HomeMy WebLinkAboutMINUTES - 12172013 - HA C.2RECOMMENDATIONS
ACCEPT the financial and program compliance audit report for the period April 1, 2012 through March 31, 2013,
prepared by Harn & Dolan CPA's, Walnut Creek, California.
BACKGROUND
The U.S. Department of Housing & Urban Development (HUD) requires every housing authority to have an annual
independent audit conducted of its financial statements and business activities as well as of compliance with program
requirements for the public housing, housing choice voucher (Section 8) and Shelter-Plus Care programs. The
HACCC contracted with Harn & Dolan to prepare the audit report for the fiscal year ending March 31, 2013.
Harn & Dolan's audit identified no findings and no material weaknesses in either the financial or program compliance
portions of the audit.
The complete audit and the management letter are attached.
FISCAL IMPACT
Funding was provided for the audit contract in the Housing Authority of the County of Contra Costa's (HACCC)
Fiscal Year 2013/2014 Consolidated Operating Budget.
Action of Board On: 12/17/2013 APPROVED AS RECOMMENDED OTHER
Clerks Notes:
VOTE OF COMMISSIONERS
AYE:John Gioia, District I
Commissioner
Candace Andersen, District II
Commissioner
Mary N. Piepho, District III
Commissioner
Karen Mitchoff, District IV
Commissioner
Federal D. Glover, District V
Commissioner
ABSENT:Geneva Green, Tenant Seat
Commissioner
Contact: 925-957-8028
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: December 17, 2013
Joseph Villarreal, Executive Director
By: June McHuen, Deputy
cc:
C.2
To:Contra Costa County Housing Authority Board of Commissioners
From:Joseph Villarreal, Housing Authority
Date:December 17, 2013
Contra
Costa
County
Subject:Audit Report for the FYE March 31. 2013
CONSEQUENCE OF NEGATIVE ACTION
Should the Board of Commissioners elect not to accept the financial audit report as performed by the certified
public accountancy firm of Harn & Dolan, it would become necessary to expend additional funds to either redo
the financial audit report or contract with another certified public accountancy firm to conduct an audit of
HACCC's finances and programs.
CHILDREN'S IMPACT STATEMENT
CLERK'S ADDENDUM
ATTACHMENTS
Audit Management Letter
Audit FYE 2013
HOUSING AUTHORITY
OF THE COUNTY OF CONTRA COSTA
(A Component Unit of the County of Contra Costa)
BASIC FINANCIAL STATEMENTS
YEAR ENDED MARCH 31, 2012
(Including Auditors' Report Thereon)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
TABLE OF CONTENTS
Page
Independent Auditors' Report 1
Management’s Discussion and Analysis 3
Financial Statements:
Statement of Net Assets 12
Statement of Activities 14
Statement of Net Assets - Proprietary Funds 15
Statement of Revenues, Expenses, and Changes in Fund
Net Assets - Proprietary Funds 17
Statement of Cash Flows - Proprietary Funds 18
Notes to the Basic Financial Statements 20
Required Supplementary Information 52
Supplemental Information:
Schedule of Expenditures of Federal Awards 54
Notes to the Schedule of Expenditures of Federal Awards 55
Financial Data Schedule (CA011) 56
Combining Schedules for Use in the County CAFR 64
Schedule of Relevant Statistics 69
Statement of Completed Capital Fund Program Project 70
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 71
Independent Auditors' Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control over
Compliance in Accordance with OMB Circular A-133 73
Status of Prior Audit Findings 75
Schedule of Findings and Questioned Costs 77
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
INDEPENDENT AUDITORS' REPORT
To the Board of Commissioners
Housing Authority of the
County of Contra Costa
Martinez, California
We have audited the accompanying financial statements of the business-type activities, the aggregate
discretely presented component units, and the major fund of the Housing Authority of the County of Contra
Costa, component unit of the County of Contra Costa, California (the Authority), as of and for the year
ended March 31, 2012, which collectively comprise the Authority’s basic financial statements as listed in
the table of contents. These financial statements are the responsibility of the Authority's, management. Our
responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of HACCC Casa Del Rio, Inc, a California Nonprofit Public Benefit Corporation and
CDR Senior Housing Associates, a California Limited Partnership, which are combined and reported as
blended component units of the Primary Government in the Authority-wide financial statements and the
Authority’s Housing Fund in the fund financial statements and represent 13.4%, 0.2% and 0.5% of the
Housing Fund’s assets, net assets, and revenue, respectively. We did not audit the financial statements of
DeAnza Housing Corporation, a California Nonprofit Public Benefit Corporation and DeAnza Gardens L.P.
a California Limited Partnership, which are combined and reported as discretely presented component units
titled Component Units in the Authority-wide financial statements. Those financial statements were audited
by other auditors whose reports thereon have been furnished to us, and our opinion, insofar as it relates to the
amounts included for Component Units and Casa Del Rio Housing is based on the reports of the other auditors.
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 of material misstatement. An
audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit and
the reports of other auditors provide a reasonable basis for our opinions.
In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above
present fairly, in all material respects, the respective financial position of the business-type activities, the
aggregate discretely presented component units, and the major fund of the Authority, as of March 31, 2012,
and the respective changes in financial position and cash flows thereof for the year then ended in conformity
with accounting principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 11, 2012,
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
3
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
The management of the Housing Authority of the County of Contra Costa (the Authority) would like to provide the
readers of the Authority’s financial statements this narrative overview and analysis of the financial activities of the
Authority for the fiscal year ended March 31, 2012.
The Management Discussion and Analysis (MD&A) is an element of the reporting model adopted by the Governmental
Accounting Standards Board (GASB) in their Statement No. 34 Basic Financial Statements-and Management’s
Discussion and Analysis-for State and Local Governments issued in June 1999. Certain comparative information
between the current year and the prior year is required to be presented in the MD&A.
FINANCIAL HIGHLIGHTS
C Net assets increased by $191,470 (or 0.9%) during 2012 (see Table 1) as a result of current year activities.
C Unrestricted net assets (see Table 2) increased $1.8 million (or 38%) as a result of current year activities.
C Total revenue decreased by $12.0 million (or 11%) as a result of current year activities.
C Total expenditures decreased $6.4 million (or 6.0%) as a result of current year activities.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as introduction to the Authority’s basic financial statements. The
Authority’s basic financial statements are comprised of four parts as follows: (1) Authority-wide Financial
Statements, (2) Fund Financial Statements, (3) Notes to the Basic Financial Statements, and (4) Supplemental
Information.
AUTHORITY-WIDE FINANCIAL STATEMENTS
The Authority-wide financial statements are designed to be corporate-like in that all business type activities are
consolidated into columns that add to a total for the entire Authority. The discretely presented Component Units are
reported separately.
These Statements include a Statement of Net Assets, which is similar to a Balance Sheet. The Statement of Net Assets
reports all financial and capital resources for the Authority. The statement is presented in the format where assets equal
liabilities plus net assets (formerly known as equity). Assets and liabilities are presented in order of liquidity.
The focus of the Statement of Net Assets (the “Unrestricted Net Assets”) is designed to represent the net available liquid
(non-capital) assets, net of liabilities, for the entire Authority. Net Assets (formerly equity) are reported in three broad
categories:
Net Assets, Invested in Capital Assets, Net of Related Debt: This component of Net Assets consists of all Capital
Assets, reduced by the outstanding balances of any bonds, mortgages, notes or other borrowings that are attributable
to the acquisition, construction, or improvement of those assets, including accrued interest.
Restricted Net Assets: This component of Net Assets consists of restricted assets, when constraints are placed on
the asset by creditors (such as debt covenants), grantors, contributors, laws, regulations, etc.
Unrestricted Net Assets: Consists of Net Assets that do not meet the definition of “Net Assets Invested in Capital
Assets, Net of Related Debt”, or “Restricted Net Assets”.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
4
The Authority-wide financial statements also include a Statement of Activities (similar to an Income Statement). This
Statement measures net revenue (expense) for each of the Authority’s functions and reports revenue by program.
General revenue is reported separately. The activities for the enterprise funds are presented by federal program
administered by the Authority. The focus of the Statement of Activities is the “Change in Net Assets”, which is
similar to Net Income or Loss.
FUND FINANCIAL STATEMENTS
The Fund Financial Statements presentation is similar to the traditional government financial statements. The
statements are the Statement of Net Assets, the Statement of Revenue, Expenses, and Changes in Fund Net Assets,
and the Statement of Cash Flows. The focus is now on Major Funds, rather than fund types. The Authority’s funds
consist exclusively of Enterprise Funds. Enterprise funds utilize the full accrual basis of accounting. The Enterprise
method of accounting is similar to accounting utilized by the private sector accounting.
