2011 DHA Comprehensive Annual Financial · PDF fileComprehensive Annual Financial Report...

THE HOUSING AUTHORITY OF THE CITY OF DURHAM

Comprehensive Annual Financial Report

FOR THE FISCAL YEAR ENDED

DECEMBER 31, 2012

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THE HOUSING AUTHORITY OF THE CITY OF DURHAM,

NORTH CAROLINA

Comprehensive Annual Financial Report

December 31, 2012

Issued by

Department of Finance & Administration

Jeffrey G. Causey, CFO

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The Housing Authority of the City of Durham

North Carolina

Section I - Introductory Section .......................................................................................................7

Principal Officials ............................................................................................................................................... 9

Organization Chart ..........................................................................................................................................10

Transmittal Letter ...........................................................................................................................................11

Section II - Financial Section .......................................................................................................... 17

Independent Auditors’ Report .......................................................................................................................19

Management's Discussion and Analysis .......................................................................................................22

Basic Financial Statements ......................................................................................................... 29

Exhibit A - Statement of Net Position ..........................................................................................................30

Exhibit B – Statement of Revenues, Expenses, and Changes in Net Position ........................................31

Exhibit C - Statement of Cash Flows .............................................................................................................32

Notes to Basic Financial Statements .............................................................................................................33

Combining Financial Statements ................................................................................................ 57

Combining Statement of Net Position ..........................................................................................................58

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position ..............................59

Combining Statement of Cash Flows ............................................................................................................60

Combining Statement of Net Position – Nonmajor Funds ........................................................................61

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Nonmajor Funds ............................................................................................................................................................................62

Combining Statement of Cash Flows – Nonmajor Funds ..........................................................................63

Combining Statement of Net Position – Component Units ......................................................................64

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Component Units ...................................................................................................................................................................65

Combining Statement of Cash Flows – Component Units .........................................................................66

Section III – Single Audit Section ................................................................................................... 68

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 ........................................................................................................................69

Independent Auditors’ Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program, on Internal Control Over Compliance, and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A-133 .......................................71

Schedule of Expenditures of Federal Awards ..............................................................................................74

Notes to Schedule of Expenditures of Federal Awards ..............................................................................75

Schedule of Findings and Questioned Costs ................................................................................................76

Schedule of Prior Year Findings and Questioned Costs .............................................................................80

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HUD Financial Data Schedule (FDS)................................................................................................ 81

Schedule of Net Position - FDS ......................................................................................................................82

Schedule of Revenues and Expenses and Changes in Net Position – FDS ...............................................85

HUD Cost Certificates ......................................................................................................................................89

Budgetary Information .................................................................................................................. 95

Statement of Revenues, Expenses and Changes in Net Position – Budget & Actual (Non-GAAP), Public Housing .................................................................................................................................................96

Statement of Revenues, Expenses and Changes in Net Position – Budget & Actual (Non-GAAP), Housing Choice Voucher Program ................................................................................................................97

Statement of Revenues, Expenses and Changes in Net Position – Budget & Actual (Non-GAAP), Central Office Cost Center ..............................................................................................................................98

Statistical Section ........................................................................................................................... 99

Table 1 – Net Position .................................................................................................................................. 100

Table 2 – Changes in Net Position .............................................................................................................. 101

Table 3 – Operating Revenues By Source .................................................................................................. 102

Table 4 – Nonoperating Revenues By Source ........................................................................................... 103

Table 5 – Debt Service Coverage................................................................................................................. 104

Table 6 – Ratio of Debt to Capital Assets ................................................................................................... 105

Table 7 – Property Characteristics and Unit Composition..................................................................... 106

Table 8 – Staff Headcount By Program ...................................................................................................... 107

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SECTION I - INTRODUCTORY SECTION

List of Principal Officials

Organizational Chart

Letter of Transmittal

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This page intentionally left blank.

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North Carolina

Principal Officials Commissioners as of December 31, 2012

Name Term expires

Thomas M. Niemann, Chairman September 28, 2017

David J. Haley, Vice-Chairman September 28, 2014

Gloria M. Nottingham, Member September 28, 2015

Barbara F. Lofton, Member September 28, 2017

George K. Quick, Member September 28, 2015

John S. Ramsey, Member September 28, 2014

Isaac A. Robinson, Member September 28, 2013

Steve Shewel, Council Liaison (no expiration date)

Administrative Staff as of December 31, 2012

Name Position

Dallas J. Parks Chief Executive Officer

Rhega Taylor Director of Housing Choice Voucher Program

Jeffrey G. Causey Chief Financial Officer

Shannon McLean Director of Development and Real Estate Strategies

Vickie Ellis Capital Improvements/Strategic Plan Administrator

Sabrina Sinegal Director of Human Resources

Sherrod Banks, Esq. The Banks Law Firm

Outside Legal Counsel

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North Carolina

Organization Chart As of December 31, 2012

Director of Human Resources

Chief Executive Officer

Chief Financial Officer

Human Resources

Public Housing/AMPs

Technical Services

ResidentServices

Affordable Housing

Housing Choice Voucher Program

Accounting

Procurement

IT

Capital Fund Program Administration

Director of Development

HOPE VI

CEODepartment

Capital Funds & Strategic Plan

Administrator

Director of HCV

Director of Resident Services

Development

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330 E. Main Street

P.O. Box 1726

Durham, NC 27701

(919) 683-1551

FAX: (919) 683-1237

TDD/TTY: (800) 545-1833 ext. 774

durhamhousingauthority.org

A Commitment to Quality Living

June 26, 2013

Transmittal Letter Members of the Board of Commissioners The Housing Authority of the City of Durham

Introduction

We are pleased to present the Durham Housing Authority Comprehensive Annual Financial Report (CAFR) for the fiscal year ended December 31, 2012. This report was prepared by the Authority's staff and was audited by the public accounting firm of CliftonLarsonAllen LLP.

The data presented in this report are the responsibility of the management of the Authority. To the best of our knowledge and belief, the data as presented are accurate in all material aspects; are presented in a manner designed to fairly state the financial position and results of operations of the Authority; and include all necessary disclosures to enable the reader to gain a complete understanding of the Authority's financial affairs. The financial statements are presented in conformity with U.S. Generally Accepted Accounting Principles (GAAP). 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). The Authority's MD&A can be found immediately following the report of the independent auditors.

This report is prepared in conformance with standards of financial reporting as established by the Governmental Accounting Standards Board (GASB) and the Government Finance Officers Association (GFOA). Based on these standards, the CAFR is presented in four sections: introductory, financial, single audit, and statistical. The introductory section includes this transmittal letter, the list of principal officials, and the organization chart for the Authority. The financial section includes the independent auditor's report on the basic financial statements, MD&A, the basic financial statements, notes to the basic financial statements, combining financial schedules, budget versus actual schedules, and HUD financial data schedules. The statistical section includes selected financial and demographic information, presented on a multi-year basis.

The Authority is required to undergo an annual single audit in conformity with the provisions of the Single Audit Act Amendments of 1996 and U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments and Non-profit Organizations. It is the Authority's policy to require the accounting firm to be independent certified public accountants with specific experience in auditing governmental entities. Information related to this single audit, including the 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 Independent Auditor's Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Program and on Internal Control Over Compliance in Accordance with OMB Circular A-133; the Schedule of Expenditures of Federal Awards and related notes; Schedule of Findings and Questioned Costs; and the Schedule of Prior Year Findings and Questioned Costs are included in the single audit section of this report.

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Government Profile

The Authority is an autonomous, non-profit municipal entity created by the City of Durham in 1949 pursuant to state law and the National Housing Act of 1937. Although it maintains close ties with the City in several respects, the Authority is not a component unit of the City, as defined by the pronouncements of the GASB, since the City is not financially accountable for the operations of the Authority, has no responsibility to fund its deficits or receive its surpluses, and has not guaranteed the Authority's debt The governing body of the Authority is its Board of Commissioners (Board) and is comprised of six members appointed by city council of the City of Durham and one member appointed by the mayor of the City of Durham. The Board appoints a Chief Executive Officer to administer the affairs of the Authority.

The Authority exists to provide safe, decent, and sanitary housing for low-income families of Durham in accordance with the rules and regulations prescribed by the U.S. Department of Housing and Urban Development (HUD) and other federal agencies. The primary source of external funding for the Authority is the U.S. Department of Housing and Urban Development (HUD) which provides funding for a variety of programs such as the Low Rent Housing Program (Public Housing) and the Housing Choice Voucher Program. In addition to the federal programs, the Authority has established Development Ventures Incorporated, Edgemont Elms Housing, Inc., Learning Assistance, Inc., Preiss-Steele Place Housing, Inc., and other smaller legal entities to explore and develop innovative techniques for providing alternative housing possibilities for the low to moderate-income residents of Durham. These programs have allowed the Authority the flexibility to develop several private/public partnerships providing a variety of housing opportunities for Durham residents.

Economic Condition and Outlook

The Authority's financial position is directly affected by the level of federal appropriations and Congressional housing legislation. The impact of these federal actions impacts the Authority more than local economic factors since the Authority's primary source of funding is HUD. Nationwide there are approximately one million units of public housing. The Authority owns and operates approximately 1,800 Public Housing units, 160 units of affordable housing units, and administers approximately 2,700 Housing Choice Voucher Program vouchers. Similar to most housing authorities, approximately 80% of the Authority's operating and capital funding comes from federal dollars in the form of operating subsidies, capital grant funds, and Housing Choice Voucher Program housing assistance payments.

For the Housing Choice Voucher Program, HUD provides housing authorities with a fixed annual budget for Housing Assistance Payments (HAP) and for administrative 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 less an estimate of income from rents. Operating subsidies are subject to annual appropriation by Congress. For 2012, the amount funded was 95% of the calculated subsidy eligibility amount.

According to the U.S. Department of Labor, Bureau of Labor Statistics, during 2012, employment in the Durham-Chapel Hill Metropolitan Statistical Area (MSA) decreased by approximately 0.4%. At December 2012, the unemployment rate was 7.1% compared to 7.5% in December 2011. The unemployment rate for the state of North Carolina was 10.4% in December 2011. On an annual basis, unemployment decreased from 7.8% for 2011 to 7.4% for 2012.

Major Initiatives

The Authority has implemented a balanced scorecard to provide strategic guidance to staff. As part of

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the balanced scorecard framework, the Authority identified fifteen strategic objectives and created a corporate strategy map that helps users visualize the relationships between objectives.

In addition to work on the corporate strategic plan, the Authority pursued several other projects throughout 2012. A major rehabilitation project at Edgemont Elms was substantially completed. This project will make the property more attractive to potential clients. As part of this project, the Authority successfully negotiated modifications to both the existing first and second mortgages on the property. These modifications will aid in improving financial performance of the property until the rehabilitation project is completed and normal operations resume.

The Authority also received funding approval from several sources, including the NC Housing Finance Agency and the City of Durham, to be used for a new 20-unit development referred to as Goley Pointe. This development will include public housing, project-based voucher, and market rate units and is targeted at homeless families.

During June and July 2009, the local field office of HUD conducted a comprehensive monitoring review of the Authority. This review covered all areas and functions receiving federal funds. In addition to the already known problems with the HCV Program, the review also revealed significant problems with the procurement activities and functions of the Authority and generated comments related to other areas. In response to this, Authority staff were engaged in corrective action activities for much of the latter half of the year. The Authority also retained a firm to conduct an assessment of operations. During

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2010, efforts were pursued to implement several of the recommendations identified by the firm. In the early part of 2011, the local field office lifted a set of controls that had been imposed on the Authority as a result of the monitoring review.

In the latter half of 2011, the Authority was subject to a quality assurance monitoring review of the financial activities of the American Recovery and Reinvestment Act and Housing Choice Voucher program funds. No deficiencies or corrective actions were identified.

Financial Information

The Authority's management is responsible for establishing and maintaining an internal control structure designed to ensure that the Authority's assets are protected from loss, theft or misuse, and to ensure that adequate accounting data are compiled to allow for the preparation of financial statements in conformity with GAAP. The internal control structure is designed to provide reasonable, but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the costs of a control should not exceed the benefits to be derived and (2) the valuation of costs and benefits require estimates and judgment by management.

Single Audit: As a recipient of federal awards, the Authority is also responsible for ensuring that an adequate internal control structure is in place to ensure compliance with applicable laws and regulations related to those programs. The internal control structure is subject to periodic evaluation by management, compliance staff of the Authority, and the Authority's independent auditors.

As part of the Authority's single audit, tests are made to determine the adequacy of the Authority's internal control structure, including that portion relative to federal awards, as well as to determine whether the Authority has complied with applicable laws, regulations, contracts, and grants. The Authority's single audit for the fiscal year ended December 31, 2012 resulted in two findings, including:

2012-01: Housing Choice Voucher Program tenant file deficiencies related to special tests of rent reasonableness (internal control, noncompliance and significant deficiency);

2012-02: Housing Choice Voucher Program HQS inspections deficiencies (internal control, noncompliance and significant deficiency).

Budgetary Controls: The objective of budgetary controls maintained by the Authority is to ensure compliance with legal provisions embodied in the annual budgets approved by the Board of Commissioners. The annual budgets are proposed by the Chief Executive Officer and submitted to the Board of Commissioners for approval. Automated systems are used to generate purchase orders and to allow users to look up account information to check budgets and detailed charges against the budgets. Budget to actual reports are presented to the Authority's Board and management on a monthly basis.

Component Units: The Authority has four (4) active component units as of December 31, 2012. These component units include:

• Development Ventures Incorporated

• Learning Assistance, Inc.

• Edgemont Elms Housing, Inc.

• Preiss-Steele Place Housing, Inc.

All of these component units have a December 31st fiscal year end.

In addition to the above component units, the Authority is a party to or otherwise related to a variety of legal entities created for the purpose of facilitating development of affordable housing for the

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residents of Durham.

Cash Management: All funds invested by the Authority during fiscal year 2011 were invested in instruments which will provide the highest investment return with the maximum security while meeting the daily cash flow demands of the Authority and conforming to all federal, state, and local statutes governing the investment of public funds.

Debt Administration: A summary of the Authority's outstanding debt is provided under the MD&A following this report and also in Note P to the Basic Financial Statements.

Risk Management: The Authority assigns responsibilities for risk management to several different employees as well as insurance and claims consultants to manage property, liability, and worker's compensation claims and other risks inherent to the Authority's normal course of business. The Authority is covered as required by the State of North Carolina. The Authority maintains property insurance coverage in the amount of $40 million. The Authority participates in the North Carolina Housing Association Risk Retention Pool (NCHARRP) to obtain stable and affordable general liability coverage; the Authority maintains general liability coverage at a combined limit of $5 million. No claims or settlements were in excess of the insurance coverage for 2011 or for any of the three prior years.

Awards: The Government Finance Officers Association of the United States and Canada (GFOA) awards Certificates of Achievement for Excellence in Financial Reporting to entities that publish an easily readable and efficiently organized comprehensive annual financial report whose contents conform to program standards and satisfy GAAP and applicable legal requirements. The Certificate of Achievement is a prestigious national award recognizing conformance with the highest standards for preparation of state and local government financial reports.

The Authority has never received this award. However, the Authority is engaged in a project to produce a report that conforms to the program's requirements at some point in the future.

Acknowledgments: The preparation of this report has been accomplished through the hard work of the Finance & Administration staff and the support of other staff members throughout the Authority. We wish to thank the management and staff of CliftonLarsenAllen LLP, who provided necessary expertise and technical assistance. We would also like to take this opportunity, on behalf of the staff and residents served by the Durham Housing Authority, to acknowledge the members of the Board of Commissioners for their tireless support and guidance.

Respectfully submitted,

Jeffrey G. Causey, CPA, CAPM Chief Financial Officer

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SECTION II - FINANCIAL SECTION

Independent Auditors’ Report

Management's Discussion and Analysis

Basic Financial Statements

Combining Financial Statements

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INDEPENDENT AUDITORS’ REPORT Board of Commissioners Durham Housing Authority Durham, North Carolina Report on the Financial Statements We have audited the accompanying financial statements of the Durham Housing Authority (the Authority), as of and for the years ended December 31, 2012 and 2011, 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. Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit 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.

CliftonLarsonAllen LLP www.cliftonlarsonallen.com

An independent member of Nexia International

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Authority as of December 31, 2012, and the changes in its financial position and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis on pages 21 ‐ 27 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s basic financial statements. The combining financial statements, budgetary information, financial data schedules and HUD cost certifications are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining financial statements, budgetary information, financial data schedules and HUD cost certifications are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the Financial Data Schedules and HUD Cost Certifications are fairly stated, in all material respects, in relation to the basic financial statements as a whole. The introductory section and tables included in the statistical section 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.

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Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated June 26, 2013 on our consideration of the Authority’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

a CliftonLarsonAllen LLP Baltimore, Maryland June 26, 2013

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Management's Discussion and Analysis December 31, 2012

Overview of the Financial Statements

Management of the Housing Authority of the City of Durham, North Carolina (the Authority) is pleased to offer readers of the Authority's financial statements this narrative overview and analysis of its basic financial statements for the fiscal year ended December 31, 2012, which have been prepared in accordance with U.S. generally accepted accounting principles (GAAP). GAAP requires the inclusion of three basic financial statements: the statement of net position (balance sheet); the statement of revenues, expenses and changes in net position (income statement); and the statement of cash flows. In addition, GAAP requires the inclusion of management's discussion and analysis (MD&A) as required supplementary information.

