HomeMy WebLinkAboutReport - Mail Packet - 5/12/2015 - Fort Collins Housing Authority Comprehensive Annual Financial Report And Single Audit Report - Year Ended December 31, 2014Fort Collins Housing Authority
Fort Collins, Colorado
Comprehensive Annual Financial Report
and Single Audit Report
Year ended December 31, 2014
With Comparative Totals for the Year Ended December 31, 2013
Fort Collins Housing Authority
Fort Collins, Colorado
Comprehensive Annual Financial Report
and Single Audit Report
Year ended December 31, 2014
With Comparative Totals for the Year Ended December 31, 2013
Issued by:
Finance and Accounting Department of
the Fort Collins Housing Authority
Duane Hopkins, Chief Financial Officer
Fort Collins Housing Authority
Table of Contents
December 31, 2014
Introductory Section
Letter of Transmittal i
Government Finance Officers Association of the United States and
Canada (GFOA) December 31, 2013 Certificate viii
Organizational Chart ix
List of Principal Officials x
Finacial Section
Independent Auditor's Report 1
Management's Discussion and Analysis 4
Basic Financial Statements:
Statements of Net Position 11
Statements of Revenues, Expenses and Changes in Net Position 15
Statements of Cash Flows 17
Combining Statement of Net Position - Discretely Presented Component Units 21
Combining Statement of Revenues, Expenses and
Changes in Net Position - Discretely Presented Component Units 23
Notes to Financial Statements 24
Combining Financial Schedules 44
Statistical Section (Unaudited)
Statistical Section Table of Contents 48
Net Position (Table 1) 49
Change in Net Position (Table 2) 50
Operating Revenues by Source (Table 3) 52
Nonoperating Revenues by Source (Table 4) 53
Debt Service Coverage (Table 5) 54
Ratio of Debt to Capital Assets (Table 6) 56
Service Area Demographics / Statistics (Table 7) 57
Principal Employers for the City of Fort Collins (Table 8) 58
Resident Demographics / Population Statistics (Table 9) 59
Resident Demographics / Ethnicity Statistics (Table 10) 60
Number of FCHA Dwelling Units (Table 11) 61
Property Characteristics and Unit Composition (Table 12) 62
Number of FCHA Staff (Table 13) 63
Single Audit Section
Independent Auditor's 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 64
Independent Auditor's Report on Compliance for Each Major Program; Report on
Internal Control over Compliance Required by OMB Circlular A-133 66
Schedule of Expenditures of Federal Awards 68
Schedule of Findings and Questioned Costs 70
Schedule of Prior Year Findings and Questioned Costs 73
Fort Collins Housing Authority
Fort Collins, Colorado
Introductory Section:
Letter of Transmittal
Certificate of Achievement for Excellence in Financial Reporting
Organizational Chart
List of Principal Officials
April 29, 2015
Mrs. Cathy Mathis, Chairperson of the Board of Commissioners
Members of the Board of Commissioners of the Fort Collins Housing Authority:
We are pleased to present the Comprehensive Annual Financial Report (CAFR) for the Fort Collins
Housing Authority for the year ended December 31, 2014. This report is prepared in conformance
with standards of financial reporting as established by the Governmental Accounting Standards
Board and the Government Finance Officers Association. The United States Department of Housing
and Urban Development (HUD) requires that all public housing authorities publish within nine
months after the fiscal year-end, financial statements presented in conformity with United States
Generally Accepted Accounting Principles (GAAP), FCHA's financial statements presented here
have been audited by Eide Bailly, LLP. The auditors issued an unmodified opinion on FCHA's
financial statements for the years ended December 31, 2014 and 2013. The data presented in this
report is the responsibility of the management of FCHA. To the best of our knowledge and belief,
the data as presented is accurate in all material aspects; is presented in a manner designed to fairly
state the financial position and results of operations of FCHA; and all disclosures necessary have
been included to enable the reader to gain an understanding of FCHA's financial affairs. GAAP
requires that management provide a narrative introduction, overview and analysis to complement
the basic financial statements in the form of Management's Discussion and Analysis (MD&A).
FCHA's MD&A can be found immediately following the report of the independent auditors. This
transmittal letter is designed to complement the MD&A and should be read in conjunction with it.
FCHA is required to undergo an annual single audit in conformity with the provisions of the Single
Audit Act Amendments of 1996 and United States Office of Management and Budget Circular A-
133, Audits of States, Local Governments and Non-profit Organizations. Information related to this
single audit, including the 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; the independent auditors' report on compliance
with requirements applicable to each major program and on internal control over compliance in
accordance with OMB Circular A-133; the Schedule of Federal Awards; Schedule of Findings and
Questioned Costs; and the status of prior year findings are included in the single audit section of
this report.
Letter of Transmittal
2014 Comprehensive Annual Financial Report
Government Overview
Maintaining the fiscal viability of the organization.
Achieving a social goal through the provision of affordable housing and supportive services.
Achieving environmental sustainability.
FCHA was created in 1971 to provide safe, decent and sanitary housing for low-income families of
Fort Collins in accordance with the rules and regulations prescribed by HUD and other federal
agencies. This report includes all programs of FCHA as well as all of its component units.
Component units are legally separate entities for which a government is financially accountable.
FCHA was established as a quasi-municipal corporation by the City of Fort Collins (the City).
Although FCHA maintains close ties with the City in several respects, FCHA is not a component unit
of the City as defined by the pronouncements of the Governmental Accounting Standards Board.
The governing body for FCHA is its Board of Commissioners (Board) comprised of five members
appointed by the City Council. The Board appoints an Executive Director to administer the affairs of
FCHA. The primary source of funding for FCHA is HUD and resident rents. The City is not
financially accountable for the operations of FCHA, has no responsibility to fund deficits or receive
surpluses and has not guaranteed FCHA's debt.
FCHA's goals are accomplished through a variety of housing programs and activities. These
activities include several programs developed by HUD such as the Low Rent Housing Program
(Public Housing) and the Housing Choice Voucher Program, also known as Section 8. In addition to
these federal programs, FCHA has established various instrumentalities to explore and develop
innovative techniques for providing a variety of housing possibilities for the low to moderate-income
residents of Fort Collins. These programs have allowed FCHA the flexibility to develop several
private/public partnerships providing a variety of housing opportunities for Fort Collins residents.
FCHA is our community’s leader in sustainable, long-term affordable housing solutions. Each year,
the agency helps over 5,000 lower income individuals through innovative, award-winning affordable
housing and programs that also benefit the city’s economy and revitalize neighborhoods. FCHA is a
progressive housing provider and developer, offering permanent solutions that move people out of
homelessness, stabilize families, and improve lives.
To achieve our mission, all FCHA functions are operated with attention paid to a triple bottom line:
FCHA currently owns and operates 154 Public Housing units in addition to administering over 1,100
Section 8 Housing Choice Vouchers for Fort Collins and Larimer County. The Larimer County
allocation of 100 of these vouchers is administered through an intergovernmental agreement, 65 of
which are targeted specifically to people with disabilities. FCHA administered over $8 million in
Housing Assistance Payments (HAP) to local landlords on behalf of participating families in 2014.
This amount includes funding for 115 Veterans Affairs Supportive Housing program vouchers. HUD
grades this program through its Section 8 Management Assessment Program (SEMAP). FCHA
received an “A” rating for 2014 and has utilized 100% of its authorized authority.
ii
Letter of Transmittal
2014 Comprehensive Annual Financial Report
Economic Condition and Outlook
Long-Term Planning and Major Commitments and Initiatives
Congressional housing legislation and the federal budget affect FCHA more than local economic
factors. FCHA's primary source of funding is HUD. As with most housing authorities, most of
FCHA's operating and capital funding comes from federal dollars in the form of operating subsidies,
capital fund grants and Section 8 Housing Assistance Payments. During the year ended December
31, 2014, HUD and other federal agencies provided approximately 62% of FCHA's total revenues.
For the Section 8 program, HUD provides housing authorities with a fixed annual budget for
Housing Assistance Payments (HAP) and for administration fees.
For the Public Housing program, housing authorities receive operating subsidies in accordance with
an operating subsidy funding formula. In general, the calculated subsidy amount is the difference
between an estimate of operating costs minus an estimate of income from rents. Operating
subsidies are subject to annual appropriation by Congress. In 2014, FCHA, like all housing
authorities nationwide, was funded at 88.8% of eligibility.
Funding for the Section 8 program was prorated at 99.7% and 79.8% of eligibility for Housing
Assistance Payments and administration fees, respectively.
The FCHA supports the development and preservation of affordable housing throughout the City of
Fort Collins. With funding from the City, State Division of Housing, Colorado Housing and Finance
Authority, equity investors, and lenders, the Authority and its partners combine high quality design
with sustainable development principles and sound planning to develop and maintain a vibrant and
diverse affordable housing portfolio. The Authority employs many strategies to create and preserve
its stock of affordable housing for residents. These include new construction, acquisition,
rehabilitation and preservation of existing housing to create and maintain high-quality sustainable
units.
Fort Collins has a population of 155,400 (2014). The average annual population growth rate is 2.04
percent (2014). Median household income is $53,359 and median family income is $76,341
(American Community Survey, 2008-2012). The rental market has tightened considerably in the
past years and rents continue to increase with recent vacancy rates as low as 1%.
iii
Between 2011 and 2013 the Authority analyzed options to dispose of or reposition the 154 units of
public housing operated by the organization. This analysis included both a disposition strategy
under Section 18 of the Housing Act of 1937 and the use of the opportunities available under the
HUD Rental Assistance Demonstration (RAD) Program. In late 2013 it was determined that the best
approach would be to reposition the entire portfolio of 154 public housing units using a combination
of disposition and conversion utilizing the HUD RAD program. In mid-2014 the FCHA submitted an
application for a multi-phase development under the RAD program which proposed to use proceeds
from the disposition of the public housing portfolio in seven separate projects. The seven projects
are projected to result in the development, or renovation, of 665 units of affordable housing within
the City of Fort Collins.
Letter of Transmittal
2014 Comprehensive Annual Financial Report
PAB Authority
City of Fort Collins $ 14,370,568
Larimer County 4,304,925
Weld County 16,165,035
Total $ 34,840,528
iv
FCHA began to accumulate the assignment of significant Private Activity Bond (PAB) authority in
2013 to be used for the VOCC rehabilitation and other significant 4% LIHTC funded projects. The
FCHA has partnered with the City of Fort Collins, Larimer County and Weld County to secure PAB
assignments. Through 2014 the FCHA had secured the following assignments:
One of the larger projects that will be renovated utilizing proceeds from the disposition of a portion
of the public housing units will be 284 units acquired by the FCHA in 2012 as part of the Village on
Cunningham Corners (VOCC) purchase. The VOCC purchase consisted of a total of 345 units of
privately owned affordable housing located in Fort Collins (285 units) and Loveland (60 units)
Colorado. The 60 unit property located in Loveland, Colorado, known as the Madison Avenue
Apartments, was sold in 2014. After the payment of outstanding debt and selling costs, the sale of
the Madison Avenue Apartments resulted in a net cash increase of $809,423. All properties in
VOCC were formerly developed or updated using Low Income Housing Tax Credits (LIHTC). All
properties have completed their initial 15-year compliance periods but still have Land Use
Regulatory Agreements (LURA) in place to ensure affordability for extended periods.
The entire VOCC portfolio was purchased with a combination of $1.072 million in Community
Development Block Grant (CDBG) funds through the City of Fort Collins, a $2.5 million short-term
loan from a local Community Development Finance Institution (CDFI) and a $21.35 million short-
term loan from a local financial institution. A $2.6 million portion of the short-term debt used to
purchase the VOCC properties was refinanced during 2013. The new loan was obtained through
the Colorado Housing Investment Fund (CHIF) administered by the State of Colorado. Proceeds
were used to pay-off the CDFI loan from with the remainder used to reduce the other debt on the
properties. This transaction reduced the interest rate on this portion of the debt from 6.25% to 1.0%
which translated into a savings of over $11,000 per month. All current debt on the VOCC project is
set to mature in early 2016.
FCHA plans to begin the renovation of the 284 Fort Collins VOCC units prior to the maturity of this
acquisition debt utilizing a portion of the public housing disposition proceeds combined with a 4%
LIHTC transaction. Planning for the substantial rehabilitation of the Fort Collins VOCC properties is
underway. At the end of 2014 $937,200 in CDBG, HOME Investment Partnerships Program
(HOME) and City of Fort Collins Affordable Housing Fund (AHF) grant funding has been secured for
the planned renovations.
Letter of Transmittal
2014 Comprehensive Annual Financial Report
In 2014 the FCHA started the substantial rehabilitation of a 95 unit property known as the Village on
Plum (VOP) utilizing $8.75 million of the PAB authority it had previously been assigned. The VOP
was previously owned by a non-profit and was placed in a Limited Liability Limited Partnership
(LLLP) as part of a 4% LIHTC financing package in 2014. FCHA is the General Partner in the LLLP.
The total project cost, including the refinance of the existing mortgage, is $13.97 million.
The other projects that are currently projected to use a portion of the proceeds from the public
housing disposition and PAB authority are the 284 Fort Collins VOCC units and a new-build project
that will consist of 72 units of affordable housing known as the Village on Redwood (Redwood)
project. The VOCC project is currently projected to need $25 million in PAB authority. The Redwood
project is currently projected to require $10 million in PAB authority.
The Redwood project will include 72 new units of affordable housing with 36 townhouse-style units
and 36 flats-style units separated into 12 individual buildings surrounding a large community green.
The mix of unit types includes 1, 2, 3 and 4-bedroom units. Total cost is estimated at $18.34 million.
At the end of 2014, $720,000 in CDBG and HOME grant funding had been secured for Redwood. In
addition, funds from the FCHA public housing disposition, PAB authority, CDBG-Disaster Recovery
(CDBG-DR) funds and State of Colorado low-income housing tax credits (State Tax Credits) will
also be utilized to finance the Redwood project. The CDBG-DR funds are available to projects in
Larimer County because of a natural disaster from flooding that occurred in the area in late 2013. In
2014, the State of Colorado approved a $5 million annual amount of State Tax Credits to be issued
on a competitive basis in 2015 and 2016.
v
In May 2013, the Redtail Ponds Permanent Supportive Housing project (Redtail) received a
reservation of $768,383 in 9% LIHTC’s. Construction of this $12.48 million 60 unit property began in
March 2014 with completion and occupancy planned for the first quarter of 2015. This development
will address the special housing needs of homeless individuals with disabilities, homeless veterans
and other low-income individuals.