Many of the funds administered by the Authority are provided by the Department of Housing and Urban
Development. Others are segregated to enhance accountability and control. GASB’s 34 and 37 require individual
enterprise funds to be reported as major funds if total assets, liabilities, revenue, or expenses of that individual fund
exceed 10% or corresponding element total of the Authority as a whole. In the past, the Authority reported four
major funds and an aggregate column for non-major funds. Beginning April 1, 2006, the Authority reported all of
its activities in one major fund titled “Housing”. The Authority’s mission is to provide affordable housing within
the County of Contra Costa, regardless of grant or program. Therefore, we believe that reporting all activity in one
fund is consistent with this mission and simpler for the readers of the Authority’s report.
The Authority’s activity includes:
Public Housing – Under the Public Housing Program, (also titled as ‘Low Rent-Aided Housing’) the Authority rents
units that it owns to very low & low-income households. The Public Housing Program is operated under an Annual
Contributions Contract (ACC) with HUD. The ACC provides Operating Subsidy and Capital improvement Grant
funding to enable the PHA to provide the housing at a rent that is based upon 30% of household income or at a flat rate
below market rate. This is a major federal program.
Public Housing Capital Fund Grant - HUD provides grants for the modernization of the Public Housing Program units.
The modernization is accounted for by each grant, which is merged as a part of the Public Housing Program totals.
Housing Choice Voucher Program – Under the Housing Choice Voucher Program, (hereunder titled as ‘Voucher’
Program) the Authority administers the program under an Annual Contributions Contract (ACC) with HUD. The ACC
provides funding to the Authority to provide tenant based rental assistance to program participants. The rental assistance
payment is structured so as the rental payment that the participant is obligated to pay is 30% to 40% of household
income. This is a major federal program.
Casa Del Rio, Associates - Casa Del Rio, Senior Housing Associates (CDR) was formed as a limited partnership on
April 12, 1994, for the purpose of developing, owning and operating an 82-unit affordable housing rental complex (the
project) located in Antioch, California. The Project qualifies for low-income housing tax credits under Section 42 of
the Internal Revenue Service Code. Such projects are regulated under terms of a Regulatory Agreement, including rent
charges, operating methods and other matters. This limited partnership is considered to be a blended component unit
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
5
of the Authority. The most recent audits were for the fiscal year ended December 31, 2011. These reports can be
obtained from the Authority using the information on page 11.
Casa Del Rio, Incorporated - The general partner of the Partnership is HACCC Casa Del Rio, Inc., a California public
benefit corporation. The officers and Board members of HACCC Casa Del Rio, Inc. are employees of the
Authority, which was the developer of the Project, and is consider a blended component unit of the Housing
Authority. These component units receive separate audit reports performed on a calendar year basis. The most
recent audits were for the fiscal year ended December 31, 2011. These reports can be obtained from the Authority
using the information on page 11.
Shelter Plus Care Program – is designed to provide rental assistance and supportive services to homeless and
disabled individuals and their families. It is cooperatively administered by the County Health Services Department
and the Housing Authority of Contra Costa County, and has capacity to serve 200 households. Participants receive
rental assistance through the Housing Choice Voucher Program funded by the U.S. Department of Housing and
Urban Development. This is a major federal program.
Section 8 Rental Voucher – The Coggins Square family Apartments (150 Units) in the City of Pleasant Hill,
California, was developed under Section 8 Community Investment Demonstration (Pension Fund) Program of the
U.S. Department of Housing and Urban Development. HUD is responsible for the contract administration; however,
HUD has contracted with the Housing Authority to carry out the contract administrative functions for five of the
units under this program. The units are project based. HUD has selected a new administrator, hence this will be
the final year of this program.
Section 8 Moderate Rehabilitation – This program is a Department of Housing and Urban Development funded
rehabilitation program that provides project based rental assistance based on the Housing Choice Voucher
methodology in determining subsidized rent and program compliance.
CDBG Rental Rehabilitation Program (RRP) - Under the RRP, the Authority executes annual funding contract with
Contra Costa County to fund the operations of a program that assists rental property owners with rehabilitation of
housing units to help assure a supply of affordable rental apartments and homes for its Section 8/Voucher users and
other low-income households. Technical assistance in determining repairs is provided by Authority staff and below-
market-rate loans are made to cover part of rehabilitation costs. Program administrative costs are shared by the
funding providers and the Authority.
Rental Rehabilitation Program (RRP) - Under the RRP, the Authority operates a program that assists rental property
owners with rehabilitation of housing units to help assure a supply of affordable rental apartments and homes for
its Section 8/Voucher users and other low-income households. Technical assistance in determining repairs is
provided by Authority staff and below-market-rate loans are made to cover part of rehabilitation costs. Funds from
this program are to supplement the CDBG RRP for loans or administration.
WIA Youth Activities - Funds received to assist in “project Safe Neighborhoods”. These grant funds are primarily
used for our youth programs for youth in the North Richmond area.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
6
WIA Dislocated Workers - The Authority and the Contra Costa County Employment and Human Services
Department (Workforce Development Board) have teamed up to provide an employment service program for
summer youth and subsidized employment training program. The Authority provides the employer of record and
payroll services, the County provides the program selection, administration, and monitoring oversight.
Management Fund & County Programs – This program is often referred to as the “State and Local Fund”. The fund
represents non-HUD resources developed from a variety of activities, including developer fees, management fees,
program cost reimbursement, and other local and non local activities.
Central Office Cost Center (COCC) - The COCC fund earns revenue from fees and services provided to various
federal programs. The funds earned are considered non-HUD funds and go to cover the overhead and support
services provided to the various federal programs.
Discretely Presented Component Unit:
DeAnza Gardens L.P. (DeAnza)– DeAnza was formed as a limited partnership on December 10, 2001 for the
purpose of acquisition, ownership, maintenance, and operation of 180 multi-family affordable rental housing
complex located in Contra Costa County.
The project was built on land owned by and leased from the Housing Authority of the County of Contra Costa (the
Authority). Under the terms of the lease, title to the improvements reverts to the lessor at the end of the 75-year
lease. The Project qualifies for low-income housing tax credits under Section 42 of the Internal Revenue Service
Code. Such projects are regulated under terms of a Regulatory Agreement, including rent charges, operating
methods and other matters.
The general partner of DeAnza Gardens L.P. is DeAnza Corporation Inc., a California public benefit corporation.
The officers and Board members of the corporation are separate and apart from the Housing Authority. The only
Board member position in the corporation that represents the Housing Authority is the Executive Director, who
serves as one of the five board positions of the corporation. The Housing Authority has been designated as the
managing general partner.
The DeAnza entities, under HUD REAC’s direction, are to be considered by the Authority as other organizations
for which the nature and significance of their relationship with the Authority are such that exclusion would cause
the Authority’s financial statements to be misleading or incomplete. As such, the Authority considers these two
entities to be discretely presented component units. These component units receive separate audit reports performed
on a calendar year basis. The most recent audits were for the fiscal year ended December 31, 2011. These reports
can be obtained from the Authority using the information on page 11.
Also included in the Basic Financial statements are:
Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding
of the data provided in the fund financial statements.
Supplemental Information. Certain information is required to be included in this report by various federal agencies.
This information is included after the notes to the financial statements under the title supplemental information.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
7
AUTHORITY-WIDE STATEMENT
TABLE 1
STATEMENT OF NET ASSETS
The following table reflects the condensed Statement of Net Assets, for the primary government, compared to prior
year. The Authority is engaged only in Business-Type Activities.
Increase
March 31, 2012 March 31, 2011 (Decrease) %
Current assets $ 8,002,838 $ 6,512,632 1,490,206 22.88%
Restricted assets 4,914,388 5,562,731 (648,343)11.66%
Capital assets, net of depreciation 17,742,256 19,258,684 (1,516,428)7.87%
Other noncurrent assets 4,610,043 3,924,831 685,212 17.46%
Total assets $ 35,269,525 $ 35,258,878 $ 10,647 0.03%
Current liabilities 2,069,710 2,294,279 (224,569)9.79%
Payable from restricted assets 572,809 587,168 (14,359)2.45%
Long term liabilities 11,899,829 11,841,725 58,104 0.49%
Total liabilities 14,542,348 14,723,172 (180,824)1.22%
Net assets:
Invested in capital assets, net of debt 9,977,161 11,363,483 (1,386,322)12.20%
Restricted 4,352,136 4,556,652 (204,516)4.49%
Unrestricted 6,397,880 4,615,571 1,782,309 38.62%
Total net assets 20,727,177 20,535,706 191,471 0.93%
Total liabilities and net assets $ 35,269,525 $ 35,258,878 $ 10,647 0.03%
Major Factors Affecting the Statement of Net Assets
The major factors affecting the Statement of Net Assets were in the areas of Unrestricted Net Assets and
Invested in Capital Assets, net of debt. The increase in Unrestricted Net Assets was a result of the
improved position of the Authority’s overall net asset position from the current year activities. The
decrease in Invested in Capital Assets, net of debt was a result of depreciation for the year exceeding
capital additions.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
8
Table 2 below presents details on the change in Unrestricted Net Assets.