This discussion and analysis is intended to serve as an introduction to the Authority's basic financial statements and financial performance for the year ended December 31, 2012, with comparative data from the year ended December 31, 2011 and December 31, 2010. We suggest reading this in conjunction with the transmittal letter in the Introductory Section and the Authority's basic financial statements, which immediately follow this section.

Financial Highlights

Assets of the Authority exceeded liabilities at December 31, 2012 by $34.2 million (net assets). Of this amount, $6.6 million (unrestricted net assets) may be used to meet the Authority's on-going obligations.

Total net position increased by $145,434 during 2012.

Capital assets increased by $1,368,650 during the year. This increase was due to several capital projects that were in progress during the year to make improvements at Authority properties.

Operating revenues decreased by $940,348 compared to the prior year. This was primarily due to reductions in funding from the U.S. Department of Housing and Urban Development.

During 2012, operating expenses decreased by $1.8 million compared to 2012.

The Authority experienced an operating loss of $2.6 million during 2012. This was an improvement of $818,010 compared to the operating loss of $3.4 million that occurred during 2011.

The Authority's total debt decreased from $3.3 million to $3.1 million, or about 4.7%, from 2011 to 2012.

Financial Analysis

Statement of Net Position

The statement of net position presents the assets, liabilities, and net position of the Authority at the end of the fiscal year. The purpose of the statement of net position is to give readers a snapshot of the fiscal condition of the Authority as of a certain point in time. It presents end-of-year data for assets, liabilities, and net position (assets minus liabilities). Also shown is the sum of total liabilities and total net position, which equals total assets.

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2012 2011 2010

Assets

Current Assets 9,338,875$ 11,570,267$ 12,431,023$

Non-Current Assets 9,578,658 9,234,313 8,822,705

Capital Assets 21,183,888 19,815,238 20,143,162

Total Assets 40,101,421$ 40,619,818$ 41,396,890$

Liabilities & Net Position

Current Liabilities 2,107,661$ 2,717,840$ 2,210,821$

Non-Current Liabilities 3,726,219 3,779,871 4,090,424

Total Liabilities 5,833,880 6,497,711 6,301,245

Invested in Capital Assets Net of Related Debt 18,066,371 16,542,828 16,623,533

Restricted Net Position 9,587,546 9,483,408 8,516,047

Unrestricted Net Position 6,613,624 8,095,871 9,956,065

Total Net Position 34,267,541 34,122,107 35,095,645

Total Liabilities & Net Position 40,101,421$ 40,619,818$ 41,396,890$

December 31

Table 1: Summary Statement of Net Position

Total assets of the Authority at December 31, 2012 were $40,101,421. This represents a decrease of $518,397 or 1.3% compared to December 31, 2011.

The reduction in Total Assets for the Authority was comprised of a reduction of 19.3% ($2,231,392) in Current Assets. Over half of the reduction in current assets came in unrestricted cash, which declined to $5,824,793 from $7,185,835 during the year. This was primarily due to construction at the Edgemont Elms Apartments property. Restricted Cash decreased slightly by 8.8% during the year due to HCV program HAP payments to landlords exceeding the amounts received from HUD. The Authority is allowed to use restricted cash from prior years to make up the difference when payments exceed proceeds received. The Authority also experienced a decrease of approximately 60% in net accounts receivable from 2011 to 2012 due to reductions in grants outstanding. Non-Current Assets increased by $344,345 (3.7%) due to increases in notes receivable in the HOPE VI grant program. Capital Assets increased by $1,368,650, (6.9%) due to the investment in the Edgemont Elms Apartments.

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

2012 2011 2010

Total Assets

Figure 1: Total Assets

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Total liabilities for the Authority are $5,833,880, a decrease of $663,831 or 10.2% compared to the prior year. Current liabilities include accounts payable, accrued expenses, unearned revenues, funds held for others in the form of tenant security deposits, other liabilities, and the current portion of long-term debt. As a whole, current liabilities decreased 22.6% compared to the prior year. Most of the reduction is due to reductions in accounts payable and accrued expenses as fewer accruals for capital fund projects existed at year end. Unearned revenues decreased by $158,048 due to a grant ending during 2012 for which the Authority had received funds in 2011. Non-Current Liabilities decreased by 1.4% ($53,652) primarily due to reductions in long-term debt.

Net position for the Authority at December 31, 2012 only increased by $145,434 or 0.4%, but the composition changed significantly. Net position represents the Authority's equity and are divided up into three categories. The first category, Invested in Capital Assets Net of Related Debt, represents the Authority's investment in capital assets including land, buildings, construction in progress, and equipment, net of any related capital debt outstanding. This category increased by $1,523,543, due to the investments in the Edgemont Elms Apartments community. The second category is Restricted Net Position which are assets that have some external limitations on the way in which they may be used. The Authority had an increase in Restricted Net Position of $104,138 that was primarily the result of an increase in the HOPE VI grant program and increases in restricted funds in the HCV Program. The final category is Unrestricted Net Position which are assets available for use on any lawful and prudent purpose of the Authority. This category decreased by $1,482,247 or 18.3%. Most of this reduction is due to drawdowns of available funds for projects like the Edgemont Elms Apartments, the purchase of the Lincoln Apartments property, or the use of available funds for deficits experienced by different units.

Statement of Revenues, Expenses, and Changes in Net Position

The statement of revenues, expenses and changes in net position is designed to present the revenues and expenses earned by the Authority, both operating and non-operating. Generally, operating revenues are amounts received for providing housing to the Authority's tenants and operating

$-

$5,000,000

$10,000,000

$15,000,000

2012 2011 2010

Unrestricted Net Position

-

5,000,000

10,000,000

2012 2011 2010

Total Liabilities

Figure 2: Total Liabilities

Figure 3: Unrestricted Net Position

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expenses are those expenses incurred to maintain the housing units and provide other services to those tenants. Non-operating revenues and expenses are funds received or spent for which goods and services are not provided.

Summary Statement of Revenues, Expenses and Changes in Net Position

2012 2011 2010

Operating Revenues

Tenant rent 4,669,756.0$ 4,505,300.0$ 4,589,815.0$

Operating grants & subsidies 31,025,492 32,042,316 33,627,721

Fee Revenue 2,777,682 2,603,228 3,662,408 Other revenues 366,714 629,148 603,094

Total operating revenues 38,839,644 39,779,992 42,483,038

Operating Expenses

Administration 8,489,864 8,886,218 10,799,488

Tenant services 1,060,938 1,189,793 1,205,944

Utilities 3,353,138 3,320,488 3,499,841

Maintenance & operations 5,539,541 6,338,402 6,027,077

Protective services 227,809 216,640 169,538

General expense 1,597,550 1,632,583 1,564,042

Housing assistance payments 17,759,833 18,536,427 19,072,050 Depreciation & amortization 3,375,544 3,042,024 2,980,991

Total operating expenses 41,404,217 43,162,575 45,318,971

Net Operating income (loss) (2,564,573) (3,382,583) (2,835,933)

Non-operating revenues (expenses)

Investment income 8,040 13,332 25,800

Mortgage interest income 353,876 - -

Interest expense (103,070) (118,083) (137,184)

Casualty Loss (23,647) 36,932 - Gain on sale of capital assets - 42,095 367,246

Total non-operating revenues (expenses) 235,199 (25,724) 255,862

Change in net assets before contributions and transfers (2,329,374) (3,408,307) (2,580,071) Capital grants contributions 2,474,808 2,434,769 4,044,147

Change in net position 145,434 (973,538) 1,464,076 Net Position beginning of year 34,122,107 35,095,645 33,631,569

Net Position, end of year 34,267,541$ 34,122,107$ 35,095,645$

Year Ended December 31

Table 2: Summary Statement of Revenues, Expenses and Changes in Net Position

During 2012, operating revenues decreased by $940,348, or 2.4% compared to the prior year. One major change occurred in the area of Operating grants & subsidies which experienced a reduction of $1,016,824 due to reductions in funding received from HUD. Other revenues decreased primarily due to other funding sources that provided grants reduce their outlays as well and opt to not renew grants.

Operating expenses decreased by 4.1% during 2012, or $1,758,996. The majority of functional expenses declined during 2012. Maintenance & operations decreased by $798,861 compared to 2011 for a 12.6% reduction due to efforts to control maintenance costs, notably in the area of vacant unit preparation

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where costs to completion a unit declined from $2,028 to $1,893. Housing assistance payments also declined by a sizable amount, $776,594, compared to 2011 as program participants obtained less expensive housing. Tenant services declined by 10.8% or $128,855 during 2012 as grants ended and associated expenses were eliminated. One area that saw a significant increase was Depreciation and amortization, growing by 11.0% or $333,520 compared to 2011, due to new depreciation costs related to the Edgemont Elms Apartments improvement and the purchase of Lincoln Apartments.

Non-operating revenues and expenses increased during 2012 by $260,923. This was primarily due to the recognition of mortgage interest income as accrued interest for HOPE VI properties.

Figure 4: Operating revenues

Figure 5: Operating expenses

Capital Assets

Depreciation expense for the year ended December 31, 2012 was $3,375,544. The table below shows the Authority's capital assets and accumulated depreciation at the end of the fiscal year as compared to the end of the two previous fiscal years.

$- $5,000,000

$10,000,000 $15,000,000 $20,000,000 $25,000,000 $30,000,000 $35,000,000 $40,000,000 $45,000,000

2012 2011 2010

Total operating revenues

$-

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000

$35,000,000

$40,000,000

$45,000,000

$50,000,000

2012 2011 2010

Total operating expenses

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Summary Statement of Capital Assets

2012 2011 2010

Land 1,961,936$ 1,869,236$ 1,869,236$

Buildings & improvements 73,246,534 68,602,746 65,941,826

Equipment 1,832,689 1,838,750 1,802,537

Total capital assets 77,041,159 72,310,732 69,613,599

Accumulated depreciation (55,857,271) (52,495,494) (49,470,437)

Total capital assets net of depreciation 21,183,888$ 19,815,238$ 20,143,162$

December 31

Table 3: Statement of Capital Assets

Note G to the Authority's basic financial statements provides additional detail regarding the changes in capital assets during the year.

Debt Administration

The Authority uses short- and long-term borrowings to finance property acquisitions and to make improvements to properties. During 2012, long-term debt outstanding decreased by $154,893. This included the elimination of $33,333 in principal related to a loan from the NC Housing Finance Agency for Preiss-Steele Place. The table below summarizes outstanding long-term debt at the end of the fiscal year as compared to the end of the two previous fiscal years.

Summary Statement of Long-Term Debt

2012 2011 2010

Notes Payable 3,117,517$ 3,272,410$ 3,519,629$

Total long-term debt 3,117,517$ 3,272,410$ 3,519,629$

December 31

Table 4: Statement of Long-Term Debt

Note P to the Authority's basic financial statements provide additional detail regarding the changes in debt during the fiscal year.

Economic Factors Affecting the Authority

The following key economic indicators and other factors are expected to impact the economic situation of the Authority:

Actions to make changes to the fundamental size of the Federal budget and deficit will continue to result in constraints on funding made available to the Authority;

The economic climate, which has shown only very slight positive changes in recent months, appears to have reached a new baseline, which will likely result in a new, unplanned level of demand for services despite funding reductions that limit the Authority’s ability to respond;

The possibility that Federal agencies and officials may make changes in programs to increase flexibility in the use of funds and Authority operational requirements in light of severe funding cutbacks will benefit the agency if they come to pass.

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Requests for Information

This financial report is designed to provide a general overview of the Authority's finances for all those interested. Questions concerning any of the information presented in this report or requests for additional information should be directed to:

Jeffrey G. Causey Chief Financial Officer 330 East Main Street Durham, NC 27701 Phone: (919) 683-1551 ext. 320 TDD/TTY: (800) 545-1833 ext. 774 E-mail: [email protected]

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mailto:[email protected]

29

BASIC FINANCIAL STATEMENTS

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EXHIBIT A - STATEMENT OF NET POSITION Durham Housing Authority

Durham, North Carolina

2012 2011

ASSETS

Current Assets

Cash & cash equivalents 5,824,793$ 7,185,835$

Cash & cash equivalents - restricted 2,308,776 2,532,930

Investments 727,604 726,827

Accounts receivable (net) 382,071 956,445

Inventory & prepaid items 95,631 168,230

Total Current Assets 9,338,875 11,570,267

Noncurrent Assets

Capital Assets

Land 1,961,936 1,869,236

Buildings 73,246,534 68,602,746

Furniture, equipment & machinery 1,832,689 1,838,750

Accumulated depreciation (55,857,271) (52,495,494)

Total Capital Assets (net) 21,183,888 19,815,238

Notes Receivable 9,378,751 9,031,634

Other assets 199,907 202,679

Total Noncurrent Assets 30,762,546 29,049,551

Total Assets 40,101,421$ 40,619,818$

LIABILITIES & NET POSITION

Liabilities

Current Liabilities

Accounts payable 1,103,801$ 1,541,063$

Accrued expenses 277,980 249,272

Unearned revenues 118,897 276,945

Tenant security deposits 394,133 379,237

Other current liabilities 87,702 120,216

Current portion of long-term debt 125,148 151,107

Total Current Liabilities 2,107,661 2,717,840

Noncurrent Liabilities

Long-term debt, net of current portion 2,992,369 3,121,303

Other noncurrent liabilities 407,759 397,070

Accrued compensated absences, net of current portion 326,091 261,498

Total Noncurrent Liabilities 3,726,219 3,779,871

Total Liabilities 5,833,880 6,497,711

Net Position

Capital assets net of related debt 18,066,371 16,542,828

Net position - restricted 9,587,546 9,483,408

Net position - unrestricted 6,613,624 8,095,871

Total Net Position 34,267,541 34,122,107

Total Liabilities and Net Position 40,101,421$ 40,619,818$

December 31,

The accompanying notes are an integral part of the financial statements.

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EXHIBIT B – STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION Durham Housing Authority


Account Description 2012 2011

Operating Revenue

Tenant rent 4,669,756$ 4,505,300$

Operating grants 31,025,492 32,042,316

Fee revenue 2,777,682 2,603,228

Other revenue 366,714 629,148

Total Operating Revenue 38,839,644 39,779,992

Operating Expenses

Administration 8,489,864 8,886,217

Tenant services 1,060,938 1,189,794

Utilities 3,353,138 3,320,488

Maintenance 5,539,541 6,338,402

Protective services 227,809 216,640

General expense 1,597,550 1,632,583

Housing assistance payments 17,759,833 18,536,427

Depreciation & amortization 3,375,544 3,042,024

Total Operating Expenses 41,404,217 43,162,575

Operating Income/(Loss) (2,564,573) (3,382,583)

Nonoperating Revenues/(Expenses)

Investment income 8,040 13,332

Mortgage interest income 353,876 -

Interest expenses (103,070) (118,083)

Casualty losses (23,647) 36,932

Gain/loss on sale of assets - 42,095

Total Nonoperating Revenues/(Expenses) 235,199 (25,724)

Change in net position before capital contributions (2,329,374) (3,408,307)

Capital contributions 2,474,808 2,434,769

Change in net position 145,434 (973,538)

Total net position, beginning of year 34,122,107 35,095,645 Prior Period Adjustment - -

Total net position, end of year 34,267,541$ 34,122,107$

For the year ended December 31,


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EXHIBIT C - STATEMENT OF CASH FLOWS Durham Housing Authority


2012 2011

Cash Flows from Operating Activities

Receipts from customers and users 8,367,893$ 7,930,938$

Receipts from grants and subsidies 31,025,492 32,807,827

Payments to suppliers (15,441,434) (14,319,090)

Payments for housing assistance (17,759,833) (18,538,124)

Payments to employees (5,270,026) (7,511,688)

Net cash provided/(used) by operating actvities 922,092 369,863

Cash Flows from Non-Capital Financing Activities

Change in other liabilities (2,414) (86,346)

Change in accrued interest expense - (1,510) Interest expense paid (103,070) (118,083)

Net cash provided/(used) by noncapital financing activities (105,484) (205,939)

Cash Flows from Investing Activities

Purchases of investments (777) 59,155

Decrease in Long Term Notes Receivable (338,026) (344,542)

Mortgage interest income 353,876 - Interest received 8,040 13,332

Net cash provided/(used) by investing activities 23,113 (272,055)

Cash Flows from Capital and Related Financing Activities

Gain from elimination of notes payable - 66,667

Gain/(loss) from sale of assets - 42,095

Changes in long term debt payable (154,893) (247,219)

Grant revenue - capital grants 2,474,808 2,434,769

Purchases of capital assets (4,744,832) (2,711,328)

Net cash provided/(used) by capital and related financing activities (2,424,917) (415,016)

Net Increase/(Decrease) in Cash (1,585,196) (523,147)

Cash at beginning of period 9,718,765 10,241,912

Cash at end of period 8,133,569 9,718,765

Reconciliation of operating income to net cash provided by/(used in) operating activities

Net income/(loss) from operations (2,564,573) (3,382,583)

Adjustments to reconcile net income/(loss) to net cash provided by operating activities:

Depreciation/Amortization 3,375,544 3,042,024

Casualty losses (23,647) 36,932

Changes in assets and liabilities:

Decrease (Increase) in accounts receivable 552,442 183,319

Decrease (Increase) in inventory & prepaid expenses 72,599 (88,694)

Decrease (Increase) in Interprogram Due From (10,032) -

Decrease (Increase) in other noncurrent assets 25,645 -

Increase (Decrease) in accounts payable (436,624) 410,628

Increase (Decrease) in accrued expenses 52,986 (32,798)

Increase (Decrease) in unearned revenue (158,048) 143,430

Increase (Decrease) in security/trust deposits 14,896 10,282

Increase (Decrease) in other current liabilities 131 (66,667)

Increase (Decrease) in other noncurrent liabilities 20,773 -

Net cash provided/(used) by operating actvities 922,092$ 255,873$

For the year ended December 31,


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North Carolina

Notes to Basic Financial Statements

December 31, 2012

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Notes to Basic Financial Statements Note A Summary of Organization, Significant Accounting Policies and Reporting Entity

1. Introduction

The financial statements of the Authority have been prepared in conformity with generally accepted accounting principles (GAAP). The Authority is required to follow all statements of the GASB. GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements, was issued to incorporated GASB and AICPA guidance into GASB authoritative literature

The Authority has elected not to follow any FASB pronouncements issued after November 30, 1989.