Financing partners for Redtail were selected for debt and equity financing through a competitive
RFP process in 2013. FCHA was pleased to select and partner with US Bancorp Community
Development Corporation, US Bank National Association and the Colorado Housing and Finance
Authority on the tax credit equity, construction and permanent financing. An award of $800,000 was
secured in 2013 from the Colorado Division of Local Affairs for the project. In addition, a total of
$1,391,077 in CDBG, HOME and AHF grant funding was awarded for this project between 2011
and 2014. The development represents the FCHA’s first permanent supportive housing
development.
FCHA projects that an additional $8,909,472 in PAB authority will be needed for projects started
2014 or currently in the planning stage for future years. This will bring the total of assigned PAB
authority to a total of $43,750,000.
Letter of Transmittal
2014 Comprehensive Annual Financial Report
Financial Information
Other Information - Awards
FCHA management is responsible for establishing and maintaining an internal control structure
designed to ensure that FCHA's assets are protected from loss, theft or misuse and that adequate
accounting data are compiled to allow for the preparation of financial statements in conformity with
GAAP. FCHA has designed its internal control structure to provide reasonable, but not absolute,
assurances that those objectives are met. The concept of reasonable assurance recognizes that:
(1) the costs of a control should not exceed the benefits likely to be derived and (2) the valuation of
costs and benefits requires estimates and judgment by management.
As a recipient of federal awards, FCHA is responsible for ensuring that adequate internal controls
are in place to provide compliance with applicable laws, regulations, contracts and grants related to
those programs. Those internal controls are subject to periodic evaluation by management, and
their independent auditors.
As part of FCHA's single audit, tests are made to determine the adequacy of the internal controls,
including that portion related to federal award programs, as well as to learn whether FCHA has
compiled with applicable laws, regulations, contracts and grants. FCHA's single audit for the year
ended December 31, 2014 found no instances of material weakness in the internal control or
significant violations of the applicable laws, regulations, contracts and grants, audit reports
regarding this are included in this CAFR in the Single Audit Section.
vi
The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to FCHA for its Comprehensive
Annual Financial Report for the year ended December 31, 2013. The Certificate of Achievement is
a prestigious national award recognizing conformance with the highest standards for preparation of
statement and local government financial reports.
In order to be awarded a Certificate of Achievement, a governmental unit must publish an easily
readable and efficiently organized comprehensive annual financial report whose contents conform
to program standards. Such CAFR must satisfy both generally accepted accounting principles and
applicable legal requirements. A Certificate of Achievement is valid for a period of one year. We
believe our current report continues to conform to the Certificate of Achievement program
requirements, and we are submitting it to GFOA.
A partnership between the FCHA and a private developer was finalized in 2012 for the construction
of a 72-unit affordable development for seniors near downtown Fort Collins, known as the Legacy
Seniors project. Construction was completed in December 2013 and final payments for the
federally funded portions of the project, which passed through the FCHA, were made in early 2014.
Letter of Transmittal
2014 Comprehensive Annual Financial Report
Acknowledgments
Respectfully submitted,
Julie Brewen
Executive Director
Duane Hopkins
Chief Financial Officer
Preparation of the Comprehensive Annual Financial Report on a timely basis was accomplished
through the dedicated service of the entire staff of the Finance and Accounting department under
the leadership of Duane Hopkins, FHCA's Chief Financial Officer. Each member of the department
has our sincere appreciation for the contributions made in the preparation of this report. Our sincere
appreciation is extended to the management and staff of Eide Bailly, LLP who provided necessary
expertise and technical assistance.
In closing, without the leadership and support of the members of the Board of Commissioners,
preparation of this report would not have been possible.
vii
viii
Fort Collins Housing Authority
Organizational Chart
December 31, 2014
Board of
Commissioners
Public Housing
Manager
HCV Department
Property
Management
Executive Director
Director of
Development
Chief Financial
Officer
Executive
Department
Accounting
Department
Development
Department
ix
Maintenance
Department
Resident Services
Manager
Resident Services
Department
Director of Federal
Programs
Portfolio Manager
Fort Collins Housing Authority
List of Principal Officials
December 31, 2014
Board of Commissioners: Management:
Cathy Mathis Julie J. Brewen
Chairperson Executive Director
Jenne Loffer Duane Hopkins
Vice-Chairperson Chief Financial Officer
Susan Larson Chadrick Martinez
Commissioner Director of Real Estate Development
David Bye John Tuchscherer
Commissioner Director of Federal Programs
Susan McFaddin Nancy Stafford
Commissioner Director of Property Management
Ross Cuniff Michele Christensen
Commissioner Director of Resident Services
Jake Miles Joseph
Commissioner
x
Fort Collins Housing Authority
Fort Collins, Colorado
Financial Section:
Independent Auditor's Report
Management Discussion and Analysis
Basic Financial Statements
Notes to Basic Financial Statements
Combining Financial Schedules
1
Independent Auditor’s Report
To the Board of Commissioners
Fort Collins Housing Authority
Fort Collins, Colorado
Report on the Financial Statements
We have audited the accompanying financial statements of the business-type activities and the
discretely presented component units of Fort Collins Housing Authority (the Authority) as of and
for the year ended December 31, 2014, and the related notes to the financial statements, which
collectively comprise the Authority’s basic financial statements as listed in the table of contents.
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 opinions 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 opinions.
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects,
the respective financial position of the business-type activities and the discretely presented
component units of Fort Collins Housing Authority as of December 31, 2014, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Report on Summarized Comparative Information
We have previously audited the Fort Collins Housing Authority’s 2013 financial statements, and
we expressed an unmodified opinion on those audited financial statements in our report dated
July 2, 2014. In our opinion, the summarized comparative information presented herein as of
and for the year ended December 31, 2013 is consistent, in all material respects, with the
audited financial statements from which it has been derived.
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 4 through 10 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 opinions on the financial statements that
collectively comprise the Authority’s financial statements. The introductory section, combining
financial schedules on pages 44-47, and statistical sections are presented for purposes of
additional analysis and are not a required part of the financial statements. The accompanying
schedule of expenditures of federal awards is presented for purposes of additional analysis as
required by U.S. Office of Management and Budget Circular A-133, “Audits of States, Local
Governments and Non-Profit Organizations is not a required part of the financial statements.
The introductory and statistical sections have not been subjected to the auditing procedures
applied in the audit of the basic financial statements and, accordingly, we do not express an
opinion or provide any assurance on them.
3
The combining financial schedules on pages 44-47 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 financial statements. The
information has been subjected to the auditing procedures applied in the audits 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 a report dated April
29, 2015, on our consideration of Fort Collins Housing Authority’s internal control over financial
reporting and on our tests of its compliance with certain provisions of laws, regulations,
contracts, 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 the 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 the Authority’s internal control over financial
reporting and compliance.
Bismarck, North Dakota
April 29, 2015
4
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
Financial Highlights
Overview of the Financial Statements
• Reports on Compliance
• Schedule of Expenditures of Federal Awards
• Departmental Financial Statements
• Schedule of Findings and Questioned Costs
The Fort Collins Housing Authority (the Authority) offers readers of the Authority’s financial
statements this narrative overview and analysis of the financial activities of the Authority for the
fiscal year ended December 31, 2014. We encourage readers to consider the information presented
here in conjunction with the Authority’s financial statements, which begin on page 11.
• The assets of the Authority exceeded its liabilities at the close of the most recent fiscal year by
$12,374,620 (net position), an increase of $428,104 from the prior year balance. The most
significant contributing factor to the current year increase was the increase in HUD funding of
the Public Housing and Section 8 Voucher programs, which experienced increases in funding of
$140,001 and $703,046, respectively, as compared to the prior year.
• As of the close of the current fiscal year, the Authority’s funds had an unrestricted net position
of $8,388,192 and $165,676 in restricted net position, which represents HUD voucher funding.
• The Authority’s unrestricted cash balance at December 31, 2014 was $3,293,355, representing
an increase of $1,105,271 (51%) from December 31, 2013. The largest increase in unrestricted
cash was in Housing Development due to the sale of Madison Avenue Apartments in December
2014.
• As noted above, the Authority sold the Madison Avenue Apartments, located in Loveland,
Colorado, in December 2014. The sale resulted in a gain of $495,254 and net cash flow of
$809,423.
• The Authority received HUD operating funding of $9,790,666, internal service fees
(management fees and overhead cost allocations) of $1,059,745 and rents of $3,700,398 for the
year. The Authority paid out $8,319,806 in housing assistance payments and $5,724,391 in other
operating expenses (excluding depreciation of $1,064,166).
This discussion and analysis is intended to serve as an introduction to the Authority’s basic financial
statements. The Authority’s basic financial statements are comprised of: 1) fund financial
statements and 2) notes to the financial statements. As required by HUD, this report also includes
supplemental information such as:
• Other income increased by $436,164 (194%) as compared to the prior year. The increase was
due to initial developer fee income of $464,455 related to the development of two new projects,
Redtail Ponds Permanent Supportive Housing and Village on Plum, both located in Fort Collins,
Colorado.
5
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
Financial Statements
Departmental Financial Statements
Supplemental Information
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. The Authority, like other state and local
governments, uses fund accounting to ensure and demonstrate compliance with finance-related
legal requirements. The Authority has only one fund type, namely enterprise funds.
The supplemental information is presented for purposes of additional analysis as required by U.S.
Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-
Profit Organizations. The schedule of expenditures of federal awards can be found on page 64 of
this report.
The financial statements are designed to provide readers with a broad overview of the Authority's
finances, in a manner similar to a private-sector business.
The statement of net position presents 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 position of the Authority is improving
or deteriorating.
The statement of activities 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. Thus,
revenues and expenses are reported in this statement for some items that will only result in cash
flows in past or future periods (e.g. depreciation and earned personal leave).
The statement of cash flows presents information showing the Authority's inflows and outflows of
cash and cash equivalents during the most recent fiscal year. All changes in cash and cash
equivalents are reported as soon as the underlying event giving rise to the change occurs,
regardless of the timing of related changes in net position. Thus, cash flows are reported in this
statement for some items that will only result in revenue or expenses in past or future periods (e.g.,
purchase of assets, new loans, or payments on loans).
6
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
Entity-Wide Financial Analysis
Statement of Net Position:
The following table reflects the condensed Statement of Net Position for the organization.
2014 2013
Cash & Escrow Deposits $ 3,735 $ 2,719
Receivables 284 153
Notes & Interest Receivable 5,307 5,089
Inventory 57 43
Prepaid Expenses 30 2
Capital Assets (Net) 26,963 31,511
Other Assets 178
Total Assets $ 36,554 $ 39,517
A/P & Accrued Liabilities $ 589 $ 526
Security Deposits & Escrow 332 292
Unearned Revenue 16 5
Notes & Mortgage Payable 23,243 26,748
Total Liabilities 24,180 27,571
Net Investment in Capital Assets 3,820 5,573
Restricted Net Position 166 124
Unrestricted Net Position 8,388 6,249
Total Net Position 12,374 11,946
Total Liabilities & Net Position $ 36,554 $ 39,517
A large portion of the Authority’s net position (31%) reflects its investment in capital assets (e.g.
buildings, machinery, and equipment). The Authority uses these capital assets to provide housing
and services to low-income tenants: consequently, these assets are not available for future
spending. The unrestricted net position ($8,388,192) of the Authority are available for future use to
provide program services.
Fort Collins Housing Authority
Authority-Wide Net Position as of December 31,
As noted earlier, net position may serve, over time, as a useful indicator of a government’s financial
position. In the case of the Authority, assets exceeded liabilities by $12,374,620 at the close of
2014.
(in thousands of dollars)
7
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
A condensed Statement of Changes in Net Position is shown in the table below.
2014 2013
Revenues
Rental income $ 3,700 $ 3,416
Administrative fees 1,060 1,084
HUD PHA grants 9,791 8,919
Interest income 188 164
Other 1,316 1,209
Total Revenue 16,055 14,792
Expenses
Depreciation 1,064 1,055
Housing assistance payments 8,320 8,335
Administrative salaries and benefits 2,635 2,588
General and administrative 767 651
Utilities 353 382
Maintenance 1,729 1,510
Insurance 153 141
Interest expense and financing costs 777 941
Other 87 47
Total Expenses 15,885 15,650
HUD Capital Contributions 258 195
Change in Net Position 428 (663)
Net Position - Beginning of Year 11,946 12,609
Net Position - End of Year $ 12,374 $ 11,946
Fort Collins Housing Authority
Authority-Wide Change in Net Position for the Year Ended December 31,
(in thousands of dollars)
A large portion of the Authority’s revenues are intergovernmental revenues received from the United
States Department of Housing and Urban Development for cost reimbursement grants and
operating expense subsidies. The Authority draws monies from the grant awards for allowable
program and capital expenditures.
8
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
Departmental Financial Analysis
1.
2.
3.
4. Vouchers: The Authority managed 894 Housing Choice Vouchers (HCV), 115 Veterans
Affairs Supportive Housing (VASH) vouchers and 50 Family Unification Program (FUP)
vouchers at year-end 2014.
The revenue source for the HCV, VASH and FUP vouchers is HUD in the amount of
$8,098,691, which is an increase of $703,046 (9.5%) as compared to the prior year total of
$7,395,645. The current year HUD funding for housing assistance payments ("HAP") of
$7,355,182 increased by $656,392 as compared to the prior year amount received of
$6,698,790. The balance of funding received from HUD increased due to the second year of
cash management policies implemented by HUD as well as an increase in overall funding due
to the expiration of the 2013 budget sequestration. The current year HAP expenses of
$7,396,186 remained consistent with the prior year expenses of $7,383,063.
As noted above, the Authority sold the complex in Loveland during 2014, resulting in a gain of
$495,254.The Authority intends to hold the remaining three apartment complexes in Fort
Collins for an additional period of 1-2 years once tax credit project funding can be obtained for
rehabilitation. Once the tax credit project funding is obtained, it is expected that the
complexes will be sold to tax credit partnership entities.
As noted earlier, the Authority uses departmental accounting to ensure and demonstrate compliance
with finance-related legal requirements. Each of the departments has a specific objective and
purpose to accomplish. The focus of the Authority’s funds is to provide information on near-term
inflows, outflows, and balances of spendable resources. During 2014, the Authority maintained
seven departmental funds as described below:
Public Housing: Owns and operates 154 units of housing for rent to low-income families.
The program ended 2014 with a net position of $6,318,434 of which $5,822,414 (92%) is
invested in capital assets; and, $496,020 is available as operating reserves. The main
sources of revenue are rents charged to tenants, HUD annual operating subsidy, and capital
grants.
Management: Provides administrative support for all departments and has outside
management contracts for Villages, Ltd. (231 units), Wellington Housing Authority (42 units),
Village on Elizabeth (48 units), Village on Stanford (82 units), the Northern Hotel (47 units),
Village on Cunningham Corner (285 units) and Village on Plum (95 units). The net position is
$1,056,676, of which $135,079 (13%) is invested in capital assets. The sources of revenues
are cost allocations, administrative fees charged and maintenance fees charged.
