DHA, which includes the Ad Valorem tax exemption and states that is a standard structure in the industry. He stated that the only way to make these deals work is to have the tax exemption or find 5-6 million dollars in soft money (CDBG or Home Funds), which he states is not available in Denton. Mr. Vruggink stated that Ojala has spent a lot of time, money and effort with DHA, and they are at a point that if the tax exemption is not going to be feasible they will have to pull the plug on the current affordable housing project and future projects in Denton, He stated that without the tax exemption, the deals will not work. Mayor Watts asked if Mr.Vruggink knows the amount of taxes that will be saved on the project. Mr. Vruggink stated that it is estimated at $350-$400,000 a year. Mr. Vruggink concluded that Ojala needs the City Council to approve a Resolution of Non Opposition for the Standard and Hudson at Medpark. He stated that he hopes the Council can separate this request with any policy requests in relation to DHA, and he will meet with every Council member to help educate them if needed. V. Executive Session Chairman Stream suspended the regular meeting at 9:48 am to go into closed session pursuant to §551„071 of the Texas Government Code to seek the advice of its attorneys about a pending or contemplated litigation or about a settlement offer; or to consult with its attorney on a matter in which the duty of its attorney under the Texas Disciplinary Rules or Professional Conduct of the Page 2 of 3 the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property, if deliberation in an open meeting would have a detrimental effect on the position of the Authority in negotiations with a third person; discussion with Consultant regarding development and/or pursttant to §551.074 of the Texas Government Code to deliberate the appointment, employment, evahtation, reassignment, ditties, discipline, or charge against any officer or employee, unless the ojjcer or employee who is the subject of the deliberation or (rearing requests a public hearing. a. Discussion of DHA's future Development Chairman Stream reopened regular session at 10: 15 am. VI. ACTION, IF ANY, RESULTING IN CLOSED SESSION DELIBERATION No action taken or recommendations in open session for a vote. There was discussion and a decision to move the regularly scheduled March Board Meeting to March 21" at 2 pm. Commissioner Giese stated that future regular meetings need to try and be on the regular date and time- 4"' Tuesday at 5 pm. VII. ADJOURNMENT Meeting adjourned at 10: 18 am. Page 3 of 3 Housing Authority of the City of Denton Minutes for the Special Called March Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, March 21, 2017 at 2:00 pm at the DHA Central Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 2:05 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner arrived at 2:16 pm Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section 8 Cynthia Richards, Asset Compliance Specialist Ramon Guajardo, Sr., Consultant Barbara Ross, City of Denton 11. OPEN FORUM No speakers were present III. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: January 31, 2017and Febntary 9, 2017 The above minutes were presented for approval. Motion was made by Vice Chair English to approve the minutes for January 31, 2017 and February 9, 2017 and seconded by Commissioner Giese. The minutes were approved by unanimous vote. b. Administrative Reports for January and February 2017: Sherri McDade Ms. McDade stated she provided the Board with the draft of the 2017 Annual Plan. She stated that she also provided Chapters 5 and 11 of the Administrative Plan. She explained that she has received notice from HUD that funding will be reduced and DHA may not have enough funding to pay for current vouchers, and they are working with us on ways to reduce utilization. She stated that one of the recommendations is to lower the occupancy standards to two people per bedroom. She stated that the occupancy standards are reflected in Chapter 5 of the Administrative Plan. Ms. McDade stated that Chapter 11 of the Administrative Plan focuses on Payment Standards and the recommendation is to lower payment standards to reduce the amount of HAP paid and prevent us from having to terminate families from the Section 8 program. Ms. McDade stated that these changes have been made available for public comment. They will be brought back to the Board for approval in May, if necessary. She stated that the federal budget expires on April 28a' and she is hoping to know what our funding will be and if changes are needed. Page 1 of 2 Commissioner Giese said that he has a copy of a letter from Monsignor King Outreach Center regarding raising funds for the shelter. He provided all of the Board with a copy of the letter and stated that he would like to see a discussion about making a contribution to the shelter on a future agenda. Mr. Guajardo, Jr. gave a report on the construction progress of The Veranda. He stated that the Community Center is 100% sheet rocked and they started texturing. The paint will be going on in 3 days and trim and cabinets will follow. He stated that they are on track for a May 22nd turnover date on the Community Room. Mr. Guajardo stated that building 12 will be the first building to come on-line, which is scheduled for the end of June. He gave an overview of progress on each building. He stated that the site is very clean and the construction progress is going well. Ms. McDade asked about the leasing trailer. Mr. Guajardo stated that they are still working with the City on the leasing trailer, as the City would like to see landscape completed around the location of the trailer. Ms. McDade stated that two leasing days have been scheduled. One day for Heritage Oaks and Pecan Place residents and another day for current participants and families on the waiting list. She stated that the management company will be taking pre - applications from anyone interested in moving to The Veranda. c. Financial Statements for January 2017 There were no questions or comments regarding January financial statements. Ms. McDade stated that February financial statements were not received in time to provide to the Board. d. Resolution 05-17- Approval of Renewal of Lease with Denton County Dental Clinic Resolution 05-17 was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 05-17 and seconded by Commissioner Rishel,., The Resolution was approved by unanimous vote. Commissioner Giese asked for clarification of future meeting dates and times, Ms. McDade stated that regular meetings are scheduled for the 4 I Tuesday of each month at. 5 pm, Commissioner Giese stated that he does not, have a problem with changes, but that we need to make sure that changes are convenient for every member of the Board. Vice Chair English suggested moving the regular meetings to 4 pm. The Board agreed that they would wait until a 5'h Board member is appointed to make any changes to the time. Ms. McDade stated that even if she is not available on regular meeting dates, the meeting could still go forward with other DHA management staff available for questions. Chair Stream stated that was a possibility, but not a probability,. IV. Adjournment Meeting was adjourned at 2:36 pm. Page 2 of 2 Housing Authority of the City of Denton Minutes for the Special Called March Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, April 18, 2017 at 5:00 pm at the DHA Main Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:00 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO LaToyia Brown, Administrative Assistant LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section 8 Cynthia Richards, Asset Compliance Specialist Barbara Ross, City of Denton II. OPEN FORUM No speakers were present III. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: March 10, 2017and March 21, 2017 The above minutes were presented for approval. Motion was made by Commissioner Rishel to approve the minutes for March 10, 2017 and March 21, 2017 and seconded by Vice Chair English. The minutes were approved by unanimous vote. b. Administrative Reports for March 2017: Sherri McDade Ms. McDade stated she provided the Board with information regarding the possible funding shortfall for the Section 8 program. Ms. McDade stated that she had a correction to make to her report that states the current federal budget expires on April 18, 2017 and should read April 28, 2017. Ms. McDade stated that all of the numbers are HUD's best estimate at this time, but those numbers are projecting a loss of 171 vouchers by the end of the year. That number is if we are funded at 94%. Ms. McDade stated that we will start working on the DHA budget in July. Ms. McDade stated that she provided a construction update on The Veranda in her report that was provided by our Consultant. She stated that she has a meeting scheduled with City of Denton staff on the 20`h to discuss the Ojala development. Commissioner Rishel asked Ms. McDade how the Housing Opportunity Through Modernization Act (HOTMA) will affect funding. Ms. McDade stated that it would affect administration, but not funding. Page 1 of 3 There was some discussion about a participant that held onto a voucher for almost a year without leasing up. Ms. McDade stated that she met with the participant and gave her 30 days to lease up. The participant decided to port to another county and found a unit to lease. Commissioner Giese wanted to make sure that this was a special case and not routine for a participant to hold onto a voucher for that long of a time. Ms. McDade stated that it was a special case. c. Financial Statements for February and March 2017 Ms. Hattox, Director of Finance, brought the income statement for Section 8 Program in March Financials (page 10) to the Board's attention. She stated there is an amount of $30,933.77 showing on line item of Bad Debt- Other. Ms. Hattox stated that this was misclassified by the fee accountant in February financials as income and corrected in March financials. Chairman Stream asked about a Construction in Progress Line item on the Combined Balance Sheet (page 3 of March financials) for $7,445.35 under Pecan Place, Ms. Hattox stated that anytime we make improvements, the fee accountant lists as Construction in Progress. This will accumulate through the fiscal year. Then, be reclassified as a Capital Improvement. Ms. Hattox stated that carpet and flooring have been replaced, as well as painting. Commissioner Rishel disagreed that those should be considered Capital Improvements. Ms. McDade stated that they would get some clarification from the fee accountant and auditor. Commissioner Rishel had a question regarding a Gain or Loss of capital assets for Section 8 in the amount of $5300.00 (page 10 of February financials). Ms. Hattox stated that was due to the sale of the van, d. Report from Commissioner Giese Regarding Agency Funding Commissioner Giese stated that there have been questions about whether we could use any funds to assist the homeless population. He stated that he requested that the Board be provided the Local Government Code, which he believes is important in determining that DHA has the authority to assist the homeless. Commissioner Giese wanted to talk about the sections that he believes are relevant to Denton and DHA. He specifically pointed out Sections 392.002 (9) relating to "persons of low income", 392.003 (1) relating to a shortage of safe and sanitary housing at rents affordable to persons of low income forcing them to live in unsanitary or unsafe housing, 392.004 Operation Not For Profit, 392.005 Tax Exemption, 392,006 Unit of Government; Governmental Functions, 392.011 (f) (1 and 2), 392.052 (c), 392.055 Rentals and Tenant Selection. Commissioner Giese stated that his conclusion is that we do not currently have the authority to help Monsignor King or the Salvation Army, but he thinks the authority can be granted prior to the next fiscal year budget. He stated that he believes that we should aid the homeless and that could be accomplished by designating funds to the homeless shelter. Commissioner Giese stated that DHA could adopt policies deemed appropriate to assist with the homeless problem in Denton. Chairman Stream stated that there are other agencies in Denton, such as Our Daily Bread, that serve the homeless. Commissioner Giese stated that other agencies do not have shelters and as he understands the government code assistance needs to be directed at homeless shelters. Commissioner Rishel stated that there needs to be policy and guidelines put in place to establish how funds can be spent and how much can be allocated to other agencies on an annual basis. He suggested a structure where agencies submit proposals to us each year that include their mission and what the funds would be used toward. He stated that his preference would be to purchase land or buildings for rent. Chairman Stream stated that we have to take into consideration future expenses, such as purchasing Renaissance Courts, before designating funds to other places. Ms. McDade stated that the current estimate to purchase Renaissance Courts is $1.2 million. Page 2 of 3 Vice Chair English stated that she is not in agreement with giving any funds at this time. She also stated that we need to look into this to make sure it would not be in violation of any HUD policies. Motion was made by Commissioner Giese to authorize the CEO to draft a Resolution stating the Board has the authority to designate funds to other agencies to provide services for DHA clients and seconded by Commissioner Rishel. Motion was approved with Commissioner English voting no. e. Update on DHA Development Ms. McDade stated that she has a meeting with City staff on the 20�h to discuss the Ojala development. Commissioner Rishel requested a list of the Housing Authorities that owe us money for ports. He would like to see who owes the money, how much and for how long has it been delinquent. Ms. McDade stated that she would get that report to him. IV. Adjournment Meeting was adjourned at 6:06 pm. Page 3 of 3 Housing Authority of the City of Denton Minutes for the May Meeting of the Board of Commissioners The meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, May 23, 2017 at 5:00 pm at the DHA Main Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:00 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section $ Cynthia Richards, Asset Compliance Specialist Ramon Guajardo, Consultant, Ramel Co. Ramon Guajardo Jr, Consultant, Ramel Co. 11. OPEN FORUM No speakers were present III. PUBLIC HEARING- 5- YEAR AND ANNUAL PHA PLAN Chairman Stream opened the hearing at 5:00 pm. No individuals were present. Hearing was closed at 5:01 pm. IV. UPDATE ON UNITED WAY OF DENTON COUNTY (UWDC) OFFICE BUILDING Lyle Dresher gave a quick update about the construction side of the UWDC office building. He stated they are currently in the site development and permit phase of the project. Mr. Dresher stated that the drainage issues have been resolved to the City's satisfaction. They will be ready to kick off construction when the capital campaign is complete. Ellen Painter gave an update about the campaign to raise money for the project. She stated they have received over $300,000 in significant pledges. She stated the community is behind this project, and they have approached other businesses that are expected to contribute approximately an additional $300,000. Ernie McCraw stated they learned early on that the community is proud of this project and they are very likely to get some large grants that will fund a large portion. He stated that by the end of summer they feel like they will have enough money raised to state the project will go forward. Bill Patterson stated that they have really been educating the community of all of the services provided by UWDC while trying to raise money, and they are getting a lot of positive feedback. All of the UWDC representatives stated that their packets and literature mention that DHA is a partner in this project and that it helps to sell the deal, as well as being a strong credibility factor for the grant writing process. Mr. McCraw stated that by the end of summer they should know for certain if they have been awarded the large grants. They stated they will come back in September or October to give the Board another update. Page 1 of 4 V. DEVELOPMENT UPDATE- MATT VRUGGINK, OJALA Mr. Vruggink was unable to be at the meeting, Ramon Guajardo gave the Board an update on the proposed Ojala development project. Mr. Guajardo stated that City Council denied the Resolution for the Standard, but approved the Resolution for the senior site, The Hudson. Ojala had previously stated that both projects had to be approved by City Council and constructed with tax credits. Mr. Guajardo stated that Ojala has now come back with another possible option that they are calling The PFC Model. Mr. Guajardo gave an overview of the comparison of this model to the previous 4% tax credit model. He stated that both properties would still be tax exempt and that the big difference comes on the financing side. He stated with the PFC Model the HUD construction loan would increase from $42 million to $50 million. Mr. Guajardo stated that the previous 4% tax credit model would have given the project a $21 million equity contribution., He stated that under the PFC model it is proposed that Ojala would bring $12 million of private equity into the project, and the investors will be looking at approximately a 15*% rate of return on their investment. Mr. Guajardo stated that, the rents would no longer be at 60% AMI as in the tax credit model. The PFC model has 50% of the units at 80% AMI and the other half of the units would be market rate„ He provided the Board with the projected rents for the PFC model. Mr. Guajardo stated that DHA would have received 35% of developer fee and 45% of cash flow under the tax credit model. He stated that the revenue projections to DHA with the new PFC model would generate $2A million for The Standard and $1.5 million for The Hudson. Mr. Guajardo stated that a big difference with this model is that those projections show that Ojala would sell their interest in the project at year 5 and DHA would get 15% � of those proceeds. For The Standard , that would equate to $1.5 million and for The Hudson $909,900. He stated that at the end of 15 years, DHA would have the right to buy the property for market value. Mr, Guajardo stated that he believes the numbers are negotiable and if the Board decides they may want to move forward with this new model, they will do some negotiating and try to improve those numbers. He stated that another idea would be to negotiate lowering some of the rents to make them affordable to the residents at Heritage Oaks. Commissioner Giese requested that a new market study be done to see if there is a demand for 80% AMI and market rate units in that area. He also expressed concern that the rents are not affordable enough to meet a need in the community and our clients. Mr. Guajardo agreed and said that DHA should request a market study. He stated that the additional revenue received from the sale of Oj ala's interest could be invested back into the community to assist the lower income families. Chair Stream asked if DHA would have any say in the investor that Ojala sold their interest to. Mr. Guajardo stated that language can be added that DHA have an opportunity to review and not unreasonably withhold approval of the new investor partner. There was some discussion about whether we should attempt to go back to City Council, which has new members, and present the 4% deal again. Ms. McDade stated that she does not believe there would be a different outcome. Mr. Guajardo stated that Ojala has expressed that they cannot wait much longer for a decision on this project before they have to cut their losses and move forward. Commissioner Giese stated that out of courtesy he thinks we need to let the City know that we are considering this new development structure. The Board gave direction to Mr. Guajardo to pursue this model and negotiate to maximize the revenue to DHA and to see if rents can be reduced below the 80% for the elderly site. They also want to make sure there is a demand to fill the units and assurance that there is no liability to the agency on the loan. VI. DISCUSSION AND ACTION ITEMS a. Approval ofMinutesu April 18, 2017 The above minutes were presented for approval,, Motion was made by Commissioner Rishel to approve the minutes for April 18, 2017and seconded by Commissioner Giese. The minutes were approved by unanimous vote. Page 2 of 4 Chair Stream asked if any clarification was received from Urlaub about the capital assets as discussed at the last meeting and if a list of housing authorities owing money to DHA was provided to Commissioner Rishel as requested at the last meeting. Ms. Hattox stated that there are HUD requirements as to how expenses are classified and that no changes can be made. Ms. McDade stated that she had the outstanding port balance report for Commissioner Rishel. b. Update on The Veranda- Ramel Company (this was moved up from letter f' on the agenda) Mr. Guajardo, Jr. gave an update on the construction progress of The Veranda. He stated that the project is approximately 60% complete. He also stated that the club house should be ready by the end of the week, and the first residential building (building 12) is scheduled for completion June 9,'. Commissioner Rishel inquired if any of the trees that were salvaged could be used in any way on the property. Mr. Guajardo said that he would check into that. Vice Chair English stated that she would like to be included in the next site visit. c. Approval of Resolution 06-17- Write Off Bad Debt at Heritage Oaks (moved up from letter d ) Resolution 06-17 was presented to the Board for approval. Motion was made by Commissioner Rishel to approve Resolution 06-17 and seconded by Commissioner Giese. The Resolution was approved by unanimous vote. d. Approval of Resolution 07-17- Write Off Bad Debt at Pecan Place (moved up from letter 'e ) Resolution 07-17 was presented to the Board for approval. Motion was made by Commissioner Rishel to approve Resolution 07-17 and seconded by Commissioner Giese. The Resolution was approved by unanimous vote. e. Administrative Reports for April 2017. Sherri McDade (moved down from letter 'b ) Ms. McDade discussed information regarding the shortfall on the voucher program. She stated that our June numbers should go down considerably, and she hopes we will be brought out of shortfall by HUD. Ms. McDade stated that the federal budget was approved and our HUD funding is estimated at HAP - 97.27% and Admin Fees at 75.7%. Ms. McDade stated that the 2017 Annual Plan was included in their packet and it will be brought back to the Board next month for approval. Ms. McDade stated that we have submitted two Resident Board Applications to the Mayor, but have not yet received a response. Ms. McDade addressed her request for clarification regarding the direction of the Board to create a policy for use of agency funds. She provided the Board with some options that they may be interested in designating funds toward: 1. Housing Pilot Program 2. RFQ process to address the needs of the community that could be administered by a 3"' party 3. Direct funding to shelters 4. Other. Ms. McDade asked for further direction from the Board on which of the options they would like more information on. Commissioner Giese and Chair Stream both stated they thought we needed a Resolution to allow them to designate funds to other agencies. Ms. McDade stated that she would need to create a policy for the Board to designate funds for specific programs, such as the options she provided. She stated that she needs to know which of those programs they are interested in so she can create the policy. Commissioner Giese stated that he does not believe they need a policy to detail particular projects, but a general statement that the Board can, if they choose to, designate funds to other agencies as related to our mission to support housing. Chair Stream stated that she would really like to get a Resident Board member sworn in to be included in these discussions. Commissioner Giese stated that there is a lot of discussion in our community about homelessness. He stated that he thinks we should create a subsidy program for families with young children needing rental assistance and other community resources. He stated that DHA doesn't need to administer the program, but needs to be involved and collaborate with other agencies to assist these families. Page 3 of 4 Chair Stream stated that she has some issues with bringing other agencies into the mix and losing our say in how the program is administered. She stated that the Board should have the authority to help other agencies, but should be careful about giving funds or subsidies directly to the homeless. She stated that there are several agencies in the community that support the homeless population and DHA"s mission is affordable housing. Commissioner Giese stated that he disagrees than homerless is not part of our mission, and he will continue to propose ways to meet some of the needs of the homeless. f. Financial Statements for April 2017 (moved down from letter 'c ) Commissioner Giese stated that he has reviewed the audit for Renaissance Courts and believes there is an accrued deferred management fee of $689,000 that will eventually be paid to DHA. Ms. McDade stated that we do receive a portion from them twice a year based on their cash flow. Ms. McDade stated that we need to schedule a Renaissance Courts Board Meeting in order to go into more detail. Commissioner Giese stated that the financials look pretty reasonable. He stated that he is a little concerned about the accrued compensated absences and that the numbers seem high. Ms. Hattox stated that reflects staff vacation time. Commissioner Giese had a question regarding an amount of $150,000 for Management Fund- line item Notes, loans & mortgages receivable. Ms. Hattox stated that was for the sale of the Morse Street land to United Way. Commissioner Rishel went back to Admin Reports and had a comment about the report from the Asset Compliance Specialist, Ms, Richards; He requested that she refrain from using the word "'I" in her report, rather use the word "we" to include the entire DHA team. Commissioner Giese stated that he is unsure if the reports need pronouns at all. The Board discussed having a Special Called Meeting on June 14'h at 5:00. Ms. McDade stated we would send an email and confirm with each of them. VII. ADJOURNMENT Meeting was adjourned at 7:17 pm, Page 4 of 4 Housing Authority of the City of Denton Minutes for the Special Called June Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Wednesday, June 14, 2017 at 4:00 pm at the DHA Main Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 4:00 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman arrived at 4:08 pm Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO LeMaya Woods, Director of Housing Darlene Hattox, Director of Finance Tangela Caldwell, Director of Section 8 Cynthia Richards, Asset Compliance Specialist Mattye Jones, Attorney Ramon Guajardo, Consultant, Ramel Co. Ramon Guajardo Jr, Consultant, Ramel Co. 11. OPEN FORUM No speakers were present III. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: May 23, 2017 The above minutes were presented for approval. Motion was made by Commissioner Rishel to approve the minutes for May 23, 2017 and seconded by Commissioner Giese. The minutes were approved by unanimous vote. b. Administrative Reports for May 2017: Sherri McDade Ms. McDade stated to the Board that we have contacted other housing authorities and requested that they absorb our clients, which some of them agreed to do. Commissioner Rishel asked for clarification from Ms. Richards about the training she attended in Dallas for the CBA's Power of Rent Reporting Pilot Summary and Findings. Ms. Richards stated that the goal is for management companies to report that residents are paying their rent in an effort to help boost their credit. Commissioner Rishel wants to know if this is something we can look into providing for our clients and residents. Ms. McDade stated that she would look into it and the possibility of doing this at our properties. Commissioner Rishel asked how the waiting list number decreased to 1021 applicants. Ms. Caldwell stated that letters were sent to all of the applicants on the waiting list, and that was the number that responded to the letter. Ms. McDade stated they were given approximately 90 days to respond before being removed from the waiting list. Commissioner Rishel asked why we were conducting zero income meetings on a monthly basis. Ms. McDade stated that it is in the policy and the number of fanulies has decreased since the meetings have started, which is an indication that it is working. Commissioner Giese asked for more information about the Valet Trash at Heritage Oaks. Ms. Woods stated that on a trial basis on Monday, Wednesday and Friday, the residents at Heritage Oaks can put their trash outside their door and Maintenance staff will pick it up and take it to the dumpster. Ms. McDade stated that they are seeing how it works on a trial basis before bringing the policy to the Board. Pagel of 2 c. Approval of Resohition 08-17- Approve Annual Plan Resolution 08-17 was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 08-17 and seconded by Vice Chair English. The Resolution was approved by unanimous vote. d. Approval ofResohition 09 -17 -Adopt Violence Against Women Act (VAWA) Policy Resolution 09-17 was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 09-17 and seconded by Vice Chair English. The Resolution was approved by unanimous vote. Chair Stream requested that DHA have Denton County Friends of the Family provide some updated training for staff in order to recognize possible signs of abuse with our participants. e. Update on The Veranda- Raniel Company Mr. Guajardo, Jr. gave a brief update on the construction progress of The Veranda. He stated that Building 12 has been completed and is waiting on the Certificate of Occupancy. He stated the building has a total of 10 units (8- three bedrooms and 2- four bedrooms). Mr. Guajardo, Jr. stated that Building 12 is 100°x"0 leased. He stated that he has walked the building and created a punch list. Mr. Guajardo, Jr. told the Board what kind of things he is looking for during the walk through. He stated that he did not find any major issues. Mr. Guajardo, Jr. stated that he sent the list to the contractors and heard back the following morning that they would start working on it f. Development Update No update given. IV. EXECUTIVE SESSION Chairman Stream suspended the regular meeting at 4:34 pm to go into closed session pursuant to §551,071 of the Texas Government Code to seek the advice of its attorneys about a pending or contemplated litigation or about a settlement offer or to consult with its attorney on a matter in which the duty of its attorney under the Texas Disciplinary Rules or Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act and/or pursuant to §551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or vahie of real property, if deliberation in an open meeting would have a detrimental effect on the position of the Authority in negotiations with a third person, discussion with Consultant regarding development and/or pursuant to §551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties„ discipline, or charge against any officer or employee, unless the officer or employee who is the subject of the deliberation or hearing requests a public hearing. a. Consult with Attorney regarding MOU with Ojala b. Consult with Attorney regarding Cooperation Agreement with the City of Denton Chairman Stream reopened regular session at 6.14 pm., V. ACTION, IF ANY, RESULTING IN CLOSED SESSION DELIBERATION No action taken. Vice Chair English wanted to recognize Commissioner Giese for having a building named after him at Denton ISD Central Services. The Board agreed to check their schedules to change the July Board meeting date from the 25"' to the I1 °i at dpm. Ms. McDade stated that we will send an email to the Board to confirm. VI. ADJOURNMENT Meeting adjourned at 6:17 pm. Page 2 of 2 Housing Authority of the City of Denton Minutes for the Special Called July Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Wednesday, July 11, 20I7 at 4:00 pm at the DHA Main Office, I225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 4:08 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman arrived at 4:08 pm Salty Rishel, Commissioner Bill Giese, Commissioner Others Present: Sherri McDade, CEO Kristin English, Executive Assistant to the CEO Mattye Jones, Attorney with Coats Rose Ramon Guajardo, Consultant, Ramel Co. Ramon Guajardo Jr, Consultant, Ramel Co. Barbara Ross, City of Denton H. OPEN FORUM No speakers were present III. PRESENTATION AND DISCUSSION WITH MAYOR CHRIS WATTS Chairman Stream stated that the Board thought it would be helpful to touch base with the Mayor to possibly get a view about what the City is thinking in regards to the Housing Authority. Mayor Watts stated that he wanted to meet because it seemed there may have been some confusion, concern and probably anxiety between the Board and the Council following the previous meetings regarding the affordable housing issue. He stated that the Council voted to support the senior component of our latest development effort, but did not support the family side. Mayor Watts stated that he has become aware, by reading the meeting minutes from the last DHA Board Meeting, that DHA may be moving forward with the development deal under a new structure that does not require City Council approval. He stated that when he realized the project would be 50% market and 50% affordable at 800% AMI, he thought that we were moving backward. Mayor Watts stated that he understands and supports that the Board is autonomous and they make decisions in the best interest of DHA's mission. He stated that he believes it is unfortunate that the Ojala project collided with policy discussions with the City Council and it became too difficult to separate the two. The Mayor stated that he has a concern with this type of project coming through the Housing Authority with a lower number of affordable units. Mayor Watts acknowledged that DHA already has properties that are not on the tax rolls. He stated that the perspective of affordability in Denton and the desire to have more affordable housing is a common goal of both DHA and the City. He sees a desire from DHA to move into a different paradigm from the federally funded voucher program to other avenues allowing DHA to increase revenue to offset a loss of HUD funding. Mayor Watts stated this is where DHA and the City can potentially diverge on certain interests (not the affordable housing interest). He stated that for instance if DHA has three development projects that will be off the tax rolls that savings could equate to $700,000-$800,000 a year. Mayor Watts stated the importance of that and if that is the path DHA is going down we should be cautious because developers only care about money, not affordable housing. He suggested that moving forward DHA should ask for set aside units that can be available for homeless and transitional housing initiatives that the City and United Way are trying to create. Mayor Watts stated that the City has zero units for transitional and homeless housing with wrap around services. Mayor Watts thinks it would go a long way if DHA asks our partnering developers for transitional housing set asides, especially if we are taking these properties off the tax rolls. Page 1 of 3 Mayor Watts stated that moving forward there will be people on the outside that look at the numbers and begin to question DHA because of the fact that we are taking the properties off the tax rolls. He stated that DHA should find a way to accommodate and meet other interests city wide. Mayor Watts stated the City doesn't really have an organization at this time to channel ideas through to create transitional/homeless units. He stated that DHA is in a position to contractually have the developers set aside some of those units in our developments moving forward. Mayor Watts suggested that if DHA decides to move forward with the Ojala project under the new structure, DHA should reach out to some council members and get their input even though it does not require their support. Commissioner Giese stated it was his understanding that the City Council voted against the family component of the development because they did not like the fact that it was being taken off the tax rolls. He stated that he believes it was due to a lack of understanding that tax credits are a viable way to build more affordable housing. Commissioner Giese stated that if the council had fully understood that the tax exemption is embodied in a state law and that DHA is tax exempt on all projects, the vote may have had a different outcome. He stated the rejection was quite a disappointment. Commissioner Giese stated that DHA is already looking into ways that we can fund some subsidies, on a pilot basis, that will benefit the homeless and transitional housing. He stated that it is DNA's mission to improve affordable housing and move forward. Commissioner Rishel stated that DHA can develop a revenue stream by doing development and put funds back into the community. I le stated that the City has to allow DHA to build that revenue stream. Commissioner Rishel stated DHA will build quality affordable housing and provide services to the residents and community. He stated that DHA needs the leverage to work with developers, but until the City of Denton develops a heart for the homeless and people that are less fortunate than they are... Mayor Watts interrupted Commissioner Rishel and stated that his comments were inappropriate. He stated that it was way out of line to accuse him and the City of Denton of not having a heart for the homeless. Mayor Watts stated that he will talk about policy and strategy, but Commissioner Rishel's rhetoric is not going to promote a working relationship with the City. Vice Chair English stated that a massive amount of non -profits are a part of the Denton County Homeless Coalition. She stated that everyone is aware of the homeless issue and to say that the City is not aware or onboard is unfair. Commissioner English stated that the City is very passionate about the homeless population. Mayor Watts stated the policies are written, funds from private corporations for rent subsidies are in place, as well as the agencies to provide services, but the problem is there are no units. Commissioner Rishel stated that his point was if DHA had a revenue stream, we could be leaders in that process. Mayor Watts stated that he doesn't disagree with that, but during meetings with the Council there was no money shown to put toward community projects. All of the funds were reserved to purchase Renaissance Courts and making up for HHD funding cuts. Mayor Watts stated that DHA's heart for affordable housing is very evident. He stated that there are ways that the City and DHA can work together on common interests, and if DHA can work with developers to set aside units, they will provide the wrap around services and all of those kinds of things. Mayor Watts stated that the need from his perspective as Mayor is that we need units for people who are in crisis with little to no money. He stated he knows we have an affordability issue, but we have a really big issue with people who are one crisis away from being homeless. Commissioner Giese requested that the Mayor appoint a Resident Commissioner from the two applicants that have been submitted for the vacant spot on the DHA Board. Mayor Watts stated that he would get that done. Page 2 of 3 IV. EXECUTIVE SESSION Chairman Stream suspended the regular meeting at 4:57 pm to go into closed session pursuant to §551.071 of the Texas Government Code to seek the advice of its attorneys about a pending or contemplated litigation or about a settlement offer, or to considt with its attorney on a matter in which the duty of its attorney under the Texas Disciplinary Rules or Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act and,°or pursuant to §551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property, if deliberation in an open meeting would have a detrimental effect on the position of the Authority in negotiations with a third person; discussion with Consultant regarding development andlor pursuant to §551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, duties, discipline,. or charge against any officer or employee, unless the officer or employee who is the subject of the deliberation or hearing requests a public hearing. a. Consult with Attorney regarding MOU with Ojala b. Consult with Attorney regarding Cooperation Agreement with the City of Denton Chairman Stream reopened regular session at 5:24 pin V. ACTION, IF ANY, RESULTING IN CLOSED SESSION DELIBERATION No action taken. VI. ADJOURNMENT Meeting adjourned at 5:26 pm. Page 3 of 3 Housing Authority of the City of Denton Minutes for the August Meeting of the Board of Commissioners The special called meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Wednesday, August 22, 2017 at 4:00 pm at the DHA Main Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Sheryl English, Vice Chairman of the Board of Commissioners for DHA, called the meeting to order at 4:04 pm. Commissioners Present: Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Beverly Bryant, Commissioner Absent: Kathryn Stream, Chairman Others Present: Sherri McDade, CEO Darlene Hattox, Director of Finance Kristin English, Executive Assistant to the CEO Ramon Guajardo Jr, Consultant, Ramel Co. Barbara Ross, City of Denton 11. OPEN FORUM No speakers were present III. SWEARING IN OF NEW BOARD MEMBER- BEVERLY BRYANT Kristin English, Executive Assistant to the CEO at DHA, swore in new board member, Beverly Bryant, for a two year term. Mrs. English also notarized all of the necessary documents. Commissioner Bryant shared a bit of her background with the Board. IV. DISCUSSION AND ACTION ITEMS a. Approval ofMinules: June 14, 207 and July 11, 2017 The above minutes were presented for approval. Motion was made by Commissioner Giese to approve the minutes for June 14, 2017 and seconded by Commissioner Rishel. The minutes were approved by unanimous vote. Motion was made by Commissioner Rishel to approve the minutes for July 11, 2017. Commissioner Giese asked that these minutes reflect that Mayor Watts does not have the authority to make the statement about DHA funding being reserved to purchase Renaissance Courts (page 2, paragraph 5) The approval was seconded by Commissioner Bryant. The minutes were approved by unanimous vote with the understanding that the previous minutes were reviewed to verify the statement made by Mayor Watts and Commissioner Giese's disapproval of that statement. The minutes were reviewed and found to be a correct reflection of the statement made by Mayor Watts. The statement was referring to the information provided to council regarding the intended use of funds to be earned from the Ojala project. Mayor Watts was stating that the information provided by DHA did not reflect any funds being put toward community projects, but were reserved for the purchase of Renaissance Courts and to make up for HUD funding cuts. b. Administrative Reports for June and July 2017: Sherri McDade Commissioner Giese asked for clarification on the first paragraph of Ms. McDade's report regarding shortfall status. Ms. McDade stated that HUD expected to see our HAP payments go down with the reduction in utilization. Commissioner Giese stated that it should read that HUD did not see a significant reduction of HAP payments, rather than expenses. Ms. McDade stated that she would like for the Board to go see a new development in Ft. Worth based on the "Housing First Model". She stated that they remodeled a run- down development for the homeless and Pagel of 3 brought in a supportive housing program to work with the residents. Ms. McDade stated she will schedule an appointment to tour the property if the Board and perhaps Barbara Ross would like to go. Ms. McDade stated that we have a meeting scheduled with United Way to discuss possible future partnerships. Commissioner Rishel asked for an update on construction of the new United Way office building. Ms. McDade stated that they are coming along and continue to raise money. She stated they are getting close to hiring a construction company. c. Financial Statements: May, June and July 2017 Commissioner Giese stated that if we are not going to use our available cash right away it should probably be invested. Ms. McDade stated that staff are working on an Investment Policy and will be bringing it to the board after the first of the fiscal year. d. Draft of FY 2017-2018 Budget Commissioner Giese commented that Ms. Hattox has done an excellent job on the budget and it is easy to read. Mrs. Hattox, Director of Finance, gave an overview of the draft budget. She stated that the number of vouchers we are leasing has decreased and the administrative (admin) fees for those vouchers has decreased as well, because of those decreases we will be losing approximately $266,000 in admin fees earned. Mrs. Hattox stated that HUD will no longerseparate the admin fees for VASH vouchers. That number is now absorbed into the Section 8 admin fees earned. Ms. McDade wanted to clarify that we were receiving about 75 cents per unit and now we are anticipating getting 70 cents. Ms. Hattox stated that we currently have over 100 port -ins, which means we are administering another housing authority's voucher. She stated that we only earn 80% of the admin fee on those ports. She stated that it is very difficult to try to estimate the amount for next year because we do not know the number of port -ins we will receive. Mrs. Hattox stated that we don't anticipate the income changing for Heritage Oaks,. She stated that we will still have the same number of units next fiscal, year. Mrs. Hattox stated that there is approximately a $12„000 change in income for Pecan Place. She stated that this is due to an increase in rent at Pecan Place. Mrs. Hattox stated that Management Fund is still getting approximately $33,000 for rental properties that include the radio station, car lot and Giving Hope. She stated that Section 8 pays Management Fund for renting space in the main office. She stated that we also get a Management Fee of 7% of the income from Heritage Oaks and Pecan Place, which shows an increase of about $2,000 from the increased rents at Pecan Place. Mrs. Hattox stated that we anticipate receiving approximately $150,000 Asset Management Fee for Renaissance Courts and $27,000 Bond Issuance fee for The Veranda,,, She stated when The Veranda is 100/0 leased up (expected around July 2018), DHA will receive approximately $743,000. Ms. McDade stated that Mrs. Hattox could hit some highlights on the expenses, but that they really looked at expenses across the board on all programs and took them to the bare minimum. She stated that she will talk to the board possibly next month about salaries and benefits. Commissioner Rishel wanted to know where the big decrease in salaries was coming from. Ms. McDade stated that we didn't refill some positions primarily due to the Section 8 budget„ Commissioner Giese stated that some salaries are allocated. He stated that he asked for a separate line showing allocations and this should give a clearer picture of salaries. Commissioner Rishel said the other big difference looks like a decrease in legal expenses by $30,000. Mrs. Hattox stated that was reduced to reflect the fact of the Ojala deal not coming to fruition. She also stated that we are anticipatinga, decrease in office expenses. She stated we received new copy equipment and renewed the lease, which brought the cost down by $200 a month at the main office and $150 a month at Heritage Oaks. Mrs. Hattox stated that we also renegotiated some other contracts that will save us money, as well as simply cutting back on ordering office supplies. Commissioner Rishel asked how often we review our contracts. Ms. McDade stated we take a look at contracts at least once a year. Contracts are for different lengths of time- some for 1 year and some for 5 years. She stated that Mrs. Hattox is really good at keeping up with the contracts. Commissioner Rishel asked if we are giving staff enough training and education needed to do the best job they can do. Mrs. Hattox stated that she in fact left a conference to attend the board meeting. Page 2 of 3 Commissioner Giese expressed concern about the decrease in Section 8 salaries and being short staffed. Mrs. Hattox stated that changes were made to that since the draft was printed. She stated that the difference is only $20,000. Ms. McDade stated that they will get them an updated copy. Ms. McDade stated that even with the funding cuts the Section 8 program has cash to operate. She stated that she certainly doesn't want to cut staff. Commissioner Giese wanted to point out that the budget does not show any salary increases. He stated that Ms. McDade will probably give them a recommendation as to what she wants to do with personnel salaries, and the board would make the decision regarding Ms. McDade's salary. He stated that will have an effect on the budget. e. Approval ofAmaunt of Nan -Federal Funds to Designate for Programs and Services Motion was made by Commissioner Giese to designate $250,000 for programs and services and seconded by Commissioner Rishel. Commissioner Rishel stated that he would like to see a policy with an application process. Vice Chair English stated that she would like to see a scholarship set aside for children of Section 8 participants. Commissioner Giese stated that he thinks the scholarship is a good idea, but thinks that should be a separate allocation. Commissioner Bryant asked what type of programs the board is going to allocate the money toward. Commissioner Giese gave a background of previous discussions. He stated that examples would be Salvation Army, Monsignor King Shelter, Our Daily Bread, assistance toward transitional housing, partnership with United Way. Ms. McDade stated that we would be taking DHA funds and designating them to help families that may not be on our Section 8 program. She stated that the board will approve an amount to designate each year based on the budget. Commissioner Bryant stated that she does not agree with using the funds for non -Section 8 participants. She stated that she thinks the funds need to be designated for DHA clients. Commissioner Giese stated that the funds would be used to support and provide services for individuals who are in need of housing. Ms. McDade said that we have discussed getting individuals off our waiting list and possibly helping them with some wrap around services, training, childcare, etc. and have discussed those individuals being single parents who need services. The motion was approved by 2-1 vote, with Commissioner Bryant voting no. f. Approval of Resolution 10-17- Board Authority to Designate Non -Federal Funds Resolution 10-17 was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 10-17 and seconded by Commissioner RisheI. The Resolution was approved by unanimous vote. g. Update on The Veranda- Ramel Company Mr. Guajardo, Jr. gave a brief update on the construction progress of The Veranda. He stated that the Club House, buildings 12, 1 and 4 have all been completed. He stated that framing has been completed in buildings 9 and 10. Mr. Guajardo, Jr. stated that buildings 6 and 8 are in progress of being sheet rocked. He stated that most resources have been pulled to focus on building 10 (the large 4 story). Mr. Guajardo, Jr. stated that 64% of total hard and soft costs have been billed. He stated that he did include a punch list for building 4 so the Board can see some items that he is focusing on. Vice Chair English asked about the blinds in the units. Mr. Guajardo, Jr. stated they are i inch metal blinds. Vice Chair English stated that the board did not agree to metal blinds. She stated that the blinds were supposed to be faux wood in the units. Mr. Guajardo, Jr. stated that he would check on that. Mr. Guajardo, Jr. presented some pictures of building 4 to show the progress from start to finish. V. EXECUTIVE SESSION No Executive Session VI. ACTION, IF ANY RESULTING IN CLOSED SESSION DELIBERATION No Executive Session VII. ADJOURNMENT Meeting adjourned at 5:36pm Page 3 of Housing Authority of the City of Denton Minutes for the September Meeting of the Board of Commissioners The meeting of the Denton Housing Authority (DHA) Board of Commissioners was held Tuesday, September 26, 2017 at 5:00 pm at the DHA Main Office, 1225 Wilson St. Denton, Texas. I. CALL TO ORDER Kathryn Stream, Chairman of the Board of Commissioners for DHA, called the meeting to order at 5:07 pm. Commissioners Present: Kathryn Stream, Chairman Sheryl English, Vice Chairman Salty Rishel, Commissioner Bill Giese, Commissioner Beverly Bryant, Commissioner Others Present: Sherri McDade, CEO Darlene Hattox, Director of Finance LeMaya Woods, Director of Section S Kristin English, Executive Assistant to the CEO Ramon Guajardo Jr, Consultant, Ramel Co. II. OPEN FORUM No speakers were present III. EXECUTIVE SESSION Chairman Stream suspended the regular meeting at 5:08 pm to go into closed session pursuant to §551.071 of the Texas Government Code to seek the advice of its attorneys about a pending or contemplated litigation or about a settlement offer, or to consult with its attorney on a matter in which the deity of its attorney under the Texas Disciplinary Rules or Professional Conduct of the State Bar of Texas clearly conflicts with the Open Meetings Act and/or pursuant to §551.072 of the Texas Government Code to deliberate the purchase, exchange, lease, or value of real property, if deliberation in an open meeting would have a detrimental effect on the position of the Authority in negotiations with a third person; discussion with Consultant regarding development andl"or pursuant to §551.074 of the Texas Government Code to deliberate the appointment, employment, evaluation, reassignment, ditties, discipline, or charge against any officer or employee, unless the after or employee who is the subject of the deliberation or hearing requests a public hearing. a. Update on development b. Personnel matters regarding CEO Chairman Stream reopened regular session at b: 00 pm. IV. ACTION, IF ANY, RESULTING IN CLOSED SESSION DELIBERATION Motion was made by Commissioner Giese to direct the CEO to suspend negotiations with Ojala Holdings and seconded by Vice Chair English. The motion was approved by unanimous vote. Motion was made by Commissioner Rishel to direct the CEO to contact a realtor about putting DHA owned properties on the market and seconded by Commissioner English. The motion was approved by unanimous vote. Motion was made by Commissioner English to extend the contract with Ramel Company, LLC for 6 months effective 7/1/17 and seconded by Commissioner Rishel. The motion was approved by unanimous vote. Page 1 of 3 V. DISCUSSION AND ACTION ITEMS a. Approval of Minutes: August 22, 2017 The above minutes were presented for approval. Motion was made by Commissioner' Rishel to approve the minutes for August 22, 2017 and seconded by Vice Chair English, The minutes were approved by unanimous vote. b. Administrative Reports for June and July 2017.• Sherri McDade Ms. McDade stated that she provided information for two change orders regarding The Veranda. She also reminded the Board of the VEP Tour of The Veranda on November 90, at I Iam.. Commissioner Giese asked when we will get a response on the shortfall application, Ms. McDade stated that we will know after our October 151 Housing Assistance Payment (HAP) run. Then, submit our check register and HUD will make a determination at that time. Ms. McDade stated that she would like for United Way of Denton County (UWDC) to present the 2017 Community Needs Assessment to the Board. She stated that she will schedule for them to come to a future board meeting. Ms. McDade stated that she is still working on the supportive services policy. She stated that LJWDC is willing to work with us on that fund of money. Ms. McDade stated that the Board had previously expressed interest in setting aside funds for scholarships. She stated that she would like to set up a scholarship fund through the school foundation in order to keep it as confidential as possible, Ms. McDade stated that she hopes to have a draft policy to the Board in October. Commissioner Rishel asked for some more details regarding the meeting staff attended regarding the Denton Pian 2030. Mr. Guajardo, Jr. stated that we were able to provide feedback about our experience developing/constructing The Veranda. He stated that the City's main focus was about zoning; but we were able to discuss some other areas with them as well. 1. The Veranda Change Order#1- Revision- Electrical Addition I The Veranda Change Order 92- Cable Conduit Installation & Request for Extension 3. Update on The Veranda- Ramel Company Mr. Guajardo, Jr. stated that the Board already approved Change Order #I- specifically allowing NRP to go back to the bank and acquire more tax credits to cover the cost,,, He stated that we are now about 80°x'0 complete on construction and NRP has not touched the $1.2 million contingency,, Mr. Guajardo, Jr. stated that Change Order #2 is NRP asking to utilize the contingency for the work that was approved in Change Order #1, rather than getting more tax credits. He stated that the second part of Change Order #2 is for redesign and cost incurred for installing cable conduit. Mr. Guajardo, Jr. stated that initially cable service was going to be provided by Verizon and they were going to install the conduit themselves, However, the Verizon deal did not come to fruition and NRP decided to work with Spectrum to design and negotiate installation of the infrastructure. He stated that the agreement requires NRP to install the conduit, which was not included in the original budget. Mr. Guajardo, Jr. stated that the cost will come out of NRPB contingency and will be of no cost to DHA or the bottom line of the contract. Mr. Guajardo, Jr. stated that the last portion of the Change Order is to extend the completion date due to weather delays. He stated that NRP provided the back-up to support their claim and the completion date is now March 29, 2018. Mr. Guajardo, Jr, stated that he does anticipate another change order coming to further extend that date a bit more. Mr. Guajardo Jr. gave a brief update on the construction progress of The Veranda, He stated that The Veranda construction is 80% complete and 52°x' leased up, Mr: Guajardo, Jr. stated that buildings 12,1, 2, 3, and 4 have been turned over and the next will be building 5 with 1 -bedroom units. He stated that he is now starting to focus on building 10, where he has some concerns about turn over due to how the building, was permitted and the fact of the two elevators which are lengthy installations. Mr. Guajardo, Jr., stated c. Financial Statements: August 2017 No questions or comments regarding August 2017 financials. Page 2 of 3 d. Approval of Resolution 11-17- Approve Budget for FY 2017-2018 Commissioner Giese stated that an adjustment needed to be made to the salary of the CEO. Ms. McDade stated that Mrs. Hattox has done a very good job of detailing and explaining the budget and her budget analysis. Ms. McDade asked if anyone had questions about the details or budget analysis and Mrs. Hattox could address those questions. Commissioner Rishel stated that he appreciated the detail provided by Mrs. Hattox. Chairman Stream stated that they all appreciate the detail provided and feels most of the questions have been answered by that detail or at the previous meeting when the draft budget was presented. Resolution 11-17 was presented to the Board for approval. Motion was made by Commissioner Rishel to approve Resolution 11-17 and seconded by Vice Chair English. The Resolution was approved by unanimous vote. e. Approval of 12-17- Local Government Purchasing Cooperative Mrs. McDade stated that we are requesting to join the Purchasing Coop through the Texas Buy Board to purchase materials, supplies and equipment at a reduced rate. Mrs. Hattox stated that there is no cost to join the Coop. Resolution 12-17 was presented to the Board for approval. Motion was made by Commissioner Giese to approve Resolution 12-17 and seconded by Vice Chair English. The Resolution was approved by unanimous vote. f. Motion to Reappoint Commissioner Giese to the Denton Behavioral Health Leadership Teanr (BHLT) Motion was made by Vice Chair English to reappoint Commissioner Giese to the BHLT and seconded by Commissioner Rishel. The motion was approved by unanimous vote. VI. ADJOURNMENT Meeting adjourned at 6:45pm Page 3 of 3 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of January 31, 2016, and the related income statement for the 1 Month and 4 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC February 10, 2016 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of January 31, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 545,073.39 $ 377,814.42 $ 920,299.79 $ 0.00 $ 13,159.23 $ 1,856,346.83 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 13,741.26 0.00 0.00 0.00 0.00 13,741.26 Accounts receivable - miscellaneous (net) (7,234.24) 213,602.93 0.00 0.00 0.00 206,368.69 Accounts receivable - tenants (net) 0.00 0.00 (440.35) 0.00 (2.00) (442.35) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 53,188.55 192,472.32 0.00 0.00 0.00 245,660.87 Prepaid expenses and other assets 5,526.50 164.50 164.50 0.00 164.50 6,020.00 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from 31,602.56 27,015.05 0.00 0.00 0.00 58,617.61 Total Current Assets 642,816.36 811,934.03 925,190.60 81,827.31 13,681.61 2,475,449.91 Property and Equipment Land 0.00 710,905.06 334,002.00 0.00 159,009.13 1,203,916.19 Buildings 205,955.95 1,793,573.05 3,841,127.68 0.00 2,336,692.63 8,177,349.31 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 38,439.68 0.00 10,059.64 296,916.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 12,654.94 0.00 0.00 0.00 12,654.94 Net Property and Equipment 122,669.75 1,726,953.48 1,089,681.39 0.00 925,260.18 3,864,564.80 Total Assets $ 765,486.11 $ 2,538,887.51 $ 2,014,871.99 $ 81,827.31$ 938,941.79 $ 6,340,014.71 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Denton Housing Authority Balance Sheet - Combining As of January 31, 2016 Liabilities and Net Position Section 8 Management Heritage Oaks Fund Disaster Funds Pecan Place Total $ 1,397.25 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 1,397.25 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 0.00 0.00 21,450.00 0.00 4,200.00 25,650.00 (1,408.00) 0.00 0.00 0.00 0.00 (1,408.00) (4,131.03) 0.00 27,865.71 0.00 34,882.93 58,617.61 14,077.65 1,117.87 52,955.21 0.00 39,794.26 107,944.99 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 36,275.72 2,425.23 57,905.22 0.00 40,694.34 137,300.51 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 0.00 3,538.58 1,900.00 0.00 7,750.00 13,188.58 33,263.08 (13,283.44) 46,459.14 0.00 2,015.74 68,454.52 IPZIIIIDIIci�]I.7ci:7Lr.Y] li.: 1 li-IIL•I1:7r/x:31E:iir R3�:L•RiPkI.ILli $ 765,486.11 $ 2,538,887.51 $ 2,014,871.99 $ 81,827.31 $ 938,941.79 Urlaub & Co., PLIC See Accountant's Compilation Report 4 6,202,714.20 $ 6,340,014.71 Denton Housing Authority Income Statement -Combining 4 Months Ended 1/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 246,003.00 $ 0.00 $ 46,924.00 $ 292,927.00 Tenant revenue - other 0.00 0.00 741.55 0.00 125.00 866.55 HUD PHA operating grants 3,916,185.00 0.00 0.00 0.00 0.00 3,916,185.00 Management fees 0.00 20,382.49 0.00 0.00 0.00 20,382.49 Investment income - unrestricted 79.48 55.65 355.80 0.00 4.00 494.93 Fraud recovery 3,655.00 0.00 0.00 0.00 0.00 3,655.00 Other revenue 77,782.60 55,200.52 905.92 0.00 0.00 133,889.04 Total Operating Revenues 3,997,702.08 75,638.66 248,006.27 0.00 47,053.00 4,368,400.01 Operating Expenses Administrative salaries 180,068.73 6,084.52 36,782.58 0.00 8,170.00 231,105.83 Management fees 0.00 0.00 17,116.57 0.00 3,265.92 20,382.49 Advertising and marketing 74.85 0.00 0.00 0.00 0.00 74.85 Employee benefits - administrative 60,193.38 1,848.98 11,331.62 0.00 1,122.64 74,496.62 Office expenses 61,169.29 2,350.05 5,274.18 0.00 2,108.66 70,902.18 Legal expenses 0.00 25,880.11 0.00 0.00 0.00 25,880.11 Travel 5,629.35 2,467.17 116.14 0.00 15.48 8,228.14 Other admin. 8,212.56 18,532.75 980.51 0.00 864.64 28,590.46 Total Administrative 315,348.16 57,163.58 71,601.60 0.00 15,547.34 459,660.68 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 1,715.71 0.00 654.52 2,370.23 Total Tenant Services 0.00 0.00 1,715.71 0.00 690.04 2,405.75 Water 0.00 338.85 4,686.04 0.00 1,171.66 6,196.55 Electricity 0.00 4,610.62 4,745.18 0.00 2,215.24 11,571.04 Gas 0.00 0.00 1,115.78 0.00 1,064.09 2,179.87 Sewer 0.00 527.06 6,320.67 0.00 1,350.08 8,197.81 Total Utilities 0.00 5,476.53 16,867.67 0.00 5,801.07 28,145.27 Maintenance labor 0.00 4,815.58 38,263.30 0.00 4,144.89 47,223.77 Maintenance materials 410.33 2,848.27 17,294.50 0.00 1,459.92 22,013.02 Maintenance contracts 816.98 7,247.38 28,306.07 0.00 4,798.45 41,168.88 Employee benefits - maintenance 0.00 2,170.41 16,685.87 0.00 1,864.28 20,720.56 Total Maintenance 1,227.31 17,081.64 100,549.74 0.00 12,267.54 131,126.23 Property insurance 2,375.13 1,352.68 3,663.88 0.00 659.06 8,050.75 Liability insurance 83.79 47.72 129.25 0.00 23.24 284.00 Workmen's compensation 1,270.38 661.00 1,778.45 0.00 318.67 4,028.50 All other insurance 738.81 420.91 1,140.64 0.00 202.90 2,503.26 Total Insurance 4,468.11 2,482.31 6,712.22 0.00 1,203.87 14,866.51 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Denton Housing Authority Income Statement -Combining 4 Months Ended 1/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Protective services - other contract costs 0.00 1,379.46 632.55 0.00 1,777.40 3,789.41 Total Protective Services 0.00 1,379.46 632.55 0.00 1,777.40 3,789.41 Other general expenses 4,298.82 1,800.00 1,567.64 0.00 0.00 7,666.46 Total General Expenses 4,298.82 1,800.00 1,567.64 0.00 0.00 7,666.46 Housing assistance payments 3,570,145.60 0.00 0.00 0.00 0.00 3,570,145.60 HAP portability -in 68,951.00 0.00 0.00 0.00 0.00 68,951.00 Total Housing Assistance Payments 3,639,096.60 0.00 0.00 0.00 0.00 3,639,096.60 Total Operating Expenses 3,964,439.00 85,383.52 199,647.13 0.00 37,287.26 4,286,756.91 Operating Income (Loss) 33,263.08 (9,744.86) 48,359.14 0.00 9,765.74 81,643.10 Other Financial Items Replacement of equipment 0.00 0.00 1,900.00 0.00 0.00 1,900.00 Property betterments & additions 0.00 3,538.58 0.00 0.00 7,750.00 11,288.58 Total Other Financial Items 0.00 3,538.58 1,900.00 0.00 7,750.00 13,188.58 Net Income (Loss) $ 33,263.08 $ (13,283.44) $46,459.14 $ 0.00 $ 2,015.74$ 68,454.52 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of January 31, 2016 Assets Current Assets Cash -unrestricted $ 545,073.39 Accounts receivable - PHA projects 13,741.26 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Investments - unrestricted 53,188.55 Prepaid expenses and other assets 5,526.50 Inter program - due from 31,602.56 Total Current Assets 642,816.36 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 765,486.11 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 1,397.25 18,219.43 (1,408.00) (4,131.03) 14,077.65 22,198.07 22,198.07 36,275.72 122,669.75 397,684.13 175,593.43 33,263.08 729,210.39 $ 765,486.11 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 1/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 92,096.00 $ 919,375.00 $ 1,011,471.00 Investment income - unrestricted 20.75 0.00 20.75 Fraud recovery 903.38 903.37 1,806.75 Other revenue 27,791.73 0.00 27,791.73 Total Operating Revenues 120,811.86 920,278.37 1,041,090.23 Operating Expenses Administrative salaries 43,359.69 0.00 43,359.69 Advertising and marketing 24.95 0.00 24.95 Employee benefits - administrative 17,321.18 0.00 17,321.18 Office expenses 12,933.45 0.00 12,933.45 Other admin. 1,449.75 0.00 1,449.75 Total Administrative 75,089.02 0.00 75,089.02 Maintenance materials 129.04 0.00 129.04 Total Maintenance 129.04 0.00 129.04 Property insurance 1,188.11 0.00 1,188.11 Liability insurance 41.89 0.00 41.89 Workmen's compensation 580.19 0.00 580.19 All other insurance 368.90 0.00 368.90 Total Insurance 2,179.09 0.00 2,179.09 Housing assistance payments 0.00 902,302.00 902,302.00 HAP portability -in 21,454.00 0.00 21,454.00 Total Housing Assistance Payments 21,454.00 902,302.00 923,756.00 Other general expenses 971.82 0.00 971.82 Total General Expenses 971.82 0.00 971.82 Total Operating Expenses 99,822.97 902,302.00 1,002,124.97 Operating Income (Loss) 20,988.89 17,976.37 38,965.26 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 20,988.89 $ 17,976.37 $ 38,965.26 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Revenues HUD PHA operating grants Investment income - unrestricted Fraud recovery Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Advertising and marketing Employee benefits - administrative Office expenses Travel Other admin. Total Administrative Maintenance materials Maintenance contracts Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Housing assistance payments HAP portability -in Total Housing Assistance Payments Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Section 8 Voucher 1 Month and 4 Months Ended 1/31/2016 Current Year to Month Date Budget Variance $ 1,011,471.00 $ 3,916,185.00 $ 10,173,739.00 $ 6,257,554.00 20.75 79.48 100.00 20.52 1,806.75 3,655.00 2,000.00 (1,655.00) 27,791.73 77,782.60 10,000.00 (67,782.60) 1,041,090.23 3,997,702.08 10,185,839.00 6,188,136.92 43,359.69 180,068.73 597,204.00 417,135.27 0.00 0.00 12,000.00 12,000.00 24.95 74.85 0.00 (74.85) 17,321.18 60,193.38 189,391.00 129,197.62 12,933.45 61,169.29 203,500.00 142,330.71 0.00 5,629.35 17,000.00 11,370.65 1,449.75 8,212.56 43,000.00 34,787.44 75,089.02 315,348.16 1,062,095.00 746,746.84 129.04 410.33 5,000.00 4,589.67 0.00 816.98 5,000.00 4,183.02 129.04 1,227.31 10,000.00 8,772.69 1,188.11 2,375.13 8,411.00 6,035.87 41.89 83.79 0.00 (83.79) 580.19 1,270.38 0.00 (1,270.38) 368.90 738.81 0.00 (738.81) 2,179.09 4,468.11 8,411.00 3,942.89 902,302.00 3,570,145.60 9,162,932.00 5,592,786.40 21,454.00 68,951.00 0.00 (68,951.00) 923,756.00 3,639,096.60 9,162,932.00 5,523,835.40 971.82 4,298.82 1,000.00 (3,298.82) 971.82 4,298.82 1,000.00 (3,298.82) 1,002,124.97 3,964,439.00 10,244,438.00 6,279,999.00 38,965.26 33,263.08 (58,599.00) (91,862.08) 0.00 0.00 3,000.00 3,000.00 0.00 0.00 0.00 0.00 0.00 0.00 3,000.00 3,000.00 $ 38,965.26 $ 33,263.08 $ (61,599.00) $ (94,862.08) Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 4 Months Ended 1/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 366,965.00 $ 3,549,220.00 $ 3,916,185.00 Investment income - unrestricted 79.48 0.00 79.48 Fraud recovery 1,827.52 1,827.48 3,655.00 Other revenue 77,782.60 0.00 77,782.60 Total Operating Revenues 446,654.60 3,551,047.48 3,997,702.08 Operating Expenses Administrative salaries 180,068.73 0.00 180,068.73 Advertising and marketing 74.85 0.00 74.85 Employee benefits - administrative 60,193.38 0.00 60,193.38 Office expenses 61,169.29 0.00 61,169.29 Travel 5,629.35 0.00 5,629.35 Other admin. 8,212.56 0.00 8,212.56 Total Administrative 315,348.16 0.00 315,348.16 Maintenance materials 410.33 0.00 410.33 Maintenance contracts 816.98 0.00 816.98 Total Maintenance 1,227.31 0.00 1,227.31 Property insurance 2,375.13 0.00 2,375.13 Liability insurance 83.79 0.00 83.79 Workmen's compensation 1,270.38 0.00 1,270.38 All other insurance 738.81 0.00 738.81 Total Insurance 4,468.11 0.00 4,468.11 Housing assistance payments 0.00 3,570,145.60 3,570,145.60 HAP portability -in 68,951.00 0.00 68,951.00 Total Housing Assistance Payments 68,951.00 3,570,145.60 3,639,096.60 Other general expenses 4,298.82 0.00 4,298.82 Total General Expenses 4,298.82 0.00 4,298.82 Total Operating Expenses 394,293.40 3,570,145.60 3,964,439.00 Operating Income (Loss) 52,361.20 (19,098.12) 33,263.08 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 52,361.20 $ (19,098.12) $ 33,263.08 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of January 31, 2016 Assets Current Assets Cash -unrestricted $ 377,814.42 Accounts receivable - miscellaneous (net) 213,602.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 164.50 Inter program - due from 27,015.05 Total Current Assets 811,934.03 Property and Equipment Land 710,905.06 Buildings 1,793,573.05 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 12,654.94 Net Property and Equipment 1,726,953.48 Total Assets $ 2,538,887.51 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 $ 1,117.87 1,117.87 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 3,538.58 (13,283.44' 2,536,462.28 $ 2,538,887.51 Operating Revenues Management fees Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Denton Housing Authority Income Statement - Management Fund 1 Month and 4 Months Ended 1/31/2016 Current Month $ 9,556.55 23.84 12,300.00 21,880.39 Year to Date $ 20,382.49 55.65 55,200.52 75,638.66 Budget $ 56,544.00 100.00 242,000.00 298,644.00 Variance $ 36,161.51 44.35 186,799.48 223,005.34 Administrative salaries 1,457.12 6,084.52 18,721.00 12,636.48 Auditing fees 0.00 0.00 3,500.00 3,500.00 Employee benefits - administrative 589.03 1,848.98 5,871.00 4,022.02 Office expenses 551.79 2,350.05 26,800.00 24,449.95 Legal expenses 3,916.00 25,880.11 10,000.00 (15,880.11) Travel 115.00 2,467.17 10,000.00 7,532.83 Other admin. 7,322.41 18,532.75 14,500.00 (4,032.75) Total Administrative 13,951.35 57,163.58 89,392.00 32,228.42 Water 114.10 338.85 7,500.00 7,161.15 Electricity 1,726.95 4,610.62 18,000.00 13,389.38 Sewer 160.98 527.06 3,000.00 2,472.94 Total Utilities 2,002.03 5,476.53 28,500.00 23,023.47 Maintenance labor 1,165.49 4,815.58 15,015.00 10,199.42 Maintenance materials 1,546.62 2,848.27 10,000.00 7,151.73 Maintenance contracts 1,454.00 7,247.38 53,500.00 46,252.62 Employee benefits - maintenance 534.14 2,170.41 4,710.00 2,539.59 Total Maintenance 4,700.25 17,081.64 83,225.00 66,143.36 Property insurance 676.62 1,352.68 5,000.00 3,647.32 Liability insurance 23.86 47.72 0.00 (47.72) Workmen's compensation 330.41 661.00 0.00 (661.00) All other insurance 210.21 420.91 0.00 (420.91) Total Insurance 1,241.10 2,482.31 5,000.00 2,517.69 Protective services - other contract costs 301.97 1,379.46 3,500.00 2,120.54 Total Protective Services 301.97 1,379.46 3,500.00 2,120.54 Other general expenses 1,800.00 1,800.00 5,000.00 3,200.00 Total General Expenses 1,800.00 1,800.00 5,000.00 3,200.00 Total Operating Expenses 23,996.70 85,383.52 214,617.00 129,233.48 Operating Income (Loss) (2,116.31) (9,744.86) 84,027.00 93,771.86 Other Financial Items Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 0.00 3,538.58 10,000.00 6,461.42 Total Other Financial Items 0.00 3,538.58 20,000.00 16,461.42 Net Income (Loss) $ (2,116.31) $ (13,283.44) $ 64,027.00 $ 77,310.44 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of January 31, 2016 Assets Current Assets Cash -unrestricted $ 920,299.79 Accounts receivable - tenants (net) (440.35) Prepaid expenses and other assets 164.50 Inventories (net) 5,166.66 Total Current Assets 925,190.60 Property and Equipment Land 334,002.00 Buildings 3,841,127.68 Furniture, equipment and machinery - administration 38,439.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,089,681.39 Total Assets $ 2,014,871.99 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,450.00 Inter program - due to 27,865.71 Total Current Liabilities 52,955.21 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 57,905.22 1,087,781.39 820,826.24 1,900.00 46,459.14 1,956,966.77 $ 2,014,871.99 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 4 Months Ended 1/31/2016 Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 3,618.33 48,359.14 0.00 1,900.00 0.00 0.00 0.00 1,900.00 $ 3,618.33 $ 46,459.14 Urlaub & Co., PLLC See Accountant's Compilation Report 15 22,155.00 18,000.00 0.00 18,000.00 $ 4,155.00 (26,204.14) 16,100.00 0.00 16,100.00 $ (42,304.14) Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 61,558.00 $ 246,003.00 $ 667,800.00 $ 421,797.00 Tenant revenue - other 323.50 741.55 0.00 (741.55) Investment income - unrestricted 141.23 355.80 400.00 44.20 Other revenue 454.65 905.92 2,500.00 1,594.08 Total Operating Revenues 62,477.38 248,006.27 670,700.00 422,693.73 Operating Expenses Administrative salaries 8,875.87 36,782.58 114,352.00 77,569.42 Auditing fees 0.00 0.00 4,000.00 4,000.00 Management fees 8,740.07 17,116.57 46,746.00 29,629.43 Employee benefits - administrative 3,016.17 11,331.62 39,401.00 28,069.38 Office expenses 1,538.13 5,274.18 28,500.00 23,225.82 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 0.00 116.14 7,000.00 6,883.86 Other admin. 106.50 980.51 11,000.00 10,019.49 Total Administrative 22,276.74 71,601.60 251,999.00 180,397.40 Tenant services - other 116.23 1,715.71 6,000.00 4,284.29 Total Tenant Services 116.23 1,715.71 6,000.00 4,284.29 Water 1,260.43 4,686.04 18,000.00 13,313.96 Electricity 1,114.77 4,745.18 17,000.00 12,254.82 Gas 339.11 1,115.78 8,500.00 7,384.22 Sewer 1,771.98 6,320.67 23,000.00 16,679.33 Total Utilities 4,486.29 16,867.67 66,500.00 49,632.33 Maintenance labor 9,220.42 38,263.30 124,982.00 86,718.70 Maintenance materials 7,231.27 17,294.50 50,000.00 32,705.50 Maintenance contracts 3,865.08 28,306.07 90,000.00 61,693.93 Employee benefits - maintenance 6,522.57 16,685.87 43,064.00 26,378.13 Total Maintenance 26,839.34 100,549.74 308,046.00 207,496.26 Property insurance 1,832.51 3,663.88 13,000.00 9,336.12 Liability insurance 64.61 129.25 0.00 (129.25) Workmen's compensation 894.87 1,778.45 0.00 (1,778.45) All other insurance 569.97 1,140.64 0.00 (1,140.64) Total Insurance 3,361.96 6,712.22 13,000.00 6,287.78 Protective services - other contract costs 210.85 632.55 3,000.00 2,367.45 Total Protective Services 210.85 632.55 3,000.00 2,367.45 Other general expenses 1,567.64 1,567.64 0.00 (1,567.64) Total General Expenses 1,567.64 1,567.64 0.00 (1,567.64) Total Operating Expenses 58,859.05 199,647.13 648,545.00 448,897.87 Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 3,618.33 48,359.14 0.00 1,900.00 0.00 0.00 0.00 1,900.00 $ 3,618.33 $ 46,459.14 Urlaub & Co., PLLC See Accountant's Compilation Report 15 22,155.00 18,000.00 0.00 18,000.00 $ 4,155.00 (26,204.14) 16,100.00 0.00 16,100.00 $ (42,304.14) Denton Housing Authority Balance Sheet - Disaster Funds As of January 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities 0.00 Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 4 Months Ended 1/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of January 31, 2016 Assets Current Assets Cash -unrestricted $ 13,159.23 Accounts receivable - tenants (net) (2.00) Prepaid expenses and other assets 164.50 Inventories (net) 359.88 Total Current Assets 13,681.61 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Net Property and Equipment 925,260.18 Total Assets $ 938,941.79 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 4,200.00 Inter program - due to 34,882.93 Total Current Liabilities 39,794.26 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 40,694.34 917,510.18 (29,028.47) 7,750.00 2,015.74 898,247.45 $ 938,941.79 Denton Housing Authority Income Statement - Pecan Place 1 Month and 4 Months Ended 1/31/2016 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 11,664.00 $ 46,924.00 $ 137,169.00 $ 90,245.00 Tenant revenue - other 25.00 125.00 0.00 (125.00) Investment income - unrestricted 0.93 4.00 30.00 26.00 Other revenue 0.00 0.00 100.00 100.00 Total Operating Revenues 11,689.93 47,053.00 137,299.00 90,246.00 Operating Expenses Administrative salaries 1,964.51 8,170.00 25,860.00 17,690.00 Auditing fees 0.00 0.00 2,500.00 2,500.00 Management fees 816.48 3,265.92 9,798.00 6,532.08 Employee benefits - administrative 305.36 1,122.64 6,191.00 5,068.36 Office expenses 454.68 2,108.66 10,500.00 81391.34 Legal expenses 0.00 0.00 500.00 500.00 Travel 0.00 15.48 1,400.00 1,384.52 Other admin. 82.25 864.64 5,500.00 4,635.36 Total Administrative 3,623.28 15,547.34 62,249.00 46,701.66 Relocation costs 0.00 35.52 0.00 (35.52) Tenant services - other 350.93 654.52 1,200.00 545.48 Total Tenant Services 350.93 690.04 1,200.00 509.96 Water 209.63 1,171.66 3,000.00 1,828.34 Electricity 547.39 2,215.24 7,000.00 4,784.76 Gas 394.07 1,064.09 4,500.00 3,435.91 Sewer 244.55 1,350.08 3,000.00 1,649.92 Total Utilities 1,395.64 5,801.07 17,500.00 11,698.93 Maintenance labor 1,003.00 4,144.89 12,932.00 8,787.11 Maintenance materials 792.42 1,459.92 3,500.00 2,040.08 Maintenance contracts 1,611.31 4,798.45 20,000.00 15,201.55 Employee benefits - maintenance 459.15 1,864.28 3,096.00 1,231.72 Total Maintenance 3,865.88 12,267.54 39,528.00 27,260.46 Property insurance 330.26 659.06 2,330.00 1,670.94 Liability insurance 11.64 23.24 0.00 (23.24) Workmen's compensation 161.28 318.67 0.00 (318.67) All other insurance 100.43 202.90 0.00 (202.90) Total Insurance 603.61 1,203.87 2,330.00 1,126.13 Protective services - other contract costs 609.85 1,777.40 2,000.00 222.60 Total Protective Services 609.85 1,777.40 2,000.00 222.60 Total Operating Expenses 10,449.19 37,287.26 124,807.00 87,519.74 Operating Income (Loss) 1,240.74 9,765.74 12,492.00 2,726.26 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 7,750.00 7,750.00 0.00 (7,750.00) Total Other Financial Items 7,750.00 7,750.00 3,000.00 (4,750.00) Net Income (Loss) $ (6,509.26) $ 2,015.74 $ 9,492.00 $ 7,476.26 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 156,495.31 156,495.31 156,495.31 156,495.31 156,495.31 156,495.31 156,495.31 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 3,549,220.00 Interest Income - - - - - Void Checks -HAP - - - - FEB Forleitures - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 1,827.48 Total Revenue 879,883.87 875,292.37 875,592.87 920,278.37 3,551,047.48 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 3,570,145.60 Fraud Bad Debt HAP Portic Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 - - - - - - - - 3,570,145.60 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 - - - - - - - - (19,098.12) Ending HAP Equity 166.365.30 161.557.07 138.518.94 156.495.31 156.495.31 156.495.31 156.495.31 156.495.31 156.495.31 156.495.31 156.495.31 156.495.31 156.495.31 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 450,045.33 450,045.33 450,045.33 450,045.33 450,045.33 450,045.33 450,045.33 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,096.00 366,965.00 Interest Income 2086. 18.89 18.98 2075. 79.48 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 77,782.60 Fraud Income (Admin) 274.88 174.38 474.88 903.38 1,827.52 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 446,654.60 Expen Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 394,293.40 Depreciation Expense - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 - - - - - - - - 394,293.40 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 - - - - - - - - 52,361.20 Ending Admin Equity 410.060.59 424.794.03 429.05644 450.045.33 450.045.33 450.045.33 450.045.33 450.045.33 450.045.33 450.045.33 450.045.33 450.045.33 399.591.13 Restricted 156,495.31 Unrestricteol 276,921.38 Investment in Net Capital Assets 122,669.75 Total Equity 556,086.44 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of February 29, 2016, and the related income statement for the 1 Month and 5 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC March 10, 2016 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority Balance Sheet - Combining As of February 29, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 389,739.31 $ 374,572.15 $ 930,634.73 $ 0.00 $ 14,730.25 $ 1,709,676.44 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 13,420.79 0.00 0.00 0.00 0.00 13,420.79 Accounts receivable - miscellaneous (net) (7,234.24) 213,602.93 0.00 0.00 0.00 206,368.69 Accounts receivable - tenants (net) 0.00 0.00 (386.85) 0.00 0.00 (386.85) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 53,188.55 192,472.32 0.00 0.00 0.00 245,660.87 Prepaid expenses and other assets 31,414.37 461.51 793.36 0.00 177.07 32,846.31 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from 30,606.22 26,045.58 0.00 0.00 0.00 56,651.80 Total Current Assets 512,053.34 808,019.30 936,207.90 81,827.31 15,267.20 2,353,375.05 Property and Equipment Land 0.00 710,905.06 334,002.00 0.00 159,009.13 1,203,916.19 Buildings 205,955.95 1,793,573.05 3,841,127.68 0.00 2,336,692.63 8,177,349.31 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 38,439.68 0.00 10,059.64 296,916.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 12,654.94 0.00 0.00 0.00 12,654.94 Net Property and Equipment 122,669.75 1,726,953.48 1,089,681.39 0.00 925,260.18 3,864,564.80 Total Assets $ 634,723.09 $ 2,534,972.78$ 2,025,889.29 $ 81,827.31 $940,527.38 $ 6,217,939.85 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Denton Housing Authority Balance Sheet - Combining As of February 29, 2016 Liabilities and Net Position Section 8 Management Heritage Oaks Fund Disaster Funds Pecan Place Total $ 1,538.67 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 1,538.67 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 0.00 0.00 21,600.00 0.00 4,200.00 25,800.00 (7,753.00) 0.00 0.00 0.00 0.00 (7,753.00) (3,916.98) 0.00 26,696.27 0.00 33,872.51 56,651.80 8,088.12 1,117.87 51,935.77 0.00 38,783.84 99,925.60 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 30,286.19 2,425.23 56,885.78 0.00 39,683.92 129,281.12 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 0.00 3,538.58 1,900.00 0.00 7,750.00 13,188.58 (91,510.41) (17,198.17) 58,495.88 0.00 4,611.75 (45,600.95) :9LlLK1L•P�]WAYAI.%I.I611. IL•Y.iADxf61�.1IIE:Wr R3�lPD7E:L13L $ 634,723.09 $ 2,534,972.78 $ 2,025,889.29 $ 81,827.31 $ 940,527.38 Urlaub & Co., PLIC See Accountant's Compilation Report 2 6,088,658.73 $ 6,217,939.85 Denton Housing Authority Income Statement -Combining 5 Months Ended 2/29/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 307,437.00 $ 0.00 $ 58,588.00 $ 366,025.00 Tenant revenue - other 0.00 0.00 889.55 0.00 125.00 1,014.55 HUD PHA operating grants 4,762,359.00 0.00 0.00 0.00 0.00 4,762,359.00 Management fees 0.00 25,496.79 0.00 0.00 0.00 25,496.79 Investment income - unrestricted 96.17 64.93 505.89 0.00 4.74 671.73 Fraud recovery 4,071.00 0.00 0.00 0.00 0.00 4,071.00 Other revenue 104,936.55 68,008.28 905.92 0.00 0.00 173,850.75 Total Operating Revenues 4,871,462.72 93,570.00 309,738.36 0.00 58,717.74 5,333,488.82 Operating Expenses Administrative salaries 225,741.74 7,724.97 46,626.62 0.00 10,295.31 290,388.64 Management fees 0.00 0.00 21,414.39 0.00 4,082.40 25,496.79 Advertising and marketing 99.80 0.00 0.00 0.00 0.00 99.80 Employee benefits - administrative 75,314.31 2,296.34 14,041.80 0.00 1,406.29 93,058.74 Office expenses 77,434.78 3,328.95 6,563.01 0.00 2,951.06 90,277.80 Legal expenses 0.00 25,880.11 0.00 0.00 0.00 25,880.11 Travel 5,682.56 2,472.85 126.78 0.00 15.48 8,297.67 Other admin. 11,577.42 25,398.73 2,013.53 0.00 1,238.90 40,228.58 Total Administrative 395,850.61 67,101.95 90,786.13 0.00 19,989.44 573,728.13 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 1,974.77 0.00 696.72 2,671.49 Total Tenant Services 0.00 0.00 1,974.77 0.00 732.24 2,707.01 Water 0.00 684.15 5,770.52 0.00 1,390.21 7,844.88 Electricity 0.00 6,579.57 5,716.71 0.00 2,742.25 15,038.53 Gas 0.00 0.00 1,506.90 0.00 1,064.09 2,570.99 Sewer 0.00 684.20 7,879.25 0.00 1,604.71 10,168.16 Total Utilities 0.00 7,947.92 20,873.38 0.00 6,801.26 35,622.56 Maintenance labor 0.00 5,976.56 47,437.48 0.00 5,144.88 58,558.92 Maintenance materials 483.28 3,936.52 18,854.79 0.00 2,002.83 25,277.42 Maintenance contracts 1,596.98 10,715.03 38,734.69 0.00 5,357.45 56,404.15 Employee benefits - maintenance 0.00 2,739.94 21,347.13 0.00 2,351.77 26,438.84 Total Maintenance 2,080.26 23,368.05 126,374.09 0.00 14,856.93 166,679.33 Property insurance 2,375.13 1,352.68 3,663.88 0.00 659.06 8,050.75 Liability insurance 83.79 47.72 129.25 0.00 23.24 284.00 Workmen's compensation 1,270.38 661.00 1,778.45 0.00 318.67 4,028.50 All other insurance 738.81 420.91 1,140.64 0.00 202.90 2,503.26 Total Insurance 4,468.11 2,482.31 6,712.22 0.00 1,203.87 14,866.51 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Urlaub & Co., PLLC See Accountant's Compilation Report 2 Denton Housing Authority Income Statement -Combining 5 Months Ended 2/29/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Protective services - other contract costs 0.00 2,389.36 1,054.25 0.00 2,772.25 6,215.86 Total Protective Services 0.00 2,389.36 1,054.25 0.00 2,772.25 6,215.86 Other general expenses 5,507.55 3,940.00 1,567.64 0.00 0.00 11,015.19 Total General Expenses 5,507.55 3,940.00 1,567.64 0.00 0.00 11,015.19 Housing assistance payments 4,460,588.60 0.00 0.00 0.00 0.00 4,460,588.60 HAP portability -in 94,478.00 0.00 0.00 0.00 0.00 94,478.00 Total Housing Assistance Payments 4,555,066.60 0.00 0.00 0.00 0.00 4,555,066.60 Total Operating Expenses 4,962,973.13 107,229.59 249,342.48 0.00 46,355.99 5,365,901.19 Operating Income (Loss) (91,510.41) (13,659.59) 60,395.88 0.00 12,361.75 (32,412.37) Other Financial Items Replacement of equipment 0.00 0.00 1,900.00 0.00 0.00 1,900.00 Property betterments & additions 0.00 3,538.58 0.00 0.00 7,750.00 11,288.58 Total Other Financial Items 0.00 3,538.58 1,900.00 0.00 7,750.00 13,188.58 Net Income (Loss) 1_121,510.411 $ (17,198.17)$ 58,495.88 $ 0.00 $ 4,611.75 $ (45,600.95) Urlaub & Co., PLLC See Accountant's Compilation Report 2 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of February 29, 2016 Assets Current Assets Cash -unrestricted $ 389,739.31 Accounts receivable - PHA projects 13,420.79 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Investments - unrestricted 53,188.55 Prepaid expenses and other assets 31,414.37 Inter program - due from 30,606.22 Total Current Assets 512,053.34 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 634,723.09 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 1 $ 1,538.67 18,219.43 (7,753.00) (3,916.98) 8,088.12 22,198.07 22,198.07 30,286.19 122,669.75 397,684.13 175,593.43 (91,510.41) 604,436.90 $ 634,723.09 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 2/29/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 93,978.00 $ 752,196.00 $ 846,174.00 Investment income - unrestricted 16.69 0.00 16.69 Fraud recovery 208.00 208.00 416.00 Other revenue 27,153.95 0.00 27,153.95 Total Operating Revenues 121,356.64 752,404.00 873,760.64 Operating Expenses Administrative salaries 45,673.01 0.00 45,673.01 Advertising and marketing 24.95 0.00 24.95 Employee benefits - administrative 15,120.93 0.00 15,120.93 Office expenses 16,265.49 0.00 16,265.49 Travel 53.21 0.00 53.21 Other admin. 3,364.86 0.00 3,364.86 Total Administrative 80,502.45 0.00 80,502.45 Maintenance materials 72.95 0.00 72.95 Maintenance contracts 780.00 0.00 780.00 Total Maintenance 852.95 0.00 852.95 Housing assistance payments 0.00 890,443.00 890,443.00 HAP portability -in 25,527.00 0.00 25,527.00 Total Housing Assistance Payments 25,527.00 890,443.00 915,970.00 Other general expenses 1,208.73 0.00 1,208.73 Total General Expenses 1,208.73 0.00 1,208.73 Total Operating Expenses 108,091.13 890,443.00 998,534.13 Operating Income (Loss) 13,265.51 (138,039.00) (124,773.49) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 13,265.51 $ (138,039.00) $ (124,773.49) Urlaub & Co., PLLC See Accountant's Compilation Report 1 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 225,741.74 597,204.00 371,462.26 1 Month and 5 Months Ended 2/29/2016 0.00 0.00 12,000.00 Current Year to Advertising and marketing 24.95 99.80 Month Date Budget Variance Operating Revenues 75,314.31 189,391.00 114,076.69 HUD PHA operating grants $ 846,174.00 $ 4,762,359.00 $ 10,173,739.00 $ 5,411,380.00 Investment income - unrestricted 16.69 96.17 100.00 3.83 Fraud recovery 416.00 4,071.00 2,000.00 (2,071.00) Other revenue 27,153.95 104,936.55 10,000.00 (94,936.55) Total Operating Revenues 873,760.64 4,871,462.72 10,185,839.00 5,314,376.28 Operating Expenses Administrative salaries 45,673.01 225,741.74 597,204.00 371,462.26 Auditing fees 0.00 0.00 12,000.00 12,000.00 Advertising and marketing 24.95 99.80 0.00 (99.80) Employee benefits - administrative 15,120.93 75,314.31 189,391.00 114,076.69 Office expenses 16,265.49 77,434.78 203,500.00 126,065.22 Travel 53.21 5,682.56 17,000.00 11,317.44 Other admin. 3,364.86 11,577.42 43,000.00 31,422.58 Total Administrative 80,502.45 395,850.61 1,062,095.00 666,244.39 Maintenance materials 72.95 483.28 5,000.00 4,516.72 Maintenance contracts 780.00 1,596.98 5,000.00 3,403.02 Total Maintenance 852.95 2,080.26 10,000.00 7,919.74 Property insurance 0.00 2,375.13 8,411.00 6,035.87 Liability insurance 0.00 83.79 0.00 (83.79) Workmen's compensation 0.00 1,270.38 0.00 (1,270.38) All other insurance 0.00 738.81 0.00 (738.81) Total Insurance 0.00 4,468.11 8,411.00 3,942.89 Housing assistance payments 890,443.00 4,460,588.60 9,162,932.00 4,702,343.40 HAP portability -in 25,527.00 94,478.00 0.00 (94,478.00) Total Housing Assistance Payments 915,970.00 4,555,066.60 9,162,932.00 4,607,865.40 Other general expenses 1,208.73 5,507.55 1,000.00 (4,507.55) Total General Expenses 1,208.73 5,507.55 1,000.00 (4,507.55) Total Operating Expenses 998,534.13 4,962,973.13 10,244,438.00 5,281,464.87 Operating Income (Loss) (124,773.49) (91,510.41) (58,599.00) 32,911.41 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ (124,773.49) $ (91,510.41) $ (61,599.00) $ 29,911.41 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority Income Statement -Section 8 Voucher 5 Months Ended 2/29/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 460,943.00 $ 4,301,416.00 $ 4,762,359.00 Investment income - unrestricted 96.17 0.00 96.17 Fraud recovery 2,035.52 2,035.48 4,071.00 Other revenue 104,936.55 0.00 104,936.55 Total Operating Revenues 568,011.24 4,303,451.48 4,871,462.72 Operating Expenses Administrative salaries 225,741.74 0.00 225,741.74 Advertising and marketing 99.80 0.00 99.80 Employee benefits - administrative 75,314.31 0.00 75,314.31 Office expenses 77,434.78 0.00 77,434.78 Travel 5,682.56 0.00 5,682.56 Other admin. 