The more significant of the government's accounting policies are described below.

2. Organization

The Durham Housing Authority is authorized by and operates under the provisions of Chapter 121B of the North Carolina General Statutes, as amended, which is known as the Housing and Urban Renewal Law. The Durham Housing Authority (the “Authority”) is a public body and a body corporate and politic organized under the laws of the State of North Carolina by the City of Durham for the purpose of providing adequate housing for qualified low-income individuals. The City provides no financial support to the Authority and is not responsible for the debts or entitled to the surpluses of the Authority. The Authority has the power to approve its own budget and maintains its own accounting system. Although the City of Durham appoints the governing board of the Authority, no other criteria established by Governmental Accounting Standards Board for inclusion of the Authority in the financial reports of the City of Durham are met. Therefore, a separate financial report is prepared for the Authority. Additionally, the Authority has entered into annual contribution contracts with the U.S. Department of Housing and Urban Development (“HUD”) to be the administrator of the housing and housing related programs described herein. The Authority is not subject to Federal or State income taxes and is not required to file Federal or State income tax returns.

The Authority is governed by a seven-member Board of Commissioners. The Board hires the Chief Executive Officer who is responsible for the daily administration of the Authority.

The Authority currently administers the following housing programs:

Low-Rent Public Housing Program

Section 8 Housing Choice Voucher Program

Capital Fund Program

Capital Fund Stimulus Program

HOPE VI Program

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Shelter Plus Care Program

Resident Opportunities and Self-Sufficiency (ROSS) Program

3. Description of the Authority

Funding for the Durham Housing Authority is primarily from the United States Department of Housing and Urban Development (HUD) and from payments received from tenants of the Authority owned housing. Under the Low Rent Housing Program, low income tenants pay a portion of the rental cost of public housing, based upon the income and need of the tenants. HUD funds the difference between the actual costs to operate the Low Rent Housing Program and the amounts paid by tenants through operating subsidies. These subsidies and debt service payments are made to or on behalf of the Authority under the terms and conditions of the annual contributions contract with HUD.

The Section 8 Housing Choice Voucher Program provides rental supplements to the owners of existing private housing who rent to qualifying individuals. The Authority processes all applicants for the Section 8 Housing Assistance Payments Program, places approved applicants in housing and pays the owner of the private housing a monthly rental supplement. Under the conditions of an annual contributions contract, HUD reimburses the Authority for the rental supplements and the administrative cost of managing the Program.

4. Reporting Entity

In determining how to define the reporting entity, management has considered all potential component units by applying the criteria set forth in Government Accounting Standards Board Statement Number 61, the Financial Reporting Entity: Omnibus – an amendment of GASB Statements No. 14 and No. 34:

• Financial Accountability - The Authority is responsible for its debts, does not impose a financial burden on the City of Durham and is entitled to all surpluses. No separate agency receives a financial benefit or imposes a financial burden on the Authority.

On the basis of the application of these criteria, the Authority is a legally separate entity that is fiscally independent of other governments, and there are no other entities that are to be reported as a component units, except as noted below, nor is the Authority to be included in the City of Durham financial reports; therefore, the Authority reports independently.

5. Basis of Presentation

Basis of Accounting - The Authority uses the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded when liabilities are incurred, regardless of when the related cash flow takes place.

Basis of Presentation – The statements of the Authority are presented as a single proprietary fund financial statement consisting of various programs. This financial statement presentation provides an indication of the financial performance of the Authority as a

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whole. The operations of the Authority are accounted for in the three basic financial statements: the statement of net assets; the statement of revenues, expenses and changes in net assets; and the statement of cash flows. These statements report information on all activities fo the Authority and its component units.

The Authority reports the following Major funds:

• Public Housing – The objective of the program is to provide decent, safe and sanitary housing and related facilities for eligible low-income families and the elderly. The Public Housing program includes activity of the American Recovery and Reinvestment Act (ARRA). The Authority received an allocation of funds through the ARRA. Funding pursuant to this Act was provided by the U.S. Department of Housing and Urban Development through the Capital Fund Program as an additional grant. The funds are to be used for capital projects at the Authority's public housing properties. The Authority is using the funds to supplement and accelerate capital improvements.

• HOPE VI – The objective of the HOPE VI program is to build new low-income housing units and provide additional housing stock. The purpose of Urban Revitalization – HOPE VI is to revitalize distressed communities and joint venture with private lenders and partners in the development of mixed-financing and mixed income properties. Funding for this program is provided by grants from HUD. The initial phase of this program provided for the demolition of the stressed units. During the audit period, the Authority was awarded an additional award to build new units.

• Housing Choice Voucher Program – The objective of the program is to help low-income families obtain decent, safe, and sanitary housing through a system of rental assistance. HUD has entered into an Annual Contributions Contract (ACC) with the Authority that reimburses the Authority for the rental supplements paid to private landlords and the administrative costs of managing the program.

• Central Office Cost Center – The objective of this program is to provide administrative, management, and supportive services to the other programs operated by the Authority as well as address functions at an Authority wide level. Funding for the program is received through a variety of management fees charged to the other programs or through fees for services for some functions.

• Component Units – as described below.

The Authority reports the following Nonmajor funds:

• Shelter Plus Care Program - The objective of this program is to provide housing for persons who are homeless and disabled through housing assistance payments to private landlords. The program is also designed to partner with local human services agencies to provide supportive services to clients in the program. This program is included in the non-major fund column of the upper-level financial statements.

• ROSS Program – The objective of the ROSS (resident opportunities and self-sufficiency) Program is to enable participating families to increase earned income, reduce or

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eliminate the need for welfare assistance, make progress toward achieving economic independence and housing self-sufficiency, or, in the case of elderly or disabled residents, help improve living conditions and enable residents to age-in-place.

• State/Local – The Housing Authority of the City of Durham operates programs which are not funded by HUD and are included in the Nonmajor funds as presented in the financial statements.

• Community Development Block Grant/Entitlement Grants – The Authority operates a program called the Community Learning Center Teen Initiative, designed to address issues negatively impacting teens ages 13-17 including lack of family and community support, lack of social and other life skills, high drop-out rates, and barriers to job opportunities. The program is at least partially funded by Community Development Block Grant funds via the City of Durham.

• Business activities – These funds consist of local operations and include the Turnkey III program, HOPE VI Program Income, and the Bond Fund. Turnkey III provides loans to various organizations in and around the City of Durham that provide sources of funding for the development and purchase of homes by low-income residents of the City of Durham. HOPE VI Program Income accounts for non-Federal funds generated as a result of the Authority's participation in the HOPE VI grant program. The Bond Fund’s objective is to improve the physical condition of the Low Income Public Housing units and upgrade the management of the program.

6. Component Units

The Housing Authority of the City of Durham financial statements also include programs which are not funded by HUD and are both major and nonmajor funds. These Component Units are treated as blended component units in the financial statements due to the fact that the ownership consists of the same Board of Directors and Commissioners as the Authority. The component units are as follows:

• Development Ventures Incorporated - not for profit 501(c)(3)

• Learning Assistance, Inc. - not for profit 501(c)(3)

• Edgemont Elms Housing, Inc. - not for profit 501(c)(3)

• Preiss-Steele Place Housing, Inc. - not for profit 501(c)(3)

These component units help fulfill the original charter of the Authority in that they assist in purchasing land and buildings which are used to enhance the amount of affordable housing in the Durham communities, and they provide benefits and assistance to those qualifying individuals who are of low and moderate income.

7. Basis of Accounting and Measurement Focus

Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless

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of the measurement focus applied.

The Proprietary Fund Types are accounted for on an economic resources measurement focus using the accrual basis of accounting. Under this method, revenues are recorded when earned, and expenses are recorded when liabilities are incurred.

8. Use of Estimates in Preparing Financial Statements

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 and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

9. Encumbrances

Encumbrances represent commitments related to unperformed contracts for goods or services. The Authority does not utilize encumbrance accounting.

10. Revenues and Expenses

Revenues and expenses are recognized in essentially the same manner as used in commercial accounting. Revenues relating to the Authority's operating activities including rental related income, interest income and other sources of revenues are recognized in the accounting period in which they are earned. Other major sources of revenues include the operating subsidy from HUD and other HUD funding for capital and operating expenses.

11. Budgets

The Authority is required by its HUD Annual Contributions Contracts to adopt an annual budget for the Low Rent Housing Program. In addition, the Authority is required by its HUD Annual contributions Contracts to adopt annual budgets for the Section 8 Housing Choice Voucher Program. Annual budgets are not required for capital projects funds as their budgets are approved for the length of the project. Both annual and project length budgets require grantor approval.

Appropriations are authorized at the function level. Management may transfer budget authorizations between functions. All appropriations which are not used lapse at year end. Budgeted amounts are as originally adopted or as amended by the Board and approved by HUD.

12. Cash & Investments

The Authority's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with an original maturity of three months or less when purchased to be cash equivalents.

Investments are stated at market value, except for U. S. Treasury Bills, which are reported at amortized cost. The Authority reports all money market investments having a remaining maturity at time of purchase of one year or less at amortized cost. Investment securities are normally held to maturity at par value and adjustments are made to the

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investment portfolio to reflect increases/ (decreases) in gains made.

13. Compensation for Futures Absences

It is the Authority's policy to permit employees to accumulate earned but unused vacation benefits which will be paid to the employees upon separation from Authority service. These benefits have been accrued and recorded in each respective program.

14. Deferred Charges

Payments made to vendors for services that will benefit periods beyond December 30, 2011, are recorded as deferred charges.

15. Inventories

Inventories are valued at the lower of cost (first-in, first-out) or market. Inventories consist primarily of maintenance materials and supplies held for consumption. The cost of these supplies is regarded as an expense at the time the items are consumed. Inventories are classified as deferred charges on the Statement of Net Assets.

16. Capital Assets

All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their estimated market value on the date donated.

Capital assets are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the respective assets ranging as follows: buildings, 15-27.5 years; equipment, 7 years; automobiles, 5 years; and site improvements, 10 years. The costs of assets retired or otherwise disposed of and the related accumulated depreciation have been eliminated from the respective accounts. Gains or losses resulting from such dispositions are recognized in current income.

The Capitalization Policy for the Authority is items purchased or betterments, not repairs, in excess of $5,000.00 and a useful life of one (1) year will be capitalized. The cost of maintenance and repairs are charged to operations as incurred. Costs of major additions, improvements, and betterments are capitalized.

Interest cost is capitalized on proprietary fund capital assets. Interest is not capitalized on assets acquired or constructed with gifts and grants (contributed capital) that are restricted by the donor or grantor to acquisition of those assets to the extent that funds are available from such grants and gifts. No interest was capitalized during the audit period.

17. Operating Revenue

Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Authority are charges to customers for rents. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are

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reported as non-operating revenues and expenses.

Subsides received from HUD or other grantor agencies, for operating purposes, are recorded as operating revenue in the operating statement while capital grant funds are added to the net assets below the non-operating revenue and expense.

18. Reclassifications

Certain reclassifications have been made to prior year summarized balances in order to conform to current year presentation. The reclassifications did not affect net position or changes therein.

19. New Accounting Pronouncements

In fiscal year 2012, the Authority implemented GASB Statements Nos. 61, 62, and 63 as follows:

GASB Statement No. 61, The Financial Reporting Omnibus – an amendment of GASB Statements No. 14 and No. 34 modifies certain requirements for inclusion of component units in the financial reporting entity. This includes the concept of financial burden or benefit on the relationship between the primary government and the component unit. The implementation of this new standard had no impact on the Authority’s 2012 financial statements.

GASB Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre-November 30, 1989 FASB and AICPA Pronouncements incorporates into GASB authoritative literature certain accounting and financial reporting guidance previously included in FASB, APB, and AICPA guidance issued before November 30, 1989. The implementation of this new standard modified certain language in disclosures related to the applicable basis of accounting in the Authority’s 2012 financial statements.

GASB Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position revised the financial reporting for elements of the financial statements as a consumption or acquisition of net assets that are applicable to a future reporting period. These items are distinct from assets and liabilities. This statements also identifies net position. The implementation of this new standard revised the presentation in the financial statements for those items identified as deferred outflows and inflows and revised the names of the statements presented and certain classifications within those statements.

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Note B Accounts Receivable

Accounts receivable at December 31, 2012 and 2011, consisted of the following:

2012 2011

Acct. Rec. - HUD 179,764$ 720,978$

Acct. Rec. - other government - 38,067

Acct. Rec. - miscellaneous 95,171 109,932

Acct. Rec. - tenants 149,150 96,894

Allow. For doubtful accounts - tenants (53,591) (27,407)

Allow. For doubtful accounts - other (8,433) (8,433)

Notes & Mortgages Rec. 5,416 9,091

Fraud recovery 790,848 779,491

Allow. For doubtful accounts - fraud (776,254) (762,168)

Total Accounts/Notes Receivable (net) 382,071$ 956,445$

Note: The above receivable balance excludes $2,121,945 of interfund balances that have been eliminated as a result of financial statement consolidation.

Note C Cash and Investments

1. Cash

All the deposits of the Authority are either insured or collateralized using the Dedicated Method whereby all deposits that exceed the Federal depository insurance coverage level are collateralized with securities held by the Authority’s agents in these units' names. The Authority has no policy regarding custodial credit risk for deposits.

At December 31, 2012, the Authority's deposits had a carrying amount of $8,861,173 and bank balances of $8,991,529. Of the bank balances held in various financial institutions, $556,484 was covered by Federal depository insurance and the remainder was covered by collateral held under the Dedicated Method. At December 31, 2012, the Authority’s petty cash funds totaled $350.

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Bank balances at December 31, 2012 and 2011 were as follows:

2012 2011

Bank Balances

Checking accounts 7,741,046$ 9,528,684$

Money market accounts 522,529 522,059

Certificates of deposit 727,604 726,827

Petty cash funds 350 350

Total bank balances 8,991,529 10,777,920

Reconciliation to book balance:

Deposits in transit 4,643 4,950

Bank errors - 77

Outstanding checks (134,999) (337,355)

Total book balance 8,861,173$ 10,445,592$

2. Investments

At December 31, 2012, the Authority's investment balances were as follows:

Investment Type Fair Value Maturity Rating

Certificates of Deposit 727,604$ Various N/A

Interest rate risk- As a means of limiting its exposure to fair value losses arising from rising interest rates, the Authority’s typically limits its investment portfolio to maturities of 12 months or less. The Durham Housing Authority has no specific policy regarding interest rate risk.

Credit risk – The Authority has no policy regarding credit risk. The Authority investments were limited to savings and Certificates of Deposits that were 100% collateralized.

Custodial credit risk - For an investment, the custodial risk is the risk that in the event of the failure of the counterparty, the Authority will not be able to recover the value of its investment or collateral securities that are in the possession of an outside party. All investments in repurchase agreements are collateralized by the securities are held by the counterparty, or by its trust department. The Authority has no policy on custodial credit risk.

Concentration of credit risk – The Authority places no limit on the amount that the Authority may invest with any one issuer. As of December 31, 2012, 92% of the Authority’s investments were invested at Suntrust Bank and 8% of the investments were held by BB&T. The Authority has no policy regarding concentration of credit risk.