TABLE 2
CHANGE OF UNRESTRICTED NET ASSETS
2012 2011
Net gain (loss) before contributions (874,348) 2,676,151
Adjustments:
Depreciation which does not effect unrestricted net assets 2,690,198 2,505,099
Expenses paid from restricted accounts 8,750 171,950
Interest expensed, but not paid 78,787 24,547
Loss due to early retirement of capital assets - 31,874
Interest earned on restricted accounts (34,374) (43,912)
Restricted income (38,702) (127,578)
Use of excess HAP funding - Housing Choice Voucher 299,248 (2,193,367)
Net gain (loss) in unrestricted net assets due to operations 2,129,559 3,044,764
Other receipt (use) of unrestricted net assets
Capital additions not covered by capital grant or restricted reserves (95,811) (261,355)
Debt retired (208,893) (195,203)
Casa Del Rio - funding of restricted reserves for current year (42,546) (85,482)
Changes to unrestricted net assets 1,782,309 2,502,724
Beginning unrestricted net assets balance 4,615,571 2,112,847
Ending unrestricted net assets balance $ 6,397,880 $ 4,615,571
While the result of operations is a significant measure of the Authority’s activities, the analysis of the changes in
unrestricted net assets provides a clearer change in financial well-being.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
9
TABLE 3
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
The following schedule compares the revenues and expenses for the current and previous fiscal year. The Authority
is engaged only in Business-Type Activities.
Actual Budget Actual Budget
March 31, 2012 March 31, 2012 March 31, 2011 March 31, 2011
Operating revenue:
Rental and other $ 7,243,032 $ 5,359,572 $ 7,757,303 $ 5,686,677
Non-operating revenue:
Federal grants and subsidies 92,514,460 93,265,774 101,527,957 94,739,922
Capital contributions 1,065,819 1,669,648 3,082,636 2,533,202
Other revenue 304,309 3,205,979 220,242 5,351,854
Total revenues 101,127,620 103,500,973 112,588,138 108,311,655
Operating expenses:
Administration 10,686,821 11,655,772 11,443,189 10,806,099
Tenant services 373,099 458,772 5,481,412 3,917,453
Utilities 1,494,401 1,782,250 1,705,266 1,544,081
Maintenance 4,438,978 4,516,833 4,472,808 4,276,176
General 1,238,319 729,466 1,383,804 1,940,901
Housing assistance payments 79,688,775 81,314,909 79,466,654 82,663,651
Depreciation 2,690,198 2,450,000 2,505,099 2,286,609
Non-operating expenses:
Debt-service interest 322,416 340,500 336,105 346,072
Loss due to early retirement
of capital assets - - 31,874 -
Loan amortization 3,142 3,140 3,140 3,140
Total expenses 100,936,149 103,251,642 106,829,351 107,784,182
Changes in net assets 191,471 249,331 5,758,787 527,473
Net assets, beginning of the year 20,535,706 20,255,147 14,776,919 19,727,674
Net assets, end of the year $ 20,727,177 $ 20,504,478 $ 20,535,706 $ 20,255,147
Major Factors Affecting the Statement of Revenue, Expenses and Changes in Net Assets
The major factor affecting change in revenue as reflected in Table 3 above, is a decreases in HUD funding which
affected Federal Grants and Subsidies and Capital Contributions. The major factors affecting change in expenditures
as reflected above was in the area of tenant services. The employment service program expired and was not renewed
with the County Workforce Development Board.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
10
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of year-end, the Authority had $17.74 million invested, see also Note 6 to the basic financial
statements.
TABLE 4
CAPITAL ASSETS
March 31, 2012 March 31, 2011 Change
Land $ 1,825,993 $ 1,825,993 $ -
Buildings 93,722,131 92,575,493 1,146,638
Equipment 2,199,085 1,976,282 222,803
Accumulated depreciation (80,682,199) (77,992,002) (2,690,197)
Construction In Progress 677,246 872,918 (195,672)
Total $ 17,742,256 $ 19,258,684 $ (1,516,428)
The following reconciliation summarizes the change in Capital Assets.
TABLE 5
CHANGE IN CAPITAL ASSETS
2012 2011
Capital assets - beginning of year $ 19,258,684 $ 18,451,663
Additions:
Capital Fund Grant 1,065,819 978,576
Capital Fund ARRA Grant - 2,014,146
Improvements to dwelling units - 79,687
Equipment - computer upgrades 107,950 271,583
Disposal of capital assets prior to full depreciation - (31,874)
Depreciation (2,690,197) (2,505,097)
Capital assets - end of year $ 17,742,256 $ 19,258,684
Notes Payable Outstanding
As of year-end, the Authority had $6,335,443 of notes payable outstanding, see Note 7 to the basic
financial statements.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
MANAGEMENT DISCUSSION AND ANALYSIS
MARCH 31, 2012
(Continued)
11
ECONOMIC FACTORS
The Authority is primarily dependent upon HUD for funding operations; therefore, the Authority is
affected more by the federal budget than by state or local economic conditions. The Authority’s budgets
and subsidy funding requests are approved by HUD.
FINANCIAL CONTACT
The individual to be contacted regarding this report, and the reports of the Authority’s component units,
is John Hunter, Director of Finance of the Housing Authority of the County of Contra Costa, at (925) 957-
8014. Specific requests may be submitted to John Hunter, Director of Finance, Housing Authority of the
County of Contra Costa, P.O. Box 2759, 3133 Estudillo Street, Martinez, CA 94553.
12
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET ASSETS
MARCH 31, 2012
Primary Component
Government Units
Business-type
Activities
ASSETS
Current assets
Cash and investments (Note 2 and 15) $ 7,190,565 $ 35,780
Due from other agencies 439,911 -
Tenant accounts receivable 235,936 116,769
Allowance for doubtful accounts (115,948) (90,299)
Miscellaneous accounts receivable 41,543 -
Interest receivable 12,524 2,667
Notes receivable - short term (Note 5) 19,003 -
Prepaid expenses 179,304 28,997
Total current assets 8,002,838 93,914
Restricted assets:
Restricted cash (Note 2 and 3 and 15) 4,914,388 1,399,808
Capital assets (Note 6 and 15):
Land 1,825,993 1,150,712
On site improvements - 4,028,709
Buildings 93,722,131 29,655,110
Furniture and equipment 2,199,085 477,933
Construction in progress 677,246 -
Accumulated depreciation (80,682,199) (7,894,023)
Total capital assets 17,742,256 27,418,441
Other noncurrent assets:
Long-term notes receivable (Note 5) 1,678,809 -
Long-term notes receivable - DeAnza (Note 5 and 15) 1,000,000 -
Interest receivable on long-term notes (Note 5) 407,967 -
Due from related parties - DeAnza (Note 15) 1,483,522 -
Loan costs (net of amortization of $54,398 and $219,296) 39,745 172,165
Total other noncurrent assets 4,610,043 172,165
Total assets $ 35,269,525 $ 29,084,328
13
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET ASSETS
MARCH 31, 2012
(Continued)
Primary Component
Government Units
Business-type
Activities
LIABILITIES
Current liabilities:
Accounts payable $ 551,813 $ 36,242
Due to related parties - Other (Note 15) - 8,632
Due to other agencies 146,737 -
Accrued salaries and related costs 407,877 -
Accrued interest (Note 7 and 15) - 54,260
Unearned revenue (Note 9) 413,562 14,123
Current portion of compensated absences (Note 1.H.) 318,946 -
Current portion of long-term debt (Note 7 and 15) 230,775 166,471
Total current liabilities 2,069,710 279,728
Payable from restricted assets:
Tenant security deposits 347,235 159,522
Family self sufficiency escrows 225,574 -
Total payable from restricted assets 572,809 159,522
Other noncurrent liabilities:
Long-term portion of compensated absences (Note 1.H.) 60,193 -
Long-term debt (Note 7 and 15) 6,104,668 9,091,991
Long-term debt - Authority (Note 7 and 15) - 1,000,000
Other noncurrent liabilities (Note 10 and 15) 5,734,968 -
Due to related parties - Authority (Note15) -1,483,522
Total noncurrent liabilities 11,899,829 11,575,513
Total liabilities 14,542,348 12,014,763
NET ASSETS (Note 11)
Investment in capital assets, net of related debt 9,977,161 18,105,719
Restricted net assets 4,352,136 1,345,826
Unrestricted net assets 6,397,880 (2,381,980)
Total net assets 20,727,177 17,069,565
Total liabilities and net assets $ 35,269,525 $ 29,084,328
The accompanying notes are an integral part of this statement
14HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTASTATEMENT OF ACTIVITIESFOR THE YEAR ENDED MARCH 31, 2012Net (Expenses) Revenue and Changes in Net Assets Program Revenues Primary Gov’t Component UnitsCharges for Operating Capital Grants/ Business-type Expenses Services Grants Contributions Activities Function/ProgramsBusiness-type activities:Housing Choice Voucher $ 80,750,767 $ 780,991 $ 82,024,002 $ - $ 2,054,226 Public Housing 9,355,780 3,403,288 5,502,785 - (449,707)Public Housing Capital Fund1,097,125 - 1,362,8921,065,819 1,331,586 Shelter Plus Care 3,416,753 - 3,365,613 - (51,140)Section 8 Moderate Rehabilitation 233,277 - 173,240 - (60,037)Section 8 Rental Voucher 28,167 - 27,222 - (945)Workforce Investment Act 45,418 - 45,418 - - CDBG loan 137,780 62,872 - - (74,908)Rental Rehabilitation Loan 25,337 93,434 - - 68,097 Casa Del Rio Housing 775,584 489,419 - - (286,165)Project Safe Neighborhood 4,266 - 4,266 - - Other State and Local 2,482,54940,285 --(2,442,264)Total primary government $ 98,352,803$ 4,870,289 $ 92,505,438$ 1,065,81988,743 Component Units:DeAnza Housing Corp & Subsidiary $ 2,989,179$ 2,005,755 $-$- $ (983,424)Total component units $ 2,989,179$ 2,005,755 $-$- (983,424)General revenues:Unrestricted interest 102,728 - Total general revenues 102,728 - Change in net assets 191,471 (983,424)Net assets - beginning of the year 20,535,706 18,052,989 Net assets - end of the year $ 20,727,177 $ 17,069,565 The accompanying notes are an integral part of this statement