11,577.42 0.00 11,577.42 Total Administrative 395,850.61 0.00 395,850.61 Maintenance materials 483.28 0.00 483.28 Maintenance contracts 1,596.98 0.00 1,596.98 Total Maintenance 2,080.26 0.00 2,080.26 Property insurance 2,375.13 0.00 2,375.13 Liability insurance 83.79 0.00 83.79 Workmen's compensation 1,270.38 0.00 1,270.38 All other insurance 738.81 0.00 738.81 Total Insurance 4,468.11 0.00 4,468.11 Housing assistance payments 0.00 4,460,588.60 4,460,588.60 HAP portability -in 94,478.00 0.00 94,478.00 Total Housing Assistance Payments 94,478.00 4,460,588.60 4,555,066.60 Other general expenses 5,507.55 0.00 5,507.55 Total General Expenses 5,507.55 0.00 5,507.55 Total Operating Expenses 502,384.53 4,460,588.60 4,962,973.13 Operating Income (Loss) 65,626.71 (157,137.12) (91,510.41) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 65,626.71 $ (157,137.12) $ (91,510.41) Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority Balance Sheet - Management Fund As of February 29, 2016 Assets Current Assets Cash -unrestricted $ 374,572.15 Accounts receivable - miscellaneous (net) 213,602.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 461.51 Inter program - due from 26,045.58 Total Current Assets 808,019.30 Property and Equipment Land 710,905.06 Buildings 1,793,573.05 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 12,654.94 Net Property and Equipment 1,726,953.48 Total Assets $ 2,534,972.78 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 1 $ 1,117.87 1,117.87 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 3,538.58 (17,198.17' 2,532,547.55 $ 2,534,972.78 Operating Revenues Management fees Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Denton Housing Authority Income Statement - Management Fund 1 Month and 5 Months Ended 2/29/2016 Current Month $ 5,114.30 9.28 12,807.76 17,931.34 Year to Date $ 25,496.79 64.93 68,008.28 93,570.00 Budget $ 56,544.00 100.00 242,000.00 298,644.00 Variance $ 31,047.21 35.07 173,991.72 205,074.00 Administrative salaries 1,640.45 7,724.97 18,721.00 10,996.03 Auditing fees 0.00 0.00 3,500.00 3,500.00 Employee benefits - administrative 447.36 2,296.34 5,871.00 3,574.66 Office expenses 978.90 3,328.95 26,800.00 23,471.05 Legal expenses 0.00 25,880.11 10,000.00 (15,880.11) Travel 5.68 2,472.85 10,000.00 7,527.15 Other admin. 6,865.98 25,398.73 14,500.00 (10,898.73) Total Administrative 9,938.37 67,101.95 89,392.00 22,290.05 Water 345.30 684.15 7,500.00 6,815.85 Electricity 1,968.95 6,579.57 18,000.00 11,420.43 Sewer 157.14 684.20 3,000.00 2,315.80 Total Utilities 2,471.39 7,947.92 28,500.00 20,552.08 Maintenance labor 1,160.98 5,976.56 15,015.00 9,038.44 Maintenance materials 1,088.25 3,936.52 10,000.00 6,063.48 Maintenance contracts 3,467.65 10,715.03 53,500.00 42,784.97 Employee benefits - maintenance 569.53 2,739.94 4,710.00 1,970.06 Total Maintenance 6,286.41 23,368.05 83,225.00 59,856.95 Property insurance 0.00 1,352.68 5,000.00 3,647.32 Liability insurance 0.00 47.72 0.00 (47.72) Workmen's compensation 0.00 661.00 0.00 (661.00) All other insurance 0.00 420.91 0.00 (420.91) Total Insurance 0.00 2,482.31 5,000.00 2,517.69 Protective services - other contract costs 1,009.90 2,389.36 3,500.00 1,110.64 Total Protective Services 1,009.90 2,389.36 3,500.00 1,110.64 Other general expenses 2,140.00 3,940.00 5,000.00 1,060.00 Total General Expenses 2,140.00 3,940.00 5,000.00 1,060.00 Total Operating Expenses 21,846.07 107,229.59 214,617.00 107,387.41 Operating Income (Loss) (3,914.73) (13,659.59) 84,027.00 97,686.59 Other Financial Items Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 0.00 3,538.58 10,000.00 6,461.42 Total Other Financial Items 0.00 3,538.58 20,000.00 16,461.42 Net Income (Loss) $ (3,914.73) $ (17,198.17) $ 64,027.00 $ 81,225.17 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority Balance Sheet - Heritage Oaks As of February 29, 2016 Assets Current Assets Cash -unrestricted $ 930,634.73 Accounts receivable - tenants (net) (386.85) Prepaid expenses and other assets 793.36 Inventories (net) 5,166.66 Total Current Assets 936,207.90 Property and Equipment Land 334,002.00 Buildings 3,841,127.68 Furniture, equipment and machinery - administration 38,439.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,089,681.39 Total Assets $ 2,025,889.29 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,600.00 Inter program - due to 26,696.27 Total Current Liabilities 51,935.77 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 1 4,950.01 4,950.01 56,885.78 1,087,781.39 820,826.24 1,900.00 58,495.88 1,969,003.51 $ 2,025,889.29 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 5 Months Ended 2/29/2016 Other Financial Items Current Month Year to Date Budget Variance Operating Revenues 18,000.00 16,100.00 Property betterments & additions 0.00 0.00 Net tenant rental revenue $ 61,434.00 $ 307,437.00 $ 667,800.00 $ 360,363.00 Tenant revenue - other 148.00 889.55 0.00 (889.55) Investment income - unrestricted 150.09 505.89 400.00 (105.89) Other revenue 0.00 905.92 2,500.00 1,594.08 Total Operating Revenues 61,732.09 309,738.36 670,700.00 360,961.64 Operating Expenses Administrative salaries 9,844.04 46,626.62 114,352.00 67,725.38 Auditing fees 0.00 0.00 4,000.00 4,000.00 Management fees 4,297.82 21,414.39 46,746.00 25,331.61 Employee benefits - administrative 2,710.18 14,041.80 39,401.00 25,359.20 Office expenses 1,288.83 6,563.01 28,500.00 21,936.99 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 10.64 126.78 7,000.00 6,873.22 Other admin. 1,033.02 2,013.53 11,000.00 8,986.47 Total Administrative 19,184.53 90,786.13 251,999.00 161,212.87 Tenant services - other 259.06 1,974.77 6,000.00 4,025.23 Total Tenant Services 259.06 1,974.77 6,000.00 4,025.23 Water 1,084.48 5,770.52 18,000.00 12,229.48 Electricity 971.53 5,716.71 17,000.00 11,283.29 Gas 391.12 1,506.90 8,500.00 6,993.10 Sewer 1,558.58 7,879.25 23,000.00 15,120.75 Total Utilities 4,005.71 20,873.38 66,500.00 45,626.62 Maintenance labor 9,174.18 47,437.48 124,982.00 77,544.52 Maintenance materials 1,560.29 18,854.79 50,000.00 31,145.21 Maintenance contracts 10,428.62 38,734.69 90,000.00 51,265.31 Employee benefits - maintenance 4,661.26 21,347.13 43,064.00 21,716.87 Total Maintenance 25,824.35 126,374.09 308,046.00 181,671.91 Property insurance 0.00 3,663.88 13,000.00 9,336.12 Liability insurance 0.00 129.25 0.00 (129.25) Workmen's compensation 0.00 1,778.45 0.00 (1,778.45) All other insurance 0.00 1,140.64 0.00 (1,140.64) Total Insurance 0.00 6,712.22 13,000.00 6,287.78 Protective services - other contract costs 421.70 1,054.25 3,000.00 1,945.75 Total Protective Services 421.70 1,054.25 3,000.00 1,945.75 Other general expenses 0.00 1,567.64 0.00 (1,567.64) Total General Expenses 0.00 1,567.64 0.00 (1,567.64) Total Operating Expenses 49,695.35 249,342.48 648,545.00 399,202.52 Operating Income (Loss) 12,036.74 60,395.88 22,155.00 (38,240.88) Other Financial Items Replacement of equipment 0.00 1,900.00 18,000.00 16,100.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 1,900.00 18,000.00 16,100.00 Net Income (Loss) $ 12,036.74 $ 58,495.88 $ 4,155.00 $ (54,340.88) Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority Balance Sheet - Disaster Funds As of February 29, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities 0.00 Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 1 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 5 Months Ended 2/29/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority Balance Sheet - Pecan Place As of February 29, 2016 Assets Current Assets Cash -unrestricted $ 14,730.25 Prepaid expenses and other assets 177.07 Inventories (net) 359.88 Total Current Assets 15,267.20 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Net Property and Equipment 925,260.18 Total Assets $ 940,527.38 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 4,200.00 Inter program - due to 33,872.51 Total Current Liabilities 38,783.84 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 1 900.08 900.08 39,683.92 917,510.18 (29,028.47) 7,750.00 4.611.75 900,843.46 $ 940,527.38 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Management fees Employee benefits - administrative Office expenses Legal expenses Travel Other admin. Total Administrative Relocation costs Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement - Pecan Place 1 Month and 5 Months Ended 2/29/2016 Current Month Year to Date $ 11,664.00 $ 58,588.00 $ 0.00 125.00 0.74 4.74 Budget Variance 137,169.00 $ 78,581.00 0.00 (125.00) 30.00 25.26 2,125.31 10, 295.31 25, 860.00 15, 564.69 0.00 0.00 2,500.00 2,500.00 816.48 4,082.40 9,798.00 5,715.60 283.65 1,406.29 6,191.00 4,784.71 842.40 2,951.06 10,500.00 7,548.94 0.00 0.00 500.00 500.00 0.00 15.48 1,400.00 1,384.52 374.26 1,238.90 5,500.00 4,261.10 4,442.10 19,989.44 62,249.00 42,259.56 0.00 35.52 0.00 (35.52) 42.20 696.72 1,200.00 503.28 42.20 732.24 1,200.00 467.76 218.55 1,390.21 3,000.00 1,609.79 527.01 2,742.25 7,000.00 4,257.75 0.00 1,064.09 4,500.00 3,435.91 254.63 1,604.71 3,000.00 1,395.29 1,000.19 6,801.26 17,500.00 10,698.74 999.99 5,144.88 12,932.00 7,787.12 542.91 2,002.83 3,500.00 1,497.17 559.00 5,357.45 20,000.00 14,642.55 487.49 2,351.77 3,096.00 744.23 2,589.39 14,856.93 39,528.00 24,671.07 0.00 659.06 2,330.00 1,670.94 0.00 23.24 0.00 (23.24) 0.00 318.67 0.00 (318.67) 0.00 202.90 0.00 (202.90) 0.00 1,203.87 2,330.00 1,126.13 994.85 2,772.25 2,000.00 (772.25) 994.85 2,772.25 2,000.00 (772.25) 9,068.73 46,355.99 124,807.00 78,451.01 2,596.01 12,361.75 12,492.00 130.25 0.00 0.00 3,000.00 3,000.00 0.00 7,750.00 0.00 (7,750.00) 0.00 7,750.00 3,000.00 (4,750.00) $ 2,596.01 $ 4,611.75 $ 9,492.00 $ 4,880.25 Urlaub & Co., PLLC See Accountant's Compilation Report 1 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 4,301,416.00 Interest Income - - - - - - Void Checks -HAP - - - - - FEB Forleitures - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 2,035.48 Total Revenue 879,883.87 875,292.37 875,592.87 920,278.37 752,404.00 4,303,451.48 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 4,460,588.60 Fraud Bad Debt HAP Portic Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 - - - - - - - 4,460,588.60 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 (138,039.00) - - - - - - - (157,137.12) Ending HAP Equity 166.365.30 161.557.07 138.518.94 156.495.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 18,456.31 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 463,310.84 463,310.84 463,310.84 463,310.84 463,310.84 463,310.84 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,096.00 93,978.00 460,943.00 Interest Income 2086. 18.89 18.98 2075. 16.69 96.17 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 104,936.55 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 2,035.52 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 568,011.24 Expen Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 502,384.53 Depreciation Expense - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 - - - - - - - 502,384.53 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 - - - - - - - 65,626.71 Ending Admin Equity 410.060.59 424.794.03 429.05644 450.045.33 463.310.84 463.310.84 463.310.84 463.310.84 463.310.84 463.310.84 463.310.84 463.310.84 399.815.82 Restricted 18,456.31 Unrestricteol 399,815.82 Investment in Net Capital Assets 122,669.75 Total Equity 540,941.88 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of March 31, 2016, and the related income statement for the 1 Month and 6 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC April 14, 2016 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of March 31, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 407,408.79 $ 377,719.26 $ 939,669.83 $ 0.00 $ 12,506.60 $ 1,737,304.48 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 17,451.69 0.00 0.00 0.00 0.00 17,451.69 Accounts receivable - miscellaneous (net) (7,234.24) 213,602.93 0.00 0.00 0.00 206,368.69 Accounts receivable - tenants (net) 0.00 0.00 (663.85) 0.00 0.00 (663.85) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 53,188.55 192,472.32 0.00 0.00 0.00 245,660.87 Prepaid expenses and other assets 15,883.31 379.26 711.11 0.00 94.82 17,068.50 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from 26,825.79 25,456.82 0.00 0.00 0.00 52,282.61 Total Current Assets 514,442.23 810,495.40 944,883.75 81,827.31 12,961.30 2,364,609.99 Property and Equipment Land 0.00 710,905.06 334,002.00 0.00 159,009.13 1,203,916.19 Buildings 205,955.95 1,793,573.05 3,841,127.68 0.00 2,336,692.63 8,177,349.31 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 38,439.68 0.00 10,059.64 296,916.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 12,654.94 0.00 0.00 4,757.45 17,412.39 Net Property and Equipment 122,669.75 1,726,953.48 1,089,681.39 0.00 930,017.63 3,869,322.25 Total Assets $ 637,111.98 $ 2,537,448.88$ 2,034,565.14 $ 81,827.31 $942,978.93 $ 6,233,932.24 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of March 31, 2016 Liabilities and Net Position Section 8 Management Heritage Oaks Fund Disaster Funds Pecan Place Total Current Liabilities Accrued wage/payroll taxes payable $ 2,037.05 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2,037.05 Accrued compensated absences - current portion 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 Tenant security deposits 0.00 0.00 21,150.00 0.00 4,050.00 25,200.00 Unearned revenue (14,585.00) 0.00 0.00 0.00 0.00 (14,585.00) Inter program - due to (4,288.20) 0.00 23,257.75 0.00 33,313.06 52,282.61 Total Current Liabilities 1,383.28 1,117.87 48,047.25 0.00 38,074.39 88,622.79 Long -Term Liabilities Accrued compensated absences - non-current 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Long -Term Liabilities 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Liabilities 23,581.35 2,425.23 52,997.26 0.00 38,974.47 117,978.31 Net Position Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 Unrestricted 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 Restricted 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 Capital expenditures -contra 0.00 3,538.58 1,900.00 0.00 12,507.45 17,946.03 Net income (loss) (82,416.68) (14,722.07) 71,060.25 0.00 3,015.30 (23,063.20) Total Net Position 613,530.63 2,535,023.65 1,981,567.88 81,827.31 904,004.46 6,115,953.93 Total Liabilities and Net Position $ 637,111.98 L_1, 537,448.88 $ 2,034,565.14 $ 81,827.31 $ 942,978.93 $ 6,233,932.24 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement -Combining 6 Months Ended 3/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 367,722.00 $ 0.00 $ 69,766.00 $ 437,488.00 Tenant revenue - other 0.00 0.00 953.05 0.00 125.00 1,078.05 HUD PHA operating grants 5,754,527.00 0.00 0.00 0.00 0.00 5,754,527.00 Management fees 0.00 30,420.94 0.00 0.00 0.00 30,420.94 Investment income - unrestricted 112.54 74.98 680.68 0.00 5.57 873.77 Fraud recovery 6,088.00 0.00 0.00 0.00 0.00 6,088.00 Other revenue 137,614.10 83,108.28 1,357.55 0.00 0.00 222,079.93 Total Operating Revenues 5,898,341.64 113,604.20 370,713.28 0.00 69,896.57 6,452,555.69 Operating Expenses Administrative salaries 269,579.54 9,227.69 53,143.29 0.00 12,089.28 344,039.80 Management fees 0.00 0.00 25,556.08 0.00 4,864.86 30,420.94 Advertising and marketing 150.04 0.00 0.00 0.00 0.00 150.04 Employee benefits - administrative 90,551.20 2,737.36 16,454.95 0.00 1,662.86 111,406.37 Office expenses 95,030.87 5,226.00 8,866.60 0.00 3,583.72 112,707.19 Legal expenses 0.00 25,880.11 0.00 0.00 0.00 25,880.11 Travel 6,472.32 2,496.70 171.51 0.00 21.44 9,161.97 Other admin. 15,052.45 32,666.62 2,705.78 0.00 1,611.15 52,036.00 Total Administrative 476,836.42 78,234.48 106,898.21 0.00 23,833.31 685,802.42 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 2,428.02 0.00 696.72 3,124.74 Total Tenant Services 0.00 0.00 2,428.02 0.00 732.24 3,160.26 Water 0.00 1,193.50 6,765.75 0.00 1,390.21 9,349.46 Electricity 0.00 8,004.58 6,551.11 0.00 2,742.25 17,297.94 Gas 0.00 0.00 2,003.25 0.00 1,667.06 3,670.31 Sewer 0.00 844.22 9,337.08 0.00 1,604.71 11,786.01 Total Utilities 0.00 10,042.30 24,657.19 0.00 7,404.23 42,103.72 Maintenance labor 0.00 7,137.54 56,682.79 0.00 6,144.88 69,965.21 Maintenance materials 720.27 4,593.67 25,256.93 0.00 2,840.44 33,411.31 Maintenance contracts 1,596.98 12,387.63 46,624.41 0.00 6,426.24 67,035.26 Employee benefits - maintenance 0.00 3,294.92 25,871.37 0.00 2,826.51 31,992.80 Total Maintenance 2,317.25 27,413.76 154,435.50 0.00 18,238.07 202,404.58 Property insurance 2,375.13 1,352.68 3,663.88 0.00 659.06 8,050.75 Liability insurance 83.79 47.72 129.25 0.00 23.24 284.00 Workmen's compensation 1,270.38 661.00 1,778.45 0.00 318.67 4,028.50 All other insurance 738.81 420.91 1,140.64 0.00 202.90 2,503.26 Total Insurance 4,468.11 2,482.31 6,712.22 0.00 1,203.87 14,866.51 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Denton Housing Authority Income Statement -Combining 6 Months Ended 3/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Protective services - other contract costs 0.00 2,674.84 1,054.25 0.00 2,962.10 6,691.19 Total Protective Services 0.00 2,674.84 1,054.25 0.00 2,962.10 6,691.19 Other general expenses 7,236.96 3,940.00 1,567.64 0.00 0.00 12,744.60 Total General Expenses 7,236.96 3,940.00 1,567.64 0.00 0.00 12,744.60 Housing assistance payments 5,366,293.58 0.00 0.00 0.00 0.00 5,366,293.58 HAP portability -in 123,606.00 0.00 0.00 0.00 0.00 123,606.00 Total Housing Assistance Payments 5,489,899.58 0.00 0.00 0.00 0.00 5,489,899.58 Total Operating Expenses 5,980,758.32 124,787.69 297,753.03 0.00 54,373.82 6,457,672.86 Operating Income (Loss) (82,416.68) (11,183.49) 72,960.25 0.00 15,522.75 (5,117.17) Other Financial Items Replacement of equipment 0.00 0.00 1,900.00 0.00 0.00 1,900.00 Property betterments & additions 0.00 3,538.58 0.00 0.00 12,507.45 16,046.03 Total Other Financial Items 0.00 3,538.58 1,900.00 0.00 12,507.45 17,946.03 Net Income (Loss) $ (82,416.68) $ (14,722.07)$ 71,060.25 $ 0.00 $ 3,015.30 $ (23,063.20) Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of March 31, 2016 Assets Current Assets Cash -unrestricted $ 407,408.79 Accounts receivable - PHA projects 17,451.69 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Investments - unrestricted 53,188.55 Prepaid expenses and other assets 15,883.31 Inter program - due from 26,825.79 Total Current Assets 514,442.23 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 637,111.98 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 2,037.05 18,219.43 (14,585.00) (4,288.20) 1,383.28 22,198.07 22,198.07 23,581.35 122,669.75 397,684.13 175,593.43 (82,416.68) 613,530.63 $ 637,111.98 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 3/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 94,465.00 $ 897,703.00 $ 992,168.00 Investment income - unrestricted 16.37 0.00 16.37 Fraud recovery 1,008.50 1,008.50 2,017.00 Other revenue 32,677.55 0.00 32,677.55 Total Operating Revenues 128,167.42 898,711.50 1,026,878.92 Operating Expenses Administrative salaries 43,837.80 0.00 43,837.80 Advertising and marketing 50.24 0.00 50.24 Employee benefits - administrative 15,236.89 0.00 15,236.89 Office expenses 17,596.09 0.00 17,596.09 Travel 789.76 0.00 789.76 Other admin. 3,475.03 0.00 3,475.03 Total Administrative 80,985.81 0.00 80,985.81 Maintenance materials 236.99 0.00 236.99 Total Maintenance 236.99 0.00 236.99 Housing assistance payments 0.00 905,704.98 905,704.98 HAP portability -in 29,128.00 0.00 29,128.00 Total Housing Assistance Payments 29,128.00 905,704.98 934,832.98 Other general expenses 1,729.41 0.00 1,729.41 Total General Expenses 1,729.41 0.00 1,729.41 Total Operating Expenses 112,080.21 905,704.98 1,017,785.19 Operating Income (Loss) 16,087.21 (6,993.48) 9,093.73 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 16,087.21 $ (6,993.48) $ 9,093.73 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 269,579.54 597,204.00 327,624.46 1 Month and 6 Months Ended 3/31/2016 0.00 0.00 12,000.00 Current Year to Advertising and marketing 50.24 150.04 Month Date Budget Variance Operating Revenues 90,551.20 189,391.00 98,839.80 HUD PHA operating grants $ 992,168.00 $ 5,754,527.00 $ 10,173,739.00 $ 4,419,212.00 Investment income - unrestricted 16.37 112.54 100.00 (12.54) Fraud recovery 2,017.00 6,088.00 2,000.00 (4,088.00) Other revenue 32,677.55 137,614.10 10,000.00 (127,614.10) Total Operating Revenues 1,026,878.92 5,898,341.64 10,185,839.00 4,287,497.36 Operating Expenses Administrative salaries 43,837.80 269,579.54 597,204.00 327,624.46 Auditing fees 0.00 0.00 12,000.00 12,000.00 Advertising and marketing 50.24 150.04 0.00 (150.04) Employee benefits - administrative 15,236.89 90,551.20 189,391.00 98,839.80 Office expenses 17,596.09 95,030.87 203,500.00 108,469.13 Travel 789.76 6,472.32 17,000.00 10,527.68 Other admin. 3,475.03 15,052.45 43,000.00 27,947.55 Total Administrative 80,985.81 476,836.42 1,062,095.00 585,258.58 Maintenance materials 236.99 720.27 5,000.00 4,279.73 Maintenance contracts 0.00 1,596.98 5,000.00 3,403.02 Total Maintenance 236.99 2,317.25 10,000.00 7,682.75 Property insurance 0.00 2,375.13 8,411.00 6,035.87 Liability insurance 0.00 83.79 0.00 (83.79) Workmen's compensation 0.00 1,270.38 0.00 (1,270.38) All other insurance 0.00 738.81 0.00 (738.81) Total Insurance 0.00 4,468.11 8,411.00 3,942.89 Housing assistance payments 905,704.98 5,366,293.58 9,162,932.00 3,796,638.42 HAP portability -in 29,128.00 123,606.00 0.00 (123,606.00) Total Housing Assistance Payments 934,832.98 5,489,899.58 9,162,932.00 3,673,032.42 Other general expenses 1,729.41 7,236.96 1,000.00 (6,236.96) Total General Expenses 1,729.41 7,236.96 1,000.00 (6,236.96) Total Operating Expenses 1,017,785.19 5,980,758.32 10,244,438.00 4,263,679.68 Operating Income (Loss) 9,093.73 (82,416.68) (58,599.00) 23,817.68 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ 9,093.73 $ (82,416.68) $ (61,599.00) $ 20,817.68 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 6 Months Ended 3/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 555,408.00 $ 5,199,119.00 $ 5,754,527.00 Investment income - unrestricted 112.54 0.00 112.54 Fraud recovery 3,044.02 3,043.98 6,088.00 Other revenue 137,614.10 0.00 137,614.10 Total Operating Revenues 696,178.66 5,202,162.98 5,898,341.64 Operating Expenses Administrative salaries 269,579.54 0.00 269,579.54 Advertising and marketing 150.04 0.00 150.04 Employee benefits - administrative 90,551.20 0.00 90,551.20 Office expenses 95,030.87 0.00 95,030.87 Travel 6,472.32 0.00 6,472.32 Other admin. 15,052.45 0.00 15,052.45 Total Administrative 476,836.42 0.00 476,836.42 Maintenance materials 720.27 0.00 720.27 Maintenance contracts 1,596.98 0.00 1,596.98 Total Maintenance 2,317.25 0.00 2,317.25 Property insurance 2,375.13 0.00 2,375.13 Liability insurance 83.79 0.00 83.79 Workmen's compensation 1,270.38 0.00 1,270.38 All other insurance 738.81 0.00 738.81 Total Insurance 4,468.11 0.00 4,468.11 Housing assistance payments 0.00 5,366,293.58 5,366,293.58 HAP portability -in 123,606.00 0.00 123,606.00 Total Housing Assistance Payments 123,606.00 5,366,293.58 5,489,899.58 Other general expenses 7,236.96 0.00 7,236.96 Total General Expenses 7,236.96 0.00 7,236.96 Total Operating Expenses 614,464.74 5,366,293.58 5,980,758.32 Operating Income (Loss) 81,713.92 (164,130.60) (82,416.68) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 81,713.92 $ (164,130.60) $ (82,416.68) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of March 31, 2016 Assets Current Assets Cash -unrestricted $ 377,719.26 Accounts receivable - miscellaneous (net) 213,602.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 379.26 Inter program - due from 25,456.82 Total Current Assets 810,495.40 Property and Equipment Land 710,905.06 Buildings 1,793,573.05 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 12,654.94 Net Property and Equipment 1,726,953.48 Total Assets $ 2,537,448.88 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,117.87 Total Current Liabilities 1,117.87 Long -Term Liabilities Accrued compensated absences - non-current 1,307.36 Total Long -Term Liabilities 1,307.36 Total Liabilities 2,425.23 Net Position Investment in capital assets 1,723,414.90 Unrestricted 822,792.24 Capital expenditures -contra 3,538.58 Net income (loss) (14,722.07) Total Net Position 2,535,023.65 Total Liabilities and Net Position $ 2,537,448.88 Urlaub & Co., PLLC See Accountant's Compilation Report 12 Operating Revenues Management fees Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Denton Housing Authority Income Statement - Management Fund 1 Month and 6 Months Ended 3/31/2016 Current Month $ 4,924.15 10.05 15,100.00 20,034.20 Year to Date $ 30,420.94 74.98 83,108.28 113,604.20 Budget $ 56,544.00 100.00 242,000.00 298,644.00 Variance $ 26,123.06 25.02 158,891.72 185,039.80 Administrative salaries 1,502.72 9,227.69 18,721.00 9,493.31 Auditing fees 0.00 0.00 3,500.00 3,500.00 Employee benefits - administrative 441.02 2,737.36 5,871.00 3,133.64 Office expenses 1,897.05 5,226.00 26,800.00 21,574.00 Legal expenses 0.00 25,880.11 10,000.00 (15,880.11) Travel 23.85 2,496.70 10,000.00 7,503.30 Other admin. 7,267.89 32,666.62 14,500.00 (18,166.62) Total Administrative 11,132.53 78,234.48 89,392.00 11,157.52 Water 509.35 1,193.50 7,500.00 6,306.50 Electricity 1,425.01 8,004.58 18,000.00 9,995.42 Sewer 160.02 844.22 3,000.00 2,155.78 Total Utilities 2,094.38 10,042.30 28,500.00 18,457.70 Maintenance labor 1,160.98 7,137.54 15,015.00 7,877.46 Maintenance materials 657.15 4,593.67 10,000.00 5,406.33 Maintenance contracts 1,672.60 12,387.63 53,500.00 41,112.37 Employee benefits - maintenance 554.98 3,294.92 4,710.00 1,415.08 Total Maintenance 4,045.71 27,413.76 83,225.00 55,811.24 Property insurance 0.00 1,352.68 5,000.00 3,647.32 Liability insurance 0.00 47.72 0.00 (47.72) Workmen's compensation 0.00 661.00 0.00 (661.00) All other insurance 0.00 420.91 0.00 (420.91) Total Insurance 0.00 2,482.31 5,000.00 2,517.69 Protective services - other contract costs 285.48 2,674.84 3,500.00 825.16 Total Protective Services 285.48 2,674.84 3,500.00 825.16 Other general expenses 0.00 3,940.00 5,000.00 1,060.00 Total General Expenses 0.00 3,940.00 5,000.00 1,060.00 Total Operating Expenses 17,558.10 124,787.69 214,617.00 89,829.31 Operating Income (Loss) 2,476.10 (11,183.49) 84,027.00 95,210.49 Other Financial Items Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 0.00 3,538.58 10,000.00 6,461.42 Total Other Financial Items 0.00 3,538.58 20,000.00 16,461.42 Net Income (Loss) $ 2,476.10 $ (14,722.07) $ 64,027.00 $ 78,749.07 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of March 31, 2016 Assets Current Assets Cash -unrestricted $ 939,669.83 Accounts receivable - tenants (net) (663.85) Prepaid expenses and other assets 711.11 Inventories (net) 5,166.66 Total Current Assets 944,883.75 Property and Equipment Land 334,002.00 Buildings 3,841,127.68 Furniture, equipment and machinery - administration 38,439.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,089,681.39 Total Assets $ 2,034,565.14 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,150.00 Inter program - due to 23,257.75 Total Current Liabilities 48,047.25 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 52,997.26 1,087,781.39 820,826.24 1,900.00 71,060.25 1,981,567.88 $ 2,034,565.14 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 6 Months Ended 3/31/2016 Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 12,564.37 72,960.25 0.00 1,900.00 0.00 0.00 0.00 1,900.00 $ 12,564.37 $ 71,060.25 Urlaub & Co., PLLC See Accountant's Compilation Report 15 22,155.00 18,000.00 0.00 18,000.00 $ 4,155.00 (50,805.25) 16,100.00 0.00 16,100.00 $ (66,905.25) Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 60,285.00 $ 367,722.00 $ 667,800.00 $ 300,078.00 Tenant revenue - other 63.50 953.05 0.00 (953.05) Investment income - unrestricted 174.79 680.68 400.00 (280.68) Other revenue 451.63 1,357.55 2,500.00 1,142.45 Total Operating Revenues 60,974.92 370,713.28 670,700.00 299,986.72 Operating Expenses Administrative salaries 6,516.67 53,143.29 114,352.00 61,208.71 Auditing fees 0.00 0.00 4,000.00 4,000.00 Management fees 4,141.69 25,556.08 46,746.00 21,189.92 Employee benefits - administrative 2,413.15 16,454.95 39,401.00 22,946.05 Office expenses 2,303.59 8,866.60 28,500.00 19,633.40 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 44.73 171.51 7,000.00 6,828.49 Other admin. 692.25 2,705.78 11,000.00 8,294.22 Total Administrative 16,112.08 106,898.21 251,999.00 145,100.79 Tenant services - other 453.25 2,428.02 6,000.00 3,571.98 Total Tenant Services 453.25 2,428.02 6,000.00 3,571.98 Water 995.23 6,765.75 18,000.00 11,234.25 Electricity 834.40 6,551.11 17,000.00 10,448.89 Gas 496.35 2,003.25 8,500.00 6,496.75 Sewer 1,457.83 9,337.08 23,000.00 13,662.92 Total Utilities 3,783.81 24,657.19 66,500.00 41,842.81 Maintenance labor 9,245.31 56,682.79 124,982.00 68,299.21 Maintenance materials 6,402.14 25,256.93 50,000.00 24,743.07 Maintenance contracts 7,889.72 46,624.41 90,000.00 43,375.59 Employee benefits - maintenance 4,524.24 25,871.37 43,064.00 17,192.63 Total Maintenance 28,061.41 154,435.50 308,046.00 153,610.50 Property insurance 0.00 3,663.88 13,000.00 9,336.12 Liability insurance 0.00 129.25 0.00 (129.25) Workmen's compensation 0.00 1,778.45 0.00 (1,778.45) All other insurance 0.00 1,140.64 0.00 (1,140.64) Total Insurance 0.00 6,712.22 13,000.00 6,287.78 Protective services - other contract costs 0.00 1,054.25 3,000.00 1,945.75 Total Protective Services 0.00 1,054.25 3,000.00 1,945.75 Other general expenses 0.00 1,567.64 0.00 (1,567.64) Total General Expenses 0.00 1,567.64 0.00 (1,567.64) Total Operating Expenses 48,410.55 297,753.03 648,545.00 350,791.97 Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 12,564.37 72,960.25 0.00 1,900.00 0.00 0.00 0.00 1,900.00 $ 12,564.37 $ 71,060.25 Urlaub & Co., PLLC See Accountant's Compilation Report 15 22,155.00 18,000.00 0.00 18,000.00 $ 4,155.00 (50,805.25) 16,100.00 0.00 16,100.00 $ (66,905.25) Denton Housing Authority Balance Sheet - Disaster Funds As of March 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities 0.00 Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 6 Months Ended 3/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of March 31, 2016 Assets Current Assets Cash -unrestricted $ 12,506.60 Prepaid expenses and other assets 94.82 Inventories (net) 359.88 Total Current Assets 12,961.30 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Construction in progress 4,757.45 Net Property and Equipment 930,017.63 Total Assets $ 942,978.93 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 4,050.00 Inter program - due to 33,313.06 Total Current Liabilities 38,074.39 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 38,974.47 917,510.18 (29,028.47) 12,507.45 3,015.30 904,004.46 $ 942,978.93 Denton Housing Authority Income Statement - Pecan Place 1 Month and 6 Months Ended 3/31/2016 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 11,178.00 $ 69,766.00 $ 137,169.00 $ 67,403.00 Tenant revenue - other 0.00 125.00 0.00 (125.00) Investment income - unrestricted 0.83 5.57 30.00 24.43 Other revenue 0.00 0.00 100.00 100.00 Total Operating Revenues 11,178.83 69,896.57 137,299.00 67,402.43 Operating Expenses Administrative salaries 1,793.97 12,089.28 25,860.00 13,770.72 Auditing fees 0.00 0.00 2,500.00 2,500.00 Management fees 782.46 4,864.86 9,798.00 4,933.14 Employee benefits - administrative 256.57 1,662.86 6,191.00 4,528.14 Office expenses 632.66 3,583.72 10,500.00 61916.28 Legal expenses 0.00 0.00 500.00 500.00 Travel 5.96 21.44 1,400.00 1,378.56 Other admin. 372.25 1,611.15 5,500.00 3,888.85 Total Administrative 3,843.87 23,833.31 62,249.00 38,415.69 Relocation costs 0.00 35.52 0.00 (35.52) Tenant services - other 0.00 696.72 1,200.00 503.28 Total Tenant Services 0.00 732.24 1,200.00 467.76 Water 0.00 1,390.21 3,000.00 1,609.79 Electricity 0.00 2,742.25 7,000.00 4,257.75 Gas 602.97 1,667.06 4,500.00 2,832.94 Sewer 0.00 1,604.71 3,000.00 1,395.29 Total Utilities 602.97 7,404.23 17,500.00 10,095.77 Maintenance labor 1,000.00 6,144.88 12,932.00 6,787.12 Maintenance materials 837.61 2,840.44 3,500.00 659.56 Maintenance contracts 1,068.79 6,426.24 20,000.00 13,573.76 Employee benefits - maintenance 474.74 2,826.51 3,096.00 269.49 Total Maintenance 3,381.14 18,238.07 39,528.00 21,289.93 Property insurance 0.00 659.06 2,330.00 1,670.94 Liability insurance 0.00 23.24 0.00 (23.24) Workmen's compensation 0.00 318.67 0.00 (318.67) All other insurance 0.00 202.90 0.00 (202.90) Total Insurance 0.00 1,203.87 2,330.00 1,126.13 Protective services - other contract costs 189.85 2,962.10 2,000.00 (962.10) Total Protective Services 189.85 2,962.10 2,000.00 (962.10) Total Operating Expenses 8,017.83 54,373.82 124,807.00 70,433.18 Operating Income (Loss) 3,161.00 15,522.75 12,492.00 (3,030.75) Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 4,757.45 12,507.45 0.00 (12,507.45) Total Other Financial Items 4,757.45 12,507.45 3,000.00 (9,507.45) Net Income (Loss) $ (1,596.45) $ 3,015.30 $ 9,492.00 $ 6,476.70 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 18,456.31 11,462.83 11,462.83 11,462.83 11,462.83 11,462.83 11,462.83 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 5,199,119.00 Interest Income - - - - - - - Void Checks -HAP - - - - - - FEB Forleitures - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1,008.50 3,043.98 Total Revenue 879,883.87 875,292.37 875,592.87 920,278.37 752,404.00 898,711.50 5202,162.98 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 5,366,293.58 Fraud Bad Debt HAP Portic Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 - - - - - - 5,366293.58 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 (138,039.00) (6,993.48) - - - - - - (164,130.60) Ending HAP Equity 166.365.30 161.557.07 138.518.94 156.495.31 18,456.31 11.462.83 11.462.83 11.462.83 11.462.83 11.462.83 11.462.83 11.462.83 11.462.83 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 479,398.05 479,398.05 479,398.05 479,398.05 479,398.05 479,398.05 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,096.00 93,978.00 94,465.00 555,408.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 112.54 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 137,614.10 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1,008.50 3,044.02 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 696178.66 Expen Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 614,464.74 Depreciation Expense - - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 - - - - - - 614,464.74 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 16,087.21 - - - - - - 81,713.92 Ending Admin Equity 410.060.59 424.794.03 429.05644 450.045.33 463.310.84 479.398.05 479.398.05 479.398.05 479.398.05 479.398.05 479.398.05 479.398.05 400.84069 Restricted 11,462.83 Unrestricteol 400,840.69 Investment in Net Capital Assets 122,669.75 Total Equity 534,973.27 Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10;104,344 10,104,44 HUD -held Program Reserve 11,009,763 750,000 PHA -held NRA Balance 138,519 138,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,252,626 10,992,863 Baseline Units 1525' Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is >= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of April 30, 2016, and the related income statement for the 1 Month and 7 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC May 10, 2016 Current Assets Cash -unrestricted Cash -other restricted Accounts receivable - PHA projects Accounts receivable - miscellaneous (net) Accounts receivable - tenants (net) Fraud recovery (net) Accrued interest receivable Investments - unrestricted Prepaid expenses and other assets Inventories (net) Inter program - due from Total Current Assets Property and Equipment Land Buildings Furniture, equipment and machinery - dwellings Furniture, equipment and machinery - administration Accumulated depreciation Construction in progress Net Property and Equipment Non Current Assets Other assets Total Non Current Assets Total Assets Denton Housing Authority 509,949.32 334,002.00 0.00 Balance Sheet - Combining 1,002,960.45 205,955.95 1,799,888.89 As of April 30, 2016 0.00 2,336,692.63 8,183,665.15 Assets 0.00 0.00 0.00 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund 0.00 10,059.64 296,916.24 $ 409,642.47 $ 710,794.76 $ 949,150.52 $ 0.00 $ 7,302.63 $ 2,076,890.38 0.00 0.00 0.00 81,827.31 0.00 81,827.31 13,521.12 0.00 0.00 0.00 0.00 13,521.12 (7,234.24) 215,202.93 0.00 0.00 0.00 207,968.69 0.00 0.00 857.04 0.00 0.00 857.04 317.01 0.00 0.00 0.00 0.00 317.01 601.33 864.81 0.00 0.00 0.00 1,466.14 53,188.55 192,472.32 0.00 0.00 0.00 245,660.87 14,078.45 347.65 651.85 0.00 86.92 15,164.87 0.00 0.00 5,166.66 0.00 359.88 5,526.54 37,309.50 24,784.59 0.00 0.00 0.00 62,094.09 521,424.19 1,144,467.06 955,826.07 81,827.31 7,749.43 2,711,294.06 0.00 509,949.32 334,002.00 0.00 159,009.13 1,002,960.45 205,955.95 1,799,888.89 3,841,127.68 0.00 2,336,692.63 8,183,665.15 0.00 0.00 0.00 0.00 51,461.80 51,461.80 212,340.34 36,076.58 38,439.68 0.00 10,059.64 296,916.24 (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) 0.00 3,538.58 0.00 0.00 12,812.28 16,350.86 122,669.75 1,523,197.22 1,089,681.39 0.00 938,072.46 3,673,620.82 0.00 150,000.00 0.00 0.00 0.00 150,000.00 0.00 150,000.00 0.00 0.00 0.00 150,000.00 $ 644,093.94 $ 2,817,664.28 L_2,045 507.46 $ 81,827.31 L__245 821.89 $ 6,534,914.88 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of April 30, 2016 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Liabilities and Net Position Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Liabilities Accrued wage/payroll taxes payable $ 3,832.85 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 3,832.85 Accrued compensated absences - current portion 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 Tenant security deposits 0.00 0.00 21,750.00 0.00 3,900.00 25,650.00 Unearned revenue (16,014.00) 0.00 0.00 0.00 0.00 (16,014.00) Inter program - due to (5,708.87) 0.00 31,897.62 0.00 35,905.34 62,094.09 Total Current Liabilities 329.41 1,117.87 57,287.12 0.00 40,516.67 99,251.07 Long -Term Liabilities Accrued compensated absences - non-current 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Long -Term Liabilities 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Liabilities 22,527.48 2,425.23 62,237.13 0.00 41,416.75 128,606.59 Net Position Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 Unrestricted 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 Restricted 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 Capital expenditures -contra 0.00 3,538.58 1,900.00 0.00 20,562.28 26,000.86 Net income (loss) (74,380.85) 265,493.33 72,762.70 0.00 (4,638.85) 259,236.33 Total Net Position 621,566.46 2,815,239.05 1,983,270.33 81,827.31 904,405.14 6,406,308.29 Total Liabilities and Net Position $ 644,093.94 $ 2,817,664.28 $ 2,045,507.46 $ 81,827.31 $ 945,821.89 $ 6,534,914.88 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 7 Months Ended 4/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 429,657.00 $ 0.00 $ 80,458.00 $ 510,115.00 Tenant revenue - other 0.00 0.00 1,013.05 0.00 150.00 1,163.05 HUD PHA operating grants 6,762,745.00 0.00 0.00 0.00 0.00 6,762,745.00 Management fees 0.00 35,357.98 0.00 0.00 0.00 35,357.98 Investment income - unrestricted 131.62 135.24 859.82 0.00 6.13 1,132.81 Fraud recovery 6,393.00 0.00 0.00 0.00 0.00 6,393.00 Other revenue 170,623.24 428,102.22 1,407.55 0.00 0.00 600,133.01 Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 0.00 0.00 (50,955.74) Total Operating Revenues 6,939,892.86 412,639.70 432,937.42 0.00 80,614.13 7,866,084.11 Operating Expenses Administrative salaries 336,403.63 11,461.76 63,802.27 0.00 15,110.13 426,777.79 Management fees 0.00 0.00 29,744.68 0.00 5,613.30 35,357.98 Advertising and marketing 150.04 0.00 242.50 0.00 0.00 392.54 Employee benefits - administrative 105,087.01 3,165.27 17,814.44 0.00 1,985.72 128,052.44 Office expenses 110,481.00 5,778.75 10,282.35 0.00 3,615.51 130,157.61 Legal expenses 0.00 25,880.11 0.00 0.00 0.00 25,880.11 Travel 9,161.53 4,041.47 1,463.46 0.00 75.83 14,742.29 Other admin. 17,990.27 38,004.63 3,137.83 0.00 1,765.76 60,898.49 Total Administrative 579,273.48 88,331.99 126,487.53 0.00 28,166.25 822,259.25 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 2,625.76 0.00 718.18 3,343.94 Total Tenant Services 0.00 0.00 2,625.76 0.00 753.70 3,379.46 Water 0.00 1,666.73 8,006.20 0.00 1,616.41 11,289.34 Electricity 0.00 9,487.97 7,507.62 0.00 3,246.30 20,241.89 Gas 0.00 0.00 2,541.30 0.00 1,667.06 4,208.36 Sewer 0.00 960.06 11,071.72 0.00 1,867.97 13,899.75 Total Utilities 0.00 12,114.76 29,126.84 0.00 8,397.74 49,639.34 Maintenance labor 0.00 8,894.04 71,038.36 0.00 7,654.27 87,586.67 Maintenance materials 766.24 4,750.89 28,626.97 0.00 3,573.06 37,717.16 Maintenance contracts 1,636.98 15,251.63 57,064.67 0.00 7,943.24 81,896.52 Employee benefits - maintenance 0.00 3,846.63 30,498.11 0.00 3,297.40 37,642.14 Total Maintenance 2,403.22 32,743.19 187,228.11 0.00 22,467.97 244,842.49 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Denton Housing Authority Income Statement -Combining 7 Months Ended 4/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Property insurance 3,501.64 2,036.63 5,554.81 0.00 980.92 12,074.00 Liability insurance 123.55 71.86 195.99 0.00 34.60 426.00 Workmen's compensation 1,588.95 854.42 2,313.19 0.00 409.69 5,166.25 All other insurance 1,089.97 640.25 1,698.90 0.00 327.88 3,757.00 Total Insurance 6,304.11 3,603.16 9,762.89 0.00 1,753.09 21,423.25 Protective services - other contract costs 0.00 2,874.69 1,475.95 0.00 3,151.95 7,502.59 Total Protective Services 0.00 2,874.69 1,475.95 0.00 3,151.95 7,502.59 Other general expenses 8,536.32 3,940.00 1,567.64 0.00 0.00 14,043.96 Total General Expenses 8,536.32 3,940.00 1,567.64 0.00 0.00 14,043.96 Housing assistance payments 6,263,144.58 0.00 0.00 0.00 0.00 6,263,144.58 HAP portability -in 154,612.00 0.00 0.00 0.00 0.00 154,612.00 Total Housing Assistance Payments 6,417,756.58 0.00 0.00 0.00 0.00 6,417,756.58 Total Operating Expenses 7,014,273.71 143,607.79 358,274.72 0.00 64,690.70 7,580,846.92 Operating Income (Loss) (74,380.85) 269,031.91 74,662.70 0.00 15,923.43 285,237.19 Other Financial Items Replacement of equipment 0.00 0.00 1,900.00 0.00 0.00 1,900.00 Property betterments & additions 0.00 3,538.58 0.00 0.00 20,562.28 24,100.86 Total Other Financial Items 0.00 3,538.58 1,900.00 0.00 20,562.28 26,000.86 Net Income (Loss) $ (74,380.85) $ 265,493.33 1_72 762.70 $ 0.00 $ (4,638.85) 1259 236.33 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of April 30, 2016 Assets Current Assets Cash -unrestricted $ 409,642.47 Accounts receivable - PHA projects 13,521.12 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Investments - unrestricted 53,188.55 Prepaid expenses and other assets 14,078.45 Inter program - due from 37,309.50 Total Current Assets 521,424.19 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 644,093.94 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 3,832.85 18,219.43 (16,014.00) (5,708.87) 329.41 22,198.07 22,198.07 22,527.48 122,669.75 397,684.13 175,593.43 (74,380.85) 621,566.46 $ 644,093.94 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 4/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 93,491.00 $ 914,727.00 $ 1,008,218.00 Investment income - unrestricted 19.08 0.00 19.08 Fraud recovery 152.50 152.50 305.00 Other revenue 33,009.14 0.00 33,009.14 Total Operating Revenues 126,671.72 914,879.50 1,041,551.22 Operating Expenses Administrative salaries 66,824.09 0.00 66,824.09 Employee benefits - administrative 14,535.81 0.00 14,535.81 Office expenses 15,450.13 0.00 15,450.13 Travel 2,689.21 0.00 2,689.21 Other admin. 2,937.82 0.00 2,937.82 Total Administrative 102,437.06 0.00 102,437.06 Maintenance materials 45.97 0.00 45.97 Maintenance contracts 40.00 0.00 40.00 Total Maintenance 85.97 0.00 85.97 Property insurance 1,126.51 0.00 1,126.51 Liability insurance 39.76 0.00 39.76 Workmen's compensation 318.57 0.00 318.57 All other insurance 351.16 0.00 351.16 Total Insurance 1,836.00 0.00 1,836.00 Housing assistance payments 0.00 896,851.00 896,851.00 HAP portability -in 31,006.00 0.00 31,006.00 Total Housing Assistance Payments 31,006.00 896,851.00 927,857.00 Other general expenses 1,299.36 0.00 1,299.36 Total General Expenses 1,299.36 0.00 1,299.36 Total Operating Expenses 136,664.39 896,851.00 1,033,515.39 Operating Income (Loss) (9,992.67) 18,028.50 8,035.83 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ (9,992.67) $ 18,028.50 $ 8,035.83 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 336,403.63 597,204.00 260,800.37 1 Month and 7 Months Ended 4/30/2016 0.00 0.00 12,000.00 Current Year to Advertising and marketing 0.00 150.04 Month Date Budget Variance Operating Revenues 105,087.01 189,391.00 84,303.99 HUD PHA operating grants $ 1,008,218.00 $ 6,762,745.00 $ 10,173,739.00 $ 3,410,994.00 Investment income - unrestricted 19.08 131.62 100.00 (31.62) Fraud recovery 305.00 6,393.00 2,000.00 (4,393.00) Other revenue 33,009.14 170,623.24 10,000.00 (160,623.24) Total Operating Revenues 1,041,551.22 6,939,892.86 10,185,839.00 3,245,946.14 Operating Expenses Administrative salaries 66,824.09 336,403.63 597,204.00 260,800.37 Auditing fees 0.00 0.00 12,000.00 12,000.00 Advertising and marketing 0.00 150.04 0.00 (150.04) Employee benefits - administrative 14,535.81 105,087.01 189,391.00 84,303.99 Office expenses 15,450.13 110,481.00 203,500.00 93,019.00 Travel 2,689.21 9,161.53 17,000.00 7,838.47 Other admin. 2,937.82 17,990.27 43,000.00 25,009.73 Total Administrative 102,437.06 579,273.48 1,062,095.00 482,821.52 Maintenance materials 45.97 766.24 5,000.00 4,233.76 Maintenance contracts 40.00 1,636.98 5,000.00 3,363.02 Total Maintenance 85.97 2,403.22 10,000.00 7,596.78 Property insurance 1,126.51 3,501.64 8,411.00 4,909.36 Liability insurance 39.76 123.55 0.00 (123.55) Workmen's compensation 318.57 1,588.95 0.00 (1,588.95) All other insurance 351.16 1,089.97 0.00 (1,089.97) Total Insurance 1,836.00 6,304.11 8,411.00 2,106.89 Housing assistance payments 896,851.00 6,263,144.58 9,162,932.00 2,899,787.42 HAP portability -in 31,006.00 154,612.00 0.00 (154,612.00) Total Housing Assistance Payments 927,857.00 6,417,756.58 9,162,932.00 2,745,175.42 Other general expenses 1,299.36 8,536.32 1,000.00 (7,536.32) Total General Expenses 1,299.36 8,536.32 1,000.00 (7,536.32) Total Operating Expenses 1,033,515.39 7,014,273.71 10,244,438.00 3,230,164.29 Operating Income (Loss) 8,035.83 (74,380.85) (58,599.00) 15,781.85 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ 8,035.83 $ (74,380.85) $ (61,599.00) $ 12,781.85 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 7 Months Ended 4/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 648,899.00 $ 6,113,846.00 $ 6,762,745.00 Investment income - unrestricted 131.62 0.00 131.62 Fraud recovery 3,196.52 3,196.48 6,393.00 Other revenue 170,623.24 0.00 170,623.24 Total Operating Revenues 822,850.38 6,117,042.48 6,939,892.86 Operating Expenses Administrative salaries 336,403.63 0.00 336,403.63 Advertising and marketing 150.04 0.00 150.04 Employee benefits - administrative 105,087.01 0.00 105,087.01 Office expenses 110,481.00 0.00 110,481.00 Travel 9,161.53 0.00 9,161.53 Other admin. 17,990.27 0.00 17,990.27 Total Administrative 579,273.48 0.00 579,273.48 Maintenance materials 766.24 0.00 766.24 Maintenance contracts 1,636.98 0.00 1,636.98 Total Maintenance 2,403.22 0.00 2,403.22 Property insurance 3,501.64 0.00 3,501.64 Liability insurance 123.55 0.00 123.55 Workmen's compensation 1,588.95 0.00 1,588.95 All other insurance 1,089.97 0.00 1,089.97 Total Insurance 6,304.11 0.00 6,304.11 Housing assistance payments 0.00 6,263,144.58 6,263,144.58 HAP portability -in 154,612.00 0.00 154,612.00 Total Housing Assistance Payments 154,612.00 6,263,144.58 6,417,756.58 Other general expenses 8,536.32 0.00 8,536.32 Total General Expenses 8,536.32 0.00 8,536.32 Total Operating Expenses 751,129.13 6,263,144.58 7,014,273.71 Operating Income (Loss) 71,721.25 (146,102.10) (74,380.85) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 71,721.25 $ (146,102.10) $ (74,380.85) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of April 30, 2016 Assets Current Assets Cash -unrestricted $ 710,794.76 Accounts receivable - miscellaneous (net) 215,202.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 347.65 Inter program - due from 24,784.59 Total Current Assets 1,144,467.06 Property and Equipment Land 509,949.32 Buildings 1,799,888.89 Furniture, equipment and machinery administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 3,538.58 Net Property and Equipment 1,523,197.22 Non Current Assets Other assets 150,000.00 Total Non Current Assets 150,000.00 Total Assets $ 2,817,664.28 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,117.87 Total Current Liabilities 1,117.87 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 3,538.58 265,493.33 2,815,239.05 $ 2,817,664.28 Denton Housing Authority Income Statement - Management Fund 1 Month and 7 Months Ended 4/30/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 3,500.00 3,500.00 Management fees $ 4,937.04 $ 35,357.98 $ 56,544.00 $ 21,186.02 Investment income - unrestricted 60.26 135.24 100.00 (35.24) Other revenue 344,993.94 428,102.22 242,000.00 (186,102.22) Gain or loss on disposition of capital assets (50,955.74) (50,955.74) 0.00 50,955.74 Total Operating Revenues 299,035.50 412,639.70 298,644.00 (113,995.70) Operating Expenses Administrative salaries 2,234.07 11,461.76 18,721.00 7,259.24 Auditing fees 0.00 0.00 3,500.00 3,500.00 Employee benefits - administrative 427.91 3,165.27 5,871.00 2,705.73 Office expenses 552.75 5,778.75 26,800.00 21,021.25 Legal expenses 0.00 25,880.11 10,000.00 (15,880.11) Travel 1,544.77 4,041.47 10,000.00 5,958.53 Other admin. 5,338.01 38,004.63 14,500.00 (23,504.63) Total Administrative 10,097.51 88,331.99 89,392.00 1,060.01 Water 473.23 1,666.73 7,500.00 5,833.27 Electricity 1,483.39 9,487.97 18,000.00 8,512.03 Sewer 115.84 960.06 3,000.00 2,039.94 Total Utilities 2,072.46 12,114.76 28,500.00 16,385.24 Maintenance labor 1,756.50 8,894.04 15,015.00 6,120.96 Maintenance materials 157.22 4,750.89 10,000.00 5,249.11 Maintenance contracts 2,864.00 15,251.63 53,500.00 38,248.37 Employee benefits - maintenance 551.71 3,846.63 4,710.00 863.37 Total Maintenance 5,329.43 32,743.19 83,225.00 50,481.81 Property insurance 683.95 2,036.63 5,000.00 2,963.37 Liability insurance 24.14 71.86 0.00 (71.86) Workmen's compensation 193.42 854.42 0.00 (854.42) All other insurance 219.34 640.25 0.00 (640.25) Total Insurance 1,120.85 3,603.16 5,000.00 1,396.84 Protective services - other contract costs 199.85 2,874.69 3,500.00 625.31 Total Protective Services 199.85 2,874.69 3,500.00 625.31 Other general expenses 0.00 3,940.00 5,000.00 1,060.00 Total General Expenses 0.00 3,940.00 5,000.00 1,060.00 Total Operating Expenses 18,820.10 143,607.79 214,617.00 71,009.21 Operating Income (Loss) 280,215.40 269,031.91 84,027.00 (185,004.91) Other Financial Items Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 0.00 3,538.58 10,000.00 6,461.42 Total Other Financial Items 0.00 3,538.58 20,000.00 16,461.42 Net Income (Loss) $ 280,215.40 $ 265,493.33 $ 64,027.00 $ (201,466.33) Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of April 30, 2016 Assets Current Assets Cash -unrestricted $ 949,150.52 Accounts receivable - tenants (net) 857.04 Prepaid expenses and other assets 651.85 Inventories (net) 5,166.66 Total Current Assets 955,826.07 Property and Equipment Land 334,002.00 Buildings 3,841,127.68 Furniture, equipment and machinery - administration 38,439.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,089,681.39 Total Assets $ 2,045,507.46 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,750.00 Inter program - due to 31,897.62 Total Current Liabilities 57,287.12 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 62,237.13 1,087,781.39 820,826.24 1,900.00 72,762.70 1,983,270.33 $ 2,045,507.46 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 7 Months Ended 4/30/2016 Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 1,900.00 0.00 1,900.00 $ 1,702.45 $ 72,762.70 Urlaub & Co., PLLC See Accountant's Compilation Report 15 18,000.00 $ 4,155.00 16,100.00 $ (68,607.70) Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 61,935.00 $ 429,657.00 $ 667,800.00 $ 238,143.00 Tenant revenue - other 60.00 1,013.05 0.00 (1,013.05) Investment income - unrestricted 179.14 859.82 400.00 (459.82) Other revenue 50.00 1,407.55 2,500.00 1,092.45 Total Operating Revenues 62,224.14 432,937.42 670,700.00 237,762.58 Operating Expenses Administrative salaries 10,658.98 63,802.27 114,352.00 50,549.73 Auditing fees 0.00 0.00 4,000.00 4,000.00 Management fees 4,188.60 29,744.68 46,746.00 17,001.32 Advertising and marketing 242.50 242.50 0.00 (242.50) Employee benefits - administrative 1,359.49 17,814.44 39,401.00 21,586.56 Office expenses 1,415.75 10,282.35 28,500.00 18,217.65 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 1,291.95 1,463.46 7,000.00 5,536.54 Other admin. 432.05 3,137.83 11,000.00 7,862.17 Total Administrative 19,589.32 126,487.53 251,999.00 125,511.47 Tenant services - other 197.74 2,625.76 6,000.00 3,374.24 Total Tenant Services 197.74 2,625.76 6,000.00 3,374.24 Water 1,240.45 8,006.20 18,000.00 9,993.80 Electricity 956.51 7,507.62 17,000.00 9,492.38 Gas 538.05 2,541.30 8,500.00 5,958.70 Sewer 1,734.64 11,071.72 23,000.00 11,928.28 Total Utilities 4,469.65 29,126.84 66,500.00 37,373.16 Maintenance labor 14,355.57 71,038.36 124,982.00 53,943.64 Maintenance materials 3,370.04 28,626.97 50,000.00 21,373.03 Maintenance contracts 10,440.26 57,064.67 90,000.00 32,935.33 Employee benefits - maintenance 4,626.74 30,498.11 43,064.00 12,565.89 Total Maintenance 32,792.61 187,228.11 308,046.00 120,817.89 Property insurance 1,890.93 5,554.81 13,000.00 7,445.19 Liability insurance 66.74 195.99 0.00 (195.99) Workmen's compensation 534.74 2,313.19 0.00 (2,313.19) All other insurance 558.26 1,698.90 0.00 (1,698.90) Total Insurance 3,050.67 9,762.89 13,000.00 3,237.11 Protective services - other contract costs 421.70 1,475.95 3,000.00 1,524.05 Total Protective Services 421.70 1,475.95 3,000.00 1,524.05 Other general expenses 0.00 1,567.64 0.00 (1,567.64) Total General Expenses 0.00 1,567.64 0.00 (1,567.64) Total Operating Expenses 60,521.69 358,274.72 648,545.00 290,270.28 Operating Income (Loss) 1,702.45 74,662.70 22,155.00 (52,507.70) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 1,900.00 0.00 1,900.00 $ 1,702.45 $ 72,762.70 Urlaub & Co., PLLC See Accountant's Compilation Report 15 18,000.00 $ 4,155.00 16,100.00 $ (68,607.70) Denton Housing Authority Balance Sheet - Disaster Funds As of April 30, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities 0.00 Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 7 Months Ended 4/30/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of April 30, 2016 Assets Current Assets Cash -unrestricted $ 7,302.63 Prepaid expenses and other assets 86.92 Inventories (net) 359.88 Total Current Assets 7,749.43 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Construction in progress 12,812.28 Net Property and Equipment 938,072.46 Total Assets $ 945,821.89 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 3,900.00 Inter program - due to 35,905.34 Total Current Liabilities 40,516.67 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 41,416.75 917,510.18 (29,028.47) 20,562.28 (4,638.85) 904,405.14 $ 945,821.89 Denton Housing Authority Income Statement - Pecan Place 1 Month and 7 Months Ended 4/30/2016 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 10,692.00 $ 80,458.00 $ 137,169.00 $ 56,711.00 Tenant revenue - other 25.00 150.00 0.00 (150.00) Investment income - unrestricted 0.56 6.13 30.00 23.87 Other revenue 0.00 0.00 100.00 100.00 Total Operating Revenues 10,717.56 80,614.13 137,299.00 56,684.87 Operating Expenses Administrative salaries 3,020.85 15,110.13 25,860.00 10,749.87 Auditing fees 0.00 0.00 2,500.00 2,500.00 Management fees 748.44 5,613.30 9,798.00 4,184.70 Employee benefits - administrative 322.86 1,985.72 6,191.00 4,205.28 Office expenses 31.79 3,615.51 10,500.00 6,884.49 Legal expenses 0.00 0.00 500.00 500.00 Travel 54.39 75.83 1,400.00 1,324.17 Other admin. 154.61 1,765.76 5,500.00 3,734.24 Total Administrative 4,332.94 28,166.25 62,249.00 34,082.75 Relocation costs 0.00 35.52 0.00 (35.52) Tenant services - other 21.46 718.18 1,200.00 481.82 Total Tenant Services 21.46 753.70 1,200.00 446.30 Water 226.20 1,616.41 3,000.00 1,383.59 Electricity 504.05 3,246.30 7,000.00 3,753.70 Gas 0.00 1,667.06 4,500.00 2,832.94 Sewer 263.26 1,867.97 3,000.00 1,132.03 Total Utilities 993.51 8,397.74 17,500.00 9,102.26 Maintenance labor 1,509.39 7,654.27 12,932.00 5,277.73 Maintenance materials 732.62 3,573.06 3,500.00 (73.06) Maintenance contracts 1,517.00 7,943.24 20,000.00 12,056.76 Employee benefits - maintenance 470.89 3,297.40 3,096.00 (201.40) Total Maintenance 4,229.90 22,467.97 39,528.00 17,060.03 Property insurance 321.86 980.92 2,330.00 1,349.08 Liability insurance 11.36 34.60 0.00 (34.60) Workmen's compensation 91.02 409.69 0.00 (409.69) All other insurance 124.98 327.88 0.00 (327.88) Total Insurance 549.22 1,753.09 2,330.00 576.91 Protective services - other contract costs 189.85 3,151.95 2,000.00 (1,151.95) Total Protective Services 189.85 3,151.95 2,000.00 (1,151.95) Total Operating Expenses 10,316.88 64,690.70 124,807.00 60,116.30 Operating Income (Loss) 400.68 15,923.43 12,492.00 (3,431.43) Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 8,054.83 20,562.28 0.00 (20,562.28) Total Other Financial Items 8,054.83 20,562.28 3,000.00 (17,562.28) Net Income (Loss) $ (7,654.15) $ (4,638.85) $ 9,492.00 $ 14,130.85 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 18,456.31 11,462.83 29,491.33 29,491.33 29,491.33 29,491.33 29,491.33 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 914,727.00 6,113,846.00 Interest Income - - - - - - - - Void Checks -HAP - - - - - - - FEB Forleitures - - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1,008.50 152.50 3,196.48 Total Revenue 879,883.87 875,292.37 875,592.87 920,278.37 752,404.00 898,711.50 914,879.50 6,117,042.48 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 6,263,144.58 Fraud Bad Debt HAP Portic Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 - - - - - 6263,144.58 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 (138,039.00) (6,993.48) 18,028.50 - - - - - (146,102.10) Ending HAP Equity 166.365.30 161.557.07 138.518.94 156.495.31 18,456.31 11.462.83 29.491.33 29.491.33 29.491.33 29.491.33 29.491.33 29.491.33 29.491.33 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 479,398.05 469,405.38 469,405.38 469,405.38 469,405.38 469,405.38 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,096.00 93,978.00 94,465.00 93,491.00 648,899.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 1908. 131.62 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 33,009.14 170,623.24 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1,008.50 152.50 3,196.52 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 126,671.72 822,850.38 Expen Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 136,664.39 751,129.13 Depreciation Expense - - - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 136,664.39 - - - - - 751,129.13 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 16,087.21 (9,992.67) - - - - - 71,721.25 Ending Admin Equity 410.060.59 424.794.03 429.05644 450.045.33 463.310.84 479.398.05 469.405.38 469.405.38 469.405.38 469.405.38 469.405.38 469.405.38 401.012.27 Restricted 29,491.33 Unrestricteol 401,012.27 Investment in Net Capital Assets 122,669.75 Total Equity 553,173.35 Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10;104,344 10,104,44 HUD -held Program Reserve 11,009,763 750,000 PHA -held NRA Balance 138,519 138,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,252,626 10,992,863 Baseline Units 1525' Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is >= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of May 31, 2016, and the related income statement for the 1 Month and 8 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC June 09, 2016 Denton Housing Authority Balance Sheet - Combining As of May 31, 2016 Assets Urlaub & Co., PLLC See Accountant's Compilation Report 3 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 492,756.08 $ 759,579.47 $ 960,632.57 $ 0.00 $ 29,521.63 $ 2,242,489.75 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 18,942.74 0.00 0.00 0.00 0.00 18,942.74 Accounts receivable - miscellaneous (net) (7,234.24) 215,602.93 0.00 0.00 0.00 208,368.69 Accounts receivable - tenants (net) 0.00 0.00 (3,109.85) 0.00 0.00 (3,109.85) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 0.00 192,472.32 0.00 0.00 0.00 192,472.32 Prepaid expenses and other assets 12,273.59 316.04 592.59 0.00 79.02 13,261.24 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from 31,164.32 25,954.97 0.00 0.00 0.00 57,119.29 Total Current Assets 548,820.83 1,194,790.54 963,281.97 81,827.31 29,960.53 2,818,681.18 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 1,002,960.45 Buildings 205,955.95 1,807,538.89 3,841,127.68 0.00 2,336,692.63 8,191,315.15 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 38,439.68 0.00 10,059.64 296,916.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 3,538.58 0.00 0.00 16,289.66 19,828.24 Net Property and Equipment 122,669.75 1,530,847.22 1,089,681.39 0.00 941,549.84 3,684,748.20 Non Current Assets Other assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Non Current Assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Assets $ 671,490.58$ 2,875,637.76 $ 2,052,963.36 $ 81,827.31 $ 971,510.37 $ 6,653,429.38 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Balance Sheet - Combining Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 As of May 31, 2016 917,510.18 3,851,376.22 Unrestricted 397,684.13 Liabilities and Net Position 820,826.24 0.00 (29,028.47) 2,012,274.14 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total 81,827.31 Fund 257,420.74 Capital expenditurescontra 0.00 Current Liabilities 1,900.00 0.00 24,039.66 37,128.24 Accrued wage/payroll taxes payable $ 3,870.15 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 3,870.15 Accrued compensated absences - current portion 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 Tenant security deposits 0.00 0.00 21,150.00 0.00 3,950.00 25,100.00 Unearned revenue (18,830.00) 0.00 0.00 0.00 0.00 (18,830.00) Inter program - due to (5,320.95) 0.00 27,122.42 0.00 35,317.82 57,119.29 Total Current Liabilities (2,061.37) 1,117.87 51,911.92 0.00 39,979.15 90,947.57 Long -Term Liabilities Accrued compensated absences - noncurrent 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Long -Term Liabilities 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Liabilities 20,136.70 2,425.23 56,861.93 0.00 40,879.23 120,303.09 Net Position Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 Unrestricted 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 Restricted 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 Capital expenditurescontra 0.00 11,188.58 1,900.00 0.00 24,039.66 37,128.24 Net income (loss) (44,593.43) 315,816.81 85,593.80 0.00 18,109.77 374,926.95 Total Net Position 651,353.88 2,873,212.53 1,996,101.43 81,827.31 930,631.14 6,533,126.29 Total Liabilities and Net Position $ 671,490.58 $ 2,875,637.76 $ 2,052,963.36 $ 81,827.31 L___271,510.37 $ 6,653,429.38 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement -Combining 8 Months Ended 5/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 489,938.00 $ 0.00 $ 91,636.00 $ 581,574.00 Tenant revenue - other 0.00 0.00 1,078.05 0.00 205.00 1,283.05 HUD PHA operating grants 7,763,451.00 0.00 0.00 0.00 0.00 7,763,451.00 Management fees 0.00 40,288.09 0.00 0.00 0.00 40,288.09 Investment income - unrestricted 648.45 158.95 1,041.65 0.00 6.91 1,855.96 Fraud recovery 8,128.00 0.00 0.00 0.00 0.00 8,128.00 Other revenue 214,216.88 522,200.02 1,964.41 0.00 0.00 738,381.31 Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 0.00 0.00 (50,955.74) Total Operating Revenues 7,986,444.33 511,691.32 494,022.11 0.00 91,847.91 9,084,005.67 Operating Expenses Administrative salaries 385,586.81 12,964.48 72,983.59 0.00 17,156.01 488,690.89 Management fees 0.00 0.00 33,892.33 0.00 6,395.76 40,288.09 Advertising and marketing 150.04 0.00 242.50 0.00 0.00 392.54 Employee benefits - administrative 122,497.99 3,662.50 20,318.70 0.00 2,363.05 148,842.24 Office expenses 124,310.51 6,982.52 12,152.14 0.00 4,763.05 148,208.22 Legal expenses 0.00 26,125.11 0.00 0.00 0.00 26,125.11 Travel 10,388.80 4,172.38 2,029.51 0.00 109.98 16,700.67 Other admin. 21,468.73 43,535.05 3,529.88 0.00 1,920.37 70,454.03 Total Administrative 664,402.88 97,442.04 145,148.65 0.00 32,708.22 939,701.79 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 3,726.50 0.00 762.37 4,488.87 Total Tenant Services 0.00 0.00 3,726.50 0.00 797.89 4,524.39 Water 0.00 2,190.11 9,326.13 0.00 1,828.59 13,344.83 Electricity 0.00 10,884.84 8,351.78 0.00 3,795.76 23,032.38 Gas 0.00 0.00 2,792.12 0.00 1,833.90 4,626.02 Sewer 0.00 1,122.96 12,896.08 0.00 2,115.40 16,134.44 Total Utilities 0.00 14,197.91 33,366.11 0.00 9,573.65 57,137.67 Maintenance labor 0.00 10,055.02 80,639.50 0.00 8,654.26 99,348.78 Maintenance materials 927.67 5,282.29 33,343.49 0.00 4,680.94 44,234.39 Maintenance contracts 1,744.68 18,503.51 61,899.96 0.00 8,585.76 90,733.91 Employee benefits - maintenance 0.00 4,469.20 35,588.71 0.00 3,831.19 43,889.10 Total Maintenance 2,672.35 38,310.02 211,471.66 0.00 25,752.15 278,206.18 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 8 Months Ended 5/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Property insurance 3,501.64 2,036.63 5,554.81 0.00 980.92 12,074.00 Liability insurance 123.55 71.86 195.99 0.00 34.60 426.00 Workmen's compensation 1,588.95 854.42 2,313.19 0.00 409.69 5,166.25 All other insurance 1,089.97 640.25 1,698.90 0.00 327.88 3,757.00 Total Insurance 6,304.11 3,603.16 9,762.89 0.00 1,753.09 21,423.25 Protective services - other contract costs 0.00 3,148.39 1,475.95 0.00 3,151.95 7,776.29 Total Protective Services 0.00 3,148.39 1,475.95 0.00 3,151.95 7,776.29 Other general expenses 10,054.09 3,944.75 1,576.55 0.00 1.19 15,576.58 Total General Expenses 10,054.09 3,944.75 1,576.55 0.00 1.19 15,576.58 Housing assistance payments 7,151,681.33 0.00 0.00 0.00 0.00 7,151,681.33 HAP portability -in 195,923.00 0.00 0.00 0.00 0.00 195,923.00 Total Housing Assistance Payments 7,347,604.33 0.00 0.00 0.00 0.00 7,347,604.33 Total Operating Expenses 8,031,037.76 160,646.27 406,528.31 0.00 73,738.14 8,671,950.48 Operating Income (Loss) (44,593.43) 351,045.05 87,493.80 0.00 18,109.77 412,055.19 Other Financial Items Transfer between programs and projects - in 0.00 0.00 0.00 0.00 (24,039.66) (24,039.66) Transfers between programs and projects - out 0.00 24,039.66 0.00 0.00 0.00 24,039.66 Replacement of equipment 0.00 0.00 1,900.00 0.00 0.00 1,900.00 Property betterments & additions 0.00 11,188.58 0.00 0.00 24,039.66 35,228.24 Total Other Financial Items 0.00 35,228.24 1,900.00 0.00 0.00 37,128.24 Net Income (Loss) $ (44,593.43) $ 315,816.81 $ 85,593.80 $ 0.00$ 18,109.77 $ 374,926.95 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of May 31, 2016 Assets Current Assets Cash -unrestricted $ 492,756.08 Accounts receivable - PHA projects 18,942.74 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Prepaid expenses and other assets 12,273.59 Inter program - due from 31,164.32 Total Current Assets 548,820.83 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 671,490.58 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 3,870.15 18,219.43 (18,830.00) (5,320.95) (2,061.37) 22,198.07 22,198.07 20,136.70 122,669.75 397,684.13 175,593.43 (44,593.43) 651,353.88 $ 671,490.58 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 5/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 94,878.00 $ 905,828.00 $ 1,000,706.00 Investment income - unrestricted 516.83 0.00 516.83 Fraud recovery 867.50 867.50 1,735.00 Other revenue 43,593.64 0.00 43,593.64 Total Operating Revenues 139,855.97 906,695.50 1,046,551.47 Operating Expenses Administrative salaries 49,183.18 0.00 49,183.18 Employee benefits - administrative 17,410.98 0.00 17,410.98 Office expenses 13,829.51 0.00 13,829.51 Travel 1,227.27 0.00 1,227.27 Other admin. 3,478.46 0.00 3,478.46 Total Administrative 85,129.40 0.00 85,129.40 Maintenance materials 161.43 0.00 161.43 Maintenance contracts 107.70 0.00 107.70 Total Maintenance 269.13 0.00 269.13 Housing assistance payments 0.00 888,536.75 888,536.75 HAP portability -in 41,311.00 0.00 41,311.00 Total Housing Assistance Payments 41,311.00 888,536.75 929,847.75 Other general expenses 1,517.77 0.00 1,517.77 Total General Expenses 1,517.77 0.00 1,517.77 Total Operating Expenses 128,227.30 888,536.75 1,016,764.05 Operating Income (Loss) 11,628.67 18,158.75 29,787.42 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 11,628.67 $ 18,158.75 $ 29,787.42 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 385,586.81 597,204.00 211,617.19 1 Month and 8 Months Ended 5/31/2016 0.00 0.00 12,000.00 Current Year to Advertising and marketing 0.00 150.04 Month Date Budget Variance Operating Revenues 122,497.99 189,391.00 66,893.01 HUD PHA operating grants $ 1,000,706.00 $ 7,763,451.00 $ 10,173,739.00 $ 2,410,288.00 Investment income - unrestricted 516.83 648.45 100.00 (548.45) Fraud recovery 1,735.00 8,128.00 2,000.00 (6,128.00) Other revenue 43,593.64 214,216.88 10,000.00 (204,216.88) Total Operating Revenues 1,046,551.47 7,986,444.33 10,185,839.00 2,199,394.67 Operating Expenses Administrative salaries 49,183.18 385,586.81 597,204.00 211,617.19 Auditing fees 0.00 0.00 12,000.00 12,000.00 Advertising and marketing 0.00 150.04 0.00 (150.04) Employee benefits - administrative 17,410.98 122,497.99 189,391.00 66,893.01 Office expenses 13,829.51 124,310.51 203,500.00 79,189.49 Travel 1,227.27 10,388.80 17,000.00 6,611.20 Other admin. 3,478.46 21,468.73 43,000.00 21,531.27 Total Administrative 85,129.40 664,402.88 1,062,095.00 397,692.12 Maintenance materials 161.43 927.67 5,000.00 4,072.33 Maintenance contracts 107.70 1,744.68 5,000.00 3,255.32 Total Maintenance 269.13 2,672.35 10,000.00 7,327.65 Property insurance 0.00 3,501.64 8,411.00 4,909.36 Liability insurance 0.00 123.55 0.00 (123.55) Workmen's compensation 0.00 1,588.95 0.00 (1,588.95) All other insurance 0.00 1,089.97 0.00 (1,089.97) Total Insurance 0.00 6,304.11 8,411.00 2,106.89 Housing assistance payments 888,536.75 7,151,681.33 9,162,932.00 2,011,250.67 HAP portability -in 41,311.00 195,923.00 0.00 (195,923.00) Total Housing Assistance Payments 929,847.75 7,347,604.33 9,162,932.00 1,815,327.67 Other general expenses 1,517.77 10,054.09 1,000.00 (9,054.09) Total General Expenses 1,517.77 10,054.09 1,000.00 (9,054.09) Total Operating Expenses 1,016,764.05 8,031,037.76 10,244,438.00 2,213,400.24 Operating Income (Loss) 29,787.42 (44,593.43) (58,599.00) (14,005.57) Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ 29,787.42 $ (44,593.43) $ (61,599.00) $ (17,005.57) Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 8 Months Ended 5/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 743,777.00 $ 7,019,674.00 $ 7,763,451.00 Investment income - unrestricted 648.45 0.00 648.45 Fraud recovery 4,064.02 4,063.98 8,128.00 Other revenue 214,216.88 0.00 214,216.88 Total Operating Revenues 962,706.35 7,023,737.98 7,986,444.33 Operating Expenses Administrative salaries 385,586.81 0.00 385,586.81 Advertising and marketing 150.04 0.00 150.04 Employee benefits - administrative 122,497.99 0.00 122,497.99 Office expenses 124,310.51 0.00 124,310.51 Travel 10,388.80 0.00 10,388.80 Other admin. 21,468.73 0.00 21,468.73 Total Administrative 664,402.88 0.00 664,402.88 Maintenance materials 927.67 0.00 927.67 Maintenance contracts 1,744.68 0.00 1,744.68 Total Maintenance 2,672.35 0.00 2,672.35 Property insurance 3,501.64 0.00 3,501.64 Liability insurance 123.55 0.00 123.55 Workmen's compensation 1,588.95 0.00 1,588.95 All other insurance 1,089.97 0.00 1,089.97 Total Insurance 6,304.11 0.00 6,304.11 Housing assistance payments 0.00 7,151,681.33 7,151,681.33 HAP portability -in 195,923.00 0.00 195,923.00 Total Housing Assistance Payments 195,923.00 7,151,681.33 7,347,604.33 Other general expenses 10,054.09 0.00 10,054.09 Total General Expenses 10,054.09 0.00 10,054.09 Total Operating Expenses 879,356.43 7,151,681.33 8,031,037.76 Operating Income (Loss) 83,349.92 (127,943.35) (44,593.43) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 83,349.92 $ (127,943.35) $ (44,593.43) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of May 31, 2016 Assets Current Assets Cash -unrestricted $ 759,579.47 Accounts receivable - miscellaneous (net) 215,602.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 316.04 Inter program - due from 25,954.97 Total Current Assets 1,194,790.54 Property and Equipment Land 509,949.32 Buildings 1,807,538.89 Furniture, equipment and machinery administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 3,538.58 Net Property and Equipment 1,530,847.22 Non Current Assets Other assets 150,000.00 Total Non Current Assets 150,000.00 Total Assets $ 2,875,637.76 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,117.87 Total Current Liabilities 1,117.87 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 11,188.58 315,816.81 2,873,212.53 $ 2,875,637.76 Denton Housing Authority Income Statement - Management Fund 1 Month and 8 Months Ended 5/31/2016 Current Month Year to Date Budget Variance Operating Revenues Management fees $ 4,930.11 $ 40,288.09 $ 56,544.00 $ 16,255.91 Investment income - unrestricted 23.71 158.95 100.00 (58.95) Other revenue 94,097.80 522,200.02 242,000.00 (280,200.02) Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 50,955.74 Total Operating Revenues 99,051.62 511,691.32 298,644.00 (213,047.32) Operating Expenses Administrative salaries 1,502.72 12,964.48 18,721.00 5,756.52 Auditing fees 0.00 0.00 3,500.00 3,500.00 Employee benefits - administrative 497.23 3,662.50 5,871.00 2,208.50 Office expenses 1,203.77 6,982.52 26,800.00 19,817.48 Legal expenses 245.00 26,125.11 10,000.00 (16,125.11) Travel 130.91 4,172.38 10,000.00 5,827.62 Other admin. 5,530.42 43,535.05 14,500.00 (29,035.05) Total Administrative 9,110.05 97,442.04 89,392.00 (8,050.04) Water 523.38 2,190.11 7,500.00 5,309.89 Electricity 1,396.87 10,884.84 18,000.00 7,115.16 Sewer 162.90 1,122.96 3,000.00 1,877.04 Total Utilities 2,083.15 14,197.91 28,500.00 14,302.09 Maintenance labor 1,160.98 10,055.02 15,015.00 4,959.98 Maintenance materials 531.40 5,282.29 10,000.00 4,717.71 Maintenance contracts 3,251.88 18,503.51 53,500.00 34,996.49 Employee benefits - maintenance 622.57 4,469.20 4,710.00 240.80 Total Maintenance 5,566.83 38,310.02 83,225.00 44,914.98 Property insurance 0.00 2,036.63 5,000.00 2,963.37 Liability insurance 0.00 71.86 0.00 (71.86) Workmen's compensation 0.00 854.42 0.00 (854.42) All other insurance 0.00 640.25 0.00 (640.25) Total Insurance 0.00 3,603.16 5,000.00 1,396.84 Protective services - other contract costs 273.70 3,148.39 3,500.00 351.61 Total Protective Services 273.70 3,148.39 3,500.00 351.61 Other general expenses 4.75 3,944.75 5,000.00 1,055.25 Total General Expenses 4.75 3,944.75 5,000.00 1,055.25 Total Operating Expenses 17,038.48 160,646.27 214,617.00 53,970.73 Operating Income (Loss) 82,013.14 351,045.05 84,027.00 (267,018.05) Other Financial Items Transfers between programs and projects - out 24,039.66 24,039.66 0.00 (24,039.66) Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 7,650.00 11,188.58 10,000.00 (1,188.58) Total Other Financial Items 31,689.66 35,228.24 20,000.00 (15,228.24) Net Income (Loss) $ 50,323.48 $ 315,816.81 $ 64,027.00 $ (251,789.81) Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of May 31, 2016 Assets Current Assets Cash -unrestricted $ 960,632.57 Accounts receivable - tenants (net) (3,109.85) Prepaid expenses and other assets 592.59 Inventories (net) 5,166.66 Total Current Assets 963,281.97 Property and Equipment Land 334,002.00 Buildings 3,841,127.68 Furniture, equipment and machinery - administration 38,439.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,089,681.39 Total Assets $ 2,052,963.36 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,150.00 Inter program - due to 27,122.42 Total Current Liabilities 51,911.92 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 56,861.93 1,087,781.39 820,826.24 1,900.00 85,593.80 1,996,101.43 $ 2,052,963.36 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 8 Months Ended 5/31/2016 Current Month Year to Date Budget Operating Revenues Variance Net tenant rental revenue $ 60,281.00 $ 489,938.00 $ 667,800.00 $ 177,862.00 Tenant revenue - other 65.00 1,078.05 0.00 (1,078.05) Investment income - unrestricted 181.83 1,041.65 400.00 (641.65) Other revenue 556.86 1,964.41 2,500.00 535.59 Total Operating Revenues 61,084.69 494,022.11 670,700.00 176,677.89 Operating Expenses Administrative salaries 9,181.32 72,983.59 114,352.00 Auditing fees 0.00 0.00 4,000.00 Management fees 4,147.65 33,892.33 46,746.00 Advertising and marketing 0.00 242.50 0.00 Employee benefits - administrative 2,504.26 20,318.70 39,401.00 Office expenses 1,869.79 12,152.14 28,500.00 Legal expenses 0.00 0.00 1,000.00 Travel 566.05 2,029.51 7,000.00 Other admin. 392.05 3,529.88 11,000.00 Total Administrative 18,661.12 145,148.65 251,999.00 Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 1,100.74 1,100.74 1,319.93 844.16 250.82 1,824.36 4,239.27 9,601.14 4,716.52 4,835.29 5,090.60 24.243.55 0.00 0.00 0.00 0.00 0.00 0.00 8.91 8.91 48,253.59 12,831.10 0.00 3,726.50 3,726.50 9,326.13 8,351.78 2,792.12 12,896.08 33,366.11 80,639.50 33,343.49 61,899.96 35,588.71 211,471.66 5,554.81 195.99 2,313.19 1,698.90 9,762.89 1,475.95 1,475.95 1,576.55 1,576.55 406,528.31 87,493.80 1,900.00 0.00 1,900.00 $ 12,831.10 $ 85,593.80 Urlaub & Co., PLLC See Accountant's Compilation Report 15 6,000.00 6,000.00 18,000.00 17,000.00 8,500.00 23,000.00 66,500.00 124,982.00 50,000.00 90,000.00 43,064.00 308,046.00 13,000.00 0.00 0.00 0.00 13.000.00 3,000.00 3.000.00 0.00 0.00 648,545.00 22,155.00 18,000.00 $ 4,155.00 41,368.41 4,000.00 12,853.67 (242.50) 19,082.30 16,347.86 1,000.00 4,970.49 7,470.12 106,850.35 2,273.50 2,273.50 8,673.87 8,648.22 5,707.88 10,103.92 33,133.89 44,342.50 16,656.51 28,100.04 7,475.29 96,574.34 7,445.19 (195.99) (2,313.19) (1,698.90) 3.237.11 1,524.05 1.524.05 (1,576.55) (1,576.55) 242,016.69 (65,338.80) 16,100.00 $ (81,438.80) Denton Housing Authority Balance Sheet - Disaster Funds As of May 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities 0.00 Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 8 Months Ended 5/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of May 31, 2016 Assets Current Assets Cash -unrestricted $ 29,521.63 Prepaid expenses and other assets 79.02 Inventories (net) 359.88 Total Current Assets 29,960.53 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Construction in progress 16,289.66 Net Property and Equipment 941,549.84 Total Assets $ 971,510.37 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 3,950.00 Inter program - due to 35,317.82 Total Current Liabilities 39,979.15 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 40,879.23 917,510.18 (29,028.47) 24,039.66 18,109.77 930,631.14 $ 971,510.37 Denton Housing Authority Income Statement - Pecan Place 1 Month and 8 Months Ended 5/31/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 2,500.00 Management fees 782.46 Net tenant rental revenue $ 11,178.00 $ 91,636.00 $ 137,169.00 $ 45,533.00 Tenant revenue - other 55.00 205.00 0.00 (205.00) Investment income - unrestricted 0.78 6.91 30.00 23.09 Other revenue 0.00 0.00 100.00 100.00 Total Operating Revenues 11,233.78 91,847.91 137,299.00 45,451.09 Operating Expenses Administrative salaries 2,045.88 17,156.01 25,860.00 Auditing fees 0.00 0.00 2,500.00 Management fees 782.46 6,395.76 9,798.00 Employee benefits - administrative 377.33 2,363.05 6,191.00 Office expenses 1,147.54 4,763.05 10,500.00 Legal expenses 0.00 0.00 500.00 Travel 34.15 109.98 1,400.00 Other admin. 154.61 1,920.37 5,500.00 Total Administrative 4,541.97 32,708.22 62,249.00 Relocation costs Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Transfer between programs and projects - in Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 44.19 44.19 212.18 549.46 166.84 999.99 1,107.88 642.52 0.00 0.00 0.00 0.00 0.00 0.00 35.52 762.37 797.89 1,828.59 3,795.76 1,833.90 2.115.40 9,573.65 8,654.26 4,680.94 8,585.76 3.831.19 25.752.15 980.92 34.60 409.69 327.88 1,753.09 3,151.95 3,151.95 1.19 1.19 1.19 1.19 9,047.44 73,738.14 2,186.34 18,109.77 (24,039.66) (24,039.66) 0.00 0.00 3,477.38 24,039.66 (20,562.28) 0.00 $ 22,748.62 $ 18,109.77 Urlaub & Co., PLLC See Accountant's Compilation Report 19 0.00 1.200.00 1,200.00 3,000.00 7,000.00 4,500.00 3,000.00 17,500.00 12,932.00 3,500.00 20,000.00 3,096.00 39,528.00 2,330.00 0.00 0.00 0.00 2,330.00 2,000.00 2,000.00 0.00 0.00 124,807.00 12,492.00 0.00 3,000.00 $ 9,492.00 8,703.99 2,500.00 3,402.24 3,827.95 5,736.95 500.00 1,290.02 3.579.63 29,540.78 (35.52) 437.63 402.11 1,171.41 3,204.24 2,666.10 4,277.74 (1,180.94) 11,414.24 (735.19) 13,775.85 1,349.08 (34.60) (409.69) (327.88) 576.91 (1,151.95) (1,151.95) (1.19) (1.19) 51,068.86 (5,617.77) 24,039.66 3,000.00 (24,039.66) 3,000.00 $ (8,617.77) Darton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 18,456.31 11,462.83 29,491.33 47,650.08 47,650.08 47,650.08 47,650.08 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 914,727.00 905,828.00 7,019,674.00 Interest Income - - - - - - - - - Void Checks -HAP - - - - - - - - - FSS Forfeitures - - - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1,008.50 152.50 867.50 4,063.98 Total Revenue 879,883.87 875292.37 875,592.87 920278.37 752,404.00 898,711.50 914,879.50 906,695.50 7,023,737.98 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 7151 681 33 Fraud Bad Debt HAP Porti, Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 - - - - 7151 681 33 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 (138,039.00) (6,993.48) 18,028.50 18,158.75 - - - - (127,943.35) Ending HAP Equity 166.36530 161.55707 138.51894 156.49531 18A56.31 11.462.83 29.491.33 47.650.08 47.650.08 47.650.08 47.650.08 47.650.08 47.650.08 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 479,398.05 469,405.38 481,034.05 481,034.05 481,034.05 481,034.05 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,09600 93,978.00 94,465.00 93,491.00 94,878.00 743,777.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 1908. 516.83 648.45 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 33,009.14 43,593.64 214,216.88 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1,008.50 152.50 867.50 4,064.02 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 126,671.72 139,855.97 962,706.35 Expenses: Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,08021 136,664.39 128,227.30 879,356.43 Depreciation Expense - - - - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,08021 136,664.39 128227.30 - - - - 879,356.43 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 16,087.21 (9,992.67) 11,628.67 - - - - 83,349.92 Ending Admin Equity 410.06059 424.79403 429.05644 450.04533 463.31084 479.39805 469.40538 481.03405 481.03405 481.03405 481.03405 481.03405 402.39660 Restricted 47,650.08 Unrestricted 402,396.60 Investment in Net Capital Assets 122,669.75 Total Equity 572,716.43 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10,104,344 10,104,344 HUD -held Program Reserve 1,0,09,763 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,252,626 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of June 30, 2016, and the related income statement for the 1 Month and 9 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC July 14, 2016 Denton Housing Authority Balance Sheet - Combining As of .lune 30, 2016 Assets Urlaub & Co., PLLC See Accountant's Compilation Report 3 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 431,996.13 $ 760,062.89 $ 976,168.58 $ 0.00 $ 35,970.86 $ 2,204,198.46 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 19,867.14 0.00 0.00 0.00 0.00 19,867.14 Accounts receivable - miscellaneous (net) (7,234.24) 216,002.93 0.00 0.00 0.00 208,768.69 Accounts receivable - tenants (net) 0.00 0.00 (3,055.85) 0.00 0.00 (3,055.85) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 0.00 192,472.32 0.00 0.00 0.00 192,472.32 Prepaid expenses and other assets 20,933.04 284.43 533.33 0.00 71.12 21,821.92 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from 63,394.29 21,331.93 0.00 0.00 0.00 84,726.22 Total Current Assets 529,874.70 1,191,019.31 978,812.72 81,827.31 36,401.86 2,817,935.90 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 1,002,960.45 Buildings 205,955.95 1,807,538.89 3,841,127.68 0.00 2,336,692.63 8,191,315.15 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 62,090.68 0.00 10,059.64 320,567.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 3,538.58 0.00 0.00 16,289.66 19,828.24 Net Property and Equipment 122,669.75 1,530,847.22 1,113,332.39 0.00 941,549.84 3,708,399.20 Non Current Assets Other assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Non Current Assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Assets $ 652,544.45$ 2,871,866.53 $ 2,092,145.11 $ 81,827.31 $ 977,951.70 $ 6,676,335.10 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Balance Sheet - Combining Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 As of .lune 30, 2016 917,510.18 3,851,376.22 Unrestricted 397,684.13 Liabilities and Net Position 820,826.24 0.00 (29,028.47) 2,012,274.14 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total 81,827.31 Fund 257,420.74 Capital expenditurescontra 0.00 Current Liabilities 25,551.00 0.00 24,039.66 60,779.24 Accrued wage/payroll taxes payable $ 2,597.28 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2,597.28 Accrued compensated absences - current portion 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 Tenant security deposits 0.00 0.00 21,150.00 0.00 4,100.00 25,250.00 Unearned revenue 3,773.00 0.00 0.00 0.00 0.00 3,773.00 Inter program - due to (10,760.47) 0.00 55,273.93 0.00 40,212.76 84,726.22 Total Current Liabilities 13,829.24 1,117.87 80,063.43 0.00 45,024.09 140,034.63 Long -Term Liabilities Accrued compensated absences - noncurrent 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Long -Term Liabilities 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Liabilities 36,027.31 2,425.23 85,013.44 0.00 45,924.17 169,390.15 Net Position Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 Unrestricted 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 Restricted 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 Capital expenditurescontra 0.00 11,188.58 25,551.00 0.00 24,039.66 60,779.24 Net income (loss) (79,430.17) 312,045.58 72,973.04 0.00 19,506.16 325,094.61 Total Net Position 616,517.14 2,869,441.30 2,007,131.67 81,827.31 932,027.53 6,506,944.95 Total Liabilities and Net Position $ 652,544.45 $ 2,871,866.53 $ 2,092,145.11 $ 81,827.31 $ 977,951.70 $ 6,676,335.10 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement -Combining 9 Months Ended 6/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 549,420.00 $ 0.00 $ 103,300.00 $ 652,720.00 Tenant revenue - other 0.00 0.00 1,294.05 0.00 205.00 1,499.05 HUD PHA operating grants 8,740,656.00 0.00 0.00 0.00 0.00 8,740,656.00 Management fees 0.00 41,104.57 0.00 0.00 0.00 41,104.57 Investment income - unrestricted 666.95 217.43 1,230.82 0.00 8.33 2,123.53 Fraud recovery 9,002.00 0.00 0.00 0.00 0.00 9,002.00 Other revenue 256,701.25 535,400.02 1,964.41 0.00 0.00 794,065.68 Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 0.00 0.00 (50,955.74) Total Operating Revenues 9,007,026.20 525,766.28 553,909.28 0.00 103,513.33 10,190,215.09 Operating Expenses Administrative salaries 433,771.20 15,349.08 81,922.67 0.00 19,093.94 550,136.89 Management fees 0.00 0.00 33,892.33 0.00 7,212.24 41,104.57 Advertising and marketing 150.04 0.00 269.90 0.00 0.00 419.94 Employee benefits - administrative 138,389.07 4,279.88 22,887.42 0.00 2,689.21 168,245.58 Office expenses 143,721.74 7,795.95 15,159.71 0.00 5,599.19 172,276.59 Legal expenses 0.00 26,125.11 0.00 0.00 0.00 26,125.11 Travel 10,351.93 4,159.81 2,005.94 0.00 106.83 16,624.51 Other admin. 25,298.66 49,064.92 4,486.43 0.00 2,223.98 81,073.99 Total Administrative 751,682.64 106,774.75 160,624.40 0.00 36,925.39 1,056,007.18 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 4,163.13 0.00 762.37 4,925.50 Total Tenant Services 0.00 0.00 4,163.13 0.00 797.89 4,961.02 Water 0.00 2,850.75 10,586.99 0.00 2,286.94 15,724.68 Electricity 0.00 12,246.62 9,382.21 0.00 5,017.19 26,646.02 Gas 0.00 0.00 3,273.09 0.00 2,119.28 5,392.37 Sewer 0.00 1,331.96 14,653.75 0.00 2,648.64 18,634.35 Total Utilities 0.00 16,429.33 37,896.04 0.00 12,072.05 66,397.42 Maintenance labor 0.00 11,234.03 90,377.41 0.00 9,666.27 111,277.71 Maintenance materials 1,167.83 5,566.01 37,745.58 0.00 5,070.50 49,549.92 Maintenance contracts 2,359.40 22,111.08 70,287.60 0.00 9,808.76 104,566.84 Employee benefits - maintenance 0.00 5,110.00 40,889.24 0.00 4,380.38 50,379.62 Total Maintenance 3,527.23 44,021.12 239,299.83 0.00 28,925.91 315,774.09 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 9 Months Ended 6/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Property insurance 3,501.64 2,036.63 5,554.81 0.00 980.92 12,074.00 Liability insurance 123.55 71.86 195.99 0.00 34.60 426.00 Workmen's compensation 1,588.95 854.42 2,313.19 0.00 409.69 5,166.25 All other insurance 1,089.97 640.25 1,698.90 0.00 327.88 3,757.00 Total Insurance 6,304.11 3,603.16 9,762.89 0.00 1,753.09 21,423.25 Protective services - other contract costs 0.00 3,719.35 2,062.40 0.00 3,531.65 9,313.40 Total Protective Services 0.00 3,719.35 2,062.40 0.00 3,531.65 9,313.40 Other general expenses 11,592.68 3,944.75 1,576.55 0.00 1.19 17,115.17 Total General Expenses 11,592.68 3,944.75 1,576.55 0.00 1.19 17,115.17 Housing assistance payments 8,077,093.71 0.00 0.00 0.00 0.00 8,077,093.71 HAP portability -in 236,256.00 0.00 0.00 0.00 0.00 236,256.00 Total Housing Assistance Payments 8,313,349.71 0.00 0.00 0.00 0.00 8,313,349.71 Total Operating Expenses 9,086,456.37 178,492.46 455,385.24 0.00 84,007.17 9,804,341.24 Operating Income (Loss) (79,430.17) 347,273.82 98,524.04 0.00 19,506.16 385,873.85 Other Financial Items Transfer between programs and projects - in 0.00 0.00 0.00 0.00 (24,039.66) (24,039.66) Transfers between programs and projects - out 0.00 24,039.66 0.00 0.00 0.00 24,039.66 Replacement of equipment 0.00 0.00 25,551.00 0.00 0.00 25,551.00 Property betterments & additions 0.00 11,188.58 0.00 0.00 24,039.66 35,228.24 Total Other Financial Items 0.00 35,228.24 25,551.00 0.00 0.00 60,779.24 Net Income (Loss) J_(72,430.171 $ 312,045.58 $ 72,973.04 $ 0.00 $ 19,506.16 $ 325,094.61 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of June 30, 2016 Assets Current Assets Cash -unrestricted $ 431,996.13 Accounts receivable - PHA projects 19,867.14 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Prepaid expenses and other assets 20,933.04 Inter program - due from 63,394.29 Total Current Assets 529,874.70 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 652,544.45 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 2,597.28 18,219.43 3,773.00 (10,760.47) 13,829.24 22,198.07 22,198.07 36,027.31 122,669.75 397,684.13 175,593.43 (79,430.17) 616,517.14 $ 652,544.45 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 6/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 94,878.00 $ 882,327.00 $ 977,205.00 Investment income - unrestricted 18.50 0.00 18.50 Fraud recovery 437.00 437.00 874.00 Other revenue 42,484.37 0.00 42,484.37 Total Operating Revenues 137,817.87 882,764.00 1,020,581.87 Operating Expenses Administrative salaries 48,184.39 0.00 48,184.39 Employee benefits - administrative 15,891.08 0.00 15,891.08 Office expenses 19,411.23 0.00 19,411.23 Travel (36.87) 0.00 (36.87) Other admin. 3,829.93 0.00 3,829.93 Total Administrative 87,279.76 0.00 87,279.76 Maintenance materials 240.16 0.00 240.16 Maintenance contracts 614.72 0.00 614.72 Total Maintenance 854.88 0.00 854.88 Housing assistance payments 0.00 925,412.38 925,412.38 HAP portability -in 40,333.00 0.00 40,333.00 Total Housing Assistance Payments 40,333.00 925,412.38 965,745.38 Other general expenses 1,538.59 0.00 1,538.59 Total General Expenses 1,538.59 0.00 1,538.59 Total Operating Expenses 130,006.23 925,412.38 1,055,418.61 Operating Income (Loss) 7,811.64 (42,648.38) (34,836.74) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 7,811.64 $ (42,648.38) $ (34,836.74) Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 433,771.20 597,204.00 163,432.80 1 Month and 9 Months Ended 6/30/2016 0.00 0.00 12,000.00 Current Year to Advertising and marketing 0.00 150.04 Month Date Budget Variance Operating Revenues 138,389.07 189,391.00 51,001.93 HUD PHA operating grants $ 977,205.00 $ 8,740,656.00 $ 10,173,739.00 $ 1,433,083.00 Investment income - unrestricted 18.50 666.95 100.00 (566.95) Fraud recovery 874.00 9,002.00 2,000.00 (7,002.00) Other revenue 42,484.37 256,701.25 10,000.00 (246,701.25) Total Operating Revenues 1,020,581.87 9,007,026.20 10,185,839.00 1,178,812.80 Operating Expenses Administrative salaries 48,184.39 433,771.20 597,204.00 163,432.80 Auditing fees 0.00 0.00 12,000.00 12,000.00 Advertising and marketing 0.00 150.04 0.00 (150.04) Employee benefits - administrative 15,891.08 138,389.07 189,391.00 51,001.93 Office expenses 19,411.23 143,721.74 203,500.00 59,778.26 Travel (36.87) 10,351.93 17,000.00 6,648.07 Other admin. 3,829.93 25,298.66 43,000.00 17,701.34 Total Administrative 87,279.76 751,682.64 1,062,095.00 310,412.36 Maintenance materials 240.16 1,167.83 5,000.00 3,832.17 Maintenance contracts 614.72 2,359.40 5,000.00 2,640.60 Total Maintenance 854.88 3,527.23 10,000.00 6,472.77 Property insurance 0.00 3,501.64 8,411.00 4,909.36 Liability insurance 0.00 123.55 0.00 (123.55) Workmen's compensation 0.00 1,588.95 0.00 (1,588.95) All other insurance 0.00 1,089.97 0.00 (1,089.97) Total Insurance 0.00 6,304.11 8,411.00 2,106.89 Housing assistance payments 925,412.38 8,077,093.71 9,162,932.00 1,085,838.29 HAP portability -in 40,333.00 236,256.00 0.00 (236,256.00) Total Housing Assistance Payments 965,745.38 8,313,349.71 9,162,932.00 849,582.29 Other general expenses 1,538.59 11,592.68 1,000.00 (10,592.68) Total General Expenses 1,538.59 11,592.68 1,000.00 (10,592.68) Total Operating Expenses 1,055,418.61 9,086,456.37 10,244,438.00 1,157,981.63 Operating Income (Loss) (34,836.74) (79,430.17) (58,599.00) 20,831.17 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ (34,836.74) $ (79,430.17) $ (61,599.00) $ 17,831.17 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 9 Months Ended 6/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 838,655.00 $ 7,902,001.00 $ 8,740,656.00 Investment income - unrestricted 666.95 0.00 666.95 Fraud recovery 4,501.02 4,500.98 9,002.00 Other revenue 256,701.25 0.00 256,701.25 Total Operating Revenues 1,100,524.22 7,906,501.98 9,007,026.20 Operating Expenses Administrative salaries 433,771.20 0.00 433,771.20 Advertising and marketing 150.04 0.00 150.04 Employee benefits - administrative 138,389.07 0.00 138,389.07 Office expenses 143,721.74 0.00 143,721.74 Travel 10,351.93 0.00 10,351.93 Other admin. 