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3. Collateralization

As of December 31, 2012, the following securities were pledged as collateral to secure the deposits of the Authority:

Institution/Instrument CUSIP Maturity Date Interest Rate Market Value

M&F Bank

GNMA 36225EXH0 02/20/2040 3.75% 599,645$

GNMA 36225EXJ6 02/02/2040 4.00% 604,929

GNMA 36225EZZ8 06/20/2040 4.00% 743,932

GNMA 36225FHH5 09/20/2041 3.50% 2,462,145

4,410,651$

SunTrust

FHLMC 31336RWS5 11/01/2031 2.87% 198,867$

FNMA 31377UHE6 04/01/2018 5.21% 400,947

FNMA 3138A4N76 01/01/2041 5.00% 326,586

FNMA 31412UTW0 09/01/2039 4.01% 4,952,483

FNMA 31415AZ61 08/01/2037 2.13% 480,766

GNMA 36202DDH1 08/20/2014 6.50% 20,913

GNMA 38374FDR2 08/16/2032 4.81% 510,150

6,890,712$

Note D Inventory & Prepaid Items

Inventory & Prepaid Items at December 31, 2012 and 2011, consisted of the following:

2012 2011

Prepaid expenses and other assets 70,672$ 139,810$

Inventories 24,959 28,420

Total Inventory & prepaid items 95,631$ 168,230$

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Note E Mortgages and Notes Receivable

At December 31, 2012 and 2011, the Authority had various notes receivable balances related to HOPE VI, Turnkey III, and Development Ventures Incorporated loans. The amounts due are as follows:

2012 2011

HOPE VI:

Notes receivable 5,497,092$ 5,497,092$

Accrued interest 2,583,569 2,229,693

Business Activities:

HOPE VI related entities 1,289,335 1,289,336

Home mortgages 11,546 14,104

Jonathan Self 8,433 8,433

Allowance for doubtful accounts (Self) (8,433) (8,433)

Habitat for Humanity 2,625 10,500

Total notes receivable 9,384,167 9,040,725

Less current portion (5,416) (9,091)

Total notes receivable - noncurrent portion 9,378,751$ 9,031,634$

1. HOPE VI

The HOPE VI program has various loans with the HOPE VI partnerships which are considered to be related entities but not component units. The loans outstanding at December 31, 2012, were $5,497,092 with accrued interest of $2,583,569, for a total of $8,080,661. There were no amounts considered to be currently receivable due to the nature of the arrangements. All accrued interest is considered long-term due to the fact that the notes will be collected off of future cash flows from operations and then the accrued interest will be due from the partnerships. These notes receivable consist of the following:

• Note Receivable from TCB-DVI Main Street Townhomes, LLC issued on January 1, 2004 in the amount $1,332,793 with interest at 1.38 times the applicable AFR (7.37% interest rate) with an outstanding balance at December 31, 2012 of $1,332,793, plus accrued interest of $878,764, with final maturity of December 31, 2049.

• Note Receivable from TCB-DVI Calvert Place, LLC issued on March 4, 2005 in the amount $822,346 with interest at 1.52 times the applicable AFR (7.34% interest rate) with an outstanding balance at December 31, 2012 of $822,346, plus accrued interest of $472,925, with final maturity of December 31, 2050.

• Note Receivable from TCB-DVI Morning Glory, LLC issued on December 29, 2004 in the amount of $710,473 with interest at 1.70 times the applicable AFR (9.08% interest rate) with an outstanding balance at December 31, 2012 of $710,473, plus accrued interest of $516,088, with final maturity of December 31, 2050.

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• Notes Receivable from TCB-DVI Holman Homes, LLC issued on June 26, 2007 in the amount of $2,239,004 with an interest rate of 4.91% from the day of each advance. The outstanding balance at December 31, 2012 of $2,239,004, plus accrued interest of $604,643, with a final maturity of June 26, 2047.

• Notes Receivable from TCB-DVI Holman Homes, LLC (RHF) issued on June 26, 2007 in the amount of $392,476 with an interest rate of 5.31% from the day of each advance. The outstanding balance at December 31, 2012 of $392,476, plus accrued interest of $111,149, with a final maturity of June 26, 2047.

The following table summarizes these Notes Receivable related to HOPE VI:

Entity Issue Amount Issue Date

Interest

Rate

Maturity

Date Principal

Accrued

Interest

TCB-DVI Main Street Townhomes, LLC 1,332,793$ 01/01/2004 1.38 x AFR 12/31/2049 1,332,793$ 878,764$

TCB-DVI Calvert Place, LLC 822,346 03/04/2005 1.52 x AFR 12/31/2050 822,346 472,925

TCB-DVI Morning Glory, LLC 710,473 12/29/2004 1.70 x AFR 12/31/2050 710,473 516,088

TCB-DVI Holman Homes, LLC 2,239,004 06/26/2007 4.91% 06/26/2049 2,239,004 604,643

TCB-DVI Holman Homes (RHF) 392,476 06/26/2007 5.31% 06/26/2049 392,476 111,149

5,497,092$ 5,497,092$ 2,583,569$

December 31, 2012Original

2. Business Activities

The Authority is currently holding loans recorded in Business Activities related to the HOPE VI project. The loans outstanding are in the amount of $1,289,335 with no accrued interest. There were no amounts considered to be currently receivable due to the nature of the arrangements. All accrued interest is considered long-term due to the fact that the notes will be collected from future cash flows from operations and then the accrued interest will be due from the partnerships. These notes receivable consist of the following:

• Note Receivable from TCB-DVI Main Street Townhomes, LLC issued on January 1, 2004 in the amount $514,335 at 0% interest with an outstanding balance at December 31, 2011 of $514,335, with final maturity of December 31, 2051.

• Note Receivable from TCB-DVI Morning Glory, LLC via the Durham Housing Authority - $200,000 second mortgage.

• Note Receivable from TCB-DVI Calvert Place, LLC via the Durham Housing Authority - $575,000.

The Authority issued a note to Jonathan Self as a second mortgage for the purchase of a home; however, the note has not been properly paid for several years. At December 31, 2012, the balance was $8,433. The Authority has set up an allowance for the note and is working with the mortgagee on setting up different terms to satisfy the note requirements. The allowance of $8,433 is offset in the current portion.

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The Authority issued a note to Habitat for Humanity for the rehabilitation of low-income housing. The principal payments are $1,575 every quarter with no interest costs. The note will be paid in full on September 30, 2013. The balance of the Habitat for Humanity note at December 31, 2012, was $2,625.

The Authority has issued mortgages to three individuals as part of the HOPE VI program. Two of these notes carry a zero percent (0%) interest rate while the individuals remain in program compliance and a term of 10 to 17 years. The other note was issued with a 6.0% interest rate and a term of 10 years. All of these mortgages were issued in February 2007. The principal balance of the one remaining loan at December 31, 2012, was $11,546. Although connected to the HOPE VI program, these mortgages are accounted for in the HOPE VI Program Income fund as part of Business Activities.

Changes in Notes Receivable Balances are as follows:

2012 2011

Balance at prior year December 31 (current plus

noncurrent) 9,040,725$ 8,696,183$

HOPE VI accured interest earned 353,876 353,876

Net change - business activities items (10,434) (9,334)

Total Notes Receivable 9,384,167 9,040,725

Less current portion (5,416) (9,091)

Balance at December 31 (noncurrent) 9,378,751$ 9,031,634$

Note F Assets Held for Sale

At December 31, 2012, the Authority owned four single-family houses as part of the Turnkey III program in Birchwood Estates. These four houses are valued at $69,793. This amount is included in Other Noncurrent Assets (Note H).

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Note G Capital Assets

A summary of changes in capital assets is as follows:

Beginning

Balances Increases Decreases

Ending

Balances

Capital assets not being depreciated:

Land 1,869,236$ 92,700$ -$ 1,961,936$

Total capital assets not being depreciated 1,869,236 92,700 - 1,961,936

Capital assets being depreciated:

Buildings & Improvements 68,602,746 4,643,788 - 73,246,534

Furniture, fixtures & equipment 1,838,750 7,709 (13,770) 1,832,689

Total capital assets being depreciated 70,441,496 4,651,497 (13,770) 75,079,223

Less accumulated depreciation:

Buildings & Improvements (50,921,072) (3,286,905) - (54,207,977)

Furniture, fixtures & equipment (1,574,422) (88,642) 13,770 (1,649,294)

Total accumulated depreciation (52,495,494) (3,375,547) 13,770 (55,857,271)

Net capital assets being depreciated 17,946,002 1,275,950 - 19,221,952

Total capital assets, net 19,815,238$ 1,368,650$ -$ 21,183,888$

Increases in Land and in Buildings & Improvements were primarily due to capital improvements projects, including the redevelopment of Edgemont Elms Apartments, and the purchase of the Lincoln Apartments property.

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Note H Other Noncurrent Assets

Other assets consisted of the following at December 31, 2012 and 2011:

2012 2011

Organization fees - Preiss-Steele Place 125,954$ 128,726$

Organization fees - Edgemont Elms 4,160 4,160

Assets held for sale 69,793 69,793

Total other noncurrent assets 199,907$ 202,679$

The organization fee for Preiss-Steele Place decreased during the year by $2,772 as a result of amortization.

Note I Accounts Payable

Accounts payable consisted of the following at December 31, 2012 and 2011:

2012 2011

Accounts payable (vendors and contractors) 1,045,677$ 1,493,704$

Accounts payable - HUD 466 -$

Accounts payable - other government 57,658 47,359

Total accounts payable 1,103,801$ 1,541,063$

Note J Accrued Expenses

Accrued expenses consisted of the following at December 31, 2012 and 2011:

2012 2011

Wages & taxes payable 125,734$ 108,519$

Accrued compensated absences 77,284 65,377$

Accrued interest payable 74,962 75,376

Total accrued expenses 277,980$ 249,272$

Note K Unearned Revenue

During the year, the Authority on occasion will receive proceeds prior to being earned. The most common type are tenant payments received in both the Public Housing program and at component unit properties. These payments are recognized as unearned revenue and the Authority recognizes these unearned revenues as income on a periodic basis as they are earned.

The Authority received other grant proceeds for which the corresponding expenditure had not yet been recorded at December 31, 2012.

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Unearned revenue by program consisted of the following at December 31, 2012 and 2011:

2012 2011

Public housing prepaid rent 42,879$ 43,833$

Edgemont Elms prepaid rent 957 1,137

Preiss-Steele Place prepaid rent 13,238 9,746

HOPE VI Community & Supportive Services (CSS) Funds 57,641 100,882

Dropout Prevention Program grant - 121,347

FAME grant 4,182 -

Total unearned revenue 118,897$ 276,945$

Note L Tenant Security Deposits

The Authority collects security deposits from tenants in both the public housing communities and in the affordable housing communities operated by component units. The Authority holds these security deposits in trust until a tenant moves out of an Authority unit. At that point, the security deposit may be used to pay for amounts due by the tenant for repairs to the unit or the security deposit is returned to the tenant. These security deposits are treated as a liability. Tenant security deposits consisted of the following at December 31, 2012 and 2011:

2012 2011

Public housing security deposits 363,697$ 349,131$

Development Ventures Incorporated security deposits 654 654

Edgemont Elms security deposits 7,785 8,335

Preiss-Steele Place security deposits 21,997 21,117

Total tenant security deposits 394,133$ 379,237$

Note M Current Portion of Long-Term Debt

The Authority's component units have incurred long-term debt for capital improvements as explained in Note P – Notes Payable. Principal amounts due within one year are treated as the current portion of that long-term debt. As of December 31, 2012, the amount due within one year for the outstanding Notes Payable was $125,148.

Note N Other Current Liabilities

In 2010, Preiss-Steele Place Housing, Inc., borrowed funds from the Central Office Cost Center to pay for the installation of a replacement chiller unit. The amount, $82,350, is included as a current liability. A repayment schedule has not been established.

Per the terms of the agreements for the Holman Homes development (one of the HOPE VI properties), the Authority continues to hold funds on behalf of The Community Builders, Inc., in the amount of $5,352 in Development Ventures Incorporated.

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Note O Changes in Long-term Liabilities

The following is a summary of changes in Long-term liabilities as of the year ended December 31, 2012:

Beginning

Balances Increases Decreases

Ending

Balances

Current

Portion of

Balance

Long-term debt - capital 3,272,410$ -$ (154,893)$ 3,117,517$ 125,148$

Compensated absences 326,875 76,500 (77,284) 326,091 -

Other non-current liabilities 397,070 10,689 - 407,759 -

Total long-term liabilities 3,996,355$ 87,189$ (232,177)$ 3,851,367$ 125,148$

Additional information regarding Long-term debt – capital is available in Note P – Notes Payable.

Authority employees are eligible to accrue leave balances as an employee benefit (see Note A(12)). The Authority makes estimates regarding projected use of these balances and allocates the accrued balance between a current portion anticipated to be used within the next year and the non-current portion that will be used beyond the next year.

Other non-current liabilities consists of proceeds the Authority has received from participants in the Family Self-Sufficiency (FSS) Program. Participants in the program have a portion of the rent they pay, whether in the Public Housing program or in the Housing Choice Voucher program, placed into escrow accounts by the Authority to be used upon successful completion of the program to transition out of subsidized housing programs. The Authority accounts for these proceeds as a non-current liability since withdrawal by the participants is projected to occur more than one year from December 31, 2012. As of December 31, 2012, these proceeds were allocated between the two programs as follows:

2012 2011

Public housing FSS escrow accounts 105,858$ 75,758$

HCV Program FSS escrow accounts 301,901 321,312

Total other noncurrent liabilities 407,759$ 397,070$

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Note P Notes Payable

1. Edgemont Elms Housing, Inc.

The Authority has three notes payable related to the Edgemont Elms property as follows:

• First mortgage with a balance at December 31, 2012, of $396,747 from Mechanics and Farmers Bank for a term of 317 months at 8.50% per annum adjustable annually by 1%, with the rate never to exceed 10.625%. In October 2011, this mortgage was modified to be an interest only loan for a period of 25 months at 6.25% per annum, followed by 35 months of principal and interest payments in the amount of $3,515, and a final balloon payment of $358,856 due in January 2017. The current monthly payment is $2,477. Accrued interest payable on this mortgage is $2,170 as of December 31, 2012.

• Second mortgage in the amount of $1,055,499 for a term of 15 years, which may under certain conditions, be extended to 20 years, from the City of Durham bond sales proceeds at no interest to the project. The balance at December 31, 2012 was $390,315. The terms of this loan were modified during 2011. The Authority is not required to make any payments on the outstanding balance until January 2014. At that time, the loan will be amortized for a term of 120 months at 2.00% per annum.

• Third mortgage in the amount of $60,000 for a term of 20 years, at 5.0% from the North Carolina Housing Finance Agency. Principal and interest payments begin in year 15. All accrued interest from prior years has been forgiven and added to other income. The Note Agreement has been amended to extend the maturity date to November 1, 2018 with a 0% interest rate, at which time a single balloon payment in the amount of $60,000 will be due.

Principal payments due on all mortgages and notes payable in each of the following five years and subsequent maturities are as follows:

Year(s) Principal Interest Total

2013 -$ 23,814$ 23,814$

2014 47,528 37,749 85,277

2015 49,329 35,946 85,275

2016 50,050 35,227 85,277

2017 396,672 5,280 401,952

2018-2022 260,848 14,638 275,486

2023 42,635 464 43,099

Total 847,062$ 153,118$ 1,000,180$

2. Preiss-Steele Place Housing, Inc.

The Authority bought out the general partner and took over the operations and ownership

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of Oxford Commons, LP in April 2007. The property is now operated as Preiss-Steele Place and ownership has been vested in the component unit Preiss-Steele Place Housing, Inc. The Authority has three notes payable agreements and they are as follow:

• A $1,086,039.00 first mortgage note payable to Community Investment Corporation of North Carolina, collateralized by the project carried at $1,081,444.00. The note bears interest at 9.25%. Payments were made monthly for $8,935.00 until December, 2009, when the monthly payments of principal and interest are adjusted annually for the loan years 17 through 30 depending on prevailing interest rates. The balance of this loan at December 31, 2012 was $699,134. This loan will mature in December, 2023.

• A second mortgage note with the City of Durham. The note accrues interest at 0.5% per annum. Annual payments began in 2001 and continue through 2014 with a balloon payment of $1,386,351 due in January 2014. The balance of this loan is $1,459,611 as of December 31, 2012. The Authority is currently engaged in negotiations with the City of Durham to modify the terms of the loan.

• A third mortgage in the amount of $300,000 payable to the North Carolina Housing Finance Agency. The note bears interest at 3% per annum on $200,000 and $100,000 is interest-free. In addition, $100,000 was eliminated from the amount due because the Authority met certain performance parameters defined within the loan agreement as of January 1, 2012. A balloon payment of the remaining principal balance will be due on February 1, 2016. The final thirty-four percent of the $100,000 elimination was recognized as Other Revenue during 2012. The balance of this loan is $111,710 as of December 31, 2012.

The liability of the Authority under the mortgage notes is limited to the underlying value of the real estate collateral.

Principal payments due on all mortgages and notes payable in each of the following five years and subsequent maturities are as follows:

Year(s) Principal Interest Total

2013 125,096$ 73,042$ 198,138$

2014 1,442,697 61,608 1,504,305

2015 61,283 56,673 117,956

2016 147,416 48,969 196,385

2017 64,205 43,015 107,220

2018-2022 426,984 109,116 536,100

2023 2,774 - 2,774

Total 2,270,455$ 392,423$ 2,662,878$

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3. Changes in capital debt obligations summary

Changes in capital debt obligations are as follows:

2012 2011

Balance at December 31 of prior year 3,272,410$ 3,519,629$

Less principal retirements (154,893) (247,219)

Balance at December 31 3,117,517$ 3,272,410$

Note Q Economic Dependency

Both the Authority's Low Rent Public Housing Program and the Housing Choice Voucher Program are economically dependent on annual contributions and grants from HUD. Both programs operate at a loss prior to receiving the contributions and grants.