Housing Development: Provides for the development of rental housing and homeownership
opportunities. This department presently has a net position in the amount of $4,578,670.
Revenues for 2014 included tenant rental income, CDBG and HOME grants for Redtail Ponds
Permanent Supportive Housing, accrued interest income on loans to both tax credit funded
properties, fees for managing construction projects and developer fees.
9
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
5.
6.
These vouchers were funded in the amount of $50,018 during 2014.
7.
Capital Assets and Debt Administration
Capital Assets
Capital asset activity during the current fiscal year is as follows:
Long-Term Debt
As of December 31, 2014, the Authority had six long-term loans totaling $23,242,982. The long-term
loans are to fund remodeling costs for the Taft Hill Road office of the Villages, Ltd, to fund the
remodeling costs for the Authority's main offices on Mountain Avenue, to acquire land for future
development and for the purchase of four apartment complexes and a leasing office.
• Various renovation projects for the Villages on Cunningham Corner apartment complexes in the
amount of $229,738. Renovation projects included replacing decks, adding insulation and
replacing boiler systems.
• Purchase of scanners and monitors for all FCHA offices in the amount of $32,891.
State and Local (Colorado Division of Housing and the City of Fort Collins): Funds
provided through the City of Fort Collins for the TBRA CDDT program fund 12 vouchers for
clients in this program. This grant period was completed during 2014; however, the grant has
been extended with the City of Fort Collins for 2015 to the extent that funding is available.
Larimer County Housing Authority: Provides 100 rental vouchers for low-income clients.
The revenue source is HUD cost reimbursement for the vouchers. The Larimer County
Housing Authority is reported as a blended component unit of the Fort Collins Housing
Authority.
As of December 31, 2014, the Authority's net investment in capital assets was $3,820,752 (net of
accumulated depreciation and capital loans). This investment in capital assets includes land,
buildings, improvements, equipment, and computer software.
Additional information on the Authority's capital assets can be found in Note 1 on page 27 and Note
5 on page 32 of this report.
• Renovations to a public housing unit in the amount of $52,774. Renovations included new
windows and a new air conditioning system.
• Funding of pre-development costs related to the development of Village on Redwood. These
costs will be sold to Village on Redwood, LLLP once financing for the project is obtained.
HUD Grant (ROSS): Provides for the expenses of a public housing self-sufficiency
coordinator. This is a cost reimbursement grant with a current year annual award amount of
$72,550.
10
Fort Collins Housing Authority
Management's Discussion and Analysis
December 31, 2014
Loan activity during the current fiscal year is as follows:
• Principal payments made to First Bank on the Taft Hill Road note in the amount of $19,545.
Economic Outlook
Contact Information
• Principal payments made to First Bank on the Mountain Office remodel note in the amount of
$44,298.
• Principal payments made to the Seton Enablement Fund on the Redwood Land note in the
amount of $9,243.
• Principal payments made to First Bank on the VOCC note in the amount of $2,047,157. The
payment was related to the sale of Madison Avenue Apartments.
Mr. Duane Hopkins, Chief Financial Officer, may be contacted with questions concerning this report.
He can be reached at (970) 416-2993, or by mail at 1715 West Mountain Ave., Fort Collins, CO
80521. His e-mail address is dhopkins@fcgov.com.
• Principal payments made to the Colorado Department of Housing on the CHIF loan in the
amount of $706,513. The payments included regular monthly installments of $95,226 and a lump
sum payment of $611,287 related to the sale of Madison Avenue Apartments.
The Authority remains focused on development of new affordable housing units through both
acquisition and new build strategies.
Demand for affordable housing remains strong in the Fort Collins market. The rental market has
tightened considerably in recent years and rents continue to increase. The market has recently had
vacancy rates as low as 1%. Vacancy rates are expected to stay within the 2-4% range for the
foreseeable future. HCV funding utilization is expected to remain close to 100% going forward
based on current leasing levels and the large number of individuals on the waiting list. The level of
HCV HUD funding available, combined with rising rental rates, resulted in a 100% utilization of
housing assistance payment (HAP) funding and an 89% HCV leased utilization in 2014. Given the
lack of reserves held by the Authority, the level of funding received by HUD is expected to continue
to negatively affect the total number of families served through the HCV programs.
Additional information on the Authority's debt can be found in Note 6 on pages 34 through 39 of this
report.
See Notes to Financial Statements 11
Fort Collins Housing Authority
Statement of Net Position
December 31, 2014
Discretely
Presented
Primary Component
Government Units
Assets and Deferred Outflows
Current Assets
Cash and cash equivalents $ 3,293,355 $ 597,233
Restricted cash and cash equivalents 441,574 778,319
Accounts receivable
Grants 19,653 -
Tenants 19,720 23,303
Other 240,288 -
Accrued interest 69,407 -
Notes receivable - current portion 20,423 -
Prepaid expenses and other current assets 30,044 35,966
Inventory 56,847 -
Due from other agencies 4,943 -
Total Current Assets 4,196,254 1,434,821
Capital Assets
Non-depreciable 6,082,059 12,558,687
Depreciable, net 20,881,013 17,033,734
Total Capital Assets 26,963,072 29,592,421
Other Assets
Notes Receivable - net of current portion 5,216,991 -
Other assets, net - 97,498
Investment in tax credit partnerships 100,276 -
Investment in future developments 77,764 -
Total Other Assets 5,395,031 97,498
Total Assets 36,554,357 31,124,740
Deferred Outflows - -
Total Assets and Deferred Outflows $ 36,554,357 $ 31,124,740
See Notes to Financial Statements 12
Fort Collins Housing Authority
Statement of Net Position
December 31, 2014
Discretely
Presented
Primary Component
Government Units
Liabilities, Deferred Inflows and Net Position
Current Liabilities
Accounts payable $ 200,721 $ 1,281,729
Accrued liabilities 44,031 -
Accrued compensation 281,252 -
Accrued interest payable 62,268 127,717
Unearned revenues 16,141 -
Tenant security deposits payable 155,667 104,565
Due to related party - 125,735
Money held in escrow 176,675 -
Construction loan payable - 5,067,718
Notes and mortgages payable - current portion 133,526 22,600
Total Current Liabilities 1,070,281 6,730,064
Long-Term Liabilities
Notes and mortgages payable - net of current portion 23,109,456 18,465,777
Other long-term liabilities - 521,906
Total Long-Term Liabilities 23,109,456 18,987,683
Total Liabilities 24,179,737 25,717,747
Deferred Inflows - -
Net Position
Net investment in capital assets 3,820,752 4,173,679
Restricted 165,676 -
Unrestricted 8,388,192 1,233,314
Total Net Position 12,374,620 5,406,993
Total Liabilities, Deferred Inflows and Net Position $ 36,554,357 $ 31,124,740
See Notes to Financial Statements 13
Fort Collins Housing Authority
Statement of Net Position
December 31, 2013 (Comparative Totals Only)
Discretely
Presented
Primary Component
Government Units
Assets and Deferred Outflows
Current Assets
Cash and cash equivalents $ 2,188,084 $ 425,045
Restricted cash and cash equivalents 531,302 492,125
Accounts receivable
Grants 12,075 -
Tenants 18,113 3,656
Other 117,397 -
Accrued interest 56,110 -
Notes receivable - current portion 21,728 -
Prepaid expenses 1,877 30,036
Inventory 42,953 -
Due from other agencies 5,534 -
Due from related party - 3,277
Total Current Assets 2,995,173 954,139
Notes Receivable - net of current portion 5,010,775 -
Other Assets - 135,619
Capital Assets
Non-depreciable 7,239,352 2,500,437
Depreciable, net 24,272,170 11,060,401
Total Capital Assets 31,511,522 13,560,838
Total Assets 39,517,470 14,650,596
Deferred Outflows - -
Total Assets and Deferred Outflows $ 39,517,470 $ 14,650,596
See Notes to Financial Statements 14
Fort Collins Housing Authority
Statement of Net Position
December 31, 2013 (Comparative Totals Only)
Discretely
Presented
Primary Component
Government Units
Liabilities, Deferred Inflows and Net Position
Current Liabilities
Line of credit payable $ 700,000 $ -
Accounts payable 161,372 34,073
Accrued liabilities 37,280 -
Accrued compensation 254,059 -
Accrued interest payable 62,747 92,337
Unearned revenues 4,515 -
Tenant security deposits payable 154,382 58,678
Due to related party - 33,385
Money held in escrow 137,589 -
Notes and mortgages payable - current portion 149,502 25,218
Total Current Liabilities 1,661,446 243,691
Long-Term Liabilities
Notes and mortgages payable - net of current portion 25,909,508 9,966,382
Total Long-Term Liabilities 25,909,508 9,966,382
Total Liabilities 27,570,954 10,210,073
Deferred Inflows - -
Net Position
Net investment in capital assets 5,572,719 3,574,297
Restricted 124,601 -
Unrestricted 6,249,196 866,226
Total Net Position 11,946,516 4,440,523
Total Liabilities, Deferred Inflows and Net Position $ 39,517,470 $ 14,650,596
See Notes to Financial Statements 15
Fort Collins Housing Authority
Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2014
Discretely
Presented
Primary Component
Government Units
Operating Revenues
HUD PHA grants $ 9,790,666 $ -
Other grants 160,337 -
Rental income 3,700,398 1,158,251
Administration fees 1,059,745 -
Other 660,534 49,252
Total Operating Revenues 15,371,680 1,207,503
Operating Expenses
Housing assistance payments 8,319,806 -
Administrative salaries and benefits 2,634,909 163,897
Maintenance salaries and benefits 792,379 -
Other administrative 766,848 127,459
Regular and extraordinary maintenance 936,506 283,679
Depreciation 1,064,166 611,854
Utilities 353,235 100,577
Insurance 152,605 50,409
Payments in lieu of taxes 7,271 -
Other 80,638 -
Total Operating Expenses 15,108,363 1,337,875
Operating Income (Loss) 263,317 (130,372)
Non-Operating Revenues (Expenses)
Interest income 188,389 442
Interest expense (776,907) (428,923)
Gain on sale of capital assets 495,254 -
Total Non-Operating Revenues (Expenses) (93,264) (428,481)
Income (Loss) Before Contributions 170,053 (558,853)
HUD Capital Contributions 258,051 -
Change in Net Position 428,104 (558,853)
Net Position, Beginning of the Year 11,946,516 4,440,523
Capital Contributions - 1,528,126
Priority Distributions - (2,803)
Net Position, End of the Year $ 12,374,620 $ 5,406,993
See Notes to Financial Statements 16
Fort Collins Housing Authority
Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2013 (Comparative Totals Only)
Discretely
Presented
Primary Component
Government Units
Operating Revenues
HUD PHA grants $ 8,919,237 $ -
Other grants 984,787 -
Rental income 3,416,131 1,016,296
Administration fees 1,083,648 -
Other 224,370 10,489
Total Operating Revenues 14,628,173 1,026,785
Operating Expenses
Housing assistance payments 8,335,325 -
Administrative salaries and benefits 2,588,419 139,418
Maintenance salaries and benefits 669,202 -
Other administrative 651,125 133,980
Regular and extraordinary maintenance 840,797 236,038
Depreciation 1,055,276 573,943
Utilities 382,351 101,361
Insurance 140,568 46,089
Payments in lieu of taxes 3,072 -
Other 43,585 -
Total Operating Expenses 14,709,720 1,230,829
Operating Loss (81,547) (204,044)
Non-Operating Revenues (Expenses)
Interest income 164,195 496
Interest expense (923,213) (402,038)
Other financing costs (17,380) -
Total Non-Operating Revenues (Expenses) (776,398) (401,542)
Loss Before Contributions (857,945) (605,586)
HUD Capital Contributions 195,499 -
Change in Net Position (662,446) (605,586)
Net Position, Beginning of the Year 12,608,962 5,048,897
Priority Distributions - (2,788)
Net Position, End of the Year $ 11,946,516 $ 4,440,523
See Notes to Financial Statements 17
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2014
Primary
Government
Operating Activities
HUD PHA grants $ 9,783,088
Other grants 160,337
Receipts from tenants 3,711,702
Administration fees 1,060,336
Other income 537,643
Housing assistance payments (8,280,720)
Payments to employees (3,400,095)
Payments to suppliers (2,293,240)
Net Cash from Operating Activities 1,279,051
Capital and Related Financing Activities
Principal payments on long-term debt (2,816,028)
Payments on line of credit (700,000)
HUD capital contributions 258,051
Proceeds from sale of capital assets 4,375,723
Interest paid on long-term debt (777,386)
Acquisition of capital assets (396,185)
Net Cash used for Capital and Related Financing Activities (55,825)
Investing Activities
Receipts on notes receivable 77,853
Note receivable advance to related party (110,319)
Interest income 2,647
Investment in tax credit partnerships (100,100)
Investment in future development (77,764)
Net Cash used for Investing Activities (207,683)
Net Change in Cash and Equivalents 1,015,543
Cash and Equivalents, Beginning of Year 2,719,386
Cash and Equivalents, End of Year $ 3,734,929
See Notes to Financial Statements 18
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2014
Primary
Government
Reconciliation of Cash and Cash Equivalents
Cash $ 3,293,355
Restricted Cash 441,574
Total Cash and Cash Equivalents $ 3,734,929
Reconciliation of Change in Net Position to Net Cash
Provided By Operating Activities
Operating Income $ 263,317
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation 1,064,166
Changes in assets and liabilities
(Increase) decrease in assets:
Receivables (132,076)
Inventory (13,894)
Prepaid expenses (28,343)
Due from other agencies 591
Increase (decrease) in liabilities:
Accounts payable 39,349
Tenant security deposits payable 1,285
Money held in escrow 39,086
Accrued compensation 27,193
Accrued liabilities 6,751
Unearned revenue 11,626
Cash Flows from Operating Activities $ 1,279,051
See Notes to Financial Statements 19
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2013 (Comparative Totals Only)
Primary
Government
Operating Activities
HUD PHA grants $ 8,918,466
Other grants 984,388
Receipts from tenants 3,414,472
Administration fees 1,078,114
Developer fee income 32,364
Other income 484,634
Housing assistance payments (8,303,483)
Payments to employees (3,218,614)
Payments to suppliers (1,824,470)
Net Cash from Operating Activities 1,565,871
Capital and Related Financing Activities
Principal payments on long-term debt (2,690,673)
Proceeds from line of credit, net of payments 414,788
Proceeds from long-term debt borrowings 2,648,757
HUD capital contributions 195,499
Interest paid on long-term debt (849,738)
Other financing costs paid (17,380)
Acquisition of capital assets (814,017)
Net Cash used for Capital and Related Financing Activities (1,112,764)
Investing Activities
Receipts on notes receivable 18,627
Note receivable advance to related party (857,000)
Interest income 53,983
Net Cash used for Investing Activities (784,390)
Net Change in Cash and Equivalents (331,283)
Cash and Equivalents, Beginning of Year 3,050,669
Cash and Equivalents, End of Year $ 2,719,386
See Notes to Financial Statements 20
Fort Collins Housing Authority
Statement of Cash Flows
Year Ended December 31, 2013 (Comparative Totals Only)
Primary
Government
Reconciliation of Cash and Cash Equivalents
Cash $ 2,188,084
Restricted Cash 531,302
Total Cash and Cash Equivalents $ 2,719,386
Reconciliation of Change in Net Position to Net Cash