25,298.66 0.00 25,298.66 Total Administrative 751,682.64 0.00 751,682.64 Maintenance materials 1,167.83 0.00 1,167.83 Maintenance contracts 2,359.40 0.00 2,359.40 Total Maintenance 3,527.23 0.00 3,527.23 Property insurance 3,501.64 0.00 3,501.64 Liability insurance 123.55 0.00 123.55 Workmen's compensation 1,588.95 0.00 1,588.95 All other insurance 1,089.97 0.00 1,089.97 Total Insurance 6,304.11 0.00 6,304.11 Housing assistance payments 0.00 8,077,093.71 8,077,093.71 HAP portability -in 236,256.00 0.00 236,256.00 Total Housing Assistance Payments 236,256.00 8,077,093.71 8,313,349.71 Other general expenses 11,592.68 0.00 11,592.68 Total General Expenses 11,592.68 0.00 11,592.68 Total Operating Expenses 1,009,362.66 8,077,093.71 9,086,456.37 Operating Income (Loss) 91,161.56 (170,591.73) (79,430.17) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 91,161.56 $ (170,591.73) $ (79,430.17) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of June 30, 2016 Assets Current Assets Cash -unrestricted $ 760,062.89 Accounts receivable - miscellaneous (net) 216,002.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 284.43 Inter program - due from 21,331.93 Total Current Assets 1,191,019.31 Property and Equipment Land 509,949.32 Buildings 1,807,538.89 Furniture, equipment and machinery administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 3,538.58 Net Property and Equipment 1,530,847.22 Non Current Assets Other assets 150,000.00 Total Non Current Assets 150,000.00 Total Assets $ 2,871,866.53 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,117.87 Total Current Liabilities 1,117.87 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 11,188.58 312,045.58 2,869,441.30 $ 2,871,866.53 Denton Housing Authority Income Statement - Management Fund 1 Month and 9 Months Ended 6/30/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 3,500.00 3,500.00 Management fees $ 816.48 $ 41,104.57 $ 56,544.00 $ 15,439.43 Investment income - unrestricted 58.48 217.43 100.00 (117.43) Other revenue 13,200.00 535,400.02 242,000.00 (293,400.02) Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 50,955.74 Total Operating Revenues 14,074.96 525,766.28 298,644.00 (227,122.28) Operating Expenses Administrative salaries 2,384.60 15,349.08 18,721.00 3,371.92 Auditing fees 0.00 0.00 3,500.00 3,500.00 Employee benefits - administrative 617.38 4,279.88 5,871.00 1,591.12 Office expenses 813.43 7,795.95 26,800.00 19,004.05 Legal expenses 0.00 26,125.11 10,000.00 (16,125.11) Travel (12.57) 4,159.81 10,000.00 5,840.19 Other admin. 5,529.87 49,064.92 14,500.00 (34,564.92) Total Administrative 9,332.71 106,774.75 89,392.00 (17,382.75) Water 660.64 2,850.75 7,500.00 4,649.25 Electricity 1,361.78 12,246.62 18,000.00 5,753.38 Sewer 209.00 1,331.96 3,000.00 1,668.04 Total Utilities 2,231.42 16,429.33 28,500.00 12,070.67 Maintenance labor 1,179.01 11,234.03 15,015.00 3,780.97 Maintenance materials 283.72 5,566.01 10,000.00 4,433.99 Maintenance contracts 3,607.57 22,111.08 53,500.00 31,388.92 Employee benefits - maintenance 640.80 5,110.00 4,710.00 (400.00) Total Maintenance 5,711.10 44,021.12 83,225.00 39,203.88 Property insurance 0.00 2,036.63 5,000.00 2,963.37 Liability insurance 0.00 71.86 0.00 (71.86) Workmen's compensation 0.00 854.42 0.00 (854.42) All other insurance 0.00 640.25 0.00 (640.25) Total Insurance 0.00 3,603.16 5,000.00 1,396.84 Protective services - other contract costs 570.96 3,719.35 3,500.00 (219.35) Total Protective Services 570.96 3,719.35 3,500.00 (219.35) Other general expenses 0.00 3,944.75 5,000.00 1,055.25 Total General Expenses 0.00 3,944.75 5,000.00 1,055.25 Total Operating Expenses 17,846.19 178,492.46 214,617.00 36,124.54 Operating Income (Loss) (3,771.23) 347,273.82 84,027.00 (263,246.82) Other Financial Items Transfers between programs and projects - out 0.00 24,039.66 0.00 (24,039.66) Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 0.00 11,188.58 10,000.00 (1,188.58) Total Other Financial Items 0.00 35,228.24 20,000.00 (15,228.24) Net Income (Loss) $ (3,771.23) $ 312,045.58 $ 64,027.00 $ (248,018.58) Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of June 30, 2016 Assets Current Assets Cash -unrestricted $ 976,168.58 Accounts receivable - tenants (net) (3,055.85) Prepaid expenses and other assets 533.33 Inventories (net) 5,166.66 Total Current Assets 978,812.72 Property and Equipment Land 334,002.00 Buildings 3,841,127.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,113,332.39 Total Assets $ 2,092,145.11 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,150.00 Inter program - due to 55,273.93 Total Current Liabilities 80,063.43 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 85,013.44 1,087,781.39 820,826.24 25,551.00 72,973.04 2,007,131.67 $ 2,092,145.11 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 9 Months Ended 6/30/2016 Current Month Year to Date Budget Operating Revenues Variance Net tenant rental revenue $ 59,482.00 $ 549,420.00 $ 667,800.00 $ 118,380.00 Tenant revenue - other 216.00 1,294.05 0.00 (1,294.05) Investment income - unrestricted 189.17 1,230.82 400.00 (830.82) Other revenue 0.00 1,964.41 2,500.00 535.59 Total Operating Revenues 59,887.17 553,909.28 670,700.00 116,790.72 Operating Expenses Administrative salaries 8,939.08 81,922.67 114,352.00 Auditing fees 0.00 0.00 4,000.00 Management fees 0.00 33,892.33 46,746.00 Advertising and marketing 27.40 269.90 0.00 Employee benefits - administrative 2,568.72 22,887.42 39,401.00 Office expenses 3,007.57 15,159.71 28,500.00 Legal expenses 0.00 0.00 1,000.00 Travel (23.57) 2,005.94 7,000.00 Other admin. 956.55 4,486.43 11,000.00 Total Administrative 15,475.75 160,624.40 251,999.00 Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 436.63 436.63 1,260.86 1,030.43 480.97 1.757.67 4,529.93 9,737.91 4,402.09 8,387.64 5,300.53 27.828.17 0.00 0.00 0.00 0.00 0.00 586.45 586.45 0.00 0.00 48,856.93 11,030.24 23,651.00 0.00 23,651.00 $ (12,620.76) 4,163.13 4,163.13 10,586.99 9,382.21 3,273.09 14,653.75 37,896.04 90,377.41 37,745.58 70,287.60 40,889.24 239,299.83 5,554.81 195.99 2,313.19 1,698.90 9,762.89 2,062.40 2,062.40 1,576.55 1.576.55 455,385.24 98,524.04 25,551.00 $ 72,973.04 Urlaub & Co., PLLC See Accountant's Compilation Report 15 6,000.00 6,000.00 18,000.00 17,000.00 8,500.00 23,000.00 66,500.00 124,982.00 50,000.00 90,000.00 43,064.00 308,046.00 13,000.00 0.00 0.00 0.00 13,000.00 3,000.00 3,000.00 0.00 0.00 648,545.00 22,155.00 18,000.00 $ 4,155.00 32,429.33 4,000.00 12,853.67 (269.90) 16,513.58 13,340.29 1,000.00 4,994.06 6,513.57 91,374.60 1,836.87 1,836.87 7,413.01 7,617.79 5,226.91 8,346.25 28,603.96 34,604.59 12,254.42 19,712.40 2,174.76 68,746.17 7,445.19 (195.99) (2,313.19) 1 6( 98.90) 3.237.11 937.60 937.60 (1,576.55) (1,576.55) 193,159.76 (76,369.04) (7,551.00) $ (68,818.04) Denton Housing Authority Balance Sheet - Disaster Funds As of June 30, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 9 Months Ended 6/30/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of June 30, 2016 Assets Current Assets Cash -unrestricted $ 35,970.86 Prepaid expenses and other assets 71.12 Inventories (net) 359.88 Total Current Assets 36,401.86 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Construction in progress 16,289.66 Net Property and Equipment 941,549.84 Total Assets $ 977,951.70 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 4,100.00 Inter program - due to 40,212.76 Total Current Liabilities 45,024.09 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 45,924.17 917,510.18 (29,028.47) 24,039.66 19,506.16 932,027.53 $ 977,951.70 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Management fees Employee benefits - administrative Office expenses Legal expenses Travel Other admin. Total Administrative Relocation costs Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Transfer between programs and projects - in Replacement of equipment Property betterments & additions Total Other Financial Items Denton Housing Authority Income Statement - Pecan Place 1 Month and 9 Months Ended 6/30/2016 Current Month Year to Date $ 11,664.00 $ 103,300.00 0.00 205.00 1.42 8.33 1,937.93 0.00 816.48 326.16 836.14 0.00 (3.15) 0.00 0.00 0.00 458.35 1,221.43 285.38 533.24 2,498.40 1,012.01 389.56 1,223.00 549.19 3,173.76 0.00 0.00 0.00 0.00 0.00 379.70 379.70 0.00 0.00 10,269.03 1,396.39 0.00 0.00 0.00 19,093.94 0.00 7,212.24 2,689.21 5,599.19 0.00 106.83 2,223.98 36,925.39 35.52 762.37 797.89 2,286.94 5,017.19 2,119.28 2.648.64 12,072.05 9,666.27 5,070.50 9,808.76 4,380.38 28.925.91 980.92 34.60 409.69 3,531.65 3,531.65 1.19 1.19 84,007.17 19,506.16 (24,039.66) 0.00 24,039.66 Net Income (Loss) $ 1,396.39 $ 19,506.16 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Budget Variance $ 137,169.00 $ 33,869.00 0.00 (205.00) 30.00 21.67 25,860.00 2,500.00 9,798.00 6,191.00 10,500.00 500.00 1,400.00 5,500.00 62,249.00 0.00 1,200.00 1,200.00 3,000.00 7,000.00 4,500.00 3,000.00 17,500.00 12,932.00 3,500.00 20,000.00 3,096.00 39,528.00 2,330.00 0.00 0.00 0.00 2,330.00 2,000.00 2,000.00 0.00 124,807.00 12,492.00 0.00 3,000.00 $ 9,492.00 6,766.06 2,500.00 2,585.76 3,501.79 4,900.81 500.00 1,293.17 3.276.02 25,323.61 (35.52) 402.11 713.06 1,982.81 2,380.72 3,265.73 (1,570.50) 10,191.24 (1,284.38) 10,602.09 1,349.08 (34.60) (409.69) (327.88) 576.91 (1,531.65) (1,531.65) (1.19) (1.19) 40,799.83 (7,014.16) 24,039.66 3,000.00 (24,039.66) 3,000.00 $ (10,014.16) Darton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 18,456.31 11,462.83 29,491.33 47,650.08 5,001.70 5,001.70 5,001.70 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 914,727.00 905,828.00 882,327.00 7,902,001.00 Interest Income - - - - - - - - - - Void Checks -HAP - - - - - - - - - - FSS Forfeitures - - - - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1,008.50 152.50 867.50 437.00 4,500.98 Total Revenue 879,883.87 875292.37 875,592.87 920278.37 752,404.00 898,711.50 914,879.50 906,695.50 882,764.00 7,906,501.98 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 925,412.38 8,077,093.71 Fraud Bad Debt HAP Porti, Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 925,412.38 - - - 8,077,093.71 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 (138,039.00) (6,993.48) 18,028.50 18,158.75 (42,648.38) - - - (170,591.73) Ending HAP Equity 166.36530 161.55707 138.51894 156.49531 18A56.31 11.462.83 29.491.33 47.650.08 5.001.70 5.001.70 5.001.70 5.001.70 5.001.70 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 479,398.05 469,405.38 481,034.05 488,845.69 488,845.69 488,845.69 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,09600 93,978.00 94,465.00 93,491.00 94,878.00 94,878.00 838,655.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 1908. 516.83 18.50 666.95 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 33,009.14 43,593.64 42,484.37 256,701 25 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1,008.50 152.50 867.50 437.00 4,501.02 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 126,671.72 139,855.97 137,817.87 1,100,524.22 Expenses: Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,08021 136,664.39 128,227.30 130,00623 1,009,362.66 Depreciation Expense - - - - - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,08021 136,664.39 128227.30 130,00623 - - - 1,009,362.66 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 16,087.21 (9,992.67) 11,628.67 7,811.64 - - - 91,161.56 Ending Admin Equity 410.06059 424.79403 429.05644 450.04533 463.31084 479.39805 469.40538 481.03405 488.84569 488.84569 488.84569 488.84569 402.852.10 Restricted 5,001.70 Unrestricted 402,852.10 Investment in Net Capital Assets 122,669.75 Total Equity 530523.55 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10,104,344 10,104,344 HUD -held Program Reserve 1,031,715 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,274,578 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% 110% 107% $ 617.77 $ 599.83 98% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of July 31, 2016, and the related income statement for the 1 Month and 10 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC August 22, 2016 Denton Housing Authority Balance Sheet - Combining As of July 31, 2016 Assets Urlaub & Co., PLLC See Accountant's Compilation Report 3 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 440,532.18 $ 746,413.56 $ 938,643.03 $ 0.00 $ 32,983.78 $ 2,158,572.55 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 30,466.72 0.00 0.00 0.00 0.00 30,466.72 Accounts receivable - miscellaneous (net) (7,234.24) 216,402.93 0.00 0.00 0.00 209,168.69 Accounts receivable - tenants (net) 0.00 0.00 (1,796.35) 0.00 0.00 (1,796.35) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 0.00 192,472.32 0.00 0.00 0.00 192,472.32 Prepaid expenses and other assets 23,457.99 252.82 474.07 0.00 63.22 24,248.10 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from 37,894.74 19,925.25 0.00 0.00 0.00 57,819.99 Total Current Assets 526,035.73 1,176,331.69 942,487.41 81,827.31 33,406.88 2,760,089.02 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 1,002,960.45 Buildings 205,955.95 1,807,538.89 3,855,527.68 0.00 2,336,692.63 8,205,715.15 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 62,090.68 0.00 10,059.64 320,567.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 3,538.58 0.00 0.00 16,289.66 19,828.24 Net Property and Equipment 122,669.75 1,530,847.22 1,127,732.39 0.00 941,549.84 3,722,799.20 Non Current Assets Other assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Non Current Assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Assets $ 648,705.48 $ 2,857,178.91 $2,070,219.80 $ 81,827.31 $ 974,956.72 $ 6,632,888.22 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Balance Sheet - Combining Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 As of July 31, 2016 917,510.18 3,851,376.22 Unrestricted 397,684.13 Liabilities and Net Position 820,826.24 0.00 (29,028.47) 2,012,274.14 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total 81,827.31 Fund 257,420.74 Capital expenditurescontra 0.00 Current Liabilities 39,951.00 0.00 24,039.66 75,179.24 Accrued wage/payroll taxes payable $ 2,051.77 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2,051.77 Accrued compensated absences - current portion 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 Tenant security deposits 0.00 0.00 21,150.00 0.00 3,950.00 25,100.00 Unearned revenue 5,005.00 0.00 0.00 0.00 0.00 5,005.00 Inter program - due to (12,949.61) 0.00 31,136.35 0.00 39,633.25 57,819.99 Total Current Liabilities 12,326.59 1,117.87 55,925.85 0.00 44,294.58 113,664.89 Long -Term Liabilities Accrued compensated absences - noncurrent 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Long -Term Liabilities 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Liabilities 34,524.66 2,425.23 60,875.86 0.00 45,194.66 143,020.41 Net Position Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 Unrestricted 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 Restricted 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 Capital expenditurescontra 0.00 11,188.58 39,951.00 0.00 24,039.66 75,179.24 Net income (loss) (81,766.49) 297,357.96 60,785.31 0.00 17,240.69 293,617.47 Total Net Position 614,180.82 2,854,753.68 2,009,343.94 81,827.31 929,762.06 6,489,867.81 Total Liabilities and Net Position $ 648,705.48 $ 2,857,178.91 $ 2,070,219.80 $ 81,827.31 $ 974,956.72 $ 6,632,888.22 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement -Combining 10 Months Ended 7/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 608,232.00 $ 0.00 $ 114,478.00 $ 722,710.00 Tenant revenue - other 0.00 0.00 1,571.55 0.00 205.00 1,776.55 HUD PHA operating grants 9,747,688.00 0.00 0.00 0.00 0.00 9,747,688.00 Management fees 0.00 46,045.24 0.00 0.00 0.00 46,045.24 Investment income - unrestricted 688.98 242.04 1,431.42 0.00 9.96 2,372.40 Fraud recovery 9,002.00 0.00 0.00 0.00 0.00 9,002.00 Other revenue 290,880.02 548,300.02 2,511.85 0.00 0.00 841,691.89 Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 0.00 0.00 (50,955.74) Total Operating Revenues 10,048,259.00 543,631.56 613,746.82 0.00 114,692.96 11,320,330.34 Operating Expenses Administrative salaries 471,296.10 19,381.36 91,149.16 0.00 21,142.16 602,968.78 Auditing fees 8,925.00 2,975.00 2,975.00 0.00 2,125.00 17,000.00 Management fees 0.00 0.00 38,050.54 0.00 7,994.70 46,045.24 Advertising and marketing 431.54 0.00 269.90 0.00 0.00 701.44 Employee benefits - administrative 149,589.63 4,957.38 25,177.42 0.00 2,978.96 182,703.39 Office expenses 157,824.99 8,450.13 16,404.88 0.00 6,080.80 188,760.80 Legal expenses 0.00 29,261.01 0.00 0.00 0.00 29,261.01 Travel 11,829.70 8,265.48 2,274.96 0.00 142.70 22,512.84 Other admin. 28,035.78 54,689.94 4,904.11 0.00 2,383.78 90,013.61 Total Administrative 827,932.74 127,980.30 181,205.97 0.00 42,848.10 1,179,967.11 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 4,253.37 0.00 795.78 5,049.15 Total Tenant Services 0.00 0.00 4,253.37 0.00 831.30 5,084.67 Water 0.00 3,419.88 11,860.17 0.00 2,536.09 17,816.14 Electricity 0.00 14,093.51 10,884.14 0.00 5,983.88 30,961.53 Gas 0.00 0.00 3,707.11 0.00 2,278.45 5,985.56 Sewer 0.00 1,491.50 16,425.33 0.00 2,937.81 20,854.64 Total Utilities 0.00 19,004.89 42,876.75 0.00 13,736.23 75,617.87 Maintenance labor 0.00 12,421.30 100,249.87 0.00 10,683.79 123,354.96 Maintenance materials 1,167.83 7,282.89 43,226.04 0.00 6,475.54 58,152.30 Maintenance contracts 2,677.52 23,758.49 80,969.50 0.00 11,933.04 119,338.55 Employee benefits - maintenance 0.00 5,678.72 45,586.07 0.00 4,864.88 56,129.67 Total Maintenance 3,845.35 49,141.40 270,031.48 0.00 33,957.25 356,975.48 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 10 Months Ended 7/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Property insurance 4,688.66 3,868.00 6,230.87 0.00 1,309.72 16,097.25 Liability insurance 165.45 136.49 219.85 0.00 46.21 568.00 Workmen's compensation 2,169.22 1,749.68 2,643.68 0.00 570.42 7,133.00 All other insurance 1,459.87 1,210.94 1,909.59 0.00 430.35 5,010.75 Total Insurance 8,483.20 6,965.11 11,003.99 0.00 2,356.70 28,809.00 Protective services - other contract costs 0.00 4,008.91 2,062.40 0.00 3,721.50 9,792.81 Total Protective Services 0.00 4,008.91 2,062.40 0.00 3,721.50 9,792.81 Other general expenses 13,319.32 3,944.75 1,576.55 0.00 1.19 18,841.81 Total General Expenses 13,319.32 3,944.75 1,576.55 0.00 1.19 18,841.81 Housing assistance payments 9,012,791.88 0.00 0.00 0.00 0.00 9,012,791.88 HAP portability -in 263,653.00 0.00 0.00 0.00 0.00 263,653.00 Total Housing Assistance Payments 9,276,444.88 0.00 0.00 0.00 0.00 9,276,444.88 Total Operating Expenses 10,130,025.49 211,045.36 513,010.51 0.00 97,452.27 10,951,533.63 Operating Income (Loss) (81,766.49) 332,586.20 100,736.31 0.00 17,240.69 368,796.71 Other Financial Items Transfer between programs and projects - in 0.00 0.00 0.00 0.00 (24,039.66) (24,039.66) Transfers between programs and projects - out 0.00 24,039.66 0.00 0.00 0.00 24,039.66 Replacement of equipment 0.00 0.00 39,951.00 0.00 0.00 39,951.00 Property betterments & additions 0.00 11,188.58 0.00 0.00 24,039.66 35,228.24 Total Other Financial Items 0.00 35,228.24 39,951.00 0.00 0.00 75,179.24 Net Income (Loss) $ (81,766.49) $ 297,357.96 $ 60,785.31 $ 0.00$ 17,240.69 $ 293,617.47 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of July 31, 2016 Assets Current Assets Cash -unrestricted $ 440,532.18 Accounts receivable - PHA projects 30,466.72 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Prepaid expenses and other assets 23,457.99 Inter program - due from 37,894.74 Total Current Assets 526,035.73 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 648,705.48 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 2,051.77 18,219.43 5,005.00 (12,949.61) 12,326.59 22,198.07 22,198.07 34,524.66 122,669.75 397,684.13 175,593.43 (81,766.49) 614,180.82 $ 648,705.48 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 7/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 95,494.00 $ 911,538.00 $ 1,007,032.00 Investment income - unrestricted 22.03 0.00 22.03 Other revenue 34,178.77 0.00 34,178.77 Total Operating Revenues 129,694.80 911,538.00 1,041,232.80 Operating Expenses Administrative salaries 37,524.90 0.00 37,524.90 Auditing fees 8,925.00 0.00 8,925.00 Advertising and marketing 281.50 0.00 281.50 Employee benefits - administrative 11,200.56 0.00 11,200.56 Office expenses 14,103.25 0.00 14,103.25 Travel 1,477.77 0.00 1,477.77 Other admin. 2,737.12 0.00 2,737.12 Total Administrative 76,250.10 0.00 76,250.10 Maintenance contracts 318.12 0.00 318.12 Total Maintenance 318.12 0.00 318.12 Property insurance 1,187.02 0.00 1,187.02 Liability insurance 41.90 0.00 41.90 Workmen's compensation 580.27 0.00 580.27 All other insurance 369.90 0.00 369.90 Total Insurance 2,179.09 0.00 2,179.09 Housing assistance payments 0.00 935,698.17 935,698.17 HAP portability -in 27,397.00 0.00 27,397.00 Total Housing Assistance Payments 27,397.00 935,698.17 963,095.17 Other general expenses 1,726.64 0.00 1,726.64 Total General Expenses 1,726.64 0.00 1,726.64 Total Operating Expenses 107,870.95 935,698.17 1,043,569.12 Operating Income (Loss) 21,823.85 (24,160.17) (2,336.32) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 21,823.85 $ (24,160.17) $ (2,336.32) Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 471,296.10 597,204.00 125,907.90 1 Month and 10 Months Ended 7/31/2016 8,925.00 8,925.00 12,000.00 Current Year to Advertising and marketing 281.50 431.54 Month Date Budget Variance Operating Revenues 149,589.63 189,391.00 39,801.37 HUD PHA operating grants $ 1,007,032.00 $ 9,747,688.00 $ 10,173,739.00 $ 426,051.00 Investment income - unrestricted 22.03 688.98 100.00 (588.98) Fraud recovery 0.00 9,002.00 2,000.00 (7,002.00) Other revenue 34,178.77 290,880.02 10,000.00 (280,880.02) Total Operating Revenues 1,041,232.80 10,048,259.00 10,185,839.00 137,580.00 Operating Expenses Administrative salaries 37,524.90 471,296.10 597,204.00 125,907.90 Auditing fees 8,925.00 8,925.00 12,000.00 3,075.00 Advertising and marketing 281.50 431.54 0.00 (431.54) Employee benefits - administrative 11,200.56 149,589.63 189,391.00 39,801.37 Office expenses 14,103.25 157,824.99 203,500.00 45,675.01 Travel 1,477.77 11,829.70 17,000.00 5,170.30 Other admin. 2,737.12 28,035.78 43,000.00 14,964.22 Total Administrative 76,250.10 827,932.74 1,062,095.00 234,162.26 Maintenance materials 0.00 1,167.83 5,000.00 3,832.17 Maintenance contracts 318.12 2,677.52 5,000.00 2,322.48 Total Maintenance 318.12 3,845.35 10,000.00 6,154.65 Property insurance 1,187.02 4,688.66 8,411.00 3,722.34 Liability insurance 41.90 165.45 0.00 (165.45) Workmen's compensation 580.27 2,169.22 0.00 (2,169.22) All other insurance 369.90 1,459.87 0.00 (1,459.87) Total Insurance 2,179.09 8,483.20 8,411.00 (72.20) Housing assistance payments 935,698.17 9,012,791.88 9,162,932.00 150,140.12 HAP portability -in 27,397.00 263,653.00 0.00 (263,653.00) Total Housing Assistance Payments 963,095.17 9,276,444.88 9,162,932.00 (113,512.88) Other general expenses 1,726.64 13,319.32 1,000.00 (12,319.32) Total General Expenses 1,726.64 13,319.32 1,000.00 (12,319.32) Total Operating Expenses 1,043,569.12 10,130,025.49 10,244,438.00 114,412.51 Operating Income (Loss) (2,336.32) (81,766.49) (58,599.00) 23,167.49 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ (2,336.32) $ (81,766.49) $ (61,599.00) $ 20,167.49 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 10 Months Ended 7/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 934,149.00 $ 8,813,539.00 $ 9,747,688.00 Investment income - unrestricted 688.98 0.00 688.98 Fraud recovery 4,501.02 4,500.98 9,002.00 Other revenue 290,880.02 0.00 290,880.02 Total Operating Revenues 1,230,219.02 8,818,039.98 10,048,259.00 Operating Expenses Administrative salaries 471,296.10 0.00 471,296.10 Auditing fees 8,925.00 0.00 8,925.00 Advertising and marketing 431.54 0.00 431.54 Employee benefits - administrative 149,589.63 0.00 149,589.63 Office expenses 157,824.99 0.00 157,824.99 Travel 11,829.70 0.00 11,829.70 Other admin. 28,035.78 0.00 28,035.78 Total Administrative 827,932.74 0.00 827,932.74 Maintenance materials 1,167.83 0.00 1,167.83 Maintenance contracts 2,677.52 0.00 2,677.52 Total Maintenance 3,845.35 0.00 3,845.35 Property insurance 4,688.66 0.00 4,688.66 Liability insurance 165.45 0.00 165.45 Workmen's compensation 2,169.22 0.00 2,169.22 All other insurance 1,459.87 0.00 1,459.87 Total Insurance 8,483.20 0.00 8,483.20 Housing assistance payments 0.00 9,012,791.88 9,012,791.88 HAP portability -in 263,653.00 0.00 263,653.00 Total Housing Assistance Payments 263,653.00 9,012,791.88 9,276,444.88 Other general expenses 13,319.32 0.00 13,319.32 Total General Expenses 13,319.32 0.00 13,319.32 Total Operating Expenses 1,117,233.61 9,012,791.88 10,130,025.49 Operating Income (Loss) 112,985.41 (194,751.90) (81,766.49) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 112,985.41 $ (194,751.90) $ (81,766.49) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of July 31, 2016 Assets Current Assets Cash -unrestricted $ 746,413.56 Accounts receivable - miscellaneous (net) 216,402.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 252.82 Inter program - due from 19,925.25 Total Current Assets 1,176,331.69 Property and Equipment Land 509,949.32 Buildings 1,807,538.89 Furniture, equipment and machinery administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 3,538.58 Net Property and Equipment 1,530,847.22 Non Current Assets Other assets 150,000.00 Total Non Current Assets 150,000.00 Total Assets $ 2,857,178.91 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,117.87 Total Current Liabilities 1,117.87 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 11,188.58 297,357.96 2,854,753.68 $ 2,857,178.91 Denton Housing Authority Income Statement - Management Fund 1 Month and 10 Months Ended 7/31/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 2,975.00 2,975.00 3,500.00 525.00 Management fees $ 4,940.67 $ 46,045.24 $ 56,544.00 $ 10,498.76 Investment income - unrestricted 24.61 242.04 100.00 (142.04) Other revenue 12,900.00 548,300.02 242,000.00 (306,300.02) Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 50,955.74 Total Operating Revenues 17,865.28 543,631.56 298,644.00 (244,987.56) Operating Expenses Administrative salaries 4,032.28 19,381.36 18,721.00 (660.36) Auditing fees 2,975.00 2,975.00 3,500.00 525.00 Employee benefits - administrative 677.50 4,957.38 5,871.00 913.62 Office expenses 654.18 8,450.13 26,800.00 18,349.87 Legal expenses 3,135.90 29,261.01 10,000.00 (19,261.01) Travel 4,105.67 8,265.48 10,000.00 1,734.52 Other admin. 5,625.02 54,689.94 14,500.00 (40,189.94) Total Administrative 21,205.55 127,980.30 89,392.00 (38,588.30) Water 569.13 3,419.88 7,500.00 4,080.12 Electricity 1,846.89 14,093.51 18,000.00 3,906.49 Sewer 159.54 1,491.50 3,000.00 1,508.50 Total Utilities 2,575.56 19,004.89 28,500.00 9,495.11 Maintenance labor 1,187.27 12,421.30 15,015.00 2,593.70 Maintenance materials 1,716.88 7,282.89 10,000.00 2,717.11 Maintenance contracts 1,647.41 23,758.49 53,500.00 29,741.51 Employee benefits - maintenance 568.72 5,678.72 4,710.00 (968.72) Total Maintenance 5,120.28 49,141.40 83,225.00 34,083.60 Property insurance 1,831.37 3,868.00 5,000.00 1,132.00 Liability insurance 64.63 136.49 0.00 (136.49) Workmen's compensation 895.26 1,749.68 0.00 (1,749.68) All other insurance 570.69 1,210.94 0.00 (1,210.94) Total Insurance 3,361.95 6,965.11 5,000.00 (1,965.11) Protective services - other contract costs 289.56 4,008.91 3,500.00 (508.91) Total Protective Services 289.56 4,008.91 3,500.00 (508.91) Other general expenses 0.00 3,944.75 5,000.00 1,055.25 Total General Expenses 0.00 3,944.75 5,000.00 1,055.25 Total Operating Expenses 32,552.90 211,045.36 214,617.00 3,571.64 Operating Income (Loss) (14,687.62) 332,586.20 84,027.00 (248,559.20) Other Financial Items Transfers between programs and projects - out 0.00 24,039.66 0.00 (24,039.66) Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 0.00 11,188.58 10,000.00 (1,188.58) Total Other Financial Items 0.00 35,228.24 20,000.00 (15,228.24) Net Income (Loss) $ (14,687.62) $ 297,357.96 $ 64,027.00 $ (233,330.96) Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of July 31, 2016 Assets Current Assets Cash -unrestricted $ 938,643.03 Accounts receivable - tenants (net) (1,796.35) Prepaid expenses and other assets 474.07 Inventories (net) 5,166.66 Total Current Assets 942,487.41 Property and Equipment Land 334,002.00 Buildings 3,855,527.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,127,732.39 Total Assets $ 2,070,219.80 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,150.00 Inter program - due to 31,136.35 Total Current Liabilities 55,925.85 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 60,875.86 1,087,781.39 820,826.24 39,951.00 60,785.31 2,009,343.94 $ 2,070,219.80 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 10 Months Ended 7/31/2016 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 58,812.00 $ 608,232.00 $ 667,800.00 $ 59,568.00 Tenant revenue - other 277.50 1,571.55 0.00 (1,571.55) Investment income - unrestricted 200.60 1,431.42 400.00 (1,031.42) Other revenue 547.44 2,511.85 2,500.00 (11.85) Total Operating Revenues 59,837.54 613,746.82 670,700.00 56,953.18 Operating Expenses Administrative salaries 9,226.49 91,149.16 114,352.00 23,202.84 Auditing fees 2,975.00 2,975.00 4,000.00 1,025.00 Management fees 4,158.21 38,050.54 46,746.00 8,695.46 Advertising and marketing 0.00 269.90 0.00 (269.90) Employee benefits - administrative 2,290.00 25,177.42 39,401.00 14,223.58 Office expenses 1,245.17 16,404.88 28,500.00 12,095.12 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 269.02 2,274.96 7,000.00 4,725.04 Other admin. 417.68 4,904.11 11,000.00 6,095.89 Total Administrative 20,581.57 181,205.97 251,999.00 70,793.03 Tenant services - other 90.24 4,253.37 6,000.00 1,746.63 Total Tenant Services 90.24 4,253.37 6,000.00 1,746.63 Water 1,273.18 11,860.17 18,000.00 6,139.83 Electricity 1,501.93 10,884.14 17,000.00 6,115.86 Gas 434.02 3,707.11 8,500.00 4,792.89 Sewer 1,771.58 16,425.33 23,000.00 6,574.67 Total Utilities 4,980.71 42,876.75 66,500.00 23,623.25 Maintenance labor 9,872.46 100,249.87 124,982.00 24,732.13 Maintenance materials 5,480.46 43,226.04 50,000.00 6,773.96 Maintenance contracts 10,681.90 80,969.50 90,000.00 9,030.50 Employee benefits - maintenance 4,696.83 45,586.07 43,064.00 (2,522.07) Total Maintenance 30,731.65 270,031.48 308,046.00 38,014.52 Property insurance 676.06 6,230.87 13,000.00 6,769.13 Liability insurance 23.86 219.85 0.00 (219.85) Workmen's compensation 330.49 2,643.68 0.00 (2,643.68) All other insurance 210.69 1,909.59 0.00 (1,909.59) Total Insurance 1,241.10 11,003.99 13,000.00 1,996.01 Protective services - other contract costs 0.00 2,062.40 3,000.00 937.60 Total Protective Services 0.00 2,062.40 3,000.00 937.60 Other general expenses 0.00 1,576.55 0.00 (1,576.55) Total General Expenses 0.00 1,576.55 0.00 (1,576.55) Total Operating Expenses 57,625.27 513,010.51 648,545.00 135,534.49 Operating Income (Loss) 2,212.27 100,736.31 22,155.00 (78,581.31) Other Financial Items Replacement of equipment 14,400.00 39,951.00 18,000.00 (21,951.00) Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 14,400.00 39,951.00 18,000.00 (21,951.00) Net Income (Loss) $ (12,187.73) $ 60,785.31 $ 4,155.00 $ (56,630.31) Urlaub & Co., PLLC See Accountant's Compilation Report 15 Denton Housing Authority Balance Sheet - Disaster Funds As of July 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 10 Months Ended 7/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of July 31, 2016 Assets Current Assets Cash -unrestricted $ 32,983.78 Prepaid expenses and other assets 63.22 Inventories (net) 359.88 Total Current Assets 33,406.88 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Construction in progress 16,289.66 Net Property and Equipment 941,549.84 Total Assets $ 974,956.72 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 3,950.00 Inter program - due to 39,633.25 Total Current Liabilities 44,294.58 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 194.66 917,510.18 (29,028.47) 24,039.66 17,240.69 929,762.06 $ 974,956.72 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Management fees Employee benefits - administrative Office expenses Legal expenses Travel Other admin. Total Administrative Relocation costs Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Transfer between programs and projects - in Replacement of equipment Property betterments & additions Total Other Financial Items Denton Housing Authority Income Statement - Pecan Place 1 Month and 10 Months Ended 7/31/2016 Current Month Year to Date Budget Variance $ 11,178.00 $ 114,478.00 $ 137,169.00 $ 22,691.00 0.00 205.00 0.00 (205.00) 1.63 9.96 30.00 20.04 2,048.22 2,125.00 782.46 289.75 481.61 0.00 35.87 159.80 5,922.71 0.00 33.41 33.41 249.15 966.69 159.17 1,017.52 1,405.04 2,124.28 484.50 5,031.34 328.80 11.61 160.73 102.47 189.85 189.85 0.00 0.00 13,445.10 (2,265.47) 0.00 0.00 0.00 0.00 21,142.16 2,125.00 7,994.70 2,978.96 6,080.80 0.00 142.70 2,383.78 42,848.10 35.52 795.78 831.30 2,536.09 5,983.88 2,278.45 2,937.81 13,736.23 10,683.79 6,475.54 11,933.04 4,864.88 33,957.25 1,309.72 46.21 570.42 430.35 2,356.70 3,721.50 3,721.50 1.19 1.19 97,452.27 17,240.69 (24,039.66) 0.00 24,039.66 Net Income (Loss) $ (2,265.47) $ 17,240.69 Urlaub & Co., PLLC See Accountant's Compilation Report 19 25,860.00 2,500.00 9,798.00 6,191.00 10,500.00 500.00 1,400.00 5,500.00 62,249.00 0.00 1.200.00 1,200.00 3,000.00 7,000.00 4,500.00 3,000.00 17,500.00 12,932.00 3,500.00 20,000.00 3,096.00 39,528.00 2,330.00 0.00 0.00 0.00 2,330.00 2,000.00 2,000.00 0.00 0.00 124,807.00 12,492.00 0.00 3,000.00 $ 9,492.00 4,717.84 375.00 1,803.30 3,212.04 4,419.20 500.00 1,257.30 3.116.22 19,400.90 (35.52) 404.22 368.70 463.91 1,016.12 2,221.55 2,248.21 (2,975.54) 8,066.96 (1,768.88) 5,570.75 1,020.28 (46.21) (570.42) (430.35) (26.70) (1,721.50) (1,721.50) (1.19) (1.19) 27,354.73 (4,748.69) 24,039.66 3,000.00 (24,039.66) 3,000.00 $ (7,748.69) Darton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 138,518.94 156,495.31 18,456.31 11,462.83 29,491.33 47,650.08 5,001.70 (19,158.47) (19,158.47) 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 914,727.00 905,828.00 882,327.00 911,538.00 8,813,539.00 Interest Income - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - FSS Forfeitures - - - - - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1,008.50 152.50 867.50 437.00 - 4,500.98 Total Revenue 879,883.87 875292.37 875,592.87 920278.37 752,404.00 898,711.50 914,879.50 906,695.50 882,764.00 911,538.00 8,818,039.98 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 925,412.38 935,698.17 9,012,791.88 Fraud Bad Debt HAP Porti, Total Expenses 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 925,412.38 935,698.17 - - 9,012,791.88 Net Income (Loss) (9,228.13) (4,808.23) (23,038.13) 17,976.37 (138,039.00) (6,993.48) 18,028.50 18,158.75 (42,648.38) (24,160.17) - - (194,751.90) Ending HAP Equity 166.36530 161.55707 138.51894 156.49531 18A56.31 11.462.83 29.491.33 47.650.08 5.001.7019( .158.47) (19.15847) (19.15847) (19.15847) October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 479,398.05 469,405.38 481,034.05 488,845.69 510,669.54 510,669.54 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,09600 93,978.00 94,465.00 93,491.00 94,878.00 94,878.00 95,494.00 934,149.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 1908. 516.83 18.50 2203. 688.98 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 33,009.14 43,593.64 42,484.37 34,178.77 290,880.02 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1,008.50 152.50 867.50 437.00 - 4,501.02 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 126,671.72 139,855.97 137,817.87 129,694.80 1,230,219.02 Expenses: Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,08021 136,664.39 128,227.30 130,00623 107,870.95 1,117,233.61 Depreciation Expense - - - - - - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,08021 136,664.39 128227.30 130,00623 107,870.95 - - 1,117233.61 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 16,087.21 (9,992.67) 11,628.67 7,811.64 21,823.85 - - 112,985.41 Ending Admin Equity 410.06059 424.79403 429.05644 450.04533 463.31084 479.39805 469.40538 481.03405 488.84569 510.66954 510.66954 510.66954 402.874.13 Restricted (19,158.47) Unrestricted 402,874.13 Investment in Net Capital Assets 122,669.75 Total Equity 506,385.41 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10,104,344 10,104,344 HUD -held Program Reserve 1,031,715 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,274,578 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% 110% 107% $ 617.77 $ 599.83 98% 99% 111% 108% $ 620.49 $ 602.79 99% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of August 31, 2016, and the related income statement for the 1 Month and 11 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC September 16, 2016 Denton Housing Authority Balance Sheet - Combining As of August 31, 2016 Assets Urlaub & Co., PLLC See Accountant's Compilation Report 3 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Current Assets Cash -unrestricted $ 497,815.10 $ 724,966.89 $ 909,191.96 $ 0.00 $ 19,898.61 $ 2,151,872.56 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 81,827.31 Accounts receivable - PHA projects 32,227.77 0.00 0.00 0.00 0.00 32,227.77 Accounts receivable - miscellaneous (net) (7,234.24) 216,802.93 0.00 0.00 0.00 209,568.69 Accounts receivable - tenants (net) 0.00 0.00 (1,992.35) 0.00 0.00 (1,992.35) Fraud recovery (net) 317.01 0.00 0.00 0.00 0.00 317.01 Accrued interest receivable 601.33 864.81 0.00 0.00 0.00 1,466.14 Investments - unrestricted 0.00 192,472.32 0.00 0.00 0.00 192,472.32 Prepaid expenses and other assets 12,104.01 221.21 414.81 0.00 55.32 12,795.35 Inventories (net) 0.00 0.00 5,166.66 0.00 359.88 5,526.54 Inter program - due from (3,875.00) 22,305.04 0.00 0.00 0.00 18,430.04 Total Current Assets 531,955.98 1,157,633.20 912,781.08 81,827.31 20,313.81 2,704,511.38 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 1,002,960.45 Buildings 205,955.95 1,807,538.89 3,855,527.68 0.00 2,336,692.63 8,205,715.15 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 51,461.80 Furniture, equipment and machinery - administration 212,340.34 36,076.58 62,090.68 0.00 10,059.64 320,567.24 Accumulated depreciation (295,626.54) (826,256.15) (3,123,887.97) 0.00 (1,631,963.02) (5,877,733.68) Construction in progress 0.00 21,286.03 0.00 0.00 16,289.66 37,575.69 Net Property and Equipment 122,669.75 1,548,594.67 1,127,732.39 0.00 941,549.84 3,740,546.65 Non Current Assets Other assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Non Current Assets 0.00 150,000.00 0.00 0.00 0.00 150,000.00 Total Assets $ 654,625.73 L_2&56 227.87 $ 2,040,513.47 $ 81,827.31 $ 961,863.65 $ 6,595,058.03 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Balance Sheet - Combining Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 As of August 31, 2016 917,510.18 3,851,376.22 Unrestricted 397,684.13 Liabilities and Net Position 820,826.24 0.00 (29,028.47) 2,012,274.14 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total 81,827.31 Fund 257,420.74 Capital expenditurescontra 0.00 Current Liabilities 39,951.00 0.00 24,039.66 92,926.69 Accrued wage/payroll taxes payable $ 774.13 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 774.13 Accrued compensated absences - current portion 18,219.43 1,117.87 3,639.50 0.00 711.33 23,688.13 Tenant security deposits 0.00 0.00 21,450.00 0.00 4,150.00 25,600.00 Unearned revenue 5,900.00 0.00 0.00 0.00 0.00 5,900.00 Inter program - due to (1,386.30) 0.00 (3,053.51) 0.00 22,869.85 18,430.04 Total Current Liabilities 23,507.26 1,117.87 22,035.99 0.00 27,731.18 74,392.30 Long -Term Liabilities Accrued compensated absences - noncurrent 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Long -Term Liabilities 22,198.07 1,307.36 4,950.01 0.00 900.08 29,355.52 Total Liabilities 45,705.33 2,425.23 26,986.00 0.00 28,631.26 103,747.82 Net Position Investment in capital assets 122,669.75 1,723,414.90 1,087,781.39 0.00 917,510.18 3,851,376.22 Unrestricted 397,684.13 822,792.24 820,826.24 0.00 (29,028.47) 2,012,274.14 Restricted 175,593.43 0.00 0.00 81,827.31 0.00 257,420.74 Capital expenditurescontra 0.00 28,936.03 39,951.00 0.00 24,039.66 92,926.69 Net income (loss) (87,026.91) 278,659.47 64,968.84 0.00 20,711.02 277,312.42 Total Net Position 608,920.40 2,853,802.64 2,013,527.47 81,827.31 933,232.39 6,491,310.21 Total Liabilities and Net Position $ 654,625.73 $ 2,856,227.87 L_2,040,513.47 $ 81,827.31 $ 961,863.65 $ 6,595,058.03 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement -Combining 11 Months Ended 8/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 668,178.00 $ 0.00 $ 126,142.00 $ 794,320.00 Tenant revenue - other 0.00 0.00 1,766.55 0.00 205.00 1,971.55 HUD PHA operating grants 10,755,058.00 0.00 0.00 0.00 0.00 10,755,058.00 Management fees 0.00 50,919.06 0.00 0.00 0.00 50,919.06 Investment income - unrestricted 707.35 313.20 1,632.29 0.00 11.59 2,664.43 Fraud recovery 9,244.00 0.00 0.00 0.00 0.00 9,244.00 Other revenue 323,575.45 561,700.02 2,511.85 0.00 0.00 887,787.32 Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 0.00 0.00 (50,955.74) Total Operating Revenues 11,088,584.80 561,976.54 674,088.69 0.00 126,358.59 12,451,008.62 Operating Expenses Administrative salaries 508,532.01 22,004.62 100,375.65 0.00 23,190.37 654,102.65 Auditing fees 8,925.00 2,975.00 2,975.00 0.00 2,125.00 17,000.00 Management fees 0.00 0.00 42,107.88 0.00 8,811.18 50,919.06 Advertising and marketing 431.54 0.00 269.90 0.00 0.00 701.44 Employee benefits - administrative 164,413.15 5,624.21 29,217.28 0.00 3,305.50 202,560.14 Office expenses 174,865.66 9,273.33 17,772.40 0.00 6,668.98 208,580.37 Legal expenses 0.00 29,261.01 0.00 0.00 0.00 29,261.01 Travel 13,901.70 8,381.92 2,570.16 0.00 182.06 25,035.84 Other admin. 31,002.72 62,280.67 5,382.09 0.00 2,564.24 101,229.72 Total Administrative 902,071.78 139,800.76 200,670.36 0.00 46,847.33 1,289,390.23 Relocation costs 0.00 0.00 0.00 0.00 35.52 35.52 Tenant services - other 0.00 0.00 4,253.37 0.00 795.78 5,049.15 Total Tenant Services 0.00 0.00 4,253.37 0.00 831.30 5,084.67 Water 0.00 4,073.35 13,412.15 0.00 2,794.17 20,279.67 Electricity 0.00 16,271.21 12,418.44 0.00 7,320.68 36,010.33 Gas 0.00 0.00 4,107.24 0.00 2,440.49 6,547.73 Sewer 0.00 1,652.48 18,511.63 0.00 2,972.42 23,136.53 Total Utilities 0.00 21,997.04 48,449.46 0.00 15,527.76 85,974.26 Maintenance labor 0.00 13,591.30 109,356.25 0.00 11,689.79 134,637.34 Maintenance materials 1,284.80 7,496.66 52,965.30 0.00 6,519.38 68,266.14 Maintenance contracts 2,927.92 25,818.72 87,691.22 0.00 12,540.04 128,977.90 Employee benefits - maintenance 0.00 6,330.21 50,924.10 0.00 5,422.73 62,677.04 Total Maintenance 4,212.72 53,236.89 300,936.87 0.00 36,171.94 394,558.42 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 11 Months Ended 8/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place Total Fund Property insurance 4,688.66 3,868.00 6,230.87 0.00 1,309.72 16,097.25 Liability insurance 165.45 136.49 219.85 0.00 46.21 568.00 Workmen's compensation 2,169.22 1,749.68 2,643.68 0.00 570.42 7,133.00 All other insurance 1,459.87 1,210.94 1,909.59 0.00 430.35 5,010.75 Total Insurance 8,483.20 6,965.11 11,003.99 0.00 2,356.70 28,809.00 Protective services - other contract costs 0.00 4,396.83 2,278.25 0.00 3,911.35 10,586.43 Total Protective Services 0.00 4,396.83 2,278.25 0.00 3,911.35 10,586.43 Other general expenses 14,718.13 3,944.75 1,576.55 0.00 1.19 20,240.62 Total General Expenses 14,718.13 3,944.75 1,576.55 0.00 1.19 20,240.62 Housing assistance payments 9,951,333.88 0.00 0.00 0.00 0.00 9,951,333.88 HAP portability -in 294,792.00 0.00 0.00 0.00 0.00 294,792.00 Total Housing Assistance Payments 10,246,125.88 0.00 0.00 0.00 0.00 10,246,125.88 Total Operating Expenses 11,175,611.71 230,341.38 569,168.85 0.00 105,647.57 12,080,769.51 Operating Income (Loss) (87,026.91) 331,635.16 104,919.84 0.00 20,711.02 370,239.11 Other Financial Items Transfer between programs and projects - in 0.00 0.00 0.00 0.00 (24,039.66) (24,039.66) Transfers between programs and projects - out 0.00 24,039.66 0.00 0.00 0.00 24,039.66 Replacement of equipment 0.00 0.00 39,951.00 0.00 0.00 39,951.00 Property betterments & additions 0.00 28,936.03 0.00 0.00 24,039.66 52,975.69 Total Other Financial Items 0.00 52,975.69 39,951.00 0.00 0.00 92,926.69 Net Income (Loss) $ (87,026.91) $ 278,659.47 $ 64,968.84 $ 0.00$ 20,711.02 $ 277,312.42 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of August 31, 2016 Assets Current Assets Cash -unrestricted $ 497,815.10 Accounts receivable - PHA projects 32,227.77 Accounts receivable - miscellaneous (net) (7,234.24) Fraud recovery (net) 317.01 Accrued interest receivable 601.33 Prepaid expenses and other assets 12,104.01 Inter program - due from (3,875.00) Total Current Assets 531,955.98 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 212,340.34 Accumulated depreciation (295,626.54) Net Property and Equipment 122,669.75 Total Assets $ 654,625.73 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 774.13 18,219.43 5,900.00 (1,386.30) 23,507.26 22,198.07 22,198.07 45,705.33 122,669.75 397,684.13 175,593.43 (87,026.91) 608,920.40 $ 654,625.73 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 8/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 95,832.00 $ 911,538.00 $ 1,007,370.00 Investment income - unrestricted 18.37 0.00 18.37 Fraud recovery 121.00 121.00 242.00 Other revenue 32,695.43 0.00 32,695.43 Total Operating Revenues 128,666.80 911,659.00 1,040,325.80 Operating Expenses Administrative salaries 37,235.91 0.00 37,235.91 Employee benefits - administrative 14,823.52 0.00 14,823.52 Office expenses 17,040.67 0.00 17,040.67 Travel 2,072.00 0.00 2,072.00 Other admin. 2,966.94 0.00 2,966.94 Total Administrative 74,139.04 0.00 74,139.04 Maintenance materials 116.97 0.00 116.97 Maintenance contracts 250.40 0.00 250.40 Total Maintenance 367.37 0.00 367.37 Housing assistance payments 0.00 938,542.00 938,542.00 HAP portability -in 31,139.00 0.00 31,139.00 Total Housing Assistance Payments 31,139.00 938,542.00 969,681.00 Other general expenses 1,398.81 0.00 1,398.81 Total General Expenses 1,398.81 0.00 1,398.81 Total Operating Expenses 107,044.22 938,542.00 1,045,586.22 Operating Income (Loss) 21,622.58 (26,883.00) (5,260.42) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 21,622.58 $ (26,883.00) $ (5,260.42) Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 508,532.01 597,204.00 88,671.99 1 Month and 11 Months Ended 8/31/2016 0.00 8,925.00 12,000.00 Current Year to Advertising and marketing 0.00 431.54 Month Date Budget Variance Operating Revenues 164,413.15 189,391.00 24,977.85 HUD PHA operating grants $ 1,007,370.00 $ 10,755,058.00 $ 10,173,739.00 $ (581,319.00) Investment income - unrestricted 18.37 707.35 100.00 (607.35) Fraud recovery 242.00 9,244.00 2,000.00 (7,244.00) Other revenue 32,695.43 323,575.45 10,000.00 (313,575.45) Total Operating Revenues 1,040,325.80 11,088,584.80 10,185,839.00 (902,745.80) Operating Expenses Administrative salaries 37,235.91 508,532.01 597,204.00 88,671.99 Auditing fees 0.00 8,925.00 12,000.00 3,075.00 Advertising and marketing 0.00 431.54 0.00 (431.54) Employee benefits - administrative 14,823.52 164,413.15 189,391.00 24,977.85 Office expenses 17,040.67 174,865.66 203,500.00 28,634.34 Travel 2,072.00 13,901.70 17,000.00 3,098.30 Other admin. 2,966.94 31,002.72 43,000.00 11,997.28 Total Administrative 74,139.04 902,071.78 1,062,095.00 160,023.22 Maintenance materials 116.97 1,284.80 5,000.00 3,715.20 Maintenance contracts 250.40 2,927.92 5,000.00 2,072.08 Total Maintenance 367.37 4,212.72 10,000.00 5,787.28 Property insurance 0.00 4,688.66 8,411.00 3,722.34 Liability insurance 0.00 165.45 0.00 (165.45) Workmen's compensation 0.00 2,169.22 0.00 (2,169.22) All other insurance 0.00 1,459.87 0.00 (1,459.87) Total Insurance 0.00 8,483.20 8,411.00 (72.20) Housing assistance payments 938,542.00 9,951,333.88 9,162,932.00 (788,401.88) HAP portability -in 31,139.00 294,792.00 0.00 (294,792.00) Total Housing Assistance Payments 969,681.00 10,246,125.88 9,162,932.00 (1,083,193.88) Other general expenses 1,398.81 14,718.13 1,000.00 (13,718.13) Total General Expenses 1,398.81 14,718.13 1,000.00 (13,718.13) Total Operating Expenses 1,045,586.22 11,175,611.71 10,244,438.00 (931,173.71) Operating Income (Loss) (5,260.42) (87,026.91) (58,599.00) 28,427.91 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) $ (5,260.42) $ (87,026.91) $ (61,599.00) $ 25,427.91 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 11 Months Ended 8/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 1,029,981.00 $ 9,725,077.00 $ 10,755,058.00 Investment income - unrestricted 707.35 0.00 707.35 Fraud recovery 4,622.02 4,621.98 9,244.00 Other revenue 323,575.45 0.00 323,575.45 Total Operating Revenues 1,358,885.82 9,729,698.98 11,088,584.80 Operating Expenses Administrative salaries 508,532.01 0.00 508,532.01 Auditing fees 8,925.00 0.00 8,925.00 Advertising and marketing 431.54 0.00 431.54 Employee benefits - administrative 164,413.15 0.00 164,413.15 Office expenses 174,865.66 0.00 174,865.66 Travel 13,901.70 0.00 13,901.70 Other admin. 31,002.72 0.00 31,002.72 Total Administrative 902,071.78 0.00 902,071.78 Maintenance materials 1,284.80 0.00 1,284.80 Maintenance contracts 2,927.92 0.00 2,927.92 Total Maintenance 4,212.72 0.00 4,212.72 Property insurance 4,688.66 0.00 4,688.66 Liability insurance 165.45 0.00 165.45 Workmen's compensation 2,169.22 0.00 2,169.22 All other insurance 1,459.87 0.00 1,459.87 Total Insurance 8,483.20 0.00 8,483.20 Housing assistance payments 0.00 9,951,333.88 9,951,333.88 HAP portability -in 294,792.00 0.00 294,792.00 Total Housing Assistance Payments 294,792.00 9,951,333.88 10,246,125.88 Other general expenses 14,718.13 0.00 14,718.13 Total General Expenses 14,718.13 0.00 14,718.13 Total Operating Expenses 1,224,277.83 9,951,333.88 11,175,611.71 Operating Income (Loss) 134,607.99 (221,634.90) (87,026.91) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 134,607.99 $ (221,634.90) $ (87,026.91) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of August 31, 2016 Assets Current Assets Cash -unrestricted $ 724,966.89 Accounts receivable - miscellaneous (net) 216,802.93 Accrued interest receivable 864.81 Investments - unrestricted 192,472.32 Prepaid expenses and other assets 221.21 Inter program - due from 22,305.04 Total Current Assets 1,157,633.20 Property and Equipment Land 509,949.32 Buildings 1,807,538.89 Furniture, equipment and machinery administration 36,076.58 Accumulated depreciation (826,256.15) Construction in progress 21,286.03 Net Property and Equipment 1,548,594.67 Non Current Assets Other assets 150,000.00 Total Non Current Assets 150,000.00 Total Assets $ 2,856,227.87 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,117.87 Total Current Liabilities 1,117.87 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,307.36 1,307.36 2,425.23 1,723,414.90 822,792.24 28,936.03 278,659.47 2,853,802.64 $ 2,856,227.87 Denton Housing Authority Income Statement - Management Fund 1 Month and 11 Months Ended 8/31/2016 Current Month Year to Date Budget Variance Operating Revenues Management fees $ 4,873.82 $ 50,919.06 $ 56,544.00 $ 5,624.94 Investment income - unrestricted 71.16 313.20 100.00 (213.20) Other revenue 13,400.00 561,700.02 242,000.00 (319,700.02) Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 50,955.74 Total Operating Revenues 18,344.98 561,976.54 298,644.00 (263,332.54) Operating Expenses Administrative salaries 2,623.26 22,004.62 18,721.00 (3,283.62) Auditing fees 0.00 2,975.00 3,500.00 525.00 Employee benefits - administrative 666.83 5,624.21 5,871.00 246.79 Office expenses 823.20 9,273.33 26,800.00 17,526.67 Legal expenses 0.00 29,261.01 10,000.00 (19,261.01) Travel 116.44 8,381.92 10,000.00 1,618.08 Other admin. 7,590.73 62,280.67 14,500.00 (47,780.67) Total Administrative 11,820.46 139,800.76 89,392.00 (50,408.76) Water 653.47 4,073.35 7,500.00 3,426.65 Electricity 2,177.70 16,271.21 18,000.00 1,728.79 Sewer 160.98 1,652.48 3,000.00 1,347.52 Total Utilities 2,992.15 21,997.04 28,500.00 6,502.96 Maintenance labor 1,170.00 13,591.30 15,015.00 1,423.70 Maintenance materials 213.77 7,496.66 10,000.00 2,503.34 Maintenance contracts 2,060.23 25,818.72 53,500.00 27,681.28 Employee benefits - maintenance 651.49 6,330.21 4,710.00 (1,620.21) Total Maintenance 4,095.49 53,236.89 83,225.00 29,988.11 Property insurance 0.00 3,868.00 5,000.00 1,132.00 Liability insurance 0.00 136.49 0.00 (136.49) Workmen's compensation 0.00 1,749.68 0.00 (1,749.68) All other insurance 0.00 1,210.94 0.00 (1,210.94) Total Insurance 0.00 6,965.11 5,000.00 (1,965.11) Protective services - other contract costs 387.92 4,396.83 3,500.00 (896.83) Total Protective Services 387.92 4,396.83 3,500.00 (896.83) Other general expenses 0.00 3,944.75 5,000.00 1,055.25 Total General Expenses 0.00 3,944.75 5,000.00 1,055.25 Total Operating Expenses 19,296.02 230,341.38 214,617.00 (15,724.38) Operating Income (Loss) (951.04) 331,635.16 84,027.00 (247,608.16) Other Financial Items Transfers between programs and projects - out 0.00 24,039.66 0.00 (24,039.66) Replacement of equipment 0.00 0.00 10,000.00 10,000.00 Property betterments & additions 17,747.45 28,936.03 10,000.00 (18,936.03) Total Other Financial Items 17,747.45 52,975.69 20,000.00 (32,975.69) Net Income (Loss) $ (18,698.49) $ 278,659.47 $ 64,027.00 $ (214,632.47) Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of August 31, 2016 Assets Current Assets Cash -unrestricted $ 909,191.96 Accounts receivable - tenants (net) (1,992.35) Prepaid expenses and other assets 414.81 Inventories (net) 5,166.66 Total Current Assets 912,781.08 Property and Equipment Land 334,002.00 Buildings 3,855,527.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,123,887.97) Net Property and Equipment 1,127,732.39 Total Assets $ 2,040,513.47 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 3,639.50 Tenant security deposits 21,450.00 Inter program - due to (3,053.51) Total Current Liabilities 22,035.99 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 4,950.01 4,950.01 26,986.00 1,087,781.39 820,826.24 39,951.00 64,968.84 2,013,527.47 $ 2,040,513.47 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 11 Months Ended 8/31/2016 Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 39,951.00 0.00 39,951.00 $ 4,183.53 $ 64,968.84 Urlaub & Co., PLLC See Accountant's Compilation Report 15 18,000.00 $ 4,155.00 (21,951.00) $ (60,813.84) Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 59,946.00 $ 668,178.00 $ 667,800.00 $ (378.00) Tenant revenue - other 195.00 1,766.55 0.00 (1,766.55) Investment income - unrestricted 200.87 1,632.29 400.00 (1,232.29) Other revenue 0.00 2,511.85 2,500.00 (11.85) Total Operating Revenues 60,341.87 674,088.69 670,700.00 (3,388.69) Operating Expenses Administrative salaries 9,226.49 100,375.65 114,352.00 13,976.35 Auditing fees 0.00 2,975.00 4,000.00 1,025.00 Management fees 4,057.34 42,107.88 46,746.00 4,638.12 Advertising and marketing 0.00 269.90 0.00 (269.90) Employee benefits - administrative 4,039.86 29,217.28 39,401.00 10,183.72 Office expenses 1,367.52 17,772.40 28,500.00 10,727.60 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 295.20 2,570.16 7,000.00 4,429.84 Other admin. 477.98 5,382.09 11,000.00 5,617.91 Total Administrative 19,464.39 200,670.36 251,999.00 51,328.64 Tenant services - other 0.00 4,253.37 6,000.00 1,746.63 Total Tenant Services 0.00 4,253.37 6,000.00 1,746.63 Water 1,551.98 13,412.15 18,000.00 4,587.85 Electricity 1,534.30 12,418.44 17,000.00 4,581.56 Gas 400.13 4,107.24 8,500.00 4,392.76 Sewer 2,086.30 18,511.63 23,000.00 4,488.37 Total Utilities 5,572.71 48,449.46 66,500.00 18,050.54 Maintenance labor 9,106.38 109,356.25 124,982.00 15,625.75 Maintenance materials 9,739.26 52,965.30 50,000.00 (2,965.30) Maintenance contracts 6,721.72 87,691.22 90,000.00 2,308.78 Employee benefits - maintenance 5,338.03 50,924.10 43,064.00 (7,860.10) Total Maintenance 30,905.39 300,936.87 308,046.00 7,109.13 Property insurance 0.00 6,230.87 13,000.00 6,769.13 Liability insurance 0.00 219.85 0.00 (219.85) Workmen's compensation 0.00 2,643.68 0.00 (2,643.68) All other insurance 0.00 1,909.59 0.00 (1,909.59) Total Insurance 0.00 11,003.99 13,000.00 1,996.01 Protective services - other contract costs 215.85 2,278.25 3,000.00 721.75 Total Protective Services 215.85 2,278.25 3,000.00 721.75 Other general expenses 0.00 1,576.55 0.00 (1,576.55) Total General Expenses 0.00 1,576.55 0.00 (1,576.55) Total Operating Expenses 56,158.34 569,168.85 648,545.00 79,376.15 Operating Income (Loss) 4,183.53 104,919.84 22,155.00 (82,764.84) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 39,951.00 0.00 39,951.00 $ 4,183.53 $ 64,968.84 Urlaub & Co., PLLC See Accountant's Compilation Report 15 18,000.00 $ 4,155.00 (21,951.00) $ (60,813.84) Denton Housing Authority Balance Sheet - Disaster Funds As of August 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 11 Months Ended 8/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Pecan Place As of August 31, 2016 Assets Current Assets Cash -unrestricted $ 19,898.61 Prepaid expenses and other assets 55.32 Inventories (net) 359.88 Total Current Assets 20,313.81 Property and Equipment Land 159,009.13 Buildings 2,336,692.63 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,631,963.02) Construction in progress 16,289.66 Net Property and Equipment 941,549.84 Total Assets $ 961,863.65 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 711.33 Tenant security deposits 4,150.00 Inter program - due to 22,869.85 Total Current Liabilities 27,731.18 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 18 900.08 900.08 28,631.26 917,510.18 (29,028.47) 24,039.66 20,711.02 933,232.39 $ 961,863.65 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Management fees Employee benefits - administrative Office expenses Legal expenses Travel Other admin. Total Administrative Relocation costs Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Transfer between programs and projects - in Replacement of equipment Property betterments & additions Total Other Financial Items Denton Housing Authority Income Statement - Pecan Place 1 Month and 11 Months Ended 8/31/2016 Current Month Year to Date $ 11,664.00 $ 126,142.00 0.00 205.00 1.63 11.59 2,048.21 0.00 816.48 326.54 588.18 0.00 39.36 0.00 0.00 0.00 258.08 1,336.80 162.04 34.61 1,791.53 1,006.00 43.84 607.00 557.85 2,214.69 0.00 0.00 0.00 0.00 0.00 189.85 189.85 0.00 0.00 8,195.30 3,470.33 0.00 0.00 0.00 0.00 23,190.37 2,125.00 8,811.18 3,305.50 6,668.98 0.00 182.06 2.564.24 46,847.33 35.52 795.78 831.30 2,794.17 7,320.68 2,440.49 2,972.42 15,527.76 11,689.79 6,519.38 12,540.04 5,422.73 36,171.94 1,309.72 46.21 570.42 430.35 2,356.70 3,911.35 3,911.35 1.19 1.19 105,647.57 20,711.02 (24,039.66) 0.00 24,039.66 Net Income (Loss) $ 3,470.33 $ 20,711.02 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Budget Variance $ 137,169.00 $ 11,027.00 0.00 (205.00) 30.00 18.41 25,860.00 2,500.00 9,798.00 6,191.00 10,500.00 500.00 1,400.00 5,500.00 62.249.00 0.00 1.200.00 1,200.00 3,000.00 7,000.00 4,500.00 3,000.00 17,500.00 12,932.00 3,500.00 20,000.00 3,096.00 39,528.00 2,330.00 0.00 0.00 0.00 2,330.00 2,000.00 2,000.00 0.00 124,807.00 12,492.00 0.00 3,000.00 $ 9,492.00 2,669.63 375.00 986.82 2,885.50 3,831.02 500.00 1,217.94 2,935.76 15,401.67 (35.52) 368.70 205.83 (320.68) 2,059.51 1,242.21 (3,019.38) 7,459.96 (2,326.73) 3,356.06 1,020.28 (46.21) (570.42) (430.35) (26.70) (1,911.35) (1,911.35) (1.19) (1.19) 19,159.43 (8,219.02) 24,039.66 3,000.00 (24,039.66) 3,000.00 $ (11,219.02) Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 174,180.00 164,641.87 158,631.24 136,161.11 150,047.48 12,670.48 11,645.98 31,617.48 41,781.98 4,843.98 (19,158.47) (46,041.47) 174,180.00 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 914,727.00 905,828.00 882,327.00 911,538.00 911,538.00 9,725,077.00 Interest Income - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1.008.50 152.50 867.50 437.00 - 121.00 4.621.98 Total Revenue 879.883.87 875292.37 875.592.87 920278.37 752.404.00 898.711.50 914.879.50 906.695.50 882.764.00 911.538.00 911.659.00 9.729.698.98 Expenses: HAP Payments 889,422.00 881,303.00 898,063.00 906,392.00 889,781.00 899,736.00 894,908.00 896531.00 919,702.00 935,540.45 938,542.00 9,949,920.45 Fraud Bad Debt HAP Porti, Total Expenses 889,422.00 881,303.00 898,063.00 906,392.00 889,781.00 899,736.00 894,908.00 896531.00 919,702.00 935,540.45 938,542.00 - 9,949,920.45 Net Income (Loss) (9,538.13) (6,010.63) (22,470.13) 13,886.37 (137,377.00) (1,024.50) 19,971.50 10,164.50 (36,938.00) (24,002.45) (26,883.00) - (220,221.47) Ending HAP Equity 164.641.87 158.631.24 136.161.11 150.04748 12.67048 11.64598 31.61748 41.78198 4.843.98 19( .15847) (46.04147) (46.04147) (46.04147) October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 429,056.44 450,045.33 463,310.84 479,398.05 469,405.38 481,034.05 488,845.69 510,669.54 532,292.12 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,096.00 93,978.00 94,465.00 93,491.00 94,878.00 94,878.00 95,494.00 95,832.00 1,029,981.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 1908. 516.83 18.50 2203. 18.37 707.35 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 33,009.14 43,593.64 42,484.37 34,178.77 32,695.43 323,575.45 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1,008.50 152.50 867.50 437.00 - 121.00 4,622.02 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 126,671.72 139,855.97 137,817.87 129,694.80 128,666.80 1,358,885.82 Expenses: Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 136,664.39 128,227.30 130,006.23 107,870.95 107,044.22 1,224,277.83 Depreciation Expense - - - - - - - - - - - - Total Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 136,664.39 128227.30 130,006.23 107,870.95 107,044.22 - 1224277.83 Net Income (Loss) 12,376.46 14,733.44 4,262.41 20,988.89 13,265.51 16,08721 (9,992.67) 11,628.67 7,811.64 21,823.85 21,622.58 - 134,607.99 Ending Admin Equity 410��60.59 424��94.03 429��5644 450��45.33 463�� 479�l98.05 4694��5.38 481LugL5 488�� 5106��9.54 532�� 53��292.12 403�� Restricteol (46,041.47) Unrestricted 403,013.50 Investment in Net Capital Assets 122,669.75 Total Equity 479,641.78 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10,104,344 10,104,344 HUD -held Program Reserve 1,031,715 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,274,578 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% 110% 107% $ 617.77 $ 599.83 98% 99% 111% 108% $ 620.49 $ 602.79 99% 99% 111% 108% $ 619.91 $ 604.94 99% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOIJNIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 940-383-3039 We have compiled the accompanying balance sheet of the Denton Housing Authority as of September 30, 2016, and the related income statement for the 1 Month and 12 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC November 30, 2016 Urlaub & Co., PLLC See Accountant's Compilation Report 2 Denton Housing Authority Balance Sheet - Combining As of September 30, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 559,053.62 $ 724,892.50 $ 917,268.70 $ 0.00 $ 10,367.32 $ 0.00 $ 2,211,582.14 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 44,080.15 0.00 0.00 0.00 0.00 0.00 44,080.15 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 1,703.10 0.00 290.00 0.00 1,993.10 Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 10,645.40 189.60 355.55 0.00 0.00 0.00 11,190.55 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 10,477.00 35,719.36 0.00 0.00 0.00 0.00 46,196.36 Total Current Assets 591,076.33 1,171,609.34 925,918.96 81,827.31 11,657.05 0.00 2,782,088.99 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,828,824.92 3,855,527.68 0.00 2,355,585.97 0.00 8,245,894.52 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 193,560.66 36,076.58 62,090.68 0.00 10,059.64 0.00 301,787.56 Accumulated depreciation (300,411.01) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,111,599.72) Construction in progress 0.00 780.80 0.00 0.00 0.00 0.00 780.80 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 99,105.60 1,629,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 6,111,285.41 Total Assets L_6 90,181.93 $ 2,801,315.47 $ 1,985,209.43 L_81 827.31 $ 864,840.26 $ 2,470,000.00 $ 8,893,374.40 Urlaub & Co., PLLC See Accountant's Compilation Report 2 Current Liabilities Accounts payable Accrued wage/payroll taxes payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Accrued liabilities - other Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - noncurrent Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditurescontra Net income (loss) Total Net Position Total Liabilities and Net Position 12,363.67 Denton Housing Authority 5,835.98 0.00 907.56 0.00 20,628.63 Balance Sheet - Combining 1,521.42 5,835.98 0.00 907.56 0.00 As of September 30, 2016 40,794.95 19,206.99 56,439.55 0.00 Liabilities and Net Position 2,628,219.17 23,945.39 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 105,772.70 0.00 $ 6,790.76 $ 13,353.38 $ 4,966.02 $ 0.00 $ 5,977.43 $ 0.00 $ 31,087.59 3,120.76 0.00 0.00 0.00 0.00 0.00 3,120.76 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 0.00 0.00 21,300.00 0.00 4,000.00 0.00 25,300.00 1,469.00 0.00 1,182.00 0.00 315.00 2,458,564.81 2,461,530.81 0.00 2,934.43 7,110.72 0.00 1,916.21 0.00 11,961.36 (2,794.10) 0.00 9,787.50 0.00 39,202.96 0.00 46,196.36 28,431.28 17,685.57 50,603.57 0.00 52,305.31 2,458,564.81 2,607,590.54 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 40,794.95 19,206.99 56,439.55 0.00 53,212.87 2,458,564.81 2,628,219.17 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 572,896.32 1,066,501.01 849,317.16 0.00 35,298.50 (2,470,000.00) 54,012.99 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 0.00 29,716.83 39,951.00 0.00 26,643.34 0.00 96,311.17 (46,560.33) 206,184.51 (19,788.75) 0.00 (103,497.66) 11,435.19 47,772.96 649,386.98 2,782,108.48 1,928,769.88 81,827.31 811,627.39 11,435.19 6,265,155.23 690,181.93 L_2,801,315.47 L1,985,209.43 L_81,827.31 L_864,840.26 $ 2,470,000.00 $ 8,893,374.40 Urlaub & Co., PLIC See Accountant's Compilation Report 3 Urlaub & Co., PLLC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement -Combining 12 Months Ended 9/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 729,003.00 $ 0.00 $ 137,320.00 $ 0.00 $ 866,323.00 Tenant revenue - other 0.00 0.00 1,984.55 0.00 274.00 0.00 2,258.55 HUD PHA operating grants 11,880,094.00 0.00 0.00 0.00 0.00 0.00 11,880,094.00 Management fees 0.00 55,665.03 0.00 0.00 0.00 0.00 55,665.03 Investment income - unrestricted 140.21 494.66 1,827.69 0.00 12.60 0.00 2,475.16 Fraud recovery 12,877.99 0.00 0.00 0.00 0.00 0.00 12,877.99 Other revenue 373,250.67 318,100.02 2,511.85 0.00 0.00 268,935.19 962,797.73 Gain or loss on disposition of capital assets 0.00 (50,955.74) 0.00 0.00 0.00 0.00 (50,955.74) Total Operating Revenues 12,266,362.87 323,303.97 735,327.09 0.00 137,606.60 268,935.19 13,731,535.72 Operating Expenses Administrative salaries 524,713.32 23,503.39 106,339.69 0.00 25,467.97 0.00 680,024.37 Auditing fees 8,925.00 2,975.00 2,975.00 0.00 2,125.00 0.00 17,000.00 Management fees 0.00 0.00 46,071.39 0.00 9,593.64 0.00 55,665.03 Advertising and marketing 601.58 0.00 269.90 0.00 0.00 0.00 871.48 Employee benefits - administrative 177,791.19 6,277.38 32,424.43 0.00 3,637.14 0.00 220,130.14 Office expenses 194,072.57 10,400.20 21,624.33 0.00 7,332.02 0.00 233,429.12 Legal expenses 0.00 31,771.01 0.00 0.00 0.00 0.00 31,771.01 Travel 15,642.51 8,319.78 2,704.13 0.00 205.16 0.00 26,871.58 Other admin. 39,181.97 78,596.11 6,703.08 0.00 2,897.13 0.00 127,378.29 Total Administrative 960,928.14 161,842.87 219,111.95 0.00 51,258.06 0.00 1,393,141.02 Relocation costs 0.00 0.00 0.00 0.00 35.52 0.00 35.52 Tenant services - other 0.00 0.00 5,458.77 0.00 862.07 0.00 6,320.84 Total Tenant Services 0.00 0.00 5,458.77 0.00 897.59 0.00 6,356.36 Water 0.00 5,442.58 16,316.78 0.00 3,124.07 0.00 24,883.43 Electricity 0.00 20,174.66 13,829.43 0.00 8,239.67 0.00 42,243.76 Gas 0.00 0.00 4,759.74 0.00 2,630.62 0.00 7,390.36 Sewer 0.00 1,923.54 22,459.23 0.00 3,352.74 0.00 27,735.51 Total Utilities 0.00 27,540.78 57,365.18 0.00 17,347.10 0.00 102,253.06 Maintenance labor 0.00 14,142.82 120,005.55 0.00 12,092.60 0.00 146,240.97 Maintenance materials 1,535.22 7,542.25 55,572.44 0.00 7,190.63 0.00 71,840.54 Maintenance contracts 2,987.92 33,410.51 101,125.82 0.00 20,389.04 0.00 157,913.29 Employee benefits - maintenance 0.00 6,877.15 55,849.59 0.00 5,886.93 0.00 68,613.67 Total Maintenance 4,523.14 61,972.73 332,553.40 0.00 45,559.20 0.00 444,608.47 Urlaub & Co., PLLC See Accountant's Compilation Report 4 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Compensated absences Bad debt - tenant rents Bad debt - other Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Transfer between programs and projects - in Transfers between programs and projects - out Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Before Depreciation Depreciation expense Net Income (Loss) Denton Housing Authority Income Statement -Combining 12 Months Ended 9/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 0.00 Fund 0.00 0.00 0.00 0.00 (257,500.00) 0.00 4,688.66 3,868.00 6,235.59 0.00 1,309.72 0.00 16,101.97 0.00 165.45 136.49 219.85 0.00 46.21 0.00 568.00 0.00 2,169.22 1,749.68 2,643.68 0.00 570.42 0.00 7,133.00 0.00 1,459.87 1,210.94 1,909.59 0.00 430.35 0.00 5,010.75 (12,527.35) 8,483.20 6,965.11 11,008.71 0.00 2,356.70 0.00 28,813.72 0.00 4,773.25 2,489.10 0.00 4,106.20 0.00 11,368.55 0.00 4,773.25 2,489.10 0.00 4,106.20 0.00 11,368.55 16,188.24 8,962.69 1,576.55 0.00 2.14 0.00 26,729.62 43,488.77 3,175.86 16,470.26 0.00 1,963.62 0.00 65,098.51 0.00 0.00 689.00 0.00 0.00 0.00 689.00 29,796.88 0.00 0.00 0.00 0.00 0.00 29,796.88 89,473.89 12,138.55 18,735.81 0.00 1,965.76 0.00 122,314.01 10,894,222.68 0.00 0.00 0.00 0.00 0.00 10,894,222.68 331,728.00 0.00 0.00 0.00 0.00 0.00 331,728.00 11,225,950.68 0.00 0.00 0.00 0.00 0.00 11,225,950.68 12,289,359.05 275,233.29 646,722.92 0.00 123,490.61 0.00 13,334,805.87 (22,996.18) 48,070.68 88,604.17 0.00 14,115.99 268,935.19 396,729.85 0.00 (257,500.00) 0.00 0.00 0.00 0.00 (257,500.00) 0.00 0.00 0.00 0.00 0.00 257,500.00 257,500.00 0.00 0.00 39,951.00 0.00 0.00 0.00 39,951.00 0.00 29,716.83 0.00 0.00 26,643.34 0.00 56,360.17 0.00 (227,783.17) 39,951.00 0.00 26,643.34 257,500.00 96,311.17 (22,996.18) 275,853.85 48,653.17 0.00 (12,527.35) 11,435.19 300,418.68 23,564.15 69,669.34 68,441.92 0.00 90,970.31 0.00 252,645.72 $ (46,560.33)$ 206,184.51 $ (19,788.75) $ 0.00 1 (103,497.66) $ 11,435.19 $ 47,772.96 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of September 30, 2016 Assets Current Assets Cash -unrestricted Accounts receivable - PHA projects Accounts receivable - miscellaneous (net) Fraud recovery (net) Accrued interest receivable Prepaid expenses and other assets Inter program - due from Total Current Assets Property and Equipment $ 559,053.62 44,080.15 (35,264.12) 2,084.00 0.28 10,645.40 10,477.00 591,076.33 Buildings 205,955.95 Furniture, equipment and machinery - administration 193,560.66 Accumulated depreciation (300,411.01) Net Property and Equipment 99,105.60 Total Assets $ 690,181.93 Liabilities and Net Position Current Liabilities Accounts payable Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 7 $ 6,790.76 3,120.76 19,844.86 1,469.00 (2,794.10) 28,431.28 12,363.67 12,363.67 40,794.95 99,105.60 572,896.32 23,945.39 (46,560.33) 649,386.98 $ 690,181.93 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 9/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 110,736.00 $ 1,014,300.00 $ 1,125,036.00 Investment income - unrestricted (567.14) 0.00 (567.14) Fraud recovery 1,817.00 1,816.99 3,633.99 Other revenue 49,675.22 0.00 49,675.22 Total Operating Revenues 161,661.08 1,016,116.99 1,177,778.07 Operating Expenses Administrative salaries 16,181.31 0.00 16,181.31 Advertising and marketing 170.04 0.00 170.04 Employee benefits - administrative 13,378.04 0.00 13,378.04 Office expenses 19,206.91 0.00 19,206.91 Travel 1,740.81 0.00 1,740.81 Other admin. 8,179.25 0.00 8,179.25 Total Administrative 58,856.36 0.00 58,856.36 Maintenance materials 250.42 0.00 250.42 Maintenance contracts 60.00 0.00 60.00 Total Maintenance 310.42 0.00 310.42 Housing assistance payments 0.00 942,888.80 942,888.80 HAP portability -in 36,936.00 0.00 36,936.00 Total Housing Assistance Payments 36,936.00 942,888.80 979,824.80 Other general expenses 1,470.11 0.00 1,470.11 Compensated absences 43,488.77 0.00 43,488.77 Bad debt - other 28,913.38 883.50 29,796.88 Total General Expenses 73,872.26 883.50 74,755.76 Total Operating Expenses 169,975.04 943,772.30 1,113,747.34 Operating Income (Loss) (8,313.96) 72,344.69 64,030.73 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) Before Depreciation (8,313.96) 72,344.69 64,030.73 Depreciation expense 23,564.15 0.00 23,564.15 Net Income (Loss) $ (31,878.11) $ 72,344.69 $ 40,466.58 Urlaub & Co., PLLC See Accountant's Compilation Report 8 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 524,713.32 597,204.00 72,490.68 1 Month and 12 Months Ended 9/30/2016 0.00 8,925.00 12,000.00 Current Year to Advertising and marketing 170.04 601.58 Month Date Budget Variance Operating Revenues 177,791.19 189,391.00 11,599.81 HUD PHA operating grants $ 1,125,036.00 $ 11,880,094.00 $ 10,173,739.00 $ (1,706,355.00) Investment income - unrestricted (567.14) 140.21 100.00 (40.21) Fraud recovery 3,633.99 12,877.99 2,000.00 (10,877.99) Other revenue 49,675.22 373,250.67 10,000.00 (363,250.67) Total Operating Revenues 1,177,778.07 12,266,362.87 10,185,839.00 (2,080,523.87) Operating Expenses Administrative salaries 16,181.31 524,713.32 597,204.00 72,490.68 Auditing fees 0.00 8,925.00 12,000.00 3,075.00 Advertising and marketing 170.04 601.58 0.00 (601.58) Employee benefits - administrative 13,378.04 177,791.19 189,391.00 11,599.81 Office expenses 19,206.91 194,072.57 203,500.00 9,427.43 Travel 1,740.81 15,642.51 17,000.00 1,357.49 Other admin. 8,179.25 39,181.97 43,000.00 3,818.03 Total Administrative 58,856.36 960,928.14 1,062,095.00 101,166.86 Maintenance materials 250.42 1,535.22 5,000.00 3,464.78 Maintenance contracts 60.00 2,987.92 5,000.00 2,012.08 Total Maintenance 310.42 4,523.14 10,000.00 5,476.86 Property insurance 0.00 4,688.66 8,411.00 3,722.34 Liability insurance 0.00 165.45 0.00 (165.45) Workmen's compensation 0.00 2,169.22 0.00 (2,169.22) All other insurance 0.00 1,459.87 0.00 (1,459.87) Total Insurance 0.00 8,483.20 8,411.00 (72.20) Housing assistance payments 942,888.80 10,894,222.68 9,162,932.00 (1,731,290.68) HAP portability -in 36,936.00 331,728.00 0.00 (331,728.00) Total Housing Assistance Payments 979,824.80 11,225,950.68 9,162,932.00 (2,063,018.68) Other general expenses 1,470.11 16,188.24 1,000.00 (15,188.24) Compensated absences 43,488.77 43,488.77 0.00 (43,488.77) Bad debt - other 29,796.88 29,796.88 0.00 (29,796.88) Total General Expenses 74,755.76 89,473.89 1,000.00 (88,473.89) Total Operating Expenses 1,113,747.34 12,289,359.05 10,244,438.00 (2,044,921.05) Operating Income (Loss) 64,030.73 (22,996.18) (58,599.00) (35,602.82) Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 3,000.00 3,000.00 Net Income (Loss) Before Depreciation 64,030.73 (22,996.18) (61,599.00) (38,602.82) Depreciation expense 23,564.15 23,564.15 0.00 0.00 Net Income (Loss) $ 40,466.58 $ (46,560.33) $ (61,599.00) $ (38,602.82) Urlaub & Co., PLLC See Accountant's Compilation Report 9 Denton Housing Authority Income Statement -Section 8 Voucher 12 Months Ended 9/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 1,140,717.00 $ 10,739,377.00 $ 11,880,094.00 Investment income - unrestricted 140.21 0.00 140.21 Fraud recovery 6,439.02 6,438.97 12,877.99 Other revenue 373,250.67 0.00 373,250.67 Total Operating Revenues 1,520,546.90 10,745,815.97 12,266,362.87 Operating Expenses Administrative salaries 524,713.32 0.00 524,713.32 Auditing fees 8,925.00 0.00 8,925.00 Advertising and marketing 601.58 0.00 601.58 Employee benefits - administrative 177,791.19 0.00 177,791.19 Office expenses 194,072.57 0.00 194,072.57 Travel 15,642.51 0.00 15,642.51 Other admin. 39,181.97 0.00 39,181.97 Total Administrative 960,928.14 0.00 960,928.14 Maintenance materials 1,535.22 0.00 1,535.22 Maintenance contracts 2,987.92 0.00 2,987.92 Total Maintenance 4,523.14 0.00 4,523.14 Property insurance 4,688.66 0.00 4,688.66 Liability insurance 165.45 0.00 165.45 Workmen's compensation 2,169.22 0.00 2,169.22 All other insurance 1,459.87 0.00 1,459.87 Total Insurance 8,483.20 0.00 8,483.20 Housing assistance payments 0.00 10,894,222.68 10,894,222.68 HAP portability -in 331,728.00 0.00 331,728.00 Total Housing Assistance Payments 331,728.00 10,894,222.68 11,225,950.68 Other general expenses 16,188.24 0.00 16,188.24 Compensated absences 43,488.77 0.00 43,488.77 Bad debt - other 28,913.38 883.50 29,796.88 Total General Expenses 88,590.39 883.50 89,473.89 Total Operating Expenses 1,394,252.87 10,895,106.18 12,289,359.05 Operating Income (Loss) 126,294.03 (149,290.21) (22,996.18) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) Before Depreciation 126,294.03 (149,290.21) (22,996.18) Depreciation expense 23,564.15 0.00 23,564.15 Net Income (Loss) $ 102,729.88 $ (149,290.21) $ (46,560.33) Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Balance Sheet - Management Fund As of September 30, 2016 Assets Current Assets Cash -unrestricted $ 724,892.50 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 189.60 Inventories (net) 986.65 Inter program - due from 35,719.36 Total Current Assets 1,171,609.34 Property and Equipment Land 509,949.32 Buildings 1,828,824.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 780.80 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,629,706.13 Total Assets $ 2,801,315.47 Liabilities and Net Position Current Liabilities Accounts payable $ 13,353.38 Accrued compensated absences - current portion 1,397.76 Accrued liabilities - other 2,934.43 Total Current Liabilities 17,685.57 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 11 1,521.42 1,521.42 19,206.99 1,479,706.13 1,066,501.01 29,716.83 206,184.51 2,782,108.48 $ 2,801,315.47 Denton Housing Authority Income Statement - Management Fund 1 Month and 12 Months Ended 9/30/2016 Current Month Year to Date Operating Revenues (257,500.00) (24,039.66) Management fees $ 4,745.97 $ 55,665.03 Investment income - unrestricted 181.46 494.66 Other revenue (243,600.00) 318,100.02 Gain or loss on disposition of capital assets 0.00 (50,955.74) Total Operating Revenues (238,672.57) 323,303.97 Operating Expenses 12 Administrative salaries 1,498.77 23,503.39 Auditing fees 0.00 2,975.00 Employee benefits - administrative 653.17 6,277.38 Office expenses 1,126.87 10,400.20 Legal expenses 2,510.00 31,771.01 Travel (62.14) 8,319.78 Other admin. 16,315.44 78,596.11 Total Administrative 22,042.11 161,842.87 Water 1,369.23 5,442.58 Electricity 3,903.45 20,174.66 Sewer 271.06 1,923.54 Total Utilities 5,543.74 27,540.78 Maintenance labor 551.52 14,142.82 Maintenance materials 45.59 7,542.25 Maintenance contracts 7,591.79 33,410.51 Employee benefits - maintenance 546.94 6,877.15 Total Maintenance 8,735.84 61,972.73 Property insurance 0.00 3,868.00 Liability insurance 0.00 136.49 Workmen's compensation 0.00 1,749.68 All other insurance 0.00 1,210.94 Total Insurance 0.00 6,965.11 Protective services - other contract costs 376.42 4,773.25 Total Protective Services 376.42 4,773.25 Other general expenses 5,017.94 8,962.69 Compensated absences 3,175.86 3,175.86 Total General Expenses 8,193.80 12,138.55 Total Operating Expenses 44.891.91 275.233.29 Operating Income (Loss) (283,564.48) 48,070.68 Other Financial Items Transfer between programs and projects - in Transfers between programs and projects - out Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Before Depreciation Depreciation expense Net Income (Loss) (257,500.00) (257,500.00) (24,039.66) 0.00 0.00 0.00 780.80 29,716.83 (280,758.86) (227,783.17) (2,805.62) 275,853.85 69,669.34 69,669.34 $ (72,474.96) $ 206,184.51 Urlaub & Co., PLLC See Accountant's Compilation Report 12 Budget $ 56,544.00 100.00 242,000.00 18,721.00 3,500.00 5,871.00 26,800.00 10,000.00 10,000.00 14,500.00 89,392.00 7,500.00 18,000.00 3.000.00 28,500.00 15,015.00 10,000.00 53,500.00 4,710.00 83.225.00 5,000.00 0.00 0.00 3,500.00 3,500.00 5,000.00 0.00 5,000.00 214,617.00 84,027.00 0.00 0.00 10,000.00 10,000.00 20,000.00 64,027.00 $ 64,027.00 Variance $ 878.97 (394.66) (76,100.02) 50,955.74 (24,659.97) (4,782.39) 525.00 (406.38) 16,399.80 (21,771.01) 1,680.22 (64,096.11) (72,450.87) 2,057.42 (2,174.66) 1,076.46 872.18 2,457.75 20,089.49 (2.167.15 21,252.27 1,132.00 (136.49) (1,749.68) (1,210.94) (1,965.11) (1,273.25) (1,273.25) (3,962.69) (3,175.86) (7,138.55) (60,616.29) 35,956.32 257,500.00 0.00 10,000.00 (19,716.83; 247,783.17 (211,826.85) (69,669.34) $ (142,157.51) Denton Housing Authority Balance Sheet - Heritage Oaks As of September 30, 2016 Assets Current Assets Cash -unrestricted $ 917,268.70 Accounts receivable - tenants (net) 11703.10 Prepaid expenses and other assets 355.55 Inventories (net) 6,591.61 Total Current Assets 925,918.96 Property and Equipment Land 334,002.00 Buildings 3,855,527.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,059,290.47 Total Assets $ 1,985,209.43 Liabilities and Net Position Current Liabilities Accounts payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Accrued liabilities - other Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 13 $ 4,966.02 6,257.33 21,300.00 1,182.00 7,110.72 9,787.50 50,603.57 5,835.98 5,835.98 56,439.55 1,059,290.47 849,317.16 39,951.00 (19,788.75) 1,928,769.88 $ 1,985,209.43 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 12 Months Ended 9/30/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 2,975.00 4,000.00 1,025.00 Net tenant rental revenue $ 60,825.00 $ 729,003.00 $ 667,800.00 $ (61,203.00) Tenant revenue - other 218.00 1,984.55 0.00 (1,984.55) Investment income - unrestricted 195.40 1,827.69 400.00 (1,427.69) Other revenue 0.00 2,511.85 2,500.00 (11.85) Total Operating Revenues 61,238.40 735,327.09 670,700.00 (64,627.09) Operating Expenses Administrative salaries 5,964.04 106,339.69 114,352.00 8,012.31 Auditing fees 0.00 2,975.00 4,000.00 1,025.00 Management fees 3,963.51 46,071.39 46,746.00 674.61 Advertising and marketing 0.00 269.90 0.00 (269.90) Employee benefits - administrative 3,207.15 32,424.43 39,401.00 6,976.57 Office expenses 3,851.93 21,624.33 28,500.00 6,875.67 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 133.97 2,704.13 7,000.00 4,295.87 Other admin. 1,320.99 6,703.08 11,000.00 4,296.92 Total Administrative 18,441.59 219,111.95 251,999.00 32,887.05 Tenant services - other 1,205.40 5,458.77 6,000.00 541.23 Total Tenant Services 1,205.40 5,458.77 6,000.00 541.23 Water 2,904.63 16,316.78 18,000.00 1,683.22 Electricity 1,410.99 13,829.43 17,000.00 3,170.57 Gas 652.50 4,759.74 8,500.00 3,740.26 Sewer 3,947.60 22,459.23 23,000.00 540.77 Total Utilities 8,915.72 57,365.18 66,500.00 9,134.82 Maintenance labor 10,649.30 120,005.55 124,982.00 4,976.45 Maintenance materials 2,607.14 55,572.44 50,000.00 (5,572.44) Maintenance contracts 13,434.60 101,125.82 90,000.00 (11,125.82) Employee benefits - maintenance 4,925.49 55,849.59 43,064.00 (12,785.59) Total Maintenance 31,616.53 332,553.40 308,046.00 (24,507.40) Property insurance 4.72 6,235.59 13,000.00 6,764.41 Liability insurance 0.00 219.85 0.00 (219.85) Workmen's compensation 0.00 2,643.68 0.00 (2,643.68) All other insurance 0.00 1,909.59 0.00 (1,909.59) Total Insurance 4.72 11,008.71 13,000.00 1,991.29 Protective services - other contract costs 210.85 2,489.10 3,000.00 510.90 Total Protective Services 210.85 2,489.10 3,000.00 510.90 Other general expenses 0.00 1,576.55 0.00 (1,576.55) Compensated absences 16,470.26 16,470.26 0.00 (16,470.26) Bad debt - tenant rents 689.00 689.00 0.00 (689.00) Total General Expenses 17,159.26 18,735.81 0.00 (18,735.81) Total Operating Expenses 77,554.07 646,722.92 648,545.00 1,822.08 Operating Income (Loss) (16,315.67) 88,604.17 22,155.00 (66,449.17) Other Financial Items Replacement of equipment 0.00 39,951.00 18,000.00 (21,951.00) Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 39,951.00 18,000.00 (21,951.00) Urlaub & Co., PLLC See Accountant's Compilation Report 14 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 12 Months Ended 9/30/2016 Current Month Year to Date Net Income (Loss) Before Depreciation Depreciation expense Net Income (Loss) (16,315.67) 48,653.17 68,441.92 68,441.92 $ (84,757.59) $ (19,788.75) Urlaub & Co., PLLC See Accountant's Compilation Report 15 Budget 4,155.00 0.00 $ 4,155.00 Variance (44,498.17) (68,441.92) $ 23,943.75 Denton Housing Authority Balance Sheet - Disaster Funds As of September 30, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 16 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 12 Months Ended 9/30/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of September 30, 2016 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities 2,458,564.81 Net Position Investment in capital assets 2,470,000.00 Unrestricted (2,470,000.00) Net income (loss) 11,435.19 Total Net Position 11,435.19 Total Liabilities and Net Position $ 2,470,000.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 12 Months Ended 9/30/2016 Current Month Year to Date Operating Revenues Other revenue Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Transfers between programs and projects - out Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) $ 268,935.19 $ 268,935.19 268,935.19 268,935.19 0.00 0.00 268,935.19 268,935.19 257,500.00 257,500.00 0.00 0.00 0.00 0.00 257.500.00 257.500.00 $ 11,435.19 $ 11,435.19 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Denton Housing Authority Balance Sheet - Pecan Place As of September 30, 2016 Assets Current Assets Cash -unrestricted $ 10,367.32 Accounts receivable - tenants (net) 290.00 Inventories (net) 999.73 Total Current Assets 11,657.05 Property and Equipment Land 159,009.13 Buildings 2,355,585.97 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Net Property and Equipment 853,183.21 Total Assets $ 864,840.26 Liabilities and Net Position Current Liabilities Accounts payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Accrued liabilities - other Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 20 $ 5,977.43 893.71 4,000.00 315.00 1,916.21 39,202.96 52,305.31 907.56 907.56 53,212.87 853,183.21 35,298.50 26,643.34 (103,497.66) 811,627.39 $ 864,840.26 Denton Housing Authority Income Statement - Pecan Place 1 Month and 12 Months Ended 9/30/2016 Urlaub & Co., PLLC See Accountant's Compilation Report 21 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 11,178.00 $ 137,320.00 $ 137,169.00 $ (151.00) Tenant revenue - other 69.00 274.00 0.00 (274.00) Investment income - unrestricted 1.01 12.60 30.00 17.40 Other revenue 0.00 0.00 100.00 100.00 Total Operating Revenues 11,248.01 137,606.60 137,299.00 (307.60) Operating Expenses Administrative salaries 2,277.60 25,467.97 25,860.00 392.03 Auditing fees 0.00 2,125.00 2,500.00 375.00 Management fees 782.46 9,593.64 9,798.00 204.36 Employee benefits - administrative 331.64 3,637.14 6,191.00 2,553.86 Office expenses 663.04 7,332.02 10,500.00 31167.98 Legal expenses 0.00 0.00 500.00 500.00 Travel 23.10 205.16 1,400.00 1,194.84 Other admin. 332.89 2,897.13 5,500.00 2,602.87 Total Administrative 4,410.73 51,258.06 62,249.00 10,990.94 Relocation costs 0.00 35.52 0.00 (35.52) Tenant services - other 66.29 862.07 1,200.00 337.93 Total Tenant Services 66.29 897.59 1,200.00 302.41 Water 329.90 3,124.07 3,000.00 (124.07) Electricity 918.99 8,239.67 7,000.00 (1,239.67) Gas 190.13 2,630.62 4,500.00 1,869.38 Sewer 380.32 3,352.74 3,000.00 (352.74) Total Utilities 1,819.34 17,347.10 17,500.00 152.90 Maintenance labor 402.81 12,092.60 12,932.00 839.40 Maintenance materials 671.25 7,190.63 3,500.00 (3,690.63) Maintenance contracts 7,849.00 20,389.04 20,000.00 (389.04) Employee benefits - maintenance 464.20 5,886.93 3,096.00 (2,790.93) Total Maintenance 9,387.26 45,559.20 39,528.00 (6,031.20) Property insurance 0.00 1,309.72 2,330.00 1,020.28 Liability insurance 0.00 46.21 0.00 (46.21) Workmen's compensation 0.00 570.42 0.00 (570.42) All other insurance 0.00 430.35 0.00 (430.35) Total Insurance 0.00 2,356.70 2,330.00 (26.70) Protective services - other contract costs 194.85 4,106.20 2,000.00 (2,106.20) Total Protective Services 194.85 4,106.20 2,000.00 (2,106.20) Other general expenses 0.95 2.14 0.00 (2.14) Compensated absences 1,963.62 1,963.62 0.00 (1,963.62) Total General Expenses 1,964.57 1,965.76 0.00 (1,965.76) Total Operating Expenses 17,843.04 123,490.61 124,807.00 1,316.39 Operating Income (Loss) (6,595.03) 14,115.99 12,492.00 (1,623.99) Other Financial Items Transfer between programs and projects - in 24,039.66 0.00 0.00 0.00 Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 2,603.68 26,643.34 0.00 (26,643.34) Total Other Financial Items 26,643.34 26,643.34 3,000.00 (23,643.34) Urlaub & Co., PLLC See Accountant's Compilation Report 21 Denton Housing Authority Income Statement - Pecan Place 1 Month and 12 Months Ended 9/30/2016 Current Month Year to Date Budget Net Income (Loss) Before Depreciation (33,238.37) (12,527.35) 9,492.00 Depreciation expense 90,970.31 90,970.31 0.00 Net Income (Loss) $ (124,208.68) $ (103,497.66) $ 9,492.00 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Variance 22,019.35 (90,970.31) $ 112,989.66 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 175,593.43 166,365.30 161,557.07 136,161.11 154,137.48 16,098.48 9,105.00 27,133.50 45,29225 2,643.87 (21,516.30) (48,399.30) 175,593.43 Revenues: Annual Contributions 879,609.00 875,118.00 875,118.00 919,375.00 752,196.00 897,703.00 914,727.00 905,828.00 882,327.00 911,538.00 911,538.00 1,014,300.00 10,739,377.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 274.87 174.37 474.87 903.37 208.00 1,008.50 152.50 867.50 437.00 - 121.00 1,816.99 6,438.97 Total Revenue 879,883.87 875292.37 875,592.87 920278.37 752,404.00 898,711.50 914,879.50 906,695.50 882,764.00 911,538.00 911,659.00 1,016,116.99 10,745,815.97 Expenses: HAP Payments 889,112.00 880,100.60 898,631.00 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 925,412.38 935,698.17 938,542.00 942,888.80 10,894,222.68 Concur with HUD 12/31/15 NRP 2,357.83 2,357.83 Fraud Bad Debt HAP Porti, 883.50 883.50 Total Expenses 889,112.00 880,100.60 900,988.83 902,302.00 890,443.00 905,704.98 896851.00 888,536.75 925,412.38 935,698.17 938,542.00 943,772.30 10,897,464.01 Net Income (Loss) (9,228.13) (4,808.23) (25,395.96) 17,976.37 (138,039.00) (6,993.48) 18,028.50 18,158.75 (42,648.38) (24,160.17) (26,883.00) 72,344.69 (151,648.04) Ending HAP Equity166765.30 16757.07 136171.11 1547748 16��9848 9175.00 Zia 4527225 2��43.87 21! 516.301 !48399.30) 2��94539 2��94539 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 397,684.13 410,060.59 424,794.03 431,414.27 452,403.16 465,668.67 481,755.88 471,763.21 483,391.88 491,203.52 513,027.37 534,649.95 397,684.13 Revenues: - Annual Contributions 91,268.00 91,446.00 92,155.00 92,096.00 93,978.00 94,465.00 93,491.00 94,878.00 94,878.00 95,494.00 95,832.00 110,736.00 1,140,717.00 Interest Income 2086. 18.89 18.98 2075. 16.69 16.37 1908. 516.83 18.50 2203. 18.37 (567.14) 140.21 Other Income 13,460.11 17,079.16 19,451.60 27,791.73 27,153.95 32,677.55 33,009.14 43,593.64 42,484.37 34,178.77 32,695.43 49,67522 373,250.67 Fraud Income (Admin) 274.88 174.38 474.88 903.38 208.00 1.008.50 152.50 867.50 437.00 - 121.00 1.817.00 6.439.02 Total Revenue 105,023.85 108,718.43 112,100.46 120,811.86 121,356.64 128,167.42 126,671.72 139,855.97 137,817.87 129,694.80 128,666.80 161,661.08 1,520,546.90 Expens Admin Expenses 92,647.39 93,984.99 107,838.05 99,822.97 108,091.13 112,080.21 136,664.39 128,227.30 130,006.23 107,870.95 107,044.22 169,975.04 1,394,252.87 Concur with HUD 12/31/15 NRP (2,357.83) (2,357.83) Depreciation Expense - - - - - - - - - - - - - Total Expenses 92.647.39 93.984.99 105.480.22 99.822.97 108.091.13 112.080.21 136.664.39 128.227.30 130.006.23 107.870.95 107.044.22 169.975.04 1.391.895.04 Net Income (Loss) 12,376.46 14,733.44 6,620.24 20,988.89 13,265.51 16,08721 (9,992.67) 11,628.67 7,811.64 21,823.85 21,622.58 (8,313.96) 128,651.86 Ending Admin Equity 410.060.59 424.794.03 431.414.27 452.403.16 465.66867 481.755.88 471.763.21 483.391.88 491.203.52 513.027.37 534.649.95 526.335.99 526.335.99 Restricteol 23,945.39 Unrestricted 526,335.99 Investment in Net Capital Assets 122.669.75 Total Equity 67951.13 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% Denton Housing Authority $ 595.19 Section 8 Utilization Report 99% For the Year Ended December 31, 2016 106% 106% Annual Budget Authority Actual 10,104,344 10,104,344 HUD -held Program Reserve 1,031,715 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve $ 595.95 Total Funding Available 11,274,578 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% 110% 107% $ 621.50 $ 600.43 98% 98% 111% 108% $ 620.49 $ 603.30 99% 99% 111% 108% $ 619.91 $ 605.39 99% 99% 112% 109% $ 632.39 $ 608.37 98% 99% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance "is Urlaub & Co., PLLC CERTIFIED PUBLIC ACCOUNTANT November 17, 2016 Denton Housing Authority Sherri McDade, Executive Director 1225 Wilson Street Denton, TX 76205 To Sherri McDade: Enclosed please find your financial statements for the year ended September 30, 2016. Please note the following financial information: Section 8 Program: Unrestricted Net Position Post 2003 Admin Fees Reserves $ 526,335.99 Restricted Net Position September 30, 2016 $ 23,945.39 Net Income (Loss) before Depreciation $ (22,996.18) Heritage Oaks: Unrestricted Net Position September 30, 2016 $ 869,479.41 Net Income (Loss) before Depreciation $ 48,653.17 Tenant Accounts Receivable at September 30, 2016 $ 2,985.50 Management Fund: Unrestricted Net Position September 30, 2016 $ 1,302,402.35 Net Income (Loss) before Depreciation $ 275,853.85 State/Local : Unrestricted Net Assets September 30, 2016 $ 81,827.31 Pecan Place: Unrestricted Net Position September 30, 2016 $ (41,555.82) Net Income (Loss) before Depreciation $ (12,527.35) Tenant Accounts Receivable at September 30, 2016 $ 290.00 The FYE 2016 Audit (if required) must be submitted to REAC electronically by you and your auditor. The deadline is June 30, 2017. If the audit is not submitted by the due date you will automatically be transferred to troubled status. Sincerely, Sabrina Pulliam Senior Staff Accountant P.O. BOX 2663 Ada, Oklahoma 74821-2663 1PHONE: 580.332.4802 FAX.