Note R Pension Plan Obligations

The Authority contributes to the Durham Housing Authority Retirement Plan, which is a defined contribution plan.

A defined contribution pension plan provides pension benefits in return for services rendered, provides an individual account for each participant, and specifies how contributions to the individual’s account are to be determined instead of specifying the amount of benefits the individual is to receive. Under a defined contribution pension plan, the benefits a participant will receive depend solely on the amount contributed to the participant’s account, the returns earned on investments of those contributions, and forfeitures of other participants’ benefits that may be allocated to such participant’s account. As established by the Authority’s personnel policy, all full-time employees of the Authority must participate in the pension plan beginning the earliest of January 1st or July 1st following three months after the date they are hired. Contributions made by an employee vest immediately and contributions made by the Authority are fully vested after five years of full-time employment with 20% partial vesting each of those five years. Employees who leave the employment of the Authority are entitled to their contributions, the Authority’s contributions to the extent vested, and the earnings on these amounts. Through September 30, 2001, the Authority was required to contribute an amount equal to 12% of the employee’s base annual salary. Effective October 1, 2001 this rate was reduced to 7% of the base annual salary. Effective July 1, 2007, employees are required to contribute 2% of their annual base salary and the Authority contributes 5% of that annual base salary. In addition, if the employee chooses to voluntarily contribute an additional percentage of their annual base salary, the Authority will match up to 2% of that annual base salary. In this case, the employee is fully vested in the Authority's matched contribution without regard to term of service.

A loan provision is part of the retirement plan and allows employees to borrow money from their retirement accounts with a minimum of $1,000 and a maximum of the lessor of 50% of their vested balanced up to $50,000.00. Loans must meet one of four requirements which

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are 1) foreclosure on a home; 2) purchase of a home, 3) medical expenses, or 4) educational expenses.

During the year ended December 31, 2012, the Authority’s actual contributions amounted to $322,562. The total salaries for the year were $5,215,229, and covered salaries were $4,608,035.

Except for the changes described above, no pension plan provision charges occurred during the year which affected the required contributions to be made by the Authority or its employees.

The Durham Housing Authority Pension Plan held no securities of the Authority or of other related parties during the year or as of the close of the fiscal year ended December 31, 2012.

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Note S Operating Transfers

The following transfers were recognized for the period ended December 31, 2012:

Central Office Cost Center Transfer from Central Office Cost Center to Development Ventures Incorporated

for purchase of Lincoln Apartments (157,166)$

Net transfer - Central Office Cost Center (157,166)

Bond Fund Transfer from Bond Fund to Development Ventures Incorporated for purchase of

Lincoln Apartments (94,000)

Net transfer - Bond Fund (94,000)

Turnkey III Fund

Transfer from Turnkey III Fund to Edgemont Elms Housing, Inc., for

redevelopment project (1,339,674) Transfer from Turnkey III Fund to Development Ventures Incorporated for Goley

Pointe project (21,693)

Net transfer - Turnkey III Fund (1,361,367)

Edgement Elms Housing, Inc. Transfer from Turnkey III Fund to Edgemont Elms Housing, Inc., for

redevelopment project 1,339,673

Net transfer - Edgemont Elms Housing, Inc. 1,339,673

Development Ventures Incorporated

Transfer from Turnkey III Fund to Development Ventures Incorporated for Goley

Pointe project 21,694

Transfer from Central Office Cost Center to Development Ventures Incorporated

for purchase of Lincoln Apartments 157,166 Transfer from Bond Fund to Development Ventures Incorporated for purchase of

Lincoln Apartments 94,000

Net transfer - Development Ventures Incorporated 272,860

Net transfers -$

Note T Contingencies

The entity is subject to possible examinations made by federal regulators who determine compliance with terms, conditions, laws and regulations governing grants given to the entity in the current and prior years. These examinations may result in required refunds

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by the entity to federal grantors and/or program beneficiaries. There are currently lawsuits ongoing; however, there are no amounts which are deemed as contingent liabilities which should be disclosed or accrued in the financial statements.

During 2004, the Authority was reviewed by the HUD's Office of Inspector General (OIG). The OIG issued an audit report – 2005-AT-1004 – examining procurement activities. As a result of this audit, the Authority was required to complete numerous corrective actions, including the repayment of monies to Federal programs. As of December 31, 2012, one finding remained unresolved. This finding involves questioned costs in the amount of $7,821,388. The Authority is working with HUD officials to modify or abate the required repayment amount related to the outstanding issue. However, it is unknown whether those efforts will be successful or to what degree.

During 2009, the Authority was reviewed by the local field office of HUD. The local field office issued a report covering the results of the review. As a result of that review, the Authority was required to complete several corrective actions. In addition, the local field office exercised its authority to require pre-approval for the obligation or expenditure of funds in excess of $25,000. The local field office released the Authority from this pre-approval requirement during 2011. No costs were questioned during the review, although the potential for costs to become questioned exists depending on the result of corrective actions undertaken by the Authority. However, it is unknown whether any costs will be questioned and the Authority is not able to estimate any potential liability. As of December 31, 2012, the Authority believes all corrective actions have been completed and that the review has been “closed.” However, no verification or confirmation of this status has been provided by the local field office.

Note U Related Party Transactions

The HOPE VI program has various loans with the HOPE VI partnerships which are considered to be related entities but not component units. Information regarding these loans is disclosed in Note E.1.

Note V Risk Management

The Authority is exposed to all common perils associated with the ownership and rental of real estate properties. A risk management program has been established to minimize loss occurrence and to transfer risk through various levels of insurance. Property, casualty, employee dishonesty and public official’s liability forms are used to cover the respective perils.

In accordance with G.S. 159-29, the Authority’s employees that have access to $100 or more at any given time of the Authority’s funds, including the finance officer, are covered by a fidelity bond for the amount of $400,000.

There have been no significant reductions in insurance coverage in the prior year and settled claims have not exceeded coverage in any of the past three fiscal years.

No contingent liabilities requiring disclosure are believed to exist as of December 31, 2012.

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Note W Subsequent Events

There are no subsequent events to be disclosed.

Note X Supplemental Information

Supplemental information has been included in order to show the financial statements of the Housing Authority on the GAAP basis of accounting but in the format of the HUD Handbook 7476.3, Audit Guide. This is due to the fact that some supplemental information is reviewed by the field office and provides greater detail concerning the operations of the Authority.

This information in an integral part of the accompanying financial information.

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57

COMBINING FINANCIAL STATEMENTS

57

58

Combining Statement of Net Position Durham Housing Authority


As of December 31, 2012

Account Description

Public Housing/

Formula Capital

Fund Stimulus

Grant HOPE VI

Housing Choice

Voucher

Program

Central Office

Cost Center Nonmajor Funds Component Units Total

ASSETS

Current Assets

Cash & cash equivalents 3,973,897$ -$ 136,330$ 29,740$ 998,827$ 685,999$ 5,824,793$

Cash & cash equivalents - restricted 469,555 - 1,803,433 - - 35,788 2,308,776

Investments - - - 704,649 - 22,955 727,604

Accounts receivable (net) 220,585 - 9,265 83,428 26,146 42,647 382,071

Interprogram due from (net) (190,899) (525,763) (77,354) 1,655,402 156,898 (1,018,284) -

Inventory & prepaid items 36,128 - - 45,761 - 13,742 95,631

Total Current Assets 4,509,266 (525,763) 1,871,674 2,518,980 1,181,871 (217,153) 9,338,875

Noncurrent Assets

Capital Assets

Land 1,157,093 - - 288,401 - 516,442 1,961,936

Buildings 61,257,322 - 40,461 1,412,934 - 10,535,817 73,246,534

Furniture, equipment & machinery 534,824 49,741 31,536 1,086,397 - 130,191 1,832,689

Accumulated depreciation (47,884,100) (49,741) (65,058) (1,928,877) - (5,929,495) (55,857,271)

Total Capital Assets (net) 15,065,139 - 6,939 858,855 - 5,252,955 21,183,888

Notes Receivable - 8,080,661 - - 1,298,090 - 9,378,751

Other assets 69,793 - - - - 130,114 199,907

Total Noncurrent Assets 15,134,932 8,080,661 6,939 858,855 1,298,090 5,383,069 30,762,546

Total Assets 19,644,198$ 7,554,898$ 1,878,613$ 3,377,835$ 2,479,961$ 5,165,916$ 40,101,421$


Liabilities

Current Liabilities

Accounts payable 58,164$ -$ -$ 1,044,754$ 883$ -$ 1,103,801$

Accrued expenses 104,519 529 21,471 67,181 5,608 78,672 277,980

Unearned revenues 42,879 57,641 - - 4,182 14,195 118,897

Tenant security deposits 363,697 - - - - 30,436 394,133

Other current liabilities - - - - - 87,702 87,702

Current portion of long-term debt - - - - - 125,148 125,148

Total Current Liabilities 569,259 58,170 21,471 1,111,935 10,673 336,153 2,107,661


Long-term debt, net of current portion - - - - - 2,992,369 2,992,369

Other noncurrent liabilities 105,858 - 301,901 - - - 407,759 Accrued compensated absences, net of

current portion 163,748 - 30,497 120,471 8,208 3,167 326,091

Total Noncurrent Liabilities 269,606 - 332,398 120,471 8,208 2,995,536 3,726,219

Total Liabilities 838,865 58,170 353,869 1,232,406 18,881 3,331,689 5,833,880

Net Position

Capital assets net of related debt 15,065,139 - 6,939 858,855 - 2,135,438 18,066,371

Net position - restricted - 8,080,661 1,501,533 - - 5,352 9,587,546

Net positin - unrestricted 3,740,194 (583,933) 16,272 1,286,574 2,461,080 (306,563) 6,613,624

Total Net Position 18,805,333 7,496,728 1,524,744 2,145,429 2,461,080 1,834,227 34,267,541

Total Liabilities and Net Position 19,644,198$ 7,554,898$ 1,878,613$ 3,377,835$ 2,479,961$ 5,165,916$ 40,101,421$

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59

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position Durham Housing Authority


December 31, 2012

Public Housing/

Formula Capital

Fund Stimulus

Grant HOPE VI

Housing Choice

Voucher

Program

Central Office

Cost Center Nonmajor Funds

Component

Units Total

Operating Revenue

Tenant rent 4,000,798$ -$ -$ -$ -$ 668,958$ 4,669,756$

Operating grants 10,460,914 222,582 19,208,811 - 474,835 658,350 31,025,492

Fee revenue - - - 2,777,682 - - 2,777,682

Other revenue 67,724 - 21,037 19,895 201,596 56,462 366,714

Total Operating Revenue 14,529,436 222,582 19,229,848 2,797,577 676,431 1,383,770 38,839,644

Operating Expenses

Administration 4,341,381 31,518 1,579,225 2,306,218 101,088 130,434 8,489,864

Tenant services 494,237 42,074 98,186 11,233 373,660 41,548 1,060,938

Utilities 3,167,294 - 14,718 40,511 - 130,615 3,353,138

Maintenance 4,733,547 - 46,408 509,726 1,898 247,962 5,539,541

Protective services 204,050 - - - - 23,759 227,809

General expense 1,229,895 148,990 83,443 64,949 - 70,273 1,597,550

Housing assistance payments - - 17,688,964 - 70,869 - 17,759,833

Depreciation & amortization 2,771,180 - 771 216,571 - 387,022 3,375,544

Total Operating Expenses 16,941,584 222,582 19,511,715 3,149,208 547,515 1,031,613 41,404,217

Operating Income/(Loss) (2,412,148) - (281,867) (351,631) 128,916 352,157 (2,564,573)


Investment income - - 2,686 4,798 - 556 8,040

Mortgage interest income - 353,876 - - - - 353,876

Interest expenses - - - - - (103,070) (103,070)

Casualty losses (22,647) - - (1,000) - - (23,647)

Total Nonoperating Revenues/(Expenses) (22,647) 353,876 2,686 3,798 - (102,514) 235,199

Change in net position before capital

contributions (2,434,795) 353,876 (279,181) (347,833) 128,916 249,643 (2,329,374)

Capital contributions 2,474,808 - - - - - 2,474,808

Change in net position 40,013 353,876 (279,181) (347,833) 128,916 249,643 145,434

Total net position beginning of year 18,765,320 7,142,852 1,803,925 2,650,428 3,787,531 (27,949) 34,122,107

Transfers In/(Out) - - - (157,166) (1,455,367) 1,612,533 -

Total net position end of year 18,805,333$ 7,496,728$ 1,524,744$ 2,145,429$ 2,461,080$ 1,834,227$ 34,267,541$

59

60

Combining Statement of Cash Flows Durham Housing Authority


For the year ended December 31, 2012

Public Housing/

Formula Capital

Fund Stimulus

Grant HOPE VI

Housing Choice

Voucher

Program

Central Office

Cost Center Nonmajor Funds

Component

Units Total


Receipts from customers and users 4,622,781$ -$ 26,376$ 2,812,323$ 196,239$ 710,174$ 8,367,893$

Receipts from grants and subsidies 10,460,914 222,582 19,208,811 - 474,835 658,350 31,025,492

Payments to suppliers (12,018,014) (167,238) (1,186,796) (1,210,725) (306,360) (552,301) (15,441,434)

Payments for housing assistance - - (17,688,964) - (70,869) - (17,759,833)

Payments to employees (2,634,683) (55,344) (801,933) (1,544,973) (172,950) (60,143) (5,270,026)

Net cash provided/(used) by operating actvities 430,998 - (442,506) 56,625 120,895 756,080 922,092


Transfers from/(to) other funds - - - (157,166) (1,455,367) 1,612,533 -

Change in other liabilities 30,100 - - - - (32,514) (2,414) Interest expense paid - - - - - (103,070) (103,070)

Net cash provided/(used) by noncapital financing

activities 30,100 - - (157,166) (1,455,367) 1,476,949 (105,484)


Purchases of investments - - - (744) - (33) (777)

Decrease in Long Term Notes Receivable - (353,876) - - 15,850 - (338,026)

Mortgage interest income - 353,876 Interest received - - 2,686 4,798 - 556 8,040

Net cash provided/(used) by investing activities - - 2,686 (153,112) 15,850 523 23,113

Cash Flows from Capital and Related Financing

Activities

Changes in long term debt payable - - - - - (154,893) (154,893)

Grant revenue - capital grants 2,474,808 - - - - - 2,474,808 Purchases of capital assets (2,474,811) - (7,710) - - (2,262,311) (4,744,832)

Net cash provided/(used) by capital and related

financing activities (3) - (7,710) - - (2,417,204) (2,424,917)

Net Increase/(Decrease) in Cash 461,095 - (447,530) (96,487) (1,318,622) (183,652) (1,585,196)

Cash at beginning of period 3,982,357 - 2,387,293 126,227 2,317,449 905,439 9,718,765

Cash at end of period 4,443,452$ -$ 1,939,763$ 29,740$ 998,827$ 721,787$ 8,133,569$

Reconciliation of operating income to net cash provided

by/(used in) operating activities

Net income/(loss) from operations (2,412,148) - (281,867) (351,631) 128,916 352,157 (2,564,573)

Adjustments to reconcile net income/(loss) to net cash

provided by operating activities:

Depreciation/Amortization 2,771,180 - 771 216,571 - 387,022 3,375,544

Casualty losses (22,647) - - (1,000) - - (23,647)


Decrease (Increase) in accounts receivable 540,647 - 5,339 14,746 10,418 (18,708) 552,442

Decrease (Increase) in inventory & prepaid expenses 665 - - 71,244 - 690 72,599

Decrease (Increase) in Interprogram Due From (508,248) 47,795 (148,399) 498,988 97,060 2,772 (10,032)

Decrease (Increase) in other noncurrent assets - - - - - 25,645 25,645

Increase (Decrease) in accounts payable 11,443 - (1,532) (447,418) 883 - (436,624)

Increase (Decrease) in accrued expenses 36,494 (2,244) (1,609) 16,833 783 2,729 52,986

Increase (Decrease) in unearned revenue (954) (43,241) - - (117,165) 3,312 (158,048)

Increase (Decrease) in security/trust deposits 14,566 - - - - 330 14,896

Increase (Decrease) in other current liabilities - - - - - 131 131

Increase (Decrease) in other noncurrent liabilities - (2,310) (15,209) 38,292 - - 20,773

Net cash provided/(used) by operating actvities 430,998$ -$ (442,506)$ 56,625$ 120,895$ 756,080$ 922,092$