Used For Operating Activities
Operating Loss $ (81,547)
Adjustments to reconcile operating loss
to net cash from operating activities
Depreciation 1,055,276
Changes in assets and liabilities
(Increase) decrease in assets:
Receivables 279,709
Inventory (14,800)
Prepaid expenses 144,783
Due from other agencies (5,534)
Increase (decrease) in liabilities:
Accounts payable 89,429
Tenant security deposits payable 7,998
Money held in escrow 31,842
Accrued compensation 39,007
Accrued liabilities 17,616
Unearned revenue 2,092
Cash Flows from Operating Activities $ 1,565,871
See Notes to Financial Statements 21
Fort Collins Housing Authority
Combining Statement of Net Position - Discretely Presented Component Units
December 31, 2014
Village on Village on Redtail Village on
Elizabeth Stanford Ponds PSH Plum Total
Assets
Current Assets
Cash $ 113,169 $ 323,819 $ 108,571 $ 51,674 $ 597,233
Restricted cash 219,674 317,430 63,117 178,098 778,319
Accounts receivable
Tenants 3,043 5,615 - 14,645 23,303
Prepaid expenses - 12,573 - 23,393 35,966
Due from related party - - - - -
Total Current Assets 335,886 659,437 171,688 267,810 1,434,821
Other Assets 28,859 68,639 - - 97,498
Capital Assets
Non-depreciable 653,377 998,437 8,417,724 2,489,149 12,558,687
Depreciable, net 3,570,205 6,927,579 - 6,535,950 17,033,734
Total Capital Assets 4,223,582 7,926,016 8,417,724 9,025,099 29,592,421
Total Assets $ 4,588,327 $ 8,654,092 $ 8,589,412 $ 9,292,909 $ 31,124,740
See Notes to Financial Statements 22
Fort Collins Housing Authority
Combining Statement of Net Position - Discretely Presented Component Units
December 31, 2014
Village on Village on Redtail Village on
Elizabeth Stanford Ponds PSH Plum Total
Liabilities and Net Position
Current Liabilities
Accounts payable $ 22,187 $ 13,289 $ 1,219,286 $ 26,967 $ 1,281,729
Accrued interest
payable 30,972 73,007 - 23,738 127,717
Tenant security
deposits payable 20,892 41,228 - 42,445 104,565
Due to related party 150 3,504 121,455 626 125,735
Construction loan - - 5,067,718 - 5,067,718
Notes and mortgages
mortgages payable
- current portion 13,908 8,692 - - 22,600
Total Current Liabilities 88,109 139,720 6,408,459 93,776 6,730,064
Long-Term Liabilities
Notes and mortgages
payable - net of
current portion 3,851,069 5,314,154 1,776,895 7,523,659 18,465,777
Other long-term liabilities - - - 521,906 521,906
Total Long-Term Liabilities 3,851,069 5,314,154 1,776,895 8,045,565 18,987,683
Total Liabilities 3,939,178 5,453,874 8,185,354 8,139,341 25,717,747
Net Position
Net investment in
capital assets 358,605 2,603,170 232,370 979,534 4,173,679
Unrestricted 290,544 597,048 171,688 174,034 1,233,314
Total Net Position 649,149 3,200,218 404,058 1,153,568 5,406,993
Total Liabilities and
Net Position $ 4,588,327 $ 8,654,092 $ 8,589,412 $ 9,292,909 $ 31,124,740
See Notes to Financial Statements 23
Fort Collins Housing Authority
Combining Statement of Revenues, Expenses and Changes in Net Position -
Discretely Presented Component Units
December 31, 2014
Village on Village on Redtail Village on
Elizabeth Stanford Ponds PSH Plum Total
Operating Revenues
Rental income $ 384,455 $ 618,564 $ - $ 155,232 $ 1,158,251
Other 9,463 21,725 10,949 7,115 49,252
Total Operating Revenues 393,918 640,289 10,949 162,347 1,207,503
Operating Expenses
Administrative salaries
and benefits 53,294 104,134 - 6,469 163,897
Other administrative 44,354 66,992 391 15,722 127,459
Regular and extraordinary
maintenance 104,683 151,625 - 27,371 283,679
Depreciation and
amortization 223,012 348,246 - 40,596 611,854
Utilities 43,968 46,635 - 9,974 100,577
Insurance 16,877 28,853 - 4,679 50,409
Total Operating Expenses 486,188 746,485 391 104,811 1,337,875
Operating Income (Loss) (92,270) (106,196) 10,558 57,536 (130,372)
Non-Operating Revenues (Expenses)
Interest income 53 382 - 7 442
Interest expense (175,760) (221,344) - (31,819) (428,923)
Total Non-Operating
Revenues (Expenses) (175,707) (220,962) - (31,812) (428,481)
Change in Net Position (267,977) (327,158) 10,558 25,724 (558,853)
Net Position, Beginning
of the Year 919,929 3,527,376 (6,782) - 4,440,523
Capital Contributions - - 400,282 1,127,844 1,528,126
Priority Distributions (2,803) - - - (2,803)
Net Position,
End of the Year $ 649,149 $ 3,200,218 $ 404,058 $ 1,153,568 $ 5,406,993
24
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Note 1 - Nature of Operations and Significant Accounting Policies
General
The Authority is governed by a seven-member Board of Commissioners.
Reporting Entity
• The organization is legally separated (can sue and be sued in their own name)
• The Authority holds the corporate powers of the organization
• The Authority appoints a voting majority of the organization’s board
• The Authority is able to impose its will on the organization
• The organization has the potential to impose a financial benefit/burden on the Authority
• There is fiscal dependency by the organization on the Authority
Blended Component Units
The Fort Collins Housing Authority is a corporate body created in May 1971 and uses available
federal, state, and local resources to serve the residents of Fort Collins, Colorado by upgrading and
maintaining the existing housing stock, encouraging the construction of new housing affordable to
low and moderate income households, and providing low and moderate income families and senior
households with decent, safe, and affordable rental housing opportunities. The Authority owns and
operates 154 units of family housing and administers 894 Section 8 housing choice vouchers, 115
Section 8 VASH vouchers and 50 Family Unification Program vouchers. The Authority also owns and
operates 285 apartment units in Fort Collins. The Authority also owned and operated an additional 59
apartment units located in Loveland; those units were sold in December.
The Authority’s financial statements include the accounts of all Authority operations. The criteria for
including organizations as component units within the Authority reporting entity, as set forth in
Section 2100 of the Governmental Accounting Standards Board’s (GASB) Codification of
Government Accounting and Financial Reporting Standards, include whether:
Included within the financial reporting entity of the Authority as a blended component unit is the
Larimer County Housing Authority (LCHA). The purpose of LCHA is to provide safe and sanitary
accommodations to the low and moderate-income residents of the County of Larimer. Over the past
several years, the Authority has maintained a contractual relationship with LCHA for the
administration of its housing activities. However, in January 1997, the Larimer County Board of
Supervisors assigned all interests in LCHA to the Authority, as LCHA was deemed immaterial with
respect to the overall functions of the County. Thus, despite being a legally separate entity and
receiving funds directly from the Department of Housing and Urban Development, LCHA has been
accounted for as a blended component unit of the Authority. Accordingly, the balances and
transactions of this component unit are reported within the proprietary funds of the Authority.
25
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
The following significant factors were considered in making this determination:
• The members of the Authority’s Board also act as the governing body of LCHA
• LCHA's operations are fully the responsibility of the management of the Authority
Discretely Presented Component Units
Village on Elizabeth, LLLP (VOE) – the general partner of this partnership, Village on Elizabeth, LLC,
is wholly owned by the Fort Collins Housing Authority. Village on Elizabeth, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
Village on Stanford, LLLP (VOS) – the general partner of this partnership, Village on Stanford, LLC,
is wholly owned by the Fort Collins Housing Authority. Village on Stanford, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
Also included within the financial reporting entity of the Authority as blended component units are
Village on Elizabeth, LLC, Village on Stanford, LLC, VOS Development, LLC, Redtail Ponds
Permanent Supportive Housing, LLC, Redtail Ponds Permanent Supportive Housing Development,
LLC, Village on Plum, LLC, Village on Plum Development, LLC and the Housing Catalyst, LLC, which
are single-member LLC’s. Separate financial statements for the component units are not issued.
Village on Elizabeth, LLC is the general partner in Village on Elizabeth, LLLP, Village on Stanford,
LLC is the general partner in Village on Stanford, LLLP, Redtail Ponds Permanent Supportive
Housing, LLC is the general partner in Redtail Ponds Permanent Supportive Housing, LLLP and
Village on Plum, LLC is the general partner in Village on Plum, LLLP which are discretely presented
component units and are described below.
The component unit columns in the combined financial statements include the financial data of the
Authority’s three discretely presented component units These units are reported in separate columns
to emphasize that they are legally separate from the Authority.
VOS Development, LLC was formed to be the developer in Village on Stanford, LLC, Redtail Ponds
Permanent Supportive Housing Development, LLC was formed to be the developer in Permanent
Supportive Housing, LLC and Village on Plum Development, LLC was formed to be the developer in
Village on Plum, LLLP. Housing Catalyst, LLC was formed to be an entity that will be used, as
needed, to participate as the partner in future development projects for the Authority when desired to
facilitate project financing. Housing Catalyst, LLC is the administrative general partner in
Provincetowne Green LLLP, an 85 unit low income housing tax credit project (Note 9).
26
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Fund Accounting
Basis of Accounting and Measurement Focus
The financial statements of the discretely presented component units are presented in the Authority’s
basic financial statements. Complete financial statements of the individual component units can be
obtained from the Chief Financial Officer, Fort Collins Housing Authority, 1715 W. Mountain Ave.,
Fort Collins, CO 80521.
The accounts of the Authority are organized on the basis of funds, each of which is considered a
separate accounting entity. The operations of each fund are accounted for with a separate set of self-
balancing accounts that comprise its assets, liabilities, net position, revenues, and expenses. The
Authority classifies its funds as proprietary.
The Department of Housing and Urban Development Real Estate Assessment Center (REAC)
assesses the financial condition of Public Housing Authorities (PHA’s). To uniformly and consistently
assess the PHA’s REAC requires that PHA’s financial statements conform to Generally Accepted
Accounting Principles (GAAP).
The accounting and financial reporting treatment applied to a fund is determined by its measurement
focus. All proprietary funds are accounted for using the economic resources measurement focus.
With this measurement focus, all assets and liabilities associated with the operation of these funds
are included on the statement of net position. Net position is segregated into invested in capital
assets, restricted and unrestricted components. The statements of revenues, expenses and changes
in fund net position present increases (e.g., revenues) and decreases (e.g., expenses) in total net
position. When both restricted and unrestricted net position is available for use, generally it is the
Authority’s policy to use restricted net position first, then unrestricted net position as needed. The
statements of cash flows present the cash flows for operating activities, investing activities, capital
and related financing activities and non-capital financing activities.
Village on Plum, LLLP (VOP) – the general partner of this partnership, Village on Plum, LLC, is
wholly owned by the Fort Collins Housing Authority. Village on Plum, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
Redtail Ponds Permanent Supportive Housing, LLLP (Redtail Ponds PSH) – the general partner of
this partnership, Redtail Ponds Permanent Supportive Housing, LLC, is wholly owned by the Fort
Collins Housing Authority. Redtail Ponds Permanent Supportive Housing, LLC has an ownership
percentage of 0.01%. As the general partner, the Authority has the day to day management
responsibilities of the partnership.
27
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Cash and Cash Equivalents
Inventory
Inventories are valued at the lower of cost or market using the first-in/first-out method.
Capital Assets
Buildings and Improvements 15 - 30 Years
Furniture and Equipment 3 - 15 Years
Investment in Tax Credit Partnerships and Future Developments
Operating Revenues and Expenses
The Authority's cash deposits can only be invested in HUD approved investments: direct obligations
of the Federal Government backed by the full faith and credit of the United States, obligations of
government agencies, securities of government sponsored agencies, demand and savings deposits,
time deposits, repurchase agreements, and other securities approved by HUD.
For the purpose of the statement of cash flows, the Authority considers cash deposits and highly
liquid investments with a maturity of three months or less when purchased to be cash equivalents.
Certificates of deposit are also considered to be cash equivalents due to their highly liquid nature and
insignificant risk of change in value due to changes in interest rates. The Authority uses the
certificate of deposits as part of the entities cash management.
Land, buildings and improvements, and equipment are recorded at cost, including indirect
development costs. The Authority uses a capitalization threshold of $5,000. Donated fixed assets are
valued at their estimated fair value on the date donated. The costs of normal maintenance and
repairs that do not add to the value of the asset or materially extend lives are not capitalized.
Depreciation is computed using the straight-line method over the estimated useful lives of the assets
as follows:
Investments in tax credit partnerships are accounted for under the equity method. Investments are
stated at cost, plus (minus) the Authority’s equity in net earnings (losses) since acquisition, less any
distributions received.
The Authority considers all revenues and expenses (including HUD intergovernmental revenues and
expenses) as operating items with the exception of interest expense, interest revenue, and gain/loss
on disposal of capital assets which are considered non-operating for financial reporting purposes.
Investments in future developments represents costs incurred by the Authority for future
developments and are recorded at cost until a project is established.
28
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Fraud Recovery
Restricted and Unrestricted Resources
Accumulated Unpaid Vacation Leave
Unearned Revenues
Components of Net Position
Components of net position include the following:
Business and Credit Risk
HUD requires the Authority to account for monies recovered from tenants who committed fraud or
misrepresentation in the application process for rent calculations and now owe additional rent for
prior periods or retroactive rent as fraud recovery. The monies recovered are shared by HUD and the
local authority.
The Authority provides housing on account to clients which are located primarily in Fort Collins,
Colorado.
• Unrestricted Net Position – Consists of assets and deferred outflows less related liabilities and
deferred inflows reported in the basic statement of net position that are not subject to restraints on
their use.