15
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
MARCH 31, 2012
Housing
ASSETS
Current assets
Cash and investments (Note 2) $ 7,190,565
Due from other funds (Note 4) 890,032
Due from other agencies 439,911
Tenant accounts receivable 235,936
Allowance for doubtful accounts (115,948)
Accounts receivable - miscellaneous 41,543
Interest receivable 12,524
Notes receivable - short term (Note 5) 19,003
Prepaid expenses 179,304
Total current assets 8,892,870
Restricted assets:
Restricted cash (Note 2 and 3) 4,914,388
Capital assets (Note 6):
Land 1,825,993
Buildings 93,722,131
Furniture and equipment 2,199,085
Construction in progress 677,246
Accumulated depreciation (80,682,199)
Total capital assets 17,742,256
Other noncurrent assets:
Long-term notes receivable (Note 5 and 15) 2,863,809
Interest receivable on long-term notes (Note 5) 407,967
Due from related parties - DeAnza (Note 15) 1,483,522
Due from other funds - Casa Del Rio (Note 15) 246,733
Loan costs (net of amortization of $54,398) 39,745
Total other noncurrent assets 5,041,776
Total assets $ 36,591,290
16
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
MARCH 31, 2012
(Continued)
Housing
LIABILITIES
Current liabilities:
Accounts payable $ 551,813
Due to other funds (Note 4) 890,032
Due to other agencies 146,737
Accrued salaries and related costs 407,877
Unearned revenue (Note 9) 413,562
Current portion of compensated absences (Note 1.H.) 318,946
Current portion of long-term debt (Note 7) 230,775
Total current liabilities 2,959,742
Payable from restricted assets:
Tenant security deposits 347,235
Family self sufficiency escrows 225,574
Total payable from restricted assets 572,809
Other noncurrent liabilities:
Long-term portion of compensated absences (Note 1.H.) 60,193
Long-term debt (Note 7) 6,289,668
Due to other funds (Note 15) 246,733
Other noncurrent liabilities (Note 10) 5,734,968
Total noncurrent liabilities 12,331,562
Total liabilities 15,864,113
NET ASSETS (Note 11)
Investment in capital assets, net of related debt 9,977,161
Restricted net assets 4,352,136
Unrestricted net assets 6,397,880
Total net assets 20,727,177
Total liabilities and net assets $ 36,591,290
The accompanying notes are an integral part of this statement
17
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2012
Housing
Operating revenue:
Rents and other tenant revenue $ 3,542,076
Other 3,709,978
Total operating revenue 7,252,054
Operating expenses:
Administration 10,686,821
Tenant services 373,099
Utilities 1,494,401
Maintenance 4,438,978
General 1,238,319
Housing assistance payments 79,688,775
Depreciation (Note 6) 2,690,198
Total operating expenses 100,610,591
Operating income (loss) (93,358,537)
Nonoperating revenue (expenses):
Grants 92,505,438
Unrestricted interest 102,728
Mortgage interest 52,247
Restricted interest 34,374
Interest earned on notes receivable with related party (Note 5 & 15) 30,000
Fees charged to a related party (Note 15) 84,960
Amortization - loan fees (3,142)
Debt service - interest (Note 7) (322,416)
Net income (loss) before contributions and transfers (874,348)
Capital contributions 1,065,819
Net income 191,471
Net assets - beginning of year 20,535,706
Net assets - end of year $ 20,727,177
The accompanying notes are an integral part of this statement.
18
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2012
Housing
Cash flows from operating activities:
Tenant receipts $ 3,402,977
Other receipts 1,029,696
Payroll and benefit expenditures (8,969,182)
Administration expenditures (1,655,678)
Tenant services expenditures (127,129)
Utilities expenditures (1,494,401)
Maintenance expenditures (2,382,416)
General expenditures (556,333)
Housing assistance payment expenditures (79,694,555)
Net cash used by operating activities (90,447,021)
Cash flows from noncapital financing activities:
Operating grants received 91,944,281
Related parties transactions 294,779
Repayment of notes receivable 27,350
Interest received on notes receivable 2,360
Notes receivable issued (net of borrower’s match) (102,698)
Net cash provided by noncapital financing activities 92,166,072
Cash flows from capital financing activities:
Grants received to acquire capital assets 1,065,819
Acquisition of capital assets (1,173,769)
Principal paid on debt (208,893)
Interest paid on debt (243,629)
Net cash used by capital financing activities (560,472)
Cash flows from investing activities:
Interest receipts 101,674
Interest on restricted cash 32,920
Net cash provided by investing activities 134,594
Net increase to cash 1,293,173
Cash at beginning of year 10,811,780
Cash at end of year $ 12,104,953
Cash and investments $ 7,190,565
Restricted cash 4,914,388
Total cash at year end $ 12,104,953
19
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED MARCH 31, 2012
(Continued)
Housing
Reconciliation of operating loss to net
cash used by operating activities:
Operating loss $ (93,358,537)
Adjustments to reconcile operating loss to
Net cash used by operating activities:
Depreciation expense 2,690,198
(Increase) Decrease in:
Due from other governments 11,083
Tenants accounts receivable 16,503
Other accounts receivable (34,668)
Prepaid expenses 2,372
Increase (Decrease) in:
Accounts payable 49,036
Due to other agencies 65,451
Tenant security deposits 3,004
Accrued salaries 178,406
Unearned revenues - not associated with grants (106,339)
FSS escrows (17,363)
Compensated absences (37,033)
Noncurrent liabilities (90,159)
Post retirement benefits 181,025
Net cash used by operating activities $ (90,447,021)
Noncash transactions:
C Capital assets of $1,167,154 were transferred from Capital Fund to Public Housing to facilitate the close out of a Capital Fund
grant.
C Interest of $78,787 was accrued as payable to RHCP. The payments on this loan are deferred, unless the project generates
surplus cash.
C Interest of $30,000 was accrued as receivable from DeAnza Gardens L.P. No payments were received with regards to this
loan.
C Lease fees of $72,000 were accrued as receivable from DeAnza Gardens L.P. These fees are deferred.
C Interest on the Rental Rehabilitation loans of $8,498 was accrued, while none was received. The interest on these loans is due
at maturity.
C Interest on the CDBG loans of $43,749 was accrued, while $2,360 was received. Interest is due only at maturity.
The accompanying notes are an integral part of this statement.
20
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
Note 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of The Housing Authority of the County of Contra Costa (the
Authority) have been prepared in conformity with accounting principles generally accepted in
the United States of America as applied to governmental entities. The Governmental Accounting
Standards Board (GASB) is the accepted standard setting body for establishing governmental
accounting and financial reporting principles.
A. Organization
The Authority was established pursuant to the State Health and Safety Code in 1941. The
Authority is a public entity organized under the laws of the State of California’s Health and
Safety Code to provide housing assistance to low and moderate income families at rents they
can afford. Eligibility is determined by family composition and income in areas served by
the Authority. To accomplish this purpose, the Authority has entered into Annual
Contributions Contracts with the U.S. Department of Housing and Urban Development
(HUD) to operate assisted housing programs.
The Authority is a legally separate entity from the County, maintaining separate accounting
records, staff, and administration facilities. The governing board of the Authority is the
County Board of Supervisors plus three ad hoc tenant appointees, selected by the
Supervisors. The tenant appointees should be comprised of a current program participant
that is classified as a senior, a current program participant that is either homeless or formerly
homeless, and a current program participant that is at large. It is the opinion of both the
County and Authority’s management that there is no financial benefit/burden relationship
between the County and the Authority. It is further believed that the County has limited
opportunity to impose its will upon the Authority due to the fact that the majority of the
Authority’s funds are granted by the Federal government through the U.S. Department of
Housing and Urban Development. The County has therefore opted to implement GASB 61
prior to its mandated effective date and remove the Authority as a blended component unit
of the County as of its fiscal year end of June 30, 2012. Since the Authority continues to be
a related organization to the County, the County intends to include the Authority’s financial
information as a Discretely Presented Component Unit in its Comprehensive Annual
Financial Report (CAFR) of the County of Contra Costa. A copy of this report may be
obtained by contacting the Office of the Auditor-Controller, 625 Court Street, Martinez,
California 94553.