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61

Combining Statement of Net Position – Nonmajor Funds

Durham Housing Authority



Account Description

Business

Activities

Shelter Plus

Care ROSS State/Local Total

ASSETS

Current Assets

Cash & cash equivalents 998,827$ -$ -$ -$ 998,827

Accounts receivable (net) 5,416 310 20,420 - 26,146

Interprogram due from (net) 159,630 (310) (6,604) 4,182 156,898

Total Current Assets 1,163,873 - 13,816 4,182 1,181,871

Noncurrent Assets

Notes Receivable 1,298,090 - - - 1,298,090

Total Noncurrent Assets 1,298,090 - - - 1,298,090

Total Assets 2,461,963$ -$ 13,816$ 4,182$ 2,479,961$


Liabilities

Current Liabilities

Accounts payable 883$ -$ -$ -$ 883$

Accrued expenses - - 5,608 - 5,608 Unearned revenues - - - 4,182 4,182

Total Current Liabilities 883 - 5,608 4,182 10,673

Noncurrent LiabilitiesAccrued compensated absences, net of

current portion - - 8,208 - 8,208

Total Noncurrent Liabilities - - 8,208 - 8,208

Total Liabilities 883 - 13,816 4,182 18,881

Net Position

Net position - unrestricted 2,461,080 - - - 2,461,080

Total Net Position 2,461,080 - - - 2,461,080

Total Liabilities and Net Position 2,461,963$ -$ 13,816$ 4,182$ 2,479,961$

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62

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Nonmajor Funds



December 31, 2012

Business

Activities

Shelter Plus


Operating Revenue

Operating grants -$ 76,539$ 214,458$ 183,838$ 474,835$

Other revenue 201,596 - - - 201,596

Total Operating Revenue 201,596 76,539 214,458 183,838 676,431

Operating Expenses

Administration 72,680 5,670 2,831 19,907 101,088

Tenant services - - 211,627 162,033 373,660

Maintenance - - - 1,898 1,898

Housing assistance payments - 70,869 - - 70,869

Total Operating Expenses 72,680 76,539 214,458 183,838 547,515

Operating Income/(Loss) 128,916 - - - 128,916

Total net position beginning of year 3,787,531 - - - 3,787,531

Transfers In/(Out) (1,455,367) - - - (1,455,367)

Total net position end of year 2,461,080$ -$ -$ -$ 2,461,080$

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63

Combining Statement of Cash Flows – Nonmajor Funds




Business

Activities

Shelter Plus



Receipts from customers and users 196,239$ -$ -$ -$ 196,239$

Receipts from grants and subsidies - 76,539 214,458 183,838 474,835

Payments to suppliers (75,344) (5,670) (70,974) (154,372) (306,360)

Payments for housing assistance (70,869) - - (70,869)

Payments to employees - - (143,484) (29,466) (172,950)

Net cash provided/(used) by operating actvities 120,895 - - - 120,895


Transfers from/(to) other funds (1,455,367) - - - (1,455,367)


activities (1,455,367) - - - (1,455,367)


Decrease in Long Term Notes Receivable 15,850 - - - 15,850

Net cash provided/(used) by investing activities 15,850 - - - 15,850

Net Increase/(Decrease) in Cash (1,318,622) - - - (1,318,622)

Cash at beginning of period 2,317,449 - - - 2,317,449

Cash at end of period 998,827 - - - 998,827



Net income/(loss) from operations 128,916 - - - 128,916




Decrease (Increase) in accounts receivable (5,357) 185 (9,636) 25,226 10,418

Decrease (Increase) in Interprogram Due From (3,547) (185) 4,037 96,755 97,060

Increase (Decrease) in accounts payable 883 - - - 883

Incrase (Decrease) in accrued expenses - - 5,599 (4,816) 783

Increase (Decrease) in unearned revenue - - - (117,165) (117,165)

Net cash provided/(used) by operating actvities 120,895$ -$ -$ -$ 120,895$

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64

Combining Statement of Net Position – Component Units




Account Description

Development

Ventures

Incorporated

Learning

Assistance, Inc.

Edgemont Elms

Housing, Inc.

Preiss-Steele

Place Housing,

Inc. Total

ASSETS

Current Assets

Cash & cash equivalents 424,655$ 7,921$ 159,144$ 94,279$ 685,999$

Cash & cash equivalents - restricted 6,006 - 7,785 21,997 35,788

Investments - 22,955 - - 22,955

Accounts receivable (net) - - 23,832 18,815 42,647

Interprogram due from (net) (2,440) (237) (576,266) (439,341) (1,018,284)

Inventory & prepaid items - - 11,982 1,760 13,742

Total Current Assets 428,221 30,639 (373,523) (302,490) (217,153)

Noncurrent Assets

Capital Assets

Land 92,700 - 101,500 322,242 516,442

Buildings 284,802 - 5,246,310 5,004,705 10,535,817

Furniture, equipment & machinery - - - 130,191 130,191

Accumulated depreciation (3,790) - (2,496,684) (3,429,021) (5,929,495)

Total Capital Assets (net) 373,712 - 2,851,126 2,028,117 5,252,955

Notes Receivable - - - - -

Other assets - - 4,160 125,954 130,114

Total Noncurrent Assets 373,712 - 2,855,286 2,154,071 5,383,069

Total Assets 801,933$ 30,639$ 2,481,763$ 1,851,581$ 5,165,916$


Liabilities

Current Liabilities

Accrued expenses -$ 309$ 3,699$ 74,664$ 78,672$

Unearned revenues - - 957 13,238 14,195

Tenant security deposits 654 - 7,785 21,997 30,436

Other current liabilities 5,352 - - 82,350 87,702

Current portion of long-term debt - - - 125,148 125,148

Total Current Liabilities 6,006 309 12,441 317,397 336,153


Long-term debt, net of current portion - - 847,062 2,145,307 2,992,369 Accrued compensated absences, net of

current portion - 176 2,086 905 3,167

Total Noncurrent Liabilities - 176 849,148 2,146,212 2,995,536

Total Liabilities 6,006 485 861,589 2,463,609 3,331,689

Net Position

Capital assets net of related debt 373,712 - 2,004,064 (242,338) 2,135,438

Net position - restricted 5,352 - - - 5,352

Net position - unrestricted 416,863 30,154 (383,890) (369,690) (306,563)

Total Net Position 795,927 30,154 1,620,174 (612,028) 1,834,227

Total Liabilities and Net Position 801,933$ 30,639$ 2,481,763$ 1,851,581$ 5,165,916$

64

65

Combining Statement of Revenues, Expenses, and Changes in Fund Net Position – Component Units



December 31, 2012

Account Description

Development

Ventures

Incorporated

Learning

Assistance, Inc.

Edgemont Elms

Housing, Inc.

Preiss-Steele

Place Housing,

Inc. Total

Operating Revenue

Tenant rent -$ -$ 191,204$ 477,754$ 668,958$

Operating grants 54,642 - 603,708 - 658,350

Other revenue 1,862 21,267 - 33,333 56,462

Total Operating Revenue 56,504 21,267 794,912 511,087 1,383,770

Operating Expenses

Administration 4,880 1,230 60,104 64,220 130,434

Tenant services - 41,548 - - 41,548

Utilities 2,244 - 43,066 85,305 130,615

Maintenance 85 - 73,043 174,834 247,962

Protective services - - 23,584 175 23,759

General expense 60 291 31,247 38,675 70,273

Depreciation & amortization 3,790 - 210,919 172,313 387,022

Total Operating Expenses 11,059 43,069 441,963 535,522 1,031,613

Operating Income/(Loss) 45,445 (21,802) 352,949 (24,435) 352,157


Investment income 370 50 97 39 556

Interest expenses - - (25,629) (77,441) (103,070)

Total Nonoperating Revenues/(Expenses) 370 50 (25,532) (77,402) (102,514)

Change in net position 45,815 (21,752) 327,417 (101,837) 249,643

Total net postion, beginning of year 477,252 51,906 (46,916) (510,191) (27,949)

Transfers In/(Out) 272,860 - 1,339,673 - 1,612,533

Total net position, end of year 795,927$ 30,154$ 1,620,174$ (612,028)$ 1,834,227$

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Combining Statement of Cash Flows – Component Units Durham Housing Authority



Development

Ventures

Incorporated

Learning

Assistance, Inc.

Edgemont Elms

Housing, Inc.

Preiss-Steele

Place Housing,

Inc. Total


Receipts from customers and users 1,862$ 21,267$ 179,546$ 507,499$ 710,174

Receipts from grants and subsidies 54,642 - 603,708 - 658,350

Payments to suppliers (81,963) (31,893) (187,378) (251,067) (552,301)

Payments to employees - (10,935) (21,324) (27,884) (60,143)

Net cash provided/(used) by operating actvities (25,459) (21,561) 574,552 228,548 756,080


Transfers from/(to) other funds 272,860 - 1,339,673 - 1,612,533

Change in other current liabilities (32,514) - - - (32,514)

Interest expense paid - - (25,629) (77,441) (103,070)


activities 240,346 - 1,314,044 (77,441) 1,476,949


Purchases of investments - (33) - - (33)

Interest received 370 50 97 39 556

Net cash provided/(used) by investing activities 370 17 97 39 523

Cash Flows from Capital and Related Financing Activities

Changes in long term debt payable - - (3,786) (151,107) (154,893)

Purchases of capital assets (377,502) - (1,884,809) - (2,262,311)

Net cash provided/(used) by capital and related

financing activities (377,502) - (1,888,595) (151,107) (2,417,204)

Net Increase/(Decrease) in Cash (162,245) (21,544) 98 39 (183,652)

Cash at beginning of period 592,906 29,465 166,831 116,237 905,439

Cash at end of period 430,661$ 7,921$ 166,929$ 116,276$ 721,787$



Net income/(loss) from operations 45,445 (21,802) 352,949 (24,435) 352,157



Depreciation/Amortization 3,790 - 210,919 172,313 387,022


Decrease (Increase) in accounts receivable - - (11,137) (7,571) (18,708)

Decrease (Increase) in prepaid expenses - - (521) 1,211 690

Decrease (Increase) in other noncurrent assets - - - 2,772 2,772

Increase (Decrease) in Interprogram Due From (74,694) 55 21,843 78,441 25,645

Incrase (Decrease) in accrued expenses - 55 1,229 1,445 2,729

Increase (Decrease) in unearned revenue - - (180) 3,492 3,312

Incrase (Decrease) in security/trust deposits - - (550) 880 330

Increase (Decrease) in other current liabilities - 131 - - 131

Net cash provided/(used) by operating actvities (25,459)$ (21,561)$ 574,552$ 228,548$ 756,080$

66

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SECTION III – SINGLE AUDIT SECTION

Independent Auditors’ Reports

Schedule of Expenditures of Federal Awards

Schedule of Findings and Questioned Costs

Schedule of Prior Year Findings and Questioned Costs

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Independent Auditors’ Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements

Performed In Accordance With Government Auditing Standards Board of Commissioners Durham Housing Authority Durham, North Carolina We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the Durham Housing Authority (the Authority), as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements, and have issued our report thereon dated June 26, 2013. 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 was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 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



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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 result of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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Independent Auditors’ Report on Compliance with Requirements That Could Have a Direct and Material Effect on Each Major Federal Program, on Internal

Control Over Compliance, and on the Schedule of Expenditures of Federal Awards in Accordance with OMB Circular A‐133

Board of Commissioners Durham Housing Authority Durham, North Carolina Report on Compliance for Each Major Federal Program We have audited Durham Housing Authority’s (the Authority) 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, 2012. The Authority’s major federal programs are identified in the summary of auditors’ results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditors’ Responsibility Our responsibility is to express an opinion on 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 types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about 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.



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Opinion on Each Major Federal Program

In our opinion, the Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended December 31, 2012. Other Matters

The results of our auditing procedures disclosed instances of noncompliance, which are required to be reported in accordance with OMB Circular A‐133 and which are described in the accompanying schedule of findings and questioned costs as items 2012‐01 and 2012‐02. Our opinion on each major federal program is not modified with respect to these matters.

The Authority’s responses to the noncompliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The Authority’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. Report on Internal Control Over Compliance

Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered 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 type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance.

Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that were not identified. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified certain deficiencies in internal control over compliance, as described in the accompanying schedule of findings and questioned costs as items 2012‐01 and 2012‐2, that we consider to be significant deficiencies.

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The Authority’s responses to the internal control over compliance findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The Authority’s responses were not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the responses. 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 result of that testing based on the requirements of OMB Circular A‐133. Accordingly, this report is not suitable for any other purpose. Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A‐133 We have audited the financial statements of the Authority as of and for the year ended December 31, 2012, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements. We issued our report thereon dated June 26, 2013, which contained an unmodified opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the basic financial statements. The accompanying schedule of expenditures of federal awards is presented for purposes of additional analysis as required by OMB Circular A‐133 and is not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedule of expenditure of federal awards is fairly stated in all material respects in relation to the basic financial statements as a whole.


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Schedule of Expenditures of Federal Awards



Type

Federal

CFDA # Expenditures

Federal Grantor

U.S. Department of Housing & Urban Development

Public Housing:

Low Income Public Housing Program A - Nonmajor 14.850 8,779,887$

Revitalization of Severely Distressed Public Housing B - Nonmajor 14.866 222,582

Resident Opportunities Supportive Services B - Nonmajor 14.870 214,458

Capital Fund Program A - Nonmajor 14.872 4,140,019

Formula Capital Fund Stimulus Grant B - Nonmajor 14.885 15,816

Section 8 Housing Assistance Program:

Housing Choice Voucher A - Major 14.871 19,208,811

Other Programs:

Shelter Plus Care B - Nonmajor 14.238 76,539

Total Federal Financial Awards 32,658,112$

Threshold for Type A and Type B 979,743$

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Notes to Schedule of Expenditures of Federal Awards

For the Year Ended December 31, 2012

Basis of Presentation

The accompanying schedule of expenditures for Federal awards includes the Federal grant activity of the Authority and is presented on a full 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.

Sub-recipients

The Authority provided no Federal awards to sub-recipients during the fiscal year ending December 31, 2012.

Disclosure of Other Forms of Assistance

The Authority received no Federal awards of non-monetary assistance that are required to be disclosed for the fiscal year ended December 31, 2012.

The Authority had no loans, loan guarantees, or Federally restricted endowment funds required to be disclosed for the fiscal year ended December 31, 2012.

The Authority maintains the following limits of insurance as of December 31, 2012:

Property $ 40,000,000

Boiler & Machinery 40,000,000

Flood Insurance 1,551,900

Liability 5,000,000

Commercial Auto 5,000,000

Worker Compensation 500,000

Directors and Officers Liability 1,000,000

Public Employee Dishonesty 300,000

Settled claims have not exceeded the above commercial insurance coverage limits over the past three years.

75

76



Schedule of Findings and Questioned Costs

Section I – Summary of Auditor's Results:

Unmodified

No

None reported

No

No

Yes

Unmodified

Yes

Identification of major programs:

CFDA #14.871 Housing Choice Voucher Program

979,743$

No

Internal controls over major programs:

Federal Awards

Financial Statements

Type of report issued on the financial statements:

Internal control over financial reporting:

Material weakness(es) identified?

Significant deficiency(ies) identified not considered to be material weaknesses?

Noncompliance material to the financial statements noted?

Material weakness(es) identified?

Any audit findings disclosed that are required to be reported in accordance with Circular A-133, Seciton .510(a)?

Did the Authority qualify as a low-risk auditee?

Dollar threshold used to distinguish between Type A and Type B programs:

Type of report issued on compliance for major programs:

Significant deficiency(ies) identified not considered to be material weaknesses?

76

77

Section II – Financial Statement Findings

Findings related to financial statements in accordance with GAS:

None reported.

Section III – Federal Award Findings and Questioned Costs

Findings and questioned costs for Federal Awards as defined in Section .510:

Finding 2012-01: Housing Choice Voucher Program, CFDA – 14.871

Federal Agency: U.S. Department of Housing and Urban Development

Compliance Requirement: Special Test – Reasonable Rent

Type of Finding: Internal Control, Noncompliance, Significant Deficiency

Condition/Context:

Testing of 40 Housing Choice Voucher tenant files found exceptions in 9 files, which included the following:

7 of 40 files noted rent reasonableness determinations were not performed until after the effective date of the new rent increase.

1 of 40 files could not be tested due to missing or incomplete reasonable rent determination forms.

Criteria:

25 CFR 982.507(a) states that the Authority may not approve a lease until the Authority has determined that the initial rent or any increase in rent to the owner is reasonable.

Effect:

The Authority does not comply with applicable federal regulations governing the Housing Choice Voucher Program and rent increases to landlords.

Cause:

The Authority failed to comply with all stated rent reasonableness requirements.

Questioned Costs:

Unable to determine.

Recommendation:

We recommend that management evaluate their quality control procedures over the rent determination process and consider increasing the total number of files reviewed by quality control personnel.

Management's Response:

The Authority agrees with the auditor regarding this finding. Management will review existing quality control procedures for possible improvements and examine the number of files processed by quality control personnel. However, due to severe and chronic shortfalls in funding provided by the U.S. Department of Housing and Urban Development for the Housing Choice Voucher Program, specifically for administration of the program, the ability of the Authority to implement any improvements identified is compromised. The Authority is not in a position to hire more staff to handle the existing workload, nor is funding available that would enable the Authority to implement technological or other improvements that would

77

78

aid in the efficiency and effectiveness of staff to be able to increase productivity.

Contact:

Questions and additional information regarding this finding may be directed to Rhega Taylor, Director of HCV Program.

Corrective Action/Anticipated Completion Dates:

An assessment of quality control procedures and possible changes is anticipated to be completed no later than September 30, 2013.