The Authority applies restricted resources first when an expense is incurred for purposes for which
both restricted and unrestricted net position is available.
Accumulated unpaid vacation leave is accrued in the period incurred. Employees are permitted to
accumulate a limited amount of vacation benefits. Upon separation or termination from the Authority,
an employee will not be paid time in excess of 240 hours.
As of December 31, 2014, unearned revenue consisted of $16,141 of prepaid rent from tenants.
• Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation
and reduced by outstanding balances of debt issued to finance the acquisition, improvement, or
construction of those assets.
• Restricted Net Position – Consists of assets and deferred outflows less related liabilities and
deferred inflows reported in the basic statement of net position that are subject to restraints on
their use by HUD.
29
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Budgetary
Accounting Estimates
Comparative Totals
Note 2 - Deposits and Investments
Primary Government
Deposits
Custodial Credit Risk
The Authority’s annual budgets are the annual contracts, which are with, and approved by, HUD. No
budget to actual statements are presented in this report, as housing authorities are not legally
required to adopt a budget under the Local Government Budget Law of Colorado.
The preparation of financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.
The Colorado Public Deposit Protection Act (PDPA) requires that all units of local government
deposit cash in eligible public depositories. Eligibility is determined by state regulations. Amounts on
deposit in excess of federal insurance levels must be collateralized by eligible collateral as
determined by the PDPA. The institution is allowed to create a single collateral pool for all public
funds held. The pool is to be maintained by another institution or held in trust for all the uninsured
public deposits as a group. The market value of the collateral must be at equal to 102% of the
uninsured deposits. The general depository agreement required by annual contract with HUD has
additional collateral requirements, which the Authority met in 2014.
The financial statements and related footnotes include certain prior year summarized comparative
information in total. Such information does not include sufficient detail to constitute a presentation in
conformity with generally accepted accounting principles. Accordingly, such information should be
read in conjunction with the Authority's financial statements for the year ended December 31, 2013,
from which the summarized information was derived.
Custodial credit risk is the risk that, in the event of a bank failure, the Authority’s deposits may not be
returned to it. As of December 31, 2014, the Authority's deposits were not exposed to custodial credit
risk, as all deposits were insured by the Federal Deposit Insurance Commission (FDIC) and
collateralized in accordance with PDPA.
30
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Interest Rate Risk
Investments
• Obligations of the United States and certain U.S. government agency securities
• Insured Money Market Deposit Accounts
• Municipal Depository Fund
• Super NOW Accounts
• Certificates of Deposit
• Repurchase Agreements
• Sweep Accounts
• Separate Trading of Registered Interest and Principal of Securities (STRIPS)
• Mutual Funds that meet HUD criteria
Discretely Presented Component Units
Village on Elizabeth
Custodial Credit Risk
At December 31, 2014, the Authority’s carrying amount of deposits was $3,733,940 and the bank
balance was $3,787,129. Of the bank balances, $250,000 was covered by Federal Depository
Insurance. Of the remaining balances for 2014, $3,537,129 was collateralized with securities held by
a pledging financial institution’s agent in the government’s name.
Interest rate risk is the risk that changes in interest rates of certificates of deposit will adversely affect
the fair value of investments. All certificates of deposit held by the Authority as of December 31,
2014, mature within 1 year.
The Authority’s investment policy allows for investments to be solely in securities approved by the
HUD. Authorized investment instruments are as follows:
The Authority’s deposit and investment policy specifies that all investments are to be adequately
collateralized if deposits and investments exceed federal insurance limits. The policy does not
formally address credit risk, interest rate risk, or foreign currency risk associated with investments.
Custodial credit risk is the risk that, in the event of a bank failure, VOE’s deposits may not be
returned to it. As of December 31, 2014, VOE's deposits were not exposed to custodial credit risk, as
all deposits were insured by the FDIC.
31
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Village on Stanford
Custodial Credit Risk
Redtail Ponds PSH
Custodial Credit Risk
Village on Plum
Custodial Credit Risk
Note 3 - Restricted Cash
Note 4 - Notes Receivable
$ 2,813,280
1,293,530
Custodial credit risk is the risk that, in the event of a bank failure, Redtail Pond PSH’s deposits may
not be returned to it. As of December 31, 2014, Redtail Ponds PSH's deposits were not exposed to
custodial credit risk, as all deposits were insured by the FDIC.
Restricted cash consists of cash and cash equivalents balances restricted for use in the Housing
Choice Voucher program, held in escrow in order to comply with HUD requirements for the home
ownership program and held for tenant security deposits.
Custodial credit risk is the risk that, in the event of a bank failure, VOS’s deposits may not be
returned to it. As of December 31, 2014, VOS's carrying amount of deposits and bank balance was
$641,149. Of the bank balances, $250,000 was covered by Federal Depository Insurance. The
remaining balance of $391,149 was not insured and is exposed to custodial credit risk. Management
does not believe that the deposits are exposed to a significant level of risk.
Custodial credit risk is the risk that, in the event of a bank failure, VOP’s deposits may not be
returned to it. As of December 31, 2014, VOP's deposits were not exposed to custodial credit risk, as
all deposits were insured by the FDIC.
Village on Elizabeth, LLLP - Note receivables with stated interest
rates of 3.50% - 5.31% per annum, yearly payments to the
extent of available cash flow with the entire balance due
December 2037 and collateralized by real property located at
2209 - 2217 West Elizabeth, Fort Collins, Colorado.
Village on Stanford, LLLP - Note receivable with a stated interest
rate of 3.57% per annum, yearly payments to the extent of
available cash flow with the entire balance due December 2037
and collateralized by a deed of trust, security agreement,
financing statement and assignment of rents and revenues.
32
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
100,661
967,319
Other notes receivable 20,710
5,195,500
Long-term accrued interest added to principal balance 41,914
5,237,414
Less current portion (20,423)
$ 5,216,991
Note 5 - Capital Assets
Primary Government
Balance Balance
01/01/14 Additions Deletions 12/31/14
Non-Depreciable
Land $ 6,472,059 $ - $ (390,000) $ 6,082,059
Construction in progress 767,293 286,671 (1,053,964) -
7,239,352 286,671 (1,443,964) 6,082,059
Depreciable
Buildings and improvements 29,504,822 282,512 (2,853,784) 26,933,550
Furniture and equipment 1,170,664 32,891 - 1,203,555
Total depreciable capital assets 30,675,486 315,403 (2,853,784) 28,137,105
Less: Accumulated Depreciation
Buildings and improvements (5,469,316) (1,024,864) 211,390 (6,282,790)
Furniture and equipment (934,000) (39,302) - (973,302)
Total accumulated depreciation (6,403,316) (1,064,166) 211,390 (7,256,092)
Net Depreciable Capital Assets 24,272,170 (748,763) (2,642,394) 20,881,013
Total $ 31,511,522 $ (462,092) $ (4,086,358) $ 26,963,072
Villages, LTD - Note receivable with a stated interest rate of
4.80% per annum, monthly payments of $2,079, including
principal and interest with the entire balance due October 2020
and collateralized by a deed of trust.
The following is a summary of capital assets for the year ended December 31, 2014:
Redtail Ponds Permanent Supportive Housing, LLLP - Notes
receivable with stated interest rates ranging from 2.50% to
4.00% per annum, yearly payments to the extent of available
cash flow with the entire balance due January 2045 and
collateralized by a deed of trust and an agreement of restrictive
covenants on the property.
33
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Discretely Presented Component Units
Village on Elizabeth
Balance Balance
01/01/14 Additions Deletions 12/31/14
Non-Depreciable
Land $ 640,000 $ - $ - $ 640,000
Construction in progress - 13,377 - 13,377
640,000 13,377 - 653,377
Depreciable
Buildings and improvements 4,598,579 - - 4,598,579
Furniture and equipment 562,755 - - 562,755
Total depreciable capital assets 5,161,334 - - 5,161,334
Total accumulated depreciation (1,371,173) (219,956) - (1,591,129)
Net Depreciable Capital Assets 3,790,161 (219,956) - 3,570,205
Total $ 4,430,161 $ (206,579) $ - $ 4,223,582
Village on Stanford
Balance Balance
01/01/14 Additions Deletions 12/31/14
Non-Depreciable
Land $ 998,437 $ - $ - $ 998,437
Depreciable
Buildings and improvements 8,529,536 - - 8,529,536
Land improvements 66,615 - - 66,615
Furniture and equipment 195,271 - - 195,271
Total depreciable capital assets 8,791,422 - - 8,791,422
Total accumulated depreciation (1,521,182) (342,661) - (1,863,843)
Net Depreciable Capital Assets 7,270,240 (342,661) - 6,927,579
Total $ 8,268,677 $ (342,661) $ - $ 7,926,016
Redtail Ponds PSH
Balance Balance
01/01/14 Additions Deletions 12/31/14
Non-Depreciable
Land $ 862,000 $ - $ - $ 862,000
Construction in progress - 7,555,724 - 7,555,724
Total $ 862,000 $ 7,555,724 $ - $ 8,417,724
34
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Village on Plum
Balance Balance
01/01/14 Additions Deletions 12/31/14
Non-Depreciable
Land $ - $ 543,454 $ - $ 543,454
Construction in progress - 1,945,695 - 1,945,695
- 2,489,149 - 2,489,149
Depreciable
Buildings and improvements - 6,576,546 - 6,576,546
Total depreciable capital assets - 6,576,546 - 6,576,546
Less: Accumulated Depreciation
Buildings and improvements - (40,596) - (40,596)
Total accumulated depreciation - (40,596) - (40,596)
Net Depreciable Capital Assets - 6,535,950 - 6,535,950
Total $ - $ 9,025,099 $ - $ 9,025,099
Note 6 - Long-Term Debt
During the year ended December 31, 2014, the following changes occurred in long-term debt:
Primary Government
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 26,059,010 $ 10,728 $ (2,826,756) $ 23,242,982 $ 133,526
Discretely Presented Component Units
Village on Elizabeth
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 3,801,096 $ 77,004 $ (13,123) $ 3,864,977 $ 13,908
Village on Stanford
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 5,323,445 $ 11,868 $ (12,467) $ 5,322,846 $ 8,692
35
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Redtail Ponds PSH
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ 867,059 $ 909,836 $ - $ 1,776,895 $ -
Village on Plum
Balance Balance Due Within
January 1 Increases Decreases December 31 One Year
Notes Payable $ - $ 7,523,659 $ - $ 7,523,659 $ -
Notes payable as of December 31, 2014, consisted of the following:
Primary Government
$ 100,662
218,285
704,773
19,182,751
1,072,811
VOCC - Note payable due to First Bank with a variable interest rate equal to the
greater of Wall Street Journal Prime Rate or 3.25% per annum, due in monthly
interest only installments with a maturity date of January 2016 and secured by
deeds of trust and all deposit accounts held by First Bank Holding Company.
VOCC - Note payable due to the Villages, LTD with a stated interest rate of
1.00% per annum, due in annual interest only installments from cash flow or
proceeds of capital transactions with the entire balance due at the maturity date
of December 2042 and secured by a deed of trust.
Taft Hill Office Remodel - Note payable due to First Bank with a stated interest
rate of 4.80% per annum, due in monthly principal and interest installments of
$2,087 with a maturity date of October 2020 and secured by a deed of trust and
all deposit accounts held by First Bank Holding Company.
Mountain Office Remodel - Note payable due to First Bank with a stated
interest rate of 3.00% per annum, due in monthly principal and interest
installments of $5,534 with a maturity date of October 2027 and secured by a
deed of trust and all deposit accounts held by First Bank Holding Company.
Redwood Land Acquisition - Note payable due to the Seton Enablement Fund
with a stated interest rate of 3.00% per annum, due in semi-annual principal and
interest installments of $8,000 with the remaining principal balance due in a
balloon payment at the maturity date of November 2017 and secured by a deed
of trust.
36
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
1,942,244
23,221,526
Long-term accrued interest added to principal balance 21,456
$ 23,242,982
Discretely Presented Component Units
Village on Elizabeth
$ 852,792
198,905
2,288,140
3,339,837
Long-term accrued interest due to FCHA added to principal balance 525,140
$ 3,864,977
Village on Stanford
$ 1,830,545
1,293,530
VOCC - Note payable due to the Colorado Division of Housing with a stated
interest rate of 1.00% per annum, due in monthly principal and interest
installments of $6,433 with the remaining principal balance due at the maturity
date of December 2016 and secured by a deed of trust.
Mortgage notes payable due to the Fort Collins Housing Authority (FCHA) with
stated interest rates of 3.57% per annum, due in annual installments from cash
flow or proceeds of capital transactions with a maturity date of December 2038
and secured by a mortgage on substantially all assets and an assignment of
rent.
Mortgage note payable with a stated interest rate of 7.20% per annum, due in
monthly principal and interest installments of $5,876 with a maturity date of June
2026 and secured by a mortgage on substantially all assets and an assignment
of rent.
Mortgage note payable with a stated interest rate of 3.00% per annum, due in
monthly principal and interest installments of $866 with a maturity date of June
2026 and secured by a mortgage on all property and equipment and an
assignment of rent.
Mortgage notes payable due to the Fort Collins Housing Authority (FCHA) with
stated interest rates ranging from 3.50% to 5.31% per annum, due in annual
installments from cash flow or proceeds of capital transactions with a maturity
date of December 2037 and secured by a mortgage on substantially all assets
and an assignment of rent.
Mortgage note payable with a stated interest rate of 7.85% per annum, due in
monthly principal and interest installments of $12,889 with a maturity date of
December 2028 and secured by a mortgage on substantially all assets and an
assignment of rent.
37
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
759,706
219,534
230,466
989,065
$ 5,322,846
Redtail Ponds PSH
$ 967,319
760,000
1,727,319
Long-term accrued interest added to principal balance 49,576
$ 1,776,895
Village on Plum
$ 3,465,438
Mortgage note payable due to Villages, LTD with a stated interest rate of 4.00%
per annum, due in annual installments from cash flow or proceeds of capital
transactions with a maturity date of January 2045 and secured by a mortgage on
substantially all assets and an assignment of rent.
Mortgage notes payable due to the Fort Collins Housing Authority (FCHA) with
stated interest rates ranging from 2.50% to 4.00% per annum, due in annual
installments from cash flow or proceeds of capital transactions with a maturity
date of January 2045 and secured by a deed of trust and an Agreement of
Restrictive Covenants Affecting Real Property.
Mortgage note payable due to Villages, LTD with a stated interest rate of 3.57%
per annum, due in annual installments from cash flow or proceeds of capital
transactions with a maturity date of December 2038 and secured by a mortgage
on substantially all assets and an assignment of rent.