- 580.436.0344 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of October 31, 2016, and the related income statement for the 1 Month and 1 Month then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC December 01, 2016 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of October 31, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 537,219.01 $ 722,381.93 $ 933,768.22 $ 0.00 $ 9,859.42 $ 0.00 $ 2,203,228.58 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 48,561.36 0.00 0.00 0.00 0.00 0.00 48,561.36 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 (1,514.90) 0.00 (445.00) 0.00 (1,959.90) Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 9,186.79 157.99 296.29 0.00 0.00 0.00 9,641.07 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 10,505.33 20,386.72 0.00 0.00 0.00 0.00 30,892.05 Total Current Assets 572,292.65 1,153,734.52 939,141.22 81,827.31 10,414.15 0.00 2,757,409.85 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,828,824.92 3,855,527.68 0.00 2,355,585.97 0.00 8,245,894.52 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 193,560.66 36,076.58 62,090.68 0.00 10,059.64 0.00 301,787.56 Accumulated depreciation (300,411.01) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,111,599.72) Construction in progress 0.00 1,561.59 0.00 0.00 0.00 0.00 1,561.59 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 99,105.60 1,630,486.92 1,059,290.47 0.00 853,183.21 2,470,000.00 6,112,066.20 Total Assets L_6 71,398.25 $ 2,784,221.44 $ 1,998,431.69 L_81 827.31 $ 863,597.36 $ 2,470,000.00 L8&6_9 476.05 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of October 31, 2016 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 0.00 0.00 Fund 0.00 780.79 Net income (loss) 4,470.48 Current Liabilities 29,978.35 0.00 3,119.06 0.00 35,980.88 Accrued wage/payroll taxes payable $ 2,711.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2,711.00 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,150.00 0.00 3,750.00 0.00 24,900.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to (18,847.74) 0.00 6,440.15 0.00 43,299.64 0.00 30,892.05 Total Current Liabilities 5,177.12 1,397.76 33,847.48 0.00 47,943.35 2,458,564.81 2,546,930.52 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 17,540.79 2,919.18 39,683.46 0.00 48,850.91 2,458,564.81 2,567,559.15 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 0.00 780.79 0.00 0.00 0.00 0.00 780.79 Net income (loss) 4,470.48 (1,587.01) 29,978.35 0.00 3,119.06 0.00 35,980.88 Total Net Position 653,857.46 2,781,302.26 1,958,748.23 81,827.31 814,746.45 11,435.19 6,301,916.90 Total Liabilities and Net Position L_671,398.25 $ 2,784,221.44 $1,998,431.69 $ 81,827.31 $ 863,597.36 $ 2,470,000.00 $ 8,869,476.05 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Operating Revenues Net tenant rental revenue Tenant revenue - other HUD PHA operating grants Management fees Investment income - unrestricted Fraud recovery Other revenue Total Operating Revenues Operating Expenses Administrative salaries Management fees Employee benefits - administrative Office expenses Travel Other admin. Total Administrative Tenant services - other Total Tenant Services Gas Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Denton Housing Authority Income Statement -Combining 1 Month Ended 10/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund $ 0.00 $ 0.00 $ 59,718.00 $ 0.00 $ 10,300.00 $ 0.00 $ 70,018.00 0.00 0.00 304.25 0.00 6.00 0.00 310.25 1,010,727.00 0.00 0.00 0.00 0.00 0.00 1,010,727.00 0.00 4,938.92 0.00 0.00 0.00 0.00 4,938.92 22.94 23.16 206.70 0.00 0.64 0.00 253.44 200.00 0.00 0.00 0.00 0.00 0.00 200.00 39,726.49 14,360.00 545.83 0.00 3,000.00 0.00 57,632.32 1,050,676.43 19,322.08 60,774.78 0.00 13,306.64 0.00 1,144,079.93 42,047.31 8,218.61 6,645.71 0.00 3,783.92 0.00 60,695.55 0.00 0.00 4,217.92 0.00 721.00 0.00 4,938.92 9,481.45 1,494.97 1,595.68 0.00 614.82 0.00 13,186.92 12,506.92 1,715.15 289.00 0.00 167.80 0.00 14,678.87 4,201.27 984.79 247.51 0.00 108.50 0.00 5,542.07 1,532.75 15.61 270.51 0.00 (112.75) 0.00 1,706.12 69,769.70 12,429.13 13,266.33 0.00 5,283.29 0.00 100,748.45 0.00 0.00 513.46 0.00 32.37 0.00 545.83 0.00 0.00 513.46 0.00 32.37 0.00 545.83 0.00 0.00 166.41 0.00 0.00 0.00 166.41 0.00 0.00 166.41 0.00 0.00 0.00 166.41 0.00 2,507.65 9,031.50 0.00 1,075.52 0.00 12,614.67 0.00 128.22 2,111.06 0.00 695.44 0.00 2,934.72 15.00 418.28 500.00 0.00 1,350.00 0.00 2,283.28 0.00 582.89 3,471.02 0.00 971.55 0.00 5,025.46 15.00 3,637.04 15,113.58 0.00 4,092.51 0.00 22,858.13 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 1 Month Ended 10/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 2,366.81 1,012.07 0.00 391.67 0.00 4,427.55 36.80 132.58 56.69 0.00 21.93 0.00 248.00 263.41 948.92 405.77 0.00 157.20 0.00 1,775.30 170.35 613.82 262.12 0.00 100.61 0.00 1,146.90 1,127.56 4,062.13 1,736.65 0.00 671.41 0.00 7,597.75 0.00 0.00 0.00 0.00 108.00 0.00 108.00 0.00 0.00 0.00 0.00 108.00 0.00 108.00 1,431.69 0.00 0.00 0.00 0.00 0.00 1,431.69 1,431.69 0.00 0.00 0.00 0.00 0.00 1,431.69 936,926.00 0.00 0.00 0.00 0.00 0.00 936,926.00 36,936.00 0.00 0.00 0.00 0.00 0.00 36,936.00 973,862.00 0.00 0.00 0.00 0.00 0.00 973,862.00 1,046,205.95 20,128.30 30,796.43 0.00 10,187.58 0.00 1,107,318.26 4,470.48 (806.22) 29,978.35 0.00 3,119.06 0.00 36,761.67 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 780.79 0.00 0.00 0.00 0.00 780.79 0.00 780.79 0.00 0.00 0.00 0.00 780.79 $ 4,470.48 $ (1,587.01) $ 29,978.35 $ 0.00 $ 3,119.06 $ 0.00 $ 35,980.88 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of October 31, 2016 Assets Current Assets Cash -unrestricted $ 537,219.01 Accounts receivable - PHA projects 48,561.36 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 9,186.79 Inter program - due from 10,505.33 Total Current Assets 572,292.65 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 193,560.66 Accumulated depreciation (300,411.01) Net Property and Equipment 99,105.60 Total Assets $ 671,398.25 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable $ 2,711.00 Accrued compensated absences - current portion 19,844.86 Unearned revenue 1,469.00 Inter program - due to (18,847.74) Total Current Liabilities 5,177.12 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 12,363.67 12,363.67 17,540.79 99,105.60 526,335.99 23,945.39 4,470.48 653,857.46 $ 671,398.25 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 10/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 96,727.00 $ 914,000.00 $ 1,010,727.00 Investment income - unrestricted 22.94 0.00 22.94 Fraud recovery 100.00 100.00 200.00 Other revenue 39,726.49 0.00 39,726.49 Total Operating Revenues 136,576.43 914,100.00 1,050,676.43 Operating Expenses Administrative salaries 42,047.31 0.00 42,047.31 Employee benefits - administrative 9,481.45 0.00 9,481.45 Office expenses 12,506.92 0.00 12,506.92 Travel 4,201.27 0.00 4,201.27 Other admin. 1,532.75 0.00 1,532.75 Total Administrative 69,769.70 0.00 69,769.70 Maintenance contracts 15.00 0.00 15.00 Total Maintenance 15.00 0.00 15.00 Property insurance 657.00 0.00 657.00 Liability insurance 36.80 0.00 36.80 Workmen's compensation 263.41 0.00 263.41 All other insurance 170.35 0.00 170.35 Total Insurance 1,127.56 0.00 1,127.56 Housing assistance payments 0.00 936,926.00 936,926.00 HAP portability -in 36,936.00 0.00 36,936.00 Total Housing Assistance Payments 36,936.00 936,926.00 973,862.00 Other general expenses 1,431.69 0.00 1,431.69 Total General Expenses 1,431.69 0.00 1,431.69 Total Operating Expenses 109,279.95 936,926.00 1,046,205.95 Operating Income (Loss) 27,296.48 (22,826.00) 4,470.48 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 27,296.48 $ (22,826.00) $ 4,470.48 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Revenues HUD PHA operating grants Investment income - unrestricted Fraud recovery Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Advertising and marketing Employee benefits - administrative Office expenses Travel Other admin. Total Administrative Maintenance materials Maintenance contracts Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Housing assistance payments HAP portability -in Total Housing Assistance Payments Other general expenses Total General Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Section 8 Voucher 1 Month and 1 Month Ended 10/31/2016 Current Year to Month Date Budget Variance $ 1,010,727.00 $ 1,010,727.00 $ 11,320,235.00 $ 10,309,508.00 22.94 22.94 800.00 777.06 200.00 200.00 2,000.00 1,800.00 39,726.49 39,726.49 10,000.00 (29,726.49) 1,050,676.43 1,050,676.43 11,333,035.00 10,282, 358.57 42,047.31 42,047.31 634,178.00 592,130.69 0.00 0.00 12,750.00 12,750.00 0.00 0.00 500.00 500.00 9,481.45 9,481.45 256,179.00 246,697.55 12,506.92 12,506.92 202,000.00 189,493.08 4,201.27 4,201.27 17,000.00 12,798.73 1,532.75 1,532.75 46,195.00 44,662.25 69,769.70 69,769.70 1,168,802.00 1,099,032.30 0.00 0.00 3,000.00 3,000.00 15.00 15.00 5,000.00 4,985.00 15.00 15.00 8,000.00 7,985.00 657.00 657.00 5,000.00 4,343.00 36.80 36.80 200.00 163.20 263.41 263.41 2,200.00 1,936.59 170.35 170.35 1,500.00 1,329.65 1,127.56 1,127.56 8,900.00 7,772.44 936,926.00 936,926.00 10,104,344.00 9,167,418.00 36,936.00 36,936.00 0.00 (36,936.00) 973,862.00 973,862.00 10,104,344.00 9,130,482.00 1,431.69 1,431.69 10,000.00 8,568.31 1,431.69 1,431.69 10,000.00 8,568.31 1,046,205.95 1,046,205.95 11,300,046.00 10,253,840.05 4,470.48 4,470.48 32,989.00 28,518.52 0.00 0.00 33,000.00 33,000.00 0.00 0.00 0.00 0.00 0.00 0.00 33,000.00 33,000.00 $ 4,470.48 $ 4,470.48 $ (11.00) $ (1481.48) Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 10/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 96,727.00 $ 914,000.00 $ 1,010,727.00 Investment income - unrestricted 22.94 0.00 22.94 Fraud recovery 100.00 100.00 200.00 Other revenue 39,726.49 0.00 39,726.49 Total Operating Revenues 136,576.43 914,100.00 1,050,676.43 Operating Expenses Administrative salaries 42,047.31 0.00 42,047.31 Employee benefits - administrative 9,481.45 0.00 9,481.45 Office expenses 12,506.92 0.00 12,506.92 Travel 4,201.27 0.00 4,201.27 Other admin. 1,532.75 0.00 1,532.75 Total Administrative 69,769.70 0.00 69,769.70 Maintenance contracts 15.00 0.00 15.00 Total Maintenance 15.00 0.00 15.00 Property insurance 657.00 0.00 657.00 Liability insurance 36.80 0.00 36.80 Workmen's compensation 263.41 0.00 263.41 All other insurance 170.35 0.00 170.35 Total Insurance 1,127.56 0.00 1,127.56 Housing assistance payments 0.00 936,926.00 936,926.00 HAP portability -in 36,936.00 0.00 36,936.00 Total Housing Assistance Payments 36,936.00 936,926.00 973,862.00 Other general expenses 1,431.69 0.00 1,431.69 Total General Expenses 1,431.69 0.00 1,431.69 Total Operating Expenses 109,279.95 936,926.00 1,046,205.95 Operating Income (Loss) 27,296.48 (22,826.00) 4,470.48 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 27,296.48 $ (22,826.00) $ 4,470.48 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of October 31, 2016 Assets Current Assets 509,949.32 Cash -unrestricted $ 722,381.93 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 157.99 Inventories (net) 986.65 Inter program - due from 20,386.72 Total Current Assets 1,153,734.52 Property and Equipment Land 509,949.32 Buildings 1,828,824.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,630,486.92 Total Assets $ 2,784,221.44 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 780.79 (1,587.01) 2,781,302.26 $ 2,784,221.44 Denton Housing Authority Income Statement - Management Fund 1 Month and 1 Month Ended 10/31/2016 Current Month Year to Date Budget Variance Operating Revenues Management fees $ 4,938.92 $ 4,938.92 $ 63,399.00 $ 58,460.08 Investment income - unrestricted 23.16 23.16 300.00 276.84 Other revenue 14,360.00 14,360.00 1,424,600.00 1,410,240.00 Total Operating Revenues 19,322.08 19,322.08 1,488,299.00 1,468,976.92 Operating Expenses Administrative salaries 8,218.61 8,218.61 217,231.00 209,012.39 Auditing fees 0.00 0.00 1,360.00 1,360.00 Employee benefits - administrative 1,494.97 1,494.97 55,812.00 54,317.03 Office expenses 1,715.15 1,715.15 30,500.00 28,784.85 Legal expenses 0.00 0.00 50,000.00 50,000.00 Travel 984.79 984.79 10,000.00 9,015.21 Other admin. 15.61 15.61 96,260.00 96,244.39 Total Administrative 12,429.13 12,429.13 461,163.00 448,733.87 Water 0.00 0.00 5,000.00 5,000.00 Electricity 0.00 0.00 17,000.00 17,000.00 Sewer 0.00 0.00 2,000.00 2,000.00 Total Utilities 0.00 0.00 24,000.00 24,000.00 Maintenance labor 2,507.65 2,507.65 38,164.00 35,656.35 Maintenance materials 128.22 128.22 8,000.00 7,871.78 Maintenance contracts 418.28 418.28 38,600.00 38,181.72 Employee benefits - maintenance 582.89 582.89 6,324.00 5,741.11 Total Maintenance 3,637.04 3,637.04 91,088.00 87,450.96 Property insurance 2,366.81 2,366.81 2,700.00 333.19 Liability insurance 132.58 132.58 100.00 (32.58) Workmen's compensation 948.92 948.92 1,000.00 51.08 All other insurance 613.82 613.82 900.00 286.18 Total Insurance 4,062.13 4,062.13 4,700.00 637.87 Protective services - other contract costs 0.00 0.00 5,500.00 5,500.00 Total Protective Services 0.00 0.00 5,500.00 5,500.00 Other general expenses 0.00 0.00 5,000.00 5,000.00 Payments in lieu of taxes 0.00 0.00 4,800.00 4,800.00 Total General Expenses 0.00 0.00 9,800.00 9,800.00 Total Operating Expenses 20,128.30 20,128.30 596,251.00 576,122.70 Operating Income (Loss) (806.22) (806.22) 892,048.00 892,854.22 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 780.79 780.79 40,000.00 39,219.21 Total Other Financial Items 780.79 780.79 80,000.00 79,219.21 Net Income (Loss) $ (1,587.01) $ (1,587.01) $ 812,048.00 $ 813,635.01 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of October 31, 2016 Assets Current Assets Cash -unrestricted $ 933,768.22 Accounts receivable - tenants (net) (1,514.90) Prepaid expenses and other assets 296.29 Inventories (net) 6,591.61 Total Current Assets 939,141.22 Property and Equipment Land 334,002.00 Buildings 3,855,527.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,059,290.47 Total Assets $ 1,998,431.69 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,150.00 Inter program - due to 6,440.15 Total Current Liabilities 33,847.48 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 39,683.46 1,059,290.47 869,479.41 29,978.35 1,958,748.23 $ 1,998,431.69 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 1 Month Ended 10/31/2016 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 59,718.00 $ 59,718.00 $ 722,190.00 $ 662,472.00 Tenant revenue - other 304.25 304.25 1,500.00 1,195.75 Investment income - unrestricted 206.70 206.70 1,500.00 1,293.30 Other revenue 545.83 545.83 2,500.00 1,954.17 Total Operating Revenues 60,774.78 60,774.78 727,690.00 666,915.22 Operating Expenses Administrative salaries 6,645.71 6,645.71 137,250.00 130,604.29 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 4,217.92 4,217.92 53,599.00 49,381.08 Employee benefits - administrative 1,595.68 1,595.68 58,650.00 57,054.32 Office expenses 289.00 289.00 26,500.00 26,211.00 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 247.51 247.51 7,000.00 6,752.49 Other admin. 270.51 270.51 14,300.00 14,029.49 Total Administrative 13,266.33 13,266.33 300,849.00 287,582.67 Tenant services - other 513.46 513.46 6,000.00 5,486.54 Total Tenant Services 513.46 513.46 6,000.00 5,486.54 Water 0.00 0.00 15,000.00 15,000.00 Electricity 0.00 0.00 15,000.00 15,000.00 Gas 166.41 166.41 6,000.00 5,833.59 Sewer 0.00 0.00 21,000.00 21,000.00 Total Utilities 166.41 166.41 57,000.00 56,833.59 Maintenance labor 9,031.50 9,031.50 145,455.00 136,423.50 Maintenance materials 2,111.06 2,111.06 52,000.00 49,888.94 Maintenance contracts 500.00 500.00 115,500.00 115,000.00 Employee benefits - maintenance 3,471.02 3,471.02 67,931.00 64,459.98 Total Maintenance 15,113.58 15,113.58 380,886.00 365,772.42 Property insurance 1,012.07 1,012.07 7,350.00 6,337.93 Liability insurance 56.69 56.69 300.00 243.31 Workmen's compensation 405.77 405.77 3,500.00 3,094.23 All other insurance 262.12 262.12 2,300.00 2,037.88 Total Insurance 1,736.65 1,736.65 13,450.00 11,713.35 Protective services - other contract costs 0.00 0.00 2,600.00 2,600.00 Total Protective Services 0.00 0.00 2,600.00 2,600.00 Total Operating Expenses 30,796.43 30,796.43 760,785.00 729,988.57 Operating Income (Loss) 29,978.35 29,978.35 (33,095.00) (63,073.35) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 0.00 0.00 101,000.00 101,000.00 Total Other Financial Items 0.00 0.00 106,000.00 106,000.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 1 Month Ended 10/31/2016 Current Month Year to Date $ 29,978.35 $ 29,978.35 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (169,073.35) Denton Housing Authority Balance Sheet - Disaster Funds As of October 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 1 Month Ended 10/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of October 31, 2016 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 1 Month Ended 10/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of October 31, 2016 Assets Current Assets Cash -unrestricted $ 9,859.42 Accounts receivable - tenants (net) (445.00) Inventories (net) 999.73 Total Current Assets 10,414.15 Property and Equipment Land 159,009.13 Buildings 2,355,585.97 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Net Property and Equipment 853,183.21 Total Assets $ 863,597.36 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 3,750.00 Inter program - due to 43,299.64 Total Current Liabilities 47,943.35 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 48,850.91 853,183.21 (41,555.82) 3,119.06 814,746.45 $ 863,597.36 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Management fees Employee benefits - administrative Office expenses Legal expenses Travel Other admin. Total Administrative Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Denton Housing Authority Income Statement - Pecan Place 1 Month and 1 Month Ended 10/31/2016 Current Month Year to Date $ 10,300.00 6.00 0.64 3,000.00 13,306.64 3,783.92 0.00 721.00 614.82 167.80 0.00 108.50 (112.75) 5,283.29 0.00 0.00 0.00 0.00 1,075.52 695.44 1,350.00 391.67 21.93 157.20 100.61 671.41 108.00 108.00 $ 10,300.00 6.00 0.64 3,000.00 13,306.64 3,783.92 0.00 721.00 614.82 167.80 0.00 108.50 (112.75 5,283.29 0.00 0.00 0.00 0.00 0.00 1,075.52 695.44 1,350.00 391.67 21.93 157.20 100.61 671.41 108.00 108.00 Budget $ 157,055.00 200.00 10.00 27,502.00 340.00 9,800.00 4,342.00 14,000.00 500.00 1,400.00 5,240.00 63,124.00 1,200.00 1,200.00 3,000.00 7,000.00 3,000.00 3,500.00 16,500.00 17,740.00 7,000.00 19,500.00 5,482.00 49.722.00 1,300.00 50.00 800.00 3,600.00 3,600.00 Variance $ 146,755.00 194.00 9.36 (3,000.00) 143,958.36 23,718.08 340.00 9,079.00 3,727.18 13,832.20 500.00 1,291.50 5,352.75 57,840.71 1,167.63 1,167.63 3,000.00 7,000.00 3,000.00 3,500.00 16,500.00 16,664.48 6,304.56 18,150.00 4,510.45 45.629.49 908.33 28.07 642.80 3,492.00 3,492.00 Total Operating Expenses 10,187.58 10,187.58 136,996.00 126,808.42 Operating Income (Loss) 3,119.06 3,119.06 20,269.00 17,149.94 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 0.00 20,000.00 20,000.00 Total Other Financial Items 0.00 0.00 23,000.00 23,000.00 Net Income (Loss) $ 3,119.06 $ 3,119.06 $ (2,731.00) $ (5,850.06) Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 1,119.39 23,945.39 Revenues: Annual Contributions 914,000.00 914,000.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 - - - - - - - - - - - 100.00 Total Revenue 914.100.00 914.100.00 Expenses: HAP Payments 936,926.00 936,926.00 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 - - - - - - - - - - - 936,926.00 Net Income (Loss) (22,826.00) - - - - - - - - - - - (22,826.00) Ending HAP Equity 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 1.119.39 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 553,632.47 526,335.99 Revenues: - Annual Contributions 96,727.00 96,727.00 Interest Income 22.94 22.94 Other Income 39,726.49 39,726.49 Fraud Income (Admin) 100.00 - - - - - - - - - - - 100.00 Total Revenue 136,576.43 136,576.43 Expens Admin Expenses 109,279.95 109,279.95 Concur with HUD 12/31/1E - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 - - - - - - - - - - - 109279.95 Net Income (Loss) 27,296.48 - - - - - - - - - - - 27,296.48 Ending Admin Equity 55LILd7 553��3247 5536��247 553��3247 553��3247 5536��247 5536��247 5536��3247 553��3247 5536��3247 553��3247 553��3247 526��58.93 Restricteol 1,119.39 Unrestricted 526,458.93 Investment in Net Capital Assets 99,105.60 Total Equity 626,683.92 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Denton Housing Authority Section 8 Utilization Report For the Year Ended December 31, 2016 % of Year to 107% 107% $ 595.19 $ 595.19 99% 99% Annual Budget Authority Actual 106% 10,104,344 10,104,344 98% 99% HUD -held Program Reserve 107% 1,031,715 750,000 99% 99% PHA -held NRA Balance 107% 138,519 13$,519 98% Monthly HAP payments Administrative Fee Reserve 107% $ 593.15 $ 596.26 98% target is $916,072 based Total Funding Available 11,274,578 10,992,863 on budgeted funding. This 98% 98% 111% represents 109% of HUD Baseline Units $ 603.30 1525 funding. % of Year to 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% 110% 107% $ 621.50 $ 600.43 98% 98% 111% 108% $ 620.49 $ 603.30 99% 99% 111% 108% $ 619.91 $ 605.39 99% 99% 112% 109% $ 632.39 $ 608.37 98% 99% 111% 109% $ 627.13 $ 610.24 98% 98% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'EZIii EE)PUBLIC a CCOIJNIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of November 30, 2016, and the related income statement for the 1 Month and 2 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC December 08, 2016 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of November 30, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 525,294.09 $ 698,868.49 $ 928,898.80 $ 0.00 $ 19,888.65 $ 0.00 $ 2,172,950.03 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 49,262.65 0.00 0.00 0.00 0.00 0.00 49,262.65 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 (571.40) 0.00 19.00 0.00 (552.40) Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 7,728.18 126.38 237.03 0.00 0.00 0.00 8,091.59 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 9,887.08 28,909.17 0.00 0.00 0.00 0.00 38,796.25 Total Current Assets 558,992.16 1,138,711.92 935,156.04 81,827.31 20,907.38 0.00 2,735,594.81 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,828,824.92 3,858,627.68 0.00 2,355,585.97 0.00 8,248,994.52 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 6,266.66 0.00 7,828.25 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,630,486.92 1,062,390.47 0.00 859,449.87 2,470,000.00 6,143,362.86 Total Assets L_6 80,027.76 $ 2,769,198.84 $ 1,997,546.51 L_81 827.31 $ 880,357.25 $ 2,470,000.00 $8,878,957.67 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of November 30, 2016 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 3,100.00 0.00 Fund 0.00 26,777.45 Net income (loss) 5,557.12 Current Liabilities 30,105.62 0.00 (7,609.47) 0.00 11,443.66 Accrued wage/payroll taxes payable $ 2,828.98 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2,828.98 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,150.00 0.00 3,750.00 0.00 24,900.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to (28,052.85) 0.00 2,327.70 0.00 64,521.40 0.00 38,796.25 Total Current Liabilities (3,910.01) 1,397.76 29,735.03 0.00 69,165.11 2,458,564.81 2,554,952.70 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 8,453.66 2,919.18 35,571.01 0.00 70,072.67 2,458,564.81 2,575,581.33 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 780.79 3,100.00 0.00 6,266.66 0.00 26,777.45 Net income (loss) 5,557.12 (16,609.61) 30,105.62 0.00 (7,609.47) 0.00 11,443.66 Total Net Position 671,574.10 2,766,279.66 1,961,975.50 81,827.31 810,284.58 11,435.19 6,303,376.34 Total Liabilities and Net Position L_680,027.76 $ 2,769,198.84 $1,997,546.51 $ 81,827.31 $ 880,357.25 $ 2,470,000.00 $ 8,878,957.67 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Denton Housing Authority Income Statement-Combining 2 Months Ended 11/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 120,341.00 $ 0.00 $ 20,734.00 $ 0.00 $ 141,075.00 Tenant revenue - other 0.00 0.00 703.75 0.00 6.00 0.00 709.75 HUD PHA operating grants 2,065,269.00 0.00 0.00 0.00 0.00 0.00 2,065,269.00 Management fees 0.00 9,752.47 0.00 0.00 0.00 0.00 9,752.47 Investment income - unrestricted 44.25 45.43 411.90 0.00 1.26 0.00 502.84 Fraud recovery 909.00 0.00 0.00 0.00 0.00 0.00 909.00 Other revenue 82,471.96 27,660.00 1,112.75 0.00 3,000.00 0.00 114,244.71 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 2,153,994.21 37,457.90 122,569.40 0.00 23,741.26 0.00 2,337,762.77 Operating Expenses Administrative salaries 83,214.32 16,401.22 13,291.42 0.00 7,845.85 0.00 120,752.81 Management fees 0.00 0.00 8,301.09 0.00 1,451.38 0.00 9,752.47 Advertising and marketing 119.55 34.05 116.56 0.00 1.79 0.00 271.95 Employee benefits - administrative 22,477.82 3,974.82 3,766.18 0.00 1,451.70 0.00 31,670.52 Office expenses 28,657.96 3,286.54 2,028.51 0.00 1,392.98 0.00 35,365.99 Legal expenses 0.00 1,597.90 0.00 0.00 0.00 0.00 1,597.90 Travel 5,573.97 1,437.51 351.09 0.00 157.29 0.00 7,519.86 Other admin. 3,322.54 9,662.24 371.32 0.00 192.65 0.00 13,548.75 Total Administrative 143,366.16 36,394.28 28,226.17 0.00 12,493.64 0.00 220,480.25 Tenant services - other 0.00 0.00 890.68 0.00 338.77 0.00 1,229.45 Total Tenant Services 0.00 0.00 890.68 0.00 338.77 0.00 1,229.45 Water 0.00 2,232.14 1,138.85 0.00 345.66 0.00 3,716.65 Electricity 0.00 1,414.74 1,012.53 0.00 1,050.24 0.00 3,477.51 Gas 0.00 0.00 504.33 0.00 182.98 0.00 687.31 Sewer 0.00 163.28 1,576.92 0.00 391.76 0.00 2,131.96 Total Utilities 0.00 3,810.16 4,232.63 0.00 1,970.64 0.00 10,013.43 Maintenance labor 0.00 5,007.73 18,087.95 0.00 2,145.99 0.00 25,241.67 Maintenance materials 126.51 244.84 8,922.69 0.00 1,356.90 0.00 10,650.94 Maintenance contracts 95.00 1,789.42 18,898.48 0.00 3,463.81 0.00 24,246.71 Employee benefits - maintenance 0.00 1,253.59 7,534.72 0.00 2,097.61 0.00 10,885.92 Total Maintenance 221.51 8,295.58 53,443.84 0.00 9,064.31 0.00 71,025.24 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 2 Months Ended 11/30/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 2,366.81 1,012.07 0.00 391.67 0.00 4,427.55 36.80 132.58 56.69 0.00 21.93 0.00 248.00 1,058.27 1,000.00 752.73 0.00 214.80 0.00 3,025.80 170.35 613.82 262.12 0.00 100.61 0.00 1,146.90 1,922.42 4,113.21 2,083.61 0.00 729.01 0.00 8,848.25 0.00 673.49 486.85 0.00 487.70 0.00 1,648.04 0.00 673.49 486.85 0.00 487.70 0.00 1,648.04 2,920.00 0.00 0.00 0.00 0.00 0.00 2,920.00 2,920.00 0.00 0.00 0.00 0.00 0.00 2,920.00 1,905,687.00 0.00 0.00 0.00 0.00 0.00 1,905,687.00 77,690.00 0.00 0.00 0.00 0.00 0.00 77,690.00 1,983,377.00 0.00 0.00 0.00 0.00 0.00 1,983,377.00 2,131,807.09 53,286.72 89,363.78 0.00 25,084.07 0.00 2,299,541.66 22,187.12 (15,828.82) 33,205.62 0.00 (1,342.81) 0.00 38,221.11 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 780.79 3,100.00 0.00 6,266.66 0.00 10,147.45 16,630.00 780.79 3,100.00 0.00 6,266.66 0.00 26,777.45 $ 5,557.12 $ (16,609.61) L___10 105.62 $ 0.00 $ (7,609.47) $ 0.00 $ 11,443.66 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of November 30, 2016 Assets Current Assets Cash -unrestricted $ 525,294.09 Accounts receivable - PHA projects 49,262.65 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 7,728.18 Inter program - due from 9,887.08 Total Current Assets 558,992.16 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 680,027.76 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 2,828.98 19,844.86 1,469.00 (28,052.85) (3,910.01) 12,363.67 12,363.67 8,453.66 99,105.60 526,335.99 23,945.39 16,630.00 5.557.12 671,574.10 $ 680,027.76 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 11/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 94,581.00 $ 959,961.00 $ 1,054,542.00 Investment income - unrestricted 21.31 0.00 21.31 Fraud recovery 354.50 354.50 709.00 Other revenue 42,745.47 0.00 42,745.47 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 143,002.28 960,315.50 1,103,317.78 Operating Expenses Administrative salaries 41,167.01 0.00 41,167.01 Advertising and marketing 119.55 0.00 119.55 Employee benefits - administrative 12,996.37 0.00 12,996.37 Office expenses 16,151.04 0.00 16,151.04 Travel 1,372.70 0.00 1,372.70 Other admin. 1,789.79 0.00 1,789.79 Total Administrative 73,596.46 0.00 73,596.46 Maintenance materials 126.51 0.00 126.51 Maintenance contracts 80.00 0.00 80.00 Total Maintenance 206.51 0.00 206.51 Workmen's compensation 794.86 0.00 794.86 Total Insurance 794.86 0.00 794.86 Housing assistance payments 0.00 968,761.00 968,761.00 HAP portability -in 40,754.00 0.00 40,754.00 Total Housing Assistance Payments 40,754.00 968,761.00 1,009,515.00 Other general expenses 1,488.31 0.00 1,488.31 Total General Expenses 1,488.31 0.00 1,488.31 Total Operating Expenses 116,840.14 968,761.00 1,085,601.14 Operating Income (Loss) 26,162.14 (8,445.50) 17,716.64 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 9,532.14 $ (8,445.50) $ 1,086.64 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Revenues HUD PHA operating grants Investment income - unrestricted Fraud recovery Other revenue Gain or loss on disposition of capital assets Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Advertising and marketing Employee benefits - administrative Office expenses Travel Other admin. Total Administrative Denton Housing Authority Income Statement -Section 8 Voucher 1 Month and 2 Months Ended 11/30/2016 Current Year to Month Date Budget Variance $ 1,054,542.00 $ 2,065,269.00 $ 11,320,235.00 $ 9,254,966.00 21.31 44.25 800.00 755.75 709.00 909.00 2,000.00 1,091.00 42,745.47 82,471.96 10,000.00 (72,471.96) 5,300.00 5,300.00 0.00 (5,300.00) 1,103,317.78 2,153,994.21 11,333,035.00 9,179,040.79 41,167.01 83,214.32 634,178.00 550,963.68 0.00 0.00 12,750.00 12,750.00 119.55 119.55 500.00 380.45 12,996.37 22,477.82 256,179.00 233,701.18 16,151.04 28,657.96 202,000.00 173,342.04 1,372.70 5,573.97 17,000.00 11,426.03 1,789.79 3,322.54 46,195.00 42,872.46 73,596.46 143,366.16 1,168,802.00 1,025,435.84 Maintenance materials 126.51 126.51 3,000.00 Maintenance contracts 80.00 95.00 5,000.00 Total Maintenance 206.51 221.51 8,000.00 Property insurance 0.00 657.00 5,000.00 Liability insurance 0.00 36.80 200.00 Workmen's compensation 794.86 1,058.27 2,200.00 All other insurance 0.00 170.35 1,500.00 Total Insurance 794.86 1,922.42 8,900.00 Housing assistance payments 968,761.00 1,905,687.00 10,104,344.00 HAP portability -in 40,754.00 77,690.00 0.00 Total Housing Assistance Payments 1,009,515.00 1,983,377.00 10,104,344.00 Other general expenses 1,488.31 2,920.00 10,000.00 Total General Expenses 1,488.31 2,920.00 10,000.00 Total Operating Expenses 1,085,601.14 2,131,807.09 11,300,046.00 Operating Income (Loss) 17,716.64 22,187.12 32,989.00 Other Financial Items Replacement of equipment 16,630.00 16,630.00 33,000.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 16,630.00 33,000.00 Net Income (Loss) $ 1,086.64 $ 5,557.12 $ (11.00) Urlaub & Co., PLLC See Accountant's Compilation Report 10 2,873.49 4.905.00 7,778.49 4,343.00 163.20 1,141.73 1,329.65 6,977.58 8,198,657.00 (77,690.00) 8,120,967.00 7,080.00 7,080.00 9,168,238.91 10,801.88 16,370.00 0.00 16,370.00 Denton Housing Authority Income Statement -Section 8 Voucher 2 Months Ended 11/30/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 191,308.00 $ 1,873,961.00 $ 2,065,269.00 Investment income - unrestricted 44.25 0.00 44.25 Fraud recovery 454.50 454.50 909.00 Other revenue 82,471.96 0.00 82,471.96 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 279,578.71 1,874,415.50 2,153,994.21 Operating Expenses Administrative salaries 83,214.32 0.00 83,214.32 Advertising and marketing 119.55 0.00 119.55 Employee benefits - administrative 22,477.82 0.00 22,477.82 Office expenses 28,657.96 0.00 28,657.96 Travel 5,573.97 0.00 5,573.97 Other admin. 3,322.54 0.00 3,322.54 Total Administrative 143,366.16 0.00 143,366.16 Maintenance materials 126.51 0.00 126.51 Maintenance contracts 95.00 0.00 95.00 Total Maintenance 221.51 0.00 221.51 Property insurance 657.00 0.00 657.00 Liability insurance 36.80 0.00 36.80 Workmen's compensation 1,058.27 0.00 1,058.27 All other insurance 170.35 0.00 170.35 Total Insurance 1,922.42 0.00 1,922.42 Housing assistance payments 0.00 1,905,687.00 1,905,687.00 HAP portability -in 77,690.00 0.00 77,690.00 Total Housing Assistance Payments 77,690.00 1,905,687.00 1,983,377.00 Other general expenses 2,920.00 0.00 2,920.00 Total General Expenses 2,920.00 0.00 2,920.00 Total Operating Expenses 226,120.09 1,905,687.00 2,131,807.09 Operating Income (Loss) 53,458.62 (31,271.50) 22,187.12 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 36,828.62 $ (31,271.50) $ 5,557.12 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of November 30, 2016 Assets Current Assets 509,949.32 Cash -unrestricted $ 698,868.49 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 126.38 Inventories (net) 986.65 Inter program - due from 28,909.17 Total Current Assets 1,138,711.92 Property and Equipment Land 509,949.32 Buildings 1,828,824.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,630,486.92 Total Assets $ 2,769,198.84 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 780.79 (16,609.61) 2,766,279.66 $ 2,769,198.84 Denton Housing Authority Income Statement - Management Fund 1 Month and 2 Months Ended 11/30/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 4,813.55 $ 9,752.47 $ 63,399.00 $ 53,646.53 Investment income - unrestricted 22.27 45.43 300.00 254.57 Other revenue 13,300.00 27,660.00 1,424,600.00 1,396,940.00 Total Operating Revenues 18,135.82 37,457.90 1,488,299.00 1,450,841.10 Operating Expenses Administrative salaries 8,182.61 16,401.22 217,231.00 200,829.78 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 34.05 34.05 0.00 (34.05) Employee benefits - administrative 2,479.85 3,974.82 55,812.00 51,837.18 Office expenses 1,571.39 3,286.54 30,500.00 27,213.46 Legal expenses 1,597.90 1,597.90 50,000.00 48,402.10 Travel 452.72 1,437.51 10,000.00 8,562.49 Other admin. 9,646.63 9,662.24 96,260.00 86,597.76 Total Administrative 23,965.15 36,394.28 461,163.00 424,768.72 Water 2,232.14 2,232.14 5,000.00 2,767.86 Electricity 1,414.74 1,414.74 17,000.00 15,585.26 Sewer 163.28 163.28 2,000.00 1,836.72 Total Utilities 3,810.16 3,810.16 24,000.00 20,189.84 Maintenance labor 2,500.08 5,007.73 38,164.00 33,156.27 Maintenance materials 116.62 244.84 8,000.00 7,755.16 Maintenance contracts 1,371.14 1,789.42 38,600.00 36,810.58 Employee benefits - maintenance 670.70 1,253.59 6,324.00 5,070.41 Total Maintenance 4,658.54 8,295.58 91,088.00 82,792.42 Property insurance 0.00 2,366.81 2,700.00 333.19 Liability insurance 0.00 132.58 100.00 (32.58) Workmen's compensation 51.08 1,000.00 1,000.00 0.00 All other insurance 0.00 613.82 900.00 286.18 Total Insurance 51.08 4,113.21 4,700.00 586.79 Protective services - other contract costs 673.49 673.49 5,500.00 4,826.51 Total Protective Services 673.49 673.49 5,500.00 4,826.51 Other general expenses 0.00 0.00 5,000.00 5,000.00 Payments in lieu of taxes 0.00 0.00 4,800.00 4,800.00 Total General Expenses 0.00 0.00 9,800.00 9,800.00 Total Operating Expenses 33,158.42 53,286.72 596,251.00 542,964.28 Operating Income (Loss) (15,022.60) (15,828.82) 892,048.00 907,876.82 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 780.79 40,000.00 39,219.21 Total Other Financial Items 0.00 780.79 80,000.00 79,219.21 Net Income (Loss) $ (15,022.60) $ (16,609.61) $ 812,048.00 $ 828,657.61 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of November 30, 2016 Assets Current Assets Cash -unrestricted $ 928,898.80 Accounts receivable - tenants (net) (571.40) Prepaid expenses and other assets 237.03 Inventories (net) 6,591.61 Total Current Assets 935,156.04 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 1,997,546.51 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,150.00 Inter program - due to 2,327.70 Total Current Liabilities 29,735.03 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 35,571.01 1,059,290.47 869,479.41 3,100.00 30.105.62 1,961,975.50 $ 1,997,546.51 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 2 Months Ended 11/30/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 2,550.00 2,550.00 Net tenant rental revenue $ 60,623.00 $ 120,341.00 $ 722,190.00 $ 601,849.00 Tenant revenue - other 399.50 703.75 1,500.00 796.25 Investment income - unrestricted 205.20 411.90 1,500.00 1,088.10 Other revenue 566.92 1,112.75 2,500.00 1,387.25 Total Operating Revenues 61,794.62 122,569.40 727,690.00 605,120.60 Operating Expenses Administrative salaries 6,645.71 13,291.42 137,250.00 123,958.58 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 4,083.17 8,301.09 53,599.00 45,297.91 Advertising and marketing 116.56 116.56 0.00 (116.56) Employee benefits - administrative 2,170.50 3,766.18 58,650.00 54,883.82 Office expenses 1,739.51 2,028.51 26,500.00 24,471.49 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 103.58 351.09 7,000.00 6,648.91 Other admin. 100.81 371.32 14,300.00 13,928.68 Total Administrative 14,959.84 28,226.17 300,849.00 272,622.83 Tenant services - other 377.22 890.68 6,000.00 5,109.32 Total Tenant Services 377.22 890.68 6,000.00 5,109.32 Water 1,138.85 1,138.85 15,000.00 13,861.15 Electricity 1,012.53 1,012.53 15,000.00 13,987.47 Gas 337.92 504.33 6,000.00 5,495.67 Sewer 1,576.92 1,576.92 21,000.00 19,423.08 Total Utilities 4,066.22 4,232.63 57,000.00 52,767.37 Maintenance labor 9,056.45 18,087.95 145,455.00 127,367.05 Maintenance materials 6,811.63 8,922.69 52,000.00 43,077.31 Maintenance contracts 18,398.48 18,898.48 115,500.00 96,601.52 Employee benefits - maintenance 4,063.70 7,534.72 67,931.00 60,396.28 Total Maintenance 38,330.26 53,443.84 380,886.00 327,442.16 Property insurance 0.00 1,012.07 7,350.00 6,337.93 Liability insurance 0.00 56.69 300.00 243.31 Workmen's compensation 346.96 752.73 3,500.00 2,747.27 All other insurance 0.00 262.12 2,300.00 2,037.88 Total Insurance 346.96 2,083.61 13,450.00 11,366.39 Protective services - other contract costs 486.85 486.85 2,600.00 2,113.15 Total Protective Services 486.85 486.85 2,600.00 2,113.15 Total Operating Expenses 58,567.35 89,363.78 760,785.00 671,421.22 Operating Income (Loss) 3,227.27 33,205.62 (33,095.00) (66,300.62) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 3,100.00 3,100.00 101,000.00 97,900.00 Total Other Financial Items 3,100.00 3,100.00 106,000.00 102,900.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 2 Months Ended 11/30/2016 Current Month Year to Date $ 127.27 $ 30,105.62 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (169,200.62) Denton Housing Authority Balance Sheet - Disaster Funds As of November 30, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 2 Months Ended 11/30/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of November 30, 2016 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 2 Months Ended 11/30/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of November 30, 2016 Assets Current Assets Cash -unrestricted $ 19,888.65 Accounts receivable - tenants (net) 19.00 Inventories (net) 999.73 Total Current Assets 20,907.38 Property and Equipment Land 159,009.13 Buildings 2,355,585.97 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 6,266.66 Net Property and Equipment 859,449.87 Total Assets $ 880,357.25 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 3,750.00 Inter program - due to 64,521.40 Total Current Liabilities 69,165.11 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 70,072.67 853,183.21 (41,555.82) 6,266.66 (7,609.47) 810,284.58 $ 880,357.25 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Management fees Advertising and marketing Employee benefits - administrative Office expenses Legal expenses Travel Other admin. Total Administrative Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement - Pecan Place 1 Month and 2 Months Ended 11/30/2016 Current Month Year to Date $ 10,434.00 0.00 0.62 4,061.93 0.00 730.38 1.79 836.88 1,225.18 0.00 48.79 306.40 306.40 345.66 1,050.24 182.98 1,070.47 661.46 2,113.81 1,126.06 4,971.80 0.00 0.00 57.60 57.60 379.70 14,896.49 (4,461.87) 0.00 6,266.66 6,266.66 $ (10,728.53) $ 20,734.00 6.00 1.26 3,000.00 23,741.26 7,845.85 0.00 1,451.38 1.79 1,451.70 1,392.98 0.00 157.29 338.77 338.77 345.66 1,050.24 182.98 2,145.99 1,356.90 3,463.81 2,097.61 9,064.31 391.67 21.93 214.80 100.61 487.70 487.70 25,084.07 (1,342.81) 0.00 6,266.66 6,266.66 $ (7,609.47) Urlaub & Co., PLLC See Accountant's Compilation Report 22 Budget $ 157,055.00 200.00 10.00 27,502.00 340.00 9,800.00 0.00 4,342.00 14,000.00 500.00 1,400.00 5,240.00 63,124.00 1,200.00 1,200.00 3,000.00 7,000.00 3,000.00 3,500.00 16,500.00 17,740.00 7,000.00 19,500.00 5,482.00 49,722.00 1,300.00 50.00 800.00 700.00 2,850.00 3,600.00 3,600.00 136,996.00 20,269.00 3,000.00 20,000.00 23,000.00 $ (2,731.00) Variance $ 136,321.00 194.00 8.74 (3,000.00) 133,523.74 19,656.15 340.00 8,348.62 (1.79) 2,890.30 12,607.02 500.00 1,242.71 5,047.35 50,630.36 861.23 2,654.34 5,949.76 2,817.02 3,108.24 14,529.36 15,594.01 5,643.10 16,036.19 3,384.39 40,657.69 908.33 28.07 585.20 599.39 2,120.99 3,112.30 3,112.30 111,911.93 21,611.81 3,000.00 13,733.34 16,733.34 $ 4,878.47 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) (7,326.11) (7,326.11) (7,326.11) (7,326.11) (7,326.11) (7,326.11) (7,326.11) (7,326.11) (7,326.11) 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 1,873,961.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 - - - - - - - - - - 454.50 Total Revenue 914.100.00 960.315.50 1.874.415.50 Expenses: HAP Payments 936,926.00 968,761.00 1,905,687.00 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 968,761.00 - - - - - - - - - - 1,905,687.00 Net Income (Loss) (22,826.00) (8,445.50) - - - - - - - - - - (31,271.50) Ending HAP Equity 1.119.39 (7.326.11) (7.326.11) (7.326.11) (7.326.11) 7( .326.11) 7( .326.11) (7.326.11) (7.326.11) (7.326.11) (7.326.11) (7.326.11) (7.326.11) 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 579,794.61 579,794.61 579,794.61 579,794.61 579,794.61 579,794.61 579,794.61 579,794.61 579,794.61 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 191,308.00 Interest Income 22.94 21.31 44.25 Other Income 39,726.49 48,045.47 87,771.96 Fraud Income (Admin) 100.00 354.50 - - - - - - - - - - 454.50 Total Revenue 136,576.43 143,002.28 279,578.71 Expens Admin Expenses 109,279.95 116,840.14 226,120.09 Concur with HUD 12/31/1E - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 - - - - - - - - - - 226,120.09 Net Income (Loss) 27,296.48 26,162.14 - - - - - - - - - - 53,458.62 Ending Admin Equity553��3247 579��9461 5797��461 579��9461 579��9461 5797��9461 5797��461 5797��7461 579��9461 5797��7461 579��9461 57��79461 526��34.74 Restricteol (7,326.11) Unrestricted 526,834.74 Investment in Net Capital Assets 99,105.60 Total Equity 618,614.23 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Denton Housing Authority Section 8 Utilization Report For the Year Ended December 31, 2016 % of Year to 107% 107% $ 595.19 $ 595.19 99% 99% Annual Budget Authority Actual 106% 10,104,344 10,104,344 98% 99% HUD -held Program Reserve 107% 1,031,715 750,000 99% 99% PHA -held NRA Balance 107% 138,519 13$,519 98% Monthly HAP payments Administrative Fee Reserve 107% $ 593.15 $ 596.26 98% target is $916,072 based Total Funding Available 11,274,578 10,992,863 on budgeted funding. This 98% 98% 111% represents 109% of HUD Baseline Units $ 603.30 1525 funding. % of Year to 107% 107% $ 595.19 $ 595.19 99% 99% 106% 106% $ 592.84 $ 594.02 98% 99% 108% 107% $ 599.80 $ 595.95 99% 99% 107% 107% $ 600.30 $ 597.03 98% 99% 106% 107% $ 593.15 $ 596.26 98% 99% 110% 107% $ 621.50 $ 600.43 98% 98% 111% 108% $ 620.49 $ 603.30 99% 99% 111% 108% $ 619.91 $ 605.39 99% 99% 112% 109% $ 632.39 $ 608.37 98% 99% 111% 109% $ 627.13 $ 610.24 98% 98% 115% 109% $ 651.49 $ 613.95 98% 98% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of December 31, 2016, and the related income statement for the 1 Month and 3 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC January 12, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of December 31, 2016 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 1,664,535.98 $ 652,168.10 $ 935,865.88 $ 0.00 $ 9,456.79 $ 0.00 $ 3,262,026.75 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 48,764.31 0.00 0.00 0.00 0.00 0.00 48,764.31 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 (906.90) 0.00 233.00 0.00 (673.90) Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 7,642.43 94.77 177.77 0.00 0.00 0.00 7,914.97 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 8,020.42 59,857.35 0.00 0.00 0.00 0.00 67,877.77 Total Current Assets 1,695,783.30 1,122,928.10 941,728.36 81,827.31 10,689.52 0.00 3,852,956.59 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,828,824.92 3,858,627.68 0.00 2,355,585.97 0.00 8,248,994.52 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,630,486.92 1,062,390.47 0.00 860,628.56 2,470,000.00 6,144,541.55 Total Assets $ 1,816,818.90 $ 2,753,415.02 $ 2,004,118.83 L_81 827.31 $871,318.08 $ 2,470,000.00 L_2,2 97,498.14 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of December 31, 2016 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 3,100.00 0.00 Fund 0.00 27,956.14 Net income (loss) 52,824.70 Current Liabilities 38,901.82 0.00 (18,814.91) 0.00 40,518.18 Accrued wage/payroll taxes payable $ 1,435.72 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 1,435.72 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 20,850.00 0.00 3,900.00 0.00 24,750.00 Unearned revenue 1,062,218.00 0.00 0.00 0.00 0.00 2,458,564.81 3,520,782.81 Inter program - due to 2,114.97 0.00 403.82 0.00 65,358.98 0.00 67,877.77 Total Current Liabilities 1,085,613.55 1,397.76 27,511.15 0.00 70,152.69 2,458,564.81 3,643,239.96 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 1,097,977.22 2,919.18 33,347.13 0.00 71,060.25 2,458,564.81 3,663,868.59 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 780.79 3,100.00 0.00 7,445.35 0.00 27,956.14 Net income (loss) 52,824.70 (32,393.43) 38,901.82 0.00 (18,814.91) 0.00 40,518.18 Total Net Position 718,841.68 2,750,495.84 1,970,771.70 81,827.31 800,257.83 11,435.19 6,333,629.55 Total Liabilities and Net Position $ 1,816,818.90 $ 2,753,415.02 $ 2,004,118.83 $ 81,827.31 $ 871,318.08 L2,470,000.00 L_____2,_997,498.14 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 3 Months Ended 12/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 180,111.00 $ 0.00 $ 31,882.00 $ 0.00 $ 211,993.00 Tenant revenue - other 0.00 0.00 1,002.75 0.00 25.00 0.00 1,027.75 HUD PHA operating grants 3,119,812.00 0.00 0.00 0.00 0.00 0.00 3,119,812.00 Management fees 0.00 14,539.60 0.00 0.00 0.00 0.00 14,539.60 Investment income - unrestricted 71.55 143.24 612.24 0.00 1.95 0.00 828.98 Fraud recovery 1,967.00 0.00 0.00 0.00 0.00 0.00 1,967.00 Other revenue 139,885.43 40,460.00 1,112.75 0.00 3,000.00 0.00 184,458.18 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 3,267,035.98 55,142.84 182,838.74 0.00 34,908.95 0.00 3,539,926.51 Operating Expenses Administrative salaries 123,391.45 24,394.03 19,822.43 0.00 11,852.40 0.00 179,460.31 Management fees 0.00 0.00 12,307.86 0.00 2,231.74 0.00 14,539.60 Advertising and marketing 314.30 96.67 297.84 0.00 5.09 0.00 713.90 Employee benefits - administrative 40,160.84 6,717.29 7,393.98 0.00 2,538.56 0.00 56,810.67 Office expenses 46,352.71 5,038.20 3,769.87 0.00 1,993.91 0.00 57,154.69 Legal expenses 0.00 1,935.50 0.00 0.00 0.00 0.00 1,935.50 Travel 5,711.15 1,766.97 351.09 0.00 157.29 0.00 7,986.50 Other admin. 6,550.09 18,696.08 789.83 0.00 1,039.86 0.00 27,075.86 Total Administrative 222,480.54 58,644.74 44,732.90 0.00 19,818.85 0.00 345,677.03 Tenant services - other 0.00 0.00 1,811.43 0.00 646.46 0.00 2,457.89 Total Tenant Services 0.00 0.00 1,811.43 0.00 646.46 0.00 2,457.89 Water 0.00 2,363.79 2,238.98 0.00 606.31 0.00 5,209.08 Electricity 0.00 2,832.50 1,981.31 0.00 1,977.40 0.00 6,791.21 Gas 0.00 0.00 1,005.66 0.00 738.71 0.00 1,744.37 Sewer 0.00 370.38 3,111.28 0.00 683.07 0.00 4,164.73 Total Utilities 0.00 5,566.67 8,337.23 0.00 4,005.49 0.00 17,909.39 Maintenance labor 0.00 7,520.85 27,292.53 0.00 3,225.15 0.00 38,038.53 Maintenance materials 209.61 3,396.02 14,921.47 0.00 2,676.90 0.00 21,204.00 Maintenance contracts 695.00 4,464.41 29,639.06 0.00 10,467.45 0.00 45,265.92 Employee benefits - maintenance 0.00 1,933.37 10,758.84 0.00 3,186.65 0.00 15,878.86 Total Maintenance 904.61 17,314.65 82,611.90 0.00 19,556.15 0.00 120,387.31 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 3 Months Ended 12/31/2016 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 2,366.81 1,012.07 0.00 391.67 0.00 4,427.55 36.80 132.58 56.69 0.00 21.93 0.00 248.00 1,398.27 1,322.00 1,525.73 0.00 314.80 0.00 4,560.80 170.35 613.82 262.12 0.00 100.61 0.00 1,146.90 2,262.42 4,435.21 2,856.61 0.00 829.01 0.00 10,383.25 0.00 794.21 486.85 0.00 1,422.55 0.00 2,703.61 0.00 794.21 486.85 0.00 1,422.55 0.00 2,703.61 4,400.71 0.00 0.00 0.00 0.00 0.00 4,400.71 4,400.71 0.00 0.00 0.00 0.00 0.00 4,400.71 2,835,929.00 0.00 0.00 0.00 0.00 0.00 2,835,929.00 131,604.00 0.00 0.00 0.00 0.00 0.00 131,604.00 2,967,533.00 0.00 0.00 0.00 0.00 0.00 2,967,533.00 3,197,581.28 86,755.48 140,836.92 0.00 46,278.51 0.00 3,471,452.19 69,454.70 (31,612.64) 42,001.82 0.00 (11,369.56) 0.00 68,474.32 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 780.79 3,100.00 0.00 7,445.35 0.00 11,326.14 16,630.00 780.79 3,100.00 0.00 7,445.35 0.00 27,956.14 $ 52,824.70 1 (32,393.43) $ 38,901.82 $ 0.00 $ (18,814.91) $ 0.00 $ 40,518.18 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of December 31, 2016 Assets Current Assets Cash -unrestricted $ 1,664,535.98 Accounts receivable - PHA projects 48,764.31 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 7,642.43 Inter program - due from 8,020.42 Total Current Assets 1,695,783.30 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 1,816,818.90 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 1,435.72 19,844.86 1,062,218.00 2,114.97 1,085,613.55 12,363.67 12,363.67 1,097,977.22 99,105.60 526,335.99 23,945.39 16,630.00 52,824.70 718,841.68 $ 1,816,818.90 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 12/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 94,582.00 $ 959,961.00 $ 1,054,543.00 Investment income - unrestricted 27.30 0.00 27.30 Fraud recovery 529.00 529.00 1,058.00 Other revenue 57,413.47 0.00 57,413.47 Total Operating Revenues 152,551.77 960,490.00 1,113,041.77 Operating Expenses Administrative salaries 40,177.13 0.00 40,177.13 Advertising and marketing 194.75 0.00 194.75 Employee benefits - administrative 17,683.02 0.00 17,683.02 Office expenses 17,694.75 0.00 17,694.75 Travel 137.18 0.00 137.18 Other admin. 3,227.55 0.00 3,227.55 Total Administrative 79,114.38 0.00 79,114.38 Maintenance materials 83.10 0.00 83.10 Maintenance contracts 600.00 0.00 600.00 Total Maintenance 683.10 0.00 683.10 Workmen's compensation 340.00 0.00 340.00 Total Insurance 340.00 0.00 340.00 Housing assistance payments 0.00 930,242.00 930,242.00 HAP portability -in 53,914.00 0.00 53,914.00 Total Housing Assistance Payments 53,914.00 930,242.00 984,156.00 Other general expenses 1,480.71 0.00 1,480.71 Total General Expenses 1,480.71 0.00 1,480.71 Total Operating Expenses 135,532.19 930,242.00 1,065,774.19 Operating Income (Loss) 17,019.58 30,248.00 47,267.58 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 17,019.58 $ 30,248.00 $ 47,267.58 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Revenues HUD PHA operating grants Investment income - unrestricted Fraud recovery Other revenue Gain or loss on disposition of capital assets Total Operating Revenues Operating Expenses Administrative salaries Auditing fees Advertising and marketing Employee benefits - administrative Office expenses Travel Other admin. Total Administrative Denton Housing Authority Income Statement -Section 8 Voucher 1 Month and 3 Months Ended 12/31/2016 Current Year to Month Date Budget Variance $ 1,054,543.00 $ 3,119,812.00 $ 11,320,235.00 $ 8,200,423.00 27.30 71.55 800.00 728.45 1,058.00 1,967.00 2,000.00 33.00 57,413.47 139,885.43 10,000.00 (129,885.43) 0.00 5,300.00 0.00 (5,300.00) 1,113,041.77 3,267,035.98 11,333,035.00 8,065,999.02 40,177.13 123,391.45 634,178.00 510,786.55 0.00 0.00 12,750.00 12,750.00 194.75 314.30 500.00 185.70 17,683.02 40,160.84 256,179.00 216,018.16 17,694.75 46,352.71 202,000.00 155,647.29 137.18 5,711.15 17,000.00 11,288.85 3,227.55 6,550.09 46,195.00 39,644.91 79,114.38 222,480.54 1,168,802.00 946,321.46 Maintenance materials 83.10 209.61 3,000.00 Maintenance contracts 600.00 695.00 5,000.00 Total Maintenance 683.10 904.61 8,000.00 Property insurance 0.00 657.00 5,000.00 Liability insurance 0.00 36.80 200.00 Workmen's compensation 340.00 1,398.27 2,200.00 All other insurance 0.00 170.35 1,500.00 Total Insurance 340.00 2,262.42 8,900.00 Housing assistance payments 930,242.00 2,835,929.00 10,104,344.00 HAP portability -in 53,914.00 131,604.00 0.00 Total Housing Assistance Payments 984,156.00 2,967,533.00 10,104,344.00 Other general expenses 1,480.71 4,400.71 10,000.00 Total General Expenses 1,480.71 4,400.71 10,000.00 Total Operating Expenses 1,065,774.19 3,197,581.28 11,300,046.00 Operating Income (Loss) 47,267.58 69,454.70 32,989.00 Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 Net Income (Loss) $ 47,267.58 $ 52,824.70 $ (11.00) Urlaub & Co., PLLC See Accountant's Compilation Report 10 2,790.39 4.305.00 7,095.39 4,343.00 163.20 801.73 1,329.65 6,637.58 7,268,415.00 (131,604.00) 7,136,811.00 5,599.29 5,599.29 8,102,464.72 16,370.00 0.00 16,370.00 Denton Housing Authority Income Statement -Section 8 Voucher 3 Months Ended 12/31/2016 Administration HAP Total Operating Revenues HUD PHA operating grants $ 285,890.00 $ 2,833,922.00 $ 3,119,812.00 Investment income - unrestricted 71.55 0.00 71.55 Fraud recovery 983.50 983.50 1,967.00 Other revenue 139,885.43 0.00 139,885.43 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 432,130.48 2,834,905.50 3,267,035.98 Operating Expenses Administrative salaries 123,391.45 0.00 123,391.45 Advertising and marketing 314.30 0.00 314.30 Employee benefits - administrative 40,160.84 0.00 40,160.84 Office expenses 46,352.71 0.00 46,352.71 Travel 5,711.15 0.00 5,711.15 Other admin. 6,550.09 0.00 6,550.09 Total Administrative 222,480.54 0.00 222,480.54 Maintenance materials 209.61 0.00 209.61 Maintenance contracts 695.00 0.00 695.00 Total Maintenance 904.61 0.00 904.61 Property insurance 657.00 0.00 657.00 Liability insurance 36.80 0.00 36.80 Workmen's compensation 1,398.27 0.00 1,398.27 All other insurance 170.35 0.00 170.35 Total Insurance 2,262.42 0.00 2,262.42 Housing assistance payments 0.00 2,835,929.00 2,835,929.00 HAP portability -in 131,604.00 0.00 131,604.00 Total Housing Assistance Payments 131,604.00 2,835,929.00 2,967,533.00 Other general expenses 4,400.71 0.00 4,400.71 Total General Expenses 4,400.71 0.00 4,400.71 Total Operating Expenses 361,652.28 2,835,929.00 3,197,581.28 Operating Income (Loss) 70,478.20 (1,023.50) 69,454.70 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 53,848.20 $ (1,023.50) $ 52,824.70 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of December 31, 2016 Assets Current Assets 509,949.32 Cash -unrestricted $ 652,168.10 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 94.77 Inventories (net) 986.65 Inter program - due from 59,857.35 Total Current Assets 1,122,928.10 Property and Equipment Land 509,949.32 Buildings 1,828,824.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,630,486.92 Total Assets $ 2,753,415.02 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 780.79 (32,393.43) 2,750,495.84 $ 2,753,415.02 Denton Housing Authority Income Statement - Management Fund 1 Month and 3 Months Ended 12/31/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 4,787.13 $ 14,539.60 $ 63,399.00 $ 48,859.40 Investment income - unrestricted 97.81 143.24 300.00 156.76 Other revenue 12,800.00 40,460.00 1,424,600.00 1,384,140.00 Total Operating Revenues 17,684.94 55,142.84 1,488,299.00 1,433,156.16 Operating Expenses Administrative salaries 7,992.81 24,394.03 217,231.00 192,836.97 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 62.62 96.67 0.00 (96.67) Employee benefits - administrative 2,742.47 6,717.29 55,812.00 49,094.71 Office expenses 1,751.66 5,038.20 30,500.00 25,461.80 Legal expenses 337.60 1,935.50 50,000.00 48,064.50 Travel 329.46 1,766.97 10,000.00 8,233.03 Other admin. 9,033.84 18,696.08 96,260.00 77,563.92 Total Administrative 22,250.46 58,644.74 461,163.00 402,518.26 Water 131.65 2,363.79 5,000.00 2,636.21 Electricity 1,417.76 2,832.50 17,000.00 14,167.50 Sewer 207.10 370.38 2,000.00 1,629.62 Total Utilities 1,756.51 5,566.67 24,000.00 18,433.33 Maintenance labor 2,513.12 7,520.85 38,164.00 30,643.15 Maintenance materials 3,151.18 3,396.02 8,000.00 4,603.98 Maintenance contracts 2,674.99 4,464.41 38,600.00 34,135.59 Employee benefits - maintenance 679.78 1,933.37 6,324.00 4,390.63 Total Maintenance 9,019.07 17,314.65 91,088.00 73,773.35 Property insurance 0.00 2,366.81 2,700.00 333.19 Liability insurance 0.00 132.58 100.00 (32.58) Workmen's compensation 322.00 1,322.00 1,000.00 (322.00) All other insurance 0.00 613.82 900.00 286.18 Total Insurance 322.00 4,435.21 4,700.00 264.79 Protective services - other contract costs 120.72 794.21 5,500.00 4,705.79 Total Protective Services 120.72 794.21 5,500.00 4,705.79 Other general expenses 0.00 0.00 5,000.00 5,000.00 Payments in lieu of taxes 0.00 0.00 4,800.00 4,800.00 Total General Expenses 0.00 0.00 9,800.00 9,800.00 Total Operating Expenses 33,468.76 86,755.48 596,251.00 509,495.52 Operating Income (Loss) (15,783.82) (31,612.64) 892,048.00 923,660.64 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 780.79 40,000.00 39,219.21 Total Other Financial Items 0.00 780.79 80,000.00 79,219.21 Net Income (Loss) $ (15,783.82) $ (32,393.43) $ 812,048.00 $ 844,441.43 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of December 31, 2016 Assets Current Assets Cash -unrestricted $ 935,865.88 Accounts receivable - tenants (net) (906.90) Prepaid expenses and other assets 177.77 Inventories (net) 6,591.61 Total Current Assets 941,728.36 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 2,004,118.83 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 20,850.00 Inter program - due to 403.82 Total Current Liabilities 27,511.15 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 33,347.13 1,059,290.47 869,479.41 3,100.00 38,901.82 1,970,771.70 $ 2,004,118.83 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 3 Months Ended 12/31/2016 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 2,550.00 2,550.00 Net tenant rental revenue $ 59,770.00 $ 180,111.00 $ 722,190.00 $ 542,079.00 Tenant revenue - other 299.00 1,002.75 1,500.00 497.25 Investment income - unrestricted 200.34 612.24 1,500.00 887.76 Other revenue 0.00 1,112.75 2,500.00 1,387.25 Total Operating Revenues 60,269.34 182,838.74 727,690.00 544,851.26 Operating Expenses Administrative salaries 6,531.01 19,822.43 137,250.00 117,427.57 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 4,006.77 12,307.86 53,599.00 41,291.14 Advertising and marketing 181.28 297.84 0.00 (297.84) Employee benefits - administrative 3,627.80 7,393.98 58,650.00 51,256.02 Office expenses 1,741.36 3,769.87 26,500.00 22,730.13 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 0.00 351.09 7,000.00 6,648.91 Other admin. 418.51 789.83 14,300.00 13,510.17 Total Administrative 16,506.73 44,732.90 300,849.00 256,116.10 Tenant services - other 920.75 1,811.43 6,000.00 4,188.57 Total Tenant Services 920.75 1,811.43 6,000.00 4,188.57 Water 1,100.13 2,238.98 15,000.00 12,761.02 Electricity 968.78 1,981.31 15,000.00 13,018.69 Gas 501.33 1,005.66 6,000.00 4,994.34 Sewer 1,534.36 3,111.28 21,000.00 17,888.72 Total Utilities 4,104.60 8,337.23 57,000.00 48,662.77 Maintenance labor 9,204.58 27,292.53 145,455.00 118,162.47 Maintenance materials 5,998.78 14,921.47 52,000.00 37,078.53 Maintenance contracts 10,740.58 29,639.06 115,500.00 85,860.94 Employee benefits - maintenance 3,224.12 10,758.84 67,931.00 57,172.16 Total Maintenance 29,168.06 82,611.90 380,886.00 298,274.10 Property insurance 0.00 1,012.07 7,350.00 6,337.93 Liability insurance 0.00 56.69 300.00 243.31 Workmen's compensation 773.00 1,525.73 3,500.00 1,974.27 All other insurance 0.00 262.12 2,300.00 2,037.88 Total Insurance 773.00 2,856.61 13,450.00 10,593.39 Protective services - other contract costs 0.00 486.85 2,600.00 2,113.15 Total Protective Services 0.00 486.85 2,600.00 2,113.15 Total Operating Expenses 51,473.14 140,836.92 760,785.00 619,948.08 Operating Income (Loss) 8,796.20 42,001.82 (33,095.00) (75,096.82) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 0.00 3,100.00 101,000.00 97,900.00 Total Other Financial Items 0.00 3,100.00 106,000.00 102,900.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 3 Months Ended 12/31/2016 Current Month Year to Date $ 8,796.20 $ 38,901.82 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (177,996.82) Denton Housing Authority Balance Sheet - Disaster Funds As of December 31, 2016 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 3 Months Ended 12/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of December 31, 2016 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 3 Months Ended 12/31/2016 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of December 31, 2016 Assets Current Assets Cash -unrestricted $ 9,456.79 Accounts receivable - tenants (net) 233.00 Inventories (net) 999.73 Total Current Assets 10,689.52 Property and Equipment Land 159,009.13 Buildings 2,355,585.97 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 860,628.56 Total Assets $ 871,318.08 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 3,900.00 Inter program - due to 65,358.98 Total Current Liabilities 70,152.69 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 71,060.25 853,183.21 (41,555.82) 7,445.35 (18,814.91) 800,257.83 $ 871,318.08 Denton Housing Authority Income Statement - Pecan Place 1 Month and 3 Months Ended 12/31/2016 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 11,148.00 $ 31,882.00 $ 157,055.00 $ 125,173.00 Tenant revenue - other 19.00 25.00 200.00 175.00 Investment income - unrestricted 0.69 1.95 10.00 8.05 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 11,167.69 34,908.95 157,265.00 122,356.05 Operating Expenses Administrative salaries 4,006.55 11,852.40 27,502.00 15,649.60 Auditing fees 0.00 0.00 340.00 340.00 Management fees 780.36 2,231.74 9,800.00 7,568.26 Advertising and marketing 3.30 5.09 0.00 (5.09) Employee benefits - administrative 1,086.86 2,538.56 4,342.00 1,803.44 Office expenses 600.93 1,993.91 14,000.00 12,006.09 Legal expenses 0.00 0.00 500.00 500.00 Travel 0.00 157.29 1,400.00 1,242.71 Other admin. 847.21 1,039.86 5,240.00 4,200.14 Total Administrative 7,325.21 19,818.85 63,124.00 43,305.15 Tenant services - other 307.69 646.46 1,200.00 553.54 Total Tenant Services 307.69 646.46 1,200.00 553.54 Water 260.65 606.31 3,000.00 2,393.69 Electricity 927.16 1,977.40 7,000.00 5,022.60 Gas 555.73 738.71 3,000.00 2,261.29 Sewer 291.31 683.07 3,500.00 2,816.93 Total Utilities 2,034.85 4,005.49 16,500.00 12,494.51 Maintenance labor 1,079.16 3,225.15 17,740.00 14,514.85 Maintenance materials 1,320.00 2,676.90 7,000.00 4,323.10 Maintenance contracts 7,003.64 10,467.45 19,500.00 9,032.55 Employee benefits - maintenance 1,089.04 3,186.65 5,482.00 2,295.35 Total Maintenance 10,491.84 19,556.15 49,722.00 30,165.85 Property insurance 0.00 391.67 1,300.00 908.33 Liability insurance 0.00 21.93 50.00 28.07 Workmen's compensation 100.00 314.80 800.00 485.20 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 100.00 829.01 2,850.00 2,020.99 Protective services - other contract costs 934.85 1,422.55 3,600.00 2,177.45 Total Protective Services 934.85 1,422.55 3,600.00 2,177.45 Total Operating Expenses 21,194.44 46,278.51 136,996.00 90,717.49 Operating Income (Loss) (10,026.75) (11,369.56) 20,269.00 31,638.56 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 1,178.69 7,445.35 20,000.00 12,554.65 Total Other Financial Items 1,178.69 7,445.35 23,000.00 15,554.65 Net Income (Loss) $ (11,205.44) $ (18,814.91) $ (2,731.00) $ 16,083.91 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) 22,921.89 22,921.89 22,921.89 22,921.89 22,921.89 22,921.89 22,921.89 22,921.89 22,921.89 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 2,833,922.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - - - - - - - - 983.50 Total Revenue 914.100.00 960.315.50 960.490.00 2.834.905.50 Expenses: HAP Payments 936,926.00 968,761.00 930,242.00 2,835,929.00 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 968,761.00 930242.00 - - - - - - - - - 2,835,929.00 Net Income (Loss) (22,826.00) (8,445.50) 30,248.00 - - - - - - - - - (1,023.50) Ending HAP Equity 1.119.39 7( .326.11) 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 22.921 89 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596,814.19 596,814.19 596,814.19 596,814.19 596,814.19 596,814.19 596,814.19 596,814.19 596,814.19 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 285,890.00 Interest Income 22.94 21.31 27.30 71.55 Other Income 39,726.49 48,045.47 57,413.47 145,185.43 Fraud Income (Admin) 100.00 354.50 529.00 - - - - - - - - - 983.50 Total Revenue 136,576.43 143,002.28 152,551.77 432,130.48 Expens Admin Expenses 109,279.95 116,840.14 135,532.19 361,652.28 Concur with HUD 12/31/1° - - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 - - - - - - - - - 361,652.28 Net Income (Loss) 27,296.48 26,162.14 17,019.58 - - - - - - - - - 70,478.20 Ending Admin Equity553��3247 579��9461 5%14.19 5%14.19 5%14.19 5%14.19 55%8��4.19 5%14.19 5%14.19 5%14.19 5%14.19 5�� 527�i91.04 Restricteol 22,921.89 Unrestricted 527,391.04 Investment in Net Capital Assets 99,105.60 Total Equity 649,418.53 % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan Denton Housing Authority 107% Section 8 Utilization Report $ 595.19 For the Year Ended December 31, 2016 99% 99% Annual Budget Authority Actual 10,104,344 10,104,344 ; HUD -held Program Reserve 1,031,715 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve 98% Total Funding Available 11,274,578 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan '1.,516 ,.,,.,,.,I �+3412A6_1 107% 107% $ 595.19 $ 595.19 99% 99% Feb 1,502 890,443.00 106% 106% $ 592.84 $ 594.02 98% 99% Mar 1.,51(1870498_;, 108% 107% $ 599.80 $ 595.95 99% 99% Apr 1.11 d�_1 107% 107% $ 600.30 $ 597.03 98% 99% May 1,498 888,536.75 106% 107% $ 593.15 $ 596.26 98% 99% Jun 1. 110% 107% $ 621.50 $ 600.43 98% 98% Jul 1.,5(1$ 9j698.17.a 111% 108% $ 620.49 $ 603.30 99% 99% Aug 1,614', 938x542.00 111% 108% $ 619.91 $ 605.39 99% 99% Sep '1 112% 112% 109% $ 632.39 $ 608.37 98% 99% Oct 1,494 - 936x926,00 1 111% 109% $ 627.13 $ 610.24 98% 98% Nov 1.,A87 761:00_i 115% 109% $ 651.49 $ 613.95 98% 98% Dec 1,,180 i 242A0 110% 109% $ 628.54 $ 615.15 97% 98% Form Updated 20150309 % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan Denton Housing Authority 107% Section 8 Utilization Report $ 595.19 For the Year Ended December 31, 2016 99% 99% Annual Budget Authority Actual 10,104,344 10,104,344 ; HUD -held Program Reserve 1,031,715 750,000 PHA -held NRA Balance 138,519 13$,519 Administrative Fee Reserve 98% Total Funding Available 11,274,578 10,992,863 Baseline Units 1525' % of Year to Monthly HAP payments target is $916,072 based on budgeted funding. This represents 109% of HUD funding. Jan '1.,516 ,.,,.,,.,I �+3412A6_1 107% 107% $ 595.19 $ 595.19 99% 99% Feb 1,502 890,443.00 106% 106% $ 592.84 $ 594.02 98% 99% Mar 1.,51(1870498_;, 108% 107% $ 599.80 $ 595.95 99% 99% Apr 1.11 d�_1 107% 107% $ 600.30 $ 597.03 98% 99% May 1,498 888,536.75 106% 107% $ 593.15 $ 596.26 98% 99% Jun 1. 110% 107% $ 621.50 $ 600.43 98% 98% Jul 1.,5(1$ 9j698.17.a 111% 108% $ 620.49 $ 603.30 99% 99% Aug 1,614', 938x542.00 111% 108% $ 619.91 $ 605.39 99% 99% Sep '1 112% 112% 109% $ 632.39 $ 608.37 98% 99% Oct 1,494 - 936x926,00 1 111% 109% $ 627.13 $ 610.24 98% 98% Nov 1.,A87 761:00_i 115% 109% $ 651.49 $ 613.95 98% 98% Dec 1,,180 i 242A0 110% 109% $ 628.54 $ 615.15 97% 98% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $916,072 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of January 31, 2017, and the related income statement for the 1 Month and 4 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC February 16, 2017 Property and Equipment Denton Housing Authority Land Balance Sheet - Combining 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 As of January 31, 2017 205,955.95 1,837,624.92 3,858,627.68 0.00 2,358,240.87 0.00 Assets Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 62,090.68 0.00 Fund 0.00 278,928.63 Accumulated depreciation (255,622.08) Current Assets (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress Cash -unrestricted $ 628,415.42 $ 683,994.02 $ 946,944.15 $ 0.00 $ 12,248.40 $ 0.00 $ 2,271,601.99 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 67,563.23 0.00 0.00 0.00 0.00 0.00 67,563.23 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 459.10 0.00 233.00 0.00 692.10 Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 4,810.96 63.16 118.51 0.00 0.00 0.00 4,992.63 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 17,507.32 70,722.74 0.00 0.00 0.00 0.00 88,230.06 Total Current Assets 685,117.09 1,165,587.80 954,113.37 81,827.31 13,481.13 0.00 2,900,126.70 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,858,627.68 0.00 2,358,240.87 0.00 8,260,449.42 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,062,390.47 0.00 863,283.46 2,470,000.00 6,155,996.45 Total Assets L_806,152.69 L_2,804,874.72 $ 2,016,503.84 $ 81,827.31 $ 876,764.59 L2,470,000.00 L_9,056,123.15 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Tenant security deposits Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - noncurrent Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Denton Housing Authority Balance Sheet - Combining As of January 31, 2017 Liabilities and Net Position Section 8 Management Heritage Oaks Fund Disaster Funds Pecan Place DPFC Total $ 1,175.58 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 1,175.58 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 0.00 0.00 21,150.00 0.00 3,900.00 0.00 25,050.00 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 12,140.78 0.00 2,171.67 0.00 73,917.61 0.00 88,230.06 34,630.22 1,397.76 29,579.00 0.00 78,711.32 2,458,564.81 2,602,883.11 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 46,993.89 2,919.18 35,414.98 0.00 79,618.88 2,458,564.81 2,623,511.74 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 16,630.00 9,580.79 3,100.00 0.00 10,100.25 0.00 39,411.04 93,141.82 10,266.27 49,218.98 0.00 (24,581.93) 0.00 128,045.14 759,158.80 2,801,955.54 1,981,088.86 81,827.31 797,145.71 11,435.19 6,432,611.41 !L_806 ,152.69 $ 2,804,874.72 $ 2,016,503.84 !L___81 827.31 $ 876,764.59$ 2,470,000.00 !L 6,123.15 Urlaub & Co., PLLC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 4 Months Ended 1/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 240,838.00 $ 0.00 $ 43,876.00 $ 0.00 $ 284,714.00 Tenant revenue - other 0.00 0.00 1,079.75 0.00 36.00 0.00 1,115.75 HUD PHA operating grants 4,180,561.00 0.00 0.00 0.00 0.00 0.00 4,180,561.00 Management fees 0.00 19,692.79 0.00 0.00 0.00 0.00 19,692.79 Investment income - unrestricted 99.66 163.86 894.94 0.00 2.60 0.00 1,161.06 Fraud recovery 1,967.00 0.00 0.00 0.00 0.00 0.00 1,967.00 Other revenue 210,612.82 128,260.00 1,112.75 0.00 3,000.00 0.00 342,985.57 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 4,398,540.48 148,116.65 243,925.44 0.00 46,914.60 0.00 4,837,497.17 Operating Expenses Administrative salaries 163,332.48 32,332.83 26,353.45 0.00 15,775.55 0.00 237,794.31 Management fees 0.00 0.00 16,621.47 0.00 3,071.32 0.00 19,692.79 Advertising and marketing 344.25 96.67 297.84 0.00 5.09 0.00 743.85 Employee benefits - administrative 55,198.06 8,900.84 10,569.37 0.00 3,454.51 0.00 78,122.78 Office expenses 61,171.50 7,599.58 4,800.61 0.00 2,729.10 0.00 76,300.79 Legal expenses 0.00 2,195.50 0.00 0.00 0.00 0.00 2,195.50 Travel 6,142.80 5,232.84 416.23 0.00 170.32 0.00 11,962.19 Other admin. 9,815.84 28,307.62 1,351.98 0.00 1,073.46 0.00 40,548.90 Total Administrative 296,004.93 84,665.88 60,410.95 0.00 26,279.35 0.00 467,361.11 Tenant services - other 0.00 0.00 1,892.23 0.00 747.24 0.00 2,639.47 Total Tenant Services 0.00 0.00 1,892.23 0.00 747.24 0.00 2,639.47 Water 0.00 2,484.15 3,475.28 0.00 850.94 0.00 6,810.37 Electricity 0.00 4,600.05 2,983.28 0.00 2,743.69 0.00 10,327.02 Gas 0.00 0.00 1,873.83 0.00 1,337.83 0.00 3,211.66 Sewer 0.00 478.45 4,795.34 0.00 956.76 0.00 6,230.55 Total Utilities 0.00 7,562.65 13,127.73 0.00 5,889.22 0.00 26,579.60 Maintenance labor 0.00 10,003.27 36,203.68 0.00 4,283.84 0.00 50,490.79 Maintenance materials 290.55 3,830.24 20,327.20 0.00 4,073.38 0.00 28,521.37 Maintenance contracts 1,175.00 8,710.76 37,483.69 0.00 12,308.08 0.00 59,677.53 Employee benefits - maintenance 0.00 2,526.78 13,414.64 0.00 4,114.85 0.00 20,056.27 Total Maintenance 1,465.55 25,071.05 107,429.21 0.00 24,780.15 0.00 158,745.96 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Net Income (Loss) $ 93,141.82 $10,266.27 $49,218.98 $ 0.00 $ (24,581.93) $ 0.00 $128,045.14 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Denton Housing Authority Income Statement -Combining 4 Months Ended 1/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Property insurance 657.00 3,360.17 4,181.09 0.00 1,015.80 0.00 9,214.06 Liability insurance 467.43 459.74 142.91 0.00 39.17 0.00 1,109.25 Workmen's compensation 2,068.15 1,957.47 3,048.34 0.00 512.34 0.00 7,586.30 All other insurance 357.71 753.12 465.45 0.00 100.61 0.00 1,676.89 Total Insurance 3,550.29 6,530.50 7,837.79 0.00 1,667.92 0.00 19,586.50 Protective services - other contract costs 0.00 1,988.08 908.55 0.00 2,032.40 0.00 4,929.03 Total Protective Services 0.00 1,988.08 908.55 0.00 2,032.40 0.00 4,929.03 Other general expenses 5,571.89 339.00 0.00 0.00 0.00 0.00 5,910.89 Payments in lieu of taxes 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 Total General Expenses 5,571.89 2,451.43 0.00 0.00 0.00 0.00 8,023.32 Housing assistance payments 3,778,513.00 0.00 0.00 0.00 0.00 0.00 3,778,513.00 HAP portability -in 203,663.00 0.00 0.00 0.00 0.00 0.00 203,663.00 Total Housing Assistance Payments 3,982,176.00 0.00 0.00 0.00 0.00 0.00 3,982,176.00 Total Operating Expenses 4,288,768.66 128,269.59 191,606.46 0.00 61,396.28 0.00 4,670,040.99 Operating Income (Loss) 109,771.82 19,847.06 52,318.98 0.00 (14,481.68) 0.00 167,456.18 Other Financial Items Replacement of equipment 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 Property betterments & additions 0.00 9,580.79 3,100.00 0.00 10,100.25 0.00 22,781.04 Total Other Financial Items 16,630.00 9,580.79 3,100.00 0.00 10,100.25 0.00 39,411.04 Net Income (Loss) $ 93,141.82 $10,266.27 $49,218.98 $ 0.00 $ (24,581.93) $ 0.00 $128,045.14 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of January 31, 2017 Assets Current Assets Cash -unrestricted $ 628,415.42 Accounts receivable - PHA projects 67,563.23 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 4,810.96 Inter program - due from 17,507.32 Total Current Assets 685,117.09 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 806,152.69 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 1,175.58 19,844.86 1,469.00 12,140.78 34,630.22 12,363.67 12,363.67 46,993.89 99,105.60 526,335.99 23,945.39 16,630.00 93.141.82 759,158.80 $ 806,152.69 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 1/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 91,617.00 $ 969,132.00 $ 1,060,749.00 Investment income - unrestricted 28.11 0.00 28.11 Other revenue 70,727.39 0.00 70,727.39 Total Operating Revenues 162,372.50 969,132.00 1,131,504.50 Operating Expenses Administrative salaries 39,941.03 0.00 39,941.03 Advertising and marketing 29.95 0.00 29.95 Employee benefits - administrative 15,037.22 0.00 15,037.22 Office expenses 14,818.79 0.00 14,818.79 Travel 431.65 0.00 431.65 Other admin. 3,265.75 0.00 3,265.75 Total Administrative 73,524.39 0.00 73,524.39 Maintenance materials 80.94 0.00 80.94 Maintenance contracts 480.00 0.00 480.00 Total Maintenance 560.94 0.00 560.94 Liability insurance 430.63 0.00 430.63 Workmen's compensation 669.88 0.00 669.88 All other insurance 187.36 0.00 187.36 Total Insurance 1,287.87 0.00 1,287.87 Housing assistance payments 0.00 942,584.00 942,584.00 HAP portability -in 72,059.00 0.00 72,059.00 Total Housing Assistance Payments 72,059.00 942,584.00 1,014,643.00 Other general expenses 1,171.18 0.00 1,171.18 Total General Expenses 1,171.18 0.00 1,171.18 Total Operating Expenses 148,603.38 942,584.00 1,091,187.38 Operating Income (Loss) 13,769.12 26,548.00 40,317.12 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 13,769.12 $ 26,548.00 $ 40,317.12 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 163,332.48 634,178.00 470,845.52 1 Month and 4 Months Ended 1/31/2017 0.00 0.00 12,750.00 Current Year to Advertising and marketing 29.95 344.25 Month Date Budget Variance Operating Revenues 55,198.06 256,179.00 200,980.94 HUD PHA operating grants $ 1,060,749.00 $ 4,180,561.00 $ 11,320,235.00 $ 7,139,674.00 Investment income - unrestricted 28.11 99.66 800.00 700.34 Fraud recovery 0.00 1,967.00 2,000.00 33.00 Other revenue 70,727.39 210,612.82 10,000.00 (200,612.82) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,131,504.50 4,398,540.48 11,333,035.00 6,934,494.52 Operating Expenses Administrative salaries 39,941.03 163,332.48 634,178.00 470,845.52 Auditing fees 0.00 0.00 12,750.00 12,750.00 Advertising and marketing 29.95 344.25 500.00 155.75 Employee benefits - administrative 15,037.22 55,198.06 256,179.00 200,980.94 Office expenses 14,818.79 61,171.50 202,000.00 140,828.50 Travel 431.65 6,142.80 17,000.00 10,857.20 Other admin. 3,265.75 9,815.84 46,195.00 36,379.16 Total Administrative 73,524.39 296,004.93 1,168,802.00 872,797.07 Maintenance materials 80.94 290.55 3,000.00 2,709.45 Maintenance contracts 480.00 1,175.00 5,000.00 3,825.00 Total Maintenance 560.94 1,465.55 8,000.00 6,534.45 Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 430.63 467.43 200.00 (267.43) Workmen's compensation 669.88 2,068.15 2,200.00 131.85 All other insurance 187.36 357.71 1,500.00 1,142.29 Total Insurance 1,287.87 3,550.29 8,900.00 5,349.71 Housing assistance payments 942,584.00 3,778,513.00 10,104,344.00 6,325,831.00 HAP portability -in 72,059.00 203,663.00 0.00 (203,663.00) Total Housing Assistance Payments 1,014,643.00 3,982,176.00 10,104,344.00 6,122,168.00 Other general expenses 1,171.18 5,571.89 10,000.00 4,428.11 Total General Expenses 1,171.18 5,571.89 10,000.00 4,428.11 Total Operating Expenses 1,091,187.38 4,288,768.66 11,300,046.00 7,011,277.34 Operating Income (Loss) 40,317.12 109,771.82 32,989.00 (76,782.82 Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16.630.00 33.000.00 16.370.00 Net Income (Loss) $ 40,317.12 $ 93,141.82 $ (11.00) $ (93,152.82 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 4 Months Ended 1/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 377,507.00 $ 3,803,054.00 $ 4,180,561.00 Investment income - unrestricted 99.66 0.00 99.66 Fraud recovery 983.50 983.50 1,967.00 Other revenue 210,612.82 0.00 210,612.82 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 594,502.98 3,804,037.50 4,398,540.48 Operating Expenses Administrative salaries 163,332.48 0.00 163,332.48 Advertising and marketing 344.25 0.00 344.25 Employee benefits - administrative 55,198.06 0.00 55,198.06 Office expenses 61,171.50 0.00 61,171.50 Travel 6,142.80 0.00 6,142.80 Other admin. 9,815.84 0.00 9,815.84 Total Administrative 296,004.93 0.00 296,004.93 Maintenance materials 290.55 0.00 290.55 Maintenance contracts 1,175.00 0.00 1,175.00 Total Maintenance 1,465.55 0.00 1,465.55 Property insurance 657.00 0.00 657.00 Liability insurance 467.43 0.00 467.43 Workmen's compensation 2,068.15 0.00 2,068.15 All other insurance 357.71 0.00 357.71 Total Insurance 3,550.29 0.00 3,550.29 Housing assistance payments 0.00 3,778,513.00 3,778,513.00 HAP portability -in 203,663.00 0.00 203,663.00 Total Housing Assistance Payments 203,663.00 3,778,513.00 3,982,176.00 Other general expenses 5,571.89 0.00 5,571.89 Total General Expenses 5,571.89 0.00 5,571.89 Total Operating Expenses 510,255.66 3,778,513.00 4,288,768.66 Operating Income (Loss) 84,247.32 25,524.50 109,771.82 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 67,617.32 $ 25,524.50 $ 93,141.82 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of January 31, 2017 Assets Current Assets 509,949.32 Cash -unrestricted $ 683,994.02 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 63.16 Inventories (net) 986.65 Inter program - due from 70,722.74 Total Current Assets 1,165,587.80 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,804,874.72 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 10,266.27 2,801,955.54 $ 2,804,874.72 Denton Housing Authority Income Statement - Management Fund 1 Month and 4 Months Ended 1/31/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 5,153.19 $ 19,692.79 $ 63,399.00 $ 43,706.21 Investment income - unrestricted 20.62 163.86 300.00 136.14 Other revenue 87,800.00 128,260.00 1,424,600.00 1,296,340.00 Total Operating Revenues 92,973.81 148,116.65 1,488,299.00 1,340,182.35 Operating Expenses Administrative salaries 7,938.80 32,332.83 217,231.00 184,898.17 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 2,183.55 8,900.84 55,812.00 46,911.16 Office expenses 2,561.38 7,599.58 30,500.00 22,900.42 Legal expenses 260.00 2,195.50 50,000.00 47,804.50 Travel 3,465.87 5,232.84 10,000.00 4,767.16 Other admin. 9,611.54 28,307.62 96,260.00 67,952.38 Total Administrative 26,021.14 84,665.88 461,163.00 376,497.12 Water 120.36 2,484.15 5,000.00 2,515.85 Electricity 1,767.55 4,600.05 17,000.00 12,399.95 Sewer 108.07 478.45 2,000.00 1,521.55 Total Utilities 1,995.98 7,562.65 24,000.00 16,437.35 Maintenance labor 2,482.42 10,003.27 38,164.00 28,160.73 Maintenance materials 434.22 3,830.24 8,000.00 4,169.76 Maintenance contracts 4,246.35 8,710.76 38,600.00 29,889.24 Employee benefits - maintenance 593.41 2,526.78 6,324.00 3,797.22 Total Maintenance 7,756.40 25,071.05 91,088.00 66,016.95 Property insurance 993.36 3,360.17 2,700.00 (660.17) Liability insurance 327.16 459.74 100.00 (359.74) Workmen's compensation 635.47 1,957.47 1,000.00 (957.47) All other insurance 139.30 753.12 900.00 146.88 Total Insurance 2,095.29 6,530.50 4,700.00 (1,830.50) Protective services - other contract costs 1,193.87 1,988.08 5,500.00 3,511.92 Total Protective Services 1,193.87 1,988.08 5,500.00 3,511.92 Other general expenses 339.00 339.00 5,000.00 4,661.00 Payments in lieu of taxes 2,112.43 2,112.43 4,800.00 2,687.57 Total General Expenses 2,451.43 2,451.43 9,800.00 7,348.57 Total Operating Expenses 41,514.11 128,269.59 596,251.00 467,981.41 Operating Income (Loss) 51,459.70 19,847.06 892,048.00 872,200.94 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 8,800.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 8,800.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ 42,659.70 $ 10,266.27 $ 812,048.00 $ 801,781.73 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of January 31, 2017 Assets Current Assets Cash -unrestricted $ 946,944.15 Accounts receivable - tenants (net) 459.10 Prepaid expenses and other assets 118.51 Inventories (net) 6,591.61 Total Current Assets 954,113.37 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 2,016,503.84 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,150.00 Inter program - due to 2,171.67 Total Current Liabilities 29,579.00 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 35,414.98 1,059,290.47 869,479.41 3,100.00 49.218.98 1,981,088.86 $ 2,016,503.84 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 4 Months Ended 1/31/2017 Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items 50,769.54 191,606.46 10,317.16 52,318.98 0.00 0.00 0.00 3,100.00 0.00 3,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 760,785.00 (33,095.00) 5,000.00 101,000.00 106,000.00 569,178.54 (85,413.98) 5,000.00 97,900.00 102,900.00 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 60,727.00 $ 240,838.00 $ 722,190.00 $ 481,352.00 Tenant revenue - other 77.00 1,079.75 1,500.00 420.25 Investment income - unrestricted 282.70 894.94 1,500.00 605.06 Other revenue 0.00 1,112.75 2,500.00 1,387.25 Total Operating Revenues 61,086.70 243,925.44 727,690.00 483,764.56 Operating Expenses Administrative salaries 6,531.02 26,353.45 137,250.00 110,896.55 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 4,313.61 16,621.47 53,599.00 36,977.53 Advertising and marketing 0.00 297.84 0.00 (297.84) Employee benefits - administrative 3,175.39 10,569.37 58,650.00 48,080.63 Office expenses 1,030.74 4,800.61 26,500.00 21,699.39 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 65.14 416.23 7,000.00 6,583.77 Other admin. 562.15 1,351.98 14,300.00 12,948.02 Total Administrative 15,678.05 60,410.95 300,849.00 240,438.05 Tenant services - other 80.80 1,892.23 6,000.00 4,107.77 Total Tenant Services 80.80 1,892.23 6,000.00 4,107.77 Water 1,236.30 3,475.28 15,000.00 11,524.72 Electricity 1,001.97 2,983.28 15,000.00 12,016.72 Gas 868.17 1,873.83 6,000.00 4,126.17 Sewer 1,684.06 4,795.34 21,000.00 16,204.66 Total Utilities 4,790.50 13,127.73 57,000.00 43,872.27 Maintenance labor 8,911.15 36,203.68 145,455.00 109,251.32 Maintenance materials 5,405.73 20,327.20 52,000.00 31,672.80 Maintenance contracts 7,844.63 37,483.69 115,500.00 78,016.31 Employee benefits - maintenance 2,655.80 13,414.64 67,931.00 54,516.36 Total Maintenance 24,817.31 107,429.21 380,886.00 273,456.79 Property insurance 3,169.02 4,181.09 7,350.00 3,168.91 Liability insurance 86.22 142.91 300.00 157.09 Workmen's compensation 1,522.61 3,048.34 3,500.00 451.66 All other insurance 203.33 465.45 2,300.00 1,834.55 Total Insurance 4,981.18 7,837.79 13,450.00 5,612.21 Protective services - other contract costs 421.70 908.55 2,600.00 1,691.45 Total Protective Services 421.70 908.55 2,600.00 1,691.45 Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items 50,769.54 191,606.46 10,317.16 52,318.98 0.00 0.00 0.00 3,100.00 0.00 3,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 760,785.00 (33,095.00) 5,000.00 101,000.00 106,000.00 569,178.54 (85,413.98) 5,000.00 97,900.00 102,900.00 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 4 Months Ended 1/31/2017 Current Month Year to Date $ 10,317.16 $ 49,218.98 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (188,313.98) Denton Housing Authority Balance Sheet - Disaster Funds As of January 31, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 4 Months Ended 1/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of January 31, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 4 Months Ended 1/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of January 31, 2017 Assets Current Assets Cash -unrestricted $ 12,248.40 Accounts receivable - tenants (net) 233.00 Inventories (net) 999.73 Total Current Assets 13,481.13 Property and Equipment Land 159,009.13 Buildings 2,358,240.87 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 863,283.46 Total Assets $ 876,764.59 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 3,900.00 Inter program - due to 73,917.61 Total Current Liabilities 78,711.32 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 79,618.88 853,183.21 (41,555.82) 10,100.25 (24,581.93) 797,145.71 $ 876,764.59 Denton Housing Authority Income Statement - Pecan Place 1 Month and 4 Months Ended 1/31/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 11,994.00 $ 43,876.00 $ 157,055.00 $ 113,179.00 Tenant revenue - other 11.00 36.00 200.00 164.00 Investment income - unrestricted 0.65 2.60 10.00 7.40 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 12,005.65 46,914.60 157,265.00 110,350.40 Operating Expenses Administrative salaries 3,923.15 15,775.55 27,502.00 11,726.45 Auditing fees 0.00 0.00 340.00 340.00 Management fees 839.58 3,071.32 9,800.00 6,728.68 Advertising and marketing 0.00 5.09 0.00 (5.09) Employee benefits - administrative 915.95 3,454.51 4,342.00 887.49 Office expenses 735.19 2,729.10 14,000.00 11,270.90 Legal expenses 0.00 0.00 500.00 500.00 Travel 13.03 170.32 1,400.00 1,229.68 Other admin. 33.60 1,073.46 5,240.00 4,166.54 Total Administrative 6,460.50 26,279.35 63,124.00 36,844.65 Tenant services - other 100.78 747.24 1,200.00 452.76 Total Tenant Services 100.78 747.24 1,200.00 452.76 Water 244.63 850.94 3,000.00 2,149.06 Electricity 766.29 2,743.69 7,000.00 4,256.31 Gas 599.12 1,337.83 3,000.00 1,662.17 Sewer 273.69 956.76 3,500.00 2,543.24 Total Utilities 1,883.73 5,889.22 16,500.00 10,610.78 Maintenance labor 1,058.69 4,283.84 17,740.00 13,456.16 Maintenance materials 1,396.48 4,073.38 7,000.00 2,926.62 Maintenance contracts 1,840.63 12,308.08 19,500.00 7,191.92 Employee benefits - maintenance 928.20 4,114.85 5,482.00 1,367.15 Total Maintenance 5,224.00 24,780.15 49,722.00 24,941.85 Property insurance 624.13 1,015.80 1,300.00 284.20 Liability insurance 17.24 39.17 50.00 10.83 Workmen's compensation 197.54 512.34 800.00 287.66 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 838.91 1,667.92 2,850.00 1,182.08 Protective services - other contract costs 609.85 2,032.40 3,600.00 1,567.60 Total Protective Services 609.85 2,032.40 3,600.00 1,567.60 Total Operating Expenses 15,117.77 61,396.28 136,996.00 75,599.72 Operating Income (Loss) (3,112.12) (14,481.68) 20,269.00 34,750.68 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 2,654.90 10,100.25 20,000.00 9,899.75 Total Other Financial Items 2,654.90 10,100.25 23,000.00 12,899.75 Net Income (Loss) $ (5,767.02) $ (24,581.93) $ (2,731.00) $ 21,850.93 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority FYE 9/30/16 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) 22,921.89 49,469.89 49,469.89 49,469.89 49,469.89 49,469.89 49,469.89 49,469.89 49,469.89 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 3,803,054.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - FESForfeituree - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - - - - - - - - 983.50 Total Revenue 914,100.00 960,315.50 960,490.00 969,132.00 3,804,037.50 Expe HAP Payments 936,926.00 968,761.00 930,242.00 942,584.00 3,778,513.00 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Portia Total Expenses 936,926.00 968,761.00 930242.00 942,584.00 - - - - - - - - 3,778,513.00 Net Income (Loss) (22,826.00) (8,445.50) 30,248.00 26,548.00 - - - - - - - - 25,524.50 Ending HAP Equity 779.39 !7.326.11) 22aL 8989 49��98989 49��98989 ai 8989 49��98989 ai 8989 499 8989 a9 8989 4=9x98989 474698989 474698989 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596814.19 610,583.31 610,583.31 610,583.31 610,583.31 610,583.31 610,583.31 610,583.31 610,583.31 526,335.99 Revenues: - Annual Contribu'ons 96,727.00 94,581.00 94,582.00 91,617.00 377,507.00 Interest Income 22.94 21.31 27.30 28.11 99.66 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 215,912.82 Fraud Income (Admin) 100.00 354.50 529.00 - - - - - - - - - 983.50 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 594,502.98 Expense' Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 510,255.66 Concur with HUD 12/31/1E - - - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 - - - - - - - - 510255.66 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 - - - - - - - - 84,247.32 Ending Admin Equity 553.63247 579.79461 596.814.19 610.583.31 610.583.31 610.583.31 610.583.31 610.583.31 610.583.31 610.583.31 610.583.31 610.583.31 527.419.15 Restricted 49,469.89 Unrestricted 527,419.15 Investment in Net Capital Assets 99,105.60 Total Equity 67994.64 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of February 28, 2017, and the related income statement for the 1 Month and 5 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC March 16, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of February 28, 2017 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 653,434.54 $ 671,665.50 $ 955,557.02 $ 0.00 $ 11,272.54 $ 0.00 $ 2,291,929.60 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 124,454.73 0.00 0.00 0.00 0.00 0.00 124,454.73 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 871.10 0.00 (301.00) 0.00 570.10 Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 3,352.35 31.55 59.25 0.00 0.00 0.00 3,443.15 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 14,955.68 68,666.39 0.00 0.00 0.00 0.00 83,622.07 Total Current Assets 763,017.46 1,151,171.32 963,078.98 81,827.31 11,971.27 0.00 2,971,066.34 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,858,627.68 0.00 2,358,240.87 0.00 8,260,449.42 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,062,390.47 0.00 863,283.46 2,470,000.00 6,155,996.45 Total Assets L_884 053.06 $ 2,790,458.24 $ 2,025,469.45 L_81 827.31 $875,254.73 $ 2,470,000.00 $ 9,127,062.79 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of February 28, 2017 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 3,100.00 0.00 Fund 0.00 39,411.04 Net income (loss) 173,428.10 Current Liabilities 60,626.41 0.00 (27,151.82) 0.00 202,752.48 Accrued wage/payroll taxes payable $ 1,715.87 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 1,715.87 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,450.00 0.00 3,900.00 0.00 25,350.