B. Financial Reporting Entity
The Authority’s combined financial statements include the accounts of all the Authority’s
operations. The criteria for including organizations as component units within the Authority’s
reporting entity, as set forth in Section 2100 of GASB’s Codification of Governmental
Accounting and Financial Reporting Standards, include whether:
* The organization is legally separate (can sue and be sued in their own name)
* The Authority holds the corporate powers of the organization
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
21
* The Authority appoints a voting majority of the organization’s board
* The Authority is able to impose its will on the organization
* The organization has the potential to impose a financial benefit/burden on the
Authority
* There is financial dependency by the organization on the Authority
Based on the aforementioned criteria, the Authority has blended and discretely presented
component units. The accompanying financial statements present the Authority and its
component units, entities for which the Authority is considered to be financially accountable.
The blended component units, although legally separate entities, are, in substance, part of
the authority’s operations. Discretely presented component units are reported in a separate
column in the government-wide financial statements to emphasize that they are legally
separate from the government. The component units are as follows:
Blended Component Units. HACCC Casa Del Rio, Inc (A California Nonprofit Public
Benefit Corporation) and CDR Senior Housing Associates (A California Limited
Partnership) . HACCC Casa Del Rio, Inc. is the general partner of CDR Senior Housing
Associates. The officers and Board members of HACCC Casa Del Rio, Inc. are employees
of the Authority. The partnership was formed in 1994 to develop and operate an 82-unit
affordable housing rental complex located in Antioch, California, which is currently known
as Casa Del Rio Senior Housing.
Casa Del Rio Senior Housing was placed into service in 1995. Pursuant to the
Indemnification Agreement dated July 1, 1994, by and among the Authority, HACCC Casa
Del Rio, Inc., CDR Senior Housing Associates, and MHIFED I Limited Partnership, the
Authority could possibly be liable for unpaid taxes, interest and penalties, cost to contest,
operating deficiency and expenses of enforcement as identified in the Agreement and for
a sponsor’s operating guaranty to provide sufficient staff or equipment to the general partner,
as needed and remedies against sponsor for default under the Amended HCD Agreement.
Casa Del Rio Senior Housing participates in the low-income housing tax credit program
under Section 42 of the Internal Revenue Code. Various agreements dictate the maximum
income levels of new tenants and also provide rent restrictions through 2054.
Since HACCC Casa Del Rio, Inc and CDR Senior Housing Associates have the potential to
impose a financial burden on the Authority, these entities have been included in the
Authority’s financial statements as blended component units.
Discretely Presented Component Units. DeAnza Housing Corporation (A California
Nonprofit Public Benefit Corporation) and DeAnza Gardens, L.P. (A California Limited
Partnership). The Authority is the General Partner and DeAnza Housing Corporation is the
managing general partner of DeAnza Gardens, L.P. The partnership was formed for the
purpose of acquisition, ownership, maintenance, and operation of 180 multi-family rental
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
22
housing units and the provision of low-income housing through the construction, renovation,
rehabilitation, operation, and leasing of an affordable housing development located in Contra
Costa County, which is currently known as DeAnza Gardens.
DeAnza Gardens was placed into service during 2005. It was built on land owned by and
leased from the Authority. Under the terms of the lease, title to the improvements revert to
the Authority at the end of the 75-year lease. Financing for construction was obtained
through notes from the Authority, Bank of America, and DeAnza Housing Corporation.
DeAnza Gardens participates in the low-income housing tax credit program under Section
42 of the Internal Revenue Code. Various agreements dictate the maximum income levels
of new tenants and also provide rent restrictions through 2078.
Since DeAnza Housing Corporation and DeAnza Gardens L.P. are other organizations for
which the nature and significance of their relationship with the Authority are such that
exclusion from the financial statements would cause the Authority’s financial statements to
be misleading or incomplete, these entities have been included in the Authority’s financial
statements as discretely presented component units.
Complete audited financial statements are issued separately for each of the individual
component units listed above and may be obtained from the Housing Authority of the
County of Contra Costa, 3133 Estudillo Street, P.O. Box 2759, Martinez, California 94553.
C. Basis of Presentation
Government-Wide Financial Statements:
The Statement of Net Assets and Statement of Activities display information about the
Authority as a whole. They include all funds of the Authority and a column for discretely
presented component units. The Authority has no fiduciary funds. The statements
distinguish between governmental and business-type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues and other non-exchange
revenues. Business-type activities are financed in whole or in part by fees charged to
external parties for goods or services. The Authority’s activities are strictly business-type.
Fund Financial Statements:
Fund financial statements of the Authority are organized into funds, each of which is
considered a separate accounting entity. The operations of each fund are accounted for
within a separate set of self balancing accounts that comprise its assets, liabilities, fund
equity, revenues, and expenses/expenditures as appropriate. Government resources are
allocated to, and accounted for, in individual funds based upon the purpose for which they
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
23
are to be spent and the means by which spending activities are controlled. A fund is
considered major if it is the primary operating fund of the Authority or if total assets,
liabilities, revenue, or expenses/expenditures of the individual fund are at least 10 percent
of the Authority-wide total. Beginning April 1, 2006, the Authority considers all of its
activity to be housing related and therefore, considers all the financial activity of the
Authority to be one major fund, titled Housing. As such, the Authority has no non-major
funds.
PROPRIETARY FUND TYPES
Enterprise Funds - Enterprise funds are used to account for operations that are financed and
operated in a manner similar to private business enterprises, where the intent is that costs of
providing goods or services to the general public on a continuing basis be financed or
recovered primarily through user charges. Enterprise funds are also used when the
governing body has decided that periodic determination of revenue earned, expenses
incurred, or net income is appropriate for capital maintenance, public policy, management
control, accountability or other purposes.
D. Measurement Focus and Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when
revenues and expenditures are recognized in the accounts and reported in the financial
statements. Basis of accounting relates to the timing of the measurement made, regardless of
the measurement focus applied.
The Proprietary Fund Types are accounted for on an economic resources measurement focus
using the accrual basis of accounting. Revenues are recognized when they are earned and
expenses are recorded at the time liabilities are incurred. Under this basis of accounting and
measurement focus, the Authority applies (a) all GASB pronouncements and (b) FASB
Statements and Interpretations, APB opinions, and Accounting Research Bulletins issued on
or before November 30, 1989, except those that conflict with a GASB pronouncement.
Proprietary funds distinguish operating revenues and expenses from nonoperating items.
Operating revenues and expenses result from providing goods and services related to the
fund’s ongoing operations. The principal operating revenue of the Authority’s enterprise
funds is dwelling rental income. Operating expenses are necessary costs that have been
incurred in order to provide the good or service that is the primary activity of the fund. All
revenues and expenses not meeting this definition are reported as nonoperating revenues and
expenses.
When the Authority incurs an expense for which both restricted and unrestricted resources
may be used, it is the Authority’s policy to use restricted resources first and then unrestricted
resources as needed.
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
24
E. Interfund Transactions
Statement of Net Assets:
Short-term amounts due between funds are classified as “Due from/to other funds”. For the
purpose of the Authority-Wide Statement of Net Assets, due from/to other funds, totaling
$890,032, have been eliminated. See also Note 4.
A long-term note due from the Management Enterprise Fund to the blended component unit,
HACCC Casa Del Rio, Inc in the amount of $185,000 has been eliminated from the
Authority-Wide Statement of Net Assets. See also note 5 and 7.
The Authority has made advances to the blended component unit, CDR Senior Housing
Associates in the amount of $246,733 as of March 31, 2012. This balance includes operating
balances as well as unpaid property management fees. This amount is considered to be long-
term and has been eliminated from the Authority-Wide Statement of Net Assets.
Statement of Activities:
Participants of the Housing Choice Voucher Program have decided to occupy units owned
by the Authority’s blended component unit. Housing assistance payments made by the
Housing Choice Voucher Program to Casa Del Rio Senior Housing (CDR) totaled $11,583
for the fiscal year ended March 31, 2012. CDR also paid the Authority $52,452 during the
current fiscal year for management fees.
The Authority utilizes a Central Office Enterprise Fund to account for administrative costs
that are not charged to its Public Housing and Housing Choice Voucher Program Enterprise
Funds. The Housing Choice Voucher Enterprise Fund paid management fees and
bookkeeping fees in the amount of $910,380 and $568,987, respectively. The Public
Housing Enterprise Fund paid property management, bookkeeping, and asset management
fees in the amount of $932,610, $90,150, and $17,184, respectively. These costs, totaling
$2,519,311, are reported as other revenue in the Central Office Enterprise Fund.
Interfund revenue/expenses of $2,583,346 have been eliminated for the purpose of preparing
the Authority-Wide Statement of Activities.