CDBG mortgage note payable with a stated interest rate of 0.00% per annum,
due in annual installments from cash flow or proceeds of capital transactions
with a maturity date of December 2038 and secured by a mortgage on
substantially all assets and an assignment of rent.
CDBG mortgage note payable with a stated interest rate of 0.00% per annum,
due in annual installments from cash flow or proceeds of capital transactions
with a maturity date of December 2038 and secured by a mortgage on
substantially all assets and an assignment of rent.
Tax Credit Assistance Program (TCAP) loan payable from the Colorado Housing
and Finance Authority with a stated interest rate of 0.00% per annum, with the
principal balance due on the maturity date of February 2029 and secured by a
second mortgage on substantially all assets and an assignment of rent.
Construction loan payable with a stated interest rate of 3.85% per annum and
secured by real property. The loan will convert to permanent financing at the
completion of construction with an anticipated principal balance of $6,100,000
and maturity date of October 2034.
38
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
4,058,221
$ 7,523,659
Primary Government
Principal Interest Total
2015 $ 133,526 $ 685,192 $ 818,718
2016 21,145,231 58,385 21,203,616
2017 270,001 36,930 306,931
2018 73,668 28,418 102,086
2019 63,914 25,821 89,735
2020-2024 282,225 103,453 385,678
2025-2029 180,150 61,743 241,893
2030-2034 - 53,641 53,641
2035-2039 - 53,641 53,641
2040-2044 1,094,267 32,183 1,126,450
Total $ 23,242,982 $ 1,139,407 $ 24,382,389
Discretely Presented Component Units
Village on Elizabeth
Principal Interest Total
2015 $ 13,905 $ 67,785 $ 81,690
2016 14,745 67,000 81,745
2017 15,639 66,162 81,801
2018 16,594 65,268 81,862
2019 17,613 63,295 80,908
2020-2024 105,955 298,583 404,538
2025-2029 850,308 82,707 933,015
2030-2034 - - -
2035-2039 2,830,218 - 2,830,218
Total $ 3,864,977 $ 710,800 $ 4,575,777
The estimated debt requirements to maturity for the year ending December 31, 2014 are as follows:
Mortgage notes payable due to Villages, LTD with stated interest rates of 3.50%
per annum, due in annual installments from cash flow or proceeds of capital
transactions with maturity dates of October 2044 and secured by a mortgage on
substantially all assets and an assignment of rent.
39
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Village on Stanford
Principal Interest Total
2015 $ 9,317 $ 146,058 $ 155,375
2016 9,665 145,347 155,012
2017 10,884 144,999 155,883
2018 11,783 142,881 154,664
2019 12,755 141,909 154,664
2020-2024 80,462 692,857 773,319
2025-2029 2,684,744 526,527 3,211,271
2030-2034 - - -
2035-2039 2,503,236 - 2,503,236
Total $ 5,322,846 $ 1,940,578 $ 7,263,424
Redtail Ponds PSH
Principal Interest Total
2015 $ - $ 62,383 $ 62,383
2016 - 62,383 62,383
2017 - 62,383 62,383
2018 - 62,383 62,383
2019 - 62,383 62,383
2020-2024 - 311,915 311,915
2025-2029 - 311,915 311,915
2030-2034 - 311,915 311,915
2035-2039 - 311,915 311,915
2040-2044 - 311,915 311,915
2045-2049 1,776,895 62,383 1,839,278
Total $ 1,776,895 $ 1,933,873 $ 3,710,768
Village on Plum
Principal Interest Total
2015 $ - $ 142,038 $ 142,038
2016 - 142,038 142,038
2017 - 142,038 142,038
2018 - 142,038 142,038
2019 - 142,038 142,038
2020-2024 - 710,190 710,190
2025-2029 - 710,190 710,190
2030-2034 3,465,438 710,190 4,175,628
2035-2039 - 710,190 710,190
2040-2044 4,058,221 674,681 4,732,902
Total $ 7,523,659 $ 4,225,631 $ 11,749,290
40
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Note 7 - Construction Loan Payable
Note 8 - Restricted Net Position
Note 9 - Annual Contributions Contract
Note 10 - Guarantees
Note 11 - Related Party Transactions
Management Fees and Reimbursement of Expenses
The Authority is also a general partner in Village on Elizabeth, LLLP, a 48 unit low income housing
tax credit project. The Authority provides management services to the project. Under the
management agreement, the Authority is to be paid management fees totaling 8% of gross
collections on the project. During the year ended December 31, 2014, the Authority received $30,756
in property management fees.
As of December 31, 2014, restricted net position consisted of $165,676 in Section 8 HAP received
but not yet paid to eligible individuals.
The Authority has an annual contributions contract for Section 8 HAP and adjustments vary based on
requirements. The maximum contract was $8,241,287 for the year ended December 31, 2014.
The Authority is an administrative general partner in Provincetowne Green LLLP, an 85 unit low
income housing tax credit project. The Authority has entered into a guaranty agreement with
Provincetowne Green LLLP, in which the Authority has guaranteed obligations of the project up to
$1,400,000. The guarantee is in effect until the Stabilization Date of the project, as defined by the
agreement. The Stabilization Date was expected to be achieved in calendar year 2013; however,
during the year it was discovered that there were several possible construction defects regarding the
foundations of the buildings. The guarantee on the project remains in effect while the possible
construction defects are examined and the project prepares for potential litigation. At this time, the
Authority is not expected to have to perform on the guarantee.
Redtail Ponds Permanent Supportive Housing, LLLP has a short-term construction loan payable with
US Bank with a variable interest rate based on the 30-day LIBOR rate plus 2.25%, currently at
2.4375% per annum, and interest only payments during the construction period. The loan has a
maximum amount of $8,400,000 or 80% loan to costs and a maturity date of September 2015 with an
optional 6 month extension available. The loan is secured by a first mortgage on all real property and
improvements on the property, assignment of leases, rents and other income, assignments of all
service, construction and architect's contracts and an assignment of capital contributions. The loan is
expected to be converted to permanent financing with the Colorado Housing and Finance Authority at
the completion of construction. As of December 31, 2014, the construction loan payable had a
balance due of $5,067,718.
41
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Notes Receivable
As of December 31, 2014, the Authority was owed $942,319 on two notes receivable from Redtail
Ponds Permanent Supportive Housing, LLLP with stated interest rates ranging from 2.50% per
annum to 4.00% per annum (see Note 4). In addition, the Authority was owed accrued interest of
$41,861 from Redtail Ponds. Interest income from Redtail Ponds for the year ended December 31,
2014, was $31,802.
As of December 31, 2014, the Authority was owed $2,813,280 on various notes receivable from VOE
with interest rates ranging from 3.50% per annum to 5.31% per annum (see Note 4). In addition, the
Authority was owed accrued interest of $30,972 from VOE. Interest income from VOE for the year
ended December 31, 2014, was $107,963.
As of December 31, 2014, the Authority was owed $1,293,530 on two notes receivable from VOS
with stated interest rates of 3.57% per annum (see Note 4). In addition, the Authority was owed
accrued interest of $38,435 from VOS. Interest income from VOS for the year ended December 31,
2014, was $45,889.
As of December 31, 2014, the Authority was owed $114,455 in initial developer fees and $7,000 in
other reimbursable amounts from Redtail Ponds Permanent Supportive Housing, LLLP related to the
construction and development of the building. These amounts are expected to be paid by Redtail
Ponds during 2015.
The Authority is also a general partner in Village on Plum, LLLP, a 95 unit low income housing tax
credit project. The Authority provides management services to the project. Under the management
agreement, the Authority is to be paid management fees totaling 8% of gross collections on the
project. During the year ended December 31, 2014, the Authority received $9,696 in property
management fees.
The Authority is a general partner in Village on Stanford, LLLP, an 82 unit low income housing tax
credit project. The Authority provides management services to the project. Under the management
agreement, the Authority is to be paid management fees totaling 8% of gross collections on the
project. During the year ended December 31, 2014, the Authority received $49,485 in property
management fees.
The Authority is reimbursed for various office expenses, caretaker payroll and benefits, and other
maintenance costs incidental to the operations of VOE, VOS and VOP. During the year ended
December 31, 2014, the Authority received approximately $91,600 from VOE, $156,000 from VOS
and $23,200 from VOP for these expenses.
42
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Investment in Tax Credit Partnerships
Note 12 - Management Services
Note 13 - Risk Management
Note 14 - Pension Plan
Note 15 - Line of Credit
The Authority is the managing general partner in VOE, VOS and VOP. The Authority's ownership
interest is generally 0.01% or less. As the general partner, the Authority has the day to day
management responsibilities of the partnership. The Authority's equity interest in the partnerships
above was $100,276 as of December 31, 2014.
The Authority has an unsecured line of credit with a total available balance of $1,000,000 with First
Bank of Northern Colorado. The line expires on June 30, 2015, and interest on the line of credit is
variable based on the Wall Street Journal Prime Rate plus 1.00% per annum with a current rate of
4.25% per annum. The funds from this line are designated for the temporary financing of Housing
Development projects. As of December 31, 2013, there was an outstanding balance of $700,000 and
during the year ended December 31, 2014, the Authority made payments on the line of $700,000 with
no additional advances. As of December 31, 2014, there was no outstanding balance due on the line
of credit.
As mentioned in Note 10, the Authority provides management services for Village on Elizabeth,
LLLP, Village on Stanford, LLLP and Village on Plum, LLLP. In addition, the Authority provides
management services for The Villages, Ltd. (Villages), the Wellington Housing Authority (WHA), and
the Northern Hotel. The Villages, WHA and the Northern Hotel pay for all direct charges and then
reimburse the Authority through a management fee agreement for the salaries, employee benefits,
and other overhead items.
The Authority is exposed to various risks of loss related to torts; theft of, damage to and destruction
of assets; errors and omissions; injuries to employees and natural disasters. The Authority carries
commercial insurance for the risks of loss, including worker's compensation and employee accident
insurance. Settled claims resulting from these risks have not exceeded commercial insurance
coverage in any of the past three fiscal years. Limits of insurance coverage have been adjusted
annually.
The Authority provides pension benefits for all of its permanent employees through a defined
contribution plan. In a defined contribution plan, benefits depend solely on amounts contributed to the
plan plus investment earnings. The plan requires all permanent employees to contribute two and a
half percent of pre tax salary and the employer contributes five percent of basic salary. For the years
ended December 31, 2014, 2013 and 2012, the cost of the plan totaled $157,247, $136,384 and
$126,920, respectively.
43
Fort Collins Housing Authority
Notes to Financial Statements
December 31, 2014
Note 16 - Conduit Debt
Note 17 - CDBG and HOME Grants
* * * * * * * * * *
The Authority received CDBG and HOME grants from the City of Fort Collins (City) for the acquisition
of land for the Redtail Ponds Permanent Supportive Housing project. The grant funds were loaned to
Redtail Ponds PSH partnership with a maturity date of 2045. The CDBG and HOME grants are
restricted for a period of time. The Authority is to repay the City upon the sale of property that was
acquired, constructed or improved with the CDBG and HOME grant funds through the restricted
period. As of December 31, 2014, the Authority had total grant income of $942,319 subject to
restriction.
In September of 2011, the Authority arranged for tax exempt financing in the amount of $2,737,000
for Neighbor to Neighbor, a local housing provider. The debt has a final maturity date of September
9, 2026 and is secured by real estate. The Authority in no way guarantees the loan or has any liability
for the loan. Accordingly, the loan is not reported as liabilities in the Authority's financial statements.
Neighbor to Neighbor pays the principal and interest directly to Home State Bank, paid a fee for the
refinancing of the loan, and pays the Authority a yearly fee for arranging the loan. As of December
31, 2014, the outstanding balance of the debt was $2,548,630.