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to 9,214.58 0.00 (570.15) 0.00 74,977.64 0.00 83,622.07 Total Current Liabilities 32,244.31 1,397.76 27,137.18 0.00 79,771.35 2,458,564.81 2,599,115.41 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 44,607.98 2,919.18 32,973.16 0.00 80,678.91 2,458,564.81 2,619,744.04 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 9,580.79 3,100.00 0.00 10,100.25 0.00 39,411.04 Net income (loss) 173,428.10 (4,150.21) 60,626.41 0.00 (27,151.82) 0.00 202,752.48 Total Net Position 839,445.08 2,787,539.06 1,992,496.29 81,827.31 794,575.82 11,435.19 6,507,318.75 Total Liabilities and Net Position $ 884,053.06 $ 2,790,458.24 $2,025,469.45 $ 81,827.31 $ 875,254.73 $ 2,470,000.00 $ 9,127,062.79 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 5 Months Ended 2/28/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 302,567.00 $ 0.00 $ 55,550.00 $ 0.00 $ 358,117.00 Tenant revenue - other 0.00 0.00 1,129.75 0.00 36.00 0.00 1,165.75 HUD PHA operating grants 5,241,310.00 0.00 0.00 0.00 0.00 0.00 5,241,310.00 Management fees 0.00 24,782.00 0.00 0.00 0.00 0.00 24,782.00 Investment income - unrestricted 123.06 220.06 1,160.64 0.00 3.31 0.00 1,507.07 Fraud recovery 1,967.00 0.00 0.00 0.00 0.00 0.00 1,967.00 Other revenue 296,819.59 142,560.00 1,614.74 0.00 3,000.00 0.00 443,994.33 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 5,545,519.65 167,562.06 306,472.13 0.00 58,589.31 0.00 6,078,143.15 Operating Expenses Administrative salaries 207,744.33 43,878.57 36,045.40 0.00 19,973.62 0.00 307,641.92 Management fees 0.00 0.00 20,856.40 0.00 3,925.60 0.00 24,782.00 Advertising and marketing 374.61 96.67 297.84 0.00 5.09 0.00 774.21 Employee benefits - administrative 70,518.43 11,666.41 13,310.63 0.00 4,407.87 0.00 99,903.34 Office expenses 76,233.50 8,692.31 5,836.27 0.00 3,175.25 0.00 93,937.33 Legal expenses 0.00 2,853.50 0.00 0.00 0.00 0.00 2,853.50 Travel 6,886.08 6,298.24 416.23 0.00 170.32 0.00 13,770.87 Other admin. 12,310.49 36,306.62 1,982.92 0.00 1,252.76 0.00 51,852.79 Total Administrative 374,067.44 109,792.32 78,745.69 0.00 32,910.51 0.00 595,515.96 Tenant services - other 0.00 0.00 2,290.38 0.00 1,103.75 0.00 3,394.13 Total Tenant Services 0.00 0.00 2,290.38 0.00 1,103.75 0.00 3,394.13 Water 0.00 2,607.62 4,518.01 0.00 1,128.50 0.00 8,254.13 Electricity 0.00 6,346.43 3,941.50 0.00 3,583.29 0.00 13,871.22 Gas 0.00 0.00 2,335.33 0.00 1,702.64 0.00 4,037.97 Sewer 0.00 774.02 6,266.58 0.00 1,266.66 0.00 8,307.26 Total Utilities 0.00 9,728.07 17,061.42 0.00 7,681.09 0.00 34,470.58 Maintenance labor 0.00 12,500.82 45,190.53 0.00 5,352.63 0.00 63,043.98 Maintenance materials 383.55 4,669.22 23,549.97 0.00 5,140.08 0.00 33,742.82 Maintenance contracts 1,175.00 10,922.50 49,850.07 0.00 13,004.72 0.00 74,952.29 Employee benefits - maintenance 0.00 3,121.62 16,889.62 0.00 5,043.93 0.00 25,055.17 Total Maintenance 1,558.55 31,214.16 135,480.19 0.00 28,541.36 0.00 196,794.26 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Payments in lieu of taxes Bad debt - other Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 5 Months Ended 2/28/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 16,630.00 Fund 0.00 0.00 0.00 0.00 16,630.00 0.00 657.00 3,360.17 4,181.09 0.00 1,015.80 0.00 9,214.06 9,580.79 467.43 459.74 142.91 0.00 39.17 0.00 1,109.25 L_60 626.41 $ 2,068.15 1,957.47 3,048.34 0.00 512.34 0.00 7,586.30 357.71 753.12 465.45 0.00 100.61 0.00 1,676.89 3,550.29 6,530.50 7,837.79 0.00 1,667.92 0.00 19,586.50 0.00 2,376.00 1,330.25 0.00 3,736.25 0.00 7,442.50 0.00 2,376.00 1,330.25 0.00 3,736.25 0.00 7,442.50 6,696.38 378.00 0.00 0.00 0.00 0.00 7,074.38 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 (30,933.77) 0.00 0.00 0.00 0.00 0.00 (30,933.77) (24,237.39) 2,490.43 0.00 0.00 0.00 0.00 (21,746.96) 4,719,425.66 0.00 0.00 0.00 0.00 0.00 4,719,425.66 281,097.00 0.00 0.00 0.00 0.00 0.00 281,097.00 5,000,522.66 0.00 0.00 0.00 0.00 0.00 5,000,522.66 5,355,461.55 162,131.48 242,745.72 0.00 75,640.88 0.00 5,835,979.63 190,058.10 5,430.58 63,726.41 0.00 (17,051.57) 0.00 242,163.52 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 9,580.79 3,100.00 0.00 10,100.25 0.00 22,781.04 16,630.00 9,580.79 3,100.00 0.00 10,100.25 0.00 39,411.04 $ 173,428.10 $ (4,150.21) L_60 626.41 $ 0.00 $ (27,151.82) $ 0.00 $202 752.48 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of February 28, 2017 Assets Current Assets Cash -unrestricted $ 653,434.54 Accounts receivable - PHA projects 124,454.73 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 3,352.35 Inter program - due from 14,955.68 Total Current Assets 763,017.46 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 884,053.06 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 1,715.87 19,844.86 1,469.00 9,214.58 32,244.31 12,363.67 12,363.67 44,607.98 99,105.60 526,335.99 23,945.39 16,630.00 173.428.10 839,445.08 $ 884,053.06 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 2/28/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 91,617.00 $ 969,132.00 $ 1,060,749.00 Investment income - unrestricted 23.40 0.00 23.40 Other revenue 86,206.77 0.00 86,206.77 Total Operating Revenues 177,847.17 969,132.00 1,146,979.17 Operating Expenses Administrative salaries 44,411.85 0.00 44,411.85 Advertising and marketing 30.36 0.00 30.36 Employee benefits - administrative 15,320.37 0.00 15,320.37 Office expenses 15,062.00 0.00 15,062.00 Travel 743.28 0.00 743.28 Other admin. 2,494.65 0.00 2,494.65 Total Administrative 78,062.51 0.00 78,062.51 Maintenance materials 93.00 0.00 93.00 Total Maintenance 93.00 0.00 93.00 Housing assistance payments 0.00 940,912.66 940,912.66 HAP portability -in 77,434.00 0.00 77,434.00 Total Housing Assistance Payments 77,434.00 940,912.66 1,018,346.66 Other general expenses 1,124.49 0.00 1,124.49 Bad debt - other (30,933.77) 0.00 (30,933.77) Total General Expenses (29,809.28) 0.00 (29,809.28) Total Operating Expenses 125,780.23 940,912.66 1,066,692.89 Operating Income (Loss) 52,066.94 28,219.34 80,286.28 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 52,066.94 $ 28,219.34 $ 80,286.28 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 207,744.33 634,178.00 426,433.67 1 Month and 5 Months Ended 2/28/2017 0.00 0.00 12,750.00 Current Year to Advertising and marketing 30.36 374.61 Month Date Budget Variance Operating Revenues 70,518.43 256,179.00 185,660.57 HUD PHA operating grants $ 1,060,749.00 $ 5,241,310.00 $ 11,320,235.00 $ 6,078,925.00 Investment income - unrestricted 23.40 123.06 800.00 676.94 Fraud recovery 0.00 1,967.00 2,000.00 33.00 Other revenue 86,206.77 296,819.59 10,000.00 (286,819.59) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,146,979.17 5,545,519.65 11,333,035.00 5,787,515.35 Operating Expenses Administrative salaries 44,411.85 207,744.33 634,178.00 426,433.67 Auditing fees 0.00 0.00 12,750.00 12,750.00 Advertising and marketing 30.36 374.61 500.00 125.39 Employee benefits - administrative 15,320.37 70,518.43 256,179.00 185,660.57 Office expenses 15,062.00 76,233.50 202,000.00 125,766.50 Travel 743.28 6,886.08 17,000.00 10,113.92 Other admin. 2,494.65 12,310.49 46,195.00 33,884.51 Total Administrative 78,062.51 374,067.44 1,168,802.00 794,734.56 Maintenance materials 93.00 383.55 3,000.00 2,616.45 Maintenance contracts 0.00 1,175.00 5,000.00 3,825.00 Total Maintenance 93.00 1,558.55 8,000.00 6,441.45 Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 0.00 467.43 200.00 (267.43) Workmen's compensation 0.00 2,068.15 2,200.00 131.85 All other insurance 0.00 357.71 1,500.00 1,142.29 Total Insurance 0.00 3,550.29 8,900.00 5,349.71 Housing assistance payments 940,912.66 4,719,425.66 10,104,344.00 5,384,918.34 HAP portability -in 77,434.00 281,097.00 0.00 (281,097.00) Total Housing Assistance Payments 1,018,346.66 5,000,522.66 10,104,344.00 5,103,821.34 Other general expenses 1,124.49 6,696.38 10,000.00 3,303.62 Bad debt - other (30,933.77) (30,933.77) 0.00 30,933.77 Total General Expenses (29,809.28) (24,237.39) 10,000.00 34,237.39 Total Operating Expenses 1,066,692.89 5,355,461.55 11,300,046.00 5,944,584.45 Operating Income (Loss) 80,286.28 190,058.10 32,989.00 (157,069.10) Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ 80,286.28 $ 173,428.10 $ (11.00) $ (173,439.10) Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 5 Months Ended 2/28/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 469,124.00 $ 4,772,186.00 $ 5,241,310.00 Investment income - unrestricted 123.06 0.00 123.06 Fraud recovery 983.50 983.50 1,967.00 Other revenue 296,819.59 0.00 296,819.59 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 772,350.15 4,773,169.50 5,545,519.65 Operating Expenses Administrative salaries 207,744.33 0.00 207,744.33 Advertising and marketing 374.61 0.00 374.61 Employee benefits - administrative 70,518.43 0.00 70,518.43 Office expenses 76,233.50 0.00 76,233.50 Travel 6,886.08 0.00 6,886.08 Other admin. 12,310.49 0.00 12,310.49 Total Administrative 374,067.44 0.00 374,067.44 Maintenance materials 383.55 0.00 383.55 Maintenance contracts 1,175.00 0.00 1,175.00 Total Maintenance 1,558.55 0.00 1,558.55 Property insurance 657.00 0.00 657.00 Liability insurance 467.43 0.00 467.43 Workmen's compensation 2,068.15 0.00 2,068.15 All other insurance 357.71 0.00 357.71 Total Insurance 3,550.29 0.00 3,550.29 Housing assistance payments 0.00 4,719,425.66 4,719,425.66 HAP portability -in 281,097.00 0.00 281,097.00 Total Housing Assistance Payments 281,097.00 4,719,425.66 5,000,522.66 Other general expenses 6,696.38 0.00 6,696.38 Bad debt - other (30,933.77) 0.00 (30,933.77) Total General Expenses (24,237.39) 0.00 (24,237.39) Total Operating Expenses 636,035.89 4,719,425.66 5,355,461.55 Operating Income (Loss) 136,314.26 53,743.84 190,058.10 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 119,684.26 $ 53,743.84 $ 173,428.10 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of February 28, 2017 Assets Current Assets 509,949.32 Cash -unrestricted $ 671,665.50 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 31.55 Inventories (net) 986.65 Inter program - due from 68,666.39 Total Current Assets 1,151,171.32 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,790,458.24 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 (4,150.21) 2,787,539.06 $ 2,790,458.24 Denton Housing Authority Income Statement - Management Fund 1 Month and 5 Months Ended 2/28/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 5,089.21 $ 24,782.00 $ 63,399.00 $ 38,617.00 Investment income - unrestricted 56.20 220.06 300.00 79.94 Other revenue 14,300.00 142,560.00 1,424,600.00 1,282,040.00 Total Operating Revenues 19,445.41 167,562.06 1,488,299.00 1,320,736.94 Operating Expenses Administrative salaries 11,545.74 43,878.57 217,231.00 173,352.43 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 2,765.57 11,666.41 55,812.00 44,145.59 Office expenses 1,092.73 8,692.31 30,500.00 21,807.69 Legal expenses 658.00 2,853.50 50,000.00 47,146.50 Travel 1,065.40 6,298.24 10,000.00 3,701.76 Other admin. 7,999.00 36,306.62 96,260.00 59,953.38 Total Administrative 25,126.44 109,792.32 461,163.00 351,370.68 Water 123.47 2,607.62 5,000.00 2,392.38 Electricity 1,746.38 6,346.43 17,000.00 10,653.57 Sewer 295.57 774.02 2,000.00 1,225.98 Total Utilities 2,165.42 9,728.07 24,000.00 14,271.93 Maintenance labor 2,497.55 12,500.82 38,164.00 25,663.18 Maintenance materials 838.98 4,669.22 8,000.00 3,330.78 Maintenance contracts 2,211.74 10,922.50 38,600.00 27,677.50 Employee benefits - maintenance 594.84 3,121.62 6,324.00 3,202.38 Total Maintenance 6,143.11 31,214.16 91,088.00 59,873.84 Property insurance 0.00 3,360.17 2,700.00 (660.17) Liability insurance 0.00 459.74 100.00 (359.74) Workmen's compensation 0.00 1,957.47 1,000.00 (957.47) All other insurance 0.00 753.12 900.00 146.88 Total Insurance 0.00 6,530.50 4,700.00 (1,830.50) Protective services - other contract costs 387.92 2,376.00 5,500.00 3,124.00 Total Protective Services 387.92 2,376.00 5,500.00 3,124.00 Other general expenses 39.00 378.00 5,000.00 4,622.00 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 39.00 2,490.43 9,800.00 7,309.57 Total Operating Expenses 33,861.89 162,131.48 596,251.00 434,119.52 Operating Income (Loss) (14,416.48) 5,430.58 892,048.00 886,617.42 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 0.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ (14,416.48) $ (4,150.21) $ 812,048.00 $ 816,198.21 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of February 28, 2017 Assets Current Assets Cash -unrestricted $ 955,557.02 Accounts receivable - tenants (net) 871.10 Prepaid expenses and other assets 59.25 Inventories (net) 6,591.61 Total Current Assets 963,078.98 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 2,025,469.45 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,450.00 Inter program - due to (570.15) Total Current Liabilities 27,137.18 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 32,973.16 1,059,290.47 869,479.41 3,100.00 60,626.41 1,992,496.29 $ 2,025,469.45 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 5 Months Ended 2/28/2017 Current Month Year to Date Budget Operating Revenues Variance Net tenant rental revenue $ 61,729.00 $ 302,567.00 $ 722,190.00 $ 419,623.00 Tenant revenue - other 50.00 1,129.75 1,500.00 370.25 Investment income - unrestricted 265.70 1,160.64 1,500.00 339.36 Other revenue 501.99 1,614.74 2,500.00 885.26 Total Operating Revenues 62,546.69 306,472.13 727,690.00 421,217.87 Operating Expenses Administrative salaries 9,691.95 36,045.40 137,250.00 Auditing fees 0.00 0.00 2,550.00 Management fees 4,234.93 20,856.40 53,599.00 Advertising and marketing 0.00 297.84 0.00 Employee benefits - administrative 2,741.26 13,310.63 58,650.00 Office expenses 1,035.66 5,836.27 26,500.00 Legal expenses 0.00 0.00 1,000.00 Travel 0.00 416.23 7,000.00 Other admin. 630.94 1,982.92 14,300.00 Total Administrative 18,334.74 78,745.69 300,849.00 Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items 398.15 398.15 1,042.73 958.22 461.50 1,471.24 3,933.69 8,986.85 3,222.77 12,366.38 3,474.98 28.050.98 0.00 0.00 0.00 0.00 0.00 51,139.26 11,407.43 2,290.38 2,290.38 4,518.01 3,941.50 2,335.33 6,266.58 17,061.42 45,190.53 23,549.97 49,850.07 16,889.62 135,480.19 4,181.09 142.91 3,048.34 465.45 7,837.79 1,330.25 1,330.25 242,745.72 63,726.41 0.00 0.00 0.00 3,100.00 0.00 3,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 6,000.00 6,000.00 15,000.00 15,000.00 6,000.00 21,000.00 57,000.00 145,455.00 52,000.00 115,500.00 67,931.00 380,886.00 7,350.00 300.00 3,500.00 2,300.00 13,450.00 2,600.00 2,600.00 760,785.00 (33,095.00) 5,000.00 101,000.00 106,000.00 101,204.60 2,550.00 32,742.60 (297.84) 45,339.37 20,663.73 1,000.00 6,583.77 12,317.08 222,103.31 3,709.62 3,709.62 10,481.99 11,058.50 3,664.67 14,733.42 39,938.58 100,264.47 28,450.03 65,649.93 51,041.38 245,405.81 3,168.91 157.09 451.66 1,834.55 5,612.21 1,269.75 1,269.75 518,039.28 (96,821.41) 5,000.00 97,900.00 102,900.00 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 5 Months Ended 2/28/2017 Current Month Year to Date $ 11,407.43 $ 60,626.41 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (199,721.41) Denton Housing Authority Balance Sheet - Disaster Funds As of February 28, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 5 Months Ended 2/28/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of February 28, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 5 Months Ended 2/28/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of February 28, 2017 Assets Current Assets Cash -unrestricted $ 11,272.54 Accounts receivable - tenants (net) (301.00) Inventories (net) 999.73 Total Current Assets 11,971.27 Property and Equipment Land 159,009.13 Buildings 2,358,240.87 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 863,283.46 Total Assets $ 875,254.73 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 3,900.00 Inter program - due to 74,977.64 Total Current Liabilities 79,771.35 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 80,678.91 853,183.21 (41,555.82) 10,100.25 (27,151.82) 794,575.82 $ 875,254.73 Denton Housing Authority Income Statement - Pecan Place 1 Month and 5 Months Ended 2/28/2017 Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 14,244.60 75,640.88 (2,569.89) (17,051.57) 0.00 0.00 0.00 10,100.25 0.00 10,100.25 $ (2,569.89) $ (27,151.82) Urlaub & Co., PLLC See Accountant's Compilation Report 22 136,996.00 20,269.00 3,000.00 20,000.00 23,000.00 $ (2,731.00) 61,355.12 37,320.57 3,000.00 9,899.75 12,899.75 $ 24,420.82 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 11,674.00 $ 55,550.00 $ 157,055.00 $ 101,505.00 Tenant revenue - other 0.00 36.00 200.00 164.00 Investment income - unrestricted 0.71 3.31 10.00 6.69 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 11,674.71 58,589.31 157,265.00 98,675.69 Operating Expenses Administrative salaries 4,198.07 19,973.62 27,502.00 7,528.38 Auditing fees 0.00 0.00 340.00 340.00 Management fees 854.28 3,925.60 9,800.00 5,874.40 Advertising and marketing 0.00 5.09 0.00 (5.09) Employee benefits - administrative 953.36 4,407.87 4,342.00 (65.87) Office expenses 446.15 3,175.25 14,000.00 10,824.75 Legal expenses 0.00 0.00 500.00 500.00 Travel 0.00 170.32 1,400.00 1,229.68 Other admin. 179.30 1,252.76 5,240.00 3,987.24 Total Administrative 6,631.16 32,910.51 63,124.00 30,213.49 Tenant services - other 356.51 1,103.75 1,200.00 96.25 Total Tenant Services 356.51 1,103.75 1,200.00 96.25 Water 277.56 1,128.50 3,000.00 1,871.50 Electricity 839.60 3,583.29 7,000.00 3,416.71 Gas 364.81 1,702.64 3,000.00 1,297.36 Sewer 309.90 1,266.66 3,500.00 2,233.34 Total Utilities 1,791.87 7,681.09 16,500.00 8,818.91 Maintenance labor 1,068.79 5,352.63 17,740.00 12,387.37 Maintenance materials 1,066.70 5,140.08 7,000.00 1,859.92 Maintenance contracts 696.64 13,004.72 19,500.00 6,495.28 Employee benefits - maintenance 929.08 5,043.93 5,482.00 438.07 Total Maintenance 3,761.21 28,541.36 49,722.00 21,180.64 Property insurance 0.00 1,015.80 1,300.00 284.20 Liability insurance 0.00 39.17 50.00 10.83 Workmen's compensation 0.00 512.34 800.00 287.66 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 0.00 1,667.92 2,850.00 1,182.08 Protective services - other contract costs 1,703.85 3,736.25 3,600.00 (136.25) Total Protective Services 1,703.85 3,736.25 3,600.00 (136.25) Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 14,244.60 75,640.88 (2,569.89) (17,051.57) 0.00 0.00 0.00 10,100.25 0.00 10,100.25 $ (2,569.89) $ (27,151.82) Urlaub & Co., PLLC See Accountant's Compilation Report 22 136,996.00 20,269.00 3,000.00 20,000.00 23,000.00 $ (2,731.00) 61,355.12 37,320.57 3,000.00 9,899.75 12,899.75 $ 24,420.82 Denton Housing Authority FYE 9/30/17 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) 22,921.89 49,469.89 77,68923 77,68923 77,68923 77,68923 77,68923 77,68923 77,68923 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 4,772,186.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - - - - - - - - 983.50 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 4.773.169.50 Expenses: HAP Payments 936,926.00 968,761.00 930,242.00 942,584.00 940,912.66 4,719,425.66 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 968,761.00 930242.00 942,584.00 940,912.66 - - - - - - - 4,719,425.66 Net Income (Loss) (22,826.00) (8,445.50) 30,248.00 26,548.00 28,219.34 - - - - - - - 53,743.84 Ending HAP Equity 1.119.39 7( .326.11) 22.921 89 49.469 89 77.689 23 77.689 23 77.689 23 77.689 23 77.689 23 77.689 23 77.689 23 77.689 23 77.689 23 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596,814.19 610,583.31 662,650.25 662,650.25 662,650.25 662,650.25 662,650.25 662,650.25 662,650.25 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 469,124.00 Interest Income 22.94 21.31 27.30 28.11 23.40 123.06 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 302,119.59 Fraud Income (Admin) 100.00 354.50 529.00 - - - - - - - - - 983.50 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 772,350.15 Expens Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 636,035.89 Concur with HUD 12/31/1° - - - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 - - - - - - - 636,035.89 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 - - - - - - - 136,314.26 Ending Admin Equity 553��3247 579��9461 5%14.19 610��83.31 662��50.25 6626��0.25 6626��0.25 6626��0.25 662��50.25 6626��0.25 662��50.25 662��50.25 527��42.55 Restricteol 77,68923 Unrestricted 527,442.55 Investment in Net Capital Assets 99,105.60 Total Equity 704237.38 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of March 31, 2017, and the related income statement for the 1 Month and 6 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC April 11, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of March 31, 2017 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 634,327.17 $ 657,386.29 $ 965,172.14 $ 0.00 $ 8,551.81 $ 0.00 $ 2,265,437.41 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 124,613.24 0.00 0.00 0.00 0.00 0.00 124,613.24 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 948.10 0.00 (306.00) 0.00 642.10 Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 1,893.75 0.00 0.00 0.00 0.00 0.00 1,893.75 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 29,266.47 63,685.00 0.00 0.00 0.00 0.00 92,951.47 Total Current Assets 756,920.79 1,131,879.17 972,711.85 81,827.31 9,245.54 0.00 2,952,584.66 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,858,627.68 0.00 2,362,007.61 0.00 8,264,216.16 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,062,390.47 0.00 867,050.20 2,470,000.00 6,159,763.19 Total Assets $ 877,956.39 $ 2,771,166.09 $ 2,035,102.32 $81,827.31 $ 876,295.74 $ 2,470,000.00 $ 9,112,347.85 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of March 31, 2017 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 3,100.00 0.00 Fund 0.00 43,177.78 Net income (loss) 171,030.47 Current Liabilities 60,315.73 0.00 (35,415.03) 0.00 172,488.81 Accrued wage/payroll taxes payable $ 3,868.46 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 3,868.46 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,750.00 0.00 3,900.00 0.00 25,650.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to 3,362.95 0.00 9,073.40 0.00 80,515.12 0.00 92,951.47 Total Current Liabilities 28,545.27 1,397.76 37,080.73 0.00 85,308.83 2,458,564.81 2,610,897.40 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 40,908.94 2,919.18 42,916.71 0.00 86,216.39 2,458,564.81 2,631,526.03 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 9,580.79 3,100.00 0.00 13,866.99 0.00 43,177.78 Net income (loss) 171,030.47 (23,442.36) 60,315.73 0.00 (35,415.03) 0.00 172,488.81 Total Net Position 837,047.45 2,768,246.91 1,992,185.61 81,827.31 790,079.35 11,435.19 6,480,821.82 Total Liabilities and Net Position $ 877,956.39 $ 2,771,166.09 $ 2,035,102.32 $ 81,827.31 $876,295.74 $ 2,470,000.00 $ 9,112,347.85 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 6 Months Ended 3/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 365,228.00 $ 0.00 $ 67,982.00 $ 0.00 $ 433,210.00 Tenant revenue - other 0.00 0.00 1,219.75 0.00 42.00 0.00 1,261.75 HUD PHA operating grants 6,324,549.00 0.00 0.00 0.00 0.00 0.00 6,324,549.00 Management fees 0.00 30,101.56 0.00 0.00 0.00 0.00 30,101.56 Investment income - unrestricted 150.55 241.26 1,481.12 0.00 4.07 0.00 1,877.00 Fraud recovery 2,167.00 0.00 0.00 0.00 0.00 0.00 2,167.00 Other revenue 424,173.46 155,860.00 2,202.45 0.00 3,000.00 0.00 585,235.91 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 6,756,340.01 186,202.82 370,131.32 0.00 71,028.07 0.00 7,383,702.22 Operating Expenses Administrative salaries 274,395.13 60,811.98 51,619.38 0.00 26,214.08 0.00 413,040.57 Management fees 0.00 0.00 25,305.72 0.00 4,795.84 0.00 30,101.56 Advertising and marketing 374.61 96.67 297.84 0.00 5.09 0.00 774.21 Employee benefits - administrative 84,712.87 14,341.74 16,073.14 0.00 5,361.18 0.00 120,488.93 Office expenses 95,727.17 9,865.90 6,875.17 0.00 3,731.45 0.00 116,199.69 Legal expenses 0.00 2,853.50 0.00 0.00 0.00 0.00 2,853.50 Travel 9,576.77 7,269.30 930.62 0.00 205.80 0.00 17,982.49 Other admin. 14,900.00 44,425.36 2,192.17 0.00 1,282.76 0.00 62,800.29 Total Administrative 479,686.55 139,664.45 103,294.04 0.00 41,596.20 0.00 764,241.24 Tenant services - other 0.00 0.00 2,567.19 0.00 1,213.54 0.00 3,780.73 Total Tenant Services 0.00 0.00 2,567.19 0.00 1,213.54 0.00 3,780.73 Water 0.00 2,728.42 5,533.15 0.00 1,383.81 0.00 9,645.38 Electricity 0.00 7,805.82 4,762.08 0.00 4,245.88 0.00 16,813.78 Gas 0.00 0.00 2,590.60 0.00 1,928.54 0.00 4,519.14 Sewer 0.00 885.51 7,707.49 0.00 1,552.10 0.00 10,145.10 Total Utilities 0.00 11,419.75 20,593.32 0.00 9,110.33 0.00 41,123.40 Maintenance labor 0.00 16,217.69 58,584.06 0.00 6,938.04 0.00 81,739.79 Maintenance materials 548.82 5,051.35 27,978.26 0.00 7,568.06 0.00 41,146.49 Maintenance contracts 1,215.00 12,160.82 64,145.38 0.00 14,700.58 0.00 92,221.78 Employee benefits - maintenance 0.00 3,731.19 20,174.45 0.00 5,855.34 0.00 29,760.98 Total Maintenance 1,763.82 37,161.05 170,882.15 0.00 35,062.02 0.00 244,869.04 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Payments in lieu of taxes Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 6 Months Ended 3/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 3,360.17 4,181.09 0.00 1,015.80 0.00 9,214.06 467.43 459.74 142.91 0.00 39.17 0.00 1,109.25 2,068.15 1,957.47 3,048.34 0.00 512.34 0.00 7,586.30 357.71 753.12 465.45 0.00 100.61 0.00 1,676.89 3,550.29 6,530.50 7,837.79 0.00 1,667.92 0.00 19,586.50 85.72 2,759.21 1,541.10 0.00 3,926.10 0.00 8,312.13 85.72 2,759.21 1,541.10 0.00 3,926.10 0.00 8,312.13 16,537.50 417.00 0.00 0.00 0.00 0.00 16,954.50 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 16,537.50 2,529.43 0.00 0.00 0.00 0.00 19,066.93 5,659,117.66 0.00 0.00 0.00 0.00 0.00 5,659,117.66 407,938.00 0.00 0.00 0.00 0.00 0.00 407,938.00 6,067,055.66 0.00 0.00 0.00 0.00 0.00 6,067,055.66 6,568,679.54 200,064.39 306,715.59 0.00 92,576.11 0.00 7,168,035.63 187,660.47 (13,861.57) 63,415.73 0.00 (21,548.04) 0.00 215,666.59 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 9,580.79 3,100.00 0.00 13,866.99 0.00 26,547.78 16,630.00 9,580.79 3,100.00 0.00 13,866.99 0.00 43,177.78 $ 171,030.47 $ (23,442.36) $60,315.73 $ 0.00 $ (35,415.03) $ 0.00 $ 172,488.81 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of March 31, 2017 Assets Current Assets Cash -unrestricted $ 634,327.17 Accounts receivable - PHA projects 124,613.24 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 1,893.75 Inter program - due from 29,266.47 Total Current Assets 756,920.79 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 877,956.39 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 3,868.46 19,844.86 1,469.00 3,362.95 28,545.27 12,363.67 12,363.67 40,908.94 99,105.60 526,335.99 23,945.39 16,630.00 171,030.47 837,047.45 $ 877,956.39 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 3/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 89,393.00 $ 993,846.00 $ 1,083,239.00 Investment income - unrestricted 27.49 0.00 27.49 Fraud recovery 100.00 100.00 200.00 Other revenue 127,353.87 0.00 127,353.87 Total Operating Revenues 216,874.36 993,946.00 1,210,820.36 Operating Expenses Administrative salaries 66,650.80 0.00 66,650.80 Employee benefits - administrative 14,194.44 0.00 14,194.44 Office expenses 19,493.67 0.00 19,493.67 Travel 2,690.69 0.00 2,690.69 Other admin. 2,589.51 0.00 2,589.51 Total Administrative 105,619.11 0.00 105,619.11 Maintenance materials 165.27 0.00 165.27 Maintenance contracts 40.00 0.00 40.00 Total Maintenance 205.27 0.00 205.27 Protective services - other contract costs 85.72 0.00 85.72 Total Protective Services 85.72 0.00 85.72 Housing assistance payments 0.00 939,692.00 939,692.00 HAP portability -in 126,841.00 0.00 126,841.00 Total Housing Assistance Payments 126,841.00 939,692.00 1,066,533.00 Other general expenses 9,841.12 0.00 9,841.12 Bad debt - other 30,933.77 0.00 30,933.77 Total General Expenses 40,774.89 0.00 40,774.89 Total Operating Expenses 273,525.99 939,692.00 1,213,217.99 Operating Income (Loss) (56,651.63) 54,254.00 (2,397.63) Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss)$ (56,651.63) $ 54,254.00 $ (2,397.63) Urlaub & Co., PLLC See Accountant's Compilation Report 9 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement-Section 8 Voucher 1 Month and 6 Months Ended 3/31/2017 Current Year to Month Date Budget Variance Operating Revenues HUD PHA operating grants $ 1,083,239.00 $ 6,324,549.00 $ 11,320,235.00 $ 4,995,686.00 Investment income - unrestricted 27.49 150.55 800.00 649.45 Fraud recovery 200.00 2,167.00 2,000.00 (167.00) Other revenue 127,353.87 424,173.46 10,000.00 (414,173.46) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,210,820.36 6,756,340.01 11,333,035.00 4,576,694.99 Operating Expenses Administrative salaries 66,650.80 274,395.13 634,178.00 359,782.87 Auditing fees 0.00 0.00 12,750.00 12,750.00 Advertising and marketing 0.00 374.61 500.00 125.39 Employee benefits - administrative 14,194.44 84,712.87 256,179.00 171,466.13 Office expenses 19,493.67 95,727.17 202,000.00 106,272.83 Travel 2,690.69 9,576.77 17,000.00 7,423.23 Other admin. 2,589.51 14,900.00 46,195.00 31,295.00 Total Administrative 105,619.11 479,686.55 1,168,802.00 689,115.45 Maintenance materials 165.27 548.82 3,000.00 2,451.18 Maintenance contracts 40.00 1,215.00 5,000.00 3,785.00 Total Maintenance 205.27 1,763.82 8,000.00 6,236.18 Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 0.00 467.43 200.00 (267.43) Workmen's compensation 0.00 2,068.15 2,200.00 131.85 All other insurance 0.00 357.71 1,500.00 1,142.29 Total Insurance 0.00 3,550.29 8,900.00 5,349.71 Protective services - other contract costs 85.72 85.72 0.00 (85.72) Total Protective Services 85.72 85.72 0.00 (85.72) Housing assistance payments 939,692.00 5,659,117.66 10,104,344.00 4,445,226.34 HAP portability-in 126,841.00 407,938.00 0.00 (407,938.00) Total Housing Assistance Payments 1,066,533.00 6,067,055.66 10,104,344.00 4,037,288.34 Other general expenses 9,841.12 16,537.50 10,000.00 (6,537.50) Bad debt - other 30,933.77 0.00 0.00 0.00 Total General Expenses 40,774.89 16,537.50 10,000.00 (6,537.50) Total Operating Expenses 1,213,217.99 6,568,679.54 11,300,046.00 4,731,366.46 Operating Income (Loss) (2,397.63) 187,660.47 32,989.00 (154,671.47) Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ (2,397.63) $ 171,030.47 $ (11.00) $ (171,041.47) Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 6 Months Ended 3/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 558,517.00 $ 5,766,032.00 $ 6,324,549.00 Investment income - unrestricted 150.55 0.00 150.55 Fraud recovery 1,083.50 1,083.50 2,167.00 Other revenue 424,173.46 0.00 424,173.46 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 989,224.51 5,767,115.50 6,756,340.01 Operating Expenses Administrative salaries 274,395.13 0.00 274,395.13 Advertising and marketing 374.61 0.00 374.61 Employee benefits - administrative 84,712.87 0.00 84,712.87 Office expenses 95,727.17 0.00 95,727.17 Travel 9,576.77 0.00 9,576.77 Other admin. 14,900.00 0.00 14,900.00 Total Administrative 479,686.55 0.00 479,686.55 Maintenance materials 548.82 0.00 548.82 Maintenance contracts 1,215.00 0.00 1,215.00 Total Maintenance 1,763.82 0.00 1,763.82 Property insurance 657.00 0.00 657.00 Liability insurance 467.43 0.00 467.43 Workmen's compensation 2,068.15 0.00 2,068.15 All other insurance 357.71 0.00 357.71 Total Insurance 3,550.29 0.00 3,550.29 Protective services - other contract costs 85.72 0.00 85.72 Total Protective Services 85.72 0.00 85.72 Housing assistance payments 0.00 5,659,117.66 5,659,117.66 HAP portability -in 407,938.00 0.00 407,938.00 Total Housing Assistance Payments 407,938.00 5,659,117.66 6,067,055.66 Other general expenses 16,537.50 0.00 16,537.50 Total General Expenses 16,537.50 0.00 16,537.50 Total Operating Expenses 909,561.88 5,659,117.66 6,568,679.54 Operating Income (Loss) 79,662.63 107,997.84 187,660.47 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 63,032.63 $ 107,997.84 $ 171,030.47 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of March 31, 2017 Assets Current Assets Cash -unrestricted $ 657,386.29 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Inventories (net) 986.65 Inter program - due from 63,685.00 Total Current Assets 1,131,879.17 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,771,166.09 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 $ 1,397.76 1,397.76 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 (23,442.36) 2,768,246.91 $ 2,771,166.09 Denton Housing Authority Income Statement - Management Fund 1 Month and 6 Months Ended 3/31/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 5,319.56 $ 30,101.56 $ 63,399.00 $ 33,297.44 Investment income - unrestricted 21.20 241.26 300.00 58.74 Other revenue 13,300.00 155,860.00 1,424,600.00 1,268,740.00 Total Operating Revenues 18,640.76 186,202.82 1,488,299.00 1,302,096.18 Operating Expenses Administrative salaries 16,933.41 60,811.98 217,231.00 156,419.02 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 2,675.33 14,341.74 55,812.00 41,470.26 Office expenses 1,173.59 9,865.90 30,500.00 20,634.10 Legal expenses 0.00 2,853.50 50,000.00 47,146.50 Travel 971.06 7,269.30 10,000.00 2,730.70 Other admin. 8,118.74 44,425.36 96,260.00 51,834.64 Total Administrative 29,872.13 139,664.45 461,163.00 321,498.55 Water 120.80 2,728.42 5,000.00 2,271.58 Electricity 1,459.39 7,805.82 17,000.00 9,194.18 Sewer 111.49 885.51 2,000.00 1,114.49 Total Utilities 1,691.68 11,419.75 24,000.00 12,580.25 Maintenance labor 3,716.87 16,217.69 38,164.00 21,946.31 Maintenance materials 382.13 5,051.35 8,000.00 2,948.65 Maintenance contracts 1,238.32 12,160.82 38,600.00 26,439.18 Employee benefits - maintenance 609.57 3,731.19 6,324.00 2,592.81 Total Maintenance 5,946.89 37,161.05 91,088.00 53,926.95 Property insurance 0.00 3,360.17 2,700.00 (660.17) Liability insurance 0.00 459.74 100.00 (359.74) Workmen's compensation 0.00 1,957.47 1,000.00 (957.47) All other insurance 0.00 753.12 900.00 146.88 Total Insurance 0.00 6,530.50 4,700.00 (1,830.50) Protective services - other contract costs 383.21 2,759.21 5,500.00 2,740.79 Total Protective Services 383.21 2,759.21 5,500.00 2,740.79 Other general expenses 39.00 417.00 5,000.00 4,583.00 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 39.00 2,529.43 9,800.00 7,270.57 Total Operating Expenses 37,932.91 200,064.39 596,251.00 396,186.61 Operating Income (Loss) (19,292.15) (13,861.57) 892,048.00 905,909.57 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 0.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ (19,292.15) $ (23,442.36) $ 812,048.00 $ 835,490.36 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of March 31, 2017 Assets Current Assets Cash -unrestricted $ 965,172.14 Accounts receivable - tenants (net) 948.10 Inventories (net) 6,591.61 Total Current Assets 972,711.85 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 2,035,102.32 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,750.00 Inter program - due to 9,073.40 Total Current Liabilities 37,080.73 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 42,916.71 1,059,290.47 869,479.41 3,100.00 60,315.73 1,992,185.61 $ 2,035,102.32 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 6 Months Ended 3/31/2017 Current Month Year to Date Budget Operating Revenues Variance Net tenant rental revenue $ 62,661.00 $ 365,228.00 $ 722,190.00 $ 356,962.00 Tenant revenue - other 90.00 1,219.75 1,500.00 280.25 Investment income - unrestricted 320.48 1,481.12 1,500.00 18.88 Other revenue 587.71 2,202.45 2,500.00 297.55 Total Operating Revenues 63,659.19 370,131.32 727,690.00 357,558.68 Operating Expenses Administrative salaries 15,573.98 51,619.38 137,250.00 Auditing fees 0.00 0.00 2,550.00 Management fees 4,449.32 25,305.72 53,599.00 Advertising and marketing 0.00 297.84 0.00 Employee benefits - administrative 2,762.51 16,073.14 58,650.00 Office expenses 1,038.90 6,875.17 26,500.00 Legal expenses 0.00 0.00 1,000.00 Travel 514.39 930.62 7,000.00 Other admin. 209.25 2,192.17 14,300.00 Total Administrative 24,548.35 103,294.04 300,849.00 Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items 276.81 276.81 1,015.14 820.58 255.27 1.440.91 3,531.90 13,393.53 4,428.29 14,295.31 3,284.83 35.401.96 0.00 0.00 0.00 0.00 0.00 210.85 210.85 63,969.87 (310.68) 2,567.19 2,567.19 5,533.15 4,762.08 2,590.60 7,707.49 20,593.32 58,584.06 27,978.26 64,145.38 20,174.45 170,882.15 4,181.09 142.91 3,048.34 465.45 7,837.79 1,541.10 1,541.10 306,715.59 63,415.73 0.00 0.00 0.00 3,100.00 0.00 3,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 6,000.00 6,000.00 15,000.00 15,000.00 6,000.00 21,000.00 57,000.00 145,455.00 52,000.00 115,500.00 67,931.00 380,886.00 7,350.00 300.00 3,500.00 2,300.00 13,450.00 2,600.00 2,600.00 760,785.00 (33,095.00) 5,000.00 101,000.00 106,000.00 85,630.62 2,550.00 28,293.28 (297.84) 42,576.86 19,624.83 1,000.00 6,069.38 12,107.83 197,554.96 3,432.81 3,432.81 9,466.85 10,237.92 3,409.40 13,292.51 36,406.68 86,870.94 24,021.74 51,354.62 47,756.55 210,003.85 3,168.91 157.09 451.66 1,834.55 5,612.21 1,058.90 1,058.90 454,069.41 (96,510.73) 5,000.00 97,900.00 102,900.00 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 6 Months Ended 3/31/2017 Current Month Year to Date $ (310.68) $ 60,315.73 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (199,410.73) Denton Housing Authority Balance Sheet - Disaster Funds As of March 31, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 6 Months Ended 3/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of March 31, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 6 Months Ended 3/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of March 31, 2017 Assets Current Assets Cash -unrestricted $ 8,551.81 Accounts receivable - tenants (net) (306.00) Inventories (net) 999.73 Total Current Assets 9,245.54 Property and Equipment Land 159,009.13 Buildings 2,362,007.61 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 867,050.20 Total Assets $ 876,295.74 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 3,900.00 Inter program - due to 80,515.12 Total Current Liabilities 85,308.83 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 86,216.39 853,183.21 (41,555.82) 13,866.99 (35,415.03) 790,079.35 $ 876,295.74 Denton Housing Authority Income Statement - Pecan Place 1 Month and 6 Months Ended 3/31/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 12,432.00 $ 67,982.00 $ 157,055.00 $ 89,073.00 Tenant revenue - other 6.00 42.00 200.00 158.00 Investment income - unrestricted 0.76 4.07 10.00 5.93 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 12,438.76 71,028.07 157,265.00 86,236.93 Operating Expenses Administrative salaries 6,240.46 26,214.08 27,502.00 1,287.92 Auditing fees 0.00 0.00 340.00 340.00 Management fees 870.24 4,795.84 9,800.00 5,004.16 Advertising and marketing 0.00 5.09 0.00 (5.09) Employee benefits - administrative 953.31 5,361.18 4,342.00 (1,019.18) Office expenses 556.20 3,731.45 14,000.00 10,268.55 Legal expenses 0.00 0.00 500.00 500.00 Travel 35.48 205.80 1,400.00 1,194.20 Other admin. 30.00 1,282.76 5,240.00 3,957.24 Total Administrative 8,685.69 41,596.20 63,124.00 21,527.80 Tenant services - other 109.79 1,213.54 1,200.00 (13.54) Total Tenant Services 109.79 1,213.54 1,200.00 (13.54) Water 255.31 1,383.81 3,000.00 1,616.19 Electricity 662.59 4,245.88 7,000.00 2,754.12 Gas 225.90 1,928.54 3,000.00 1,071.46 Sewer 285.44 1,552.10 3,500.00 1,947.90 Total Utilities 1,429.24 9,110.33 16,500.00 7,389.67 Maintenance labor 1,585.41 6,938.04 17,740.00 10,801.96 Maintenance materials 2,427.98 7,568.06 7,000.00 (568.06) Maintenance contracts 1,695.86 14,700.58 19,500.00 4,799.42 Employee benefits - maintenance 811.41 5,855.34 5,482.00 (373.34) Total Maintenance 6,520.66 35,062.02 49,722.00 14,659.98 Property insurance 0.00 1,015.80 1,300.00 284.20 Liability insurance 0.00 39.17 50.00 10.83 Workmen's compensation 0.00 512.34 800.00 287.66 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 0.00 1,667.92 2,850.00 1,182.08 Protective services - other contract costs 189.85 3,926.10 3,600.00 (326.10) Total Protective Services 189.85 3,926.10 3,600.00 (326.10) Total Operating Expenses 16,935.23 92,576.11 136,996.00 44,419.89 Operating Income (Loss) (4,496.47) (21,548.04) 20,269.00 41,817.04 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 3,766.74 13,866.99 20,000.00 6,133.01 Total Other Financial Items 3,766.74 13,866.99 23,000.00 9,133.01 Net Income (Loss) $ (8,263.21) $ (35,415.03) $ (2,731.00) $ 32,684.03 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority FYE 9/30/17 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) 22,921.89 49,469.89 77,68923 131,943.23 131,943.23 131,943.23 131,943.23 131,943.23 131,943.23 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 5,766,032.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 - - - - - - 1.083.50 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 5.767.115.50 Expenses: HAP Payments 936,926.00 968,761.00 930,242.00 942,584.00 940,912.66 939,692.00 5,659,117.66 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 968,761.00 930242.00 942,584.00 940,912.66 939,692.00 - - - - - - 5,659,117.66 Net Income (Loss) (22,826.00) (8,445.50) 30,248.00 26,548.00 28,219.34 54,254.00 - - - - - - 107,997.84 Ending HAP Equity 1.119.39 7( .326.11) 22.92189 49.46989 77.68923 131.943.23 131.943.23 131.943.23 131.943.23 131.943.23 131.943.23 131.943.23 131.943.23 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596,814.19 610,583.31 662,650.25 605,948.76 605,948.76 605,948.76 605,948.76 605,948.76 605,948.76 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 558,517.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 150.55 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,304.01 429,423.60 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 - - - - - - 1,083.50 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,824.50 989,174.65 Expens Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 909,561.88 Concur with HUD 12/31/1° - - - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 - - - - - - 909,561.88 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,701.49) - - - - - - 79,612.77 Ending Admin Equity553��3247 579��9461 5%14.19 610��83.31 662��50.25 6059��8.76 6059��8.76 6059��8.76 605�a48.76 6059��8.76 605�a48.76 60�=.76 527�a70.04 Restricteol 131,943.23 Unrestricted 527,570.04 Investment in Net Capital Assets 99,105.60 Total Equity 758,618.87 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of April 30, 2017, and the related income statement for the 1 Month and 7 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC May 10, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of April 30, 2017 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 676,850.21 $ 655,396.69 $ 953,839.46 $ 0.00 $ 9,825.02 $ 0.00 $ 2,295,911.38 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 128,261.68 0.00 0.00 0.00 0.00 0.00 128,261.68 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 975.60 0.00 (179.00) 0.00 796.60 Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 1,515.00 0.00 0.00 0.00 0.00 0.00 1,515.00 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 27,052.38 77,576.38 0.00 0.00 0.00 0.00 104,628.76 Total Current Assets 800,499.43 1,143,780.95 961,406.67 81,827.31 10,645.75 0.00 2,998,160.11 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,858,627.68 0.00 2,362,007.61 0.00 8,264,216.16 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,062,390.47 0.00 867,050.20 2,470,000.00 6,159,763.19 Total Assets $921,535.03 $2,783,067.87 $ 2,023,797.14 L_81 827.31 $ 877,695.95 $ 2,470,000.00 $ 9,157,923.30 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of April 30, 2017 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 3,100.00 0.00 Fund 0.00 43,177.78 Net income (loss) 201,782.88 Current Liabilities 52,760.53 0.00 (36,294.33) 0.00 206,708.50 Accrued wage/payroll taxes payable $ 3,696.93 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 3,696.93 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,450.00 0.00 4,050.00 0.00 25,500.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to 16,360.71 0.00 5,623.42 0.00 82,644.63 0.00 104,628.76 Total Current Liabilities 41,371.50 1,397.76 33,330.75 0.00 87,588.34 2,458,564.81 2,622,253.16 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 53,735.17 2,919.18 39,166.73 0.00 88,495.90 2,458,564.81 2,642,881.79 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 9,580.79 3,100.00 0.00 13,866.99 0.00 43,177.78 Net income (loss) 201,782.88 (11,540.58) 52,760.53 0.00 (36,294.33) 0.00 206,708.50 Total Net Position 867,799.86 2,780,148.69 1,984,630.41 81,827.31 789,200.05 11,435.19 6,515,041.51 Total Liabilities and Net Position $ 921,535.03 $ 2,783,067.87 $ 2,023,797.14 $ 81,827.31 $877,695.95 $ 2,470,000.00 $ 9,157,923.30 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 7 Months Ended 4/30/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 426,914.00 $ 0.00 $ 80,748.00 $ 0.00 $ 507,662.00 Tenant revenue - other 0.00 0.00 1,349.75 0.00 42.00 0.00 1,391.75 HUD PHA operating grants 7,407,788.00 0.00 0.00 0.00 0.00 0.00 7,407,788.00 Management fees 0.00 35,296.75 0.00 0.00 0.00 0.00 35,296.75 Investment income - unrestricted 177.00 261.89 1,837.50 0.00 4.67 0.00 2,281.06 Fraud recovery 2,292.00 0.00 0.00 0.00 0.00 0.00 2,292.00 Other revenue 515,797.42 196,160.00 4,151.79 0.00 3,000.00 0.00 719,109.21 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 7,931,354.42 231,718.64 434,253.04 0.00 83,794.67 0.00 8,681,120.77 Operating Expenses Administrative salaries 320,056.01 72,082.08 62,083.18 0.00 30,387.11 0.00 484,608.38 Management fees 0.00 0.00 29,607.29 0.00 5,689.46 0.00 35,296.75 Advertising and marketing 404.97 96.67 297.84 0.00 5.09 0.00 804.57 Employee benefits - administrative 101,285.51 17,691.10 19,171.41 0.00 6,410.51 0.00 144,558.53 Office expenses 111,010.01 11,380.44 8,619.95 0.00 4,486.42 0.00 135,496.82 Legal expenses 0.00 2,853.50 0.00 0.00 0.00 0.00 2,853.50 Travel 10,063.41 8,005.52 1,021.42 0.00 223.96 0.00 19,314.31 Other admin. 16,249.38 52,237.75 2,364.67 0.00 1,323.26 0.00 72,175.06 Total Administrative 559,069.29 164,347.06 123,165.76 0.00 48,525.81 0.00 895,107.92 Tenant services - other 0.00 0.00 3,035.35 0.00 1,380.90 0.00 4,416.25 Total Tenant Services 0.00 0.00 3,035.35 0.00 1,380.90 0.00 4,416.25 Water 0.00 2,859.01 5,911.28 0.00 1,676.95 0.00 10,447.24 Electricity 29.75 9,447.42 7,180.00 0.00 4,904.25 0.00 21,561.42 Gas 0.00 0.00 2,976.26 0.00 2,124.38 0.00 5,100.64 Sewer 0.00 1,007.76 8,507.80 0.00 1,913.57 0.00 11,429.13 Total Utilities 29.75 13,314.19 24,575.34 0.00 10,619.15 0.00 48,538.43 Maintenance labor 0.00 18,765.72 67,912.85 0.00 8,040.48 0.00 94,719.05 Maintenance materials 725.45 5,176.33 39,394.79 0.00 8,112.46 0.00 53,409.03 Maintenance contracts 5,673.98 13,539.14 81,694.56 0.00 16,077.22 0.00 116,984.90 Employee benefits - maintenance 0.00 4,372.59 23,950.80 0.00 6,866.91 0.00 35,190.30 Total Maintenance 6,399.43 41,853.78 212,953.00 0.00 39,097.07 0.00 300,303.28 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Payments in lieu of taxes Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 7 Months Ended 4/30/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 4,315.81 7,229.77 0.00 1,616.23 0.00 13,818.81 0.00 898.06 786.90 229.13 0.00 56.41 0.00 1,970.50 9,580.79 2,738.03 2,592.94 4,570.95 0.00 709.88 0.00 10,611.80 L_52 760.53 $ 546.58 893.54 670.41 0.00 100.61 0.00 2,211.14 4,839.67 8,589.19 12,700.26 0.00 2,483.13 0.00 28,612.25 321.57 3,044.78 1,962.80 0.00 4,115.95 0.00 9,445.10 321.57 3,044.78 1,962.80 0.00 4,115.95 0.00 9,445.10 18,240.17 417.00 0.00 0.00 0.00 0.00 18,657.17 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 18,240.17 2,529.43 0.00 0.00 0.00 0.00 20,769.60 6,628,956.66 0.00 0.00 0.00 0.00 0.00 6,628,956.66 495,085.00 0.00 0.00 0.00 0.00 0.00 495,085.00 7,124,041.66 0.00 0.00 0.00 0.00 0.00 7,124,041.66 7,712,941.54 233,678.43 378,392.51 0.00 106,222.01 0.00 8,431,234.49 218,412.88 (1,959.79) 55,860.53 0.00 (22,427.34) 0.00 249,886.28 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 9,580.79 3,100.00 0.00 13,866.99 0.00 26,547.78 16,630.00 9,580.79 3,100.00 0.00 13,866.99 0.00 43,177.78 $ 201,782.88 $ (11,540.58) L_52 760.53 $ 0.00 $ (36,294.33) $ 0.00 $ 206,708.50 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of April 30, 2017 Assets Current Assets Cash -unrestricted $ 676,850.21 Accounts receivable - PHA projects 128,261.68 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 1,515.00 Inter program - due from 27,052.38 Total Current Assets 800,499.43 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 921,535.03 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 3,696.93 19,844.86 1,469.00 16,360.71 41,371.50 12,363.67 12,363.67 53,735.17 99,105.60 526,335.99 23,945.39 16,630.00 201,782.88 867,799.86 $ 921,535.03 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 4/30/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 89,393.00 $ 993,846.00 $ 1,083,239.00 Investment income - unrestricted 26.45 0.00 26.45 Fraud recovery 62.50 62.50 125.00 Other revenue 91,623.96 0.00 91,623.96 Total Operating Revenues 181,105.91 993,908.50 1,175,014.41 Operating Expenses Administrative salaries 45,660.88 0.00 45,660.88 Advertising and marketing 30.36 0.00 30.36 Employee benefits - administrative 16,572.64 0.00 16,572.64 Office expenses 15,282.84 0.00 15,282.84 Travel 486.64 0.00 486.64 Other admin. 1,349.38 0.00 1,349.38 Total Administrative 79,382.74 0.00 79,382.74 Electricity 29.75 0.00 29.75 Total Utilities 29.75 0.00 29.75 Maintenance materials 176.63 0.00 176.63 Maintenance contracts 4,458.98 0.00 4,458.98 Total Maintenance 4,635.61 0.00 4,635.61 Liability insurance 430.63 0.00 430.63 Workmen's compensation 669.88 0.00 669.88 All other insurance 188.87 0.00 188.87 Total Insurance 1,289.38 0.00 1,289.38 Protective services - other contract costs 235.85 0.00 235.85 Total Protective Services 235.85 0.00 235.85 Housing assistance payments 0.00 969,839.00 969,839.00 HAP portability -in 87,147.00 0.00 87,147.00 Total Housing Assistance Payments 87,147.00 969,839.00 1,056,986.00 Other general expenses 1,702.67 0.00 1,702.67 Total General Expenses 1,702.67 0.00 1,702.67 Total Operating Expenses 174,423.00 969,839.00 1,144,262.00 Operating Income (Loss) 6,682.91 24,069.50 30,752.41 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 6,682.91 $ 24,069.50 $ 30,752.41 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 320,056.01 634,178.00 314,121.99 1 Month and 7 Months Ended 4/30/2017 0.00 0.00 12,750.00 Current Year to Advertising and marketing 30.36 404.97 Month Date Budget Variance Operating Revenues 101,285.51 256,179.00 154,893.49 HUD PHA operating grants $ 1,083,239.00 $ 7,407,788.00 $ 11,320,235.00 $ 3,912,447.00 Investment income - unrestricted 26.45 177.00 800.00 623.00 Fraud recovery 125.00 2,292.00 2,000.00 (292.00) Other revenue 91,623.96 515,797.42 10,000.00 (505,797.42) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,175,014.41 7,931,354.42 11,333,035.00 3,401,680.58 Operating Expenses Administrative salaries 45,660.88 320,056.01 634,178.00 314,121.99 Auditing fees 0.00 0.00 12,750.00 12,750.00 Advertising and marketing 30.36 404.97 500.00 95.03 Employee benefits - administrative 16,572.64 101,285.51 256,179.00 154,893.49 Office expenses 15,282.84 111,010.01 202,000.00 90,989.99 Travel 486.64 10,063.41 17,000.00 6,936.59 Other admin. 1,349.38 16,249.38 46,195.00 29,945.62 Total Administrative 79,382.74 559,069.29 1,168,802.00 609,732.71 Electricity 29.75 29.75 0.00 (29.75) Total Utilities 29.75 29.75 0.00 (29.75) Maintenance materials 176.63 725.45 3,000.00 2,274.55 Maintenance contracts 4,458.98 5,673.98 5,000.00 (673.98) Total Maintenance 4,635.61 6,399.43 8,000.00 1,600.57 Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 430.63 898.06 200.00 (698.06) Workmen's compensation 669.88 2,738.03 2,200.00 (538.03) All other insurance 188.87 546.58 1,500.00 953.42 Total Insurance 1,289.38 4,839.67 8,900.00 4,060.33 Protective services - other contract costs 235.85 321.57 0.00 (321.57) Total Protective Services 235.85 321.57 0.00 (321.57) Housing assistance payments 969,839.00 6,628,956.66 10,104,344.00 3,475,387.34 HAP portability -in 87,147.00 495,085.00 0.00 (495,085.00) Total Housing Assistance Payments 1,056,986.00 7,124,041.66 10,104,344.00 2,980,302.34 Other general expenses 1,702.67 18,240.17 10,000.00 (8,240.17) Total General Expenses 1,702.67 18,240.17 10,000.00 (8,240.17) Total Operating Expenses 1,144,262.00 7,712,941.54 11,300,046.00 3,587,104.46 Operating Income (Loss) 30,752.41 218,412.88 32,989.00 (185,423.88) Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ 30,752.41 $ 201,782.88 $ (11.00) $ (201,793.88 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 7 Months Ended 4/30/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 647,910.00 $ 6,759,878.00 $ 7,407,788.00 Investment income - unrestricted 177.00 0.00 177.00 Fraud recovery 1,146.00 1,146.00 2,292.00 Other revenue 515,797.42 0.00 515,797.42 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 1,170,330.42 6,761,024.00 7,931,354.42 Operating Expenses Administrative salaries 320,056.01 0.00 320,056.01 Advertising and marketing 404.97 0.00 404.97 Employee benefits - administrative 101,285.51 0.00 101,285.51 Office expenses 111,010.01 0.00 111,010.01 Travel 10,063.41 0.00 10,063.41 Other admin. 16,249.38 0.00 16,249.38 Total Administrative 559,069.29 0.00 559,069.29 Electricity 29.75 0.00 29.75 Total Utilities 29.75 0.00 29.75 Maintenance materials 725.45 0.00 725.45 Maintenance contracts 5,673.98 0.00 5,673.98 Total Maintenance 6,399.43 0.00 6,399.43 Property insurance 657.00 0.00 657.00 Liability insurance 898.06 0.00 898.06 Workmen's compensation 2,738.03 0.00 2,738.03 All other insurance 546.58 0.00 546.58 Total Insurance 4,839.67 0.00 4,839.67 Protective services - other contract costs 321.57 0.00 321.57 Total Protective Services 321.57 0.00 321.57 Housing assistance payments 0.00 6,628,956.66 6,628,956.66 HAP portability -in 495,085.00 0.00 495,085.00 Total Housing Assistance Payments 495,085.00 6,628,956.66 7,124,041.66 Other general expenses 18,240.17 0.00 18,240.17 Total General Expenses 18,240.17 0.00 18,240.17 Total Operating Expenses 1,083,984.88 6,628,956.66 7,712,941.54 Operating Income (Loss) 86,345.54 132,067.34 218,412.88 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 69,715.54 $ 132,067.34 $ 201,782.88 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of April 30, 2017 Assets Current Assets Cash -unrestricted $ 655,396.69 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Inventories (net) 986.65 Inter program - due from 77,576.38 Total Current Assets 1,143,780.95 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,783,067.87 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 $ 1,397.76 1,397.76 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 (11,540.58) 2,780,148.69 $ 2,783,067.87 Denton Housing Authority Income Statement - Management Fund 1 Month and 7 Months Ended 4/30/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 5,195.19 $ 35,296.75 $ 63,399.00 $ 28,102.25 Investment income - unrestricted 20.63 261.89 300.00 38.11 Other revenue 40,300.00 196,160.00 1,424,600.00 1,228,440.00 Total Operating Revenues 45,515.82 231,718.64 1,488,299.00 1,256,580.36 Operating Expenses Administrative salaries 11,270.10 72,082.08 217,231.00 145,148.92 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 3,349.36 17,691.10 55,812.00 38,120.90 Office expenses 1,514.54 11,380.44 30,500.00 19,119.56 Legal expenses 0.00 2,853.50 50,000.00 47,146.50 Travel 736.22 8,005.52 10,000.00 1,994.48 Other admin. 7,812.39 52,237.75 96,260.00 44,022.25 Total Administrative 24,682.61 164,347.06 461,163.00 296,815.94 Water 130.59 2,859.01 5,000.00 2,140.99 Electricity 1,641.60 9,447.42 17,000.00 7,552.58 Sewer 122.25 1,007.76 2,000.00 992.24 Total Utilities 1,894.44 13,314.19 24,000.00 10,685.81 Maintenance labor 2,548.03 18,765.72 38,164.00 19,398.28 Maintenance materials 124.98 5,176.33 8,000.00 2,823.67 Maintenance contracts 1,378.32 13,539.14 38,600.00 25,060.86 Employee benefits - maintenance 641.40 4,372.59 6,324.00 1,951.41 Total Maintenance 4,692.73 41,853.78 91,088.00 49,234.22 Property insurance 955.64 4,315.81 2,700.00 (1,615.81) Liability insurance 327.16 786.90 100.00 (686.90) Workmen's compensation 635.47 2,592.94 1,000.00 (1,592.94) All other insurance 140.42 893.54 900.00 6.46 Total Insurance 2,058.69 8,589.19 4,700.00 (3,889.19) Protective services - other contract costs 285.57 3,044.78 5,500.00 2,455.22 Total Protective Services 285.57 3,044.78 5,500.00 2,455.22 Other general expenses 0.00 417.00 5,000.00 4,583.00 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 0.00 2,529.43 9,800.00 7,270.57 Total Operating Expenses 33,614.04 233,678.43 596,251.00 362,572.57 Operating Income (Loss) 11,901.78 (1,959.79) 892,048.00 894,007.79 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 0.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ 11,901.78 $ (11,540.58) $ 812,048.00 $ 823,588.58 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of April 30, 2017 Assets Current Assets Cash -unrestricted $ 953,839.46 Accounts receivable - tenants (net) 975.60 Inventories (net) 6,591.61 Total Current Assets 961,406.67 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 2,023,797.14 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,450.00 Inter program - due to 5,623.42 Total Current Liabilities 33,330.75 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 39,166.73 1,059,290.47 869,479.41 3,100.00 52,760.53 1,984,630.41 $ 2,023,797.14 Operating Revenues Net tenant rental revenue Tenant revenue - other Investment income - unrestricted Other revenue Total Operating Revenues Operating Expenses Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 7 Months Ended 4/30/2017 Current Month $ 61,686.00 130.00 356.38 1,949.34 64,121.72 Year to Date $ 426,914.00 1,349.75 1,837.50 4,151.79 434,253.04 Budget $ 722,190.00 1,500.00 1,500.00 2,500.00 727,690.00 Variance $ 295,276.00 150.25 (337.50) (1,651.79) 293,436.96 Administrative salaries 10,463.80 62,083.18 137,250.00 75,166.82 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 4,301.57 29,607.29 53,599.00 23,991.71 Advertising and marketing 0.00 297.84 0.00 (297.84) Employee benefits - administrative 3,098.27 19,171.41 58,650.00 39,478.59 Office expenses 1,744.78 8,619.95 26,500.00 17,880.05 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 90.80 1,021.42 7,000.00 5,978.58 Other admin. 172.50 2,364.67 14,300.00 11,935.33 Total Administrative 19,871.72 123,165.76 300,849.00 177,683.24 Tenant services - other Total Tenant Services Water Electricity Gas Sewer Total Utilities Maintenance labor Maintenance materials Maintenance contracts Employee benefits - maintenance Total Maintenance Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items 468.16 468.16 378.13 2,417.92 385.66 9,328.79 11,416.53 17,549.18 3,776.35 42,070.85 3,048.68 86.22 1,522.61 204.96 4,862.47 71,676.92 (7,555.20) 3,035.35 3,035.35 5,911.28 7,180.00 2,976.26 8,507.80 24,575.34 67,912.85 39,394.79 81,694.56 23,950.80 212,953.00 7,229.77 229.13 4,570.95 670.41 12,700.26 1,962.80 1,962.80 378,392.51 55,860.53 0.00 0.00 0.00 3,100.00 0.00 3,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 6,000.00 6,000.00 15,000.00 15,000.00 6,000.00 21,000.00 57,000.00 145,455.00 52,000.00 115,500.00 67,931.00 380,886.00 7,350.00 300.00 3,500.00 2,300.00 13,450.00 2,600.00 2,600.00 760,785.00 (33,095.00) 5,000.00 101,000.00 106,000.00 2,964.65 2,964.65 9,088.72 7,820.00 3,023.74 12,492.20 32.424.66 77,542.15 12,605.21 33,805.44 43.980.20 167.933.00 120.23 70.87 (1,070.95) 1,629.59 749.74 637.20 637.20 382,392.49 (88,955.53) 5,000.00 97,900.00 102,900.00 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 7 Months Ended 4/30/2017 Current Month Year to Date $ (7,555.20) $ 52,760.53 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (191,855.53) Denton Housing Authority Balance Sheet - Disaster Funds As of April 30, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 7 Months Ended 4/30/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of April 30, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 7 Months Ended 4/30/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of April 30, 2017 Assets Current Assets Cash -unrestricted $ 9,825.02 Accounts receivable - tenants (net) (179.00) Inventories (net) 999.73 Total Current Assets 10,645.75 Property and Equipment Land 159,009.13 Buildings 2,362,007.61 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 867,050.20 Total Assets $ 877,695.95 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 4,050.00 Inter program - due to 82,644.63 Total Current Liabilities 87,588.34 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 88,495.90 853,183.21 (41,555.82) 13,866.99 (36,294.33) 789,200.05 $ 877,695.95 Denton Housing Authority Income Statement - Pecan Place 1 Month and 7 Months Ended 4/30/2017 Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 13,645.90 106,222.01 (879.30) (22,427.34) 0.00 0.00 0.00 13,866.99 0.00 13,866.99 $ (879.30) $ (36,294.33) Urlaub & Co., PLLC See Accountant's Compilation Report 22 136,996.00 20,269.00 3,000.00 20,000.00 23,000.00 $ (2,731.00) 30,773.99 42,696.34 3,000.00 6,133.01 9,133.01 $ 33,563.33 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 12,766.00 $ 80,748.00 $ 157,055.00 $ 76,307.00 Tenant revenue - other 0.00 42.00 200.00 158.00 Investment income - unrestricted 0.60 4.67 10.00 5.33 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 12,766.60 83,794.67 157,265.00 73,470.33 Operating Expenses Administrative salaries 4,173.03 30,387.11 27,502.00 (2,885.11) Auditing fees 0.00 0.00 340.00 340.00 Management fees 893.62 5,689.46 9,800.00 4,110.54 Advertising and marketing 0.00 5.09 0.00 (5.09) Employee benefits - administrative 1,049.33 6,410.51 4,342.00 (2,068.51) Office expenses 754.97 4,486.42 14,000.00 9,513.58 Legal expenses 0.00 0.00 500.00 500.00 Travel 18.16 223.96 1,400.00 1,176.04 Other admin. 40.50 1,323.26 5,240.00 3,916.74 Total Administrative 6,929.61 48,525.81 63,124.00 14,598.19 Tenant services - other 167.36 1,380.90 1,200.00 (180.90) Total Tenant Services 167.36 1,380.90 1,200.00 (180.90) Water 293.14 1,676.95 3,000.00 1,323.05 Electricity 658.37 4,904.25 7,000.00 2,095.75 Gas 195.84 2,124.38 3,000.00 875.62 Sewer 361.47 1,913.57 3,500.00 1,586.43 Total Utilities 1,508.82 10,619.15 16,500.00 5,880.85 Maintenance labor 1,102.44 8,040.48 17,740.00 9,699.52 Maintenance materials 544.40 8,112.46 7,000.00 (1,112.46) Maintenance contracts 1,376.64 16,077.22 19,500.00 3,422.78 Employee benefits - maintenance 1,011.57 6,866.91 5,482.00 (1,384.91) Total Maintenance 4,035.05 39,097.07 49,722.00 10,624.93 Property insurance 600.43 1,616.23 1,300.00 (316.23) Liability insurance 17.24 56.41 50.00 (6.41) Workmen's compensation 197.54 709.88 800.00 90.12 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 815.21 2,483.13 2,850.00 366.87 Protective services - other contract costs 189.85 4,115.95 3,600.00 (515.95) Total Protective Services 189.85 4,115.95 3,600.00 (515.95) Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 13,645.90 106,222.01 (879.30) (22,427.34) 0.00 0.00 0.00 13,866.99 0.00 13,866.99 $ (879.30) $ (36,294.33) Urlaub & Co., PLLC See Accountant's Compilation Report 22 136,996.00 20,269.00 3,000.00 20,000.00 23,000.00 $ (2,731.00) 30,773.99 42,696.34 3,000.00 6,133.01 9,133.01 $ 33,563.33 Denton Housing Authority FYE 9/30/17 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) 22,921.89 49,469.89 77,68923 131,943.23 156,012.73 156,012.73 156,012.73 156,012.73 156,012.73 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 993,846.00 6,759,878.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1.146.00 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 993.908.50 6.761.024.00 Expenses: HAP Payments 936,926.00 968,761.00 930,242.00 942,584.00 940,912.66 939,692.00 969,839.00 6,628,956.66 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 968,761.00 930242.00 942,584.00 940,912.66 939,692.00 969,839.00 - - - - - 6,628,956.66 Net Income (Loss) (22,826.00) (8,445.50) 30,248.00 26,548.00 28,219.34 54,254.00 24,069.50 - - - - - 132,067.34 Ending HAP Equity 1.119.39 7( .326.11) 22.92189 49.46989 77.68923 131.943.23 156.012.73 156.012.73 156.012.73 156.012.73 156.012.73 156.012.73 156.012.73 136161.11 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596,814.19 610,583.31 662,650.25 605,998.62 612,681.53 612,681.53 612,681.53 612,681.53 612,681.53 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 89,393.00 647,910.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 26.45 177.00 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,353.87 91,623.96 521,097.42 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1,146.00 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,874.36 181,105.91 1,170,330.42 Expens Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 1,083,984.88 Concur with HUD 12/31/1E - - - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 - - - - - 1,083,984.88 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,651.63) 6,682.91 - - - - - 86,345.54 Ending Admin Equity553��3247 579��9461 5%14.19 610��83.31 662��50.25 605��9862 6126��1.53 6126��1.53 612��81.53 6126��1.53 612��81.53 612��81.53 527��58.99 Restricteol 156,012.73 Unrestricted 527,658.99 Investment in Net Capital Assets 99,105.60 Total Equity 782,777.32 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of May 31, 2017, and the related income statement for the 1 Month and 8 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC June 14, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of May 31, 2017 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 711,725.08 $ 653,124.70 $ 962,288.96 $ 0.00 $ 9,765.13 $ 0.00 $ 2,336,903.87 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 119,260.45 0.00 0.00 0.00 0.00 0.00 119,260.45 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 (8,792.40) 0.00 0.00 0.00 (8,792.40) Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 10,858.92 1,136.41 299.05 0.00 59.80 0.00 12,354.18 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 16,434.82 65,666.66 0.00 0.00 0.00 0.00 82,101.48 Total Current Assets 825,099.43 1,130,735.65 960,387.22 81,827.31 10,824.66 0.00 3,008,874.27 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,858,627.68 0.00 2,362,007.61 0.00 8,264,216.16 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,062,390.47 0.00 867,050.20 2,470,000.00 6,159,763.19 Total Assets L_946 135.03 $2,770,022.57 $ 2,022,777.69 $81,827.31 $ 877,874.86 $ 2,470,000.00 $ 9,168,637.46 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of May 31, 2017 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 3,100.00 0.00 Fund 0.00 43,177.78 Net income (loss) 239,186.10 Current Liabilities 60,540.17 0.00 (35,825.15) 0.00 239,315.24 Accrued wage/payroll taxes payable $ 3,731.63 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 3,731.63 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 22,050.00 0.00 4,050.00 0.00 26,100.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to 3,522.79 0.00 (3,775.67) 0.00 82,354.36 0.00 82,101.48 Total Current Liabilities 28,568.28 1,397.76 24,531.66 0.00 87,298.07 2,458,564.81 2,600,360.58 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 40,931.95 2,919.18 30,367.64 0.00 88,205.63 2,458,564.81 2,620,989.21 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 9,580.79 3,100.00 0.00 13,866.99 0.00 43,177.78 Net income (loss) 239,186.10 (24,585.88) 60,540.17 0.00 (35,825.15) 0.00 239,315.24 Total Net Position 905,203.08 2,767,103.39 1,992,410.05 81,827.31 789,669.23 11,435.19 6,547,648.25 Total Liabilities and Net Position $ 946,135.03 $ 2,770,022.57 $2,022,777.69 $ 81,827.31 $ 877,874.86 $ 2,470,000.00 $ 9,168,637.46 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 8 Months Ended 5/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 489,498.00 $ 0.00 $ 94,008.00 $ 0.00 $ 583,506.00 Tenant revenue - other 0.00 0.00 1,494.75 0.00 49.00 0.00 1,543.75 HUD PHA operating grants 8,491,549.00 0.00 0.00 0.00 0.00 0.00 8,491,549.00 Management fees 0.00 40,621.51 0.00 0.00 0.00 0.00 40,621.51 Investment income - unrestricted 206.23 463.34 2,239.98 0.00 5.16 0.00 2,914.71 Fraud recovery 2,292.00 0.00 0.00 0.00 0.00 0.00 2,292.00 Other revenue 616,170.57 210,960.00 5,021.78 0.00 3,000.00 0.00 835,152.35 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 9,115,517.80 252,044.85 498,254.51 0.00 97,062.16 0.00 9,962,879.32 Operating Expenses Administrative salaries 365,496.13 82,484.48 72,264.14 0.00 34,477.40 0.00 554,722.15 Management fees 0.00 0.00 34,003.85 0.00 6,617.66 0.00 40,621.51 Advertising and marketing 661.32 96.67 347.84 0.00 55.09 0.00 1,160.92 Employee benefits - administrative 118,634.26 21,201.75 23,790.07 0.00 7,390.77 0.00 171,016.85 Office expenses 126,766.23 12,731.67 9,964.09 0.00 5,055.68 0.00 154,517.67 Legal expenses 0.00 2,853.50 0.00 0.00 0.00 0.00 2,853.50 Travel 10,423.96 9,262.77 1,128.15 0.00 237.26 0.00 21,052.14 Other admin. 20,569.51 61,702.51 2,990.22 0.00 1,439.57 0.00 86,701.81 Total Administrative 642,551.41 190,333.35 144,488.36 0.00 55,273.43 0.00 1,032,646.55 Tenant services - other 0.00 0.00 3,035.35 0.00 1,507.25 0.00 4,542.60 Total Tenant Services 0.00 0.00 3,035.35 0.00 1,507.25 0.00 4,542.60 Water 0.00 2,990.05 6,986.50 0.00 1,962.08 0.00 11,938.63 Electricity 0.00 10,919.97 8,155.09 0.00 5,650.54 0.00 24,725.60 Gas 0.00 0.00 3,279.78 0.00 2,299.47 0.00 5,579.25 Sewer 0.00 1,177.08 10,014.75 0.00 2,231.79 0.00 13,423.62 Total Utilities 0.00 15,087.10 28,436.12 0.00 12,143.88 0.00 55,667.10 Maintenance labor 0.00 21,292.29 77,040.74 0.00 9,128.61 0.00 107,461.64 Maintenance materials 990.72 5,676.42 45,369.30 0.00 8,428.54 0.00 60,464.98 Maintenance contracts 5,713.98 15,004.96 91,889.58 0.00 17,944.05 0.00 130,552.57 Employee benefits - maintenance 0.00 4,963.69 27,388.83 0.00 7,786.63 0.00 40,139.15 Total Maintenance 6,704.70 46,937.36 241,688.45 0.00 43,287.83 0.00 338,618.34 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Payments in lieu of taxes Bad debt - tenant rents Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 8 Months Ended 5/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 4,315.81 7,229.77 0.00 1,616.23 0.00 13,818.81 0.00 898.06 786.90 229.13 0.00 56.41 0.00 1,970.50 9,580.79 2,738.03 2,592.94 4,570.95 0.00 709.88 0.00 10,611.80 $ 546.58 893.54 670.41 0.00 100.61 0.00 2,211.14 4,839.67 8,589.19 12,700.26 0.00 2,483.13 0.00 28,612.25 321.57 3,529.79 1,962.80 0.00 4,305.80 0.00 10,119.96 321.57 3,529.79 1,962.80 0.00 4,305.80 0.00 10,119.96 28,282.69 460.72 0.00 0.00 0.00 0.00 28,743.41 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 0.00 0.00 2,303.00 0.00 19.00 0.00 2,322.00 28,282.69 2,573.15 2,303.00 0.00 19.00 0.00 33,177.84 7,585,426.66 0.00 0.00 0.00 0.00 0.00 7,585,426.66 591,575.00 0.00 0.00 0.00 0.00 0.00 591,575.00 8,177,001.66 0.00 0.00 0.00 0.00 0.00 8,177,001.66 8,859,701.70 267,049.94 434,614.34 0.00 119,020.32 0.00 9,680,386.30 255,816.10 (15,005.09) 63,640.17 0.00 (21,958.16) 0.00 282,493.02 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 9,580.79 3,100.00 0.00 13,866.99 0.00 26,547.78 16,630.00 9,580.79 3,100.00 0.00 13,866.99 0.00 43,177.78 $ 239,186.10 1 (24,585.88) $60,540.17 $ 0.00 $ (35,825.15) $ 0.00 $ 239,315.24 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of May 31, 2017 Assets Current Assets Cash -unrestricted $ 711,725.08 Accounts receivable - PHA projects 119,260.45 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 10,858.92 Inter program - due from 16,434.82 Total Current Assets 825,099.43 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 946,135.03 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 3,731.63 19,844.86 1,469.00 3,522.79 28,568.28 12,363.67 12,363.67 40,931.95 99,105.60 526,335.99 23,945.39 16,630.00 239,186.10 905,203.08 $ 946,135.03 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 5/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 89,915.00 $ 993,846.00 $ 1,083,761.00 Investment income - unrestricted 29.23 0.00 29.23 Other revenue 100,373.15 0.00 100,373.15 Total Operating Revenues 190,317.38 993,846.00 1,184,163.38 Operating Expenses Administrative salaries 45,440.12 0.00 45,440.12 Advertising and marketing 256.35 0.00 256.35 Employee benefits - administrative 17,348.75 0.00 17,348.75 Office expenses 15,756.22 0.00 15,756.22 Travel 360.55 0.00 360.55 Other admin. 4,320.13 0.00 4,320.13 Total Administrative 83,482.12 0.00 83,482.12 Electricity (29.75) 0.00 (29.75) Total Utilities (29.75) 0.00 (29.75) Maintenance materials 265.27 0.00 265.27 Maintenance contracts 40.00 0.00 40.00 Total Maintenance 305.27 0.00 305.27 Housing assistance payments 0.00 956,470.00 956,470.00 HAP portability -in 96,490.00 0.00 96,490.00 Total Housing Assistance Payments 96,490.00 956,470.00 1,052,960.00 Other general expenses 10,042.52 0.00 10,042.52 Total General Expenses 10,042.52 0.00 10,042.52 Total Operating Expenses 190,290.16 956,470.00 1,146,760.16 Operating Income (Loss) 27.22 37,376.00 37,403.22 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 27.22 $ 37,376.00 $ 37,403.22 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 365,496.13 634,178.00 268,681.87 1 Month and 8 Months Ended 5/31/2017 0.00 0.00 12,750.00 Current Year to Advertising and marketing 256.35 661.32 Month Date Budget Variance Operating Revenues 118,634.26 256,179.00 137,544.74 HUD PHA operating grants $ 1,083,761.00 $ 8,491,549.00 $ 11,320,235.00 $ 2,828,686.00 Investment income - unrestricted 29.23 206.23 800.00 593.77 Fraud recovery 0.00 2,292.00 2,000.00 (292.00) Other revenue 100,373.15 616,170.57 10,000.00 (606,170.57) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,184,163.38 9,115,517.80 11,333,035.00 2,217,517.20 Operating Expenses Administrative salaries 45,440.12 365,496.13 634,178.00 268,681.87 Auditing fees 0.00 0.00 12,750.00 12,750.00 Advertising and marketing 256.35 661.32 500.00 (161.32) Employee benefits - administrative 17,348.75 118,634.26 256,179.00 137,544.74 Office expenses 15,756.22 126,766.23 202,000.00 75,233.77 Travel 360.55 10,423.96 17,000.00 6,576.04 Other admin. 4,320.13 20,569.51 46,195.00 25,625.49 Total Administrative 83,482.12 642,551.41 1,168,802.00 526,250.59 Electricity (29.75) 0.00 0.00 0.00 Total Utilities (29.75) 0.00 0.00 0.00 Maintenance materials 265.27 990.72 3,000.00 2,009.28 Maintenance contracts 40.00 5,713.98 5,000.00 (713.98) Total Maintenance 305.27 6,704.70 8,000.00 1,295.30 Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 0.00 898.06 200.00 (698.06) Workmen's compensation 0.00 2,738.03 2,200.00 (538.03) All other insurance 0.00 546.58 1,500.00 953.42 Total Insurance 0.00 4,839.67 8,900.00 4,060.33 Protective services - other contract costs 321.57 0.00 (321.57) Total Protective Services 321.57 0.00 (321.57) Housing assistance payments 956,470.00 7,585,426.66 10,104,344.00 2,518,917.34 HAP portability -in 96,490.00 591,575.00 0.00 (591,575.00) Total Housing Assistance Payments 1,052,960.00 8,177,001.66 10,104,344.00 1,927,342.34 Other general expenses 10,042.52 28,282.69 10,000.00 (18,282.69) Total General Expenses 10,042.52 28,282.69 10,000.00 (18,282.69) Total Operating Expenses 1,146,760.16 8,859,701.70 11,300,046.00 2,440,344.30 Operating Income (Loss) 37,403.22 255,816.10 32,989.00 (222,827.10) Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ 37,403.22 $ 239,186.10 $ (11.00) $ (239,197.10 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 8 Months Ended 5/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 737,825.00 $ 7,753,724.00 $ 8,491,549.00 Investment income - unrestricted 206.23 0.00 206.23 Fraud recovery 1,146.00 1,146.00 2,292.00 Other revenue 616,170.57 0.00 616,170.57 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 1,360,647.80 7,754,870.00 9,115,517.80 Operating Expenses Administrative salaries 365,496.13 0.00 365,496.13 Advertising and marketing 661.32 0.00 661.32 Employee benefits - administrative 118,634.26 0.00 118,634.26 Office expenses 126,766.23 0.00 126,766.23 Travel 10,423.96 0.00 10,423.96 Other admin. 20,569.51 0.00 20,569.51 Total Administrative 642,551.41 0.00 642,551.41 Maintenance materials 990.72 0.00 990.72 Maintenance contracts 5,713.98 0.00 5,713.98 Total Maintenance 6,704.70 0.00 6,704.70 Property insurance 657.00 0.00 657.00 Liability insurance 898.06 0.00 898.06 Workmen's compensation 2,738.03 0.00 2,738.03 All other insurance 546.58 0.00 546.58 Total Insurance 4,839.67 0.00 4,839.67 Protective services - other contract costs 321.57 0.00 321.57 Total Protective Services 321.57 0.00 321.57 Housing assistance payments 0.00 7,585,426.66 7,585,426.66 HAP portability -in 591,575.00 0.00 591,575.00 Total Housing Assistance Payments 591,575.00 7,585,426.66 8,177,001.66 Other general expenses 28,282.69 0.00 28,282.69 Total General Expenses 28,282.69 0.00 28,282.69 Total Operating Expenses 1,274,275.04 7,585,426.66 8,859,701.70 Operating Income (Loss) 86,372.76 169,443.34 255,816.10 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 69,742.76 $ 169,443.34 $ 239,186.10 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of May 31, 2017 Assets Current Assets 509,949.32 Cash -unrestricted $ 653,124.70 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 1,136.41 Inventories (net) 986.65 Inter program - due from 65,666.66 Total Current Assets 1,130,735.65 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,770,022.57 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 (24,585.88) 2,767,103.39 $ 2,770,022.57 Denton Housing Authority Income Statement - Management Fund 1 Month and 8 Months Ended 5/31/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 5,324.76 $ 40,621.51 $ 63,399.00 $ 22,777.49 Investment income - unrestricted 201.45 463.34 300.00 (163.34) Other revenue 14,800.00 210,960.00 1,424,600.00 1,213,640.00 Total Operating Revenues 20,326.21 252,044.85 1,488,299.00 1,236,254.15 Operating Expenses Administrative salaries 10,402.40 82,484.48 217,231.00 134,746.52 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 3,510.65 21,201.75 55,812.00 34,610.25 Office expenses 1,351.23 12,731.67 30,500.00 17,768.33 Legal expenses 0.00 2,853.50 50,000.00 47,146.50 Travel 1,257.25 9,262.77 10,000.00 737.23 Other admin. 9,464.76 61,702.51 96,260.00 34,557.49 Total Administrative 25,986.29 190,333.35 461,163.00 270,829.65 Water 131.04 2,990.05 5,000.00 2,009.95 Electricity 1,472.55 10,919.97 17,000.00 6,080.03 Sewer 169.32 1,177.08 2,000.00 822.92 Total Utilities 1,772.91 15,087.10 24,000.00 8,912.90 Maintenance labor 2,526.57 21,292.29 38,164.00 16,871.71 Maintenance materials 500.09 5,676.42 8,000.00 2,323.58 Maintenance contracts 1,465.82 15,004.96 38,600.00 23,595.04 Employee benefits - maintenance 591.10 4,963.69 6,324.00 1,360.31 Total Maintenance 5,083.58 46,937.36 91,088.00 44,150.64 Property insurance 0.00 4,315.81 2,700.00 (1,615.81) Liability insurance 0.00 786.90 100.00 (686.90) Workmen's compensation 0.00 2,592.94 1,000.00 (1,592.94) All other insurance 0.00 893.54 900.00 6.46 Total Insurance 0.00 8,589.19 4,700.00 (3,889.19) Protective services - other contract costs 485.01 3,529.79 5,500.00 1,970.21 Total Protective Services 485.01 3,529.79 5,500.00 1,970.21 Other general expenses 43.72 460.72 5,000.00 4,539.28 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 43.72 2,573.15 9,800.00 7,226.85 Total Operating Expenses 33,371.51 267,049.94 596,251.00 329,201.06 Operating Income (Loss) (13,045.30) (15,005.09) 892,048.00 907,053.09 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 0.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ (13,045.30) $ (24,585.88) $ 812,048.00 $ 836,633.88 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of May 31, 2017 Assets Current Assets Cash -unrestricted $ 962,288.96 Accounts receivable - tenants (net) (8,792.40) Prepaid expenses and other assets 299.05 Inventories (net) 6,591.61 Total Current Assets 960,387.22 Property and Equipment Land 334,002.00 Buildings 3,858,627.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,062,390.47 Total Assets $ 2,022,777.69 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 22,050.00 Inter program - due to (3,775.67) Total Current Liabilities 24,531.66 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 30,367.64 1,059,290.47 869,479.41 3,100.00 60,540.17 1,992,410.05 $ 2,022,777.69 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 8 Months Ended 5/31/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 62,584.00 $ 489,498.00 $ 722,190.00 $ 232,692.00 Tenant revenue - other 145.00 1,494.75 1,500.00 5.25 Investment income - unrestricted 402.48 2,239.98 1,500.00 (739.98) Other revenue 869.99 5,021.78 2,500.00 (2,521.78) Total Operating Revenues 64,001.47 498,254.51 727,690.00 229,435.49 Operating Expenses Administrative salaries 10,180.96 72,264.14 137,250.00 64,985.86 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 4,396.56 34,003.85 53,599.00 19,595.15 Advertising and marketing 50.00 347.84 0.00 (347.84) Employee benefits - administrative 4,618.66 23,790.07 58,650.00 34,859.93 Office expenses 1,344.14 9,964.09 26,500.00 16,535.91 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 106.73 1,128.15 7,000.00 5,871.85 Other admin. 625.55 2,990.22 14,300.00 11,309.78 Total Administrative 21,322.60 144,488.36 300,849.00 156,360.64 Tenant services - other 0.00 3,035.35 6,000.00 2,964.65 Total Tenant Services 0.00 3,035.35 6,000.00 2,964.65 Water 1,075.22 6,986.50 15,000.00 8,013.50 Electricity 975.09 8,155.09 15,000.00 6,844.91 Gas 303.52 3,279.78 6,000.00 2,720.22 Sewer 1,506.95 10,014.75 21,000.00 10,985.25 Total Utilities 3,860.78 28,436.12 57,000.00 28,563.88 Maintenance labor 9,127.89 77,040.74 145,455.00 68,414.26 Maintenance materials 5,974.51 45,369.30 52,000.00 6,630.70 Maintenance contracts 10,195.02 91,889.58 115,500.00 23,610.42 Employee benefits - maintenance 3,438.03 27,388.83 67,931.00 40,542.17 Total Maintenance 28,735.45 241,688.45 380,886.00 139,197.55 Property insurance 0.00 7,229.77 7,350.00 120.23 Liability insurance 0.00 229.13 300.00 70.87 Workmen's compensation 0.00 4,570.95 3,500.00 (1,070.95) All other insurance 0.00 670.41 2,300.00 1,629.59 Total Insurance 0.00 12,700.26 13,450.00 749.74 Protective services - other contract costs 0.00 1,962.80 2,600.00 637.20 Total Protective Services 0.00 1,962.80 2,600.00 637.20 Bad debt - tenant rents 2,303.00 2,303.00 0.00 (2,303.00) Total General Expenses 2,303.00 2,303.00 0.00 (2,303.00) Total Operating Expenses 56,221.83 434,614.34 760,785.00 326,170.66 Operating Income (Loss) 7,779.64 63,640.17 (33,095.00) (96,735.17) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 0.00 3,100.00 101,000.00 97,900.00 Total Other Financial Items 0.00 3,100.00 106,000.00 102,900.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 8 Months Ended 5/31/2017 Current Month Year to Date $ 7,779.64 $ 60,540.17 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (199,635.17) Denton Housing Authority Balance Sheet - Disaster Funds As of May 31, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 8 Months Ended 5/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of May 31, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 8 Months Ended 5/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of May 31, 2017 Assets Current Assets Cash -unrestricted $ 9,765.13 Prepaid expenses and other assets 59.80 Inventories (net) 999.73 Total Current Assets 10,824.66 Property and Equipment Land 159,009.13 Buildings 2,362,007.61 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 867,050.20 Total Assets $ 877,874.86 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 4,050.00 Inter program - due to 82,354.36 Total Current Liabilities 87,298.07 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 88,205.63 853,183.21 (41,555.82) 13,866.99 (35,825.15) 789,669.23 $ 877,874.86 Denton Housing Authority Income Statement - Pecan Place 1 Month and 8 Months Ended 5/31/2017 Other Financial Items Current Month Year to Date Budget Variance Operating Revenues 3,000.00 3,000.00 Property betterments & additions 0.00 13,866.99 Net tenant rental revenue $ 13,260.00 $ 94,008.00 $ 157,055.00 $ 63,047.00 Tenant revenue - other 7.00 49.00 200.00 151.00 Investment income - unrestricted 0.49 5.16 10.00 4.84 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 13,267.49 97,062.16 157,265.00 60,202.84 Operating Expenses Administrative salaries 4,090.29 34,477.40 27,502.00 (6,975.40) Auditing fees 0.00 0.00 340.00 340.00 Management fees 928.20 6,617.66 9,800.00 3,182.34 Advertising and marketing 50.00 55.09 0.00 (55.09) Employee benefits - administrative 980.26 7,390.77 4,342.00 (3,048.77) Office expenses 569.26 5,055.68 14,000.00 8,944.32 Legal expenses 0.00 0.00 500.00 500.00 Travel 13.30 237.26 1,400.00 1,162.74 Other admin. 116.31 1,439.57 5,240.00 3,800.43 Total Administrative 6,747.62 55,273.43 63,124.00 7,850.57 Tenant services - other 126.35 1,507.25 1,200.00 (307.25) Total Tenant Services 126.35 1,507.25 1,200.00 (307.25) Water 285.13 1,962.08 3,000.00 1,037.92 Electricity 746.29 5,650.54 7,000.00 1,349.46 Gas 175.09 2,299.47 3,000.00 700.53 Sewer 318.22 2,231.79 3,500.00 1,268.21 Total Utilities 1,524.73 12,143.88 16,500.00 4,356.12 Maintenance labor 1,088.13 9,128.61 17,740.00 8,611.39 Maintenance materials 316.08 8,428.54 7,000.00 (1,428.54) Maintenance contracts 1,866.83 17,944.05 19,500.00 1,555.95 Employee benefits - maintenance 919.72 7,786.63 5,482.00 (2,304.63) Total Maintenance 4,190.76 43,287.83 49,722.00 6,434.17 Property insurance 0.00 1,616.23 1,300.00 (316.23) Liability insurance 0.00 56.41 50.00 (6.41) Workmen's compensation 0.00 709.88 800.00 90.12 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 0.00 2,483.13 2,850.00 366.87 Protective services - other contract costs 189.85 4,305.80 3,600.00 (705.80) Total Protective Services 189.85 4,305.80 3,600.00 (705.80) Bad debt - tenant rents 19.00 19.00 0.00 (19.00) Total General Expenses 19.00 19.00 0.00 (19.00) Total Operating Expenses 12,798.31 119,020.32 136,996.00 17,975.68 Operating Income (Loss) 469.18 (21,958.16) 20,269.00 42,227.16 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 13,866.99 20,000.00 6,133.01 Total Other Financial Items 0.00 13,866.99 23,000.00 9,133.01 Net Income (Loss) $ 469.18 $ (35,825.15) $ (2,731.00) $ 33,094.15 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority FYE 9/30/17 October November December January February March April May June July August September Total Beginning HAP Equity 23,945.39 1,119.39 (7,326.11) 22,921.89 49,469.89 77,68923 131,943.23 156,012.73 193,388.73 193,388.73 193,388.73 193,388.73 23,945.39 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 993,846.00 993,846.00 7,753,724.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1.146.00 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 993.908.50 993.846.00 7.754.870.00 Expenses: HAP Payments 936,926.00 968,761.00 930,242.00 942,584.00 940,912.66 939,692.00 969,839.00 956,470.00 7,585,426.66 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 936,926.00 968,761.00 930242.00 942,584.00 940,912.66 939,692.00 969,839.00 956,470.00 - - - - 7,585,426.66 Net Income (Loss) (22,826.00) (8,445.50) 30,248.00 26,548.00 28,219.34 54,254.00 24,069.50 37,376.00 - - - - 169,443.34 Ending HAP Equity 1.119.39 7( .326.11) 22.92189 49.46989 77.68923 131.943.23 156.012.73 193.388.73 193.388.73 193.388.73 193.388.73 193.388.73 193.388.73 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596814.19 610,583.31 662,650.25 605,998.62 612,681.53 612,708.75 612,708.75 612,708.75 612,708.75 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 89,393.00 89,915.00 737,825.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 26.45 29.23 206.23 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,353.87 91,623.96 100,373.15 621,470.57 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1,146.00 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,874.36 181,105.91 190,317.38 1,360,647.80 Expenses: Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190,290.16 1,274,275.04 Concur with HUD 12/31/1E - - - - - Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190290.16 - - - - 1274275.04 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,651.63) 6,682.91 27.22 - - - - 86,372.76 Ending Admin Equity 55LILd7 579�� 596��14.19 610�" 662�� 605��9862 6126��1.53alazL8.75 612�I08.75 6127��8.75 612�I08.75 61��708.75 527��88.22 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $922,522 based on budgeted funding. This represents 100% of HUD funding. 102% Denton Housing Authority $ 635.59 Section 8 Utilization Report 97% For the Year Ended December 31, 2017 102% 102% Annual Budget Authority Estimated 11,074,267 11,070,267 HUD -held Program Reserve 232,575 - PHA -held NRA Balance 22,922 Administrative Fee Reserve $ 634.57 Total Funding Available 11,325,764 11,070,267 Baseline Units 1525' % of Year to Monthly HAP payments target is $922,522 based on budgeted funding. This represents 100% of HUD funding. 102% 102% $ 635.59 $ 635.59 97% 97% 102% 102% $ 634.04 $ 634.82 97% 97% 102% 102% $ 634.07 $ 634.57 97% 97% 105% 103% $ 650.90 $ 638.66 98% 97% 104% 103% $ 653.77 $ 641.65 96% 97% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $922,522 Colors are in 5% increments Outside edge is>= 25% variance Denton Housing Authority FYE 9/30/17 VMS Equity October November December January February March April May June July August September Total Beginning HAP Equity 36,219.18 26,055.10 6,340.40 35,081.40 47,326.40 68,054.74 142,386.74 163,521.24 200,897.24 200,897.24 200,897.24 200,897.24 36,219.18 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 993,846.00 993,846.00 7,753,724.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1.146.00 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 993.908.50 993.846.00 7.754.870.00 Expenses: HAP Payments 924,264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 7,590,191.94 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 924264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 - - - - 7,590,191.94 Net Income (Loss) (10,164.08) (19,714.70) 28,741.00 12,245.00 20,728.34 74,332.00 21,134.50 37,376.00 - - - - 164,678.06 Ending HAP Equity 26.055.10 6.34040 35.08140 47.32640 68,05474 142.386.74 163.521.24 200.897.24 200.897.24 200.897.24 200.897.24 200.897.24 200.897.24 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596814.19 610,583.31 662,650.25 605,998.62 612,681.53 612,708.75 612,708.75 612,708.75 612,708.75 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 89,393.00 89,915.00 737,825.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 26.45 29.23 206.23 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,353.87 91,623.96 100,373.15 621,470.57 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1,146.00 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,874.36 181,105.91 190,317.38 1,360,647.80 Expenses: Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190,290.16 1,274,275.04 Concur with HUD 12/31/19 Depreciation Expense Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190290.16 - - - - 1274275.04 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,651.63) 6,682.91 27.22 - - - - 86,372.76 Ending Admin Equity 55LILd7 579�� 596��14.19 610�" 662�� 605��9862 6126��1.53LlazL8.75 612�I08.75 6127��8.75 612�I08.75 61��708.75 52��688.22 rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of June 30, 2017, and the related income statement for the 1 Month and 9 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC July 13, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of .lune 30, 2017 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 778,485.60 $ 726,863.52 $ 958,089.73 $ 0.00 $ 7,702.04 $ 0.00 $ 2,471,140.89 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 107,493.37 0.00 0.00 0.00 0.00 0.00 107,493.37 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 (2,587.90) 0.00 113.00 0.00 (2,474.90) Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 9,507.90 1,022.77 269.14 0.00 53.82 0.00 10,853.63 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from 16,092.93 77,281.60 0.00 0.00 0.00 0.00 93,374.53 Total Current Assets 878,399.96 1,215,975.77 962,362.58 81,827.31 8,868.59 0.00 3,147,434.21 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,862,027.68 0.00 2,365,407.61 0.00 8,271,016.16 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,065,790.47 0.00 870,450.20 2,470,000.00 6,166,563.19 Total Assets L_929 435.56 $ 2,855,262.69 $ 2,028,153.05 L_81 827.31 $ 879,318.79 $ 2,470,000.00 L_212 997.40 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of .lune 30, 2017 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 6,500.00 0.00 Fund 0.00 49,977.78 Net income (loss) 283,558.08 Current Liabilities 64,092.16 0.00 (39,360.12) 0.00 368,944.36 Accrued wage/payroll taxes payable $ 1,989.40 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 1,989.40 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,450.00 0.00 4,050.00 0.00 25,500.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to 14,193.57 0.00 (4,752.30) 0.00 83,933.26 0.00 93,374.53 Total Current Liabilities 37,496.83 1,397.76 22,955.03 0.00 88,876.97 2,458,564.81 2,609,291.40 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 49,860.50 2,919.18 28,791.01 0.00 89,784.53 2,458,564.81 2,629,920.03 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 9,580.79 6,500.00 0.00 17,266.99 0.00 49,977.78 Net income (loss) 283,558.08 60,654.24 64,092.16 0.00 (39,360.12) 0.00 368,944.36 Total Net Position 949,575.06 2,852,343.51 1,999,362.04 81,827.31 789,534.26 11,435.19 6,684,077.37 Total Liabilities and Net Position $ 999,435.56 $ 2,855,262.69 $2,028,153.05 $ 81,827.31 $ 879,318.79 $ 2,470,000.00 $ 9,313,997.40 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 9 Months Ended 6/30/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 551,863.00 $ 0.00 $ 107,496.00 $ 0.00 $ 659,359.00 Tenant revenue - other 0.00 0.00 2,598.75 0.00 49.00 0.00 2,647.75 HUD PHA operating grants 9,569,600.00 0.00 0.00 0.00 0.00 0.00 9,569,600.00 Management fees 0.00 45,206.79 0.00 0.00 0.00 0.00 45,206.79 Investment income - unrestricted 235.77 489.27 2,331.76 0.00 6.04 0.00 3,062.84 Fraud recovery 2,292.00 0.00 0.00 0.00 0.00 0.00 2,292.00 Other revenue 711,280.56 329,260.00 5,123.18 0.00 3,000.00 0.00 1,048,663.74 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 10,288,708.33 374,956.06 561,916.69 0.00 110,551.04 0.00 11,336,132.12 Operating Expenses Administrative salaries 406,440.61 92,988.21 82,292.81 0.00 38,518.71 0.00 620,240.34 Management fees 0.00 0.00 37,644.97 0.00 7,561.82 0.00 45,206.79 Advertising and marketing 721.22 96.67 367.14 0.00 55.09 0.00 1,240.12 Employee benefits - administrative 137,114.44 24,557.27 28,290.60 0.00 8,508.13 0.00 198,470.44 Office expenses 146,098.19 14,401.59 11,841.57 0.00 5,770.11 0.00 178,111.46 Legal expenses 0.00 3,803.50 0.00 0.00 0.00 0.00 3,803.50 Travel 11,177.51 9,705.53 1,244.67 0.00 237.26 0.00 22,364.97 Other admin. 