Federal Agency: U.S. Department of Housing and Urban Development

Compliance Requirement: Special Test – HQS Inspections

Type of Finding: Internal Control, Noncompliance, Significant Deficiency

Condition/Context:


3 of 40 inspections were not performed annually.

Criteria:

24 CFR 982.405(a) states “The PHA must inspect the unit leased to a family prior to the initial term of the lease, at least annually during assisted occupancy, and at other times as needed, to determine if the unit meets the HQS.”

Effect:

The Authority is not in compliance with federal regulations regarding HQS inspections.

Cause:

The Authority did not adequately monitor the HQS inspections to ensure they were in compliance with the HQS standards.

Questioned Costs:

Unable to determine.

Recommendation:

We recommend that the Authority review their procedures over the HQS inspections and implement changes to ensure they are in compliance with federal guidelines.

Management's Response:

The Authority agrees with this finding. Management will review HQS inspections processes and procedures to ensure compliance with federal guidelines. However, due to severe and chronic shortfalls in funding provided by the U.S. Department of Housing and Urban Development for the Housing Choice Voucher Program, specifically for administration of the program, the ability of the Authority to implement any improvements identified is compromised. The Authority is not in a position to hire more staff to handle the existing workload, nor is funding available that would enable the Authority to implement technological or other improvements that would aid in the efficiency and effectiveness of staff to be able to increase productivity.

78

79

Contact:

Questions and additional information regarding this finding may be directed to Rhega Taylor, Director of HCV Program.

Corrective Action/Anticipated Completion Dates:

An assessment of HQS inspections processes and procedures is anticipated to be completed no later than September 30, 2013.

79

80



Schedule of Prior Year Findings and Questioned Costs

The prior audit report for the period ended December 31, 2011, contained two (2) audit findings.


Condition/Context:


1 of 40 files noted tenant did not have an annual recertification performed. HAP payment made is from previous recertification;

4 of 40 files noted annual recertifications were performed in excess of the 12 month requirement;

2 of 40 files noted PHA did not properly obtain third party support for assets;

2 of 40 files noted PHA did not properly obtain third party support for expenses;

2 of 40 files noted PHA did not properly obtain zero income verification forms for 2 adults living in the household over the age of 18.

Recommendation:

We recommend that management evaluate their quality control procedures over the annual recertification process and consider increasing the total number of files reviewed by the quality control personnel before recertifications are complete and sent to HUD.

Current Status:

This condition was cleared in the current year.


Condition/Context:


2 of 40 units that failed inspections were never re-inspected and HAP was not abated;

2 of 40 units that had failed inspections were not re-inspected within the 30 day required time frame.

Recommendation:

We recommend that the Authority review their procedures over the HQS inspections and implement changes to ensure they are in compliance with federal guidelines.

Current Status:

This condition was still in existence and is reported as finding 2012-02 in the current year.

80

81

HUD FINANCIAL DATA SCHEDULE (FDS)

(As required by HUD Uniform Financial Reporting Standards Sec. 24 CFR, Part 5)

HUD Financial Date Schedule

HUD Cost Certificates

81

82

Sche

dule

of N

et P

osit

ion

- FD

S Du

rham

Hou

sing

Aut

hori

tySc

hedu

le 1

Durh

am, N

orth

Car

olin

aPa

ge 1

Dece

mbe

r 31,

201

2

Acco

unt D

escr

iptio

n

Pub

lic H

ousi

ng

14.8

50

Hou

sing

Choi

ce

Vouc

hers

14.8

71

She

lter P

lus

Care

14.2

38

HO

PE V

I

14.8

66

RO

SS

14.8

70

For

mul

a

Capi

tal F

und

Stim

ulus

Gran

t 14.

885

Bus

ines

s

Activ

ities

C

entr

al O

ffice

S

tate

/Loc

al

Com

pone

nt

Units

T

otal

ASSE

TS

Curr

ent A

sset

s

Cash Ca

sh -

unre

stric

ted

3,97

3,89

7$

136,

330

$

-

$

-

$

-

$

-

$

99

8,82

7$

29,7

40$

-

$

68

5,99

9$

5,82

4,79

3$

Cash

- re

stric

ted

105,

858

1,80

3,43

3

-

-

-

-

-

-

-

5,

352

1,91

4,64

3

Cash

- Se

curit

y De

posi

ts36

3,69

7

-

-

-

-

-

-

-

-

30

,436

394,

133

Tota

l Cas

h4,

443,

452

1,

939,

763

-

-

-

-

998,

827

29

,740

-

721,

787

8,

133,

569

Acco

unts

/Not

es R

ecei

vabl

e

Acct

. Rec

. - H

UD15

9,34

4

-

-

-

20

,420

-

-

-

-

-

17

9,76

4

Acct

. Rec

. - o

ther

gov

ernm

ent

-

-

-

-

-

-

-

-

-

-

-

Acct

. Rec

. - m

isce

llane

ous

3,00

0

-

310

-

-

-

8,

433

83,4

28

-

-

95

,171

Acct

. Rec

. - te

nant

s64

,416

-

-

-

-

-

-

-

-

84,7

34

14

9,15

0

Allo

w. F

or d

oubt

ful a

ccou

nts

- ten

ants

(11,

504)

-

-

-

-

-

-

-

-

(42,

087)

(5

3,59

1)

Allo

w. F

or d

oubt

ful a

ccou

nts

- oth

er-

-

-

-

-

-

(8,4

33)

-

-

-

(8,4

33)

Note

s &

Mor

tgag

es R

ec.

-

-

-

-

-

-

5,

416

-

-

-

5,41

6

Frau

d re

cove

ry21

0,44

8

57

1,85

1

-

-

-

-

-

8,54

9

-

-

79

0,84

8

Allo

w. F

or d

oubt

ful a

ccou

nts

- fra

ud(2

05,1

19)

(5

62,5

86)

-

-

-

-

-

(8

,549

)

-

-

(7

76,2

54)

Ac

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tere

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able

-

-

-

-

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-

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Tota

l Acc

ount

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tes

Rece

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le (n

et)

220,

585

9,26

5

31

0

-

20,4

20

-

5,41

6

83

,428

-

42,6

47

38

2,07

1

Inve

stm

ents

Inve

stm

ents

- un

rest

ricte

d-

-

-

-

-

-

-

704,

649

-

22

,955

727,

604

Inve

stm

ents

- re

stric

ted

-

-

-

-

-

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-

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-

-

Tota

l Inv

estm

ents

-

-

-

-

-

-

-

70

4,64

9

-

22,9

55

72

7,60

4

Prep

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and

oth

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sset

s14

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-

-

-

-

-

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44,5

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-

11

,974

70,6

72

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ies

22,0

29

-

-

-

-

-

-

1,

162

-

1,76

8

24

,959

Inte

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gram

due

from

-

-

-

-

-

-

15

9,63

0

1,65

5,40

2

4,

182

302,

731

2,

121,

945

Asse

ts h

eld

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69,7

93

-

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-

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69

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Tota

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Ass

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4,76

9,95

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1,94

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8

31

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-

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20

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1,16

3,87

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2,

518,

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4,18

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1,

103,

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11,5

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13

82

83

Durh

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ng A

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Sche

dule

1

Durh

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orth

Car

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ge 2

Dece

mbe

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201

2

Acco

unt D

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Pub

lic H

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ng

14.8

50

Hou

sing

Choi

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Vouc

hers

14.8

71

She

lter P

lus

Care

14.2

38

HO

PE V

I

14.8

66

RO

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14.8

70

For

mul

a

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tal F

und

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ulus

Gran

t 14.

885

Bus

ines

s

Activ

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C

entr

al O

ffice

S

tate

/Loc

al

Com

pone

nt

Units

T

otal

Nonc

urre

nt A

sset

s

Capi

tal A

sset

s

Land

1,15

7,09

3

-

-

-

-

-

-

288,

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51

6,44

2

1,96

1,93

6

Build

ings

26,8

29,3

53

-

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-

-

-

-

1,

412,

934

-

8,27

6,00

7

36

,518

,294

Furn

iture

, equ

ipm

ent &

mac

hine

ry53

4,82

4

31

,536

-

49,7

41

-

-

-

1,

086,

397

-

130,

191

1,

832,

689

Leas

ehol

d im

prov

emen

ts34

,427

,969

40,4

61

-

-

-

-

-

-

-

2,

259,

810

36,7

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40

Accu

mul

ated

dep

reci

atio

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7,88

4,10

0)

(6

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-

(49,

741)

-

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(1

,928

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)

-

(5

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)

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1)

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s (n

et)

15,0

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939

-

-

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-

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858,

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-

5,

252,

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Note

s Re

ceiv

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-

-

-

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-

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1,29

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9,

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-

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-

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-

-

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130,

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s15

,065

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9

-

8,

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1,29

8,09

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85

8,85

5

-

5,38

3,06

9

30

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19,8

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1,

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$

310

$

8,

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$

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-$

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1,96

3$

3,

377,

835

$

4,18

2$

6,

486,

931

$

42,2

23,3

66$

83

84

Durh

am H

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ng A

utho

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Sche

dule

1

Durh

am, N

orth

Car

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aPa

ge 3

Dece

mbe

r 31,

201

2

Acco

unt D

escr

iptio

n

Pub

lic H

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ng

14.8

50

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sing

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14.8

71

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lter P

lus

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38

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I

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Com

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T

otal

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& N

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Curre

nt L

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pay

able

40$

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$

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-

$

-

$

883

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1,

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$

-

$

-$

1,

045,

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taxe

s pa

yabl

e63

,584

18

,083

-

529

3,

556

-

-

37,0

63

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2,

919

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734

Accr

ued

com

pens

ated

abs

ence

s40

,935

3,

388

-

-

2,05

2

-

-

30

,118

-

791

77

,284

Accr

ued

inte

rest

pay

able

-

-

-

-

-

-

-

-

-

74

,962

74,9

62

Acco

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pay

able

- H

UD

466

-

-

-

-

-

-

-

-

-

466

Acco

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pay

able

- o

ther

gov

ernm

ent

57,6

58

-

-

-

-

-

-

-

-

-

57,6

58

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nt s

ecur

ity d

epos

its36

3,69

7

-

-

-

-

-

-

-

-

30

,436

394,

133

Def

erre

d re

venu

es42

,879

-

-

57

,641

-

-

-

-

4,18

2

14

,195

118,

897

Curre

nt p

ortio

n of

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-term

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t-

-

-

-

-

-

-

-

-

125,

148

12

5,14

8

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nt li

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-

-

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-

87,7

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o19

0,89

9

77

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52

5,76

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6,60

4

-

-

-

-

1,

321,

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1,94

5

Tota

l Cur

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bilit

ies

760,

158

98,8

25

31

0

583,

933

12

,212

-

88

3

1,11

1,93

5

4,

182

1,65

7,16

8

4,

229,

606

Nonc

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nt L

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s

Long

-term

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t of

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-

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-

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2,

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407,

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pens

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30

,497

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0,47

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7

32

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To

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oncu

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bilit

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269,

606

332,

398

-

-

8,

208

-

-

120,

471

-

2,

995,

536

3,72

6,21

9

Tota

l Lia

bilit

ies

1,02

9,76

4

431,

223

31

0

583,

933

20

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-

88

3

1,23

2,40

6

4,

182

4,65

2,70

4

7,

955,

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Net P

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t of

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15,0

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39

6,

939

-

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-

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858,

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2,

135,

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Net

pos

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- re

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-

1,

501,

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-

8,08

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1

-

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-

-

-

5,

352

9,58

7,54

6

Net

pos

ition

- un

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d3,

740,

194

16

,272

-

(583

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)

-

-

2,46

1,08

0

1,

286,

574

-

(306

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)

6,61

3,62

4

Tota

l Net

Pos

ition

18,8

05,3

33

1,

524,

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-

7,49

6,72

8

-

-

2,

461,

080

2,14

5,42

9

-

1,

834,

227

34,2

67,5

41

Tota

l Lia

bilit

ies a

nd N

et P

ositi

on19

,835

,097

$

1,95

5,96

7$

31

0$

8,08

0,66

1$

20

,420

$

-

$

2,46

1,96

3$

3,

377,

835

$

4,18

2$

6,

486,

931

$

42,2

23,3

66$

84

85

Sche

dule

of R

even

ues

and

Expe

nses

and

Cha

nges

in N

et P

osit

ion

– FD

S Du

rham

Hou

sing

Aut

hori

tySc

hedu

le 2

Durh

am, N

orth

Car

olin

aPa

ge 1

Dece

mbe

r 31,

201

2

Acco

unt D

escr

iptio

n

Pub

lic H

ousi

ng

14.8

50

Hou

sing

Cho

ice

Vouc

hers

14.8

71

She

lter P

lus

Care

14.2

38

HO

PE V

I

14.8

66

RO

SS

14.8

70

For

mul

a

Capi

tal F

und

Stim

ulus

Gran

t 14.

885

Bus

ines

s

Activ

ities

C

entr

al O

ffice

S

tate

/Loc

al

Com

pone

nt

Units

E

limin

atio

ns

Tot

al

REVE

NUES

Tena

nt re

venu

e

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88

89

HUD Cost Certificates

Statement and Certification of Actual Capital Fund Costs




1 The Actual Capital Fund Program Costs of Grant NC19S013501-09

Funds Approved 4,357,497$

Funds Expended 4,357,497

Excess of Funds Approved -$

Funds Advanced $ 4,357,497


Excess of Funds Advanced -$

2 The total program costs as stated on the Annual Statement/Performance and

Evaluation Report is in agreement with the Actual Modernization Cost

Certificate dated May 30, 2012, as submitted to HUD for approval.

3 All Capital Fund Program costs have been paid and all related liabilities have

been discharged through payment.

Grant NC19S013501-09 (Capital Fund Recovery Grants)

89

90





1 The Actual Capital Fund Program Costs of Grant NC19R013501-08

Funds Approved 520,223$

Funds Expended 520,223


Funds Advanced $ 520,223





Certificate dated July 6, 2012, as submitted to HUD for approval.



Grant NC19R013501-08 (Capital Fund Program)

90

91





1 The Actual Capital Fund Program Costs of Grant NC19P013501-08












Grant NC19P013501-08 (Capital Fund Program)

91

92





1 The Actual Capital Fund Program Costs of Grant NC19P013501-07












Grant NC19P013501-07 (Capital Fund Program)

92

93














Certificate dated April 10, 2013, as submitted to HUD for approval.



Grant NC19R013501-09 (Capital Fund Program)

93

94














Certificate dated July 25, 2012, as submitted to HUD for approval.



Grant NC013RFS138A010 (Resident Opportunity & Self Sufficiency)

94

95

BUDGETARY INFORMATION Year Ended December 31, 2012

Statement of Revenues, Expenses and Changes in Net Position (Non-GAAP), Public

Housing

Statement of Revenues, Expenses and Changes in Net Position (Non-GAAP), Housing

Choice Voucher Program

Statement of Revenues, Expenses and Changes in Net Position (Non-GAAP), Central Office

Cost Center

95

96

Statement of Revenues, Expenses and Changes in Net Position – Budget & Actual (Non-GAAP), Public Housing



December 31, 2012

Account Description Budget Actual Over/(Under) Budget

Operating Revenue

Tenant rent 3,439,185$ 4,000,798$ 561,613$

Operating grants 9,282,533 10,460,914 1,178,381

Other revenue 467,022 67,724 (399,298)

Total Operating Revenue 13,188,740 14,529,436 1,340,696

Operating Expenses

Administration 3,546,205 4,324,927 778,722

Tenant services 280,734 494,237 213,503

Utilities 3,135,872 3,167,294 31,422

Maintenance 4,223,467 4,733,547 510,080

Protective services - 204,050 204,050

General expense 1,422,799 1,229,895 (192,904)

Total Operating Expenses 12,609,077 14,153,950 1,544,873

Operating Income/(Loss) 579,663 375,486 (204,177)


Casualty losses - (22,647) 22,647

Total Nonoperating Revenues/(Expenses) - (22,647) 22,647

Net Income excluding depreciation and capital

contributions 579,663$ 352,839$ (181,530)$

96

97

Statement of Revenues, Expenses and Changes in Net Position – Budget & Actual (Non-GAAP), Housing Choice

Voucher Program



December 31, 2012


Operating Revenue

Operating grants 20,228,007$ 19,208,811$ (1,019,196)$

Other revenue 23,000 21,037 (1,963)

Total Operating Revenue 20,251,007 19,229,848 (1,021,159)

Operating Expenses

Administration 1,192,576 1,579,225 386,649

Tenant services - 98,186 98,186

Utilities 12,500 14,718 2,218

Maintenance 20,750 46,408 25,658

General expense 528,600 83,443 (445,157)

Housing assistance payments 18,600,000 17,688,964 (911,036)

Total Operating Expenses 20,354,426 19,510,944 (843,482)

Operating Income/(Loss) (103,419) (281,096) (177,677)


Investment income 2,000 2,686 686

Total Nonoperating Revenues/(Expenses) 2,000 2,686 686

Net Loss excluding depreciation and capital

contributions (101,419)$ (278,410)$ (176,991)$

97

98

Statement of Revenues, Expenses and Changes in Net Position – Budget & Actual (Non-GAAP), Central Office