Interfund transfers of $1,195,563 were made to close out programs and grants. Interfund
transfers of $75,000 were made to cover operating costs. These interfund transfers of
$1,270,563 have been eliminated from the Authority-Wide Statement of Activities.
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
25
F. Capital Assets
Capital assets, which include property, plant and equipment, acquired for Proprietary Funds
are capitalized in the respective funds to which they apply. The Authority has an established
capitalization policy, which requires all acquisitions of property and equipment in excess of
$5,000 and all expenditures for repairs, maintenance, renewals, and betterments that
materially prolong the useful lives of assets to be capitalized. Property and equipment are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation. Interest
expense incurred during the development period is capitalized. The costs of normal
maintenance and repairs that do not add to the value of the asset or materially extend assets
lives are not capitalized.
Depreciation of exhaustible capital assets used by Proprietary Funds is charged as an
expense against operations, and accumulated depreciation is reported on the Statement of
Net Assets. Capital assets are being depreciated using the straight-line basis over the useful
lives of the assets. The useful lives are generally 27.5 years for buildings, 10 years for
modernization, 5 years for vehicles, furniture and equipment, and 3 years for computer
equipment.
G. Accounts Receivable
Receivables are principally amounts due from HUD and tenants. Allowance for doubtful
accounts has been provided based on the likelihood of the recovery.
H. Compensated Absences
It is the Authority’s policy to permit employees to accumulate earned but unused
vacation and sick pay benefits. There is no liability for unpaid accumulated sick leave
since the government does not have a policy to pay any amounts when employees
separate from service with the Authority. All vacation pay is accrued when incurred and
allocated to the appropriate proprietary fund. Total liability for the Authority is
$379,139 based on year-end hourly rates. Of this amount $318,946 is considered by the
Authority to be a current liability.
I. Net Assets
Net assets represents the differences between assets and liabilities. Net Assets consist
of investment in capital assets, net of related debt; restricted net assets; and unrestricted
net assets. Net assets invested in capital assets, net of related debt, consists of capital
assets, net of accumulated depreciation, reduced by the outstanding balances of
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
26
borrowing used for acquisition, construction, or improvement of those assets (excluding
interfund borrowing and including accrued interest). Net assets are reported as restricted
when there are limitations imposed on their use through constitutional provisions or
enabling legislation or through external restrictions imposed by creditors, grantors, or
laws or regulations of other governments.
J. Cash and Investments
Cash includes amounts in demand deposits and saving accounts. Investments are
reported in the accompanying statement at market value. All of the Authority’s
investments can be converted to cash in a relatively short amount of time. Therefore, all
cash and investments are used in the Statement of Cash Flows.
Changes in fair value that occur during a fiscal year are recognized as interest income
reported for that fiscal year. Interest income includes interest earnings, changes in fair
value, and any gains or losses realized upon the liquidation, maturity, or sale of
investments.
The Authority pools cash and investments of all programs. Each program’s share in this
pool is displayed in the accompanying Financial Data Schedule as cash and investments.
Interest income earned by the pooled investments is allocated to the various funds based
on each fund’s average cash and investment balance.
K. Taxes
The Authority is exempt from federal and state income taxes. The Authority is also
exempt from property taxes but makes payments in lieu of taxes on owned housing.
L. Budgets and Budgetary Accounting
The Board of Commissioners adopts an operating budget effective April 1 annually.
This budget may be revised during the year to give consideration to unanticipated
revenue and expenditures primarily resulting from events unknown at the time of budget
adoption.
M. Estimates
Management uses estimates and assumptions in preparing financial statements. Those
estimates and assumptions affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported revenues and expenses.
Actual results could differ from those estimates.
Note 1 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
27
N. Encumbrances
Encumbrance accounting is not employed by the Authority.
O. Grant Restrictions
The Authority has received loans and grants from the U.S. Department of Housing and
Urban Development. The grants require that only individual and families that meet
various income, age and employment standards be housed or aided.
P. Cost Allocation Procedures
Cost allocation procedures are divided into one of two types, direct cost allocation
method or indirect cost allocation method. The two methods are described as follows:
C Direct Allocation Method: this method is used when the cost being incurred directly
benefits a specific “program, region, development, project or site”. Allocation at the
regional, project or site level shall be allocated by using the ratio of number of
bedroom (zero bedroom units will count as 1).
C Indirect Allocation Method: this method is used when the cost being incurred is for
a common or joint objective and therefore does not directly benefit a specific
“program, region, development, project or site”. These costs will be allocated using
the direct salary allocation plan consistent with OMB-A87. The direct annual salary
allocation plan will be established annually as a part of the annual budget.
Salaries and related benefits will be allocated using the methods described above.
Positions that perform work outside of their budgeted position will employ a fee for
service approach to charge the other program. The fee for service approach will reduce
the allocation of salary and benefits from the program that the position was originally
budgeted for, and in future years will provide a more accurate budgeting and forecasting
process.
Note 2 - CASH AND INVESTMENT
Cash and investments as of March 31, 2012 are classified in the accompanying financial
statement as follows:
Statement of net assets:
Cash and investments $ 7,190,565
Restricted cash 4,914,388
Total Cash & Investments $ 12,104,953
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
28
Demand deposits $ 4,270,503
Investments 7,831,650
Cash on hand 2,800
Total Cash & Investments $ 12,104,953
Investments Authorized by the Authority’s Investment Policy
Investments authorized by the Authority are empowered by the HUD Notice 99-48 and its
own investment policy to invest HUD funds in the following:
C United States Treasury Bills, Notes and Bonds;
C Obligations issued by Agencies or Instrumentalities of the U.S. Government;
C State or Municipal Depository Funds, such as the Local Agency Investment Fund (LAIF)
or pooled cash investment funds managed by County treasurers;
C Insured Demand and Savings Deposits, provided that deposits in excess of the insured
amounts must be 100% collateralized by federal securities;
C Insured Money Market Deposit Accounts;
C Insured SUPER NOW accounts, provided that deposits in excess of the insured amount
must be 100% collateralized by federal securities;
C Negotiable Certificates of Deposit issued by federally or state chartered banks or
associations, limited to no more than 30% of surplus funds;
C Repurchase/Reverse Repurchase Agreements of any securities authorized by this section;
securities purchased under purchase agreements shall be no less than 102% of market
value;
C Sweep Accounts that are 100% collateralized by federal securities;
C Shares of beneficial interest issued by diversified management companies investing in the
securities and obligations authorized by this Section (Money Market Mutual Funds);
Funds must carry the highest rating of at least two national rating agencies and are limited
to not more than 20% of surplus funds;
C Funds held under the terms of a Trust Indenture or other contract or agreement including
the HUD/PHA Annual Contributions Contract, may be invested according to the
provisions of those indentures or contracts; and
C Any other investment security authorized under the provisions of HUD Notice PIH 97-41.
The Authority is empowered by the California Government Code (CGC) Sections 5922 and
53601 et seq and its own investment policy to invest non-HUD funds in the following:
C Bonds issued by the local entity with a maximum maturity of five years;
C United States Treasury Bills, Notes and Bonds;
C Registered state warrants or treasury notes or bonds issued by the State of California;
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
29
C Bonds, notes, warrants or other evidence of debt issued by a local agency within the State
of California, including pooled investment accounts sponsored by the State of California,
County Treasurer, other local agencies or Joint Powers Agencies;
C Obligations issued by Agencies or Instrumentalities of the U.S. Government;
C Bankers Acceptances with a term not to exceed 270 days, limited to 40% of surplus
funds; no more than 30% of surplus funds can be invested in Bankers Acceptances of any
single commercial bank;
C Prime Commercial Paper with a term not to exceed 180 days and the highest ranking
issued by Moody’s Investors Service or Standard & Poor’s Corp., limited to 15% of
surplus funds; provided that if the average total maturity of all commercial papers does
not exceed 31 days up to 30% of surplus funds can be invested in commercial papers.
C Negotiable Certificates of Deposit issued by federally or state chartered banks or
associations, limited to not more than 30% of surplus funds;
C Repurchase/Reverse Repurchase Agreements of any securities authorized by this Section,
securities purchased under these agreements shall be no less than 102% of market value.
Securities purchased under reverse repurchase agreements shall be for temporary and
unanticipated cash flow needs only.
C Medium term notes (not to exceed two years) of U.S. corporations rated “AAA” or better
by Moody’s or Standard & Poor’s limited to not more than 30% of surplus funds;
C Shares of beneficial interest issued by diversified management companies investing in the
securities and obligations authorized by this Section (Money Market Mutual Funds),
limited to not more than 15% of surplus funds;
C Funds held under the terms of a Trust Indenture or other contract or agreement may be
invested according to the provisions of those indentures or agreements;
C Collateralized bank deposits with a perfected security interest in accordance with the
Uniform Commercial Code (UCC) or applicable federal security regulations;
C Any mortgage pass-through security, collateralized mortgage obligation, mortgaged
backed or other pay-through bond, equipment least-backed certificate, consumer
receivable pass-through certificate or consumer receivable backed bond of a maximum
maturity of five years, securities in this category must be rated AA or better by a national
rating service and are limited to not more than 30% of surplus funds;
C Any other investment security authorized under the provisions of California Government
Code Sections 5922 and 53601.