23,727.32 69,661.97 3,921.63 0.00 1,710.06 0.00 99,020.98 Total Administrative 725,279.29 215,214.74 165,603.39 0.00 62,361.18 0.00 1,168,458.60 Tenant services - other 0.00 0.00 3,879.92 0.00 1,533.60 0.00 5,413.52 Total Tenant Services 0.00 0.00 3,879.92 0.00 1,533.60 0.00 5,413.52 Water 0.00 3,120.20 8,120.45 0.00 2,275.24 0.00 13,515.89 Electricity 0.00 12,443.25 9,358.96 0.00 6,464.85 0.00 28,267.06 Gas 0.00 0.00 3,630.51 0.00 2,493.81 0.00 6,124.32 Sewer 0.00 1,392.00 11,586.29 0.00 2,580.83 0.00 15,559.12 Total Utilities 0.00 16,955.45 32,696.21 0.00 13,814.73 0.00 63,466.39 Maintenance labor 0.00 23,983.84 86,470.54 0.00 10,282.29 0.00 120,736.67 Maintenance materials 1,121.16 6,480.25 51,367.78 0.00 9,173.13 0.00 68,142.32 Maintenance contracts 5,739.48 20,910.63 102,348.95 0.00 19,597.69 0.00 148,596.75 Employee benefits - maintenance 0.00 5,662.70 31,463.23 0.00 8,883.77 0.00 46,009.70 Total Maintenance 6,860.64 57,037.42 271,650.50 0.00 47,936.88 0.00 383,485.44 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Payments in lieu of taxes Bad debt - tenant rents Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 9 Months Ended 6/30/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 4,315.81 7,229.77 0.00 1,616.23 0.00 13,818.81 0.00 898.06 786.90 229.13 0.00 56.41 0.00 1,970.50 9,580.79 2,738.03 2,592.94 4,570.95 0.00 709.88 0.00 10,611.80 64,092.16 $ 546.58 893.54 670.41 0.00 100.61 0.00 2,211.14 4,839.67 8,589.19 12,700.26 0.00 2,483.13 0.00 28,612.25 321.57 4,151.08 2,491.25 0.00 4,495.65 0.00 11,459.55 321.57 4,151.08 2,491.25 0.00 4,495.65 0.00 11,459.55 29,424.42 660.72 0.00 0.00 0.00 0.00 30,085.14 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 0.00 0.00 2,303.00 0.00 19.00 0.00 2,322.00 29,424.42 2,773.15 2,303.00 0.00 19.00 0.00 34,519.57 8,538,974.66 0.00 0.00 0.00 0.00 0.00 8,538,974.66 682,820.00 0.00 0.00 0.00 0.00 0.00 682,820.00 9,221,794.66 0.00 0.00 0.00 0.00 0.00 9,221,794.66 9,988,520.25 304,721.03 491,324.53 0.00 132,644.17 0.00 10,917,209.98 300,188.08 70,235.03 70,592.16 0.00 (22,093.13) 0.00 418,922.14 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 9,580.79 6,500.00 0.00 17,266.99 0.00 33,347.78 16,630.00 9,580.79 6,500.00 0.00 17,266.99 0.00 49,977.78 $ 283,558.08 $60,654.24 $ 64,092.16 $ 0.00 $ (39,360.12) $ 0.00 $ 368,944.36 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of June 30, 2017 Assets Current Assets Cash -unrestricted $ 778,485.60 Accounts receivable - PHA projects 107,493.37 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 9,507.90 Inter program - due from 16,092.93 Total Current Assets 878,399.96 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 999,435.56 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 1,989.40 19,844.86 1,469.00 14,193.57 37,496.83 12,363.67 12,363.67 49,860.50 99,105.60 526,335.99 23,945.39 16,630.00 283,558.08 949,575.06 $ 999,435.56 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 6/30/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 89,915.00 $ 988,136.00 $ 1,078,051.00 Investment income - unrestricted 29.54 0.00 29.54 Other revenue 95,109.99 0.00 95,109.99 Total Operating Revenues 185,054.53 988,136.00 1,173,190.53 Operating Expenses Administrative salaries 40,944.48 0.00 40,944.48 Advertising and marketing 59.90 0.00 59.90 Employee benefits - administrative 18,480.18 0.00 18,480.18 Office expenses 19,331.96 0.00 19,331.96 Travel 753.55 0.00 753.55 Other admin. 3,157.81 0.00 3,157.81 Total Administrative 82,727.88 0.00 82,727.88 Maintenance materials 130.44 0.00 130.44 Maintenance contracts 25.50 0.00 25.50 Total Maintenance 155.94 0.00 155.94 Housing assistance payments 0.00 953,548.00 953,548.00 HAP portability -in 91,245.00 0.00 91,245.00 Total Housing Assistance Payments 91,245.00 953,548.00 1,044,793.00 Other general expenses 1,141.73 0.00 1,141.73 Total General Expenses 1,141.73 0.00 1,141.73 Total Operating Expenses 175,270.55 953,548.00 1,128,818.55 Operating Income (Loss) 9,783.98 34,588.00 44,371.98 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 9,783.98 $ 34,588.00 $ 44,371.98 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 406,440.61 634,178.00 227,737.39 1 Month and 9 Months Ended 6/30/2017 0.00 0.00 12,750.00 Current Year to Advertising and marketing 59.90 721.22 Month Date Budget Variance Operating Revenues 137,114.44 256,179.00 119,064.56 HUD PHA operating grants $ 1,078,051.00 $ 9,569,600.00 $ 11,320,235.00 $ 1,750,635.00 Investment income - unrestricted 29.54 235.77 800.00 564.23 Fraud recovery 0.00 2,292.00 2,000.00 (292.00) Other revenue 95,109.99 711,280.56 10,000.00 (701,280.56) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,173,190.53 10,288,708.33 11,333,035.00 1,044,326.67 Operating Expenses Administrative salaries 40,944.48 406,440.61 634,178.00 227,737.39 Auditing fees 0.00 0.00 12,750.00 12,750.00 Advertising and marketing 59.90 721.22 500.00 (221.22) Employee benefits - administrative 18,480.18 137,114.44 256,179.00 119,064.56 Office expenses 19,331.96 146,098.19 202,000.00 55,901.81 Travel 753.55 11,177.51 17,000.00 5,822.49 Other admin. 3,157.81 23,727.32 46,195.00 22,467.68 Total Administrative 82,727.88 725,279.29 1,168,802.00 443,522.71 Maintenance materials 130.44 1,121.16 3,000.00 1,878.84 Maintenance contracts 25.50 5,739.48 5,000.00 (739.48) Total Maintenance 155.94 6,860.64 8,000.00 1,139.36 Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 0.00 898.06 200.00 (698.06) Workmen's compensation 0.00 2,738.03 2,200.00 (538.03) All other insurance 0.00 546.58 1,500.00 953.42 Total Insurance 0.00 4,839.67 8,900.00 4,060.33 Protective services - other contract costs 321.57 0.00 (321.57) Total Protective Services 321.57 0.00 (321.57) Housing assistance payments 953,548.00 8,538,974.66 10,104,344.00 1,565,369.34 HAP portability -in 91,245.00 682,820.00 0.00 (682,820.00) Total Housing Assistance Payments 1,044,793.00 9,221,794.66 10,104,344.00 882,549.34 Other general expenses 1,141.73 29,424.42 10,000.00 (19,424.42) Total General Expenses 1,141.73 29,424.42 10,000.00 (19,424.42) Total Operating Expenses 1,128,818.55 9,988,520.25 11,300,046.00 1,311,525.75 Operating Income (Loss) 44,371.98 300,188.08 32,989.00 (267,199.08) Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ 44,371.98 $ 283,558.08 $ (11.00) $ (283,569.08 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 9 Months Ended 6/30/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 827,740.00 $ 8,741,860.00 $ 9,569,600.00 Investment income - unrestricted 235.77 0.00 235.77 Fraud recovery 1,146.00 1,146.00 2,292.00 Other revenue 711,280.56 0.00 711,280.56 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 1,545,702.33 8,743,006.00 10,288,708.33 Operating Expenses Administrative salaries 406,440.61 0.00 406,440.61 Advertising and marketing 721.22 0.00 721.22 Employee benefits - administrative 137,114.44 0.00 137,114.44 Office expenses 146,098.19 0.00 146,098.19 Travel 11,177.51 0.00 11,177.51 Other admin. 23,727.32 0.00 23,727.32 Total Administrative 725,279.29 0.00 725,279.29 Maintenance materials 1,121.16 0.00 1,121.16 Maintenance contracts 5,739.48 0.00 5,739.48 Total Maintenance 6,860.64 0.00 6,860.64 Property insurance 657.00 0.00 657.00 Liability insurance 898.06 0.00 898.06 Workmen's compensation 2,738.03 0.00 2,738.03 All other insurance 546.58 0.00 546.58 Total Insurance 4,839.67 0.00 4,839.67 Protective services - other contract costs 321.57 0.00 321.57 Total Protective Services 321.57 0.00 321.57 Housing assistance payments 0.00 8,538,974.66 8,538,974.66 HAP portability -in 682,820.00 0.00 682,820.00 Total Housing Assistance Payments 682,820.00 8,538,974.66 9,221,794.66 Other general expenses 29,424.42 0.00 29,424.42 Total General Expenses 29,424.42 0.00 29,424.42 Total Operating Expenses 1,449,545.59 8,538,974.66 9,988,520.25 Operating Income (Loss) 96,156.74 204,031.34 300,188.08 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 79,526.74 $ 204,031.34 $ 283,558.08 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of June 30, 2017 Assets Current Assets 509,949.32 Cash -unrestricted $ 726,863.52 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 1,022.77 Inventories (net) 986.65 Inter program - due from 77,281.60 Total Current Assets 1,215,975.77 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,855,262.69 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 60,654.24 2,852,343.51 $ 2,855,262.69 Denton Housing Authority Income Statement - Management Fund 1 Month and 9 Months Ended 6/30/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 1,360.00 1,360.00 Management fees $ 4,585.28 $ 45,206.79 $ 63,399.00 $ 18,192.21 Investment income - unrestricted 25.93 489.27 300.00 (189.27) Other revenue 118,300.00 329,260.00 1,424,600.00 1,095,340.00 Total Operating Revenues 122,911.21 374,956.06 1,488,299.00 1,113,342.94 Operating Expenses Administrative salaries 10,503.73 92,988.21 217,231.00 124,242.79 Auditing fees 0.00 0.00 1,360.00 1,360.00 Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 3,355.52 24,557.27 55,812.00 31,254.73 Office expenses 1,669.92 14,401.59 30,500.00 16,098.41 Legal expenses 950.00 3,803.50 50,000.00 46,196.50 Travel 442.76 9,705.53 10,000.00 294.47 Other admin. 7,959.46 69,661.97 96,260.00 26,598.03 Total Administrative 24,881.39 215,214.74 461,163.00 245,948.26 Water 130.15 3,120.20 5,000.00 1,879.80 Electricity 1,523.28 12,443.25 17,000.00 4,556.75 Sewer 214.92 1,392.00 2,000.00 608.00 Total Utilities 1,868.35 16,955.45 24,000.00 7,044.55 Maintenance labor 2,691.55 23,983.84 38,164.00 14,180.16 Maintenance materials 803.83 6,480.25 8,000.00 1,519.75 Maintenance contracts 5,905.67 20,910.63 38,600.00 17,689.37 Employee benefits - maintenance 699.01 5,662.70 6,324.00 661.30 Total Maintenance 10,100.06 57,037.42 91,088.00 34,050.58 Property insurance 0.00 4,315.81 2,700.00 (1,615.81) Liability insurance 0.00 786.90 100.00 (686.90) Workmen's compensation 0.00 2,592.94 1,000.00 (1,592.94) All other insurance 0.00 893.54 900.00 6.46 Total Insurance 0.00 8,589.19 4,700.00 (3,889.19) Protective services - other contract costs 621.29 4,151.08 5,500.00 1,348.92 Total Protective Services 621.29 4,151.08 5,500.00 1,348.92 Other general expenses 200.00 660.72 5,000.00 4,339.28 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 200.00 2,773.15 9,800.00 7,026.85 Total Operating Expenses 37,671.09 304,721.03 596,251.00 291,529.97 Operating Income (Loss) 85,240.12 70,235.03 892,048.00 821,812.97 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 0.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ 85,240.12 $ 60,654.24 $ 812,048.00 $ 751,393.76 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of June 30, 2017 Assets Current Assets Cash -unrestricted $ 958,089.73 Accounts receivable - tenants (net) (2,587.90) Prepaid expenses and other assets 269.14 Inventories (net) 6,591.61 Total Current Assets 962,362.58 Property and Equipment Land 334,002.00 Buildings 3,862,027.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,065,790.47 Total Assets $ 2,028,153.05 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,450.00 Inter program - due to (4,752.30) Total Current Liabilities 22,955.03 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 28,791.01 1,059,290.47 869,479.41 6,500.00 64,092.16 1,999,362.04 $ 2,028,153.05 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 9 Months Ended 6/30/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 62,365.00 $ 551,863.00 $ 722,190.00 $ 170,327.00 Tenant revenue - other 1,104.00 2,598.75 1,500.00 (1,098.75) Investment income - unrestricted 91.78 2,331.76 1,500.00 (831.76) Other revenue 101.40 5,123.18 2,500.00 (2,623.18) Total Operating Revenues 63,662.18 561,916.69 727,690.00 165,773.31 Operating Expenses Administrative salaries 10,028.67 82,292.81 137,250.00 54,957.19 Auditing fees 0.00 0.00 2,550.00 2,550.00 Management fees 3,641.12 37,644.97 53,599.00 15,954.03 Advertising and marketing 19.30 367.14 0.00 (367.14) Employee benefits - administrative 4,500.53 28,290.60 58,650.00 30,359.40 Office expenses 1,877.48 11,841.57 26,500.00 14,658.43 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 116.52 1,244.67 7,000.00 5,755.33 Other admin. 931.41 3,921.63 14,300.00 10,378.37 Total Administrative 21,115.03 165,603.39 300,849.00 135,245.61 Tenant services - other 844.57 3,879.92 6,000.00 2,120.08 Total Tenant Services 844.57 3,879.92 6,000.00 2,120.08 Water 1,133.95 8,120.45 15,000.00 6,879.55 Electricity 1,203.87 9,358.96 15,000.00 5,641.04 Gas 350.73 3,630.51 6,000.00 2,369.49 Sewer 1,571.54 11,586.29 21,000.00 9,413.71 Total Utilities 4,260.09 32,696.21 57,000.00 24,303.79 Maintenance labor 9,429.80 86,470.54 145,455.00 58,984.46 Maintenance materials 5,998.48 51,367.78 52,000.00 632.22 Maintenance contracts 10,459.37 102,348.95 115,500.00 13,151.05 Employee benefits - maintenance 4,074.40 31,463.23 67,931.00 36,467.77 Total Maintenance 29,962.05 271,650.50 380,886.00 109,235.50 Property insurance 0.00 7,229.77 7,350.00 120.23 Liability insurance 0.00 229.13 300.00 70.87 Workmen's compensation 0.00 4,570.95 3,500.00 (1,070.95) All other insurance 0.00 670.41 2,300.00 1,629.59 Total Insurance 0.00 12,700.26 13,450.00 749.74 Protective services - other contract costs 528.45 2,491.25 2,600.00 108.75 Total Protective Services 528.45 2,491.25 2,600.00 108.75 Bad debt - tenant rents 0.00 2,303.00 0.00 (2,303.00) Total General Expenses 0.00 2,303.00 0.00 (2,303.00) Total Operating Expenses 56,710.19 491,324.53 760,785.00 269,460.47 Operating Income (Loss) 6,951.99 70,592.16 (33,095.00) (103,687.16) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 3,400.00 6,500.00 101,000.00 94,500.00 Total Other Financial Items 3,400.00 6,500.00 106,000.00 99,500.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 9 Months Ended 6/30/2017 Current Month Year to Date $ 3,551.99 $ 64,092.16 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (203,187.16) Denton Housing Authority Balance Sheet - Disaster Funds As of June 30, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 9 Months Ended 6/30/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of June 30, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 9 Months Ended 6/30/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of June 30, 2017 Assets Current Assets 159,009.13 Cash -unrestricted $ 7,702.04 Accounts receivable - tenants (net) 113.00 Prepaid expenses and other assets 53.82 Inventories (net) 999.73 Total Current Assets 8,868.59 Property and Equipment Land 159,009.13 Buildings 2,365,407.61 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 870,450.20 Total Assets $ 879,318.79 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 4,050.00 Inter program - due to 83,933.26 Total Current Liabilities 88,876.97 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 89,784.53 853,183.21 (41,555.82) 17,266.99 (39,360.12) 789,534.26 $ 879,318.79 Denton Housing Authority Income Statement - Pecan Place 1 Month and 9 Months Ended 6/30/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 0.00 0.00 340.00 340.00 Net tenant rental revenue $ 13,488.00 $ 107,496.00 $ 157,055.00 $ 49,559.00 Tenant revenue - other 0.00 49.00 200.00 151.00 Investment income - unrestricted 0.88 6.04 10.00 3.96 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 13,488.88 110,551.04 157,265.00 46,713.96 Operating Expenses Administrative salaries 4,041.31 38,518.71 27,502.00 (11,016.71) Auditing fees 0.00 0.00 340.00 340.00 Management fees 944.16 7,561.82 9,800.00 2,238.18 Advertising and marketing 0.00 55.09 0.00 (55.09) Employee benefits - administrative 1,117.36 8,508.13 4,342.00 (4,166.13) Office expenses 714.43 5,770.11 14,000.00 8,229.89 Legal expenses 0.00 0.00 500.00 500.00 Travel 0.00 237.26 1,400.00 1,162.74 Other admin. 270.49 1,710.06 5,240.00 3,529.94 Total Administrative 7,087.75 62,361.18 63,124.00 762.82 Tenant services - other 26.35 1,533.60 1,200.00 (333.60) Total Tenant Services 26.35 1,533.60 1,200.00 (333.60) Water 313.16 2,275.24 3,000.00 724.76 Electricity 814.31 6,464.85 7,000.00 535.15 Gas 194.34 2,493.81 3,000.00 506.19 Sewer 349.04 2,580.83 3,500.00 919.17 Total Utilities 1,670.85 13,814.73 16,500.00 2,685.27 Maintenance labor 1,153.68 10,282.29 17,740.00 7,457.71 Maintenance materials 744.59 9,173.13 7,000.00 (2,173.13) Maintenance contracts 1,653.64 19,597.69 19,500.00 (97.69) Employee benefits - maintenance 1,097.14 8,883.77 5,482.00 (3,401.77) Total Maintenance 4,649.05 47,936.88 49,722.00 1,785.12 Property insurance 0.00 1,616.23 1,300.00 (316.23) Liability insurance 0.00 56.41 50.00 (6.41) Workmen's compensation 0.00 709.88 800.00 90.12 All other insurance 0.00 100.61 700.00 599.39 Total Insurance 0.00 2,483.13 2,850.00 366.87 Protective services - other contract costs 189.85 4,495.65 3,600.00 (895.65) Total Protective Services 189.85 4,495.65 3,600.00 (895.65) Bad debt - tenant rents 0.00 19.00 0.00 (19.00) Total General Expenses 0.00 19.00 0.00 (19.00) Total Operating Expenses 13,623.85 132,644.17 136,996.00 4,351.83 Operating Income (Loss) (134.97) (22,093.13) 20,269.00 42,362.13 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 3,400.00 17,266.99 20,000.00 2,733.01 Total Other Financial Items 3,400.00 17,266.99 23,000.00 5,733.01 Net Income (Loss) $ (3,534.97) $ (39,360.12) $ (2,731.00) $ 36,629.12 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority FYE 9/30/17 VMS Equity October November December January February March April May June July August September Total Beginning HAP Equity 36,219.18 26,055.10 6,340.40 35,081.40 47,326.40 68,054.74 142,386.74 163,521.24 200,897.24 235,485.24 235,485.24 235,485.24 36,219.18 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 993,846.00 993,846.00 988,136.00 8,741,860.00 Interest Income - - - - - - - - - - - - - Void Checks -HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1.146.00 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 993.908.50 993.846.00 988.136.00 8.743.006.00 Expenses: HAP Payments 924,264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 953,548.00 8,543,739.94 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 924264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 953,548.00 - - - 8,543,739.94 Net Income (Loss) (10,164.08) (19,714.70) 28,741.00 12,245.00 20,728.34 74,332.00 21,134.50 37,376.00 34,588.00 - - - 199,266.06 Ending HAP Equity 26.055.10 6.34040 35.08140 47.32640 68,05474 142.386.74 163.521.24200.897.24 235.485.24 235.485.24 235.485.24 235.485.24 235.485.24 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596814.19 610,583.31 662,650.25 605,998.62 612,681.53 612,708.75 622,492.73 622,492.73 622,492.73 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 89,393.00 89,915.00 89,915.00 827,740.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 26.45 29.23 29.54 235.77 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,353.87 91,623.96 100,373.15 95,109.99 716,580.56 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1,146.00 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,874.36 181,105.91 190,317.38 185,054.53 1,545,702.33 Expenses: Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190,290.16 175,270.55 1,449,545.59 Concur with HUD 12/31/19 Depreciation Expense Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190290.16 175270.55 - - - 1,449,545.59 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,651.63) 6,682.91 27.22 9,783.98 - - - 96,156.74 Ending Admin Equity 55LILd7 579�� 596��14.19 610�" 662�� 605��9862 6126��1.53LlazL8.75 622��92.73 6224�" 622��92.73 622��92.73 52��717.76 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $942,517 based on budgeted funding. This represents 102% of HUD funding. 102% Denton Housing Authority $ 635.59 Section 8 Utilization Report 97% For the Year Ended December 31, 2017 102% 102% Annual Budget Authority Actual 11,070,033 11,070,033 HUD -held Program Reserve X217,246 217,246 PHA -held NRA Balance 22,922 72,922 i Administrative Fee Reserve $ 634.57 Total Funding Available 11,310,201 11,310,201 Baseline Units 1525' % of Year to Monthly HAP payments target is $942,517 based on budgeted funding. This represents 102% of HUD funding. 102% 102% $ 635.59 $ 635.59 97% 97% 102% 102% $ 634.04 $ 634.82 97% 97% 102% 102% $ 634.07 $ 634.57 97% 97% 105% 103% $ 650.90 $ 638.66 98% 97% 104% 103% $ 653.77 $ 641.65 96% 97% 103% 103% $ 657.62 $ 644.27 95% 97% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $942,517 Colors are in 5% increments Outside edge is>= 25% variance rlaub & Co, I'LL t:'I✓ZIii EE)PUBLIC a CCOINIA .T Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 We have compiled the accompanying balance sheet of the Denton Housing Authority as of July 31, 2017, and the related income statement for the 1 Month and 10 Months then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America. Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements. Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements. Accounting principles accepted in the United States of America require for the accrual of revenues and expenses to be recorded in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. The income statement includes capital expenditures for presentation purposes. The effects of these departures on the financial statements have not been determined. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed that supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information. Management has elected to omit substantially all of the disclosures, the management's discussion and analysis, and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures, analysis, and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Denton Housing Authority's financial position, results of operations, and cash flows. Accordingly, these financial statements are not designed for those who are not informed about such matters. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC August 11, 2017 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Denton Housing Authority Balance Sheet - Combining As of July 31, 2017 Assets Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Assets Cash -unrestricted $ 818,496.33 $ 666,964.91 $ 961,293.76 $ 0.00 $ 7,246.99 $ 0.00 $ 2,454,001.99 Cash -other restricted 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 Accounts receivable - PHA projects 119,486.49 0.00 0.00 0.00 0.00 0.00 119,486.49 Accounts receivable - miscellaneous (net) (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 Accounts receivable - tenants (net) 0.00 0.00 (362.40) 0.00 (6.00) 0.00 (368.40) Fraud recovery (net) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 Accrued interest receivable 0.28 11.08 0.00 0.00 0.00 0.00 11.36 Investments - unrestricted 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 Prepaid expenses and other assets 8,156.88 909.13 239.23 0.00 47.84 0.00 9,353.08 Inventories (net) 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 Inter program - due from (7,623.71) 62,968.82 0.00 0.00 0.00 0.00 55,345.11 Total Current Assets 905,336.15 1,141,650.74 967,762.20 81,827.31 8,288.56 0.00 3,104,864.96 Property and Equipment Land 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Buildings 205,955.95 1,837,624.92 3,865,427.68 0.00 2,368,907.61 0.00 8,277,916.16 Furniture, equipment and machinery - dwellings 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 Furniture, equipment and machinery - administration 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 Accumulated depreciation (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) Construction in progress 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 Notes, loans & mortgages receivable - non-current 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 Net Property and Equipment 121,035.60 1,639,286.92 1,069,190.47 0.00 873,950.20 2,470,000.00 6,173,463.19 Total Assets$ 1,026,371.75 $ 2,780,937.66 $ 2,036,952.67 L_81 827.31 $ 882,238.76 $ 2,470,000.00 $9,278,328.15 Urlaub & Co., PLLC See Accountant's Compilation Report 3 Net Position Denton Housing Authority Investment in capital assets Balance Sheet - Combining 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 As of July 31, 2017 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) Liabilities and Net Position Restricted 23,945.39 0.00 0.00 81,827.31 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total 9,900.00 0.00 Fund 0.00 56,877.78 Net income (loss) 325,708.74 Current Liabilities 70,562.26 0.00 (18,265.68) 0.00 364,334.53 Accrued wage/payroll taxes payable $ 2,059.40 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 2,059.40 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,450.00 0.00 4,050.00 0.00 25,500.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to (1,090.90) 0.00 (5,822.78) 0.00 62,258.79 0.00 55,345.11 Total Current Liabilities 22,282.36 1,397.76 21,884.55 0.00 67,202.50 2,458,564.81 2,571,331.98 Long -Term Liabilities Accrued compensated absences - noncurrent 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 34,646.03 2,919.18 27,720.53 0.00 68,110.06 2,458,564.81 2,591,960.61 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditurescontra 16,630.00 9,580.79 9,900.00 0.00 20,766.99 0.00 56,877.78 Net income (loss) 325,708.74 (13,670.79) 70,562.26 0.00 (18,265.68) 0.00 364,334.53 Total Net Position 991,725.72 2,778,018.48 2,009,232.14 81,827.31 814,128.70 11,435.19 6,686,367.54 Total Liabilities and Net Position $ 1,026,371.75 $ 2,780,937.66 $2,036,952.67 $ 81,827.31 $ 882,238.76 $ 2,470,000.00 $ 9,278,328.15 Urlaub & Co., PLIC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Income Statement -Combining 10 Months Ended 7/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 612,963.00 $ 0.00 $ 121,098.00 $ 0.00 $ 734,061.00 Tenant revenue - other 0.00 0.00 2,876.75 0.00 49.00 0.00 2,925.75 HUD PHA operating grants 10,634,058.00 0.00 0.00 0.00 0.00 0.00 10,634,058.00 Management fees 0.00 50,252.39 0.00 0.00 0.00 0.00 50,252.39 Investment income - unrestricted 268.68 516.73 2,362.38 0.00 6.74 0.00 3,154.53 Fraud recovery 3,742.00 0.00 0.00 0.00 0.00 0.00 3,742.00 Other revenue 823,763.79 342,560.00 5,881.30 0.00 3,000.00 0.00 1,175,205.09 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 11,467,132.47 393,329.12 624,083.43 0.00 124,153.74 0.00 12,608,698.76 Operating Expenses Administrative salaries 431,913.21 145,860.54 89,565.70 0.00 20,472.67 0.00 687,812.12 Auditing fees 8,500.00 6,460.00 1,700.00 0.00 340.00 0.00 17,000.00 Management fees 0.00 0.00 41,738.43 0.00 8,513.96 0.00 50,252.39 Advertising and marketing 787.32 96.67 367.14 0.00 55.09 0.00 1,306.22 Employee benefits - administrative 149,308.77 36,299.09 31,830.72 0.00 2,659.33 0.00 220,097.91 Office expenses 160,918.48 15,494.03 13,230.74 0.00 6,469.04 0.00 196,112.29 Legal expenses 0.00 3,803.50 0.00 0.00 0.00 0.00 3,803.50 Travel 13,253.08 11,848.46 2,028.67 0.00 254.66 0.00 27,384.87 Other admin. 27,880.44 78,145.65 4,521.97 0.00 1,755.95 0.00 112,304.01 Total Administrative 792,561.30 298,007.94 184,983.37 0.00 40,520.70 0.00 1,316,073.31 Tenant services - other 0.00 140.78 4,269.31 0.00 1,624.44 0.00 6,034.53 Total Tenant Services 0.00 140.78 4,269.31 0.00 1,624.44 0.00 6,034.53 Water 0.00 3,248.12 9,431.51 0.00 2,900.68 0.00 15,580.31 Electricity 0.00 14,231.16 10,821.65 0.00 8,760.14 0.00 33,812.95 Gas 0.00 0.00 4,037.64 0.00 2,678.54 0.00 6,716.18 Sewer 0.00 1,557.90 13,352.55 0.00 3,277.93 0.00 18,188.38 Total Utilities 0.00 19,037.18 37,643.35 0.00 17,617.29 0.00 74,297.82 Maintenance labor 0.00 26,507.56 95,523.97 0.00 11,371.78 0.00 133,403.31 Maintenance materials 1,194.66 7,016.69 54,479.30 0.00 9,531.32 0.00 72,221.97 Maintenance contracts 7,119.48 22,791.95 109,209.50 0.00 23,169.86 0.00 162,290.79 Employee benefits - maintenance 0.00 6,259.19 34,944.54 0.00 9,814.20 0.00 51,017.93 Total Maintenance 8,314.14 62,575.39 294,157.31 0.00 53,887.16 0.00 418,934.00 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Property insurance Liability insurance Workmen's compensation All other insurance Total Insurance Protective services - other contract costs Total Protective Services Other general expenses Payments in lieu of taxes Bad debt - tenant rents Total General Expenses Housing assistance payments HAP portability -in Total Housing Assistance Payments Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Denton Housing Authority Income Statement -Combining 10 Months Ended 7/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund 657.00 5,271.45 10,278.45 0.00 2,216.66 0.00 18,423.56 0.00 1,328.69 1,114.06 315.35 0.00 73.65 0.00 2,831.75 9,580.79 3,407.91 3,228.41 6,093.56 0.00 907.42 0.00 13,637.30 $ 735.45 1,033.96 875.37 0.00 100.61 0.00 2,745.39 6,129.05 10,647.88 17,562.73 0.00 3,298.34 0.00 37,638.00 321.57 4,236.80 2,702.10 0.00 4,685.50 0.00 11,945.97 321.57 4,236.80 2,702.10 0.00 4,685.50 0.00 11,945.97 32,264.01 660.72 0.00 0.00 0.00 0.00 32,924.73 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 0.00 0.00 2,303.00 0.00 19.00 0.00 2,322.00 32,264.01 2,773.15 2,303.00 0.00 19.00 0.00 37,359.16 9,495,041.66 0.00 0.00 0.00 0.00 0.00 9,495,041.66 790,162.00 0.00 0.00 0.00 0.00 0.00 790,162.00 10,285,203.66 0.00 0.00 0.00 0.00 0.00 10,285,203.66 11,124,793.73 397,419.12 543,621.17 0.00 121,652.43 0.00 12,187,486.45 342,338.74 (4,090.00) 80,462.26 0.00 2,501.31 0.00 421,212.31 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 0.00 9,580.79 91900.00 0.00 20,766.99 0.00 40,247.78 16,630.00 9,580.79 9,900.00 0.00 20,766.99 0.00 56,877.78 $ 325,708.74 1 (13,670.79) $70,562.26 $ 0.00 $ (18,265.68) $ 0.00 $ 364,334.53 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of July 31, 2017 Assets Current Assets Cash -unrestricted $ 818,496.33 Accounts receivable - PHA projects 119,486.49 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 8,156.88 Inter program - due from (7,623.71) Total Current Assets 905,336.15 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 1,026,371.75 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable Accrued compensated absences - current portion Unearned revenue Inter program - due to Total Current Liabilities Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 8 $ 2,059.40 19,844.86 1,469.00 (1,090.90) 22,282.36 12,363.67 12,363.67 34,646.03 99,105.60 526,335.99 23,945.39 16,630.00 325.708.74 991,725.72 $ 1,026,371.75 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 7/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 88,515.00 $ 975,943.00 $ 1,064,458.00 Investment income - unrestricted 32.91 0.00 32.91 Fraud recovery 725.00 725.00 1,450.00 Other revenue 112,483.23 0.00 112,483.23 Total Operating Revenues 201,756.14 976,668.00 1,178,424.14 Operating Expenses Administrative salaries 25,472.60 0.00 25,472.60 Auditing fees 8,500.00 0.00 8,500.00 Advertising and marketing 66.10 0.00 66.10 Employee benefits - administrative 12,194.33 0.00 12,194.33 Office expenses 14,820.29 0.00 14,820.29 Travel 2,075.57 0.00 2,075.57 Other admin. 4,153.12 0.00 4,153.12 Total Administrative 67,282.01 0.00 67,282.01 Maintenance materials 73.50 0.00 73.50 Maintenance contracts 1,380.00 0.00 1,380.00 Total Maintenance 1,453.50 0.00 1,453.50 Liability insurance 430.63 0.00 430.63 Workmen's compensation 669.88 0.00 669.88 All other insurance 188.87 0.00 188.87 Total Insurance 1,289.38 0.00 1,289.38 Housing assistance payments 0.00 956,067.00 956,067.00 HAP portability -in 107,342.00 0.00 107,342.00 Total Housing Assistance Payments 107,342.00 956,067.00 1,063,409.00 Other general expenses 2,839.59 0.00 2,839.59 Total General Expenses 2,839.59 0.00 2,839.59 Total Operating Expenses 180,206.48 956,067.00 1,136,273.48 Operating Income (Loss) 21,549.66 20,601.00 42,150.66 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 21,549.66 $ 20,601.00 $ 42,150.66 Urlaub & Co., PLLC See Accountant's Compilation Report 9 Operating Expenses Administrative salaries Denton Housing Authority Income Statement -Section 8 Voucher 431,913.21 634,178.00 202,264.79 1 Month and 10 Months Ended 7/31/2017 8,500.00 8,500.00 12,750.00 Current Year to Advertising and marketing 66.10 787.32 Month Date Budget Variance Operating Revenues 149,308.77 256,179.00 106,870.23 HUD PHA operating grants $ 1,064,458.00 $ 10,634,058.00 $ 11,320,235.00 $ 686,177.00 Investment income - unrestricted 32.91 268.68 800.00 531.32 Fraud recovery 1,450.00 3,742.00 2,000.00 (1,742.00) Other revenue 112,483.23 823,763.79 10,000.00 (813,763.79) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,178,424.14 11,467,132.47 11,333,035.00 (134,097.47) Operating Expenses Administrative salaries 25,472.60 431,913.21 634,178.00 202,264.79 Auditing fees 8,500.00 8,500.00 12,750.00 4,250.00 Advertising and marketing 66.10 787.32 500.00 (287.32) Employee benefits - administrative 12,194.33 149,308.77 256,179.00 106,870.23 Office expenses 14,820.29 160,918.48 202,000.00 41,081.52 Travel 2,075.57 13,253.08 17,000.00 3,746.92 Other admin. 4,153.12 27,880.44 46,195.00 18,314.56 Total Administrative 67,282.01 792,561.30 1,168,802.00 376,240.70 Maintenance materials 73.50 1,194.66 3,000.00 1,805.34 Maintenance contracts 1,380.00 7,119.48 5,000.00 (2,119.48) Total Maintenance 1,453.50 8,314.14 8,000.00 (314.14) Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 430.63 1,328.69 200.00 (1,128.69) Workmen's compensation 669.88 3,407.91 2,200.00 (1,207.91) All other insurance 188.87 735.45 1,500.00 764.55 Total Insurance 1,289.38 6,129.05 8,900.00 2,770.95 Protective services - other contract costs 321.57 0.00 (321.57) Total Protective Services 321.57 0.00 (321.57) Housing assistance payments 956,067.00 9,495,041.66 10,104,344.00 609,302.34 HAP portability -in 107,342.00 790,162.00 0.00 (790,162.00) Total Housing Assistance Payments 1,063,409.00 10,285,203.66 10,104,344.00 (180,859.66) Other general expenses 2,839.59 32,264.01 10,000.00 (22,264.01) Total General Expenses 2,839.59 32,264.01 10,000.00 (22,264.01) Total Operating Expenses 1,136,273.48 11,124,793.73 11,300,046.00 175,252.27 Operating Income (Loss) 42,150.66 342,338.74 32,989.00 (309,349.74 Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ 42,150.66 $ 325,708.74 $ (11.00) $ (325,719.74 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Denton Housing Authority Income Statement -Section 8 Voucher 10 Months Ended 7/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 916,255.00 $ 9,717,803.00 $ 10,634,058.00 Investment income - unrestricted 268.68 0.00 268.68 Fraud recovery 1,871.00 1,871.00 3,742.00 Other revenue 823,763.79 0.00 823,763.79 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 1,747,458.47 9,719,674.00 11,467,132.47 Operating Expenses Administrative salaries 431,913.21 0.00 431,913.21 Auditing fees 8,500.00 0.00 8,500.00 Advertising and marketing 787.32 0.00 787.32 Employee benefits - administrative 149,308.77 0.00 149,308.77 Office expenses 160,918.48 0.00 160,918.48 Travel 13,253.08 0.00 13,253.08 Other admin. 27,880.44 0.00 27,880.44 Total Administrative 792,561.30 0.00 792,561.30 Maintenance materials 1,194.66 0.00 1,194.66 Maintenance contracts 7,119.48 0.00 7,119.48 Total Maintenance 8,314.14 0.00 8,314.14 Property insurance 657.00 0.00 657.00 Liability insurance 1,328.69 0.00 1,328.69 Workmen's compensation 3,407.91 0.00 3,407.91 All other insurance 735.45 0.00 735.45 Total Insurance 6,129.05 0.00 6,129.05 Protective services - other contract costs 321.57 0.00 321.57 Total Protective Services 321.57 0.00 321.57 Housing assistance payments 0.00 9,495,041.66 9,495,041.66 HAP portability -in 790,162.00 0.00 790,162.00 Total Housing Assistance Payments 790,162.00 9,495,041.66 10,285,203.66 Other general expenses 32,264.01 0.00 32,264.01 Total General Expenses 32,264.01 0.00 32,264.01 Total Operating Expenses 1,629,752.07 9,495,041.66 11,124,793.73 Operating Income (Loss) 117,706.40 224,632.34 342,338.74 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 101,076.40 $ 224,632.34 $ 325,708.74 Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Balance Sheet - Management Fund As of July 31, 2017 Assets Current Assets 509,949.32 Cash -unrestricted $ 666,964.91 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 909.13 Inventories (net) 986.65 Inter program - due from 62,968.82 Total Current Assets 1,141,650.74 Property and Equipment Land 509,949.32 Buildings 1,837,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,639,286.92 Total Assets $ 2,780,937.66 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 12 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 9,580.79 (13,670.79) 2,778,018.48 $ 2,780,937.66 Denton Housing Authority Income Statement - Management Fund 1 Month and 10 Months Ended 7/31/2017 Operating Expenses Administrative salaries Current Month Year to Date Budget Variance Operating Revenues 6,460.00 6,460.00 1,360.00 (5,100.00) Management fees $ 5,045.60 $ 50,252.39 $ 63,399.00 $ 13,146.61 Investment income - unrestricted 27.46 516.73 300.00 (216.73) Other revenue 13,300.00 342,560.00 1,424,600.00 1,082,040.00 Total Operating Revenues 18,373.06 393,329.12 1,488,299.00 1,094,969.88 Operating Expenses Administrative salaries 52,872.33 145,860.54 217,231.00 71,370.46 Auditing fees 6,460.00 6,460.00 1,360.00 (5,100.00) Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 11,741.82 36,299.09 55,812.00 19,512.91 Office expenses 1,092.44 15,494.03 30,500.00 15,005.97 Legal expenses 0.00 3,803.50 50,000.00 46,196.50 Travel 2,142.93 11,848.46 10,000.00 (1,848.46) Other admin. 8,483.68 78,145.65 96,260.00 18,114.35 Total Administrative 82,793.20 298,007.94 461,163.00 163,155.06 Tenant services - other 140.78 140.78 0.00 (140.78) Total Tenant Services 140.78 140.78 0.00 (140.78) Water 127.92 3,248.12 5,000.00 1,751.88 Electricity 1,787.91 14,231.16 17,000.00 2,768.84 Sewer 165.90 1,557.90 2,000.00 442.10 Total Utilities 2,081.73 19,037.18 24,000.00 4,962.82 Maintenance labor 2,523.72 26,507.56 38,164.00 11,656.44 Maintenance materials 536.44 7,016.69 8,000.00 983.31 Maintenance contracts 1,881.32 22,791.95 38,600.00 15,808.05 Employee benefits - maintenance 596.49 6,259.19 6,324.00 64.81 Total Maintenance 5,537.97 62,575.39 91,088.00 28,512.61 Property insurance 955.64 5,271.45 2,700.00 (2,571.45) Liability insurance 327.16 1,114.06 100.00 (1,014.06) Workmen's compensation 635.47 3,228.41 1,000.00 (2,228.41) All other insurance 140.42 1,033.96 900.00 (133.96) Total Insurance 2,058.69 10,647.88 4,700.00 (5,947.88) Protective services - other contract costs 85.72 4,236.80 5,500.00 1,263.20 Total Protective Services 85.72 4,236.80 5,500.00 1,263.20 Other general expenses 0.00 660.72 5,000.00 4,339.28 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 0.00 2,773.15 9,800.00 7,026.85 Total Operating Expenses 92,698.09 397,419.12 596,251.00 198,831.88 Operating Income (Loss) (74,325.03) (4,090.00) 892,048.00 896,138.00 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 0.00 9,580.79 40,000.00 30,419.21 Total Other Financial Items 0.00 9,580.79 80,000.00 70,419.21 Net Income (Loss) $ (74,325.03) $ (13,670.79) $ 812,048.00 $ 825,718.79 Urlaub & Co., PLLC See Accountant's Compilation Report 13 Denton Housing Authority Balance Sheet - Heritage Oaks As of July 31, 2017 Assets Current Assets Cash -unrestricted $ 961,293.76 Accounts receivable - tenants (net) (362.40) Prepaid expenses and other assets 239.23 Inventories (net) 6,591.61 Total Current Assets 967,762.20 Property and Equipment Land 334,002.00 Buildings 3,865,427.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,069,190.47 Total Assets $ 2,036,952.67 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 6,257.33 Tenant security deposits 21,450.00 Inter program - due to (5,822.78) Total Current Liabilities 21,884.55 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 14 5,835.98 5,835.98 27,720.53 1,059,290.47 869,479.41 9,900.00 70,562.26 2,009,232.14 $ 2,036,952.67 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 10 Months Ended 7/31/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 61,100.00 $ 612,963.00 $ 722,190.00 $ 109,227.00 Tenant revenue - other 278.00 2,876.75 1,500.00 (1,376.75) Investment income - unrestricted 30.62 2,362.38 1,500.00 (862.38) Other revenue 758.12 5,881.30 2,500.00 (3,381.30) Total Operating Revenues 62,166.74 624,083.43 727,690.00 103,606.57 Operating Expenses Administrative salaries 7,272.89 89,565.70 137,250.00 47,684.30 Auditing fees 1,700.00 1,700.00 2,550.00 850.00 Management fees 4,093.46 41,738.43 53,599.00 11,860.57 Advertising and marketing 0.00 367.14 0.00 (367.14) Employee benefits - administrative 3,540.12 31,830.72 58,650.00 26,819.28 Office expenses 1,389.17 13,230.74 26,500.00 13,269.26 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 784.00 2,028.67 7,000.00 4,971.33 Other admin. 600.34 4,521.97 14,300.00 9,778.03 Total Administrative 19,379.98 184,983.37 300,849.00 115,865.63 Tenant services - other 389.39 4,269.31 6,000.00 1,730.69 Total Tenant Services 389.39 4,269.31 6,000.00 1,730.69 Water 1,311.06 9,431.51 15,000.00 5,568.49 Electricity 1,462.69 10,821.65 15,000.00 4,178.35 Gas 407.13 4,037.64 6,000.00 1,962.36 Sewer 1,766.26 13,352.55 21,000.00 7,647.45 Total Utilities 4,947.14 37,643.35 57,000.00 19,356.65 Maintenance labor 9,053.43 95,523.97 145,455.00 49,931.03 Maintenance materials 3,111.52 54,479.30 52,000.00 (2,479.30) Maintenance contracts 6,860.55 109,209.50 115,500.00 6,290.50 Employee benefits - maintenance 3,481.31 34,944.54 67,931.00 32,986.46 Total Maintenance 22,506.81 294,157.31 380,886.00 86,728.69 Property insurance 3,048.68 10,278.45 7,350.00 (2,928.45) Liability insurance 86.22 315.35 300.00 (15.35) Workmen's compensation 1,522.61 6,093.56 3,500.00 (2,593.56) All other insurance 204.96 875.37 2,300.00 1,424.63 Total Insurance 4,862.47 17,562.73 13,450.00 (4,112.73) Protective services - other contract costs 210.85 2,702.10 2,600.00 (102.10) Total Protective Services 210.85 2,702.10 2,600.00 (102.10) Bad debt - tenant rents 0.00 2,303.00 0.00 (2,303.00) Total General Expenses 0.00 2,303.00 0.00 (2,303.00) Total Operating Expenses 52,296.64 543,621.17 760,785.00 217,163.83 Operating Income (Loss) 9,870.10 80,462.26 (33,095.00) (113,557.26) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 3,400.00 9,900.00 101,000.00 91,100.00 Total Other Financial Items 3,400.00 9,900.00 106,000.00 96,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 10 Months Ended 7/31/2017 Current Month Year to Date $ 6,470.10 $ 70,562.26 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Budget $ (139,095.00) Variance $ (209,657.26) Denton Housing Authority Balance Sheet - Disaster Funds As of July 31, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment Total Assets 0.00 $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities Total Liabilities Net Position Restricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 17 0.00 0.00 81,827.31 81,827.31 $ 81,827.31 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 10 Months Ended 7/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month 0.00 0.00 0.00 0.00 Year to Date 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of July 31, 2017 Assets Current Assets Total Current Assets Property and Equipment Land Net Property and Equipment Total Assets 0.00 2,470,000.00 2,470,000.00 $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities Net Position Investment in capital assets Unrestricted Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 19 2,458,564.81 2,470,000.00 (2,458,564.81) 11,435.19 $ 2,470,000.00 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 10 Months Ended 7/31/2017 Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) Current Month Year to Date 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Balance Sheet - Pecan Place As of July 31, 2017 Assets Current Assets 159,009.13 Cash -unrestricted $ 7,246.99 Accounts receivable - tenants (net) (6.00) Prepaid expenses and other assets 47.84 Inventories (net) 999.73 Total Current Assets 8,288.56 Property and Equipment Land 159,009.13 Buildings 2,368,907.61 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 873,950.20 Total Assets $ 882,238.76 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 4,050.00 Inter program - due to 62,258.79 Total Current Liabilities 67,202.50 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 21 907.56 907.56 110.06 853,183.21 (41,555.82) 20,766.99 (18,265.68) 814,128.70 $ 882,238.76 Denton Housing Authority Income Statement - Pecan Place 1 Month and 10 Months Ended 7/31/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 13,602.00 $ 121,098.00 $ 157,055.00 $ 35,957.00 Tenant revenue - other 0.00 49.00 200.00 151.00 Investment income - unrestricted 0.70 6.74 10.00 3.26 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 13,602.70 124,153.74 157,265.00 33,111.26 Operating Expenses Administrative salaries (18,046.04) 20,472.67 27,502.00 7,029.33 Auditing fees 340.00 340.00 340.00 0.00 Management fees 952.14 8,513.96 9,800.00 1,286.04 Advertising and marketing 0.00 55.09 0.00 (55.09) Employee benefits - administrative (5,848.80) 2,659.33 4,342.00 1,682.67 Office expenses 698.93 6,469.04 14,000.00 7,530.96 Legal expenses 0.00 0.00 500.00 500.00 Travel 17.40 254.66 1,400.00 1,145.34 Other admin. 45.89 1,755.95 5,240.00 3,484.05 Total Administrative (21,840.48) 40,520.70 63,124.00 22,603.30 Tenant services - other 90.84 1,624.44 1,200.00 (424.44) Total Tenant Services 90.84 1,624.44 1,200.00 (424.44) Water 625.44 2,900.68 3,000.00 99.32 Electricity 2,295.29 8,760.14 7,000.00 (1,760.14) Gas 184.73 2,678.54 3,000.00 321.46 Sewer 697.10 3,277.93 3,500.00 222.07 Total Utilities 3,802.56 17,617.29 16,500.00 (1,117.29) Maintenance labor 1,089.49 11,371.78 17,740.00 6,368.22 Maintenance materials 358.19 9,531.32 7,000.00 (2,531.32) Maintenance contracts 3,572.17 23,169.86 19,500.00 (3,669.86) Employee benefits - maintenance 930.43 9,814.20 5,482.00 (4,332.20) Total Maintenance 5,950.28 53,887.16 49,722.00 (4,165.16) Property insurance 600.43 2,216.66 1,300.00 (916.66) Liability insurance 17.24 73.65 50.00 (23.65) Workmen's compensation 197.54 907.42 800.00 (107.42) All other insurance 0.00 100.61 700.00 599.39 Total Insurance 815.21 3,298.34 2,850.00 (448.34) Protective services - other contract costs 189.85 4,685.50 3,600.00 (1,085.50) Total Protective Services 189.85 4,685.50 3,600.00 (1,085.50) Bad debt - tenant rents 0.00 19.00 0.00 (19.00) Total General Expenses 0.00 19.00 0.00 (19.00) Total Operating Expenses (10,991.74) 121,652.43 136,996.00 15,343.57 Operating Income (Loss) 24,594.44 2,501.31 20,269.00 17,767.69 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 3,500.00 20,766.99 20,000.00 (766.99) Total Other Financial Items 3,500.00 20,766.99 23,000.00 2,233.01 Net Income (Loss) $ 21,094.44 $ (18,265.68) $ (2,731.00) $ 15,534.68 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $940,138 based on budgeted funding. This represents 102% of HUD funding. 102% Denton Housing Authority $ 635.59 Section 8 Utilization Report 97% For the Year Ended December 31, 2017 102% 102% Annual Budget Authority Actual 11,041,483 11,041,4$3 HUD -held Program Reserve X217,246 217,246 PHA -held NRA Balance 22,922 72,922 i Administrative Fee Reserve $ 634.57 Total Funding Available 11,281,651 11,281,651 Baseline Units 1525' % of Year to Monthly HAP payments target is $940,138 based on budgeted funding. This represents 102% of HUD funding. 102% 102% $ 635.59 $ 635.59 97% 97% 102% 102% $ 634.04 $ 634.82 97% 97% 102% 102% $ 634.07 $ 634.57 97% 97% 105% 103% $ 650.90 $ 638.66 98% 97% 104% 103% $ 653.77 $ 641.65 96% 97% 104% 103% $ 657.62 $ 644.27 95% 97% 104% 103% $ 669.51 $ 647.77 94% 96% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $940,138 Colors are in 5% increments Outside edge is>= 25% variance Denton Housing Authority FYE 9/30/17 VMS Equity October November December January February March April May June July August September Total Beginning HAP Equity 39,867.07 29,702.99 9,988.29 38,72929 50,97429 71,702.63 146,034.63 167,169.13 204,545.13 239,133.13 259,009.13 259,009.13 39,867.07 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 993,846.00 993,846.00 988,136.00 975,943.00 9,717,803.00 Interest Income - - - - - - - - - - - - - Void Checks-HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 62.50 - - - - - 1.146.00 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 993.908.50 993.846.00 988.136.00 975.943.00 9.718.949.00 Expenses: HAP Payments 924,264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 953,548.00 956,067.00 9,499,806.94 Concur with HUD 12/31/15 NRP - Fraud Bad Debt HAP Porti, Total Expenses 924264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 953,548.00 956,067.00 - - 9,499,806.94 Net Income (Loss) (10,164.08) (19,714.70) 28,741.00 12,245.00 20,728.34 74,332.00 21,134.50 37,376.00 34,588.00 19,876.00 - - 219,142.06 Ending HAP Equity 29.70299 9.988.29 3572929 50.97429 71.70263 146.03463 167.169.13 204.545.13 239.133.13 259.009.13 259.009.13 259.009.13 259.009.13 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596814.19 610,583.31 662,650.25 605,998.62 612,681.53 612,708.75 622,492.73 644,042.39 644,042.39 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 89,393.00 89,915.00 89,915.00 88,515.00 916,255.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 26.45 29.23 29.54 32.91 268.68 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,353.87 91,623.96 100,373.15 95,109.99 112,483.23 829,063.79 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 62.50 - - 725.00 - - 1,871.00 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,874.36 181,105.91 190,317.38 185,054.53 201,756.14 1,747,458.47 Expenses: Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190,290.16 175,270.55 180,206.48 1,629,752.07 Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190290.16 175270.55 180206.48 - - 1,629,752.07 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,651.63) 6,682.91 27.22 9,783.98 21,549.66 - - 117,706.40 Ending Admin Equity 55jjLd7 579�� 5%14.19 610�"662��50.25 605��9862 6126��1.53 ajaZ58.75 622��92.73 6440��2.39 644��42.39 6��042.39 528�a� T. rlaub & Co., PLIC CER] IFIED PUBLIC ACCOUNIAN]' Accountant's Compilation Report To the Board of Directors: Denton Housing Authority 1225 Wilson Street Denton, TX 76205 Management is responsible for the accompanying financial statements of Denton Housing Authority which comprise the balance sheet as of August 31, 2017, and the income statement for the 1 Month and 11 Months then ended in accordance with the accounting principles generally accepted in the United States of America. We have performed a compilation engagement in accordance with Statements on Standards for Accounting and Review Services promulgated by the Accounting and Review Committee of AICPA. We did not audit or review the financial statements nor were we required to perform any procedures to verify the accuracy or completeness of the information provided by management. Accordingly, we do not express an opinion, a conclusion, nor provide any form of assurance on these financial statements. Management has elected to omit substantially all the disclosures and the statement of cash flows required by accounting principles generally accepted in the United States of America. If the omitted disclosures and statement of cash flows were included in the financial statements, they might influence the user's conclusions about the Company's financial position, results of operations, and cash flows. Accordingly, the financial statements are not designed for those who are not informed about such matters. Management has omitted the management's discussion and analysis that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such missing information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting and for placing the basic financial statements in an appropriate operational, economic, or historical context. Accounting principles generally accepted in the United States of America require for the accrual of revenues and expenses and the reporting of depreciation expense in the period incurred. The Denton Housing Authority has elected not to record these accruals in the accompanying interim financial statements. Management has not determined the effect of these departures on the financial statements. The supplementary information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information is the responsibility of management. The supplementary information was subject to our compilation engagement. We have not audited or reviewed the supplementary information and do not express an opinion, a conclusion, nor provide any assurance on such information. We are not independent with respect to the Denton Housing Authority. Urlaub & Co., PLLC Ada, Oklahoma September 19, 2017 Current Assets Cash -unrestricted Cash -other restricted Accounts receivable - PHA projects Accounts receivable - miscellaneous (net) Accounts receivable - tenants (net) Fraud recovery (net) Accrued interest receivable Investments - unrestricted Prepaid expenses and other assets Inventories (net) Inter program - due from Total Current Assets Property and Equipment Land Buildings Furniture, equipment and machinery - dwellings Furniture, equipment and machinery - administration Accumulated depreciation Construction in progress Notes, loans & mortgages receivable - non-current Net Property and Equipment Total Assets 0.00 Denton Housing Authority 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 Balance Sheet - Combining 1,844,624.92 3,865,427.68 0.00 2,368,907.61 0.00 As of August 31, 2017 0.00 0.00 0.00 0.00 51,461.80 Assets 51,461.80 170,701.73 36,076.58 62,090.68 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total (895,925.49) Fund 0.00 (1,722,933.33) 0.00 (6,066,810.79) $ 821,527.81 $ 642,809.78 $ 977,273.30 $ 0.00 $ 10,478.92 $ 0.00 $ 2,452,089.81 0.00 0.00 0.00 81,827.31 0.00 0.00 81,827.31 132,817.51 0.00 0.00 0.00 0.00 0.00 132,817.51 (35,264.12) 217,202.93 0.00 0.00 0.00 0.00 181,938.81 0.00 0.00 (700.40) 0.00 (137.00) 0.00 (837.40) 2,084.00 0.00 0.00 0.00 0.00 0.00 2,084.00 0.28 11.08 0.00 0.00 0.00 0.00 11.36 0.00 192,607.22 0.00 0.00 0.00 0.00 192,607.22 11,396.31 795.49 209.32 0.00 41.86 0.00 12,442.98 0.00 986.65 6,591.61 0.00 999.73 0.00 8,577.99 2,759.89 51,272.64 0.00 0.00 0.00 0.00 54,032.53 935,321.68 1,105,685.79 983,373.83 81,827.31 11,383.51 0.00 3,117,592.12 0.00 509,949.32 334,002.00 0.00 159,009.13 2,470,000.00 3,472,960.45 205,955.95 1,844,624.92 3,865,427.68 0.00 2,368,907.61 0.00 8,284,916.16 0.00 0.00 0.00 0.00 51,461.80 0.00 51,461.80 170,701.73 36,076.58 62,090.68 0.00 10,059.64 0.00 278,928.63 (255,622.08) (895,925.49) (3,192,329.89) 0.00 (1,722,933.33) 0.00 (6,066,810.79) 0.00 1,561.59 0.00 0.00 7,445.35 0.00 9,006.94 0.00 150,000.00 0.00 0.00 0.00 0.00 150,000.00 121.035.60 1.646.286.92 1.069.190.47 0.00 873.950.20 2.470.000.00 6.180.463.19 $ 1,056,357.28 $ 2,751,972.71 $ 2,052,564.30 $ 81,827.31 $ 885,333.71 $ 2,470,000.00 $ 9,298,055.31 Urlaub & Co., PLLC See Accountant's Compilation Report 4 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Denton Housing Authority Balance Sheet - Combining As of August 31, 2017 Liabilities and Net Position Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Current Liabilities Accrued wage/payroll taxes payable $ 3,416.98 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 0.00 $ 3,416.98 Accrued compensated absences - current portion 19,844.86 1,397.76 6,257.33 0.00 893.71 0.00 28,393.66 Tenant security deposits 0.00 0.00 21,950.00 0.00 4,050.00 0.00 26,000.00 Unearned revenue 1,469.00 0.00 0.00 0.00 0.00 2,458,564.81 2,460,033.81 Inter program - due to (8,779.12) 0.00 2,876.40 0.00 59,935.25 0.00 54,032.53 Total Current Liabilities 15,951.72 1,397.76 31,083.73 0.00 64,878.96 2,458,564.81 2,571,876.98 Long -Term Liabilities Accrued compensated absences - non-current 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Long -Term Liabilities 12,363.67 1,521.42 5,835.98 0.00 907.56 0.00 20,628.63 Total Liabilities 28,315.39 2,919.18 36,919.71 0.00 65,786.52 2,458,564.81 2,592,505.61 Net Position Investment in capital assets 99,105.60 1,479,706.13 1,059,290.47 0.00 853,183.21 2,470,000.00 5,961,285.41 Unrestricted 526,335.99 1,302,402.35 869,479.41 0.00 (41,555.82) (2,458,564.81) 198,097.12 Restricted 23,945.39 0.00 0.00 81,827.31 0.00 0.00 105,772.70 Capital expenditures -contra 16,630.00 16,580.79 9,900.00 0.00 20,766.99 0.00 63,877.78 Net income (loss) 362,024.91 (49,635.74) 76,974.71 0.00 (12,847.19) 0.00 376,516.69 Total Net Position 1,028,041.89 2,749,053.53 2,015,644.59 81,827.31 819,547.19 11,435.19 6,705,549.70 Total Liabilities and Net Position $ 1,056,357.28 $ 2,751,972.71 $ 2,052,564.30 L_81 827.31 $ 885,333.71 $ 2,470,000.00 $9,298,055.31 Urlaub & Co., PLLC See Accountant's Compilation Report 5 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Denton Housing Authority Income Statement -Combining 11 Months Ended 8/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Operating Revenues Net tenant rental revenue $ 0.00 $ 0.00 $ 675,358.00 $ 0.00 $ 135,270.00 $ 0.00 $ 810,628.00 Tenant revenue - other 0.00 0.00 3,120.75 0.00 54.00 0.00 3,174.75 HUD PHA operating grants 11,706,109.00 0.00 0.00 0.00 0.00 0.00 11,706,109.00 Management fees 0.00 55,515.76 0.00 0.00 0.00 0.00 55,515.76 Investment income - unrestricted 302.42 541.64 2,392.90 0.00 7.35 0.00 3,244.31 Fraud recovery 3,867.00 0.00 0.00 0.00 0.00 0.00 3,867.00 Other revenue 947,610.51 354,860.00 5,881.30 0.00 3,000.00 0.00 1,311,351.81 Gain or loss on disposition of capital assets 5,300.00 0.00 0.00 0.00 0.00 0.00 5,300.00 Total Operating Revenues 12,663,188.93 410,917.40 686,752.95 0.00 138,331.35 0.00 13,899,190.63 Operating Expenses Administrative salaries 484,342.45 170,064.25 102,164.19 0.00 23,019.75 0.00 779,590.64 Auditing fees 8,500.00 6,460.00 1,700.00 0.00 340.00 0.00 17,000.00 Management fees 0.00 27.00 46,009.76 0.00 9,506.00 0.00 55,542.76 Advertising and marketing 1,189.57 96.67 367.14 0.00 55.09 0.00 1,708.47 Employee benefits - administrative 162,081.88 40,284.66 35,122.10 0.00 2,909.04 0.00 240,397.68 Office expenses 173,733.10 16,441.85 14,232.80 0.00 6,917.41 0.00 211,325.16 Legal expenses 0.00 4,274.46 0.00 0.00 0.00 0.00 4,274.46 Travel 13,560.08 12,113.78 2,090.07 0.00 266.94 0.00 28,030.87 Other admin. 30,293.12 86,028.00 4,773.16 0.00 1,900.57 0.00 122,994.85 Total Administrative 873,700.20 335,790.67 206,459.22 0.00 44,914.80 0.00 1,460,864.89 Tenant services - other 0.00 140.78 4,645.37 0.00 1,668.91 0.00 6,455.06 Total Tenant Services 0.00 140.78 4,645.37 0.00 1,668.91 0.00 6,455.06 Water 0.00 3,371.59 10,767.49 0.00 2,900.68 0.00 17,039.76 Electricity 0.00 16,164.09 12,462.44 0.00 8,760.14 0.00 37,386.67 Gas 0.00 0.00 4,359.47 0.00 2,869.59 0.00 7,229.06 Sewer 0.00 1,672.33 15,146.21 0.00 3,277.93 0.00 20,096.47 Total Utilities 0.00 21,208.01 42,735.61 0.00 17,808.34 0.00 81,751.96 Maintenance labor 0.00 30,267.33 109,008.22 0.00 12,985.79 0.00 152,261.34 Maintenance materials 1,432.98 7,524.76 55,992.23 0.00 10,089.25 0.00 75,039.22 Maintenance contracts 9,319.48 23,920.27 120,002.80 0.00 24,127.36 0.00 177,369.91 Employee benefits - maintenance 0.00 6,863.56 38,251.11 0.00 10,624.41 0.00 55,739.08 Total Maintenance 10,752.46 68,575.92 323,254.36 0.00 57,826.81 0.00 460,409.55 Urlaub & Co., PLLC See Accountant's Compilation Report 6 Net Income (Loss) $ 362,024.91 $ (49,635.74)$ 76,974.71 $ 0.00 $ (12,847.19) $ 0.00 $ 376,516.69 Urlaub & Co., PLLC See Accountant's Compilation Report 7 Denton Housing Authority Income Statement -Combining 11 Months Ended 8/31/2017 Section 8 Management Heritage Oaks Disaster Funds Pecan Place DPFC Total Fund Property insurance 657.00 5,271.45 10,278.45 0.00 2,216.66 0.00 18,423.56 Liability insurance 1,328.69 1,114.06 315.35 0.00 73.65 0.00 2,831.75 Workmen's compensation 3,407.91 3,228.41 6,093.56 0.00 907.42 0.00 13,637.30 All other insurance 735.45 1,033.96 875.37 0.00 100.61 0.00 2,745.39 Total Insurance 6,129.05 10,647.88 17,562.73 0.00 3,298.34 0.00 37,638.00 Protective services - other contract costs 321.57 4,835.94 2,917.95 0.00 4,875.35 0.00 12,950.81 Total Protective Services 321.57 4,835.94 2,917.95 0.00 4,875.35 0.00 12,950.81 Other general expenses 33,481.45 660.72 0.00 0.00 0.00 0.00 34,142.17 Payments in lieu of taxes 0.00 2,112.43 0.00 0.00 0.00 0.00 2,112.43 Bad debt - tenant rents 0.00 0.00 2,303.00 0.00 19.00 0.00 2,322.00 Total General Expenses 33,481.45 2,773.15 2,303.00 0.00 19.00 0.00 38,576.60 Housing assistance payments 10,451,502.29 0.00 0.00 0.00 0.00 0.00 10,451,502.29 HAP portability -in 908,647.00 0.00 0.00 0.00 0.00 0.00 908,647.00 Total Housing Assistance Payments 11,360,149.29 0.00 0.00 0.00 0.00 0.00 11,360,149.29 Total Operating Expenses 12,284,534.02 443,972.35 599,878.24 0.00 130,411.55 0.00 13,458,796.16 Operating Income (Loss) 378,654.91 (33,054.95) 86,874.71 0.00 7,919.80 0.00 440,394.47 Other Financial Items Replacement of equipment 16,630.00 0.00 0.00 0.00 0.00 0.00 16,630.00 Property betterments & additions 0.00 16,580.79 9,900.00 0.00 20,766.99 0.00 47,247.78 Total Other Financial Items 16.630.00 16.580.79 9.900.00 0.00 20.766.99 0.00 63.877.78 Net Income (Loss) $ 362,024.91 $ (49,635.74)$ 76,974.71 $ 0.00 $ (12,847.19) $ 0.00 $ 376,516.69 Urlaub & Co., PLLC See Accountant's Compilation Report 7 Urlaub & Co., PLLC 803 Rolling Hills Ln Ada, OK 74820-9488 580-332-4802 Supplemental Information Denton Housing Authority Balance Sheet - Section 8 As of August 31, 2017 Assets Current Assets Cash -unrestricted $ 821,527.81 Accounts receivable - PHA projects 132,817.51 Accounts receivable - miscellaneous (net) (35,264.12) Fraud recovery (net) 2,084.00 Accrued interest receivable 0.28 Prepaid expenses and other assets 11,396.31 Inter program - due from 2,759.89 Total Current Assets 935,321.68 Property and Equipment Buildings 205,955.95 Furniture, equipment and machinery - administration 170,701.73 Accumulated depreciation (255,622.08) Net Property and Equipment 121,035.60 Total Assets $ 1,056,357.28 Liabilities and Net Position Current Liabilities Accrued wage/payroll taxes payable $ 3,416.98 Accrued compensated absences - current portion 19,844.86 Unearned revenue 1,469.00 Inter program - due to (8,779.12) Total Current Liabilities 15,951.72 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Restricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 9 12,363.67 12,363.67 28,315.39 99,105.60 526,335.99 23,945.39 16,630.00 362,024.91 1,028,041.89 $ 1,056,357.28 Denton Housing Authority Income Statement -Section 8 Voucher 1 Month Ended 8/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 88,515.00 $ 983,536.00 $ 1,072,051.00 Investment income - unrestricted 33.74 0.00 33.74 Fraud recovery 62.50 62.50 125.00 Other revenue 123,846.72 0.00 123,846.72 Total Operating Revenues 212,457.96 983,598.50 1,196,056.46 Operating Expenses Administrative salaries 52,429.24 0.00 52,429.24 Advertising and marketing 402.25 0.00 402.25 Employee benefits - administrative 12,773.11 0.00 12,773.11 Office expenses 12,814.62 0.00 12,814.62 Travel 307.00 0.00 307.00 Other admin. 2,412.68 0.00 2,412.68 Total Administrative 81,138.90 0.00 81,138.90 Maintenance materials 238.32 0.00 238.32 Maintenance contracts 2,200.00 0.00 2,200.00 Total Maintenance 2,438.32 0.00 2,438.32 Housing assistance payments 0.00 956,460.63 956,460.63 HAP portability -in 118,485.00 0.00 118,485.00 Total Housing Assistance Payments 118,485.00 956,460.63 1,074,945.63 Other general expenses 1,217.44 0.00 1,217.44 Total General Expenses 1,217.44 0.00 1,217.44 Total Operating Expenses 203,279.66 956,460.63 1,159,740.29 Operating Income (Loss) 9,178.30 27,137.87 36,316.17 Other Financial Items Replacement of equipment 0.00 0.00 0.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 0.00 0.00 0.00 Net Income (Loss) $ 9,178.30 $ 27,137.87 $ 36,316.17 Urlaub & Co., PLLC See Accountant's Compilation Report 10 Maintenance materials Denton Housing Authority Income Statement -Section 8 Voucher 1,432.98 3,000.00 1,567.02 1 Month and 11 Months Ended 8/31/2017 2,200.00 9,319.48 5,000.00 Current Year to Total Maintenance 2,438.32 10,752.46 Month Date Budget Variance Operating Revenues 657.00 5,000.00 4,343.00 HUD PHA operating grants $ 1,072,051.00 $ 11,706,109.00 $ 11,320,235.00 $ (385,874.00) Investment income - unrestricted 33.74 302.42 800.00 497.58 Fraud recovery 125.00 3,867.00 2,000.00 (1,867.00) Other revenue 123,846.72 947,610.51 10,000.00 (937,610.51) Gain or loss on disposition of capital assets 0.00 5,300.00 0.00 (5,300.00) Total Operating Revenues 1,196,056.46 12,663,188.93 11,333,035.00 (1,330,153.93) Operating Expenses Total Protective Services 321.57 Administrative salaries 52,429.24 484,342.45 634,178.00 149,835.55 Auditing fees 0.00 8,500.00 12,750.00 4,250.00 Advertising and marketing 402.25 1,189.57 500.00 (689.57) Employee benefits - administrative 12,773.11 162,081.88 256,179.00 94,097.12 Office expenses 12,814.62 173,733.10 202,000.00 28,266.90 Travel 307.00 13,560.08 17,000.00 3,439.92 Other admin. 2,412.68 30,293.12 46,195.00 15,901.88 Total Administrative 81,138.90 873,700.20 1,168,802.00 295,101.80 Maintenance materials 238.32 1,432.98 3,000.00 1,567.02 Maintenance contracts 2,200.00 9,319.48 5,000.00 (4,319.48) Total Maintenance 2,438.32 10,752.46 8,000.00 (2,752.46) Property insurance 0.00 657.00 5,000.00 4,343.00 Liability insurance 0.00 1,328.69 200.00 (1,128.69) Workmen's compensation 0.00 3,407.91 2,200.00 (1,207.91) All other insurance 0.00 735.45 1,500.00 764.55 Total Insurance 0.00 6,129.05 8,900.00 2,770.95 Protective services - other contract costs 321.57 0.00 (321.57) Total Protective Services 321.57 0.00 (321.57) Housing assistance payments 956,460.63 10,451,502.29 10,104,344.00 (347,158.29) HAP portability -in 118,485.00 908,647.00 0.00 (908,647.00) Total Housing Assistance Payments 1,074,945.63 11,360,149.29 10,104,344.00 (1,255,805.29) Other general expenses 1,217.44 33,481.45 10,000.00 (23,481.45) Total General Expenses 1,217.44 33,481.45 10,000.00 (23,481.45) Total Operating Expenses 1,159,740.29 12,284,534.02 11,300,046.00 (984,488.02) Operating Income (Loss) 36,316.17 378,654.91 32,989.00 (345,665.91) Other Financial Items Replacement of equipment 0.00 16,630.00 33,000.00 16,370.00 Property betterments & additions 0.00 0.00 0.00 0.00 Total Other Financial Items 0.00 16,630.00 33,000.00 16,370.00 Net Income (Loss) $ 36,316.17 $ 362,024.91 $ (11.00) $ (362,035.91) Urlaub & Co., PLLC See Accountant's Compilation Report 11 Denton Housing Authority Income Statement -Section 8 Voucher 11 Months Ended 8/31/2017 Administration HAP Total Operating Revenues HUD PHA operating grants $ 1,004,770.00 $ 10,701,339.00 $ 11,706,109.00 Investment income - unrestricted 302.42 0.00 302.42 Fraud recovery 1,933.50 1,933.50 3,867.00 Other revenue 947,610.51 0.00 947,610.51 Gain or loss on disposition of capital assets 5,300.00 0.00 5,300.00 Total Operating Revenues 1,959,916.43 10,703,272.50 12,663,188.93 Operating Expenses Administrative salaries 484,342.45 0.00 484,342.45 Auditing fees 8,500.00 0.00 8,500.00 Advertising and marketing 1,189.57 0.00 1,189.57 Employee benefits - administrative 162,081.88 0.00 162,081.88 Office expenses 173,733.10 0.00 173,733.10 Travel 13,560.08 0.00 13,560.08 Other admin. 30,293.12 0.00 30,293.12 Total Administrative 873,700.20 0.00 873,700.20 Maintenance materials 1,432.98 0.00 1,432.98 Maintenance contracts 9,319.48 0.00 9,319.48 Total Maintenance 10,752.46 0.00 10,752.46 Property insurance 657.00 0.00 657.00 Liability insurance 1,328.69 0.00 1,328.69 Workmen's compensation 3,407.91 0.00 3,407.91 All other insurance 735.45 0.00 735.45 Total Insurance 6,129.05 0.00 6,129.05 Protective services - other contract costs 321.57 0.00 321.57 Total Protective Services 321.57 0.00 321.57 Housing assistance payments 0.00 10,451,502.29 10,451,502.29 HAP portability -in 908,647.00 0.00 908,647.00 Total Housing Assistance Payments 908,647.00 10,451,502.29 11,360,149.29 Other general expenses 33,481.45 0.00 33,481.45 Total General Expenses 33,481.45 0.00 33,481.45 Total Operating Expenses 1,833,031.73 10,451,502.29 12,284,534.02 Operating Income (Loss) 126,884.70 251,770.21 378,654.91 Other Financial Items Replacement of equipment 16,630.00 0.00 16,630.00 Property betterments & additions 0.00 0.00 0.00 Total Other Financial Items 16,630.00 0.00 16,630.00 Net Income (Loss) $ 110,254.70 $ 251,770.21 $ 362,024.91 Urlaub & Co., PLLC See Accountant's Compilation Report 12 Denton Housing Authority Balance Sheet - Management Fund As of August 31, 2017 Assets Current Assets 509,949.32 Cash -unrestricted $ 642,809.78 Accounts receivable - miscellaneous (net) 217,202.93 Accrued interest receivable 11.08 Investments - unrestricted 192,607.22 Prepaid expenses and other assets 795.49 Inventories (net) 986.65 Inter program - due from 51,272.64 Total Current Assets 1,105,685.79 Property and Equipment Land 509,949.32 Buildings 1,844,624.92 Furniture, equipment and machinery - administration 36,076.58 Accumulated depreciation (895,925.49) Construction in progress 1,561.59 Notes, loans & mortgages receivable - non-current 150,000.00 Net Property and Equipment 1,646,286.92 Total Assets $ 2,751,972.71 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 1,397.76 Total Current Liabilities 1,397.76 Long -Term Liabilities Accrued compensated absences - non-current Total Long -Term Liabilities Total Liabilities Net Position Investment in capital assets Unrestricted Capital expenditures -contra Net income (loss) Total Net Position Total Liabilities and Net Position Urlaub & Co., PLLC See Accountant's Compilation Report 13 1,521.42 1,521.42 2,919.18 1,479,706.13 1,302,402.35 16,580.79 (49,635.74) 2,749,053.53 $ 2,751,972.71 Denton Housing Authority Income Statement - Management Fund 1 Month and 11 Months Ended 8/31/2017 Current Month Year to Date Budget Variance Operating Revenues Management fees $ 5,263.37 $ 55,515.76 $ 63,399.00 $ 7,883.24 Investment income - unrestricted 24.91 541.64 300.00 (241.64) Other revenue 12,300.00 354,860.00 1,424,600.00 1,069,740.00 Total Operating Revenues 17,588.28 410,917.40 1,488,299.00 1,077,381.60 Operating Expenses Administrative salaries 24,203.71 170,064.25 217,231.00 47,166.75 Auditing fees 0.00 6,460.00 1,360.00 (5,100.00) Management fees 27.00 27.00 0.00 (27.00) Advertising and marketing 0.00 96.67 0.00 (96.67) Employee benefits - administrative 3,985.57 40,284.66 55,812.00 15,527.34 Office expenses 947.82 16,441.85 30,500.00 14,058.15 Legal expenses 470.96 4,274.46 50,000.00 45,725.54 Travel 265.32 12,113.78 10,000.00 (2,113.78) Other admin. 7,882.35 86,028.00 96,260.00 10,232.00 Total Administrative 37,782.73 335,790.67 461,163.00 125,372.33 Tenant services - other 0.00 140.78 0.00 (140.78) Total Tenant Services 0.00 140.78 0.00 (140.78) Water 123.47 3,371.59 5,000.00 1,628.41 Electricity 1,932.93 16,164.09 17,000.00 835.91 Sewer 114.43 1,672.33 2,000.00 327.67 Total Utilities 2,170.83 21,208.01 24,000.00 2,791.99 Maintenance labor 3,759.77 30,267.33 38,164.00 7,896.67 Maintenance materials 508.07 7,524.76 8,000.00 475.24 Maintenance contracts 1,128.32 23,920.27 38,600.00 14,679.73 Employee benefits - maintenance 604.37 6,863.56 6,324.00 (539.56) Total Maintenance 6,000.53 68,575.92 91,088.00 22,512.08 Property insurance 0.00 5,271.45 2,700.00 (2,571.45) Liability insurance 0.00 1,114.06 100.00 (1,014.06) Workmen's compensation 0.00 3,228.41 1,000.00 (2,228.41) All other insurance 0.00 1,033.96 900.00 (133.96) Total Insurance 0.00 10,647.88 4,700.00 (5,947.88) Protective services - other contract costs 599.14 4,835.94 5,500.00 664.06 Total Protective Services 599.14 4,835.94 5,500.00 664.06 Other general expenses 0.00 660.72 5,000.00 4,339.28 Payments in lieu of taxes 0.00 2,112.43 4,800.00 2,687.57 Total General Expenses 0.00 2,773.15 9,800.00 7,026.85 Total Operating Expenses 46,553.23 443,972.35 596,251.00 152,278.65 Operating Income (Loss) (28,964.95) (33,054.95) 892,048.00 925,102.95 Other Financial Items Replacement of equipment 0.00 0.00 40,000.00 40,000.00 Property betterments & additions 7,000.00 16,580.79 40,000.00 23,419.21 Total Other Financial Items 7,000.00 16,580.79 80,000.00 63,419.21 Net Income (Loss) $ (35,964.95) $ (49,635.74) $ 812,048.00 $ 861,683.74 Urlaub & Co., PLLC See Accountant's Compilation Report 14 Denton Housing Authority Balance Sheet - Heritage Oaks As of August 31, 2017 Assets Current Assets Cash -unrestricted $ 977,273.30 Accounts receivable - tenants (net) (700.40) Prepaid expenses and other assets 209.32 Inventories (net) 6,591.61 Total Current Assets 983,373.83 Property and Equipment Land 334,002.00 Buildings 3,865,427.68 Furniture, equipment and machinery - administration 62,090.68 Accumulated depreciation (3,192,329.89) Net Property and Equipment 1,069,190.47 Total Assets $ 2,052,564.30 Liabilities and Net Position Current Liabilities Accrued compensated absences current portion $ 6,257.33 Tenant security deposits 21,950.00 Inter program - due to 2,876.40 Total Current Liabilities 31,083.73 Long -Term Liabilities Accrued compensated absences non-current 5,835.98 Total Long -Term Liabilities 51835.98 Total Liabilities 36,919.71 Net Position Investment in capital assets 1,059,290.47 Unrestricted 869,479.41 Capital expenditures -contra 9,900.00 Net income (loss) 76,974.71 Total Net Position 2,015,644.59 Total Liabilities and Net Position $ 2,052,564.30 Urlaub & Co., PLLC See Accountant's Compilation Report 15 Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 11 Months Ended 8/31/2017 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 62,395.00 $ 675,358.00 $ 722,190.00 $ 46,832.00 Tenant revenue - other 244.00 3,120.75 1,500.00 (1,620.75) Investment income - unrestricted 30.52 2,392.90 1,500.00 (892.90) Other revenue 0.00 5,881.30 2,500.00 (3,381.30) Total Operating Revenues 62,669.52 686,752.95 727,690.00 40,937.05 Operating Expenses Administrative salaries 12,598.49 102,164.19 137,250.00 35,085.81 Auditing fees 0.00 1,700.00 2,550.00 850.00 Management fees 4,271.33 46,009.76 53,599.00 7,589.24 Advertising and marketing 0.00 367.14 0.00 (367.14) Employee benefits - administrative 3,291.38 35,122.10 58,650.00 23,527.90 Office expenses 1,002.06 14,232.80 26,500.00 12,267.20 Legal expenses 0.00 0.00 1,000.00 1,000.00 Travel 61.40 2,090.07 7,000.00 4,909.93 Other admin. 251.19 4,773.16 14,300.00 9,526.84 Total Administrative 21,475.85 206,459.22 300,849.00 94,389.78 Tenant services - other 376.06 4,645.37 6,000.00 1,354.63 Total Tenant Services 376.06 4,645.37 6,000.00 1,354.63 Water 1,335.98 10,767.49 15,000.00 4,232.51 Electricity 1,640.79 12,462.44 15,000.00 2,537.56 Gas 321.83 4,359.47 6,000.00 1,640.53 Sewer 1,793.66 15,146.21 21,000.00 5,853.79 Total Utilities 5,092.26 42,735.61 57,000.00 14,264.39 Maintenance labor 13,484.25 109,008.22 145,455.00 36,446.78 Maintenance materials 1,512.93 55,992.23 52,000.00 (3,992.23) Maintenance contracts 10,793.30 120,002.80 115,500.00 (4,502.80) Employee benefits - maintenance 3,306.57 38,251.11 67,931.00 29,679.89 Total Maintenance 29,097.05 323,254.36 380,886.00 57,631.64 Property insurance 0.00 10,278.45 7,350.00 (2,928.45) Liability insurance 0.00 315.35 300.00 (15.35) Workmen's compensation 0.00 6,093.56 3,500.00 (2,593.56) All other insurance 0.00 875.37 2,300.00 1,424.63 Total Insurance 0.00 17,562.73 13,450.00 (4,112.73) Protective services - other contract costs 215.85 2,917.95 2,600.00 (317.95) Total Protective Services 215.85 2,917.95 2,600.00 (317.95) Bad debt - tenant rents 0.00 2,303.00 0.00 (2,303.00) Total General Expenses 0.00 2,303.00 0.00 (2,303.00) Total Operating Expenses 56,257.07 599,878.24 760,785.00 160,906.76 Operating Income (Loss) 6,412.45 86,874.71 (33,095.00) (119,969.71) Other Financial Items Replacement of equipment 0.00 0.00 5,000.00 5,000.00 Property betterments & additions 0.00 9,900.00 101,000.00 91,100.00 Total Other Financial Items 0.00 9,900.00 106,000.00 96,100.00 Urlaub & Co., PLLC See Accountant's Compilation Report 16 Net Income (Loss) Denton Housing Authority Income Statement - Heritage Oaks 1 Month and 11 Months Ended 8/31/2017 Current Month Year to Date $ 6,412.45 $ 76,974.71 Urlaub & Co., PLLC See Accountant's Compilation Report 17 Budget $ (139,095.00) Variance $ (216,069.71) Denton Housing Authority Balance Sheet - Disaster Funds As of August 31, 2017 Assets Current Assets Cash -other restricted $ 81,827.31 Total Current Assets 81,827.31 Property and Equipment Net Property and Equipment 0.00 Total Assets $ 81,827.31 Liabilities and Net Position Current Liabilities Total Current Liabilities 0.00 Total Liabilities 0.00 Net Position Restricted 81,827.31 Total Net Position 81,827.31 Total Liabilities and Net Position $ 81,827.31 Urlaub & Co., PLLC See Accountant's Compilation Report 18 Denton Housing Authority Income Statement - Disaster Funds 1 Month and 11 Months Ended 8/31/2017 Current Month Year to Date Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 19 Denton Housing Authority Balance Sheet - Denton Public Facility Corp. As of August 31, 2017 Assets Current Assets Total Current Assets 0.00 Property and Equipment Land 2,470,000.00 Net Property and Equipment 2,470,000.00 Total Assets $ 2,470,000.00 Liabilities and Net Position Current Liabilities Unearned revenue $ 2,458,564.81 Total Current Liabilities 2,458,564.81 Total Liabilities 2,458,564.81 Net Position Investment in capital assets 2,470,000.00 Unrestricted (2,458,564.81) Total Net Position 11,435.19 Total Liabilities and Net Position $ 2,470,000.00 Urlaub & Co., PLLC See Accountant's Compilation Report 20 Denton Housing Authority Income Statement - Denton Public Facility Corp. 1 Month and 11 Months Ended 8/31/2017 Current Month Year to Date Operating Revenues Total Operating Revenues Operating Expenses Total Operating Expenses Operating Income (Loss) Other Financial Items Replacement of equipment Property betterments & additions Total Other Financial Items Net Income (Loss) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 $ 0.00 $ 0.00 Urlaub & Co., PLLC See Accountant's Compilation Report 21 Denton Housing Authority Balance Sheet - Pecan Place As of August 31, 2017 Assets Current Assets 159,009.13 Cash -unrestricted $ 10,478.92 Accounts receivable - tenants (net) (137.00) Prepaid expenses and other assets 41.86 Inventories (net) 999.73 Total Current Assets 11,383.51 Property and Equipment Land 159,009.13 Buildings 2,368,907.61 Furniture, equipment and machinery dwellings 51,461.80 Furniture, equipment and machinery administration 10,059.64 Accumulated depreciation (1,722,933.33) Construction in progress 7,445.35 Net Property and Equipment 873,950.20 Total Assets $ 885,333.71 Liabilities and Net Position Current Liabilities Accrued compensated absences - current portion $ 893.71 Tenant security deposits 4,050.00 Inter program - due to 59,935.25 Total Current Liabilities 64,878.96 Long -Term Liabilities Accrued compensated absences - non-current 907.56 Total Long -Term Liabilities 907.56 Total Liabilities 65,786.52 Net Position Investment in capital assets 853,183.21 Unrestricted (41,555.82) Capital expenditures -contra 20,766.99 Net income (loss) (12,847.19) Total Net Position 819,547.19 Total Liabilities and Net Position $ 885,333.71 Urlaub & Co., PLLC See Accountant's Compilation Report 22 Denton Housing Authority Income Statement - Pecan Place 1 Month and 11 Months Ended 8/31/2017 Current Month Year to Date Budget Variance Operating Revenues Net tenant rental revenue $ 14,172.00 $ 135,270.00 $ 157,055.00 $ 21,785.00 Tenant revenue - other 5.00 54.00 200.00 146.00 Investment income - unrestricted 0.61 7.35 10.00 2.65 Other revenue 0.00 3,000.00 0.00 (3,000.00) Total Operating Revenues 14,177.61 138,331.35 157,265.00 18,933.65 Operating Expenses Administrative salaries 2,547.08 23,019.75 27,502.00 4,482.25 Auditing fees 0.00 340.00 340.00 0.00 Management fees 992.04 9,506.00 9,800.00 294.00 Advertising and marketing 0.00 55.09 0.00 (55.09) Employee benefits - administrative 249.71 2,909.04 4,342.00 1,432.96 Office expenses 448.37 6,917.41 14,000.00 7,082.59 Legal expenses 0.00 0.00 500.00 500.00 Travel 12.28 266.94 1,400.00 1,133.06 Other admin. 144.62 1,900.57 5,240.00 3,339.43 Total Administrative 4,394.10 44,914.80 63,124.00 18,209.20 Tenant services - other 44.47 1,668.91 1,200.00 (468.91) Total Tenant Services 44.47 1,668.91 1,200.00 (468.91) Water 0.00 2,900.68 3,000.00 99.32 Electricity 0.00 8,760.14 7,000.00 (1,760.14) Gas 191.05 2,869.59 3,000.00 130.41 Sewer 0.00 3,277.93 3,500.00 222.07 Total Utilities 191.05 17,808.34 16,500.00 (1,308.34) Maintenance labor 1,614.01 12,985.79 17,740.00 4,754.21 Maintenance materials 557.93 10,089.25 7,000.00 (3,089.25) Maintenance contracts 957.50 24,127.36 19,500.00 (4,627.36) Employee benefits - maintenance 810.21 10,624.41 5,482.00 (5,142.41) Total Maintenance 3,939.65 57,826.81 49,722.00 (8,104.81) Property insurance 0.00 2,216.66 1,300.00 (916.66) Liability insurance 0.00 73.65 50.00 (23.65) Workmen's compensation 0.00 907.42 800.00 (107.42) All other insurance 0.00 100.61 700.00 599.39 Total Insurance 0.00 3,298.34 2,850.00 (448.34) Protective services - other contract costs 189.85 4,875.35 3,600.00 (1,275.35) Total Protective Services 189.85 4,875.35 3,600.00 (1,275.35) Bad debt - tenant rents 0.00 19.00 0.00 (19.00) Total General Expenses 0.00 19.00 0.00 (19.00) Total Operating Expenses 8,759.12 130,411.55 136,996.00 6,584.45 Operating Income (Loss) 5,418.49 7,919.80 20,269.00 12,349.20 Other Financial Items Replacement of equipment 0.00 0.00 3,000.00 3,000.00 Property betterments & additions 0.00 20,766.99 20,000.00 (766.99) Total Other Financial Items 0.00 20,766.99 23,000.00 2,233.01 Net Income (Loss) $ 5,418.49 $ (12,847.19) $ (2,731.00) $ 10,116.19 Urlaub & Co., PLLC See Accountant's Compilation Report 23 Denton Housing Authority FYE 9/30/17 VMS Equity October November December January February March April May June July August September Total Beginning HAP Equity 39,867.07 29,702.99 9,988.29 38,72929 50,97429 71,702.63 146,034.63 167,169.13 204,545.13 239,133.13 259,734.13 286,872.00 39,867.07 Revenues: Annual Contributions 914,000.00 959,961.00 959,961.00 969,132.00 969,132.00 993,846.00 993,846.00 993,846.00 988,136.00 975,943.00 983,536.00 10,701,339.00 Interest Income - - - - - - - - - - - - - Voitl Checks-HAP - - - - - - - - - - - - - FES Forlebures - - - - - - - - - - - - - Fraud Income (HAP) 100.00 354.50 529.00 - - 100.00 62.50 - - 725.00 62.50 - 1.933.50 Total Revenue 914.100.00 960.315.50 960.490.00 969.132.00 969.132.00 993.946.00 993.908.50 993.846.00 988.136.00 976.668.00 983.598.50 10.703.272.50 Expenses: HAP Payments 924,264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 953,548.00 956,067.00 956,460.63 10,456,267.57 Concur with HUD 12/31/15 NRP - Frautl Bad Debt HAP Porti, Total Expenses 924264.08 980,030.20 931,749.00 956,887.00 948,403.66 919,614.00 972,774.00 956,470.00 953,548.00 956,067.00 956,460.63 - 10,456267.57 Net Income (Loss) (10,164.08) (19,714.70) 28,741.00 12,245.00 20,728.34 74,332.00 21,134.50 37,376.00 34,588.00 20,601.00 27,137.87 - 247,004.93 Ending HAP Equity 29.70299 9.988.29 3572929 50.97429 71.70263 146.03463 167.169.13 204.545.13 239.133.13 259.734.13 286.87200 -.M.872.00 October November December January February March April May June July August September Total Beginning Admin Equity 526,335.99 553,632.47 579,794.61 596,814.19 610,583.31 662,650.25 605,998.62 612,681.53 612,708.75 622,492.73 644,042.39 653,220.69 526,335.99 Revenues: - Annual Contributions 96,727.00 94,581.00 94,582.00 91,617.00 91,617.00 89,393.00 89,393.00 89,915.00 89,915.00 88,515.00 88,515.00 1,004,770.00 Interest Income 22.94 21.31 27.30 28.11 23.40 27.49 26.45 29.23 29.54 32.91 33.74 302.42 Other Income 39,726.49 48,045.47 57,413.47 70,727.39 86,206.77 127,353.87 91,623.96 100,373.15 95,109.99 112,483.23 123,846.72 952,910.51 Fraud Income (Admin) 100.00 354.50 529.00 - - 100.00 62.50 - - 725.00 62.50 - 1,933.50 Total Revenue 136,576.43 143,002.28 152,551.77 162,372.50 177,847.17 216,874.36 181,105.91 190,317.38 185,054.53 201,756.14 212,457.96 1,959,916.43 Expenses: Admin Expenses 109,279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190,290.16 175,270.55 180,206.48 203,279.66 1,833,031.73 Depreciation Expense - - - - - - - - - - - - - Total Expenses 109279.95 116,840.14 135,532.19 148,603.38 125,780.23 273,525.99 174,423.00 190290.16 175270.55 180206.48 203279.66 - 1,833,031.73 Net Income (Loss) 27,296.48 26,162.14 17,019.58 13,769.12 52,066.94 (56,651.63) 6,682.91 27.22 9,783.98 21,549.66 9,178.30 - 126,884.70 Ending Admin Equity 553��3247 579�� 5%14.19 610�" 662�� 605��9862 6126��1.53 6127��8.75 622��92.73 6440��2.39 653�� 65��22069528�71.91 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec % of Year to Monthly HAP payments target is $940,138 based on budgeted funding. This represents 102% of HUD funding. 102% Denton Housing Authority $ 635.59 Section 8 Utilization Report 97% For the Year Ended December 31, 2017 102% 102% Annual Budget Authority Actual 11,041,483 11,041,4$3 HUD -held Program Reserve X217,246 217,246 PHA -held NRA Balance 22,922 72,922 i Administrative Fee Reserve $ 634.57 Total Funding Available 11,281,651 11,281,651 Baseline Units 1525' % of Year to Monthly HAP payments target is $940,138 based on budgeted funding. This represents 102% of HUD funding. 102% 102% $ 635.59 $ 635.59 97% 97% 102% 102% $ 634.04 $ 634.82 97% 97% 102% 102% $ 634.07 $ 634.57 97% 97% 105% 103% $ 650.90 $ 638.66 98% 97% 104% 103% $ 653.77 $ 641.65 96% 97% 104% 103% $ 657.62 $ 644.27 95% 97% 104% 103% $ 669.51 $ 647.77 94% 96% 104% 103% $ 674.51 $ 651.01 93% 96% Form Updated 20150309 Denton Housing Authority Monthly HAP Payments, Budgeted Target = $940,138 Colors are in 5% increments Outside edge is>= 25% variance Operating Income Management Fees Developer Fee Rental Properties Section 8 Rents Other Income Admin Fees Earned S18 Fraud pymts. Port. Admin, Fees Interest Income Total Income Expenses Administration Salaries Legal Staff Training Travel Accounting/Audit Sundry Total Administration Program Services Total Tenant Services Water Electricity Gas Other Total Utilities Salaries Materials Contract Costs Security Contract Total Maintenance General Insurance Employee Benefits Other General Expenses Mgmt Fees 7% Collection Loss 7% Total General Nonroutine Items Replacement of Equip. Payment/Office Bldg, Total Nonroutine Items otal Operating Expenses Net Operating Income Section 8 2013-201 DENTON HOUSING AUTHORITY OPERATING BUDGET COMPARISONS FY OCTOBER 2013 - SEPTEMBER 2014 Heritage Oaks Management Fund 4 2013-2014 2013-2014 I $ 516,753.00 $ 849,483.00 $ 15,000.00 $ 15,000.00 $ 150.00 $ 879,633.00 $ 546,563.38 $ 5,000.00 $ 7,000.00 $ 24,000.00 $ 110,000.00 $ 692,563.38 5 2,000.00 s 96,000.00 $ - $ 935,396.19 $ (55,763.191 $ 16,027.08 i $ 7,000.00 $ 5,000.00 $ 5,000.00 $ 36,173.00 $ 10,000.00 $ 9,000.00 $ 124,832.81 $ 1,000.00 $ - $ 134,832.81 $ 2,000.00 $ 96,000.00 $ 98,000.00 $ 935,396.19 $ (55,763.191 $ 3,000.001 $ 500.00 $ 520,253.00 $ 128,581.44 $ 1,000.00 $ 1,000.00 $ 2,500.00 $ 8,000.00 $ 25,000.00 $ 166,081.44 $ 5,000.00 $ 5,000.00 $ 12,000.00 $ 15,000.00 $ 5,00100 $ 15,000.00 $ 47,000.00 $ i 79,994.72 $ 25,000.00 $ 50,000.00 $ 500.00 $ 155,494.72 $ 16,027.08 i $ 7,000.00 $ 46,154.83 $ 100.00 $ 36,173.00 $ 25,837.00 $ 115,264.83 $ 5,000.00 $ 5,000.00 $ 493,840.99 $ 26,412.01 $ 45,636.00 $ 50,000.00 $ 27,000.00 $ 96,000.00 $ 200.00 11 $ 218,836.00 $ 30,786.08 $ 20,000.00 $ 2,000.00 $ 5,000.00 $ 6,000.00 $ 15,000.00 $ 78,786.08 $ 5,000.00 $ 18,000.00 $ 2,000.001, $ 26,000.00 $ 12,074.92 $ 10,000.00 $ 40,000.00 $ 2,000.00 $ 64,074.92 $ 6,000.00 $ 9,027.08 $ 1,000.00 $ 36,173.00 $ 184,888.08 $ 16,027.08 $ 1,000.00 $ 180,014.72 $ 1,000.00 $ 36,173.00 $ 184,888.08 $ 33,947.92 Program Totals 2013-2014 $ 516,753.00 $ 45,636.00 $ 50,000.00 $ 27,000.00 $ 96,000.00 $ 3,000.00 $ 849,483.00 $ 15,000.00 $ 15,000.00 $ 850.00 $ 1,618,722.00 $ 705,930.901 $ 21,000.00 $ 8,000.00 $ 14,500.00 $ 38,000.00 $ 150,000.00 $ 937,430.90 $ 5,000.00 $ 5,000.00 $ 17,000.00 $ 33,000.00 $ 5,000.00 $ 17,000.00 $ 72,000.00 $ 92,069.64 $ 40,000.00 $ 95,000.00 $ 2,500.00 $ 229,569.64 $ 22,000.00 $ 180,014.72 $ 2,100.00 $ 36,173.00 $ 25,837.00 $ 266,124.72 $ 8,000.00 $ 96,000.00 $ 104,000.00 $ 1,614,125.26 $ 4,596.74 Operating Income Management Fees Developer Fee Rental Properties Section 8 Rents Other Income Admin Fees Earned S18 Fraud pymts. Port. Admin. Fees Interest Income Total Income Expenses Administration Salaries Legal Office Expenses Travel Audit Other Admin Total Administration Tenant Services Program Services Total Tenant Services Water Electricity Gas Other Total Utilities Salaries Materials Contract Costs Security Contract Total Maintenance Insurance Employee Benefits Other General Expenses Mgmt Fees 7% Collection Loss 7% Total General DENTON HOUSING AUTHORITY OPERATING BUDGET COMPARISONS FY OCTOBER 2014- SEPTEMBER 2015 Section 8 1 Management Fund I Heritage Oaks $ 967,511.00 $ 5,000.00 $ 60,000.00 $ 100.00 $ 1,032,611.00 $ 528,471.37 $ - $ 186,000.00 $ 8,000.00 $ 12,000.00 $ 38,000.001 $ 772,471.37 $ 52,905.00 $ 36,000.00 $ 96,000.00 $ 100.00 $ 185,005.00 $ 19,000.44 $ 5,000.00 $ 19,000.00 $ 5,000.00 $ 3,500.00 $ 10,000.00 $ 61,500.44 $ 5,000.00 $ 25,000.00 $ 30,000.00 $ 9,000.00 $ 126,625.94 $ 1,000.00 $ 136,625.94 $ 6,000.00 $ 17,000.00 $ 3,000.00 $ 26,000.00 $ 14,577.43 $ 10,000.00 $ 40,000.00 $ 2,500.00 $ 67,077.43 $ 7,000.00 $ 7,710.23 $ 1,000.00 $ 767,700.00 $ 4,000.00 $ 15,710.23 $ 766,200.00 $ 1,000.00 $ 500.00 $ 767,700.00 $ 110,567.13 $ 1,000.00 $ 25,000.00 $ 7,000.00 $ 4,000.00 $ 9,000.00 $ 156,567.13 $ 6,000.00 $ 6,000.00 $ 12,000.00 $ 20,000.00 $ 7,000.00 $ 20,000.00 I $ 59,000.00 $ 1117,535.88 $ 45,000.00 $ 60,000.00 $ 1,000.00 $ 223,535.88 $ 7,000.00 $ 53,087,36 $ - $ 42,084.00 $ 38,310.00 $ 140,481.36 Par -2n Pine --a $ 139,968.00 $ 100.00 $ 30.00 $ 140,098.00 $ 25,313.04 $ 1,000.00 $ 9,000.00 $ 1,500.00 $ 2,500.00 $ 3,000.00 $ 42,313.04 1 $ 500.00 $ 500.00 $ 3,000.00 $ 7,000.00 $ 4,000.00 $ 3,000.00 $ 17,000.00 $ 12,555.00 $ 2,500.00 $ 20,000.00 $ 550.00 $ 35,605.00 $ 7,000.00 $ 3,083.39 $ 9,798.00 $ 6,998.00 $ 26,879.39 Program Totals $ 906,168.00 $ 52,905.00 $ 36,000.00 $ 96,000.00 $ 1,100.00 $ 967,511.00 $ 5,000.00 $ 60,000.00 $ 730.00 $ 2,125,414.00 $ 683,351.98 $ 7,000.00 $ 239,000.00 $ 21,500.00 $ 22,000.00 $ 60,000.00 $ 1,032,851.98 $ 6,500.00 $ 6,500.00 $ 21,000.00 $ 44,000.00 $ 11,000.00 $ 26,000.00 $ 102,000.00 $ 144,668.31 $ 62,500.00 $ 145,000.00 $ 4,050.00 $ 356,218.31 $ 30,000.00 $ 190,506.92 $ 2,000.00 $ 51,882.00 $ 45,308.00 $ 319,696.92 V OF FY lonroutine Items Replacement of Equip. $ 2,000.00 Payment/Office Bldg. $ - Total Nonroutine Items $ 2,000.00 otal Operating Expenses $ 941,097.31 Net Operating Income 1 $ 91,513.69 DENTON DOUSING AUTHORITY ERATING BUDGET COMPARISONS OCTOBER 2014- SEPT =EMBER 2015 $ 3,000.00 $ 10,000.00 $ 5,000.00 $ 3,000.00 $ 10,000.00 $ 5,000.00 $ 173,288.10 $ 595,584.37 $ 127,297.43 $ 11,716.90 1 $ 172,115.63 $ 12,800.57 $ 20,000.00 $ 20,000.00 $ 1,837,267.21 $ 288,146.79 ncome Operating Income Management Fees Developer Fee Rental Properties Section 8 Rents Other Income Admin Fees Earned S/8 Fraud pymis. Port. Admin. Fees Interest Income Total Income Expenses Administration Salaries Legal Office Expenses Travel Audit Other Admin Total Administration Tenant Services Program Services Total Tenant Services Utilities Water Electricity Gas Other Total Utilities Salaries Materials Contract Costs Security Contract Total Maintenance Insurance Employee Benefits Other General Expenses Mgmt Fees 7% Collection Loss 7% Total General Nonroutine Items Property Bett & Improv Replacement of Equip. Total Nonroutine Items Total Operating Expenses Section 8 $ 1,010,807.00 $ 2,000.00 $ 10,000.00 $ 100.00 $ 1,022,907.00 DENTON HOUSING AUTHORITY OPERATING BUDGET COMPARISONS FY OCTOBER 2015- SEPTEMBER 2016 Management Fund Heritage Oaks $ 597,204.35 $ - $ 203,500.00 $ 17,000.00 $ 12,000.00 $ 43,000.00 $ 872,704.35 $ 56,544.00 $ 80,000.00 $ 36,000.00 $ 126,000.00 $ 100.00 $ 298,644.00 $ 18,720.60 $ 10,000.00 $ 31,800.00 $ 101000.00 $ 3,500.00 $ 9,500.00 $ 83,520.60 $ - $ - $ - $ - $ - $ $ 5,000.00 $ 5,000.00 $ - $ 10,000.00 $ 8,411.00 $ 189,391.30 $ 1,000.00 $ - $ - $ 198,802.30 $ - $ 3,000.00 $ - $ 3,000.00 $ 1,084,506.65 $ 7,500.00 $ 18,000.00 $ 3,000.00 $ 28,500.00 $ 15,014.76 $ 10,000.00 $ 53,500.00 $ 3,500.00 $ 82,014.76 $ 5,000.00 $ 10,581.48 $ 5,000.00 $ - $ 267,982.37 $ 20,581.48 $ - $ 10,000.00 $ 10,000.00 $ 20,000.00 1 $ 234,616.84 Net Operating Income 1 $ (61,599.65)1 $ $ 667,800.001 $ 1,000.00I $ 400.00 $ 669,200.00 $ 114,352.37 $ 1,000.00 $ 27,000.00 $ 7,000.00 $ 4,000.00 $ 11,000.00 $ 164,352.37 $ 6,000.00 $ 6,000.00 $ 18,000.00 $ 17,000.00 $ 8,500.00 $ 23,000.00 $ 66,500.00 $ 124,982.37 $ 50,000.00 $ 90,000.00 $ 3,000.00 $ 267,982.37 $ 13,000.00 $ 82,464.90 $ - $ 46,746.00 $ - $ 142,210.90 $ 18,000.00 $ $ 18,000.00 1 $ 665,045.64 64,027.16 ! $ Pecan Place $ 139,968.00 $ 100.00 $ 30.00 $ 140,098.00 $ 25,859.97 $ 500.00 $ 10,500.00 $ 1,400.00 $ 2,500.00 $ 5,500.00 $ 46,259.97 $ 1,200.00 $ 1,200.00 $ 3,000.00 $ 7,000.00 $ 4,500.00 $ 3,000.00 $ 17,500.00 $ 12,931.67 $ 3,500.00 $ 20,000.00 $ 2,000.00 $ 36,431.67 $ 2,330.00 $ 9,287.41 $ - $ 9,798.00 $ 2,799.00 $ 24,214.41 $ 3,000.00 $ - $ 3,000.00 1 $ 130,606.05 4,154.36' $ 9,491.95 Proaram Totals $ 807,768.00 $ 56,s44.00 $ 80,000.00 $ 36,000.00 $ 126,000.00 $ 1,100.00 $ 1,010,807.00 $ 2,000.00 $ 10,000.00 $ 630.00 $ 2,130,849.00 $ 756,137.29 $ 11,500.00 $ 272,800.00 $ 35,400.00 $ 22,000.00 $ 69,000.00 $ 1,166,837.29 $ 7,200.001 $ 7,200.00 $ 28,500.00 $ 42,000.00 $ 13,000.00 $ 29,000.00 $ 112,500.00 $ 152,928.80 $ 68,500.00 $ 168,500.00 $ 8,500.00 $ 398,428.80 $ 28,741.00 $ 291,725.09 $ 6,000.on $ 56,544.00 $ 2,799.00 $ 385,609.09 $ - $ 34,000.00 $ 10,000.00 $ 44,000.00 $ 2,114,775.19 $ 16,073.81 Denton Housing Authority 2016-17 Budget Printed 11/7/2017, 4:21 PM SECTION 8 HERITAGE OAKS MANAGEMENT FUND PECAN PEACE TOTAL �. _, 2016-17...... _ ... _.,.u. _ r.�, ...... 2016-17 ,,.. .., . .... ,.,. .. ..... wa.,. m ,o�, 2016-17, . 2016-17 .... 2016-.. 2016-17 Budget Budget Budget �. .. Budget Budget INCOME.�� ww� ... ���� ������� �� � ������ � ��w , ,...,. � ry � wa � ��� � w ,.._ . � . ...�. Net Tenant Rental Income.._. N .,._ . _ . m .., ... , „760,200 �� 160 260 r ... 4 �.. �. ., 92. 0,460 Tenant Revenue - Other .,,,.� m 1,500 ���������,,.waNA. _� 2.0� . �... . .... ., - ,.., 1,700 � Management Fees„,. .,...,.. ®._.. 0 63�399 0 6339,9 Bond Issuance (Veranda) �. 162,000. . o 162,000 Annual Income (Veranda)27,000 27,000 Ojala Developer Fee.,�.,. ����566,000 566,000 Bond Issuance (Ofata) __.._ �.....�, .���. ���� ���.��. 464 000 ..w, oa,�,,.�...... ������ w,..,.,m 464 000 � Annual Income Oiala] �11,11-11- ,....... �.. _ . 11. � ����� . - 46 000 � ..�.. _.... , m�. 46,000 0.0 Rental Properties33,600 ® ®. _...m_- .r. .... ®... � ..a 33,60 Season 8 Rents .a..r.. . 126,D00 mm .mm . „m 126,000 Other Revenue �.. ...2500 ������ 7,500 Admin F1 11ees Earned SS n _. ��� .1,167,885 , r �,. m .....