44
Fort Collins Housing Authority
Combining Statement of Net Position
December 31, 2014
Housing Larimer County
Public Choice Housing State and Housing
Housing Vouchers Authority Local Development
Assets
Cash and cash equivalents $ 531,118 $ 273,703 $ 67,989 $ (2,615) $ 1,339,009
Restricted cash and
cash equivalents 61,318 181,937 12,501 - 182,674
Accounts receivable
Grants 8,275 - - 11,378 -
Tenants 10,204 - - - 9,516
Other 3,172 - - - 121,455
Accrued interest - - - - 69,407
Notes receivable - current - - - - -
Prepaid expenses 88 - - - 246
Inventory - - - - -
Due from other funds - - - - -
Due from other agencies - - - - -
Total current assets 614,175 455,640 80,490 8,763 1,722,307
Non-depreciable capital assets 4,518,159 - - - 1,524,400
Depreciable capital assets, net 1,304,255 - - - 18,776,406
Notes receivable, net - - - - 5,136,752
Investment in tax credit partnerships - - - - 100,276
Investment in future developments - - - - 77,764
Total Assets $ 6,436,589 $ 455,640 $ 80,490 $ 8,763 $ 27,337,905
Liabilities and Net Position
Liabilities
Line of credit payable $ - $ - $ - $ - $ -
Accounts payable 38,147 383 - 600 88,476
Accrued liabilities 7,271 793 - - -
Accrued compensation 6,849 23,003 - - 30,524
Accrued interest payable - - - - 60,389
Unearned revenues 3,597 - - - 12,544
Due to other funds 973 2,499 - 23 3,383
Tenant security deposits 29,295 - - - 126,372
Money held in escrow 32,023 131,067 10,441 - -
Notes and mortgages
payable - current - - - - 67,559
Total current liabilities 118,155 157,745 10,441 623 389,247
Notes and mortgages
payable, net - - - - 22,369,988
Total Liabilities 118,155 157,745 10,441 623 22,759,235
Net Position
Net investment in capital assets 5,822,414 - - - (2,136,741)
Restricted - 50,871 70,049 - -
Unrestricted 496,020 247,024 - 8,140 6,715,411
Total Net Position 6,318,434 297,895 70,049 8,140 4,578,670
Total Liabilities and Net Position $ 6,436,589 $ 455,640 $ 80,490 $ 8,763 $ 27,337,905
45
Fort Collins Housing Authority
Combining Statement of Net Position
December 31, 2014
Elimination of
Section 8 Intercompany Total
Management HUD Grant SRO COCC Total Activity (Memo Only)
$ 1,039,330 $ - $ 44,821 $ - $ 3,293,355 $ - $ 3,293,355
3,144 - - - 441,574 - 441,574
- - - - 19,653 - 19,653
- - - - 19,720 - 19,720
115,661 - - - 240,288 - 240,288
- - - - 69,407 - 69,407
20,423 - - - 20,423 - 20,423
29,710 - - - 30,044 - 30,044
56,847 - - - 56,847 - 56,847
6,943 - - - 6,943 (6,943) -
4,943 - - - 4,943 - 4,943
1,277,001 - 44,821 - 4,203,197 (6,943) 4,196,254
39,500 - - - 6,082,059 - 6,082,059
800,352 - - - 20,881,013 - 20,881,013
80,239 - - - 5,216,991 - 5,216,991
- - - - 100,276 - 100,276
- - - - 77,764 - 77,764
$ 2,197,092 $ - $ 44,821 $ - $ 36,561,300 $ (6,943) $ 36,554,357
$ - $ - $ - $ - $ - $ - $ -
73,115 - - - 200,721 - 200,721
35,967 - - - 44,031 - 44,031
220,876 - - - 281,252 - 281,252
1,879 - - - 62,268 - 62,268
- - - - 16,141 - 16,141
- - 65 - 6,943 (6,943) -
- - - - 155,667 - 155,667
3,144 - - - 176,675 - 176,675
65,967 - - - 133,526 - 133,526
400,948 - 65 - 1,077,224 (6,943) 1,070,281
739,468 - - - 23,109,456 - 23,109,456
1,140,416 - 65 - 24,186,680 (6,943) 24,179,737
135,079 - - - 3,820,752 - 3,820,752
- - 44,756 - 165,676 - 165,676
921,597 - - - 8,388,192 - 8,388,192
1,056,676 - 44,756 - 12,374,620 - 12,374,620
$ 2,197,092 $ - $ 44,821 $ - $ 36,561,300 $ (6,943) $ 36,554,357
46
Fort Collins Housing Authority
Combining Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2014
Housing Larimer County
Public Choice Housing State and Housing
Housing Vouchers Authority Local Development
Operating Revenues
HUD PHA grants $ 597,937 $ 8,098,691 $ 862,472 $ - $ -
Other grants - - - 50,018 110,319
Rental income 251,739 - - - 3,448,659
Administration fees - - - - -
Other 5,831 8,648 2,606 60 598,036
Total Operating Revenues 855,507 8,107,339 865,078 50,078 4,157,014
Operating Expenses
Housing assistance payments 23,625 7,396,186 729,753 41,901 -
Administrative salaries
and benefits 247,471 480,640 33,005 3,382 769,414
Maintenance salaries
and benefits 41,332 - - - 37,977
Other administrative 199,404 225,593 34,888 1,733 781,876
Regular and extraordinary
maintenance 354,580 - - - 877,664
Depreciation 116,092 2,772 - - 877,947
Utilities 120,886 - - - 216,975
Insurance 36,434 - - - 99,816
Payments in lieu of taxes 7,271 - - - -
Other 14,519 - - - 66,119
Total Operating Expenses 1,161,614 8,105,191 797,646 47,016 3,727,788
Operating Income (Loss) (306,107) 2,148 67,432 3,062 429,226
Non-Operating Revenues
(Expenses)
Interest income 819 510 2 4 186,126
Interest expense - - - - (754,853)
Other financing costs - - - - -
Gain on sale of capital assets - - - - 495,254
Total Non-Operating
Revenues (Expenses) 819 510 2 4 (73,473)
Income (Loss) Before
Contributions (305,288) 2,658 67,434 3,066 355,753
HUD Capital Contributions 258,051 - - - -
Change in Net Position (47,237) 2,658 67,434 3,066 355,753
Net Position-Beginning of Year 6,365,671 295,237 2,615 5,074 4,222,917
Net Position Transfer - - - - -
Net Position-End of Year $ 6,318,434 $ 297,895 $ 70,049 $ 8,140 $ 4,578,670
47
Fort Collins Housing Authority
Combining Statement of Revenues, Expenses and Changes in Net Position
Year Ended December 31, 2014
Elimination of
Section 8 Intercompany Total
Management HUD Grant SRO COCC Total Activity (Memo Only)
$ - $ 72,550 $ 159,016 $ - $ 9,790,666 $ - $ 9,790,666
- - - - 160,337 - 160,337
- - - - 3,700,398 - 3,700,398
1,000,427 - - 1,610,522 2,610,949 (1,551,204) 1,059,745
25,693 - - 24,276 665,150 (4,616) 660,534
1,026,120 72,550 159,016 1,634,798 16,927,500 (1,555,820) 15,371,680
- - 128,341 - 8,319,806 - 8,319,806
91,555 72,550 12,218 924,674 2,634,909 - 2,634,909
587,633 - - 125,437 792,379 - 792,379
126,376 - 5,042 494,048 1,868,960 (1,102,112) 766,848
90,359 - - 67,611 1,390,214 (453,708) 936,506
67,355 - - - 1,064,166 - 1,064,166
92 - - 15,282 353,235 - 353,235
8,609 - - 7,746 152,605 - 152,605
- - - - 7,271 - 7,271
- - - - 80,638 - 80,638
971,979 72,550 145,601 1,634,798 16,664,183 (1,555,820) 15,108,363
54,141 - 13,415 - 263,317 - 263,317
892 - 36 - 188,389 - 188,389
(22,054) - - - (776,907) - (776,907)
- - - - - - -
- - - - 495,254 - 495,254
(21,162) - 36 - (93,264) - (93,264)
32,979 - 13,451 - 170,053 - 170,053
- - - - 258,051 - 258,051
32,979 - 13,451 - 428,104 - 428,104
1,023,697 - 31,305 - 11,946,516 - 11,946,516
- - - - - - -
$ 1,056,676 $ - $ 44,756 $ - $ 12,374,620 $ - $ 12,374,620
Fort Collins Housing Authority
Fort Collins, Colorado
Statistical Section:
Financial Trends
Revenue Capacity
Debt Capacity
Demographic and Economic Information
Operation Information
48
Fort Collins Housing Authority
Statistical Section
Year Ended December 31, 2014
Contents Tables
Financial Trends
1 - 2
Revenue Capacity 3 - 4
Debt Capacity 5 - 6
Demographic and Economic Information 7 - 10
Operating Information 11 - 13
These schedules contain data to help the reader understand how the
information in FCHA's financial report relates to the services FCHA
provides and the activities it performs.
The part of Fort Collins Housing Authority's CAFR presents detailed information as a context for
understanding what the information in the financial statements, note disclosures and required
supplementary information says about FCHA's overall financial health.
These schedules contain trend information to help the reader understand
how FCHA's financial performance and well-being have changed over the
past 10 years.
These schedules contain trend information to help the reader assess
FCHA's most significant revenue sources
These schedules contain trend information to help the reader assess the
affordability of FCHA's current levels of outstanding debt and ability to issue
additional debt in the future.
These schedules contain trend information of the demographic and
economic indicators to help the reader understand the environment within
which FCHA's financial activities take place.
49
Fort Collins Housing Authority
Table 1 - Net Position - Last Ten Fiscal Years
(Unaudited)
Net investment Restricted Unrestricted
Fiscal Year in capital assets Net Position Net Position Total
2005 $ 5,567,100 $ 32,677 $ 1,240,253 $ 6,840,030
2006 5,542,946 72,225 1,389,465 7,004,636
2007 4,972,066 5,984 3,976,983 8,955,033
2008 5,557,049 3,005 4,284,526 9,844,580
2009 6,113,547 2,053 5,493,795 11,609,395
2010 6,258,078 881,203 6,386,691 13,525,972
2011 6,257,376 1,394,254 6,148,049 13,799,679
2012 6,127,227 830,743 5,650,992 12,608,962
2013 5,983,000 124,601 5,838,915 11,946,516
2014 3,820,752 165,676 8,388,192 12,374,620
Source: Previous years' audits and current year financial statements
50
Fort Collins Housing Authority
Table 2 - Changes in Net Position - Last Ten Fiscal Years
(Unaudited)
2005 2006 2007 2008
Operating Revenue:
Intergovernmental revenues $ 6,471,296 $ 6,681,633 $ 7,288,624 $ 7,814,252
Net tenant revenue 359,554 222,696 285,721 206,154
Other revenues 1,476,929 1,590,040 2,598,449 2,715,514
8,307,779 8,494,369 10,172,794 10,735,920
Operating Expenses:
Administrative 1,323,260 1,483,642 1,592,201 2,144,043
Utilities 121,035 121,478 120,029 140,170
Ordinary maintenance and operating 893,430 1,103,200 920,168 955,686
General expenses 92,312 88,685 111,213 78,555
Depreciation 173,250 185,295 192,574 204,817
Housing assistance payments 5,838,510 5,737,937 6,394,129 6,620,333
8,441,797 8,720,237 9,330,314 10,143,604
Operating Income (Loss) (134,018) (225,868) 842,480 592,316
Nonoperating Revenue (Expenses):
Investment revenue 249,199 265,581 292,965 285,883
Interest expense (223,687) (213,945) (216,483) (177,582)
Other revenue 38,272 686 851,611 -
Other financing costs - - - -
63,784 52,322 928,093 108,301
Income (Loss) before Capital Contribution (70,234) (173,546) 1,770,573 700,617
Capital grants 232,936 227,441 204,924 160,353
Change in net assets 162,702 53,895 1,975,497 860,970
HUD adjustments (1,059) 110,711 (25,100) 28,577
Net Position, Beginning of the Year 6,678,387 6,840,030 7,004,636 8,955,033
Net Position, End of the Year $ 6,840,030 $ 7,004,636 $ 8,955,033 $ 9,844,580
Source: Previous years' audits and current year financial statements
51
Fort Collins Housing Authority
Table 2 - Changes in Net Position - Last Ten Fiscal Years
(Unaudited)
2009 2010 2011 2012 2013 2014
$ 7,949,883 $ 8,689,444 $ 9,417,341 $ 8,760,939 $ 9,776,237 $ 9,900,985
226,570 266,956 247,980 200,224 3,416,131 3,700,398
3,663,004 3,182,309 1,480,943 1,511,301 1,435,805 1,770,297
11,839,457 12,138,709 11,146,264 10,472,464 14,628,173 15,371,680
2,268,006 2,426,037 2,508,848 2,675,531 3,239,544 3,401,757
129,749 138,805 136,511 155,801 382,351 353,235
1,380,520 1,198,615 804,992 900,628 1,509,999 1,728,885
41,740 56,821 51,805 48,204 187,225 240,514
211,970 237,949 202,784 181,422 1,055,276 1,064,166
6,598,924 7,040,168 7,553,141 7,911,438 8,335,325 8,319,806
10,630,909 11,098,395 11,258,081 11,873,024 14,709,720 15,108,363
1,208,548 1,040,314 (111,817) (1,400,560) (81,547) 263,317
305,316 268,582 225,730 161,089 164,195 188,389
(146,554) (120,673) (86,963) (34,275) (923,213) (776,907)
- - - - - 495,254
- - - (238,495) (17,380) -
158,762 147,909 138,767 (111,681) (776,398) (93,264)
1,367,310 1,188,223 26,950 (1,512,241) (857,945) 170,053
397,990 727,869 246,757 321,524 195,499 258,051
1,765,300 1,916,092 273,707 (1,190,717) (662,446) 428,104
- - - - - -
9,844,580 11,609,880 13,525,972 13,799,679 12,608,962 11,946,516
$ 11,609,880 $ 13,525,972 $ 13,799,679 $ 12,608,962 $ 11,946,516 $ 12,374,620
52
Fort Collins Housing Authority
Table 3 - Operating Revenues by Source - Last Ten Fiscal Years
(Unaudited)
Fiscal
Year Amount % of Total Amount % of Total Amount % of Total Total
2005 $ 359,554 4.33% $ 6,471,296 77.89% $ 1,476,929 17.78% $ 8,307,779
2006 222,696 2.62% 6,681,633 78.66% 1,590,040 18.72% 8,494,369
2007 285,721 2.81% 7,288,624 71.65% 2,598,449 25.54% 10,172,794
2008 206,154 1.92% 7,814,252 72.79% 2,715,514 25.29% 10,735,920
2009 226,570 1.91% 7,949,883 67.15% 3,663,004 30.94% 11,839,457
2010 266,956 2.20% 8,689,444 71.58% 3,182,309 26.22% 12,138,709
2011 247,980 2.22% 9,417,341 84.49% 1,480,943 13.29% 11,146,264
2012 200,224 1.91% 8,760,939 83.66% 1,511,301 14.43% 10,472,464
2013 3,416,131 23.35% 9,776,237 66.83% 1,435,805 9.82% 14,628,173
2014 3,700,398 24.07% 9,900,985 64.41% 1,770,297 11.52% 15,371,680
Source: Previous years' audits and current year financial statements
Net Tenant Rental Intergovernmental Other
53
Fort Collins Housing Authority
Table 4 - Non-Operating Revenues by Source - Last Ten Fiscal Years
(Unaudited)
Fiscal
Year Amount % of Total Amount % of Total Amount % of Total Total
2005 $ - 0.00% $ 249,199 86.69% $ 38,272 13.31% $ 287,471
2006 - 0.00% 265,581 99.74% 686 0.26% 266,267
2007 - 0.00% 292,965 25.60% 851,611 74.40% 1,144,576
2008 - 0.00% 285,883 100.00% - 0.00% 285,883
2009 - 0.00% 305,316 100.00% - 0.00% 305,316
2010 - 0.00% 268,582 100.00% - 0.00% 268,582
2011 - 0.00% 225,730 100.00% - 0.00% 225,730
2012 - 0.00% 161,089 100.00% - 0.00% 161,089
2013 - 0.00% 164,195 100.00% - 0.00% 164,195
2014 - 0.00% 188,389 27.56% 495,254 72.44% 683,643
Source: Previous years' audits and current year financial statements
Intergovernmental Investment Other Income
54
Fort Collins Housing Authority
Table 5 - Debt Service Coverage - Last Ten Fiscal Years
(Unaudited)
2005 2006 2007 2008
Revenue $ 8,828,186 $ 8,774,132 $ 11,522,294 $ 11,182,156
Expenses (excluding depreciation) (8,492,234) (8,534,942) (9,354,223) (10,116,369)
Revenue Available for debt service $ 335,952 $ 239,190 $ 2,168,071 $ 1,065,787
Debt Service Requirements:
Principal $ 202,964 $ 212,612 $ 222,720 $ 315,931
Interest 226,894 217,246 207,138 195,149
Total $ 429,858 $ 429,858 $ 429,858 $ 511,080
Debt Service Coverage Ratio 0.78 0.56 5.04 2.09
Source: Previous years' audits and current year financial statements
55
Fort Collins Housing Authority
Table 5 - Debt Service Coverage - Last Ten Fiscal Years
(Unaudited)
2009 2010 2011 2012 2013 2014
$ 12,542,278 $ 13,135,160 $ 11,618,751 $ 10,955,077 $ 14,987,867 $ 16,313,374
(10,565,493) (10,981,119) (11,142,260) (11,963,372) (14,595,037) (15,885,270)
$ 1,976,785 $ 2,154,041 $ 476,491 $ (1,008,295) $ 392,830 $ 428,104
$ 319,571 $ 333,451 $ 286,483 $ 16,523 $ 70,488 $ 149,502
135,939 115,142 104,289 24,213 897,721 749,985
$ 455,510 $ 448,593 $ 390,772 $ 40,736 $ 968,209 $ 899,487
4.34 4.80 1.22 (24.75) 0.41 0.48
56
Fort Collins Housing Authority
Table 6 -Ratio of Debt to Capital Assets - Last Ten Fiscal Years
(Unaudited)
Ratio of
Fiscal Total Debt to
Year Short-Term Debt Long-Term Debt Total Debt Capital Assets Capital Assets
2005 $ 212,612 $ 4,559,234 $ 4,771,846 $ 5,667,418 84.20%
2006 222,720 4,334,893 4,557,613 5,627,362 80.99%
2007 315,931 4,297,096 4,613,027 5,639,713 81.80%
2008 319,571 3,987,018 4,306,589 5,606,459 76.81%
2009 429,451 3,383,890 3,813,341 6,144,359 62.06%
2010 286,483 2,718,440 3,004,923 6,269,347 47.93%
2011 16,523 414,326 430,849 6,490,876 6.64%
2012 70,489 26,019,709 26,090,198 39,545,585 65.97%
2013 149,502 25,898,780 26,048,282 31,511,522 82.66%
2014 133,526 23,109,456 23,242,982 26,963,072 86.20%
Source: Previous years' audits and current year financial statements
Note: Total debt amount includes short-term portion due within one year
57
Fort Collins Housing Authority
Table 7 - Service Area Demographics / Statistics - Last Ten Fiscal Years
(Unaudited)
City of Fort Collins Residents Fort Collins & Larimer County
Fiscal Year Population of FCHA Unemployment Rate
2005 127,686 2,054 4.4%
2006 129,511 2,026 3.9%
2007 134,169 2,090 3.4%
2008 136,427 2,120 5.0%
2009 138,100 2,126 6.6%
2010 143,986 2,164 7.4%
2011 144,875 2,342 6.8%
2012 148,700 2,430 6.4%
2013 151,330 2,446 5.4%
2014 155,400 3,433 3.5%
Source: Bureau of Labor Statistics and FCHA tenant records.