Cost Center



December 31, 2012


Operating Revenue

Fee revenue 2,621,898$ 2,777,682$ 155,784$

Other revenue 15,000 19,895 4,895

Total Operating Revenue 2,636,898 2,797,577 160,679

Operating Expenses

Administration 1,841,810 2,306,218 464,408

Tenant services - 11,233 11,233

Utilities 30,938 40,511 9,573

Maintenance 328,689 509,726 181,037

General expense 566,942 64,949 (501,993)

Total Operating Expenses 2,768,379 2,932,637 164,258

Operating Income/(Loss) (131,481) (135,060) (3,579)


Investment income - 4,798 (4,798)

Casualty losses - (1,000) 1,000

Transfers In/(Out) 29,300 (157,166) (1,455,367)

Net Loss excluding depreciation & capital

contributions (102,181)$ (288,428)$ (1,462,744)$

98

99

STATISTICAL SECTION

(Unaudited)

99

100

Table 1 – Net Position

Fiscal Year

Invested in capital

assets, net of

related debt Restricted assets

Unrestricted

assets Total

2003 21,870,821$ -$ 1,133,777$ 23,004,598$

2004 23,510,451 - 5,897,029 29,407,480

2005 26,541,247 3,520,424 6,243,002 36,304,673

2006 17,076,470 4,539,234 6,689,938 28,305,642

2007 17,501,647 7,806,754 10,326,812 35,635,213

2008 16,264,639 2,850,642 16,649,778 35,765,059

2009 15,299,856 8,069,925 10,261,788 33,631,569

2010 16,623,533 8,516,047 9,956,065 35,095,645

2011 16,542,828 9,483,408 8,095,871 34,122,107

2012 18,066,371 9,587,546 6,613,624 34,267,541

Source: previous and current year financial statements or CAFR



Last Ten Fiscal Years

(Unaudited)

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Net Position

Invested in capital assets, net of related debt Restricted assets Unrestricted assets

Source: Previous years and current year financial statements or CAFR

100

101

Tabl

e 2

– Ch

ange

s in

Net

Pos

itio

n

200

3 2

004

200

5 2

006

200

7 2

008

200

9 2

010

201

1 2

012

Ope

ratin

g Re

venu

e

Ren

tal r

even

ue

3,83

6,47

2$

3,

708,

834

$

4,26

8,05

8$

4,

418,

996

$

4,33

7,52

0$

4,

718,

335

$

4,79

0,39

1$

4,

589,

815

$

4,50

5,30

0$

4,

669,

756

$

Gra

nts

& s

ubsi

dies

26

,136

,337

28

,051

,859

27

,148

,860

30

,791

,443

32

,240

,376

32

,300

,372

28

,509

,792

33

,627

,721

32

,042

,316

31

,025

,492

Fee

reve

nue

-

-

-

-

-

2,47

8,51

2

2,

879,

241

3,66

2,40

8

2,

603,

228

2,77

7,68

2

O

ther

reve

nues

30

6,17

2

948,

056

1,

012,

471

1,37

1,00

8

1,

942,

188

226,

951

1,

077,

084

603,

094

62

9,14

8

366,

714

Tot

al o

pera

ting

reve

nue

30,2

78,9

81

32,7

08,7

49

32,4

29,3

89

36,5

81,4

47

38,5

20,0

84

39,7

24,1

70

37,2

56,5

08

42,4

83,0

38

39,7

79,9

92

38,8

39,6

44

Ope

ratin

g Ex

pens

es

Adm

inis

trativ

e 5,

688,

118

6,14

7,32

8

5,

333,

034

8,16

2,28

7

9,

369,

846

11,1

92,0

23

8,95

0,11

9

10

,799

,488

8,

886,

217

8,48

9,86

4

Ten

ant S

ervi

ces

82,3

43

164,

661

83

,506

1,

280,

776

197,

372

35

2,17

7

1,03

4,12

8

1,

205,

944

1,18

9,79

4

1,

060,

938

Util

ities

2,

732,

813

2,90

8,05

9

3,

081,

255

2,99

7,25

4

3,

109,

330

3,28

6,60

4

3,

131,

647

3,49

9,84

1

3,

320,

488

3,35

3,13

8

Mai

nten

ance

3,

276,

074

3,56

3,01

1

3,

342,

132

4,14

0,18

9

4,

276,

793

5,04

0,62

2

5,

371,

804

6,02

7,07

7

6,

338,

402

5,53

9,54

1

Pro

tect

ive

serv

ices

1,

160,

852

672,

234

10

0,19

4

112,

647

20

5,14

3

9,41

4

1,

585

169,

538

21

6,64

0

227,

809

Gen

eral

exp

ense

s 94

,184

47

,814

1,

472,

644

1,57

7,95

7

1,

174,

841

954,

731

99

1,40

9

1,56

4,04

2

1,

632,

583

1,59

7,55

0

Hou

sing

ass

ista

nce

paym

ents

17

,443

,129

17

,935

,837

16

,629

,195

17

,608

,090

19

,604

,964

17

,628

,478

18

,684

,549

19

,072

,050

18

,536

,427

17

,759

,833

D

epre

ciat

ion

& a

mor

tizat

ion

3,60

7,39

8

3,

659,

287

4,05

5,01

0

3,

550,

257

2,90

2,29

8

3,

364,

153

3,01

1,08

4

2,

980,

991

3,04

2,02

4

3,

375,

544

Tot

al o

pera

ting

expe

nses

34

,084

,911

35

,098

,231

34

,096

,970

39

,429

,457

40

,840

,587

41

,828

,202

41

,176

,325

45

,318

,971

43

,162

,575

41

,404

,217

Ope

ratin

g in

com

e/(lo

ss)

(3,8

05,9

30)

(2,3

89,4

82)

(1,6

67,5

81)

(2,8

48,0

10)

(2,3

20,5

03)

(2,1

04,0

32)

(3,9

19,8

17)

(2,8

35,9

33)

(3,3

82,5

83)

(2,5

64,5

73)

Non

oper

atin

g re

venu

es/e

xpen

ses

Inve

stm

ent i

ncom

e 81

,905

41

,939

37

2,27

1

343,

417

51

1,34

6

445,

545

46

,412

25

,800

13

,332

8,

040

Inte

rest

exp

ense

(1

00,3

99)

(171

,528

)

(2

05,9

55)

(210

,380

)

(2

00,8

13)

(162

,787

)

(1

43,3

86)

(137

,184

)

(1

18,0

83)

(103

,070

)

Cas

ualty

loss

-

-

-

-

-

-

-

-

36

,932

(2

3,64

7)

Mor

tgag

e in

tere

st in

com

e -

-

-

-

-

-

-

-

-

35

3,87

6

Gai

n/(lo

ss) o

n di

spos

ition

of a

sset

s 86

,516

-

-

1,

778,

251

3,11

5,15

8

10

,075

-

36

7,24

6

42,0

95

-

Tot

al n

onop

erat

ing

reve

nues

/exp

ense

s 68

,022

(1

29,5

89)

166,

316

1,

911,

288

3,42

5,69

1

29

2,83

3

(96,

974)

25

5,86

2

(25,

724)

23

5,19

9

Cha

nge

in n

et a

sset

s be

fore

cap

ital c

ontri

butio

ns

(3,7

37,9

08)

(2,5

19,0

71)

(1,5

01,2

65)

(936

,722

)

1,

105,

188

(1,8

11,1

99)

(4,0

16,7

91)

(2,5

80,0

71)

(3,4

08,3

07)

(2,3

29,3

74)

Cap

ital c

ontri

butio

ns

4,46

2,85

8

8,

647,

229

12,1

50,8

97

2,58

2,05

8

6,

304,

383

1,96

5,23

7

1,

796,

721

4,04

4,14

7

2,

434,

769

2,47

4,80

8

Cha

nge

in n

et p

ositi

on

724,

950

6,

128,

158

10,6

49,6

32

1,64

5,33

6

7,

409,

571

154,

038

(2

,220

,070

)

1,

464,

076

(973

,538

)

14

5,43

4

Spe

cial

item

-

-

-

-

-

(2

4,19

2)

-

-

-

-

Prio

r per

iod

adju

stm

ents

(3

88,2

97)

274,

724

(3

,752

,439

)

(9

,644

,367

)

(8

0,00

0)

-

86,5

80

-

-

-

Net

pos

ition

, beg

inni

ng o

f yea

r 22

,667

,945

23

,004

,598

29

,407

,480

36

,304

,673

28

,305

,642

35

,635

,213

35

,765

,059

33

,631

,569

35

,095

,645

34

,122

,107

Net

pos

ition

, end

of y

ear

23,0

04,5

98$

29,4

07,4

80$

36,3

04,6

73$

28,3

05,6

42$

35,6

35,2

13$

35,7

65,0

59$

33,6

31,5

69$

35,0

95,6

45$

34,1

22,1

07$

34,2

67,5

41$

Dur

ham

Hou

sing

Aut

hori

ty

Dur

ham

, Nor

th C

arol

ina

Las

t Ten

Fis

cal Y

ears

(Una

udite

d)

Sour

ce:

Prev

ious

yea

rs a

nd c

urre

nt y

ear

finan

cial

sta

tem

ents

or

CAFR

101

102

Table 3 – Operating Revenues By Source

Fiscal Year Amount % of Total Amount % of Total Amount % of Total Amount % of Total Total

2003 3,836,472$ 13% 26,136,337$ 86% -$ 0% 306,172$ 1% 30,278,981$

2004 3,708,834 11% 28,051,859 86% - 0% 948,056 3% 32,708,749

2005 4,268,058 13% 27,148,860 84% - 0% 1,012,471 3% 32,429,389

2006 4,418,996 12% 30,791,443 84% - 0% 1,371,008 4% 36,581,447

2007 4,337,520 11% 32,240,376 84% - 0% 1,942,188 5% 38,520,084

2008 4,718,335 12% 32,300,372 81% 2,478,512 6% 226,951 1% 39,724,170

2009 4,790,391 13% 28,509,792 77% 2,879,241 8% 1,077,084 3% 37,256,508

2010 4,589,815 11% 33,627,721 79% 3,662,408 9% 603,094 1% 42,483,038

2011 4,505,300 11% 32,042,316 81% 2,603,228 7% 629,148 2% 39,779,992

2012 4,669,756 12% 31,025,492 80% 2,777,682 7% 366,714 1% 38,839,644




(Unaudited)


Rental income Grants & subsidies Fee revenue Other revenues

$-

$10,000,000

$20,000,000

$30,000,000

$40,000,000

$50,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Operating Revenues By Source

Rental income Grants & subsidies Fee revenue Other revenues


102

103

Table 4 – Nonoperating Revenues By Source

Fiscal Year Amount % of Total Amount % of Total Amount % of Total Amount % of Total Total

2003 4,462,858$ 96% 81,905$ 2% -$ 0% 86,516$ 2% 4,631,279$

2004 8,647,229 100% 41,939 0% - 0% - 0% 8,689,168

2005 12,150,897 97% 372,271 3% - 0% - 0% 12,523,168

2006 2,582,058 55% 343,417 7% - 0% 1,778,251 38% 4,703,726

2007 6,304,383 63% 511,346 5% - 0% 3,115,158 31% 9,930,887

2008 1,965,237 81% 445,545 18% - 0% 10,075 0% 2,420,857

2009 1,796,721 97% 46,412 3% - 0% - 0% 1,843,133

2010 4,044,147 91% 25,800 1% - 0% 367,246 8% 4,437,193

2011 2,434,769 98% 13,332 1% - 0% 42,095 2% 2,490,196

2012 2,474,808 87% 8,040 0% 353,876 12% - 0% 2,836,724

Gain/(Loss) on sale of

assets





(Unaudited)

Capital contributions Interest revenue

Mortgage interest

income

$-

$10,000,000

$20,000,000

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Operating Revenues By Source

Capital contributions Interest revenue Gain/(Loss) on sale of assets


103

104

Tabl

e 5

– D

ebt S

ervi

ce C

over

age

200

3 2

004

200

5 2

006

200

7 2

008

200

9 2

010

201

1 2

012

Rev

enue

s 30

,442

,063

32

,785

,202

32

,573

,489

38

,592

,590

41

,804

,831

37

,445

,184

34

,585

,077

39

,385

,948

37

,369

,966

38

,839

,644

Exp

ense

s (3

4,08

4,91

1)

(35,

098,

231)

(3

4,09

6,97

0)

(39,

429,

457)

(4

0,84

0,58

7)

(41,

828,

202)

(4

1,17

6,32

5)

(45,

318,

971)

(4

3,16

2,57

5)

(41,

403,

579)

Rev

enue

ava

ilabl

e fo

r deb

t ser

vice

(3

,642

,848

)

(2

,313

,029

)

(1

,523

,481

)

(8

36,8

67)

964,

244

(4

,383

,018

)

(6

,591

,248

)

(5

,933

,023

)

(5

,792

,609

)

(2

,563

,935

)

Deb

t ser

vice

requ

irem

ents

Prin

cipa

l 76

,566

76

,453

14

4,10

0

232,

892

16

9,58

9

189,

451

20

7,81

0

198,

072

15

1,10

7

125,

148

Inte

rest

10

0,39

9

171,

528

20

5,95

5

210,

380

20

0,81

3

162,

787

14

3,38

6

137,

184

11

8,08

3

103,

070

Tot

al d

ebt s

ervi

ce

176,

965

24

7,98

1

350,

055

44

3,27

2

370,

402

35

2,23

8

351,

196

33

5,25

6

269,

190

22

8,21

8

Deb

t ser

vice

cov

erag

e (2

0.59

)

(9.3

3)

(4

.35)

(1.8

9)

2.

60

(1

2.44

)

(18.

77)

(1

7.70

)

(21.

52)

(1

1.23

)

Dur

ham

Hou

sing

Aut

hori

ty

Dur

ham

, Nor

th C

arol

ina

Las

t Ten

Fis

cal Y

ears

(Una

udite

d)

So

urce

: Pr

evio

us y

ears

and

cur

rent

yea

r fin

anci

al s

tate

men

ts o

r CA

FR

104

105

Table 6 – Ratio of Debt to Capital Assets

Fiscal Year Notes payable Total debt Capital assets

Ratio of total debt to

capital assets

2003 1,117,844$ 1,117,844$ 22,921,315$ 4.9%

2004 851,051 851,051 25,740,286 3.3%

2005 3,360,898 3,360,898 29,977,944 11.2%

2006 4,815,047 4,815,047 22,077,230 21.8%

2007 4,349,481 4,349,481 22,029,419 19.7%

2008 4,338,314 4,338,314 20,602,953 21.1%

2009 4,130,504 4,130,504 19,430,361 21.3%

2010 3,519,629 3,519,629 20,143,162 17.5%

2011 3,272,410 3,272,410 19,815,238 16.5%

2012 3,117,517 3,117,517 21,183,888 14.7%





(Unaudited)

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Ratio of total debt to capital assets

Ratio of total debt to capital assets


105

106

Table 7 – Property Characteristics and Unit Composition

Name of development Address Number of units

Year built or

acquired

Public housing units:

Club Boulevard 2415 Glebrook Drive, Durham NC 77 1967

Cornwallis Road 3000 Weaver Street, Durham NC 200 1967

Damar Court 1034 Sherwood Drive, Durham NC 102 1967

Forest Hill Heights 700 South Mangum Street, Durham NC 55 1981

Hoover Road 1126 Hoover Road, Durham NC 54 1968

JJ Henderson Housing Center 807 South Duke Street, Durham NC 178 1978

Laurel Oaks 600 Laurel Oaks Drive, Durham NC 30 1981

Liberty Street 131 Commerce Street, Durham NC 108 1972

McDougald Terrace 1101 Lawson Street, Durham NC 360 1953

Morreene Road 3412 Glasson Street, Durham NC 224 1968

Oldham Towers 519 East Main Street, Durham NC 106 1969

Oxford Manor 3633 Keystone Place, Durham NC 172 1971

Scattered Sites 300 Gary Street, Durham NC 50 1962

HOPE VI Various 131 various

Birchwood Various 4 various

Total public housing units 1,851

Section 8 program:

Tenant-based vouchers 2,660

Project-based vouchers 24

VASH vouchers 50

Total Section 8 units 2,734

Other housing units:

Edgemont Elms 912 Angier Avenue, Durham NC 57 1990

Preiss-Steele Place 500 Pickwick Trail, Durham NC 102 1993

Total other housing units 159

Total units 4,744




(Unaudited)

Source: Authority internal database

106

107

Table 8 – Staff Headcount By Program

Fiscal Year Public housing

Housing Choice

Voucher program

Central Office

Cost Center

Other housing

programs Total

2003

2004

2005 107 23 - 9 139

2006 106 18 - 6 130

2007 100 21 - 6 127

2008 62 20 33 5 120

2009 65 21 33 2 121

2010 73 24 33 2 132

2011 81 21 35 - 137

2012 78 17 28 - 123




(Unaudited)

-

20

40

60

80

100

120

140

160

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Staff Headcount By Program

Public housing Housing Choice Voucher program

Central Office Cost Center Other housing programs

Source: Authority budget documents

107

108


108

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