�.,. 1,167,885 Admin Fees Earned VASH 8,006 .. 81006 Admin M obilit Fee �� 0 40 000 40 00_0 Fraud Recovery 2,000 .................. .....�� .. 2,000 Port Admin Earned 10,000 ....1O,OOrc .�.0 Interest Income 800 1,500 300 10 0 .2,610 Total OperatingIncome1,228,691765,700 1,488,299 y 160,470 y 3,643,160 EXPENSES ..... ., ......� , .. . .. �. �, Administration ration .. _ .�- �������...mm ._rv... .�.... Salaries 634,178 137,250217,231 3..,.� �. 217 21 27 502 .� 1 016 161 salaries Maintenance .....,. .w...... , 0 4 14555 „ .., 38,16 4 ........ 17,740 .,,_ m w. 201,359 .,.._.�.... Employee Benefits 256,179 126,581 62,136 9 8233 m. . ,... 45454 71 , 9 Legal D ,00000000000eP 1,000 _„ ������ �... 50,000 .,,.,., 500 Advertising & Mrktg Soo 0 0 _. ....w 0 .. em ,.51,500 500 Office Expense _...._202,000 .,, D0 26,5.. 30,500 14,000 273,000 . _ .... Travel ���� ���� 17,000 m 7,000. 10,000 1,400 , 35,400„ Audit _...., ,_. .�. ...v...� ,,.,,- 12,750 . 1,360 .11,11,111,111--, 40 17,000 Other Admin ����� 46,195 .... � � a2,S50 ... .��........ .....14,300. �..�� � .. .. ������� 96,260 ��__ ...,,,3 5,240 ...... � .,. . 161,995 Total Admin Expense 1,168,802 460,636 505,651 76,545 2,211,634 Ten....S .....,..� ,. m , �� 'an"t Serv.ices" . .�� . ... ....... .. .....�. m. Tenant Services Exp.. ,.� -"G 000 �0 1,200. ., 7,200 TotaITenant Svc Expense,,.,,., „ , ..._. �._.�. 6,800 _.................... �..a�. .. 1,200 _ 7,200 ,,,,,,,,,,,,,, .,,.wNNN�����... EJtilities .nnw. , . _ Water �. D . r .,, 15,000 .,., 5 000 3 004 23 000 , Electricity ���������N. _ . ,,.�,,,,,,.. �� 15,000 �,.. „000000, 17,000 7,000 �....... 39,000 Gas0 6,000 ��������� 0 .� �. 3,000 9,000 ,..., ,M .. 026,500 sewer 0 21,000 2,000 3,500. Total Utility Expense. 8 S7 000 ,_.0 24 00 _ , � 0 16,500. 97,S00 _.... ......m Maintenance .. „ Materials.. ,. ...... .3 ........ D0����* D .n,. ���� .. a.u. 5z,000., .... a� a,00 �..�... ....... ....�„-,--"7,,,"0"00 � . w.. � . , �. 7 Doo ������������7o „. �m DoD Contract Costs 5,000.. .115,500 „ ., a� 38,600. 59,500 .a 17.... ... �......... m securit contract ... ,.. ..y ... ., .... 0 ..... , _ .. �.�.� _ . _.... 2,600 5,500 ... � 3,600 11,700 Printed 11/7/2017, 4:21 PM 1, 21 Denton Housing Authority 2016-17 Budget Printed 2012017,421 PM SECTION 8 HERITAGE OAKS MANAGEMENT FUND PECAN PLACE TOTAL 2016-17 2016-17 2016-17 ........... 2016-17 2016-17 ................................. Budget Budget Budget Budget Budget 0 4,800 ..................... 0 4,800 Property Tax0 Insurance 81900 13,450 . . . .... ..... 4,700 2,850 29,900 Other General Expense ............... 10,000 0 .. ..... 5,000 .... ............. ........... . . .......... 0 15,000 ............................... Management Fee Expense ............ 0 53,599 0 9,800 63,399 Vacancy Loss 38,010 3,205 41,215 Total ........... ... ..............................................................1...8..,..9..0...0.. ................. ........ 105,059 14,500 15,855 154,31-4 ------ ....... ' ". ........ I t e m s ............................................. ......... ............. ........ on.RautIne- ........ . . ............ ....... ...... . .... .......................................... . ... ................. . .... . ........................... . ............ ............................................. . .......... ....... ................................ ...... -Replace of Eqpt. 1111- ................ ........................... 3,000 51000 10,000 . . . ....................................... . .................................. ......... ... 3,000 . ............. .................... . ...... ... . .. ... 21,000 .............. Property Betterment 0 10,000 10,000 0 20,000 TotalNon Routine Items3,000 .. .. .. .. .. .. .. .. .. .. .. .. .. .. ..... . .................... 15,000 20,000 31000 ... . . . ............... ............ 41,000 -iota, 1 -Operating- ,"-' .........Expense.. . ixp e'n's-eo000 ._ o000.......................... ........ . . . ............1,198,702 - ,-- -8 1 3 . .. .. . .. .. .. . 7 9 5" . .. .......... 616,251 143,201 2,771,949 ............... Net Operating Income (Loss) 29,990 48,095 872,048 .................... . ...................... ................................................................. 17,269 871,212 From Capital 8 u d g e t .............. . . ................. . ................................................. ........ ..... ............. ...... .............................................. .............. ................................. Vehicle Replacement 30,000 ................ . ..... . ......... ............ . .............................................. 0 ............................................................................. ... . ..... .. .. 30,000 0 60,000 Sidewalk Repair 0 20,000 0 0 20,000 Tree Removal a 15,000 .. ..... . ......................... 0 . . . . ...... . ............. ..... . . ......... ............................ .................. ........................ ...... 0 15,000 Parking Lot Repair 1111116� � I ........ .. . ................ 0 6,000 0 6,000: Drainage 0 50,000 0 . .... ....... .... . .. . ... ....... . . ...... ................................ ...... ..................... ...... .... ........ 0 50,000i Windows 0 0a 0 0 Landscaping -0 . ... .................. . ...... . ................................................. ........ 0 ........ . ....... ........... 0 0 . . . .......................................... . .. . . . . 10,000 ......... . ................................... 5,000 0 . . . .... ........................ ........................................... .. .. .. . 0 10,000 901 Downtown Parking Repair Hope ng Repairs . .. .............. ........... .................. ...... .... .... .......... ... ... .. ...... ....... .... .. 0 0 25,000 0 15,000 Carpet/Flooring 0 0 .. . . ... .. . . ...... . . . . . . . ... ................................ ............... 0 .................. ....... .......... .. .. 20,000 20,000 Porch Repair 0 0 .............................. ................................................ .... ........................ ................. . .... ... ........................................ ...... ...... ... ........ .. 0 0 . .. ......... .......... ..... ... 0 .. . ....... Total From Capital Budeet 30,000 ............ . . ...................................... . .. .. .. ........ 91,000 . .. .. .. . .. .. .. .. .. .. .. .. .. .. .. .. . .... .. . ... .. .. .. .. .. .. .. .. .. . .. .. .. .. .. .. ..... .. .. .. .. .. .. .. .. .. . . . .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. .. . ....... . ........ ...... . 60,000 20,000201,000 ............. ...... . ... . . .......... . . ........... Net Income (Loss) . . -10 ... ........ . . . -139,0951 ... 11 I .. 812,0481 --2,731 670,212 Printed 2012017,421 PM Denton Housing Authority 2017-18 BUDGET MANAGEMENT SECTION 8 HERITAGE OAKS FUND PECAN PLACE TOTAL _ ............................. . INCOMEm,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. m.................................................................................................. . _ ................................................................................................................. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. , Net Tenant RentaI income ......................... 759,600 ...,,, „ 172,800 ,1111 _.."""I'llll,.._._,........................... 932,400 Tenant Revenue - Other 1,500 200 1,700 Rental Properties ........................................................................................................................................._.................................................................................................... ,,,,,,,, ,.. 33,600 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,126,000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,125,00,,,. 33,600 Section 8 Rents 0 Heritage Oaks/PP Mgmt Fee .,,,,,,A,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,.....,,,,,,,...,R,,,,,.......,,,,,,,.....,,,,,..,.,,,,,,,,,,,,,,,,,,..,,,,,,,,,,.,,,...�..................................._.................................m............................................................................................... 65,668 65,668 I sset gmt Fee ( en Ct) 1_.................................._......................................_......................._................................. m......................................................................................................................................................................................................� 150,000 _................................................,,,..m,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,..,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. 150,000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.I Veranda Bond Issuer Fee ........................................... ... .......... ._ ��.,�....� _ �,.,m..,,,,,m.,.�, _ .1. ... „111,,.�,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 27,00! .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.....,,,,,,,,,,,,,....,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 27,000, I Veranda Developer Fee 743,193 .. 743,193' L_,,....,...... Other Revenue ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,_.................._.....w..........................................................m............................................................................................... 0 2„55),, ­ ............................................................................... 0 ....................._........ 1111, 2,500 m,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Admin Fees Earned S8978,299 ................................................................................................................................................................,�.._,,....... ......,.�_................... ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, .. 978,299 Port Admin Earned ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 25,000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,...•_ ...- . ................. ................................................................................................ ................................................................................................... 25 000 _.._ ................................................................................... Interest Income ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,I.......,,,,,,,,,,..... ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,3D0 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1,500 ,,,,,,,,,,,.m.............................600 10 , 2,410 Total Operating Income1,003,S99 765,100 .........................................,.-,,,,,, 1,146,4611 173,010 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 3,087,770 1111-11 ,. ,,.,,, .,.o., I'll, 111 EXPENSES 1111 .....................- ,..,,,,,__.,,,,,,.,,__,,.. "I. I I I I I I I I I I I...... ..... .... ...... ........... ................,.___................ Administration .... :::::::::::::::-:::::.:::::::::::::::::::::.:::::::::::,. ............................. ............................................................ ...................................................................................................... Salaries I'llSalaries 4114,689 _...............................................,.._......... ... 111.1111-1 70,225 ..,,.,,,,,-,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 210,644 , ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 22,026 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,. 717,585 - Allocated 182,841 66,165 7,314 256,320 Salaries -Maintenance 0112,128 32,378 18,425 162,930 Employee Benefits 248,173 113,392 83,658 11,792 457,015 Legal 0 1,000 50,000 500 51,500 Advertising & Mrktg 500 600 1,000 0 2,100 Office Expense 189,800 ... 20,400 .,. 32,900 1111, m,,,,-,,,.,,.,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,, 9,200 .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 252,3D0 Travel12 000 2,500 10,000 1,400 25,900 Audit8,500 2,550 6,460 340 17,850 Other Admin 36,700 5,800 119,340 2,300 164,140 ..m............_.._....._..........._....._.®,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...,,,,.,1,7,„,,,w,,. Ilotaiq A�lfmfn Expense ....... ... 1,0'�:�,�V.03 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. ,,,_,w .., 394,760 .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,..,,,, 546,379 ,,, ,,,,,,,,,,,,,,,,,,,�,,,,,,,,.73',7 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,1.1-.,-„w-1,w,,,.,0.. 2,107,640 ,,„ ..„� Tenant Services .... 11 .... ,,,... „ ... ,,,................... ,,,,, n„ ., n,,-,,-n,,,.,,n,,,.,,n„„ � ......,,. .,,n, . ... _...Tenant Servfces;.t..x_..................................................... p� .......................................................................0 ,........__.._..............m,,,,.,,,,,,,..............._.............. fi,000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 0 ,,,,,3,�0 2, ......,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,.................................... 8,300 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,...,,,,,,,,,,,,.................,,.,,,.....................................,.......... Tota)Tenant Svc. Expense ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,.,,...........................................................................................................,,,,......... 6,000 dlt -,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,w,,,,,W,,, , 2,300 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,, 8,300 i,_.. _.it I W......................................................................................................................................................................................................, t . . . . _.. .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,. � , �,", .,,,,,,,,,.,,,,., , .,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,................ . ,,.,,...., ,,,....­......... ... _.... _................. _ VJaterm.................................... _...... ......,..............................................,..... 0 ,,,,,,,,, .... .. 11„x,000 . $,000 _ .__ ...._ _ 3,000 23,000 _..................................................................................................................................................................................................................................................................................................................... Eiectricuty 0 15,006 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,......1............_.............. -, 17,000 11...,..,,�.,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.I—,,...-,,,-.., ",,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,6,500 40,500 m,,.,Gas,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,,,..,, ,,.....0 ........................................................................ 6. 0 _............................................................................................a _. 3,000 ..................................... ........................................ ..__...............,,.,,-,,,,,,.,, „,,,,,,,,,,,,,,......,................. 9,000 Sewer,,,, ......, 1111...,.. 0 ., 11,11,,,, 21,00.. m,,,,,, �„..,.., 2040 „ 3.... ,SDDi .-- ,,,,,-,,, _mm � 26,5.._ 1 ........................ ........... ............._...._......................................,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,........................................................................................................... Total Utility Expense ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 0 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, ..... ................. ......-,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,w, 57,000 „,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,.,,......_...._...... ........ ,,, 24,000 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,......,,,,,,............................ , 18,000 ..................................................................................................................... 99,000 _............................................................................................................................................................................................._......,.,,,,,,,,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..I RSG ...... s�tiw�t wv..w.nc..... .,.. ..................... ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.,,,,,,,,..,..,,,.,......,, ........_. ........................................................................................ ..............._. Ivlaterialfs 3,000 52,000 ,.,,,,,,,, 1111 81000 r 1111... ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,7 000 , ,;.m.,,,,,,--.. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,.'0,000 Contract sts 5,000 220,000 38,100 18,500 181,600 ..... ........................................................................................................................................... Securoty contract __._,..._.._............................_........_.,.,,,..,,,,,,,,,,,,......,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,„,,,,,,,,,,,...,,,,;:_,,,-,,. 0 2,1x00 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,......,.......,,,,,..,..................._........._............................... 51500 3,600 _....................................................................... ..................... 11,700 .Co _.._._...._.e.............................................................................................................................._........_................................................................................._............................,,..�.m,,,,,.,.,,,,......,,,,,,,,,,,,,,,,,..........._...............,,. ti to l Mannt Expense 8,000 174,600 51,600 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,............m..,,...._.,,. 29,100 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, 263,300 '. _ Qibi_.......,.. _ _ _ rd � I n ................. .... .... 1111 ,, 111.1_. ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, Property Tax ,, 1111... ... 0 0 2,p400 0 2,400 Insurance5,265 20,354 8,290 3,398 37,306 Oth11­1er General Expense 25,628 0 5,500 0 31,128 Management Fee Expense 0 53,557 0 _. 12,111 65,668 Vacancy Loss 3,980 3,456 41;436 _......... ..............._................_...................................................................,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,..,,,,,,,,,,,,,,.....................................................................................,,,,,,,..........._............, Tota Genera�Expense 30,892 111,691 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, .i 30 ............,,, ,,, 18,965 ,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, , 77,938 Denton Housing Authority 2017-18 BUDGET E� HOUSING AUTHORITY OF THE CITY OF DENTON. TEXAS FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 TABLE OF CONTENTS FINANCIAL SECTION Paqe Independent Auditors' Report ......................................................................................... 1 Management's Discussion and Analysis........................................................................ 3 Statements of Net Position............................................................................................ 8 Statements of Revenues, Expenses and Changes in Net Position ............................... 9 Statementsof Cash Flows............................................................................................. 10 Notes to the Financial Statements.................................................................................. 12 FEDERAL AWARDS SECTION Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 19 Independent Auditors' Report on Compliance with Requirements That Could Have A Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 .............................................. 21 Schedule of Findings and Questioned Costs................................................................. 23 CorrectiveAction Plan.................................................................................................... 24 Schedule of Status of Prior Findings.............................................................................. 25 Schedule of Expenditures of Federal Awards................................................................ 26 Notes to Schedule of Expenditures of Federal Awards .................................................. 27 HUD Financial Data Schedule........................................................................................ 28 FINANCIAL SECTION /vl em t ers: AMERICAN INSTITUTE OF HANKINS, EASTUP, 1g7 P, D a ATON9 CERTIFIED PUBLIC �Tp_ A ACCOUNTANTS TON�T C%. SEAM TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORA'FION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report of the Financial Statements 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940)387-8563 FAX (940) 383-4746 We have audited the accompanying financial statements of the Housing Authority of the City of Denton, Texas ("the Authority"), which comprise the statements of net position as of September 30, 2014 and 2013, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Housing Authority of the City of Denton, Texas as of September 30, 2014 and 2013, and the changes in its net position and its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 7 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is .required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Housing Authority of the City of Denton, Texas' basic financial statements. The HUD Financial Data Schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, and is also not a required part of the basic financial statements. The HUD Financial Data Schedule and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the HUD Financial Data Schedule and the Schedule of Expenditures of Federal Awards are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 29, 2015 on our consideration of Housing Authority of the City of Denton, Texas' internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Housing Authority of the City of Denton, Texas' internal control over financial reporting and compliance. Hankins, Eastup, Deaton, Tonn & Seay, PC Denton, Texas June 29, 2015 K HOUSING AUTHORITY OF THE CITY OF DENTON,TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2014 The following is an analysis of the financial performance of the Housing Authority of the City of Denton, Texas (the "Authority"). It is intended to provide the reader with an overview of the Authority's financial activities for the fiscal year ended September 30, 2014. The information contained in this MD&A should be considered in conjunction with the Authority's basic financial statements. Financial Highlights The Authority's total assets increased from $6,080,974 to $6,989,951, an increase of $908,977 or 14.9%. The unrestricted net position balance is $2,241,534 at September 30, 2014. This represents an increase of $222,111, or 11.0% from the previous year. Unrestricted net position represents the amount of available funds for future appropriations. Operating revenues decreased from $12,839,116 to $12,762,871, a decrease of $76,245 or 0.6% primarily due to the decrease in the Section 8 Voucher funding. Operating expenses decreased by $1,611,005 to $11,806,942 for the current year. The decrease was primarily due to a decrease in housing assistance payments. Using this Annual Report This annual report consists of basic financial statements and notes to the financial statements. Management's Discussion and Analysis provides a narrative of the Authority's financial performance and activities for the year ended September 30, 2014. The basic statements provide readers with a broad overview of the Authority's finances. The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. 3 The basic financial statements consist of three statements: 1. The Statement of Net Position provides information on all the Authority's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial situation of the Authority is improving. 2. The Statement of Revenues, Expenses and Changes in Net Position presents information showing how the Authority's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Certain revenues and expenses are reported in this statement that will result in cash flows in future periods. 3. The Statement of Cash Flows presents information showing how the Authority's cash changed during the most recent fiscal year. It shows the sources and uses of cash. The Authority's housing programs include the Housing Choice Voucher Program, Management Program, and DHAP. The Housing Choice Voucher Program provides rental assistance to aid low income families to afford decent, safe and sanitary rental housing. The Authority provides rental assistance in the form of a Housing Assistance Payment to a landlord on behalf of the tenant. The DHAP program ended, however, the Authority still holds funds totaling $81,827 related to that program that are currently restricted. The Authority currently has 1,526 baseline units available. Funds are provided by HUD to provide rental assistance payments. The Authority is provided an administrative fee for the purpose of covering the administrative costs of the program. The fee is preset by HUD on an annual basis. The Authority administers a management fund designed to perform asset management responsibilities for additional properties. Payment for the Authority's administrative office and other rental properties support the Management Program. The Authority organized the Denton Public Facility Corporation (DPFC) in December 2012 to receive and operate a twenty-four unit low-income housing facility. The Authority owned a portion of the general partner of Denton Senior Housing Development, L.P. which held the facility. After the fifteen -year compliance period related to tax credits expired, the limited partner transferred the entire interest in the facility to DPFC. The Authority must operate the facility under the supervision of the Texas Department of Housing and Community Affairs for an additional fifteen years. Renaissance Courts is a multi -family project that received a tax credits award from Texas Department of Housing and Community Affairs for the development of a 150 unit town -home style, affordable housing project. The development provides for mixed income and market rate rents. The Authority formed Renaissance Courts Public Facility Corporation to serve as the general partner of Renaissance Courts, L.P. a limited partnership to fund and operate the project. Funding comes from the limited partners purchasing the tax credits and a HUD insured 221 (d)4 mortgage. Operation of Renaissance Courts is managed by an outside management group and funded from rental revenues. The Authority received a developer fee this fiscal year and is still to receive additional deferred developer fees in the future, based on the project's cash flow. Il Authority Activities & Highlights The Authority's overall financial position and operations for the past two years are summarized below based on the information in the current and prior financial statements. The table below lists the asset and liability comparisons for the years ended September 30, 2014 and September 30, 2013. Statement of Net Position CategoEy FYE 2014 FYE 2013 Change % Current Assets — Unrestricted $ 2,150,768 $ 2,189,446 -1.8% Current Assets - Restricted 1,035,522 285,700 262.5% Capital Assets Net of Depreciation) 3,590,058 3,605,828 -.4% Other Non -Current Assets 213,603 ( - 100.0%i Total Assets 6,989,951 6,080,974 14.9% Current Liabilities 122,837 170,023 -27.8% Non -Current Liabilities - - 0.0% Total Liabilities 122,837 170,023 -27.8% Unrestricted 2,241,534 2,019,423 11.0% Net Investment in Capital Assets 3,590,058 3,605,828 -.4% Restricted 1,035,522 285,700 262.5% Total Net Position $ 6,867,114 $ 5,910,951 16.2% Assets The decrease in current assets -unrestricted was due to a decrease in cash as a result of lower administrative fee income. The increase in current assets -restricted, is due the Authority receiving more funds from HUD than it expended for tenant rents. The decrease in capital assets was due to depreciation expense being greater than the total of new capital expenditures. Other non-current assets is a receivable from a related housing development. The Authority advanced funds to refinance existing debt on the development. Liabilities Current liabilities decreased primarily due to a decrease in accounts payable and a payable due to HUD. Net Position The Authority's unrestricted net position increased slightly due to the receipt of insurance proceeds in the current year where the expenditures will not take place until the next fiscal year. The net investment in capital assets decreased slightly due to depreciation expense exceeding new capital outlays. Restricted net position increased due to a decrease in housing assistance payments. 5 Statement of Revenues & Expenses CateggEy FYE 2014 FYE 2013 Change % HUD Operating Grants $ 11,082,544 $ 11,659,994 -5.0% Tenant Revenue 687,096 617,063 11.3% Interest Income 2,263 2,746 -17.6% Other Revenue 993,231 562,059 76.7% Total Revenue 12,765,134 12,841,862 -0.6% Administration 1,178,336 1,331,923 -11.5% Tenant Services 5,661 3,644 55.4% Utilities 100,673 89,484 12.5% Ordinary Maintenance 372,318 281,619 32.2% General Expense 61,404 57,490 6.8% Depreciation 221,126 195,914 12.9% Housing Assistance Payments 9,867,424 11,529,873 -14A% Loss on disposition of asset 2,029 - 100.0% Total Expenses 11,808,971 13,489,947 -12.5% Results of Operations Revenues Operating revenues of the Authority are generated principally from dwelling rents, Section 8 Administrative fees, HUD grants, and rental assistance payments. The Authority's revenues decreased by $76,728. The primary reason for the decrease in revenue was a decrease in Section 8 voucher funding, partially offset by an increase in tenant revenue, insurance proceeds and other income. Tenant revenue increased due to the inclusion of the property acquired from the Denton Senior Housing Development, L.P. for a full twelve months. Interest income decreased due to decreasing interest rates paid by banks. The increase in other revenue is due to increased payments received from other housing authorities with clients living in the Authority's boundaries. Expenses Total expenses decreased by $1,608,976 over the prior year. Administrative expenses decreased due to broad cost cutting across several areas including salaries, legal, postage and others. Utilities increased as North Texas had a warmer summer than the previous year. Ordinary maintenance increased due to additional maintenance issues with Heritage Oaks. The increase in general expense was due to increase in miscellaneous expenses. The increase in depreciation expense was due to the property acquired from the Denton Senior Housing Development, L.P. Housing assistance payments decreased as the Authority changed its payment standard and did not fill some vacancies due to the federal government budget tightening. 6 Capital Assets As of September 30, 2014, the Authority's investment in capital assets was $ 3,590,058. This investment includes land, building, building improvements, office equipment, and maintenance equipment. The decrease in capital assets is the result of depreciation expense exceeding current year capital outlays. Cateciory FYE 2014 FYE 2013 Change % Land $ 1,203,916 $ 1,203,916 0.0% Buildings and im rovements 7,694,337 7,504,223 2.5% Equipment 329,863 332,225 -0.7% Accumulated Depreciation 5,638,058 5,434,536 3.7% Total Net Fixed Assets $ 3,590,058 $ 3,605,828 -0.4% Future Economic Factors The Authority will continue to use excess HAP funds to cover funding shortfalls from HUD. The Authority will continue to receive developer fee revenues from Renaissance Courts and income from commercial buildings. The Authority received more than $290,000 in insurance proceeds in the current fiscal year. These funds will be expended in the upcoming year to repair damages caused by storms. Request for Information This financial report is designed to provide a general overview of the Authority's accountability for all those interested. If you should have additional questions regarding the financial information, contact the Executive Director at Denton Housing Authority, 1225 Wilson Street, Denton, TX 76205. VI HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS STATEMENTS OF NET POSITION - PROPRIETARY FUND TYPE SEPTEMBER 30.2014 AND 2013 ASSETS Current Assets: Cash and cash equivalents Cash and cash equivalents - restricted Accounts receivable - net Accounts receivable - HUD Investments Prepaid expenses Total Current Assets Non -Current Assets: Due from related party - net Capital assets Land Building and improvements Furniture and equipment Accumulated depreciation Total Non -Current Assets Total Assets I IDR11 ITICQ Current Liabilities: Accounts payable Accounts payable - HUD Accrued salaries payable Security deposits payable Total Current Liabilities NET POSITION Net investment in capital assets Restricted Unrestricted Total Net Position 2014 $ 1,720,687 1,035,522 6,133 24,007 379,450 20,491 3,186,290 213,603 1,203,916 7,694,337 329,863 (5,638,058) 3,803,661 6.989.951 27,763 73,024 22,050 122,837 3,590,058 1,035,522 2,241,534 $ 6,867,114 The accompanying notes are an integral part of this statement F. 2013 $ 1,799,442 285,700 7,598 378,548 3,858 2,475,146 1,203, 916 7,504,223 332,225 (5,434,536) 3,605,828 6,080,974 48,755 31,434 71,234 18,600 170,023 3,605,828 285,700 2,019,423 $ 5,910,951 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 The accompanying notes are an integral part of this statement E 2014 2013 Operating Revenue: Tenant revenue $ 687,096 $ 617,063 Federal housing grants 11,082,544 11,659,994 Management income and other operating revenue 993,231 562,059 Total Operating Revenues 12,762,871 12,839,116 Operating Expenses: Administration 1,178,336 1,331,923 Housing assistance payments 9,867,424 11,529,873 Tenant services 5,661 3,644 Utilities 100,673 89,484 Maintenance 372,318 281,619 Insurance 26,346 23,080 General expenses 3,462 1,028 Bad debt expense 31,596 33,382 Depreciation 221,126 195,914 Total Operating Expenses 11,806,942 13,489,947 Operating Income (Loss) 955,929 (650,831) Non -Operating Revenues (Expenses) Interest income 2,263 2,746 Gain/(loss) on disposition of asset (2,029) - Total Non -Operating Revenues (Expenses) 234 2,746 Special Item - net - 808,720 Change in net position 956,163 160,635 Net Position, Beginning of Year 5,910,951 5,750,316 Net Position, End of Year $ 6,867,114 $ 5,910,951 The accompanying notes are an integral part of this statement E HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30.2014 AND 2013 1)n1d Intl Cash Flows From Operating Activities Cash received from HUD $ 11,027,103 $ 11,693,863 Cash received from tenants and other housing authorities 1,217,797 1,049,031 Cash received from other sources 435,848 98,216 Cash payments for rent and utility assistance (9,867,424) (11,529,873) Cash payments for administrative and operating expenses (1,722,630) (1,693,780) Net cash provided (used) by operating activities 1,090,694 (382,543) Cash Flows From Investing Activities Interest on investments 2,263 2,746 Cash from special item - 53,429 Acquisition of capital assets (207,385) (83,618) Sale (Purchase) of investments (902) (1,526) Net cash provided (used) by investing activities (206,024) (28,969) Cash Flows From Capital and Related Financing Activities Cash advanced to related party (213,603) - Net cash provided (used) by capital and related financing activities (213,603) - Net Increase (Decrease) in Cash and Cash Equivalents 671,067 (411,512) Cash and Cash Equivalents, Beginning of Year 2,085,142 2,496,654 Cash and Cash Equivalents, End of Year (includes restricted cash of $1,035,522 and $285,700 at September 30, 2014 and 2013, respectively) $ 2,756,209 $ 2,085,142 The accompanying notes are an integral part of this statement 10 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE (CONTINUED) FOR THE YEARS ENDED SEPTEMBER 30.2014 AND 2013 Reconciliation of Net Operating Income to Cash Provided by Operating Activities: Net operating income (loss) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Decrease (increase) in accounts receivable -net Decrease (increase) in accounts receivable -HUD Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accounts payable - HUD Increase (decrease) in accrued salaries payable Increase (decrease) in security deposits payable Net Cash Provided by Operating Activities The accompanying notes are an integral part of this statement 11 2014 2013 $ 955,929 $ (650,831) 221,126 195,914 1,465 9,748 (24,007) 2,435 (16,633) 17,189 (20,992) 5,293 (31,434) 31,434 1,790 8,564 3,450 (908) $ 1,090,694 $ (381,162) HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The Housing Authority of the City of Denton, Texas (the "Authority") is a governmental entity with the purpose of providing low income families with reasonable assistance for housing, giving consideration and care for their well -being, and promoting family self- sufficiency to all families without discrimination. The Authority primarily serves the residents of Denton County, Texas. The Authority's primary funding source is the U.S. Department of Housing and Urban Development under the Section 8 Rental Voucher Program. Basis of Presentation The activities of the Authority are similar to those of proprietary funds of local cities and therefore are reported as an enterprise fund in accordance with governmental accounting and financial reporting principles issued by the Governmental Accounting Standards Board (GASB). Accordingly, transactions are accounted for using the accrual basis of accounting. Under Alternative 1 of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the Authority has elected to apply all standards issued on or before November 30, 1989, by the Financial Accounting Standards Board (FASB), in addition to all GASB standards. Capital Assets and Depreciation The Authority records capital assets at cost and provides for depreciation using the straight-line method over the respective estimated useful lives. Furniture and equipment are depreciated over five years. Buildings and improvements are depreciated over thirty to forty years. The cost of normal maintenance and repairs is charged to operating expenses as incurred. Income Taxes The Authority is not subject to income taxes. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an initial maturity of three months or less. Cash and cash equivalents — restricted represents excess HAP and DHAP funds. See Restricted Net Position. 12 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Net Position The Authority receives payments from the U.S. Department of Housing and Urban Development ("HUD") in monthly installments as determined at the beginning of the year based on anticipated needs. At the end of the year, HUD determines how much of the advanced funds were earned by the Authority. Differences in the amounts advanced and the amount earned create excess HAP funds. The Authority must calculate the excess HAP funds, but keeps the excess funds to use towards any funding shortages in future periods. The funds may only be used in connection with the rental voucher program. The Authority calculated the excess funding of $1,035,522 and $285,700 as of September 30, 2014 and 2013, respectively, which it shows as restricted net position in the statement of net position and as cash and cash equivalents — restricted. The balances of the restricted net position accounts for voucher programs are as follows: Excess HAP — Section 8 Voucher Excess HAP — DHAP Total restricted assets — voucher programs See also Note 3. Compensated Absences 2014 2013 $ 953,695 $ 203,873 81,827 81,827_ $ 1,035,522 $ 285,700 Regular, full-time employees receive compensation for vacations, holidays, illness, and certain other qualifying absences. Compensated absences, which have been earned but not paid, have been accrued in the accompanying basic financial statements. For all compensated absences, the liability is valued using pay rates in effect at the end of the Authority's fiscal year. Prepaid Expenses Payments made to vendors for services that will benefit future fiscal periods are recorded as prepaid expenses. 13 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value of Financial Instruments The Authority values cash, cash equivalents, investments, receivables and current liabilities at their carrying amounts reported in the financial statements due to the short maturities of those instruments. Date of Management's Review Management has evaluated subsequent events through June 29, 2015, the date on which the financial statements were available to be issued. NOTE 2 — REPORTING ENTITY The Authority, for financial purposes, includes all of the accounts relevant to the operations of the Authority. The financial statements presented herein do not include agencies which have been formed under applicable state laws or separate and distinct units of government apart from the Authority. The Authority is governed by a five member Board of Commissioners, who are appointed by the City of Denton, Texas City Council. NOTE 3 — DEPOSITS AND INVESTMENTS Deposits Deposits, including those in restricted assets, are defined as cash or cash equivalents on deposit with financial institutions. At September 30, 2014, the carrying amount of the Authority's deposits was $2,756,209 and the bank balance was $2,765,115. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2014, all of the Authority's deposits were covered by FDIC insurance or pledged securities. At September 30, 2013, the carrying amount of the Authority's deposits was $2,085,142 and the bank balance was $2,115,981. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2013, all of the Authority's deposits were covered by FDIC insurance or pledged securities. 14 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED) Cash and cash equivalents consist of the following at September 30: 2014 2013 Cash and cash equivalents — unrestricted $ 1,720,687 $ 1,799,442 Cash and cash equivalents - restricted 1,035,522 285,700 Total cash and cash equivalents $ 2,756,209 $ 2,085,142 Investments The Authority's investments consist of bank certificates of deposit. The certificates of deposit total $379,450 and $378,548 at September 30, 2014 and 2013, respectively. The certificates of deposit are insured up to $250,000 per financial institution. Custodial Credit Risk Custodial credit risk, for deposits and investments that are certificates of deposits, is the risk that, in the event of a bank failure, the Authority's deposits may not be returned. As of September 30, 2014 and 2013, the Authority's deposits were either collateralized or covered by FDIC insurance. For sixteen days during the fiscal year ended September 30, 2014 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $799,682. For fourteen days during the fiscal year ended September 30, 2013 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $801,200. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an instrument. The Authority's investments were in certificates of deposits with maturities no longer than two years. Credit Risk Credit risk is the risk that an issuer or other counterparts to an investment in debt securities will not fulfill its obligation. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage sixteen and fourteen days during the years ended September 30, 2014 and 2013, respectively. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the Authority's investment in a single issuer. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage sixteen and fourteen days during the years ended September 30, 2014 and 2013, respectively. 15 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 NOTE 4 — Capital Asset Activity Capital asset activity for the Authority for the year ended September 30, 2014, was as follows: Capital assets not being depreciated: Land Total assets not being depreciated Capital assets being depreciated: Buildings and improvements Furniture and equipment Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Furniture and equipment Total accumulated depreciation Total capital assets being Balance Retirement/ Balance Oct.1 Additions Adjustment Sept. 30 $ 1,203,916 $ 1,203,916 7,504,223 194,795 (4,681) 332,225 12,590 (14,952) 7,836,448 207,385 (19,633) $ 1,203,916 1,203,916 7,694,337 329.863 8,024,200 (5,212,482) (181,233) (2,652) (5,391,063) (222,054) (39,893) (14,952) (246,995) (5,434,536) (221,126) (17,604) (5,638,058) depreciated, net 2,401,912 (13,741) (2,029) 2,386,142 Total capital assets, net $ 3,605,828 $ (13,741) $ (2,029) $ 3,590,058 NOTE 5 — RISK MANAGEMENT The Authority is exposed to various risks of loss related to theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The Authority manages its risk of these types of losses through the purchase of commercial insurance. There were no significant reductions in insurance coverage from the previous year, nor have there been settlements in excess of insurance coverage for any of the past three fiscal years. 16 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 NOTE 6 — EMPLOYEE RETIREMENT PLAN The Authority maintains an employee retirement plan for all full-time employees after 90 days of employment. The plan is a defined contribution plan. The Authority contributes 7% of eligible employees' compensation, and employees may make voluntary contributions of up to 10% of their compensation. For the year ended September 30, 2014 and 2013, the authority recorded $43,670 and $52,803, respectively, as retirement contribution expense. NOTE 7 — RELATED PARTY TRANSACTIONS In October of 2004, the Authority formed Renaissance Courts Public Facility Corporation, a not-for-profit entity, to become a general partner in Renaissance Courts, L.P. The Authority transferred low-income housing credits obtained from the Texas Department of Housing and Community Affairs to Renaissance Courts Public Facility Corporation, who in turn, transferred them to Renaissance Courts, L.P. Renaissance Courts, L.P. is a partnership formed to build and operate a 150 unit housing project in Denton, Texas. An outside management group manages the housing project which opened in the summer of 2006. In the event Renaissance Courts Public Facility Corporation is dissolved, any remaining assets, after all of the obligations of the corporation are paid, will be transferred to the Authority. The Authority's directors are also the directors of the Renaissance Courts Public Facility Corporation. In 2014, the Authority advanced funds to the project to facilitate refinancing debt on the project. The advance is shown as due from related party on the statement of net position. NOTE 8 — ACCOUNTS RECEIVABLE Accounts receivable at September 30, 2014 and 2013 consists of the following: Tenant receivables Receivables due from other Housing Authorities Receivables due from tenants from fraudulent activity Less allowance for doubtful accounts Total 17 2014 $ 2 $ 9,742 20,459 (24,070) $ 6,133 2013 2,367 2,111 6,348 (3,228) $ 7,598 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2014 AND 2013 Note 9 — Inter -program Receivables and Payables Inter -program balances at September 30, 2014 and 2013 consisted of the following individual program receivables and payables: Program Housing Choice Voucher Program: Business Activities New Construction Program Senior Housing Program: Business Activities New Construction Program: Housing Choice Voucher Program Business Activities: Housing Choice Voucher Program Senior Housing Program Total 2014 Receivable Payable 117 4,630 82,764 $ 87,511 $ 2013 Receivable Payable 4,630 $ - $ 91,628 117 18,032 - 82,764 - 94,149 - - 18,032 - 91,628 - - 94,149 - 87,511 $ 203,809 $ 203,809 These accounts were eliminated in the preparation of the general-purpose financial statements. Note 10 — Special Item The Authority was a majority owner in Denton Housing Partners', Inc. the general partner to the Denton Senior Housing Development, L.P. which owned and operated a twenty-four (24) unit low income housing facility for tenants meeting certain income qualifications and are at least sixty-three (63) years of age. Effective December 20, 2012, the limited partner transferred and assigned 100% of its limited partner interest in the partnership to Denton Public Facility Corporation (DPFC). DPFC agreed to accept the transfer and assignment and to release the limited partner from certain of its obligations. DPFC is a public facility corporation and instrumentality of the Housing Authority of the City of Denton, Texas. The Authority now accounts for the assets and liabilities in DPFC as its own as a separate program. 18 FEDERAL AWARDS SECTION Members: AMERICA!' INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS TEXAS SOCIETY OF CER77FIEU PUBLIC ACCOUNTANTS HANKINS, EASTIUP, DEAT®N, TONN & SEAQ' A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (9401 387-8563 FAX (940; 383-4746 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Housing Authority of the City of Denton, Texas (the "Authority") as of and for the year ended September 30, 2014, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements and have issued our report thereon dated June 29, 2015. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 19 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of the audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Hankins, Eastup, Deaton, Tonn & Seay, PCC Denton, Texas June 29, 2015 20 Membe, s: — —-- – --=-- AMERICAN INSTITUTE OF HANKINS, EASTUP, DEATON9 CERTIFIED PUBLIC ACCO , ONN p 6�. SEAM ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORA'T'ION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS 902 NORTH LOCUST P.O. BOX 977 DENTON, 1X 76202-0977 TEL. (940)387-8563 FAX (940j 383-4746 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report on Compliance for Each Maior Federal Program We have audited Housing Authority of the City of Denton, Texas' compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Housing Authority of the City of Denton, Texas' major federal programs for the year ended September 30, 2014. Housing Authority of the City of Denton, Texas' major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of Housing Authority of the City of Denton, Texas' major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Housing Authority of the City of Denton, Texas' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Housing Authority of the City of Denton, Texas' compliance. 21 Ooinion on Each Maior Federal Proqram In our opinion, Housing Authority of the City of Denton, Texas complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2014. Report on Internal Control Over Compliance Management of Housing Authority of the City of Denton, Texas is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Housing Authority of the City of Denton, Texas' internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Housing Authority of the City of Denton, Texas' internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Hankins, Eastup , Deaton, Tonn & Seay,`PC Denton, Texas June 29, 2015 22 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2014 1. Summary of Auditors' Results a. Type of auditors' report issued on the financial statements: Unmodified. b. Financial statements — internal control over financial reporting: Material weakness(es) identified: No Significant deficiencies identified that are not considered to be material weakness: No c. Noncompliance which is material to the financial statements: None d. Federal Awards — internal control over major programs: Material weakness(es) identified: No Significant deficiencies identified that are not considered to be material weakness: No e. Type of auditors' report issued on compliance for major federal award programs: Unmodified. f. Did the audit disclose findings which are required to be reported under Section .510(a)2-7 of OMB Circular A-133: No g. Major programs include: Section 8 — Rental Voucher Program, CFDA number 14.871 h. Dollar threshold used for distinguishing between Type A and Type B programs: $332,476. i. Low risk auditee: No 2. Findings Related to the Financials Statements None 3. Other Findings None 23 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2014 CORRECTIVE ACTION PLAN N/A 24 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS SCHEDULE OF STATUS OF PRIOR FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 2014 FINDING/NONCOMPLIANCE N/A 25 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 FEDERAL GRANTOR/ Federal PASS-THROUGH GRANTOR/ CFDA Federal PROGRAM OR CLUSTER TITLE Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Section 8 — Rental Voucher Program Total U.S. Department of Housing and Urban Development 14.871 $ 11,082,544 11.082.544 Total Expenditures of Federal Awards $ 11,082,544 26 HOUSING AUTHORITY OF THE CITY OF DIENTON TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2014 NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Denton, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 18% n q m E E .0 d X C N U O C C: m CU m N r C W O N O C� 1 CD O .D C w m U N LL (0N(D r N LO OLr) O) OC\l N r O 'V O) (DLr) V N n O N D) O (R (n (+) O �j O (A (D N rCD D) O V O (A fD (') N (H O (, r r O (A V O N (D V V r O (fl O fH N n O N 7 (n (D (fi O (A N EH )� N (H N � (Nfl N V3 N V) ('�) (H E - N .j .0 Cl) Cl) Cl) m r Q 00 (D a0 (D O (D (D fD m N O) N C .N N EA N EA N (fl O (f) (D (n (fl V N EA O O Cl) (H N 69. m m O J r N r N N co _ CO _ O [fl U) N O P1) 00 6q C C -0 m m O v_ O (n Lri LO N C_0 O C N O V N O N EA r CL N Em U') N 6 (\j N (s4 r N EA [f3 ff) o U N O (fl m N N C_ N U 0� co co � O) co N r O m Q) N (D n O co N m D) N N = O > 'IT O EH fD Cl) (n O Ui O ca O N n m(fl O O (A O Ui O 03. O G4 r P' O (JT O N (D co 00 O V 00 O (A O GS N � O 6% rN U C) 04 0) UI0 fA 6a � U> �U C 7 O T U U = C N Q m O E O 5 J Q O = — 9 C N .D 7 N N > m N cU 7 a O D U a� Q N OO C L N i 2 O a C L 7 N O LL C U) 7 O ~ Q r Z m LL r y U C (n m C Q U N O y N > a) y U N E (n O Off y 7 7 7 3 (cc Q N O C CL O C O O� O O d C Q U U E Q _ Q U .0 U (n m N U Q U Q N N U Q 9 Q .D L OCU .0 .D a Q O L F-- 75 75 COTO U O a) 0. O) i F OaO U N N N N N .fl .II i O .fl U Z U U C a t U -0 9 .II .II .II 0 0 Q O QCO R N C y N y N N U O OO > .O > '� > '� > .O > °g LO N LY LY N U d' C U U U U U U O 2 w0O N > �.- N ,Q m t r ( C O 2 N L C N N � 0 � 0 LY 0 � 0 LY U U m U N > a) Q N O ,C UO C C m C a� C a� m Z) r( of r H r( LY m U m 3 m- 3 0 m 3 a m E o .0 .0 s s C 0 0 0 0 0°= a`ni ° m a`ni a`ni ami (n m (n m (n m U)Nm m O U U U U U U U U U U Q Q O Q U O >>> > U U U U U Q Q Q Q Q N Z LL Q C C C LL C N M V to O N d' to M to N m r r O N O N O M CD O c w (4 N } co U N LL co r Q •D =o 7 Q N Q f— c O US N E 7 U) LP) co Ln co to m l4 N O m �!') m (h cl N cD O O pi C lf) O Cl N cD O p Ui c.7 m O O V m V WU9 r O m m CD O U! O b'> O a) O Ui O U9 O Ui O U, O Ui O m N O U} ch co Cl cn m U) V c.7r N (D n to m c7 r U, Us ca ca (a Ut 6% ai •> c7 O O cD ' Q rn cD Lor r m m c� m "? m co v 0 to r 0 C m U> co r ch Ui r -r U> to N 'y 'Al U} m 6 L, J r N r N co O O U, U3 B cn co U> co U} N C N co V r r m C V N r m N O O r r r c0 ch N N C V M r ED O� N O V Or Lf) V r r- 0 C CL 6? r N (h m O r r M V c0 00 (D co (D U') m .2 m to bq in U N O i» ea m� UN O co ch Cl) _ m 7 = o O m N p U') m N C1 �') r r r O 2 O Ui m O Ui O Uj O Uj L O UJ O U) r O UD O Ui O Ui O Ui O Uj r O U> cp N (D co cD 69N N O Uj m Uj N C7 UJ c7 U) 0 U co m C C ' O N L C _ L o U m U a) cn Q p Z o U 0 _ Q Z as a� m m 3 � .n a� Q ca co ) 7 >0 0 i E U •a 3 C C C U W N N cn Q O L cn O O U O 5 U co L) co c o N m n 7 U :3 :3 -II N EO O O cn M M C C 0 cn N N otS �S f6 N Z 'C 0) O Z N > N US LL N C C E Ol (n p Q - N •p O 5 0 w N E N E N C O p °vi -0 rZ N O D -O `p U) Q Q 06 3 p Q •= •� Q c Q � a) m D W W O o g m m U C O a� O N S O N O 0 (6 U L) O O O O N O U) cC6 3 cn 7 U c' E L Rf U J J cn Q E Z E Q N a -0 -0 Ocn— O (6 vi O vi O C O N (O C6 Q O O t6 7 E 7 E 7 N U O O O O r C Q I— J M LL LL J Q U 1-- Z U' O i— i� M to ONM V to CD Il— M ONM CD O O O to CD CD CD CD CD CD CD CD CD N N N N N w O r r r r r r r r r r r r r r r r r r r N N S It ch ch Q 0 _o i5 - Z) Q N Q T H C O U) m E 7 U) O M N O V 'T O O O O O (D O O r O O O M r cc cc!M O V O O O O O O m 7 6% C)� w, nj N O (D Gf, w,69 0% (fl N Ncq M 69 (f) (f) (rj Q) (A (D 69 co (f) C9 (fl co (n 69 (!3 (f3 69 co co .LD U Q N N m m m rn (fl m m N 69 � _ M 69 m co O) fPr C m ER U O J N (O N O Esi .0 C: c ti v (D co N m N m v_ O O rn E` M m L O O co M co O. N E m w (i3 (D Esi O 69 N M < m Cl) U N (D � m� U j D= Cl) Cl O) co d' (D Cl M (D Cl) N _ � N O U) cc O O (R O _V CO M O 69 O (f) O (f) O 6R O (f) O 69 O (Al O ER O 69 O ff) O 69 CD O CO CO (D O 69 O co O ER O E& O 6% O 69 iz co U Esi 69 fPr 6q fPr 0 U) rn 0 0) 0 0) C c � y o O in O a O) (ll m N � _ c ° ca O i d O o 7 U E m CL o a) (DZ) U cu U O Q a`) Z .8 a) cc U o_ O �, CO cn a) o cn c � a) � a) CDp N cu n" UU Cca Q > ❑ ❑ C C C a) a) O EE N N ❑Z3 � CD o Lo CD CD )❑a." Cl) � O Q C O 't O) 0) O O O -a O 7 U1I V O A O C T fl a J J= = i a) a) N ca a a a C)Z O n) dT � O O J ) ❑ CO C a aTs O N Q. . 0 w .Q a) =U ❑. .(a— O OTO TO 'O O 'C a) a) E a O O C d On CU � E E v D— a) J U a) J LO Y O O DD OO O D +� O)O)CUC m C UU U UU U UUUCo C 7 O O(a U OC Q U U U U U U U U U N C O O O O m Q Q Q Q Q Q Q Q Q I D U U O Q J f— J J Z Q J li r- N C2 — N d' (f) — N c7 — N c7 't (f) co I-- co O r N CO � LO M r N N N N M M CO � "t � r- ((') U')U')U') LO U')ch ch M ch m m m m m m m m m M m m m m ch c� co m m m m N a) M •L O D Q m C .O D O 2 C O C N wil 74 cc E E N X d C N U O = C cc N @ D m N 'O T Y C W O N O C= O C W U U N LL co c� Q 7 Q Q C O cn U E 7 U) n 00 Ln N N V co V Q) N C O O O O l!] M " h t17 co FH bq O Q) tf1 m O V N (D N co O U7 (+1 EA Ef3 N Ef3 (D FA h Ef3 N U Q Ou7 co O co CD 0) L NO In V3,VO r M to fD u7 (D (DQ) C N fA co N fA N Ef3 m m J d O EA O (A r N co O V3 n N n N N r N N ER o0 fA 00 fA •C r N O m C C7 d d OCl) 00 � ^ 00 CD O co (�'1 C U am j w r-- c1 0) r u1 _i o2 rnNE N co O i2 N C 7U co7 t17 O � Q) o m Clt CD _ `l F09 � N ( co U7 (D V3 Cl)^ _ LLQ] O coO N Co1 V CDP v 0 w w FA V) U a- W C N N U O U N ry w — U C w O � � U Q U O CO N C W N cu C — IL =' ` 7 •Q C w 'O cn c9 O •� (6 a� U d cn U) R7 J C O Q N d N z D cn Z Ul C j O O E z N N C � w -p O c9 a� Z — W UR7 N N z N C c9 (6 QF - I` O O O 06 N m O m m O OO O M I ch I ch "d -Lo co 1W ►4 0 N O CD O 'D C W L m Qi m U N L.L N O M O] 0) (O (R O (HM U') L6 O (R U O N O ff) N O U')m N (H N h � p O V O O M N N � O b h h O o "� O h Cl! O G4 Q V (f} m V N 60,� h M O � O � N p N (f) O o 0 0 00 o a o 0 0 0 0 0 0 0 0 0 o O O a o 0 0 J W 6% Uf (FJ (FJ (i3 6% 6% (A61.* (A (f} U% (f) (a (A G4 (f3 (R (FJ Fi3 (A (f) ul? (f) C 0 O T U U = C U Q m O E O = J O C O (W N O U -o O ❑ L ❑ N C L N (LO O 0 -O 7 M f(1-� IL � y U I O � m LL„ I !n N C N to U L (n (n .> (n C O N N 'C C p N 0 N •� O L > O N C C C U C m N O c—nL O 0 m� C o o a) c' 0 C 3 O m Q- Q L NCL E E N E Q❑ L s N_ C:Q Q Q_ Q -o C a) O O ..T+ t i t O) `.b 'a Z O N -p N UO O O O N N O m O N Z in 'y (On 5 U - mmmmm � W ay Of Of W L L U U U U U U U O UN > N i i CO a) 40 (D I „ N Of N Of N Of N Of N � U U m O U .> CL a) O _rz I -of U C C C C C 3 3 .__I 3 OQ� E E E:2 O 3 L L L L LO m O O O O O O N O ` N N N Q C O (n (n (n (n to U U U UU m Q V O > > > N > Q U U U U U I— Q Q Q Q Q N Z LL Q o O - N •cf' o CO CO 6 ti w 00 m O N N M M It O F O (9 O E9 co a) cc Q) Q) co cr EFT (D m r) O N EFT n co r) V In (O r, EFT Nto co (9(C'91 O OV> O co O O r) IR 'n O U9. O ER co to O O m U) cr O U3 O U3 O E9 O E9 O d) co to O O m Iq co lA O E9 Cl a) co Cl m EF, O !H V (4 O V (O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O V (O O J W co E9 co E9 fA d3 E9 E9 E9 E9 (9 lA lA b7l Q9. E9 E9 (f) co co E9 cO � a) C C ' C C Ca 7 a) L o L) U Q U U Uca CY)cn p Z O Z) c c Z O a) E _0 a) rn a) 3 -o a) Z a) ❑ Q CIS a) F v- > > ca O E U 'FD 0 a) a) U a) U C L L Q U)0, L L a) i O U ca U ca c — O a) 7 U > > -o E "� o (n Ca a) ca o O "� "� aa)) .T a) Z o Z aci > LL a) c c E a) o) vi C) Q (- a) a) Ca n W "O Q (na) o ca sS Ec Q (n : > UW T -- a) ca L 'o W— C Uaa) O Lcao -0 u cnta ) >rn i ooo O IL U -il a) U vi vi (n¢Z Q a) F, -o =o 'L 'c cn � cn cn F a) a) a) a) Y (n o cca >>> 0 U o 0 0 0 `La => 0 a 0 ca Q I— -i m W u. -i Q U c: H Z Z U G H ❑ H m •� m 0N m •a' m O r— N O N ('7 'C' CO O O O r d d' CO q 0 N O M C) O C W L M a] M U U LL M M r Q 0 =o Z3 Q N CL H c 0 N U E Z3 U) O 1- h (V C r EA O EA m � " N EA EnO V O W) (fl O Efl O V3 O EA O EA O EA OrZ " N fA O O fA O EA O EA EO O V3 OCli fA M N � O EA O Ef3 O U3 OCD EA 6f3 O EPr O EA O O 2 O O O O O O O O O O O O O O O V EO O V ED O O O O O O O J EH V3 (fl V3 [H Efl fA [H EA EA EA EA EA EA EA m Ef3 M EA EA EA EA EPr, EA EA W U Q) O M C O O) O O m 3 o_ LO i o tf m v c N m a) c M co L rZ c U O E n _c M o U L a) U O a a) Z En m Q .Q O) E i i M U ❑. O — M a) U a) a) E rn a) n M (p0 ca En a) = S O E a) a)X _co Q M Q -0 Q c p a) U U O Q c ~M JC -0 Q Q * CC n � L O O U) a O -O-U a 7 'O 11 O U=O >, Q O.O = U V N A a) � M M N N a) N Q a 7 J O a O ` 7 a) Z a) Z= ;�, M C C O O M N O m a) O O ,� a) Q U M _ _ N Z Cl) -O >, OC m o °� M c p p J o /!m1 1..� /^M 1..- o c7i C ac) L ca coco L ,.� ,.� M M U). U U C Ocn 4) (n 'O !!V 1..� !^V 1..� J Q) i E E a) L U -fl J /^0 1..� 'O 'O 'O 'O CCCC a) CC U -p a) O M J p U 4) L -p M � -p 7 LLO p 7 7 O 7 O C M L ca a) N L Q) 7 L L C i O) CA U i p L CU m 7 U U U U C 4) C i 7 L L 7 �_ U a) MO U Q U I'C�;,; Acc—y,) U U Q U Q U Q U Q a) Q U U O U Q C O J O H O J OQ J ZQJLLQ p NM r N M t Ef) (D 1-- M O N M 't Ef) (D 1-- M M't't't "t "t "t It I LO Ef) LO LO LO V) M M M M M M M M M M M M M M M M M M M M M O N O M O C W co as a) ca U U LL M E E `i =S N �L � C vI,UA y-+ U 0 C O m C O � r C C O W co Q? LO O mN (fY N N EA cam'] I EA co EA N co EiT O O O IR O IR i W EA c'JU3 co tin ts> a o' W C: ca U) a) U 7 O U a) rn C O a) O U En �, 3 En E Q O 0 o m a) n a�0 m :3.Q c o a En ca 'm Co a) U.t:f� 0 J d' C 00 a U Q 0 ❑ E 3 C a) z Z vi a) o E z a� C co co 'o> U . ' O Co Z .J C a) w J c6 ca ) a) a) C ca c6 O O a) Z 7 O O O O O 06 N M O LO O O O O Cl) Cl) V m m LO LO (O Im1 m E E a) N C CL d X x �- w C C O m C d 3 0 d d m C W ,It Cl) Cl) Q 0 a) =o Q N a H c 0 U) E 0 U) v o LO [0 m co to Nr (f1 N 0 o N o Cl)^ CI O m r N O O O O O O O O N O O O LO N O O m co �r _ m 0 d) 69 K3 (A (i) Uf (R (F1 N (A (F1 (f} m0 nj fF1 co (D 64 Ef! (Dto fA � N (O 64 � v U LO O Q (D (0 r r m N N (A m C2 m 00 N W 64 (a.y 6G,C m U O ( O O N (A b4 (0 N �c 7 (D co N7 to O m cn O m C_0 O co 0 N t(7 n 0 C 0-2 r [o co co (n fp (D co Nr m N O E m (D 'R (D N ( 1 m 0 fA (H 61J (19 V) U N ED m c Nr Nr .N L 7 t7LO ( f1 O co r 00 m _ a O O O O o i� O O o O1 �? o o W) Cl) �co W. (s7 (s7 o V3 (R r (f3 64 V3 m (D Gi fA r m o � � � _ w L Fn 61J U a) (6 0 a Q) S � m a) U) N m a U) Q Q U 0 •U) 0 C o a) c •� U .L a� ca � o (n a� L Ua) a) L U lD (D 0 LL 0Ur u"' � U C 0 C C a) C a) E N y' to N Co U) U E Co f0 E LL '� j E U ¢ �+ U O U Cf) c Q U) � o a) E � U ` o Z! 2> a0i UU c > co 2 CD a) C m d c m o a� m (0 m o > o` O C o N ai N (D ami ami CD -mo E a� F- 0 0) Y ` lL E m o o ~ m D 'Q c o c s m s ami 0 a a� W o D m m in W o o > 0 2 0 o '�° > o a z I— I— S C) ;EQ m tL O I— O S 2 0- U m O C� h Q 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O -- N co -It In O O O O O O O O O O O m d (n CD CD t— r r r r roo N c2 co d (n (D O O O O O O O O O O O O O O O N E G) E M x en u CV N C L X CLx LU Q O CC m C 7 C O C Cn N > O C O � C O w C W C] N O M CD O C W f4 w } ca U N LL M M i Q 0 N T3 7 Q N iZ >. C O O to E 7 A O O O N m V m O O V m N O O co O O m O) N O O N O m m O O O � O Cl I-- O O O O O O O O Q? (f) O O O N O 00 LO EH _ _V O O r --(D N ffi n O 69 69 64 tf> 10 O w O 69 69m C& O In 64 64 Cli64 64 69 z 64 64 N 69 V b9 64 N w (f> N Q O m O r 01 m I- (f) (D (O V N CO O 1f) O ch CO 00 � O m O � m O) wM O] O 1f) C6 O (!) (6 D O G N m U J O O � � 69 U) N 'c c v N N O O N (`') O fD O (D M Q) V O (o (D (0 m (O CD "0 GCN N N � V r m O m O N E (A 69 (N b9 69 64 69 69 64 m (R 64 b9 N to N Cn � 7 O = Om > "r64 O O r °' -KrV O (No M O co r-- CNC) O O O O O O O O O O O O O _ U cr;(� H3 64 N 64 Op N - m w w 00 (f(OD.w 69 w 69 69 w C& w 64 w 64 64 w .o VD. 6% 0 U O O U_ f9 (U C C cc (U C O > C C O c in ami s .n N Y _C (U LL f9 Oo O o U @ Q co U O U U a) LL LL -0 m Q) a) a) a) cn 0) c (n a) c U O U U aCi ai aci m CO N N O 76 M m c m Q °? ai Q x CL x -a CL C (U C ai (U cn f9 c ai Y >, W W a O 2 > v > o> D U ca U m m )i c O a c �' a) 3 0 o m o �_ u° m .cn m Q 2 m Q W O J F- Q O F- Q F- G'- W H H W U` LL JQ) Cn W O OO O C:) O O O O O O O O O O O O O O O O O O O O O i--• O O O O O r-- O O O O O O O O O O O O O O O N M M d' to Cfl N OD OD O O O N M V L N M V m CD r- �--- M M M M M M O m m m m 0)CY) O O m m CA cn 0)cn CA CY) CY) (A (A (A (A O c O C. a) m E E N a) N C a) CL x W N O Q CD O a w m a) U LL. (D r O ED 'V! C, r C) V C) V O c ED O n O (h N co f` V O C7 O n O EA O N O O EA O O fA O ffJ co C7 f` V a0 V O EA m O EA O f` N (D m f`') 09 n CN N f`') 1-: (n EA Eft EA 11 b4 (h ul (f) EA R EA C, EA b4 ff-) tU Q LO Y) "r (o rn co O t` CD En En LO n rn v En r-- m (n � v v [D M r": V N N N N f` N N C (D C4 (h ffJ En (D Ef) V O ED N 64 N Ef) C7 01) ffJ EA ED Ef) V 64 N m U O J co N EA CO Ef) EA C C V C_0 N E` O ED N 00 n N m m co co 0o com V ('� co (o r co In (D O o c (h N rn En v (D efs ED if) i° I= V (h (h C J efa E m ((Dn � Ey U N co lT � C tU .N oj O 0 I� V f` � V (D co Eh m to 2 > O U). O EA O EA ^ p O U) r O U). O 64 O U). O W,6% O N N 00 N l() ED V O Ef) O Ef) O fF) (h (h kA EA EH EA _ EfJ _ EA EA N ff) f` U Ef) O a) C U C En m C (jOj En a) L L m ` C) C .m `N^ � V/ cu J � OC G i w N > E E UO (n En N U ami c c c 70 0 O O Op` U a CU 0 E a) a) CL CL OCL C O C 0 0 0 •O U O a a a O 0 N L N C U C O (n E U O U X U a) m m m C m J _ O _ O C O U .i> O a) U U m C N U Q? U U U O U i N E U E N O U a) a) C a) a) E a) C C O a) m Q m m m a) U U U U C a- Q cu w a) a) a) N C N� > O cu U W< a) J m c C C C C C U U) (`C6 U a O a) a) m m m m N w o o m 7 U (C6 a)- C �- _ a) a) a) a) C co c m m c p U a) U a) U a) p a- 4) •= E -C Q a) "O s 'o C: a- n 0""00-E-5 a n 0= p c E >E, a s O o F- O O O Et w I- a a w I- - a m :-j �: Q o H O o U m m m m m m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O O O O O O O — N C`7 d' O O O O O 03 O a-- N C`") LO O a-- N C`7 Lo O — — r-' — — N N m * LO (r) Cl) 'T 'T � � � In In Lf) LO LO (D (D (D (D (D (D (D (D (D (D m m m m) m m m m m m m m m m m m m m m m m rIW V� Cw C cn a) cn C a) CL Ix- W C C Q C 0 d d .0 A w w C W co co i Q a) '0 7 Q ai 0_ A c O U) En 7 U) Cl) N Cl) Cl) N O In M r N c0 N m O O N O r O O O O O Nr O O O r O O N O O O CO fA r Q)�_ EA U3. to fA Q) Q U3. 6% Q) (h � N EA EA O EA fA En EA EA fA bl> Q) GH V fA N El} fA (U V Q (h N (h Nr (h co m Q) n O N N O rn nEn U O CD U3. (D (h m n O V' V C .N EA EA EA N EA 00 U O J_ (U N N O (A (A EA (A EA N C C '9 N N C '9 co co W O En (h O T N O c CL E co El} O co (h -It CN N En U EA N co m w C: Q j U ED d' W cco N (p co m (ND 0 7 U (D (D N O O O a) O O 2 N O EA V O Eli O Eli O (A O EA oo T EDT O EA O Eli O T Q) 00 O EA fA r O EA EA n (U O U [O'1 E9 r EA 6% p _ O C, EA V' N O 0 fA EA En w O C C) Q E X LW a)CD ~ cncn cn c U c`La ti O .Q J O _ O C. N _ I6 m >. 0 CC is O Lm m cu (n � > a) N ii E c 0 � C Q C N O U a) '0 C O �_ O_ c N E 0 U( C O CD N 7 C (n N a) > U f6 ( C Q 0_ X L O O O f6 to a) C f6 U >. N a) � X W > f6 y C a) p d c > O N E W c O a) En v 0) 4 c N a x c Z a� O UE >, cL L L al co En m 0. W n3 C C Q ( a3 N .C- L Q a) O O o 0 W N y O in > W j (6 En a� L c IL9 O W L0a) Z C !n m O O— C a) C C ( U a) L O C O a) C O C 'D J >1 Q a) M O O 7 O V O_ 07 0) a) C cLa O in in N c Q O � `o c 0 C5 J a W i6 i6 0 a) a) " V- O a7 I6 U ID L O N 0 a- L C. :3 �' 6 76 L a) L (D I6 > a) O a) O O X X f6 O Q m L f6 ..Q a) 3 O O_ Q m U) F— Q F— F— W W U = 2 0 LL U 0 0 F- O O O O O O O O O O O O O O O O O O O O O O O O O O r N m O O O O O O lf) O O O O O O c- N (D 00 O ti ti ti ti O O .— N c'7 C'7 In (D t--07 O O O (O (O (D (O (O co (D(D ti O O O O O O O O O I O O O O O O O O O O O O m O N O M O 'D C W ro a) ro U to U - co co Q 0 2 'O 7 Q N Cl A F- C O U to L 7 CO _ CV M CD N -co u7 N (*O N E` � m c0 O O O O O O O O O O O O (A (A ER d3 (H (fY (H (H EA LO (AO (� (O O u7 U) m EA N (A Ef3 N U n N U Et! Cb N In fR co O coco C N m N fA m U O J_ U Eta O (A O EA CC) N cc) � W U) CC) EA N 'c 7 C tp N C-0 O Ep N OO r O O C E1 N E m (a 04 vy (A O O C14 EFr U N m� C d 'N -C In co co In 7 U 7 O Cb Ci m _ > Eo» Em» CD (on o CD w m m V) m r En o v n m Cpo W E» E» 69 v 0 U C O O F- U v A m C a`> O Q m v 4-� 'o U ro O O O C -p _I J E C C =ro 0 O O C a) — > L C •C N C C to -O U E O C v N ro ro v U f0 v m O U O U ro ❑ m U N N a. � N a) ro F- U ro � C 7 j 'C � m 'M N M-0 W d O U ro O J C � C 2 C ro m C O N R' 0- O 0 s= N > O O O O C (0 ro F- F- E Co C W Q N �- Cl) O D N ro Cn U 1 L L c6 U 2 7 R O ui N J N O E O J A N N rn d C N O v- '� O O Z .0 fa m U m U O O CO v C 'C a) a) a) Q• (Aa Q. (� v (� In In 0 E.- a m O ami E N c v rn F- U U W v v o E a� a`ni a�'i c c v in a c' ° T ra m a> cvi y y Z Q- v Z X X O N m N f6 Y O E C N o p LL m m W W Q _m cn o o (n E a��i Baa) w W U U c/) Q Q> F- o) F- rn ro c v 0 v 0 v 0 Q a� (D O Q rn 0 .� c C C c c c En Q E c rn -p -O o= 'o 'o ` c 'o a>v C: m y v En v En v En v v v ; m v v o [i a� 0 E d m o� rn m rn rn 'c c v v v U v U" ro '� En c En c v a .c m `o c m c ro c ro c ro c ro c ro E in c EL L LO X v Q. v v f6 O U X N v 'C L .0 L L L L 'p O O O M M W W F- F- F- W cr m d U U U U U U Q S O O O O O ON M V O O O O O O O O O O O O O co d' (n CO I— co O O O O O O N M d' (n CO I-- co O O t` co O O O O O O O O O O O O O O O O O O O T O O O O O O O O O O T O T O T T T T r' T T T T T C) N O M m O C W co co N co U Li- Ce) L M M Q N 0 7 Q N CL T C O .N N E 7 U) 6 O O V (D N n O m O N .>N U Q y N C .N m U J d co N �C C O m mco C O N N (O N a N Em U N co m� c a� 'N L D 7N O to a:> M tD co T U 'o �O � L U a) N N (0 N N (0 L j 7 — (n N m N co 'o c C: UN LL (n co D O a) Q If ut U E co J y >, U y a) N N mO - m N N E (6 (q N •0. d >O 7 •U O L Q Q cl- IL N_r_ co W W N w c O ` coU W _E U N E c CO N N - 7 L ` N N N y co E N 'O 'O — E N U. n. U C (v U.. m D Z W J M LL LL J C C) Of 0 0 0 0 0 0 0 0 0 0 .-- 2 •--' t-- N M 't LO (D O N N (D (D (D (D (D (D (f) M M M C O C N w v 0 N O Cl) O C W as (3) i- 0 U U LL M Cl) i Q 7 Q a) Q F— C O U f) E .o D U) _ O ED a) � (O H3 fb (O ifl ((O r m (OCO, fA N W : H3 O W O Ffl O ifl O fH O fH O W O 09 O fH N O N O co, O fH O fH p v? O O (00 fT N O N f ;T O U) u� O M 10 � co co (0 O O O (D fH CD CD O O O O O O O O O O O O O O O O O CD O O O O O O J 013 613 fill ffT (a 01) 013 ffl fH fH 01) ffl fH 013 (a fH G9 � fill, CO, � ffl fill, W vl vl a) fa U) O a) 2 � rn a) U) U Q U U Q U t-_ a) a) 0 O. U D °� o U , N a) C C E a) > L_ a) U N O .N 'n O a) a) O O O LL a) LL U C O a a) f ` f C a) C :�+ C U U O O fn Co U) a) a3 a3 LL C a) Q CL t. O N C C a) U C w C 7 U > O ro c U) a� c O W fn — � aa) C a) O ¢ c�a ami C CL O w N > C w R U > O C a) > u - a3 C U E C a) O U a) E a) (n a) � a) � J a) E iA m ami F— O2 rn Y _j LL LL as a) o -a o 'E C ._ _ a3 �_ m _ O - (n m a) s ,n _ _ E 'L7 .r a) C p Q C6 U O O OC s O L > O p L > O "O � Z a7 F— F— 2 U 2 U Q m u O F— O 5 Z> 0_. U LL O CD c: F— Q Q 0 0 0 0 0 0_ O o C) 0 0 0 0 0 0 o O O o 0 0 0 0 O O O O N CO �t m O O O O O O O O O O O O M V' U') co O ����� M T N O O O O O O O O O O O O O r N C:)) N m E E 3 U) d N C d X x w c c O � C N d d CD -a A r r C w 0 N O M m O C W F N N L � O M M r O O (tl V w O fA O r w f N d3 O V3 m O r w N L LL7 �_ 69 O 69 O V3 O (fT O (A fD M Lr e/3 fD M Lr fA O O O N w m O Lq V (f3 (O CO O O U3 O U-1 O H3 O N N N w O V} O 69 0 0 0 0 4 0 0 0 0 0 CL 0 0 00 0 0 0 0 0 0 0 0 0 0 J w w w N (A 64 V3 w N69. V39 w 69 (A w w (A H3 H3 69 (H 69 W r- r - U) d yL Cl) C C co N > C C C O - O O '_ CY)m_ b Y C � LL O L U) CO CO L O -o -o Q c Cl)U O � U v a� 2i ,� a) , ' w ' Z w n. LL u' -O d U L Q) E d y C Cl)( C W m C co N U d C N U O U O U O N C C m N C m (m6 m Z C m - E N .� Q X Q _O Q (0 (n (n > C _ rn Y N> W W d .O N A v i '�'' O Co L C O C L L L> O L C > fl" U C O O_ (0 m U N 3 �' Co O O "O E Ql E O 0 L_ p (Oi) a) d d E C a) O O N N d 7 -0 (6 N E L 2i m <C W O O J h- Q O F- Q h- � W h- F- W (� It J cn W O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O o 0 0 0 0— 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M M 'c7' LCA C2 I� 02 00 m OO N co"t U' N CO SU) m ti CO � N N N N N N M M M M M M M M m m m O O O m m O m m O m m m m m m m m m m m m O N O Cl) ai O C w L a) U U % t0 F ti w O � N V N 69 to " ti ER N V N Ffi N V O O 64 M 7 o7 ch EfT O 64 O 64 co V W co 69 `- M y3. N ti � w V N 64 O N co 7 64 O ch N E4 N cD a M EfT ~_ a � 61T O 64 O M r, _ 69 O 64 (D (D N M 69 O O O o 0 0 0 0 0 0 0 O O o 0 0 0 0 0 0 0 0 J w EfT 69 64 64 64 64 69 CO. CO. EA 69 64 w 64 64 64 69 64 69 69 EA 64 N D C U C m N C U_ N U N cuCn 0O (Lo m J cu � � � O •U U n U) F U c c n o O .� O .6 OL O m L a 76 L 1 CL Q L1. C O C O O O ° '0 '0 '0 j L O .O L N L N C O (n E U U a) N (0 (0 (0 J O O o ,o c o w v) w C o C o C O U Ul Ul Ul U aJ N o o w p_, N O aa) m (o (o (o ai U ai U a) U a) m U w n. E U m a x w n o c L Q) C a� C_ a) C a) C a) > c (LO Q •w a) J m O a) t_ m m m a) C U N U N N U 7 U 7 U 7 N C N a C N O 2i 2i� m U. C U) N U) U U) U m U N C Ul CCU (0 O M I 1 1 _ L L >. _ C O L a) N C U N C � .0 Q .O M C (a C (a C O U U N U o L C9 Q. O E 000 .O 'O 0 m �O. Q72 (0 Q. (0 0- Q " O (0 N E >, -o -o v O O O w� a a a w� a ¢�— O U a m m m 0 0 0 C:) 0 0 O O O O O O O O O O 0 0 0 0 0 0 O O O O O O O O O O O N M ',i' O O �- O O O O N M U7 O �- N M lf) O �- N N M V Lo (D M V It V V Lo U) U7 Lo Lo CD (D CD (D CD CD CD (D CD (D (D m m m O O m m m m m m O m m m m m m m m m m A, q 0 N O ch C) O C W co N } U y U- M ch i Q 0 O =o O Q ai C_ C O U y E 7 U) Rf O b9 r- V m b9 O ER O ck ffY 64 U M I 00 _n U9, N �* Q V ck !f3 O ER CO N m M C' e} a (D m (to V 69 to N N N EA u fA O ff3 co V C C) m Va fA U O ER O [F3 O 2 O O O O O O O O O O O O O O O O O O O J W <f> b9 64 64 fH fH N (f3 lf3 fA t9 fA ol3 f}3 fA N ca fA fiY Cl)If N Cl) C N Q X W C N O 0 CD O m c U LL > O J _ O O y -O O (7 m T C co N OE C 'C > LL c t0 E OC O L C O O E O O N C N L Q N C O cn U O Q "O C N a c O aci E O C9 N C O C_ m 7 U c w y > U c (9 U >, C- X W O .0 >, C y C O co c L 0 c6 W a) O > as X W c 7- O ' O U) �• N O) t9 a. c O C C Q X Q) c C Z N U C N 0 E >, C N O " � N N N C Co O Cl) N m CX. W O] N L- C N c C c C' X (9 EL N cn X p O u- O W C d y y � W y ?, N W z O N 0 O m 0 w -o p 0 � 5 c CF C - N LO_ O O cu y O C Oc U X ' QC ) CC) QC )O c`o v in N m JO EL m CO m co U ca NEL •aO Q a) f0 N N > O O E O O X m O Q . N c6 `R) , N CN. Q U) F- c Q F- F- W W U 2 2 lL. U 0 F- O 0 0 O O o 0 0 0 o O O O O o 0 0 0 0 0 C) 0_ 0 C) O O .- N ch O O O O O O In 0 0 0 0 0 0 N M CO O r- N N N O O N CO CO d' In (O I'- 00 O O O O CO CO CO CO CO CO CO I- r- r- r- r- r- r.- r.- r.- O O O O O O O O O O O O O O O O O O O O O O r 0 X w E E 7 O N C O Q. x W O N O M CD O C W fa a) } L) U U LL Cl) Cl) Q =o D Q a) CL C O U) U E 7 Co 76 o f 0 s 0 0 rfl 0 rfl 0 (» 0 0 0 N f0 LO 0 va 04N N 0 M � m ~ 0 o cO t co o Ir In CCO t a3 V 0 C:) N O O O O O O O O O O O J fA Vi f/9 to 6% to fA VR fA fA fA O W C 76 O O U a� O @ @ O t � U ❑ O _0 iD N a) - p U Z) - c .•- UU E O a) @ a) c C: O O O O O a -0O a) ca _ E m U (`9 CO U U 0 CD c E -p O UU) 0 'O a Z) > a }, m .O N LL C J ..� N a) U Q ,n o c �o W Q a a) U i O U U)❑❑ E E O15 U) U a) a) J a) CC 0 _j U) a) Z f0 U U a O .� O C a) F- U U W d a) ` a) Q U U CL O O m C C a) a) O E N a) N C C 'U U ❑ U C OU .@ f0 m a) U (0 ) Z d Z a) N (D m O E C d N O O LL co E E x W x W (C0 c v c 4 w> U U Z) co Q Q> I— m w c E a) U a) U a) ,n ,n a) a) ❑ Q W 0 _ C — C _ C — C — C — c', — �". U Q L C u) u) — O` Un - Un - L T3 m �-• O U a) U) a) U a) U a) U) a) U) a) _ U m c O ca tII a) a) O a- � U ) U � C a m m m m m m 'E c 'U a) U a) U O U ` ` U C U c O O C �. C C C C C C E O O` i O O O �0 U O" m O 'c m m m m m m 'O C O �'' C Q- O a a X W Q. 0 c c f- I- O f- x W a) Q a) m a_ .0 U U .0 U .0 U L U L U Q 2 D O O O O O N M O O O O O O O O O O O O O O "It LO co ti co m m m m O O N c) Loi CO I-- com O 1-- 00 m O O O O O O O O O c- O O O O O O O O O O O O O O O O O � O O O — r — r c- r N O N �O c+7 O C w c9 a) } co U U Ll - Cl) co Q a� a Q ai CL F>' C O U U U fo f– w cD N ~ CD U) a) U) ns U Q) m a s 7 U U a � 0> � c6 C 0 '0C U LL. cu U 3 U. O a)❑ Q Of , a)C E m J C . >, lL U a) a) U E (6 n' C E E 0> v °' U 0- 0- > U Q) M 0 0 Q. m 0_ cu 0 ui w E m U c 0 «s «s v E U a) a) o a) p m Q) U U) a C O -C -C: N U E a) -0-0 C U c6 lL Q. Z U W C J -' m LL LL N J C LL U a) C' O O O O O O O .- P— _O N cM ';t LO CO _O O N N c0 c0 (O (O c0 (O LO m 2 2 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 TABLE OF CONTENTS FINANCIAL SECTION Page Independent Auditors' Report ......................................................................................... 1 Management's Discussion and Analysis........................................................................ 3 Statementsof Net Position............................................................................................ 8 Statements of Revenues, Expenses and Changes in Net Position ............................... 9 Statements of Cash Flows............................................................................................ 10 Notes to the Financial Statements................................................................................. 12 FEDERAL AWARDS SECTION Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 19 Independent Auditors' Report on Compliance with Requirements That Could Have A Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133 .............................................. 21 Schedule of Findings and Questioned Costs................................................................. 23 Corrective Action Plan.................................................................................................... 24 Schedule of Status of Prior Findings.............................................................................. 25 Schedule of Expenditures of Federal Awards................................................................ 26 Notes to Schedule of Expenditures of Federal Awards .................................................. 27 HUD Financial Data Schedule........................................................................................ 28 Members: g� AMERICAN INSTITUTE OF ANKINS, EASTUP9 DEATON 9 CERTIFIED PUBLIC ,Y ONN & SEAY ACCOUNTANTS 11�V1V TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORATION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report of the Financial Statements 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940) 387-8563 FAX (940) 383-4746 We have audited the accompanying financial statements of the Housing Authority of the City of Denton, Texas ("the Authority"), which comprise the statements of net position as of September 30, 2015 and 2014, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Housing Authority of the City of Denton, Texas as of September 30, 2015 and 2014, and the changes in its net position and its cash flows for the years ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 7 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Housing Authority of the City of Denton, Texas' basic financial statements. The HUD Financial Data Schedule is presented for purposes of additional analysis and is not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations, and is also not a required part of the basic financial statements. The HUD Financial Data Schedule and the schedule of expenditures of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the HUD Financial Data Schedule and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 24, 2016 on our consideration of Housing Authority of the City of Denton, Texas' internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Housing Authority of the City of Denton, Texas' internal control over financial reporting and compliance. Hankins, Eastup, Deaton, Tonn & Seay, PC �.. Denton, Texas June 24, 2016 E HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2015 The following is an analysis of the financial performance of the Housing Authority of the City of Denton, Texas (the "Authority"). It is intended to provide the reader with an overview of the Authority's financial activities for the fiscal year ended September 30, 2015. The information contained in this MD&A should be considered in conjunction with the Authority's basic financial statements. Financial Highlights The Authority's total assets decreased from $6,989,951 to $6,259,781, a decrease of $730,170 or 10.4%. The unrestricted net position balance is $2,012,275 at September 30, 2015. This represents a decrease of $229,259, or 10.2% from the previous year. Unrestricted net position represents the amount of available funds for future appropriations. Operating revenues decreased from $12,762,871 to $10,973,856, a decrease of $1,789,015 or 14.0% primarily due to the decrease in the Section 8 Voucher funding. Operating expenses increased by $33,585 to $11,840,527 for the current year. The increase was primarily due to increased maintenance costs. Using this Annual Report This annual report consists of basic financial statements and notes to the financial statements. Management's Discussion and Analysis provides a narrative of the Authority's financial performance and activities for the year ended September 30, 2015. The basic statements provide readers with a broad overview of the Authority's finances. The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. 3 The basic financial statements consist of three statements: 1. The Statement of Net Position provides information on all the Authority's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial situation of the Authority is improving. 2. The Statement of Revenues, Expenses and Changes in Net Position presents information showing how the Authority's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Certain revenues and expenses are reported in this statement that will result in cash flows in future periods. 3. The Statement of Cash Flows presents information showing how the Authority's cash changed during the most recent fiscal year. It shows the sources and uses of cash. The Authority's housing programs include the Housing Choice Voucher Program, Management Program, and DHAP. The Housing Choice Voucher Program provides rental assistance to aid low income families to afford decent, safe and sanitary rental housing. The Authority provides rental assistance in the form of a Housing Assistance Payment to a landlord on behalf of the tenant. The DHAP program ended, however, the Authority still holds funds totaling $81,827 related to that program that are currently restricted. The Authority currently has 1,526 baseline units available. Funds are provided by HUD to provide rental assistance payments. The Authority is provided an administrative fee for the purpose of covering the administrative costs of the program. The fee is preset by HUD on an annual basis. The Authority administers a management fund designed to perform asset management responsibilities for additional properties. Payment for the Authority's administrative office and other rental properties support the Management Program. The Authority organized the Denton Public Facility Corporation (DPFC) in December 2012 to receive and operate a twenty-four unit low-income housing facility. The Authority owned a portion of the general partner of Denton Senior Housing Development, L.P. which held the facility. After the fifteen -year compliance period related to tax credits expired, the limited partner transferred the entire interest in the facility to DPFC. The Authority must operate the facility under the supervision of the Texas Department of Housing and Community Affairs for an additional fifteen years. Renaissance Courts is a multi -family project that received a tax credits award from Texas Department of Housing and Community Affairs for the development of a 150 unit town -home style, affordable housing project. The development provides for mixed income and market rate rents. The Authority formed Renaissance Courts Public Facility Corporation to serve as the general partner of Renaissance Courts, L.P. a limited partnership to fund and operate the project. Funding comes from the limited partners purchasing the tax credits and a HUD insured 221 (d)4 mortgage. Operation of Renaissance Courts is managed by an outside management group and funded from rental revenues. The Authority received a developer fee this fiscal year and is still to receive additional deferred developer fees in the future, based on the project's cash flow. 2 Authority Activities & Highlights The Authority's overall financial position and operations for the past two years are summarized below based on the information in the current and prior financial statements. The table below lists the asset and liability comparisons for the years ended September 30, 2015 and September 30, 2014. Statement of Net Position Categoa FYE 2015 FYE 2014 Change % Current Assets — Unrestricted $ 1,937,382 $ 2,150,768 -9.9% Current Assets - Restricted 257,421 1,035,522 -75.1% Capital Assets Net of Depreciation) 3,851,376 3,590,058 7.3% Other Non -Current Assets 213,603 213,603 0.0% Total Assets 6,259,782 6,989,951 -10.4% Current Liabilities 109,355 99,895 9.5% Non -Current Liabilities 29,356 22,942 28.0% Total Liabilities 138,711 122,837 12.9% Unrestricted 2,012,275 2,241,534 -10.2% Net Investment in Capital Assets 3,851,375 3,590,058 7.3% Restricted 257,421 1,035,522 -75.1% Total Net Position $ 6,121,071 $ 6,867,114 -10.9% Assets The decrease in current assets -unrestricted was due to a decrease in cash as a result of lower administrative fee income. The decrease in current assets -restricted, is due the Authority receiving less funds from HUD than it expended for tenant rents. The increase in capital assets was due to technology purchases and major renovations at Heritage Oaks Apartments. Other non-current assets is a receivable from a related housing development. The Authority advanced funds to refinance existing debt on the development. Liabilities Current liabilities increased primarily due to an increase in accounts payable and accrued compensated absences. Net Position The Authority's unrestricted net position decreased slightly as the Authority spent unrestricted cash on fixed assets. The net investment in capital assets increased due to major renovations at Heritage Oaks. Restricted net position decreased due to a decrease in housing assistance funding from HUD. 5 Statement of Revenues & Expenses gaimo-a FYE 2015 FYE 2014 Change % HUD Operating Grants $ 9,931,026 $ 11,082,544 -10.4% Tenant Revenue 770,371 687,096 12.1% Interest Income 1,703 2,263 -24.7% Other Revenue 391,384 993,231 -60.6% Total Revenue 11,094,484 12,765,134 -13.1% Administration 1,118,295 1,181,798 -5.4% Tenant Services 5,144 5,661 -9.1% Utilities 107,162 100,673 6.4% Ordinary Maintenance 467,062 372,318 25.4% General Expense 26,181 57,942 -54.8% Depreciation 239,676 221,126 8.4% Housing Assistance Payments 9,877,007 9,867,424 0.1% Loss on disposition of asset - 2,029 -100.0% Total Expenses 11,840,527 11,808,971 0.3% Results of Operations Revenues Operating revenues of the Authority are generated principally from dwelling rents, Section 8 Administrative fees, HUD grants, and rental assistance payments. The Authority's revenues decreased by $1,670,650. The primary reason for the decrease in revenue was a decrease in Section 8 voucher funding, decreased payments from other housing authorities and less insurance proceeds from storm damages, partially offset by an increase in tenant revenue. Tenant revenue increased due to an improved lease out percentage at Heritage Oaks. Interest income decreased due to decreasing interest rates paid by banks. The decrease in other revenue is due to decreased payments received from other housing authorities with clients living in the Authority's boundaries and a decrease in insurance payments due to prior year storms. Expenses Total expenses increased by $31,556 over the prior year. Administrative expenses decreased due to broad cost cutting across several areas including salaries, legal, postage and others. Utilities increased as North Texas had a warmer summer than the previous year. Ordinary maintenance increased due to additional maintenance issues with Heritage Oaks. The decrease in general expense was due to a decrease in bad debt. The increase in depreciation expense was due to technology purchases and renovations at Heritage Oaks. Housing assistance payments barely changed as the Authority continued working on keeping their vouchers utilized. 0 Capital Assets As of September 30, 2015, the Authority's investment in capital assets was $ 3,851,375. This investment includes land, building, building improvements, office equipment, and maintenance equipment. The increase in capital assets is the result of technology purchases and renovations at Heritage Oaks. 22LM-0a FYE 2015 FYE 2014 Change % Land $ 1,203,916 $ 1,203,916 0.0% Buildings and improvements 8,167,699 7,694,337 6.2% Equipment 348,378 329,863 5.6% Construction in progress 9,116 - 100.0% Accumulated Depreciation 5,877,734 5,638,058 4.3% Total Net Fixed Assets $ 3,851,375 $ 3,590,058 7.3% Future Economic Factors The Authority will continue to use excess HAP funds and HUD held reserves to cover funding shortfalls from HUD. The Authority will continue to receive developer fee revenues from Renaissance Courts and income from commercial buildings. The Authority has formed Denton Public Facility Corporation to develop 322 multi -family units of affordable housing using tax credits and tax-exempt bonds. The Authority expects to earn developer and management fees and bond issuance fees from this development. The Authority will work with developers to construct more affordable housing to earn additional developer fee revenues. The Authority also plans to sell vacant land that cannot be used for affordable housing development and use those funds for operational and development purposes. Request for Information This financial report is designed to provide a general overview of the Authority's accountability for all those interested. If you should have additional questions regarding the financial information, contact the Executive Director at Denton Housing Authority, 1225 Wilson Street, Denton, TX 76205. 7 HOUSING AUTHORITY OF THE CITY OF DENTON. TEXAS STATEMENTS OF NET POSITION - PROPRIETARY FUND TYPE SEPTEMBER 30, 2015 AND 2014 ASSETS 2015 2014 Current Assets: Cash and cash equivalents $ 1,465,866 $ 1,720,687 Cash and cash equivalents - restricted 257,421 1,035,522 Accounts receivable - net 5,809 6,133 Accounts receivable - HUD 66,270 24,007 Investments 380,234 379,450 Prepaid expenses 19,203 20,491 Total Current Assets 2,194,803 3,186,290 Non -Current Assets: Due from related party - net 213,603 213,603 Capital assets Land 1,203,916 1,203,916 Building and improvements 8,167,700 7,694,337 Furniture and equipment 348,378 329,863 Construction in progress 9,116 - Accumulated depreciation (5,877,734) (5,638,058) Total Capital assets 3,851,376 3,590,058 Total Non -Current Assets 4,064,979 3,803,661 Total Assets 6,259,782 6,989,951 LIABILITIES Current Liabilities: Accounts payable 33,478 27,763 Accrued salaries payable 50,377 50,082 Security deposits payable 25,500 22,050 Total Current Liabilities 109,355 99,895 Long -Term Liabilities: Accrued compensated absences - non-current 29,356 22,942 NET POSITION Net investment in capital assets 3,851,376 3,590,058 Restricted 257,421 1,035,522 Unrestricted 2,012,274 2,241,534 Total Net Position $ 6,121,071 $ 6,867,114 The accompanying notes are an integral part of this statement N HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Operating Revenue: Tenant revenue Federal housing grants Management income and other operating revenue Total Operating Revenues Operating Expenses: Administration Housing assistance payments Tenant services Utilities Maintenance Insurance Bad debt expense Depreciation Total Operating Expenses Operating Income (Loss) Non -Operating Revenues (Expenses) Interest income Insurance proceeds Gain/(loss) on disposition of asset Total Non -Operating Revenues (Expenses) Change in net position Net Position, Beginning of Year Net Position, End of Year 2015 $ 770,371 9,931,026 272,459 10,973,856 1,118,295 9,877,007 5,144 107,162 467,062 26,066 115 239,676 11, 840, 527 (866,671) 1,703 118,925 120,628 (746,043) 6,867,114 $ 6,121,071 The accompanying notes are an integral part of this statement 9 2014 $ 687,096 11,082,544 993,231 12,762, 871 1,181,798 9,867,424 5,661 100,673 372,318 26,346 31,596 221,126 11, 806, 942 955,929 2,263 (2,029) 234 956,163 5,910,951 $ 6,867,114_ HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30.2015 AND 2014 2015 2014 Cash Flows From Operating Activities Cash received from HUD $ 9,888,763 $ 11,027,103 Cash received from tenants and other housing authorities 1,013,328 1,217,797 Cash received from other sources 33,276 435,848 Cash payments for rent and utility assistance (9,877,048) (9,867,424) Cash payments for administrative and operating expenses (1,710,091) (1,722,630) Net cash provided (used) by operating activities (651,772) 1,090,694 Cash Flows From Investing Activities Interest on investments 1,703 2,263 Cash from special item 118,925 - Acquisition of capital assets (500,994) (207,385) Sale (Purchase) of investments (784) (902) Net cash provided (used) by investing activities (381,150) (206,024) Cash Flows From Capital and Related Financing Activities Cash advanced to related party - (213,603) Net cash provided (used) by capital and related financing activities - (213,603) Net Increase (Decrease) in Cash and Cash Equivalents (1,032,922) 671,067 Cash and Cash Equivalents, Beginning of Year 2,756,209 2,085,142 Cash and Cash Equivalents, End of Year (includes restricted cash of $257,421 and $1,035,522 at September 30, 2015 and 2014, respectively) $ 1,723,287 $ 2,756,209 The accompanying notes are an integral part of this statement 10 [MoogA !' i •_ STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE (CONTINUED) FOR THE YEARS ENDED SEPTEMBER 30. 