Note: Unemployment rate is based on the Fort Collins / Loveland regional area. This table includes all FCHA
housing programs.
58
Fort Collins Housing Authority
Table 8 - Principal Employers for the City of Fort Collins
(Unaudited)
Percentage of Total
Employees Rank City Employment
Colorado State University 7,317 1 8.1%
Poudre R-1 School District 4,025 2 4.5%
Poudre Valley Health Care, Inc. 3,078 3 3.4%
City of Fort Collins 1,889 4 2.1%
Larimer County 1,566 5 1.7%
Hewlett Packard Company 1,312 6 1.5%
Center Partners 1,299 7 1.4%
Woodward, Inc. 1,291 8 1.4%
Employment Solutions Personnel Serv. 1,242 9 1.4%
Avago 852 10 0.9%
Total 23,871 26.6%
Percentage of Total
Employees Rank City Employment
Colorado State University 5,700 1 7.3%
Employment Solutions Personnel Serv. 4,060 2 5.2%
Poudre R-1 School District 3,014 3 3.9%
Agilent Technologies 2,600 4 3.3%
Poudre Valley Health Care, Inc. 2,300 5 2.9%
City of Fort Collins 1,400 6 1.8%
Larimer County 1,400 6 1.8%
Center Partners 860 8 1.1%
Advanced Energy Industries, Inc. 779 9 1.0%
Anheiser Busch/InBev 750 10 1.0%
Total 22,863 29.3%
Source: City of Fort Collins CAFR, FY 12/31/2013
(1) Current year data is unavailable at the time of the preparation of the CAFR.
2013 (1)
2004 (1)
59
Fort Collins Housing Authority
Table 9 - Resident Demographics / Population Statistics - Last Ten Fiscal Years
(Unaudited)
Number of Number of Number of Total
minors adults elderly number of
Fiscal Year (ages 0-18) (ages 19-61) (ages 62+) residents
2005 190 228 18 436
2006 191 229 18 438
2007 192 230 18 440
2008 218 205 13 436
2009 200 232 16 448
2010 160 207 15 382
2011 158 203 15 376
2012 153 202 19 374
2013 160 197 23 380
2014 337 626 63 1,026
Number of Number of Number of Total
minors adults elderly number of
Fiscal Year (ages 0-18) (ages 19-61) (ages 62+) residents
2005 720 773 125 1,618
2006 707 759 122 1,588
2007 734 789 127 1,650
2008 791 775 118 1,684
2009 789 772 117 1,678
2010 784 855 143 1,782
2011 845 983 138 1,966
2012 884 1,008 164 2,056
2013 888 992 186 2,066
2014 995 1,137 275 2,407
Source: Fort Collins Housing Authority tenant records.
Public Housing and Non-HUD Housing Programs
Housing Choice Voucher Program
60
Fort Collins Housing Authority
Table 10 - Resident Demographics / Ethnicity Statistics - Last Ten Fiscal Years
(Unaudited)
African Native
Fiscal Year Caucasian Latino American American Other Total
2005 260 147 10 12 7 436
2006 261 148 10 12 7 438
2007 262 148 10 12 8 440
2008 279 135 9 13 - 436
2009 278 139 9 13 9 448
2010 240 126 8 8 - 382
2011 203 143 11 11 8 376
2012 218 131 11 7 7 374
2013 220 133 8 11 8 380
2014 650 330 16 18 12 1,026
African Native
Fiscal Year Caucasian Latino American American Other Total
2005 1,093 398 59 57 11 1,618
2006 1,072 391 58 56 11 1,588
2007 1,113 406 61 58 12 1,650
2008 1,111 438 51 67 17 1,684
2009 1,107 420 67 67 17 1,678
2010 1,194 446 53 71 18 1,782
2011 1,336 472 79 59 20 1,966
2012 1,398 493 82 62 21 2,056
2013 1,404 496 83 62 21 2,066
2014 1,724 515 96 48 24 2,407
Source: Fort Collins Housing Authority tenant records.
Public Housing and Non-HUD Housing Programs
Housing Choice Voucher Program
61
Fort Collins Housing Authority
Table 11 - Number of FCHA Dwelling Units - Last Ten Fiscal Years
(Unaudited)
Housing Five Year
Public Choice VASH Mainstream
Fiscal Year Housing Vouchers Vouchers Vouchers SRO TBRA VOCC Total
2005 154 745 - 64 27 37 - 1,027
2006 154 730 - 64 27 38 - 1,013
2007 154 763 - 62 27 39 - 1,045
2008 154 776 - 64 27 37 - 1,058
2009 154 776 - 63 27 11 - 1,031
2010 154 735 46 64 27 10 - 1,036
2011 154 793 65 60 27 7 - 1,106
2012 154 836 64 64 27 6 - 1,151
2013 154 810 79 65 27 9 344 1,488
2014 154 853 89 63 27 6 285 1,477
Source: Fort Collins Housing Authority tenant records.
62
Fort Collins Housing Authority
Table 12 - Property Characteristics and Unit Composition - Last Ten Fiscal Years
(Unaudited)
Number
Address of Units Year Built
Public Housing:
Azalea 1720 Azalea Drive 8 1973
Bryan 707 S. Bryan Avenue 1 1960
Emigh 1107 - 1109 Emigh Street 4 1965
Erin 1709 Erin Court 8 1970
Gallup 804 - 824 Gallup Road 11 1976
Garfield 1012 - 1022 Garfield Street 6 1970
Grant - 307-317 307 - 317 N. Grant Avenue 6 1976
Grant - 608 608 Grant Avenue 2 1940
Impala 300 - 330 Impala Circle 11 1976
Jamith 112 - 125 Jamith Place 14 1980
Laporte 501 - 503 Laporte Avenue 2 1950
Loomis 331 S Loomis Avenue 2 1890
Mathews 701 Mathews Street 2 1945
Montgomery 1206 Montgomery Street 4 1970
Morgan 1016 - 1018 Morgan Street 3 1965
Mulberry - 519 519 E. Mulberry Street 1 1940
Mulberry - 717 717 E. Mulberry Street 2 1930
Palm 1707 - 1713 Palm Drive 8 1975
Park 513 - 519 Park Street 4 1976
Pecan 1960 - 1962 Pecan Street 3 1978
Pitkin 1648 - 1652 E. Pitkin Street 8 1970
Plum - 2155 2155 W. Plum Street 15 1980
Plum - 411 411 E. Plum Street 2 1940
Rams 2912 - 2926 Rams Lane 6 1976
Rocky 800 - 813 Rocky Road 8 1976
Stanford 2601 - 2603 Stanford Road 2 1975
Sycamore 905 Sycamore Street 1 1940
West - 227 227 West Street 1 1940
West - 512-518 512 - 518 West Street 4 1976
Whedbee - 228 228 Whedbee Street 1 1890
Whedbee - 306 306 Whedbee Street 2 1890
Whitcomb 311 N. Whitcomb Street 1 1930
Wood 500 Wood Street 1 1940
Total Public Housing Units 154
Villages at Cunningham Corner (VOCC):
Hickory Hill Village 3425 Windmill Drive 92 1992
Rose Tree Village 3436 South Shields Street 120 1995
Willow Grove Village 1025 Cunningham Drive 72 1991
Leasing Office - Upstairs Unit 3436 South Shields Street 1 1997
Total VOCC Units 285
Total Units 439
Source: Fort Collins Housing Authority Property Records
Name of Development
63
Fort Collins Housing Authority
Table 13 - Number of FCHA Staff - Last Ten Fiscal Years
(Unaudited)
Fiscal Year Administration Development Finance Housing Maintenance Total
2005 4 - 3 23 12 42
2006 5 - 3 23 12 43
2007 5 - 3 28 11 47
2008 5 - 4 25 13 47
2009 5 - 4 27 12 48
2010 6 3 5 23 8 45
2011 7 3 6 26 9 51
2012 6 4 6 25 10 51
2013 6 5 6 29 11 57
2014 7 6 6 23 15 57
Source: Fort Collins Housing Authority employment records.
Fort Collins Housing Authority
Fort Collins, Colorado
Single Audit Section:
Independent Auditors' Reports
Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Status of Prior Year Findings
64
Independent Auditor’s 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
The Board of Commissioners
Fort Collins Housing Authority
Fort Collins, Colorado
We have audited, 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, the financial statements of
the business-type activities and the discretely presented component units, of Fort Collins
Housing Authority (Authority) as of and for the year ended December 31, 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 April 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 entity’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 over financial reporting 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 financial reporting 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 yet been identified.
65
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Authority's financial statements
are free from 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 entity’s internal control or on compliance. This report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the entity’s
internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
Bismarck, North Dakota
April 29, 2015
66
Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on
Internal Control Over Compliance Required by OMB Circular A-133
The Board of Commissioners
Fort Collins Housing Authority
Fort Collins, Colorado
Report on Compliance for Each Major Federal Program
We have audited Fort Collins Housing Authority’s 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 the Authority’s major federal programs for the year ended
December 31, 2014. The Authority’s major federal programs are identified in the summary of
auditor’s 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 the compliance for each of the Authority’s 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 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 the Authority’s 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 the
Authority’s compliance.
Opinion on Each Major Federal Program
In our opinion, the Authority complied, in all material respects, with the compliance requirements
referred to above that could have a direct and material effect of each of its major Federal
programs for the year ended December 31, 2014.
67
Report on Internal Control over Compliance
Management of the Authority is responsible for establishing and maintaining effective internal
control over compliance with the compliance requirements referred to above. In planning and
performing our audit of compliance, we considered the Authority’s 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 the
Authority’s 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
compliance requirement 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 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.
Bismarck, North Dakota
April 29, 2015
See Notes to Schedule of Expenditures of Federal Awards 68
Fort Collins Housing Authority
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2014
Pass-Through
Entity
Federal Agency / Pass-Through CFDA Identifying Federal
Grantor Program Title Number Number Expenditures
United States Department of Housing and Urban Development
Section 8 Rental Voucher Program Cluster **
DEN 658V - Choice Vouchers 14.871 - $ 8,105,191
DEN 2562 - Choice Vouchers 14.871 - 308,753
Total Section 8 Choice Vouchers 8,413,944
DEN 2562 - Mainstream 14.879 - 488,893
Total Section 8 Rental Voucher Program Cluster 8,902,837
Low Rent Public Housing 14.850a - 597,937
Room Occupancy 14.249 - 145,601
Resident Opportunity and Supportive Services 14.870 - 72,550
Capital Fund Program 14.872 - 258,051
Passed through the City of Fort Collins
Community Development Block Grant (CDBG) 14.218 96021-16-010 110,319
Total Federal Expenditures $ 10,087,295
** - Denotes a major program cluster
69
Fort Collins Housing Authority
Schedule of Expenditures of Federal Awards
Year Ended December 31, 2014
Note A - Basis of Presentation
Note B - Significant Accounting Policies
The accompanying schedule of expenditures of federal awards includes the federal grant activity of
the Fort Collins Housing Authority (FCHA), 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 . FCHA received federal
awards both directly from federal agencies and indirectly through pass-through entities. Federal
financial assistance provided to a sub-recipient is treated as an expenditure when it is paid to the
sub-recipient.
The FCHA's summary of significant accounting policies is presented in Note 1 in the FCHA's basic
financial statements.
70
Fort Collins Housing Authority
Schedule of Findings and Questioned Costs
Year Ended December 31, 2014
Section I – Summary of Auditor’s Results
FINANCIAL STATEMENTS
Type of auditor's report issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Noncompliance material to financial statements noted? No
FEDERAL AWARDS
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None Reported
Type of auditor's report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported
in accordance with Section 510(a) of OMB Circular A-133? No
Identification of major programs:
Name of Federal Program CFDA Number
Section 8 Housing Choice Vouchers / Mainstream /
Family Unification Program 14.871 / 14.879 / 14.880
Dollar threshold used to distinguish between type A
and type B programs:
Auditee qualified as low-risk auditee? Yes
$ 301,869
71
Fort Collins Housing Authority
Schedule of Findings and Questioned Costs
Year Ended December 31, 2014
Section II – Financial Statement Findings
None
72
Fort Collins Housing Authority
Schedule of Findings and Questioned Costs
Year Ended December 31, 2014
Section III – Federal Award Findings and Questioned Costs
None
73
Fort Collins Housing Authority
Schedule of Prior Year Findings and Questioned Costs
Year Ended December 31, 2014
No prior year federal findings.