Disclosure Related to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair
value of an investment. Generally, the longer the maturity of an investment, the greater the
sensitivity of its fair value to changes in the market rates. See the table on page 32 for the
maturity dates for each of the Authority’s investments.
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
30
Disclosures related to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation
to the holder of the investment. This is measured by the assignment of a rating by a
nationally recognized statistical rating organization. See the table on page 32 for the ratings
assigned to the issuer for each of the Authority’s investments.
Concentration of Credit Risk
See the table on page 32 to determine how the Authority’s investments are concentrated.
These investments are owned by the following programs:
Housing Choice Voucher Program $ 4,632,524 59.15%
Other State and Local Programs 1,398,039 17.85%
Public Housing Program 1,594,284 20.36%
Rental Rehabilitation Loan Program 101,854 1.30%
Casa Del Rio 104,949 1.34%
Total investments $ 7,831,650
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository
financial institution, a government will not be able to recover its deposits or will not be able
to recover collateral securities that are in the possession of an outside party. The California
Government Code and the Authority’s investment policy do not contain legal or policy
requirements that would limit the exposure to custodial credit risk for deposits, other than the
following provision for deposits: The California Government Code requires California banks
and savings and loan associations to secure the Authority’s deposits not covered by federal
deposit insurance by pledging mortgages or government securities as collateral. The market
value of the pledged securities in the collateral pool must equal at least 110% of the total
amount deposited by the public agencies. California law also allows financial institutions to
secure Authority deposits by pledging first trust deed mortgage notes having a value of 150%
of the secured public deposits. Such collateral must be held in the pledging bank’s trust
department in a separate depository in an account for the Authority.
The custodial risk for investments is the risk that, in the event of the failure of the
counterparty (broker-dealer, etc) to a transaction, a government will not be able to recover
the value of its investment or collateral securities that are in the possession of another party.
The California Government Code and the Authority’s investment policy do not contain legal
or policy requirements that would limit the exposure to custodial credit risk for investments.
With respect to investments, custodial credit risk generally applies only to direct investments
in marketable securities. Custodial credit risk does not apply to a local government’s indirect
investment in securities through the use of mutual funds or government investment pools
(such as LAIF)
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
31
The Authority has executed depository agreements with the two banks with which it currently
does business. The “General Depository Agreement” with WestAmerica Bank is dated
October 24, 2005. It states that “any portion of PHA funds not insured by a Federal insurance
organization shall be fully (100%) and continuously collateralized with specific and
identifiable U.S. Government or Agency securities prescribed by HUD.” The “Contract of
Deposit of Monies” with Bank of America is dated April 15, 2002. This contract states that
“The Bank will maintain at all times with the Agent of the Bank as security for Depositor’s
deposits: (a) eligible securities of the classes described in Government Code Section 53651
having market value of least 10% in excess of the total amount of deposits secured by those
securities, (b) eligible securities of the class described in subdivision (m) of Government
Code Section 53651 having a market value at least 50% in excess of the total amount of
deposits secured by those securities, and (c) eligible securities of the class described in
subdivision (p) of Government Code Section 53651 having a market value at least 5% in
excess of the total amount of deposits secured by those securities.”
The Authority’s exposure to custodial credit risk is as follows:
Demand deposits with banks, fully insured by FDIC $ 500,000
Demand deposits with banks covered by depository agreements 3,286,395
Cash held by investment companies 11,290
Deposits held by CHFA 472,818
Total demand deposits $ 4,270,503
The Authority is a voluntary participant in the Local Agency Investment Fund (LAIF) that is
regulated by the California Government Code under the oversight of the Treasurer of the State
of California. The LAIF is a special fund of the California State Treasury through which local
governments may pool investments. Each government agency may invest up to $30,000,000 in
each account in the fund. Investments in LAIF are highly liquid, as deposits can be converted
to cash within twenty-four hours without loss of interest or principal. The full faith and credit
of the State of California secure investments in LAIF.
At March 31, 2012, an account was maintained in the name of the Housing Authority of the
County of Contra Costa for $4,402,469. The total cost value of investment in LAIF was
$4,402,469. The total fair value of investments in LAIF was $4,407,801. The fair value total
includes an unrealized gain on investments of $5,332. The unrealized gain was based on a fair
value adjustment factor of 1.001211113 that was calculated by the State of California
Treasurer’s Office. The unrealized gain was not recorded by the Authorities and is considered
immaterial.
LAIF is a part of the State of California Pooled Money Investment Account (PMIA). At March
31, 2012, the fair value of the State of California Pooled Money Investment Account (PMIA),
including accrued interest, was $64,483,713,831. The PMIA portfolio had securities in the form
of structured notes totaling $700,000,000 and asset-backed securities totaling $898,652,000.
The PMIA has policies, goals and objectives for the portfolio to make certain that the goals of
Note 2 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
32
safety, liquidity, and yield are not jeopardized. These policies are formulated by investment
staff and reviewed by both the PMIA and LAIF Advisory Boards on an annual basis. LAIF’s
and the Authority’s exposure to credit, market, or legal risk is not available.
During 2002, California Government code was added to the LAIF’s enabling legislation stating
that “the right of a city, county...special district...to withdraw its deposited money from the LAIF
upon demand may not be altered, impaired, or denied in any way by any state official or state
agency based upon the State’s failure to adopt a State Budget by July 1 of each new fiscal year.”
In addition, it has been determined that the State of California cannot declare bankruptcy under
Federal regulations. This allows other government code stating that “money placed with the
State Treasurer for deposit in the LAIF shall not be subject to ...transfer or loan...or impound or
seizure by any state official or state agency” to stand.
Investment Disclosure - March 31, 2012
Investment Type Issuer Book Value Market Value Maturity Rate
Government Security LAIF $ 4,402,469 $ 4,407,801 N/A
Interest on LAIF 4,002 4,002 N/A
Certif. Of Deposit BMW Bank of No. America 100,000 101,854 10/29/15 300
Certif. Of Deposit G E Capital Retail Bank 100,000 102,243 6/17/16 300
Certif. Of Deposit CIT Bank Salt Lake 245,000 250,532 6/30/16 295
Certif. Of Deposit Citizen State Bank 100,000 102,768 6/30/16 262
Certif. Of Deposit Bank of Baroda 200,000 205,322 8/02/16 N/R
Certif. Of Deposit GE Capital Financial Inc 247,000 250,643 10/07/16 300
Certif. Of Deposit GE Capital Retail Bank 145,000 146,576 11/16/16 300
Certif. Of Deposit American Express Centurion 247,000 251,125 12/08/16 300
Certif. Of Deposit Barclays Bank 225,000 226,530 12/28/16 210
Certif. Of Deposit First Financial Bank 100,000 100,634 1/20/17 278
Certif. Of Deposit Mercantile Bank 210,000 211,325 1/20/17 149
Certif. Of Deposit Ally Bank 150,000 150,495 2/08/16 300
Certif. Of Deposit Mercantile Bank 35,000 35,087 2/10/17 149
Certif. Of Deposit Boston Private Bank 225,000 225,482 2/17/17 200
Certif. Of Deposit Discover Bank 248,000 248,461 2/22/17 300
Certif. Of Deposit State Bank of India NY 205,000 203,620 2/23/17 150
Certif. Of Deposit Goldman Sachs Bank 105,000 104,949 2/22/17 253
Certif. Of Deposit First Republic Bank 100,000 104,792 5/06/15 178
Certif. Of Deposit Queensborough Nat’l Bank 99,000 102,874 7/30/15 140
Certif. Of Deposit Cole Taylor Bank 99,000 100,794 12/30/15 293
Certif. Of Deposit BMW Bank of No. America 99,000 100,765 1/28/16 300
Certif. Of Deposit Goldman Sachs Bank 99,000 98,308 3/28/17 253
Total Investments $ 7,789,471 $ 7,836,982
Investments reported below market value (5,332)
Total Investments reported $ 7,831,650
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
33
Note 3 - RESTRICTED CASH
Restricted cash consists of funds that are held in escrow, Federal funds held for future HAP
expenditures, replacement and operating reserves required by the lender, and funds being held
by the Authority on behalf of its clients. The balances are as follows:
Tenant security deposits - Public Housing $ 311,424
Family Self Sufficiency Program participant’s escrow funds 225,574
HUD funds restricted in use for HAP payments (See also note 11) 3,879,318
Blended component unit - Casa Del Rio:
Funds held by CHFA:
Replacement reserve 226,366
Operating reserve 226,166
Hazard Insurance impound 11,278
Earthquake Insurance impound 9,008
Tenant security deposits 25,254
Total restricted cash $ 4,914,388
The funds held by the California Housing Finance Agency (CHFA) can only be used for major
repairs or insurance, upon receipt of prior written approval from CHFA. These amounts are also
reported as restricted net assets (see also Note 11).