2015 AND 2014 Reconciliation of Net Operating Income to Cash Provided by Operating Activities: Net operating income (loss) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Decrease (increase) in accounts receivable -net Decrease (increase) in accounts receivable -HUD Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accounts payable - HUD Increase (decrease) in accrued salaries payable Increase (decrease) in security deposits payable Net Cash Provided by Operating Activities The accompanying notes are an integral part of this statement 11 2015 2014 $ (866,671) $ 955,929 239,676 221,126 324 1,465 (42,263) (24,007) 1,288 (16,633) 5,715 (20,992) - (31,434) 6,709 1,790 3,450 3,450 $ (651,772) $ 1,090,694 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The Housing Authority of the City of Denton, Texas (the "Authority") is a governmental entity with the purpose of providing low income families with reasonable assistance for housing, giving consideration and care for their well-being, and promoting family self- sufficiency to all families without discrimination. The Authority primarily serves the residents of Denton County, Texas. The Authority's primary funding source is the U.S. Department of Housing and Urban Development under the Section 8 Rental Voucher Program. Basis of Presentation The activities of the Authority are similar to those of proprietary funds of local cities and therefore are reported as an enterprise fund in accordance with governmental accounting and financial reporting principles issued by the Governmental Accounting Standards Board (GASB). Accordingly, transactions are accounted for using the accrual basis of accounting. Under Alternative 1 of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the Authority has elected to apply all standards issued on or before November 30, 1989, by the Financial Accounting Standards Board (FASB), in addition to all GASB standards. Capital Assets and Depreciation The Authority records capital assets at cost and provides for depreciation using the straight-line method over the respective estimated useful lives. Furniture and equipment are depreciated over five years. Buildings and improvements are depreciated over thirty to forty years. The cost of normal maintenance and repairs is charged to operating expenses as incurred. Income Taxes The Authority is not subject to income taxes. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an initial maturity of three months or less. Cash and cash equivalents — restricted represents excess HAP and DHAP funds. See Restricted Net Position. 12 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Net Position The Authority receives payments from the U.S. Department of Housing and Urban Development ("HUD") in monthly installments as determined at the beginning of the year based on anticipated needs. At the end of the year, HUD determines how much of the advanced funds were earned by the Authority. Differences in the amounts advanced and the amount earned create excess HAP funds. The Authority must calculate the excess HAP funds, but keeps the excess funds to use towards any funding shortages in future periods. The funds may only be used in connection with the rental voucher program. The Authority calculated the excess funding of $257,421 and $1,035,522 as of September 30, 2015 and 2014, respectively, which it shows as restricted net position in the statement of net position and as cash and cash equivalents — restricted. The balances of the restricted net position accounts for voucher programs are as follows: Excess HAP — Section 8 Voucher Excess HAP — DHAP Total restricted assets — voucher programs See also Note 3. Compensated Absences 2015 2014 $ 175,594 $ 953,695 81,827 81,827 $ 257,421 $ 1,035,522 Regular, full-time employees receive compensation for vacations, holidays, illness, and certain other qualifying absences. Compensated absences, which have been earned but not paid, have been accrued in the accompanying basic financial statements. For all compensated absences, the liability is valued using pay rates in effect at the end of the Authority's fiscal year. Prepaid Expenses Payments made to vendors for services that will benefit future fiscal periods are recorded as prepaid expenses. 13 NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value of Financial Instruments The Authority values cash, cash equivalents, investments, receivables and current liabilities at their carrying amounts reported in the financial statements due to the short maturities of those instruments. Date of Management's Review Management has evaluated subsequent events through June 24, 2016, the date on which the financial statements were available to be issued. NOTE 2 — REPORTING ENTITY The Authority, for financial purposes, includes all of the accounts relevant to the operations of the Authority. The financial statements presented herein do not include agencies which have been formed under applicable state laws or separate and distinct units of government apart from the Authority. The Authority is governed by a five member Board of Commissioners, who are appointed by the City of Denton, Texas City Council. NOTE 3 — DEPOSITS AND INVESTMENTS Deposits Deposits, including those in restricted assets, are defined as cash or cash equivalents on deposit with financial institutions. At September 30, 2015, the carrying amount of the Authority's deposits was $1,723,287 and the bank balance was $1,743,348. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2015, all of the Authority's deposits were covered by FDIC insurance or pledged securities. At September 30, 2014, the carrying amount of the Authority's deposits was $2,756,209 and the bank balance was $2,765,115. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2014, all of the Authority's deposits were covered by FDIC insurance or pledged securities. 14 1:1*11.&JIlLeir-711o- i aceiii,i NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED) Cash and cash equivalents consist of the following at September 30: 2015 2014 Cash and cash equivalents — unrestricted $ 1,465,866 $ 1,720,687 Cash and cash equivalents - restricted 257,421 1,035,522 Total cash and cash equivalents $ 1,723,287 $ 2,756,209 Investments The Authority's investments consist of bank certificates of deposit. The certificates of deposit total $380,234 and $379,450 at September 30, 2015 and 2014, respectively. The certificates of deposit are insured up to $250,000 per financial institution. Custodial Credit Risk Custodial credit risk, for deposits and investments that are certificates of deposits, is the risk that, in the event of a bank failure, the Authority's deposits may not be returned. As of September 30, 2015 and 2014, the Authority's deposits were either collateralized or covered by FDIC insurance. For sixteen days during the fiscal year ended September 30, 2015 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $881,868. For sixteen days during the fiscal year ended September 30, 2014 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $799,682. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an instrument. The Authority's investments were in certificates of deposits with maturities no longer than two years. Credit Risk Credit risk is the risk that an issuer or other counterparts to an investment in debt securities will not fulfill its obligation. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage sixteen days during the years ended September 30, 2015 and 2014, respectively. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the Authority's investment in a single issuer. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage sixteen days during the years ended September 30, 2015 and 2014, respectively. 15 ilk NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 4 — Capital Asset Activity Capital asset activity for the Authority for the year ended September 30, 2015, was as follows: Less accumulated depreciation for: Buildings and improvements (5,391,063) (203,752) - (5,594,815) Furniture and equipment (246,995) (35,924) - (282,919) Total accumulated depreciation (5,638,058) (239,676) - (5,877,734) Total capital assets being depreciated, net 2,386,142 252,202 - 2,638,344 Total capital assets, net $ 3,590,058 $ 261,318 $ - $ 3,851,376 NOTE 5 — RISK MANAGEMENT The Authority is exposed to various risks of loss related to theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The Authority manages its risk of these types of losses through the purchase of commercial insurance. There were no significant reductions in insurance coverage from the previous year, nor have there been settlements in excess of insurance coverage for any of the past three fiscal years. M Balance Retirement/ Balance Oct.1 Additions Adjustment Sept. 30 Capital assets not being depreciated: Land $ 1,203,916 $ - $ - $ 1,203,916 Construction in progress 9,116 - 9116 Total assets not being depreciated 1,203,916 9,116 - 1,213,032 Capital assets being depreciated: Buildings and improvements 7,694,337 473,363 - 8,167,700 Furniture and equipment 329,863 18,515 - 348,378 Total capital assets being depreciated 8,024,200 491,878 - 8,516,078 Less accumulated depreciation for: Buildings and improvements (5,391,063) (203,752) - (5,594,815) Furniture and equipment (246,995) (35,924) - (282,919) Total accumulated depreciation (5,638,058) (239,676) - (5,877,734) Total capital assets being depreciated, net 2,386,142 252,202 - 2,638,344 Total capital assets, net $ 3,590,058 $ 261,318 $ - $ 3,851,376 NOTE 5 — RISK MANAGEMENT The Authority is exposed to various risks of loss related to theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The Authority manages its risk of these types of losses through the purchase of commercial insurance. There were no significant reductions in insurance coverage from the previous year, nor have there been settlements in excess of insurance coverage for any of the past three fiscal years. M S O "61 -ill * jno NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 NOTE 6 — EMPLOYEE RETIREMENT PLAN The Authority maintains an employee retirement plan for all full-time employees after 90 days of employment. The plan is a defined contribution plan. The Authority contributes 7% of eligible employees' compensation, and employees may make voluntary contributions of up to 10% of their compensation. For the year ended September 30, 2015 and 2014, the authority recorded $36,513 and $43,670, respectively, as retirement contribution expense. NOTE 7 — RELATED PARTY TRANSACTIONS In October of 2004, the Authority formed Renaissance Courts Public Facility Corporation, a not-for-profit entity, to become a general partner in Renaissance Courts, L.P. The Authority transferred low-income housing credits obtained from the Texas Department of Housing and Community Affairs to Renaissance Courts Public Facility Corporation, who in turn, transferred them to Renaissance Courts, L.P. Renaissance Courts, L.P. is a partnership formed to build and operate a 150 unit housing project in Denton, Texas. An outside management group manages the housing project which opened in the summer of 2006. In the event Renaissance Courts Public Facility Corporation is dissolved, any remaining assets, after all of the obligations of the corporation are paid, will be transferred to the Authority. The Authority's directors are also the directors of the Renaissance Courts Public Facility Corporation. In 2014, the Authority advanced funds to the project to facilitate refinancing debt on the project. The advance totaled 213,603 and is shown as due from related party on the statement of net position. NOTE 8 — ACCOUNTS RECEIVABLE Accounts receivable at September 30, 2015 and 2014 consists of the following: Tenant receivables Receivables due from other Housing Authorities Receivables due from tenants from fraudulent activity Other receivables Less allowance for doubtful accounts Total 17 2015 2014 $ 1,331 $ 2 9,043 9,742 16,674 2,946 (24,185) $ 5,809 20,459 (24,070) $ 6,133 1;1011&11a !' ! ! 114NUO NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2015 AND 2014 Note 9 — Inter -program Receivables and Payables Inter -program balances at September 30, 2015 and 2014 consisted of the following individual program receivables and payables: Program Housing Choice Voucher Program: Business Activities New Construction Program Senior Housing Program Senior Housing Program: Business Activities Housing Choice Voucher Program New Construction Program: Housing Choice Voucher Program Business Activities: Housing Choice Voucher Program Senior Housing Program 2015 2014 Receivable Payable Receivable Payable $ - $ 6,013 $ - $ 4,630 3,442 - - 117 504 - - - 35,698 - 82,764 504 - - 3,442 117 - 6,013 - 4,630 - 35,698 - 82,764 - $ 45,657 $ 45,657 $ 87,511 $ 87,511 These accounts were eliminated in the preparation of the general-purpose financial statements. Note 10 — Special Item The Authority was a majority owner in Denton Housing Partners, Inc. the general partner to the Denton Senior Housing Development, L.P. which owned and operated a twenty- four (24) unit low income housing facility for tenants meeting certain income qualifications and are at least sixty-three (63) years of age. Effective December 20, 2012, the limited partner transferred and assigned 100% of its limited partner interest in the partnership to Denton Public Facility Corporation (DPFC). DPFC agreed to accept the transfer and assignment and to release the limited partner from certain of its obligations. DPFC is a public facility corporation and instrumentality of the Housing Authority of the City of Denton, Texas. The Authority now accounts for the assets and liabilities in DPFC as its own as a separate program. 18 FEDERAL AWARDS SECTION Members: AMERICAN INSTITUTE OF HANKINS, EASpUP, DEA ON , CERTIFIED PUBLIC ACCOUNTANTS TONpSEAY TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORATION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940) 387-8563 FAX (940) 383-4746 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Housing Authority of the City of Denton, Texas (the "Authority") as of and for the year ended September 30, 2015, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements and have issued our report thereon dated June 24, 2016. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 19 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of the audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. ECO Q�, Igry d Hankins, Eastup, Deaton, Tonn & Seay, PC Denton, Texas June 24, 2016 20 Members: ry� �T AMERICAN INSTITUTE OF ANKINS, 1EAT Sp'I'UP9 DEA DATON, 9 CERTIFIED PUBLIC ACCOUNTANTS SEAY TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORATION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940) 387-8563 FAX(940)383-4746 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY OMB CIRCULAR A-133 Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report on Compliance for Each Major Federal Program We have audited Housing Authority of the City of Denton, Texas' compliance with the types of compliance requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of Housing Authority of the City of Denton, Texas' major federal programs for the year ended September 30, 2015. Housing Authority of the City of Denton, Texas' major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of Housing Authority of the City of Denton, Texas' major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Housing Authority of the City of Denton, Texas' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Housing Authority of the City of Denton, Texas' compliance. 21 Opinion on Each Maior Federal Proaram In our opinion, Housing Authority of the City of Denton, Texas complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2015. Report on Internal Control Over Compliance Management of Housing Authority of the City of Denton, Texas is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Housing Authority of the City of Denton, Texas' internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Housing Authority of the City of Denton, Texas' internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Hankins, Eastup, Deaton, Tonn & Seay, PC Denton, Texas June 24, 2016 22 R"I U, .0. M SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2015 1. Summary of Auditors' Results a. Type of auditors' report issued on the financial statements: Unmodified. b. Financial statements — internal control over financial reporting: Material weakness (es) identified: No Significant deficiencies identified that are not considered to be material weakness: No c. Noncompliance which is material to the financial statements: None d. Federal Awards — internal control over major programs: Material weakness (es) identified: No Significant deficiencies identified that are not considered to be material weakness: No e. Type of auditors' report issued on compliance for major federal award programs: Unmodified. f. Did the audit disclose findings which are required to be reported under Section .510(a)2-7 of OMB Circular A-133: No g. Major programs include: Section 8 — Rental Voucher Program, CFDA number 14.871 h. Dollar threshold used for distinguishing between Type A and Type B programs: $300,000. i. Low risk auditee: Yes 2. Findings Related to the Financials Statements None 3. Other Findings None 23 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2015 CORRECTIVE ACTION PLAN N/A 24 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS SCHEDULE OF STATUS OF PRIOR FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 2015 FINDING/NONCOMPLIANCE N/A 25 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 FEDERAL GRANTOR/ Federal PASS-THROUGH GRANTOR/ CFDA Federal PROGRAM OR CLUSTER TITLE Number Expenditures ki ffifll -ia Wei Section 8 — Rental Voucher Program Total U.S. Department of Housing and Urban Development 14.871 $ 9,931,026 9.931.026 Total Expenditures of Federal Awards $ 9,931,026 I: C+1I_[1Vd! CA7- + 7 �: f ��i �r7 Thr•=�ti7 :I �i NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2015 NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Denton, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and Non -Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 27 N O) Ch F— u O Q E O 2 E O E CU M 54 m E E 7 U) d X F U) C U O � C m M m m C W Lf; O N O Cl) m O 'D E w (6 O (6 U O LL ca O CD V O N CD O CD ti M p CD N O v m pmj m O N O ti O O V i0 w O O O N ��-- 7 Ln � cr co O ti fR O O CO N O N N fA N (fl yg to N N yg fA N U co O V P7 w O N N 0 N O CO l0 O co ti N Qui V N co m O m N N m a) N 69, � m U p J h N co h N co N O m N co 69 co ({3 N 'c 7 c-0 a) CD C m LO O O to co L M m M O Ln ti ti co O CL N E N to co (C h619. ao m fR Ft' fA o 619. O en m O V) EH U N 01 � C N j LO m N m titi aOD N = p > NCO M OBJ O rn Ln V O e» O U9. 0) p N (p (O O (H O O (fi O (fi N ti d9 O e» (D O M (D O O `" cr (O pj Un O N9 O 69 ti p O 63 CO U Ea vg� tl3 0 �U m C O U U Q C N Q f0 N E O _ 5 J O =_ n n c E z > Jc6 U)C) N 7 n O aEi c 2 0 0 E 0) F7 O Lt_ E N 7 .,U. CL E 7 I (6 a O N U U - O O N m > y U A N O O O p ` .E O ( (9 7 7 U U 7 (0 ?: w Q O O C E O O O O — d v CD E m Z U) Co cc: Q Q U 0 Q O n Q .n o O '0 'D Q tU _ �--' 7 7 Im 7 > O N Uj O O N O N O O O 7 O Z m . N N 'D N 'D (0 f6 (6 (6 (0 OO O O U) U N O (n O > > > > > >L' m O C N Q' O Q' N N U U U U U U U O O N > 'O O fn �_ C N O O O O (0 OU U N C > U C C C X. M Z) d' f'-' Q' N +m-. (6 f0 J Co �o � O O N O ( i l( U_ tttt>>>>> 3 3 3 m� E E E o O O O O O O O _ O _ cl 'D O _ ? N O O O O N O E O N O N O O O O O U Q Q O Q UU O > > > i > U U U U U F— Q Q Q Q Q N Z LL — Q F— E E E CL E N M 'cY Ln O N 'ct m co O O ti m OO m O N Ln N co r O N N CV r CV N N N r N NN r N N FAI T, O N O M O) O C W (0 U LL M Cl) Q m m c CL ui H C: 0 0 0 E 7 U) 6 .0 U% d •� U QL y y C •y m v Co I -to (n (fl M V. to r U).W 0 CA M o v (n .a ENA _ N co O fA W ;;t: m O N fA O Q) O h 69 O O (-- (D(D r c co fl- CO m h EA N (D -k (() Q) Wm N EA h O ( p m 0 EA co co I- (D L() N (O N CO fA (D to (D C 0 69 (D r, cr (n W N V M N h EA 0 EA 0 Vd 0 EA 0 EA 0 EA W h cr (n Wcri 6�9 L() t7 co N 1_ fA 0 V>O Q) M It Ln to W P) (o In N EA m U o J_ N N co co N EA EA W a U) W EA !fl N 'c 7 � c a a) 'V N Cl1 r r0 N (D W o) '� D) N m N M N c 0 nasi rnwLO co v_ v_ v (n ( Lri o 0 o 0 m E m � (0 fA EA EA a (fl N EA N fA N EA (1 N co CA IO C N L y (� 7 co O O O O fl- O Il - C7 = D > 0 EA m o fA Cl ED o EA a) L 0 EA Cl) N 0 EA ED 0 fA 0 Efl (D 0 EA 0 EA 0 EA 0 fA 0 EA (D o W. (° 03 14 U m 61), (o N N Lf N cq 04 � W •�EA V � fA 69 N to c o c � ' c gv Ucn ( U a) N co �N Q c 0 Z c o C c ❑ ( Z 0 _ a) N N ❑ Q Co f9 > co .... 0 a) U '>3 C 0) C C U U O U a) C O O C U U ¢ N 7 cn O a) ` O ca co O cu n O U7 0 0.S �d O N to Z O 'C 0) C 0 C U a) (� C C 4C: E 0 Q a) N (On LL a) a) (0 a) O a) Q. 0) N O ( O C O O O N d d O2 0 CL vOi C:ejf � 7 a) 30 "O cu fn (10 'o W W O 0 7 'Q co C: U U 0 °vi C: m 8 0 0 2 0 ai ai o io 0 m o o a) tY U) U) c m c 0 0 0 3 Q 0 U c wm E U Q E z Q (n (n Q °� o cco >>> m O 0 w 0 0 0 2 > Q I- m tL tL -i Q U C:I- Z Z C9 O 5 l0- l0- Cl) �i LO O r N M 't u CO I- a0 O r CN co m O O O CO CO CO CO m m m CO CO I-- ti ti ti ti 00 O (D .- r• .- .- r• r• r• r r• r• r• r• .- .- N N N M X f-- O M Q D1 C M O C O C N cl m E E 3 co X a) 0 U O C N � f0 cl m d w C W T O N O m O C W CD a] L) U () U - Cl) Cl) Q a) =o ca C Z) a) Q Fes' C: 0 E o co N Q N N C N m U J � co ro N O t9 rn r N fA N Q) fA O t9 ti to o C fA V N O fA co w w N EA co (H 0 di o t9 to m o E9 O E9 o o N t9 o rn N m O t9 O t9 o fA an m M t7 Cn O N f9 ti o V f9 o t9 M O N iy fD � O t9 O f9 o 6% o 69 Ln m M N E9 ti O (7 t9 0 t9 0 co, c O C m N M " N N (D N co CL N E m XT to a7 E» XT 6% N f7 e9 i9 m 6% co 61) N 61) o U N (D Im N C o U ym D) Oco M co O = a:O co O ti N N O O 117 w O O O O O O O O p O Q) O O O O O 6% 6% M w e9 69 N E9 69 6% 6% 69 611 !9 t9 69 69 69 611 nj UA 6% _ ti v O � e» 40 �U NCD m rn 3 t o 0 c C 3 0 0 o m Ui C � a) m a) .O � O 3 U m n t co 0 0 0 U m c a) U O Q a0� Z o 0) E I I co U Ci O w 0 c r5 ' ' (n (L co n- a) d N %) > a) cc a) c c 0 c u) 7, to N c N Q = a) O N N a) a) 0 O Q = n- N O O Q {- cu N y a) U U Q O O 0 Q O O O O II CA O V >� 2= n O N U v a) ttf C U IZ o a) 0 3 V-- w- O O 7� Z Z— W ow 0- D? a) C O O O N 0 - _� N E C a) N T cT0 O N C E C D Q J E' (LU Q. a' O ._�• N C O fV U C n. O J E E 0 J N C C C OOC N C ONO 7 3 7 (L J � J O 3 O> > > 2 > O O O co a) a) " C 6)m 7 C UU U U U U UUU C a) c C C w % Q Q Q Q U O C F- JJJQ Z Q LfUU�LJ r N M r N - U r N co r N M� In CD I` co O r N M lY m CD r r r N N N N M M M't't't't't V' It It r m t!7 m In m m M M M M M M M M M M M M M M M M M M M M M M M M Cl) C\j % x : 0 k 4 7 ƒ _ 0 r 0 C: 0 2 7 \ to ) \ 't # & \Cli / < § Lo G m / \ � \ # k to \ 7 M w 2 ] to \ CV CV \ Cl) 69. W 69 2 ) C14 C14 OD §00 a / LO � Cli \ 0c ) % # E 69. C14 CV cli0 Cli co to ° % ± ƒ � / \ i \ Cl) j CO0 - G \ ^ � 0- w 2 e ) 0 / k \ ® 7 0 Cc 7 2 U)5 / \ / E/ C:\ 3 I . _ c a n = O0 2 n °' 0 'in - °\ @ cc / m/ 0 \ 0 < \ C: ' I I o ($ / 0 Z -0 \ \ C: in \ = o = _ ' ¥ J \ Z 2 m a } % z Of= 0 < 0 e 0 e c 2 K K s e 5 e w o 0 o c— 04 CO o % 2 2 \ S G G E 2 Q, if O N O M CD O C W m O m U U- M Cl) Q '0 O m C C CL c O N (n E .a U) N 0 0 N 000 (`') O N Q1 ti 0 N (D co � 0 0 O N r t} F°- a} fl -V)_ O (» a (f) cl,Di O !A ti O (» O M _ N ti O (» (p (D a} _ 00 V O (» O (A (O s NfA s v> Nv> (" v> s v> (» � v>69 2 0 0 0 0 0 0 O o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 W v> (s (» (s (» (» es (» (s (» es �r (» ctr �r (» (» (» (» (» vs (ss (fr 611. N c 0 U = C N O N Q m J E O = c = C a (6 .O O N > N O c O U v O 0 '- c U m Co m L c (`6 O �O C: N 7 w .O '- O.. C 7 FD ( O ( O c m U- u' N C O (n CU c° U U a� O n W > U N a� N c o _ o _ C0 m w>> 2 c 3 m Q c m c a 0 - o o O o a- o c CL E _ Q Q (D Q n Q o o LO v o p m a 2 0I- CD >> C,3 0 °� v v 0 m O a� �_ a ( ( ( 'N U - N N N N O -7 7 -7 U Z 'C Co O N -O m m m m m 0 0 .� [] - O 0 O C N O (n ',.�. m '� N N N O O N N c > (D O O D_ .... N N U U m 0 U U X 1 O UC Of O U � o Co o '0 m CD a E E E :a c o co L L L L L m O O O O O O O O ` m N N N Q C O N m N m N m N m o m O U U U U U U U U U U Q Q O (`6 Q U U O U > U > U > P U > Q U U U U U F- Q Q Q Q Q N Z LL — Q F c c c CL c N M d M O N ct In m (O 6 t- m C6 0 0 s-- N In N m C6 O N N N N N N N N N N N N M M I M d' d' Kt q m E E U) X N N C V C m O � ❑ m a) 'O C W TIP, O N O Cl) m O C W cu CD r U to LL Cl) Cl) T Q 0 cu C: Z) ai CL c O U) to E 7 U) to O to O O_ LO c'') ce) cD co f` N co V Q) N (�D f (D M cj 1 0 (A 0 (A 0o cir--v (D o (R o !t? O (R O 64 O O O (A O (A 0) o to F (A O (A N C CD 00 N N . (R " L C1 c') (D 2 Lo IR o Lo fD O O O O O O 0 0 0 O O O O O O 0 Lo (4 0 J W (n 6f3 (n It V} 6f3 6f3 fR H} cf3 (A to 6% 6% 6% to (ii (ii (ii (ii (n Vi (L C C i O C C •(D 7 � o v U cu 43) ' U 43)) vi CL a) Z c c = .FD c Z 0 Ea) a) 3 -0 m :6 m ❑ Q m cU 1 i > > cu O C C U O U C Q a) 0 (U c O a) rn a) U w U 0 O -p O a) 0) ca C C N p °'S oZS a) .0 Z t Z > O O a) LL a) C C E 0) vi O t Q a) a) cU a) O 4) > O � � a) .0 O ❑ ❑ 0 Q Q- '� CL '5 E a) ❑ C 0 C (U aS 0 E p c 0- E c Q C C >_ a) C cu 'O a) W W O 0 cu cu a) 0 U , 0 O O �- N S 7 m O` 7 J J W' 0 a) 0 -0 a) > O a (n U c>> E cD U 2 Q E z m ¢ O m cu o (n � 2 2� �� `� a) 0 0 O C cu _ 7 7 7 (U 0 U U C O� p O O (U C U >cu `� C J m LL LL J Q U C I— z z C7 O C F— ❑ I— Cfl "t UO O T N M- n W t— I W OT N M4- W O O O T V� In 0 0 0 0 0 0 0 0 0 ti ti ti ti ti m O O T T T T T T T T T T T T T T T T T T T N N M S T O N O C7 m O '0 C W L ca a) U to U - co C"7 Q '0 'D ca 5i CL H c O E n U) r NCo to O w O Cl) to m O N FA O tfT O fo N O NN O to O fo O t N FA N cr O FA O FA O FA N C FA O w O to M O to O to O to Ln � N EH O to O to O to to t° to t° 0 to 0 to 0 to 0 to 0 to 0 to 0 to 0 to 0 to 0 to 0 to 0 t» 0 to 0 to 0 to v o to v o t» o t» o t» 0 t» 0 to o to o to W v3 to to ca� t6 0 � rn c� 0 c 3 O o m v o c a 0) a) m (1) o C: @ cu 4 0) U E m CL . c :3a U ca ai a) U O o a`) z En >, rn E ca U a O - co cn m o d c a) a) N a) m to dCL U = U a) > O ❑ C C L J >1 N a) .T. o C7 E E 4) a) 0 a 0 X f6 n Q n m a) d p a) m m m >>= O 0 c W d 0 O O -0J-0 Q 0 tm O CD a v O w OO 1 -O O .0 V O A 0 d i Q0 ) J m m a U )a) zzN C n(IAI Q~NC O0 T cO O Co CZ a) cnCO co ca E c W °� c E -� E }-- c d d O O C aa d U iLl" O O O U U o 0) E E a C7 C7 a) a) a) a) a) 0 cu _ -0 0)7 EL 6622226 U U U U U U U a) ""a) C )0CCm2 COcu Ua) -i JJ JQ Q Q Q Q Q Q Q Q Q C Z Q U- Q N "t M r- NM r N M "t M M fl -M O r- N M "t M M � N N N N C7 C7 C7 'ti A 44 -,t4 4 4 �-- M M M m m Cf) in MIM M M M m C'7 m m C"7 C'7 MIM m m m m m M M M m C'7 m m TV, O N O m m O C w N U U LL. LO LO _ CO M O r N N O N co m f- N m F N vaD N O N fH (f1 W (f1 CO fH 2 O n O m LU � �' a cr w C (U O 4) U 7 O co O fn C O p N fn O Q O O IL 0 O N U C C .fl 7 N 'Q (U C Lj 2 'v5 N N a) cq J C O n Q C pCD Q N Z o E Z .o Z vi a� U = c N =_ O (U >O (U Z ` 5 aNi W (If 0Z It d cf O O O 00 r N c') O In O O O r r r O m 74 _TV, O N O Cl) 0) CA O C W m N (B U N U - Cl) M Q _m =o O C: Z) ai a a F- C O N E 7 Cn « j N .j U Q co N N m m m (D ti V) O N V) ti I- V) CD VY p O V} O V3 O V) O V} O V) O V) O V) O V) V ti V) � (D V)co O V> O V) CD V) Nco N I� {O V) (D �O O V) O V) C1 N V3 LO V Q) N N (D V) co (p' O J_ N 6-3.� f0 N N C C co N V D) O C M Il- ID Vi IO N L O C D_ N co (D N O IZ LO N m (h m � (t} I� co OE V) V} V) V) V) U N to cm .� 7cli -Ir N N 00 OO CL CD T _ > O V3 O V) O ca (h O V) O V) N V O to O V) 'D V3 N O) O V) O V) C tiCD O) A. (fl N V 00.2 VJ V) at U m m Cn 0 S � m N � -o U) Q Q U @ 4) CC m .� N ` 4) @ 4) C C E O 4) .0 N 4) N @ O Z) O to N O � m C +�+ LL CL 4) .N N > c C m C O 4) N =3 E] — V) tn En (0 co N E @ cu c N N 0 m E LL U c m O m C Q �' c O Cn O 7 C N - N N > E U �«.. N O U N > C O C _ C @ U) 4) " C C O` N >O C N C C > @ 4) C N J SQEj O �'` N m � O 0 4) 'O W 4) � Y J ` LL E (6 4) �O 'j � O` E � C ~ (0 0 -a C C m cB m N 'C U N 4) C 4) @ E 4) N O f6 to cn O O O` O L > O O @ (0 > C) -p Z F- F- S U Q [D LL OF- O S 2 U LL O oF- Q O O O 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O •--' •--' N M d' LO O O OO O •--' O O O O O O M 'gY LO CD co ti ti t-- r--ti ti M_ N M M It Lo (D O CD �-- O O O 0 0 0 0 0 0 0 0 O •-- — •-- •-- •-- •-- •-- •-- N O .-- ti ti ti ti ti ti ti ti� ti� � ti ti ti ti ti ti��rl- CD _M CD N O (= O O •O C W m �7 f6 U N LL R CE G 7 d N C N X x � W C 0 (9 a) _ C1 N N ZT C W O O O In N Mm V h - h D) N N co 'T f V V In O (D O O m o O rn o m o V O M (n O ti m O O o o T T D? m T o o (D o (n _ ti o o m (n rn (fl (fl v> C, N 4 v> (s� N v> (mn Vk cf� � � .5 U Q In � m V N m h I` h to (D ti (D V In ,q O m O 0 D) N V m m (D V D) O (n ti co N N m (n ~ O N ti O N cl� Vi If) fA VJ cl� Vi Ul. N D] 0 J (6 O O N 'C C •O 0 U) (D In �7 N O c0 co O O co O N (D m O h C 'O m N V T V (O co d N 4] co T y) V O (m0 In In h m N N CN E m 11 �' u`ns � � (n Nf9 (n va in � in 0 U N to O) N � N L 0 j M (D ti (D co m (D _ ) N O O O N O ti O r O O O O O O O O O O O O O � v� m co (ss ti v> rn v> (n (n (n (n (n ve (ss (sr (n (n (n vi. W U 4� fA � � y9 co 0 U En O O U (9 O V; cp C N (C9 C 'D Q ) m O : N C m C C O O O cu � V; 'C II .` N •` .` .0 aC E LL m C O L m O C O ca O U Q U U O U U � m I a� w= Z 4.5 =�- L 'DC C N N N U m0 C U c C Co N m N — .� O m E N m N N Q O) N N [CE C LL E N X• X a (9 (o N (IJ C (D Cm 0W N W" Q OON(� O N c O m O n ° ° o v E w m.n 3 oa0 ai J Q 2 m Q W O F- Q O F- Q I- R W F- F- W C7 LL U) W O O O o 0 0 0 0 0 0 0 0 0 0 0 0 o O o0 0 0 0 0 O O .- O O o 0 0 .- 0 0 0 0 0 0 0 0 O o 0 0 0 0 0 N M m d' In CD t-- m m O O O .- N o7 d' In .- N ('7 d' M CD t-- O O O O O O O O O O O O O O O O O O O O O O O O if - C:) O N O C`7 O O C w m (D m U N U - q m EE C ch a) N C a) w C C 0 a) M d d d f.,L' W N p 04 co W N V N N CD tD m N W co co co co (D IO O m (D V LO LD O V O EA S N � w t¢ N O v). (D c O 6g).6g).6 O (D M C tD w P7 1� IO 'ct O t0 C'4 N � cq V L -It O t3T m m vi O v3, co EA (� fA (A VEA EA w EA EA EA N U LO O t-- m N CD ti m N 'Q' N V N 0) N CD (D CO LO M (D co c'1 N N O M Lr!P7 C O N O ' r- m O (O O (O C, 1N M EA c r _ LO (O EA N N C N to EA EA y} EA EA (A EA FA EA to EA m m U J � O EA O to O fA O EA N C C '00 O !T � O O O r N U m N co (DD (D P7 p O m 'V 0) d N ti O � r N tD m (D V tD ce N N O O (�A E m 0 EA /A _� EA co 10 FA EA FA fA FA EA (A Efi U N rn� C !V 'y L =3 O N V tD m CD (D Lo O ti ti Cry � = 0 > O IA O UA O (A p O EA O EA O fA O fA O EA O EA pN7 N O - � IO N (h N cry O EA O to O EA co CL) 4 C6 EA C6 EA (D fA cocq EA EA fA tD fA co O V L U � C U C m to m C U N to a) j L cu O a) -CU co � cc m N c U CD o O O O O` U m , Q. n Q o 0 o O O O . 0 C o C a C o .O a)` m` .0 3 to c O w E N y U) a) a) m m m C m J -C O O- C m U (II � a� to a� U m C U) U U U O 1 , , , O U Z C E C C N a) X- co co co( w a) N v a) v N N � N U a) a) tz N (� Q x N O O) m w c c c _ _ �,= C U C w Q a3i m U) 1O C_ C _C C m Z Z Z C j N N O U U U J C m m m m CO m (n (n (n m U N 3 �' Co aCO) mC •Ua fO— •w-O _ aa)) C a ll UCCL Na)> , , ?LC. �C . �C' > >0 O oj O m m m E CL Op E 6 'O 'O Q. ` L E N O f— O O O E w f— w w w E w O F— 0 m J>¢ >O— O F— O O U w m m m m O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 O O O O O T N C7 ';t O O T O O O CC) O T N M Ln O N M Ln O N N ch It LO Cl) Cl) 'ct' 'ct' -,t-, t 'ct' In Ln Ln Ln Lo O O O O O O O O O O O O O O O O O O O O O O O O O O O O O 1 O O O N E LO O N O M 0) O C w a) a) c0 U N L(. co co Q O co C Z) ai Q f— C O N N CO D7 N co 76 coo N O Ct co cD 'cF t- O O O c'? O O O O ce OD pyo N CCL CC! O O O O a V l ff-1 O EFT EFT EFT EFT cD OD W V (7) EA EFT EFT EFT 7 U3 Efl co _ Co c7 U7 Uk V EFT cD O _O EFT Cl) CIJ EA m r EF) EFT EFi N LO co !l O LO ch co r N O C7 O ca r- r- CD m O V C •y EFT Vl EFT co � N fF) m U J f0 O fF) O fF) O EF) O fA O EFT rn N 'c c a m co cc co co co `t co O c a cD v m v C C c d N o co co N N v 117 w V V E m [fT EA to EA to m EF) U N 07 .N.. C N n L 7 O M O CD CD CO (�D .� � co _ ' O fF) (D co O EF) O olT O EFT O 6" N N V N O EFT O EFT N co cD R V (M - D; O EFT O EF} co N W O fF) O fF) N U7 to N to 4 L (a U) a) U) C O Q x W O C Um li J O CL U) @ (5 O C Co n- � � > > a) o li c E to to L O o E O N o N of c Cf) U Q � @ c >>a) C a) O m 47 a) � -a C m U 'a c0 m E E C7 c Q. L .Q U) co > Q) C 0 i A � � o. W >,0 cu Q) a> w cu C O W N > a) w C� U (`0 O) a) X. C C Z U Q >, C L O U C Q1 N OC m Q w (6 cu C C 0- c a3 W, L X W O) U (n �_' X w >, C Q W Q p O Z O C N C O (n C N � 'C a) C (CO c`6 m O � J (n Q cu O a) � fl. O O (0 a) O 'B �, O 'C (0 to O O C .` O.. X `�° O 15 C O U) `o cu_ o CL S W io m ami ami a) a) o''o o x x m o Q a) c`a m a) 3 o Q Q ED CO i S S Q i E w w U 2 2❑ u.. U o cl i— O O C) C) o O O o C) C) C) 0 0 0 0 0 0 0 0 0 0 O O O O O r N CO 0 O O C) 0 C) m C) 0 0 0 0 0 �— N CD 00 O 1` 1` 1` 1- O O r N co M tet' m cD 1- co O C) O CD cD cD (D (D (D cD (D I� ti ti ti t— t%- t%- O O O O O O O O O O O O O O O O O O O O O O iq N E E 3 to d N C CL d w C C 0 R C d N C d d W T O N O M C) O 'O C w CV U N LL M M Q '0 cm C: ai CL C: O N N E .L] 7 m M o v v m M °' 0 0 0 0 00 0 0 0 0 CD o n O m `n M v3 e» va e» e» va e» erg e» e» m m V» O cli M r` N m M _m D co M ti y N m O EA D) O fA In O (D c 'N ( CNF d3 m m 0 J O O O � lD N Z�; fa N 'c cv dd rn rn o o c v a aa) E m o °? o of co 0 v> C N CD 0, N U CD qr Cl) 0 0 Lc Lc m Lli _ �! � � � to � � � to � (UD � t` U CD m N � ti m •0 � (» va vs U c O O75 U 0 m m 3 r c E ? -j0 c CD c v5 w w a`� 0 a`) m c c > c > o Cr1 c'0 a> O w v m v m m o v 0 c 0 c 0 c o as in a) > E > c c`o m c F- Q U Q > ca n m vi a> a> W (on aa) L F- o U m c C > > E 70 0 0- > m CD -0� lll 'E 0- O U C C C (`0 C (`0 C to Q' Q a a) U O (Mn N N w Q N > O 0 O 0O E O UO M N (>n E >E Q)O 0- O , O O 0 U U 0" 2 C—O rn a) to C U UO' 0m- U o n nM N E C 0 O) C CN W NC _ i @°4mOoEaaaaccan mma> U Z z N 4J 0 LL C cu C m o o '� X W X W m N O •C3 Q O O C O O ,cu Mn it, M ai '� � U U Cn Q Q> 'cu 0) as : m cu c (D n n a`) Q o� o c c c c c c Q c c 0 n •� — �� a`> a`> s v c c 0 0 0 0 0 0 0 Z5 � is ami o '0 W d w( °' `� O N N S c c" a o> c 0) c 0) c � c 0) c m c m v o o m m t0 a> U 0• 07 O m ca co M cm to E to =3n• a• 0 "" 0 X n "" o x m 0 c s s s s s s -0 0 O O 0- a w to t - F- F- F- W w m W U U U U U U Q = 0 0 0 0 0 0— CV M "t O O 0 0 0 0 0 0 0 0 0 0 O M d' M Cfl ti M M M M M O O CV M It In Cfl Il- UO M O I- co O 0 0 0 0 0 0 0 0 0 — O 0 0 0 0 0 0 0 CD O O O O O O O O O O O O ca N E _RP O N O M O 'D C W (6 U LL M M T Q 0 0 C LQ r C O En E 39 0 0 O O 0) 7 N O7 U Q y C N mn U J 4] ca N N c 7 cv N Npp c N N N c O C CL h .2 E m O U N Ql � c m 'N L 7 0 = j N N N h N a) h C1.0 U fn En ca E L L LL > N E U LL _ UC 3 v a a) O J ❑ Q , En E En a) a c6 LL a� c UU c N E 0 m CL m c L9 O N E > L U > N =L:31 20 C d En W W E 0 c o co co p p� O = ❑ N E a� -0 =o'E cn m Lai n C= Z X W C_ -j = 00 m Li m Li o -j '� c LL U N w O O O O O O O O O O T p> T ti T N M ct M c0 T O T N N c0 c0 c0 c0 c0 c0 M M T T T T T T T T T T T T T T T T T T M T M T CD N O Cl) m O .O C W (9 a) (9 U U - Cl) Cl) r Q .O a) m C: Z) ai Q T H C: 0 E .n 7 w 04 0) N LO 't C14 00 N O Cl) p h mO p 't ti N O O V) N O ti tf) O EA O EA O EA O EA O Ni O Ni O EA O EA O fA O EA F O EA O Ef) C, ti O h N fA h _- EA V3. M N O EA fA � w to Ln O Ln -1O O EA O EA O Efi O EA O FA O O O O O O O OO O O O O O O I1 EA EA EA EA EA EA EA U9,2 H} W. Ei9 V EA Vi V Vi Efi fA E� a� m `o v a> 2 2 a> En m a Ench Q Q ro o O .J C En c .r aa) `�° m ! E � (D N Z) o 'Fn U) o� En Q rn ti a0i LL C O m •cu N C C O O O N U) (9 4) > 76 a) O U C (n Q E LL O C O CO C: CL C a) >> C C a) �O o > O U C a) o > N c,: CD C fn a) O O J LL C �' � C7 N C a) a) �? a) 0 om 0 0 0 CD > a) C H a m o> Y �_ u U- E a> o o f c m f6 p, W C on C a) a) U N a) C N E .-. r-+ C fco O L L O N O z F— F— 2 v Q m LL O F— E a- C) LL O 0 E H Q Q O O O O O O O O O O O O O O Cl O Cl O C) O O O O O O O O N M 'IT In O 0 0 0 0— 0 0 0 0 0 O O Cl) d' In m CD I` ti ti ti ti ti M— N M M' T Ln M O O r N O O O 0 0 0 0 0 0 0 0 O— — — — — — — N C) r r I` ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti ti 01 01 Al r� r 0 N 0 M 0 C W m a) } (6 U U U- M CO r Q U a) 'o (6 C a) CL T C O En U E 7 U) O W O(p (n (M O(p O 69 N (p _ O 69 m (17 Ln y: O (» �' N N � o 0 n t� Cn O ;; o 69 ti Cn L - M o (» O 69 0 (» N N ti (o 00 69 N Cn n CO O m (n C) V O 69 69 O 69 0 64 O 69 0 (» O 65, 0 (» V L6 69 0 64 � L6 (A 0 69 47 O Cn 47 C14 64 0 V -J to O d• It 0 V -J O L N 64 0 69 O (A 0 V -J O 64 0 69Q3. O O 0 0 O 69 0 69 O 69 0 69 En a) O U (6 a) U) En U _ C_ N E C =_ Q f U a) C C C — O O a) C 7 - 7 C .� •C :C •i 'C 'C E N (d O U O fll O 0 Q U) U 6a) 0 .Z U aoi c;- aa)) a) (En ,� �- a li L- a C a) a) - m E aa) (n aa) W O C U > U O U O U N O C C 3 m a) C C6 i (6 �, m �, C m E a) 0 Cl a U a) cd a) O O O C T a) a) a) cn � W W a) a C V >, a) '� > C a a) o rn a) cd o f v) C o O a C }o �- �. (n 3 O a ca O> O -a E � O (n 6 E GS o ca a) (U a� =3 a) E m Q W O-1 a) I— Q O F- Q F- W W F- I— W (D LL co -i U) W O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0LCI 0 0 0 0 0 CD o 0 0 0 o r o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 M CO V LO CD 1- co co m O O N CO V N V Lf) CD 1� OJ N N N N N N M M M M M Cr) Cf) m m m m m m m m m m m m m m m m m m m m m m m W, 174 t6 E E 7 N d N C a) CL x x F- W ' C Cn O to C a) 4) C 0 d d d' d Z; Z, C W (0 04 r opo N co V N 'D N p 01 p 03 r p co - p p O U') ~ (ND v p E» (pD `� p E» p E» (D `° ('7;('7 c+) N 'Z m N v V ee» p M ,n p e» CJ en ffl r ffl r ffl r v3 v3 v3 �' � kO p p p p p p p p p p p p p p p p p p p p p p W efl en en f» es f» ea V» V» t» es ea va t» f» t»61). 69 f» f» b% Utl a) .O U C to C a) @ C U N ` co (6 U) J f6 O Z O a) Cco l) 'D U c c c o O O O O` L) - cu CL a n a U o o O o . -D C 'D C -D c� = `O a`) t a`) = w C O wco E ,n V) a) c J O O c U a) - V) c@ c c c c U , , , o m V E c o c F a) h v, v, U m ac) a� a) a) o o v e v a c coi E c x<= c rn aci aci aci j @ @ (6 a) W Q cu C L C_ C .@ C .O C Q) C Q) a) Q) C a) _ 7 O U = (a 'D J a) m a) m m (n (n (n m U co = �' c6 m C I- 2 O _ _ a) C Q) a) a) a) C (n C (n C C 7 a) a) a) p U U U p n- ..��-_' E t •C Q a3 -p 'O 'O m a m °� P3 a m CL A O ns t E> -o -o -o o 0 o cu cu cu I- O O O w I- a. a. a. w I- n. -j ?.- Q lo- O Ua m m m O O O O O O O O O O O O O O O O O O C) o 0 0 O O O O O O O O O O O — N M' t O C) O O O O C) .-- N Cl) In C) .-- N Cl) V) O •-- •-- •-- •-- --M •--Cl) 'cr 'cY 'cY 'cY 'cY In In In In In CO CO CO CO CO CO CO CO CO CO CO O O O O O O O O O O O O O I O O I O O O O O O O Tv CD N O M a) O C W L N } �o U N LL M M Q a a) =o cu C: D ai ca- p C: _F- C O .N N E Cl) C1 N f0 ti co co O o � co M O- w��� cl� m CO m o f� 0 v) _ 0 to 0 v) 0 v) F � 1 i» M of �Ci V m 0 rn � M w u> y� cD m WEF) 0 0 fR 0 fR 0 to 0 E9 0 fR m of ,a. o EH 0 wE9 0 00 Efi w 0 ull 0 E9 0 w rn .a. o w 0 w 0 w O a) O c a) a x W a) CD 0 o) U) o E � = O U c o C LL c L J O CL O > a) C CU > 'O a) LL E E N E U) a) in a ,= O U o E Q O N N Y° c> a) a) L W O C = O CO a) 'O c = a) 'fl- O C9 U) c p a) C1 m ( 7 N c m N N O > U C N U E >, _ L a) O_ x W L-0 > �) N N N a) cu ' O @ Q a) 0 m W = 7 O w N75 tS) CL 0 CO a) xCl C) c? U C'E`*. C L O a) @ m a W co = = 0a) X- ca °> x 0.°) U o o O W m Q U .L W cn >� Y a) cu = cu W L Z c in c o cn c a) co Q 'c c L �- CoL L a) U a) w-. C O �- V--. coC J O co O u) 7 .0 = a) coCL Q `o io = d d S w is io is > aa'i N av') N O (0 (0 va'i U co N � CL ate) Q -Jo C o .Q ca N N _= co -0 O ca - � Fro- Q I� Fro- w w U=_ O LLL U O ho 0 0 O O O o 0 o CD O CD O O O o 0 0 0 0 0 O O O O O — N MO O O O O O LO 0 0 0 0 0 0 �-- N M 0o O ti ti ti ti O O N CO M� M M ti O O 0 0 CD m m m m CD t� t� t- t- t- t- t- t- t- t- O O O jEgDCD OO OOO O OOO m OO O O O m O O — r- r 0 N O C) W O -6 C W LO a) 6 U O LL C) C) T v m c Z) a) ca - C: c 0 O E .n co M •� r M 0) p 1O o 0 0 0 0 0 0 0 0 ( o o Mo LQ o o e» vl vl blr Vr e» F» b% yr co LO N to b9 b? ER ���� ifi �U3. o W C: �p O O U � a) U 3 ca (u C: 0. C a) co > U) U = •O a) C C O C 7 O a) N to @ N U mU N c o O p" N0 Q U Q n m t p a= CL o W O U : 6 --� C C C @ C @ O N Q. 6= > .D > .D > 6 O C LO O N I— F- @ U c9 U W Q .Q �_ ❑ ❑ a) O N O O C U1 N J N E E O_' E J ?. N C 6) O H N O o >, O Z .o U U O O o C O N .E F- v v o 6 d a) U)a) vi a�j n O cn a a c m E c c c W m _ .n o o E a) aw)) a`)) '3 a ❑ s 5 n c m m m a) U Co Z aci @ m E c a) o o ti 'C CCU: E E- til til c (D o zs o o C n00 m> E W '� H co -ao a) Q o C C c c c c U) O N O LCS O O O O O (9 'U a- CL w- O M O U) _ O C C a 6) C 6) C 6) C 6) C 6) C LT C C 'Vf �- a) U U N O ` N ` a) C C 6 a) U 6• 6Y O co CLS L6 N 6 m E 6 O O X n @ O X a) N •C = .0 A L L .0 O C W w m LL U U U U U U Q MD 0 0 0 0 0 T Nim d' 0 o 0 0 0 0 0 o 0 0 0 0 0 0 d' LO CD ti NQ) O O N M d' LLQ CD ti N M 0 ti N M 0 0 0 0 0 0 0 0 0 7 o 0 0 0 0 0 0 0 0 T T r 0 T 0 T 0 T 0 T 0 T 0 T 0 T o T 0 T 0 T o T r T T T T T T T T T T T T T T T T T T T T T r N E °)E co x co CD N _ d CL L X W 1— <[ O c=o a7 ❑ > O 2 C 4l O C O C W T*, O N O M C) O a C W W U LL M M r Q a O a to C: D ai F- C O cn A E .n 7 U) f0 � o F- � °J W o cn O O to can) t 2 tco L U j d (0 O � O IT � f9 � C C ` lL cn a)E o n N c m o a`) ¢ cn E m ON >, � LL N C E cn L 0)C C W > L .Q O :3O N cn L LT cr m E W W E U) �O (0 U d "S "S -O U r, N U 0 0 o ` w 0 aEi � w d 0) 7 7 U E v c .a E E m cuLLL a Z W J m LL LL J 0 o_ o 0 0 0 0 0 0 0 Ll r N M d' M M r O N N (O (O (O (O (O (O l!7 O HOUSING AUTHORITY OF THE CITY OF DENTON. TEXAS FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 TABLE OF CONTENTS FINANCIAL SECTION Paqe IndependentAuditors' Report......................................................................................... 1 Management's Discussion and Analysis........................................................................ 3 Statementsof Net Position............................................................................................ 8 Statements of Revenues, Expenses and Changes in Net Position ............................... 9 Statementsof Cash Flows............................................................................................ 10 Notes to the Financial Statements................................................................................. 12 FEDERAL AWARDS SECTION Independent Auditors' Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................... 19 Independent Auditors' Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance.......... 21 Schedule of Findings and Questioned Costs................................................................. 23 CorrectiveAction Plan.................................................................................................... 24 Schedule of Status of Prior Findings.............................................................................. 25 Schedule of Expenditures of Federal Awards................................................................ 26 Notes to Schedule of Expenditures of Federal Awards .................................................. 27 HUD Financial Data Schedule........................................................................................ 28 Members: AMERICAN INSTITUTE OF e HANKINS, EASTUP, D 1 ATONE CERTIFIED PUBLIC p� T®NN SEAM ACCOUNTANTS CX. TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORATION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS INDEPENDENT AUDITORS' REPORT Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report of the Financial Statements 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940) 387-8563 FAX (940) 383-4746 We have audited the accompanying financial statements of the Housing Authority of the City of Denton, Texas ("the Authority"), which comprise the statements of net position as of September 30, 2016 and 2015, and the related statements of revenues, expenses and changes in net position, and cash flows for the years then ended, and the related notes to the financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America. This includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Housing Authority of the City of Denton, Texas as of September 30, 2016 and 2015, and the changes in its net position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis on pages 3 through 7 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise Housing Authority of the City of Denton, Texas' basic financial statements. The HUD Financial Data Schedule is presented for purposes of additional analysis as required by the Uniform Financial Reporting Standards issued by the U.S. Department of Housing and Urban Development, Office of the Inspector General, and is not a required part of the financial statements. The accompanying schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, Including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 27, 2017 on our consideration of Housing Authority of the City of Denton, Texas' internal control over financial reporting and on our test of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Housing Authority of the City of Denton, Texas' internal control over financial reporting and compliance. 0 Hankins, Eastup, Deaton, Tonn & Seay, PC Denton, Texas June 27, 2017 2 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED SEPTEMBER 30, 2016 The following is an analysis of the financial performance of the Housing Authority of the City of Denton, Texas (the "Authority"). It is intended to provide the reader with an overview of the Authority's financial activities for the fiscal year ended September 30, 2016. The information contained in this MD&A should be considered in conjunction with the Authority's basic financial statements. Financial Highlights The Authority's total assets increased from $6,259,782 to $8,847,179, an increase of $2,587,397 or 41.3%. The unrestricted net position balance is $2,631,712 at September 30, 2016. This represents an increase of $619,438, or 30.1% from the previous year. Unrestricted net position represents the amount of available funds for future appropriations. Operating revenues increased from $10,973,856 to $13,722,122, an increase of $2,748,266 or 25.0% primarily due to the increase in the Section 8 Voucher funding. Operating expenses increased by $1,691,260 to $13,531,787 for the current year. The increase was primarily due to increased housing assistance payments. Using this Annual Report This annual report consists of basic financial statements and notes to the financial statements. Management's Discussion and Analysis provides a narrative of the Authority's financial performance and activities for the year ended September 30, 2016. The basic statements provide readers with a broad overview of the Authority's finances. The notes provide additional information that is essential to a full understanding of the data provided in the basic financial statements. 3 The basic financial statements consist of three statements: 1. The Statement of Net Position provides information on all of the Authority's assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial situation of the Authority is improving. 2. The Statement of Revenues, Expenses and Changes in Net Position presents information showing how the Authority's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Certain revenues and expenses are reported in this statement that will result in cash flows in future periods. 3. The Statement of Cash Flows presents information showing how the Authority's cash changed during the most recent fiscal year. It shows the sources and uses of cash. The Authority's housing programs include the Housing Choice Voucher Program, Management Program, and DHAP. The Housing Choice Voucher Program provides rental assistance to aid low income families to afford decent, safe and sanitary rental housing. The Authority provides rental assistance in the form of a Housing Assistance Payment to a landlord on behalf of the tenant. The DHAP program ended, however, the Authority still holds funds totaling $81,827 related to that program that are currently restricted. The Authority currently has 1,526 baseline units available. Funds are provided by HUD to provide rental assistance payments. The Authority is provided an administrative fee for the purpose of covering the administrative costs of the program. The fee is preset by HUD on an annual basis. The Authority administers a management fund designed to perform asset management responsibilities for additional properties. Payment for the Authority's administrative office and other rental properties support the Management Program. The Authority organized the Denton Public Facility Corporation (DPFC) in December 2012 to receive and operate a twenty-four unit low-income housing facility. The Authority owned a portion of the general partner of Denton Senior Housing Development, L.P. which held the facility. After the fifteen -year compliance period related to tax credits expired, the limited partner transferred the entire interest in the facility to DPFC. The Authority must operate the facility under the supervision of the Texas Department of Housing and Community Affairs for an additional fifteen years. Renaissance Courts is a multi -family project that received a tax credits award from Texas Department of Housing and Community Affairs for the development of a 150 unit town -home style, affordable housing project. The development provides for mixed income and market rate rents. The Authority formed Renaissance Courts Public Facility Corporation to serve as the general partner of Renaissance Courts, L.P. a limited partnership to fund and operate the project. Funding comes from the limited partners purchasing the tax credits and a HUD insured 221 (d)4 mortgage. Operation of Renaissance Courts is managed by an outside management group and funded from rental revenues. The Authority received a developer fee this fiscal year and is still to receive additional deferred developer fees in the future, based on the project's cash flow. 4 Authority Activities & Highlights The Authority's overall financial position and operations for the past two years are summarized below based on the information in the current and prior financial statements. The table below lists the asset and liability comparisons for the years ended September 30, 2016 and September 30, 2015. Statement of Net Position Categoa FYE 2016 FYE 2015 Change % Current Assets — Unrestricted $ 2,416,517 $ 1,937,382 24.7% Current Assets - Restricted 105,773 257,421 -58.9% Capital Assets Net of Depreciation) 5,961,286 3,851,376 54.8% Other Non -Current Assets 363,603 213,603 70.2% Total Assets 8,847,179 6,259,782 41.3% Current Liabilities 127,779 109,355 16.9% Non -Current Liabilities 2,454,245 29,356 8260.0% Total Liabilities 2,582,024 -138,711 1761.4% Unrestricted 2,631,712 2,012,275 30.8% Net Investment in Capital Assets 3,527,670 3,851,375 -8.4% Restricted 105,773 257,421 -58.9% Total Net Position $ 6,265,155 1 $ 6,121,071 2.4% Assets The increase in current assets -unrestricted was due to an increase in cash as a result of higher tenant revenue, management income and other operating income. The decrease in current assets -restricted, is due the Authority receiving less funds from HUD than it expended for tenant rents. The increase in capital assets was due to the addition of land in connection with a land lease on a development project. Other non-current assets include a receivable from a related housing development and a note receivable from the sale of a tract of land. The Authority advanced funds to refinance existing debt on the development. Liabilities Current and non-current liabilities increased due to deferred revenue in connection with the land lease from a new development project. Net Position The Authority's unrestricted net position increased due to an increase of operating income. The net investment in capital assets decreased due to depreciation expense being higher than purchases of capital assets. The deferred revenue liability associated with the ground lease and offset the increase in land. Restricted net position decreased due to a decrease in housing assistance funding from HUD. 5 Statement of Revenues & Expenses Ca egory FYE 2016 FYE 2015 Change % HUD Operating Grants $ 11,880,094 $ 9,931,026 19.6% Tenant Revenue 868,582 770,371 12.8% Interest Income 2,475 1,703 45.3% Other Revenue 975,676 391,384 149.3% Total Revenue 13,726 827 11,094,484 23.7% Administration 1,429,304 1,118,295 27.8% Tenant Services 6,356 5,144 23.6% Utilities 102,253 107,162 -4.6% Ordinary Maintenance 455,977 467,062 -2.4% General Expense 59,300 26,181 126.5% Depreciation 252,646 239,676 5.4% Housing Assistance Payments 11,225,951 9,877,007 13.7% Loss on disposition of asset 50,956 - 100.0% Total Expenses 13,582,743 11,840,527 14.7% Results of Operations Revenues Operating revenues of the Authority are generated principally from dwelling rents, Section 8 Administrative fees, HUD grants, and rental assistance payments. The Authority's revenues increased by $2,581,387. The primary reason for the increase in revenue was an increase in Section 8 voucher funding and an increase in tenant revenue. Tenant revenue increased due to an improved lease out percentage at Heritage Oaks. Interest income increased due to increasing interest rates paid by banks. The increase in other revenue is due to increased payments received from other housing authorities with clients living in the Authority's boundaries and an increase in developer fees on housing projects. Expenses Total expenses increased by $1,742,216 over the prior year. Administrative expenses increased due to increases in salaries and payroll related expenses as well as some office expenses. Utilities decreased slightly as North Texas had a milder summer than the previous year. Ordinary maintenance decreased slightly due to fewer maintenance issues with Heritage Oaks. The increase in general expense was due to an increase in bad debt. The increase in depreciation expense was due to building improvements and a vehicle and A/C units at Heritage Oaks. Housing assistance payments increased significantly as the Authority made good progress on keeping their vouchers utilized. Capital Assets As of September 30, 2016, the Authority's investment in capital assets was $ 5,961,286. This investment includes land, building, building improvements, office equipment, and maintenance equipment. The increase in land is due to a ground lease agreement with a developer connected with an apartment project. Categoa FYE 2016 FYE 2015 Change % Land $ 3,472,960 $ 1,203,916 188.5% Buildings and improvements 8,245,896 8,167,699 1.0% Equipment 353,249 348,378 1.4% Construction in progress 781 9,116 -91.4% Accumulated Depreciation 6,111,600 5,877,734 4.0% Total Net Fixed Assets $ 5,961,286 $ 3,851,375 54.8% Future Economic Factors The Authority will continue to receive developer fee revenues from Renaissance Courts and income from commercial buildings. The Authority has formed Denton Public Facility Corporation to develop 322 multi -family units of affordable housing using tax credits and tax- exempt bonds. The Authority expects to earn developer and management fees and bond issuance fees from this development. The Authority will work with developers to construct more affordable housing to earn additional developer fee revenues. The Authority also plans to sell vacant land that cannot be used for affordable housing development and use those funds for operational and development purposes. Request for Information This financial report is designed to provide a general overview of the Authority's accountability for all those interested. If you should have additional questions regarding the financial information, contact the Executive Director at Denton Housing Authority, 1225 Wilson Street, Denton, TX 76205. 7 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS STATEMENTS OF NET POSITION - PROPRIETARY FUND TYPE SEPTEMBER 30, 2016 AND 2015 ASSETS 2016 Current Assets: Cash and cash equivalents $ 2,052,884 Cash and cash equivalents - restricted 105,773 Accounts receivable - net 16,493 Accounts receivable - HUD - Investments 327,360 Prepaid expenses 19,780 Total Current Assets 2,522,290 Non -Current Assets: Due from related party - net 213,603 Note receivable 150,000 Capital assets Land 3,472,960 Building and improvements 8,245,896 Furniture and equipment 353,249 Construction in progress 781 Accumulated depreciation (6,111,600) Total Capital assets 5,961,286 Total Non -Current Assets 6,324,889 Total Assets 8,847,179 LIABILITIES Current Liabilities: Accounts payable 47667 Accounts payable - HUD 1,469 Accrued salaries payable - current 28,394 Deferred Revenue -current 24,949 Security deposits payable 25,300 Total Current Liabilities 127,779 Long -Term Liabilities: Accrued salaries payable - non current 20,629 Deferred Revenue -non current 2,433,616 Total Long -Term Liabilities 2,454,245 NET POSITION Net investment in capital assets 3,527,670 Restricted 105,773 Unrestricted 2,631,712 Total Net Position $ 6,265,155 The accompanying notes are an integral part of this statement 2015 $ 1,465,866 257,421 5,809 66,270 380,234 19,203 2,194,803 213,603 1,203,916 8,167, 700 348,378 9,116 (5,877,734) 3,851,376 4,064,979 6,259,782 33,478 50,377 25,500 109,355 29,356 29,356 3,851,376 257,421 2,012,274 $ 6,121,071 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 Operating Revenue: Tenant revenue Federal housing grants Management income and other operating revenue Total Operating Revenues Operating Expenses: Administration Housing assistance payments Tenant services Utilities Maintenance Insurance Bad debt expense Depreciation Total Operating Expenses Operating Income (Loss) Non -Operating Revenues (Expenses) Interest income Insurance proceeds Gain/(loss) on disposition of asset Total Non -Operating Revenues (Expenses) Change in net position Net Position, Beginning of Year Net Position, End of Year 2016 $ 868,582 11,880,094 973,446 13,722,122 1,429, 304 11,225,951 6,356 102,253 455,977 28,814 30,486 252,646 13,531,787 190,335 2,475 2,230 (50,956) (46,251) 1441084 6,121,071 ,$ 6,265,155 The accompanying notes are an integral part of this statement 7 2015 $ 770,371 9,931,026 272,459 10,973,856 1,118,295 9,877,007 5,144 107,162 467,062 26,066 115 239,676 11, 840, 527 (866,671) 1,703 118,925 120,628 (746,043) 6,867,114 $ 6,121,071 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE FOR THE YEARS ENDED SEPTEMBER 30.2016 AND 2015 2016 2015 Cash Flows From Operating Activities Cash received from HUD $ 11,947,833 $ 9,888,763 Cash received from tenants and other housing authorities 1,367,862 1,013,328 Cash received from other sources 463,282 33,276 Cash payments for rent and utility assistance (11,226,834) (9,877,048) Cash payments for administrative and operating expenses 2,069,405 (1,710,091) Net cash provided (used) by operating activities 482,738 (651,772) Cash Flows From Investing Activities Interest on investments 2,475 1,703 Cash from special item 2,230 118,925 Acquisition of capital assets (104,947) (500,994) Sale (Purchase) of investments 52,874 (784) Net cash provided (used) by investing activities (47,368) (381,150) Cash Flows From Capital and Related Financing Activities - Net cash provided (used) by capital and related financing activities - - Net Increase (Decrease) in Cash and Cash Equivalents 435,370 (1,032,922) Cash and Cash Equivalents, Beginning of Year 1,723,287 2,756,209 Cash and Cash Equivalents, End of Year (includes restricted cash of $105,773 and $257,421 at September 30, 2016 and 2015, respectively) $ 2,158,657 $ 1,723,287 The accompanying notes are an integral part of this statement 10 HOUSING AUTHORITY OF THE CITY OF DENTON. TEXAS STATEMENTS OF CASH FLOWS - PROPRIETARY FUND TYPE (CONTINUED) FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 Reconciliation of Net Operating Income to Cash Provided by Operating Activities; Net operating income (loss) Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities Depreciation Decrease (increase) in accounts receivable -net Decrease (increase) in accounts receivable -HUD Decrease (increase) in prepaid expenses Increase (decrease) in accounts payable Increase (decrease) in accounts payable - HUD Increase (decrease) in accrued salaries payable Increase (decrease) in security deposits payable Net Cash Provided (used) by Operating Activities The accompanying notes are an integral part of this statement 11 2016 2015 190,335 $ (866,671) 252,646 239,676 (10,684) 324 66,270 (42,263) (577) 1,288 14,189 5,715 1,469 - (30,710) 6,709 (200) 3,450 $ 482,738 $ (651,772) HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity The Housing Authority of the City of Denton, Texas (the "Authority") is a governmental entity with the purpose of providing low income families with reasonable assistance for housing, giving consideration and care for their well-being, and promoting family self- sufficiency to all families without discrimination. The Authority primarily serves the residents of Denton County, Texas. The Authority's primary funding source is the U.S. Department of Housing and Urban Development under the Section 8 Rental Voucher Program. Basis -of Presentation The activities of the Authority are similar to those of proprietary funds of local cities and therefore are reported as an enterprise fund in accordance with governmental accounting and financial reporting principles issued by the Governmental Accounting Standards Board (GASB). Accordingly, transactions are accounted for using the accrual basis of accounting. Under Alternative 1 of GASB Statement No. 20, Accounting and Financial Reporting for Proprietary Funds and Other Governmental Entities That Use Proprietary Fund Accounting, the Authority has elected to apply all standards issued on or before November 30, 1989, by the Financial Accounting Standards Board (FASB), in addition to all GASB standards. Capital Assets and Depreciation The Authority records capital assets at cost and provides for depreciation using the straight-line method over the respective estimated useful lives. Furniture and equipment are depreciated over five years. Buildings and improvements are depreciated over thirty to forty years. The cost of normal maintenance and repairs is charged to operating expenses as incurred. Income Taxes The Authority is not subject to income taxes. Cash and Cash Equivalents Cash equivalents consist of highly liquid investments with an initial maturity of three months or less. Cash and cash equivalents — restricted represents excess HAP and DHAP funds. See Restricted Net Position. 12 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Restricted Net Position The Authority receives payments from the U.S. Department of Housing and Urban Development ("HUD") in monthly installments as determined at the beginning of the year based on anticipated needs. At the end of the year, HUD determines how much of the advanced funds were earned by the Authority. Differences in the amounts advanced and the amount earned create excess HAP funds. The Authority must calculate the excess HAP funds, but keeps the excess funds to use towards any funding shortages in future periods. The funds may only be used in connection with the rental voucher program. The Authority calculated the excess funding of $105,773 and $257,421 as of September 30, 2016 and 2015, respectively, which it shows as restricted net position in the statement of net position and as cash and cash equivalents — restricted. The balances of the restricted net position accounts for voucher programs are as follows: 2016 Excess HAP — Section 8 Voucher $ 23,946 Excess HAP — DHAP 81,827 Total restricted assets — voucher programs $ 105,773 See also Note 3. Compensated Absences 2015 $ 175,594 81,827 $ 257,421 Regular, full-time employees receive compensation for vacations, holidays, illness, and certain other qualifying absences. Compensated absences, which have been earned but not paid, have been accrued in the accompanying basic financial statements. For all compensated absences, the liability is valued using pay rates in effect at the end of the Authority's fiscal year. Prepaid Expenses Payments made to vendors for services that will benefit future fiscal periods are recorded as prepaid expenses. 13 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates, judgments and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Fair Value of Financial Instruments The Authority values cash, cash equivalents, investments, receivables and current liabilities at their carrying amounts reported in the financial statements due to the short maturities of those instruments. Date of Management's Review Management has evaluated subsequent events through June 27, 2017, the date on which the financial statements were available to be issued. NOTE 2 — REPORTING ENTITY The Authority, for financial purposes, includes all of the accounts relevant to the operations of the Authority. The financial statements presented herein do not include agencies which have been formed under applicable state laws or separate and distinct units of government apart from the Authority. The Authority is governed by a five member Board of Commissioners, who are appointed by the City of Denton, Texas, City Council. NOTE 3 — DEPOSITS AND INVESTMENTS Deposits Deposits, including those in restricted assets, are defined as cash or cash equivalents on deposit with financial institutions. At September 30, 2016, the carrying amount of the Authority's deposits was $2,158,657 and the bank balance was $2,208,554. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2016, all of the Authority's deposits were covered by FDIC insurance or pledged securities. At September 30, 2015, the carrying amount of the Authority's deposits was $1,723,287 and the bank balance was $1,743,348. The bank deposits were held with financial institutions and are required to be insured or collateralized with securities held by banks in their trust departments, not in the Authority's name. At September 30, 2015, all of the Authority's deposits were covered by FDIC insurance or pledged securities. 14 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 NOTE 3 — DEPOSITS AND INVESTMENTS (CONTINUED) Cash and cash equivalents consist of the following at September 30: 2016 2015 Cash and cash equivalents — unrestricted $ 2,052,884 $ 1,465,866 Cash and cash equivalents - restricted 105,773 257,421 Total cash and cash equivalents $ 2,158,657 $ 1,723,287 Investments The Authority's investments consist of bank certificates of deposit. The certificates of deposit total $327,360 and $380,234 at September 30, 2016 and 2015, respectively. The certificates of deposit are insured up to $250,000 per financial institution. Custodial Credit Risk Custodial credit risk, for deposits and investments that are certificates of deposits, is the risk that, in the event of a bank failure, the Authority's deposits may not be returned. As of September 30, 2016 and 2015, the Authority's deposits were either collateralized or covered by FDIC insurance. For eleven days during the fiscal year ended September 30, 2016 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $825,178. For sixteen days during the fiscal year ended September 30, 2015 deposits exceeded FDIC insurance and pledged collateral. The largest amount exceeding FDIC insurance and pledged collateral was $881,868. Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an instrument. The Authority's investments were in certificates of deposits with maturities no longer than two years. Credit Risk Credit risk is the risk that an issuer or other counterparts to an investment in debt securities will not fulfill its obligation. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage eleven and sixteen days during the years ended September 30, 2016 and 2015, respectively. Concentration of Credit Risk Concentration of credit risk is the risk of loss attributed to the magnitude of the Authority's investment in a single issuer. The Authority's deposits and investments exceeded FDIC insurance and pledged securities coverage eleven and sixteen days during the years ended September 30, 2016 and 2015, respectively. 15 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 NOTE 4 — Capital Asset Activity Capital asset activity for the Authority for the year ended September 30, 2016, was as follows: Capital assets not being depreciated: Land Construction in progress Total assets not being depreciated Capital assets being depreciated: Buildings and improvements Furniture and equipment Total capital assets being depreciated Less accumulated depreciation for: Buildings and improvements Furniture and equipment Total accumulated depreciation Total capital assets being Balance Retirement/ Balance Oct.1 Additions Adjustment Sept. 30 $ 1,203,916 $ 2,470,000 $ 200,956 $ 3,472,960 9,116 - 8,335 781 1,213,032 2,470,000 209,291 8,167, 700 78,196 348,378 23,651 8,516,078 101,847 -:� 3,473,741 8,245,896 353,249 8,599,145 (5,594,815) (221,788) - (5,816,603) (282,919) (30,858) 18,780 (294,997) (5,877,734) (252,646) 18,780 (6,111,600) depreciated, net 2,638,344 (150,799) - 2,487,545 Total capital assets, net $ 3,851,376 $ 2,319,201 $ 209,291 $ 5,961,286 NOTE 5 — RISK MANAGEMENT The Authority is exposed to various risks of loss related to theft of, damage to, and destruction of assets; injuries to employees; and natural disasters. The Authority manages its risk of these types of losses through the purchase of commercial insurance. There were no significant reductions in insurance coverage from the previous year, nor have there been settlements in excess of insurance coverage for any of the past three fiscal years. 16 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 NOTE 6 — EMPLOYEE RETIREMENT PLAN The Authority maintains an employee retirement plan for all full-time employees after 90 days of employment. The plan is a defined contribution plan. The Authority contributes 7% of eligible employees' compensation, and employees may make voluntary contributions of up to 10% of their compensation. For the year ended September 30, 2016 and 2015, the authority recorded $58,413 and $36,513, respectively, as retirement contribution expense. NOTE 7 — RELATED PARTY TRANSACTIONS In October of 2004, the Authority formed Renaissance Courts Public Facility Corporation, a not-for-profit entity, to become a general partner in Renaissance Courts, L.P. The Authority transferred low-income housing credits obtained from the Texas Department of Housing and Community Affairs to Renaissance Courts Public Facility Corporation, who in turn, transferred them to Renaissance Courts, L.P. Renaissance Courts, L.P. is a partnership formed to build and operate a 150 unit housing project in Denton, Texas. An outside management group manages the housing project which opened in the summer of 2006. In the event Renaissance Courts Public Facility Corporation is dissolved, any remaining assets, after all of the obligations of the corporation are paid, will be transferred to the Authority. The Authority's directors are also the directors of the Renaissance Courts Public Facility Corporation. In 2014, the Authority advanced funds to the project to facilitate refinancing debt on the project. The advance totaled $213,603 and is shown as due from related party on the statement of net position. NOTE 8 — ACCOUNTS RECEIVABLE Accounts receivable at September 30, 2016 and 2015 consists of the following: Tenant receivables Receivables due from other Housing Authorities Receivables due from tenants from fraudulent activity Other receivables Less allowance for doubtful accounts Total 17 2016 2015 $ 3,275 $ 1,331 44,080 9,043 4,168 16,674 3,600 2,946 (38,630) 24,185 $ 16,493 $ 5,809 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS NOTES TO THE FINANCIAL STATEMENTS FOR THE YEARS ENDED SEPTEMBER 30, 2016 AND 2015 Note 9 — Inter -program Receivables and Payables Inter -program balances at September 30, 2016 and 2015 consisted of the following individual program receivables and payables: Program Housing Choice Voucher Program: Business Activities New Construction Program Senior Housing Program Senior Housing Program: Business Activities Housing Choice Voucher Program New Construction Program: Housing Choice Voucher Program Business Activities: Housing Choice Voucher Program Senior Housing Program 2016 2015 Receivable Payable Receivable Payable $ 2,794 $ - $ - $ 6,013 9,787 - 3,442 - 690 - 504 - - 38,513 - 35,698 690 - 504 9,787 - 3,442 - 2,794 6,013 - 38,513 - 35,698 - $ 51,784 $ 51,784 $ 45,657 $ 45,657 These accounts were eliminated in the preparation of the general-purpose financial statements. Note 10 — Note Receivable The Authority sold a tract of land and took a note for $150,000. The note is to be paid from the Authority leasing space in the building to be built on the land. The Authority will reduce the note receivable each month for the value of rent expense associated with using the building. Note 11 —Special Item The Authority wholly owns the Denton Public Facilities Corporation ("DFPC"). DPFC is a public facility corporation and instrumentality of the Housing Authority of the City of Denton, Texas. DPFC entered into a memorandum of understanding with a developer form a partnership to construct a 322 unit multi -family apartment development in Denton. DPFC is the owner of the General Partner. At the end of the 15 -year tax credit compliance period, DPFC, or its designated affiliate, will have first right of refusal to purchase the property for a price equal to the outstanding indebtedness secured by the project plus an exit taxes. DPFC received land valued at $2,470,000 in connection with a 99 -year ground lease on the project. The value of the lease is recorded as deferred revenue, and will be amortized over the life of the lease. im FEDERAL AWARDS SECTION Members: AT r Jul' AMERICAN INSTITUTE OF HANKINS, ASTUP, DEATON, CERTIFIED PUBLIC ACCOUNTANTS TONN CSL SE AY TEXAS SOCIETY OF CERTIFIED A PROFESSIONAL CORPORATION PUBLIC ACCOUNTANTS CERTIFIED PUBLIC ACCOUNTANTS 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940) 387-8563 FAX (940) 383-4746 INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in the Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Housing Authority of the City of Denton, Texas (the "Authority") as of and for the year ended September 30, 2016, and the related notes to the financial statements, which collectively comprise the Authority's basic financial statements and have issued our report thereon dated June 27, 2017. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority's internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal control, such that there is a reasonable possibility that a material misstatement of the Authority's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 19 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control or on compliance. This report is an integral part of the audit performed in accordance with Government Auditing Standards in considering the Authority's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Hankins, Eastup, Deaton, Tonn & Seay� Denton, Texas June 27, 2017 20 Members: AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS TEXAS SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS HANKINS, EASTUP, DEATON, TONN & SEAY A PROFESSIONAL CORPORATION CERTIFIED PUBLIC ACCOUNTANTS 902 NORTH LOCUST P.O. BOX 977 DENTON, TX 76202-0977 TEL. (940) 387-8563 FAX (940) 383-4746 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE Board of Commissioners Housing Authority of the City of Denton, Texas Denton, Texas Report on Compliance for Each Major Federal Program We have audited Housing Authority of the City of Denton, Texas' compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of Housing Authority of the City of Denton, Texas' major federal programs for the year ended September 30, 2016. Housing Authority of the City of Denton, Texas' major federal programs are identified in the summary of auditors' results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of Housing Authority of the City of Denton, Texas' major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Costs Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about Housing Authority of the City of Denton, Texas' compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of Housing Authority of the City of Denton, Texas' compliance. 21 Opinion on Each Maior Federal Proaram In our opinion, Housing Authority of the City of Denton, Texas complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2016. Report on Internal Control Over Compliance Management of Housing Authority of the City of Denton, Texas is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered Housing Authority of the City of Denton, Texas' internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of Housing Authority of the City of Denton, Texas' internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. i Hankins, Eastup, Deaton, Tonn & Seay, PC' Denton, Texas June 27, 2017 22 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2016 1. Summary of Auditors' Results a. Type of auditors' report issued on the financial statements: Unmodified. b. Financial statements — internal control over financial reporting: Material weakness (es) identified: No Significant deficiencies identified that are not considered to be material weakness: No c. Noncompliance which is material to the financial statements: None d. Federal Awards — internal control over major programs: Material weakness (es) identified: No Significant deficiencies identified that are not considered to be material weakness: No e. Type of auditors' report issued on compliance for major federal award programs: Unmodified. f. Did the audit disclose findings which are required to be reported in accordance with 2 CFR 200.561(a): No g. Major programs include: Section 8 — Rental Voucher Program, CFDA number 14.871 h. Dollar threshold used for distinguishing between Type A and Type B programs: $750,000. i. Low risk auditee: Yes 2. Findings Related to the Financials Statements None 3. Other Findings None 23 HOUSING AUTHORITY OF THE CITY OF DENTON, TEXAS CORRECTIVE ACTION PLAN FOR THE YEAR ENDED SEPTEMBER 30, 2016 CORRECTIVE ACTION PLAN N/A 24 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS SCHEDULE OF STATUS OF PRIOR FINDINGS FOR THE YEAR ENDED SEPTEMBER 30, 2016 FINDING/NONCOMPLIANCE VPA 25 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 FEDERAL GRANTOR/ Federal PASS-THROUGH GRANTOR/ CFDA Federal PROGRAM OR CLUSTER TITLE Number Expenditures U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Section 8 — Rental Voucher Program 14.871 Total U.S. Department of Housing and Urban Development Total Expenditures of Federal Awards 26 $ 11,880,094 11, 880.094 $ 11,880,094 HOUSING AUTHORITY OF THE CITY OF DENTON TEXAS NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 NOTE A - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards includes the federal grant activity of the Housing Authority of the City of Denton, Texas and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of the Uniform Guidance. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. 27 m E E 7 y w X d C O C: m ❑ m a) Z, w C W ME O N O M C) O C LU (0 a) } (0 U to LL. 3 (n N 2 j) Q N C .N m J ro W N O N C L_ (O EFT LO O r 00 00 v3 CD Ld 64 r cq N (O fH r W OD » 00 O r NEA M N N fH M 04 fA N WT N (riOj yj W V U3. d' 00 N _00 MC:l N fH V N N fH O fA t00 N M fA 00' L M fA O M 0) fH rn C U M () (O r. 00 0) (O QO) a N O 0p E N N N co N 0) Lo M M m O 0) U -T �i U -T (X U N m� U11 0 0 N (m� 00 W O N d' _> O O O O 0) N N (r) O N mV (O O (V O O M L6 M C7 W U d t U -T LO fA fA fH fA �U rn c O C to Q N a) E J O_ O C G ++ > Jcnto . c 7 U o O ❑ U N U o c m N o L a) O �O co 0 E ~ i coLL i a) c +N+ c � N N > N '� ) C E N 0 O O L O U U 7 7 U m 3 >+ rn Q C o t1 C O Q O Q a) U +, O O O O O a) E 2 - c Q Q a) Q L0) co Q O 40 o 2 t .c " N N N N N LL -Qua) Z 'r—, co NU)— "O p NNN >•> > N0 °°et 0 °U 0 c 0 U) 0 0 aU> —U 6 a) U FZ ot o ° C m w s c c --- w_C U U U U 404a) m° 40 0 *' Co > O m ~ m° N ° 0 c 0 c O a°i ° c 0aci C: W ami U C C C C C N co J N L L L L L O 7 O 7 O O 7 O o "O NO O C U U U Q Q > >>U > QQQQ C14 Z LL Q C C C C r- r N r CO r d' r LO r O O r- N N N d• N Lo N (O N to N t0 N 1-, N 1 00 I N 00 N O N O N r- N M M LO m N d• M d r- w q m E E C0 X au i v � fC pLM au r C W -65 co (DD m N r m 00 0 O 00 0 O co 00 m W �D r M Ln N O N m r N f ? O r co (Li 7 V N C', Dm) m W U) Uj (V Uj M fR 00 U9. m m Uj U9. fD Uj co Uj N •� Q N O m W � m fD Or (D O (D O m m m N m r m d CO N o (D Li 0) com f, t` O ari N O N 1 co Lo 00 M m Hj V _m fD W m 0 J N co O O co @ : m E17 Uj 00 (!J Uj Uj N C coV V V V O 0) 0) 00 �? O m LON 0 r- M r V N00 _m N N O ❑. a) M C N In m M M M Um U9. N cD m� .N U O m _> M M m lD O Cl) m p Oi Oi N m W 0 d3 L f6 IL C: ° c g U a 0 U v ° ° o Z o 0 Z o ° E ° a) .o ° p Q m > > m o M o ° ° c c cU �a) a) U) > L L Q U) � U) a) O U 0 U U o m U M :D -o Co 0 06 06 Zo o Z > ° °p Ea) o QcN w[ifc 142) n E E fl 2 o OO po ° Q ° m p IL ,zs o O n c° Q m N o W o uJ E o c Ui °° U c `o) - � ° n m m m U)� O m -1 -j [IfN Q E Z NO CL �cEN - E Qm o c c °° m —O ° c m 7 N ° U O 0 0 0s ° S� Q H J m L7L L7L J Q U C Z z O C H p co d' l(7 ON M 't l(') O 00 O N M It O O O O d d d l(7 O O O CD CD Cfl O O O CJ O m � 00 N N N M O C a C .F O C O C N 0 m E E 7 a) L N C 4) O c C R � m a) C W m o CN O O Cl Cl O) 0) (rj w O co M fA M co 61T N fH N fH — 64 co � V cq � cj fH N N .] t Q co M M M m Ma) (0 c N N 0=1 (p (n 64 7 m J N O 613, (0 N •C O c 'O O)N M co oc CL N r N N O O) 0 d00• M E m en en en EA y3 en U N m N ' L 7j = O - (n ;&N (D M M > U00 r- (d M O) r f0 U3 fH EA EA 64 O d L �U M c pc c � ` 3 o lm 0 '� ° Y O 0) U U O C N ` U) E a ns Q) a °@ o a) a) c c U O m Z o Y U CL O ' (n C a U > 0 cc C C " C m a) _ 'o E E �' 0 0 00 °ate0Q m II p 0) f— O '0 •--I > >_= a O N O 07 O) Y 0~ O c N 0 O O i U 'D O 7 V A J+ N C (� i i 0 0 O J O J= = I a) _ a) a) 2 N U C m a) C O O N D V Z Z= O Z N a= ca co o @ (0 0) E C 7 O O O O O CN U R' N c0 = 0 C O N m U U_ N U) o fi a j J Z E E U Y .0 a) a) a) Y Y c c c U -0 a) O L J (0 7 U a) N J� O O O 2 O O O N N c 0) 0) U C m c U U U U U U U U U c a) t U a) ns c c C U ns � ns U U U U U U U U U a) C>> U z m a a a a a a a a a U U o a �� -i -i a -i L �_— N �— N d' LO N M �— N M •�• VO (O I-- CO C) �— N co d' LO (0 �—V' _O M M M M coM d' d' 't t •— LO LO (n LO LO LO co co co co co co co M M M M M co co M M M M M M T., 1 _ \ L2 I - co � ° (q � \ j \ LO \ \ \ CCL co ) \ \ \ \ . \ _ } eq e ED ) \ OD OD jOD § /j \ 0) � co e Q Q 00 & $ / \0 kF / 0,K / / 40 07 61� e e e �g � 'S / 7 e ) \ / ƒ } < 0 u e G 0 2 ® ° _ = 9 ( / \ k ) \ § e ± g o I < _ . _ C:\ ' I $ % z % 2 / ( ) J § z = / ƒ 2 k TO 7 / / \ & \ u e \ k J / < / / 0 0 / & f # w o 0 o e K n o % % / & / E E E 2 � CD ce) � � 0 £ J 7 .) ƒ § / 2 q 2 - Cl co G©§ 3 2/ o co \ \ Ld \ \ � m � \ \ k G ] 0 \ \ S 0 \ } \ \ \ \ . \ k } \ / m \ J § ® \ [ § / \ / $ « m ® 2 \ G\ S m ±« m 2 « « 2 /) 0 g a 0 y =_ o= E _ *ƒ \ /: _ _ & k� o m 0\ƒ o o 0 0 a) / 2 e E / / £ a % < < $ / / / _ / f= o $ j I E , I , o , a P , e t e t r \ s;_ 5 % ®_= / ° » 6 _ 2 ° 2 . g § » » 0 0= 0-0-a _ _ t = _ o » z ) t _ t= = m 0 m _ _ ' ` ° ® \ % § \ \ ° ° / ° E a @ > > m = o \ 2)/ E «\ 2 ¥ a 0 0 0 2 » 0 2 _ 2 _ CO b 2 2 t E f g m// 0 / «/ f ) n = E » E » E 0 E 0ƒ} E » 7¢ = o » ® 2 a ®3 ) = § c$£ E)\ 3 3 3 3 a o C o c n o«_- o o{_ o _±_ _ ® » / m 7 c G § § = = = = ® m ® u ,O n = » » ± / E E 2 2 _ � 0 0 0 0 0 2 2/ 7 o 2 2\ $]\ a 2 q)) g q 0 0 0 0 S S« e 0@ k 00 0 >>>@>< O O O O O@ <<<<<- 2 z L<@ 5£ a E 5 . a n # r / & \ 7 \ \ 6 6 \ \ \ % \ Q 2 2 2 ? ? O N O Ch O 'L7 C W N i- ro U N LL O) O c0 M O) W rn (0 C. OD 0)0) @ O o Ln rn N o0 Ln ?O OD N O N r I- r 'I N Ln O r � m LOO r N M 00 (DL6 O 00 ER ER ER � fA fA C. rn W v v w OD N W c c L p y c C N 7 p U °' Z o c •� 0 Z w E L m 3 -o' m 0 Q m co L 7 : N O o N N U 41 " � t L N p M -p 06 � Z� 0)m 006 p U) p 2 p > 4? LL a) U) c m cn a) a� E E j Q p a 2 2 Q p 0 U) p od o E "- -p U) vi - QQE W W 0) c U -o N o > pp Z p Q O a am m -o o _ •c c E m m m ) c m U) p (6 > > > p U c p vim- p p _N p N y > O p O (6 C Q I- J CO LL LL J Q U C I- Z Z iD O C I- 0 H m LO O N M dt Lo CD I-- 00O .-- N M d• CD O O O .-- I' LO (D CD CD CD CD CD CD CD CD Il- ti ti ti ti 00 O m c- .-- .-- .-- --- --- --- --- --- - - .-- .-- .-- .-- .-- .-- --- N N M 04 % x � 2 ƒ / .§ 0 3 0 ± m 2 q _ \ § % / ) / & 2 & % \ \ § / m _ a _ N _ k ] / / / \ ƒ \ \ 0 0 \ 0 0) 0 } / k \ � \ \ n E / § \ © ƒ \ [ k A)% 0) k 1 j 2 \co m R / // \ m / / \ j jt t § ƒ / $ j ƒ ƒ / e e E m \ $ I o 2 / < .§ 2 \ \ ƒ _ i / \ _ a _ » = % 2 116 < _ % 0 & & _ n = 3 o @ t n » » » m e V A » n L) n , = = o o = o _ a — , » 2 g _ % % ».� m Q = _ = o o Z a m=» o 2 Z z z g e m c � o m c 5 3&» c 5 2 a _ = a 3 ' g g . 5 .a 5 \ z 2= 9 n * n * $ _ _ / / c = c C:o» \ o o = ? » » 3 _ , » = 7C: &an &ao e= &_ 0 4n &cc = 0 0 E E j Dƒ _ '0 _ » _ _ _ r = _ 00 2 2 2 2 3 3 \ c E m G e && 9 2 E 2 0 0 0 0 0 0 0 0 0< o z < u E < - n a # < a n a n - a aN a n n n&## $ $ ? \ 9 G / / 7 2 $ \ 7 9 n r r r n n n m m m m m m m n m m m r r r n r 4 O (V O co m O C W } U N_ LL N M E x d 0 � t Q O v m � N m O � O O C: C (D W M LO N v O Cl (nD n � h LO r 0) r H d' co LOLOO L6 (ND N W cl� C\r C6 6 06 Cl 00' o LU " vIt e�l 06 Q' W c ca N U 7 O N Q_ N c O O N N N O N Q ON r� C A ~ U c fl O N O O 0 N N 0 a) c O Q 42) O C *J Z aNi oZ -0 aNi c O m 'O O C M Z 'Fu J n N W J Z I0 Fes- t 10 F�- O 0 O O O O 06 O N •- co •- O O Ch M It Ln Ln Ln Ln CO N 0) X O L Q 0) C O 2 C O C N 0 T O N O CO m O C ui Ia N LL O N �d OD m NO L EA W C6 00 m C 00M M _ LO w cq N d' 06 �_ G N O ED ) Q LOM O d O m C M LO N EA W, M Mm CD m M N C N EA m EA m J � O EA m (0 N :C 7 �' d.. M N N co V (P co Ow -- C N °_° eC d N (00 N � CY) E m W EA W 6g N Q EA EA EA EA U N Eo N N U V O M O Q C O 00 N M M 2 00 (C7 _ r N 00 N M M N LO ORU -- Ell N EA d O L 69 �U (D W U) o N 2 � � O N Q U � a) LL 7 N m a)O O C O O a) - O EE U) LL LL C7 a a) a) a) > , m a) (D.� c ac) c p Q U) E f° a) �i E LL Z a) E o Z a) C O U) a o rn a) > C o E O m 5 o 0 0 a) _ O C r U) a) C� o m> o c rn > ca o a rn ONCN woNo o J >Q(DENa) a) 1: M O O E O m� � `E Mn LL o m 0 ELC O C N �p N N 'C U N C (6 .E O a) O O ctf w O O p L> O O O O> p p Z I— h 2 U Q m LL O I— O S 2i a U LL O CD s I— Q O O O O O_ O o 0 0 0 0 0 0 0 0 O_ O O o 0 0 0 O O O O N CO .4" LO 0 O O O O 0 0 0 0 0 O C7 d' LO Cfl O ti ti ti ti ti ti 00 .- N CO C7 d' L O O O O 0 0 0 0 0 0 0 0 O N O .- I� ti ti ti ti ti ti ti ti n ti ti n n ti ti ti ti ti n ti (� T q ca CD (O p rn N m r O co 00 M M (O Cl) O C ((O ^ M?M n a^0 M M m M Cl) LO 000 N M L N M O N N M U7 (p fp 7 04 N n (n fA U N N m 6 6N9 N F Q. h 04 O ^ O N 0) M N Ci 04^ .^-• N N 6% w O M00 EA � N C .N 61 yj U7 6161EH co m 0 J N � � N N •C C "0 O l0 20 O N (O O O O O OD co _N d) O C O ^ O d) O f0 M O (O M N M (O M ? 0) M e0 a N l0 1� 04 M N N 0) h UT (D (O (O N ^ N EO m 11 E! -T (A U7 U3 G9 NEF? 6q (fT (fj Efl U3 E! -T U N (fi rn2 c � U LO 0) n N N N N O p = N n O 8 � d) CD i N C6 (p0 h r V 0) M p co W •� (R Efl 70 N a) O U N � N M C_ caC N N C > C C O 6 O O m u ami n n C "' C C ca o Q m U O U a) m 2 ca C m ci L a a) a` )i a� E �' a) �' a`a)i O +: O c c N O (n a) c a> O V N 0 (n c m ani aci o> m aci o Z m Z c LL E .� m a Q _0 (D n3 m m cm a) a) 'C Lu w o ami �' •C '� O a7 N N C U O C c _O -= c o o E L f Q m Q w O , a 0 Q w w c� i w F° F°- ii Cl) O O O O O O O O O O O O O O O O O O O O O O O O 0 0 0 0 0 0 0 — 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O— N M d' M.- N M d' m (o ti N N N N N N M M M ('7 M M ('7 0 0 0 0 0 0 0 0 0 0 0 O7 O O O d7 O 0 0 0 0 0 0 0 9 c Q w CE E 7 d N C d Q. w @ 0 N V N O M m V0 O 0 'd' M O V O r m O O M co (~O .2 00 00m (n yq E! -J yq 64 64 64 64 609 64 64 N Q V co N O I� C\j co co W W M O LO LO m M m cp r N C N Nom- 64 6M4 0 604 064 66q 6M4 E!-7 N 64 64 604 � [0 J CD 64 64 64 � N C C O r N r co a N 1- M 1 N 10 W N cD (O r 0 6Nq N (+i N M M 0 W 6.LQ 04 E m64 64 64 yq (!-7 6M4 U9.64 64 6 . 64 64 64 U N m(,o c0 U 0> N 0 00 M 04m m (D (0 m O O O co 0 00 � m 0d. 7:Cl) 609 04 It O 6q V ? (O co It W U 64 69. 66q 66q 6N4 64 64 (.p 66q 0 �U N � C U C @ U N C O U (� N U) J O Z U U p 0 o O O m 0- io io m CL n a o U o O O O 0 N 0 (0 0 (0 `O -0 L_ 0) L_ U c O cn E U U O N O O C J O O C. U cu U O E N C U ma U N C C G U Vl U U U N�� CL (0 N (0 O (� N C O U N U N U � � U C N E U d 7 C LL�(J N (0 C (0 2 N Q N (0 C - N c0 c0 c0 m N U U) U m�- N �N j N i i i m m m (0 O I- O O O w I°- a. a_ a. w �-° a Q I° O U a. m m O O O O O O O O O O O Oo 0 0 0 o O o 0 0 0 O O O O O O O O O O O O N O •-0 O O 00 O N M (0 0 N M (0 0 N N co d' LO co co d' d' d' d' It LO LO In In O OG OG O O O O O O O O O 0),0) O O O O O O O O O O O O O O O O W ƒ � _ \ \ \ \ E \ \ \ 3 § / \ / j @ / [ % . Cl) 61)g o . / 5 LO Cl) �m ( 0) 0 ® _ _ e _ 1 \ \ * \ \ \ \ fcli \ 0 \0 / E x \ \ \ f E o \ 2 § 2 § E m 2 % :N 2 \ m I m t$ 0 » > _ / E E « ? 2 / S 0< E = \ - /_ 2 2 // = o S m _ C: E / 2 CL \ \ ) } m \ CL A § ® m = m o f _ >= { x u ¥ 5 3 # \ / \ § x / \ f 3 ( / \ : o + E ± \ $ j y ® \ ® < / y j ƒ \ } _ j ° o \ 5 0 ® c _ I u) ± \ - c- m S Co @ @ 0 2 z c« / o b m \ a-= m § S 3 : / m ) e E 2 _ y ¥ £ » = ° .0 o E 6 \ » E e » � \ / 3 ) § t / \ = E o 5« 5\ O m b e. c E u \ c cLU x = _ > / o , 7 _ t o / / m 3 E ¥ § E E_# _ _ ' 2 s / \\ _ _ m= o E o o x « m o<,@__! o =_ I m@ 7-<@ @ ± u Q I I o± 0 2 2@ 0 0 0 0 0 C0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 & r o 0 0 0 0 o r o 0 0 o 0 0 & = m o R w w w = o & 0 0 t r= w= 0 8 0 CD CD = c= c c w R w w w w w w w w o 0 0 0) 0) 0)« = m = = a = m = m = _ = a = _ C, C, m E E 7 co d N C CLd C C O m C ❑ d d C W @W p .j U) u 604 O 64 h O (D N 604 CO N 64 N N Q o N h 0 O O N 1- 0 o (D C N LO N 64 N 64 S7 N64 m U JN 0 64 0 64 0 64 W aD N c v Oo n eo LO 04 m o �_ a (D m (i IN LO of m h U (� i N N (d 0 (`1 C N O0 T- C) 0 0 604 W N Cl) OR •i 064 604 C, EA EA 0 C O O H U m .0 L 0 0 J O C C O C N U = > U) U C NC C C c C (Doc C C N c MOEMOU C .O m O m Q m N a) a) 0 UUj a) H U (6 C c EE J N N 'p �- >o •� o o c- m o~~ E m` z W<,0 -0- U❑❑ a� O U -j O H 0 A ( Z ' OOO a) CL U U N � O d'O E C c Lu ac) '� (n (n Z 0.. Z U U m m c c c E c a) 0 3 3 m LL c m c c E o u) x w x w m a� c c Q o o c C O O Z ani '� (� c U U Z) co Q Q>Mn c ami Q O c c c Q 'c aa) a` ) m a) m a) o n 0 w O �_ n m 0) aa) a> a` ) 0) ami a> amio> 0) 'c c m m m° V) N v C a> L o C m C m C m C m C m C m E V) c Q Q o o y`� )C Q. O X a) a) 'C .0 .0 L .0 L L -p O O O 0 m W 0 C H H H W Q' m m U U U U U U Q 2 O O O O O O - N M d' O O 0 0 0 0 0 0 0 0 0 0 O M 'ch LO O h M m O O O O O N M t LO O h M O O h CO M 0 0 0 0 0 0 0 0 0 0- O 0 0 0 0 0 0 0 0-- 0 0 0 0 0 0 0 0 0 0 0 0 .-- --- --- --- --- --- -- .-- O N O M O •D C LJJ co a) co U to LL. N E E C+'7 cn � C "J �a o x w Q O m cm � � C a) O 2 c Q ai Z� a) r) 0) c c LU a) 7 a CL I-- 75 o r -- U) In N N .j Q N N C �N m O J N m N •c c o 0 00 0 c 0L ami N Em 0 U N .N r o 7 N (O _ 0LO W V W U � U � .00 �U a) co co L L) a) U > 7 d f6 N a) D Mn N Z) D C C L U LL @ N D Of a) 0 J p Q U) E @ N C a) > LL a) N E M C C, r ` W W E N CO U E 0) p U c o p a) p a) L (� C = .0 C •C N U c E a) U 'D C •D :m D n U N� N LLL D. C Z W J CO LL LL J C LL U a) C' 0 0 00 0 0 0 0 0 0 f- — N M 'd• In CO — O N N C0 C0 C0 C0 C0 C0 In m z O N O M CD O 'D C: W (6 U N LL q N O W CD O V) 00 CO V) 00 N O @ M N Off" O W � O Ld O O ~ (OD N ((D 00 U3 �j N p Lo (D O 00 00 ef�c 11 00 V m M O E» V) GO LO LO 2 w �' V)LO LO U) 0 N U) N Q N 4- _ C N N C N O c C � 4-- N > N C9 O LL N N O U N O U O � QI = O Ur i U C O N c N N N N y N N N (6 C N E LLC U N U a LL ca > O N E O N = O O N N > C o c c U) N .�.. C C O N > O c N U C C > N c ¢ E Q N c O o 4- N N J N > N LL C O.' a U N Y N N C9 � (n N a� c H Fo 0? LL E a� o�� o E� �' c Q c(n o m a� U= a� c E o 2 2 z U Q m° L 0 I° O E 2 a` U LLL O CD S �-° Q Q O O O 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 O O O O O O r— N M 'I In O O O O O r O O O O O O O co ti' LO CO CO f� � r-� r- r- 00 — N M CO 'q LO CO O O N_ O O O O O O O O O O O O — — — r r N O _ r -r -I r- r- r- r- r- r- r- r- r- r- r- r -r- r- r- O O C\j C,e) � � 0 £ D : D 0 2 0 / 2 2 k � LU _ 0 \ 0 / \ _ \ \ ( ° © ) § 7 k CD k \ \ \ \ / / / j \ \ \ / 64 \ LO LOk d \ /ua \ \ . f o ) / f { \{ { E \ a)\ \ \ 'r ƒ \ 0 2 � \ q 0 u \ {\ o\ $ u 0 3 _= f k LL $ e f = S 0 0 S ± o=% = m c m » > § e e� u o= _ u . m = = m e� c c « c e o \ m i- / ( $ / $ 7 CL x = E n m 2 $ ƒ Co % ƒ $ 2 c e% am u a O 5{#® • m & _ _ _ _ I n o o = } ¥ o % S % E / f / 0 \ \ (§ \ ( \ ® @ \ \ $ E � 5 E o=@ 7 3@ 4 E 3 E< «@± LU P I o E u m u 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0— 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 n n# 11—mll) = w o o= o o — & n# r N m# m m w= & && a % m m m m m � n \ \ 7 \ \ \ \ \ \ _ « « 0') « m « « « « « « « « « z.; 0 N O M O C LL q W � N 7 N O v 7 C. W fl 00 fl d' o r Cl)O 7 00 O 7 rn m i� m 00 f0 c'7 c'7 (D LO r O N f� N O � pp r m !fl EF3 fR 63 fR W, EF3 ffl ffl ffl ffl ffl C. w W a) C U C U) C a) U L O � V/ nz c O > U o ami ccc o 0 0 0 0 d I L I o a) o rn c U) CL o_ o_o O O O U o -0 MMM 'a 'a o aa)) L a) L :fl c U) E a� X U) a) a) a) c J O O c U ca $ c U v, U a) a) a) a) a) o a) 0) cca ccc m m a) c -c = m a a CM j U Q C LL Ca a) U O U c Jo O a) cCoccCcocccoC m m C H m mo o d c O N co Y a nz aaLLa ° L O aEN > -No -o -o H O O w L a M M w M '�o f- O y ommO CL m 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N M It o o 0 0 0 0 CD N M LO O N M LO ON N M"t Lo (D M d' 't It � LO Ln Ln Ln Ln CD CD (D (D (D (D (D co (D (D (D rn m rn m rn rn m m m m rn rn m rn m rn rn rn m rn m rn n } Cl) 0 \ LU \ \ E q E E 2 k E w 0 \ / § 2 m 2 k ƒ LU - � co } 00 7 / \ w w LO ® § \ \ ea e \ m 22 . $ { \ / / LU 0 7 § ©k LL ¢ j \ / / \ 5 » G � = z e E ( m 2 / \ O E < \ / / _ / g > G = § $ m_ C E § i m\ 2 ) \ 2 [ \ E x 2 o\@ ¥ - 7 < @ = ƒ E c e c = e ®{ > _ x ± 5 @ _ m - e » =_ , 0 m = x 0 g 3 f = u ) ° />{ E 7 o r m =< i a ) 2 \ a c 5 \ c m /& a / G 7 \ % 2 \ ] ƒ � S % \ G § : ( LU z=« 0 j /§ 7 2= o < a E 7@ e _ 2= @ % _ o N [ 3 R » � t± u < e a// < = u 7= 2 ® /// a a o < o �. o\ = _ u R x � ) \ E E � / \ < \ \ ) $ E = 3�� k � \ / \ r f 2 3 0 x E / E E E . m e z 3< R e u 2 Q I I c z O c 2 e 0 0 0 0 0 0 0 0 0 0 0 00 0 0 0 0 0 0 0 0 0 0 0 0 o a r o 0 0 0 0 o m o 0 0 0 0 o a r = o R w w w = o a r r# m e w= o w 0 o 0 (0 (0 _= e= e w % w w w w w w w o 0 0 0 __ __= o = o o= o 0 0 0= c c o CN CY) � : 0 3 k ./ R T- c / 2 n 00 \ \ \ / \ \ 0c) \ \ jCD CD 2 / Cl ) \ \ \ } -i \ \ .E fn 7 = 2 ,/ § a e p R e f f « '0 5 \ § f E \ f E \ \ \ \ ± o 3 0 = ? \ >1 § � G e ®k k ± 0 E co7 \ \ ) / / § d d -0 0 \ 0- Z) > / ° ® 3 ± @ ®\ > \ m ° 0 m c g ? @ @ = S ® _ Lu _ ® o o o o ± } % o / \ \ \ § \ \ \ / -o \ -o @ } } ± / 2= 2%\ m n , o o e 2 $ ® N [ » a e 2 a o o@ E e© _ » 2 E 3± 0 5/ E E J j o , o = a O , , E >1 _ / _ 0 0 _ 0 _ _ c .0 \ } g » o=_ .- 2 2=== o E / } S S $ $ � P 5 ±: / t / \ \ \ 2 § S _ e[ 2 ® j f\ = 7 7 = : = o o = _ — — \< > e E` e t t / E_« 2 = o 0 2 q+ e> 4 n J e e = 5 _ e= + = < _ / _ — _ _ _ — • • \ < £ / f-0 y— 6 7 _= m a ƒ o \ m \ m=_, \ \ \ % \ _ \ $ $ 0 7 E _ \ ) \ $ m o o@§ G G ` 0 u k o% G§%%§ E ). _ @ @ # _ — @ @ 5 x = _ _ _ _ _ _ _ _ = o = o E E± m 3\@@@ 2 E I E o 0 0 0 0 0 �. MD 0 0 0 0 0&=# 0 0 0 0 0 0 0 0 0 0 0 0 0 0 # o = w = m m e m o o a n � m = w= c o w = c 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Q 2 r. q m E E _ CLN N c N hx- W 'S C= c o s= (u o c W m o � � W a) M U� a) > m m c LL m 3 ° °) Q ami E m JT LL N C N o t� E E E L N V) -E N a > a U U m w > w CL 2 s m E E U) U -6 E m U) O N n N E U C c c U (6 m LL a Z W J CO LL LL J C U rY 0 0 0 0 0 0 0 0 0 — ti — N M It LO (D — O N N (D (fl (fl O (D (D M Cfl •- •- •- M M