The amounts held by the Authorities for program participants of the FSS program and for tenant
security deposits are reported as payable from restricted assets. The security deposit liability for
the Casa Del Rio, Blended Component Unit, of $35,811 is not fully funded.
Please see the prior note to determine interest rates and credit risks for the above restricted cash.
Note 4 - INTERFUND BALANCES
The Authority utilizes a few cash accounts to make payments to vendors and for payroll. Costs
are accrued to appropriate funds, which necessitates the use of interfund accounts. Costs are
reimbursed on a periodic basis. The interfund receivable/payable balance of $890,032 was
eliminated in the Authority-Wide Statement of Net Assets. Please refer to the Financial Data
Schedule included in the Supplemental Information section of this report to determine the
interfund receivable/payable balance detail by program.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
34
Note 5 - NOTES RECEIVABLE
A schedule of changes in notes receivable is as follows:
Balance Loans Loans Loans Balance Long-term Short-term
3/31/11 Defaulted Issued Repaid 3/31/12 Portion Portion
CDBG Loan Program $ 1,301,705 $ - $ 119,388 $ (10,226) $ 1,410,867 $ 1,410,867 $ -
Rental Rehab. Program 282,671 (15,000) 271 - 267,942 267,942 -
Employee computer loans 12,166 - 23,961 (17,124) 19,003 - 19,003
DeAnza Gardens LP 1,000,000 -- - 1,000,000 1,000,000 -
2,596,542 (15,000) 143,620 (27,350) 2,697,812 2,678,809 19,003
Interfund:
CDR from mgmt fund 185,000 --- 185,000 185,000 -
Totals $ 2,781,542 $(15,000)$ 143,620 $ (27,350) $ 2,882,812 $ 2,863,809 $ 19,003
Interest on these loans is a follows:
Balance Interest Interest Interest Balance Long-term Short-term
3/31/11 Defaulted Accrued Repaid 3/31/12 Portion Portion
CDBG Loan Program $ 285,023 $ - $ 43,683 $ (2,360) $ 326,346 $ 326,346 $ -
Rental Rehab. Program 77,985 (4,862) 8,498 - 81,621 81,621 -
DeAnza Gardens LP 300,107 - 30,000 - 330,107 330,107 -
Totals $ 663,115 $ (4,862)$ 82,181 $ (2,360) $ 738,074 $ 738,074 $-
The Authority has made deferred payment loans to individuals and organizations under the
County’s Community Development Block Grant (CDBG) and Rental Rehabilitation (RR)
Programs. These loans are secured by deeds of trust in the name of the County. These programs
are revolving loan programs administered by the Authority. Any repayments of outstanding
loans, or interest on the loans, must be used for new loans or program administration as
authorized by the County. These loans typically earn 3% interest per annum. These notes
receivable, along with all of the accrued interest, is offset by an equal amount shown in other
noncurrent liabilities (See note 10). Any interest amounts received on these deferred payment
loans are recorded as deferred revenue.
The Authority administers an employee loan program whereby employees can borrow funds for
the purpose of purchasing a computer to be used at home. These loans accrue no interest.
Payments are made through the payroll system.
Pursuant to a demand note dated June 30, 1994, the Authority may be liable to HACCC Casa Del
Rio, Inc for $185,000. Although the note is due upon demand, the maturity date is December 31,
2059. The note will be called prior to maturity only in the event that there are operating deficits
and there is insufficient cash available to cover expenses. This interfund note has been eliminated
in the Authority-Wide Statement of Net Assets.
The Authority has also issued a note to the DeAnza Gardens, L.P., which is a discretely presented
component unit of the Authority (see Note 1.B.). The note bears simple interest at the rate 3%
per annum, payments are due commencing on October 1, 2005, but are payable only to the extent
of the previous years’ excess/distributable cash, and is due June 2043.
Note 5 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
35
Not shown on the schedule above, the DeAnza Housing Corporation issued a note in the amount
of $1,000,000 bearing simple interest at 6.8%, to be paid in full June 2043. This second note is
an inter-fund transaction. DeAnza Gardens L.P. owes the DeAnza Housing Corporation. This
loan has been eliminated from the discretely presented component unit column of the Authority-
Wide Statement of Net Assets. Since this loan does not effect the Authority, it is not shown in
the table above.
Note 6 - CAPITAL ASSETS
Capital asset activity for the year ending March 31, 2012.
March 31, March 31,
2011 Additions Deletions Transfers 2012
Capital assets, not
being depreciated:
Land $ 1,825,993 $ - $ - $ - $ 1,825,993
Construction in progress 872,918 950,966 - (1,146,638) 677,246
Total 2,698,911 950,966 - (1,146,638) 2,503,239
Capital assets depreciated:
Buildings and improvements 92,575,493 - - 1,146,638 93,722,131
Equipment 1,976,282 222,803 - - 2,199,085
Total capital assets
being depreciated 94,551,775 222,803 - 1,146,638 95,921,216
Total capital assets 97,250,686 1,173,769 - - 98,424,455
Accumulated depreciation:
Buildings and improvements (76,290,188) (2,540,081) - - (78,830,269)
Equipment (1,701,814) (150,116)- - (1,851,930)
Total accumulated
depreciation (77,992,002) (2,690,197)- - (80,682,199)
Total capital assets depreciated, net 16,559,773 (2,467,394)- 1,146,638 15,239,017
Total capital assets, net $ 19,258,684 $ (1,516,428)$ - $- $ 17,742,256
Note 6 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
36
The changes by project are as follows:
March 31, March 31,
2011 Additions Deletions Transfers 2012
TOTAL CAPITAL ASSETS:
Public Housing $ 85,940,503 $ 1,082,061 $ - $ - $ 87,022,564
Housing Choice Voucher 3,979,922 53,765 - - 4,033,687
Section 8 Moderate Rehab 168,778 - - - 168,778
Shelter Plus Care 1,336 572 - - 1,908
CDBG Loan 2,122 959 - - 3,081
Management Fund 75,115 - - - 75,115
Central Office Cost Center 70,612 24,272 - - 94,884
Blended Component Units:
Casa Del Rio 7,012,298 12,140 - - 7,024,438
Total capital assets 97,250,686 1,173,769 - - 98,424,455
DEPRECIATION:
Public Housing (73,859,867) (2,265,382) - - (76,125,249)
Housing Choice Voucher (1,004,335) (176,260) - - (1,180,595)
Section 8 Moderate Rehab (168,778) - - - (168,778)
Shelter Plus Care (223) (540) - - (763)
CDBG Loan (354) (867) - - (1,221)
Management Fund (74,531) (233) - - (74,764)
Central Office Cost Center (11,769) (27,582) - - (39,351)
Blended Component Units:
Casa Del Rio (2,872,145) (219,333)- - (3,091,478)
Total depreciation (77,992,002) (2,690,197)- - (80,682,199)
Net $ 19,258,684 $ (1,516,428)$ - $- $ 17,742,256
Note 7 - LONG TERM DEBT
The following is a schedule of the changes in long-term debt for the current fiscal year:
Balance Loans Balance Short-term Long-term Interest
3/31/2011 Issued Payments 3/31/2012 Portion Portion Payable
Energy equipment lease $ 819,970 $ - $ (135,215) $ 684,755 $ 141,113 $ 543,642 $ -
Office building mortgage 2,661,404 - (55,232) 2,606,172 70,109 2,536,063 -
Blended component units:
Casa Del Rio:
CHFA 436,344 - (18,446) 417,898 19,553 398,345 -
RHCP 2,626,618 --2,626,618 - 2,626,618 1,429,652
6,544,336 - (208,893) 6,335,443 230,775 6,104,668 1,429,652
Interfund:
Mgmt Fund to CDR 185,000 -- 185,000 - 185,000 -
Totals $ 6,729,336 $-$ (208,893) $ 6,520,443 $230,775 $ 6,289,668 $1,429,652
Note 7 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
37
Following is a schedule of debt payment requirements to maturity for the mortgages noted above
that require payments:
Energy Lease Loan Office Building CHFA
Year ending Principal Interest Principal Interest Principal Interest Total
2013 $ 141,113 $ 26,922 $ 70,109 $ 162,547 $ 19,553 $ 32,278 $ 452,522
2014 147,400 20,635 83,255 149,401 21,549 30,282 452,522
2015 153,911 14,124 88,390 144,266 23,292 28,539 452,522
2016 160,709 7,326 93,842 138,814 25,175 26,656 452,522
2017 81,622 1,020 2,270,576 111,272 27,210 24,621 2,516,321
2018-2022 - - - - 172,830 86,325 259,155
2023-2026 ----128,289 14,620 142,909
$ 684,755 $ 70,027 $2,606,172 $ 706,300 $ 417,898 $ 243,321 $4,728,473
On April 8, 2003, the Authority entered into an energy services agreement with EUA Citizens
Conservation Services, Inc. (Citizens). Citizens prepared an energy audit which generated a report
and plan of action. Citizens proposed installing certain energy saving equipment in the housing units
of the Public Housing Program. The Authority agreed to pay for the purchase and installation of this
equipment in an amount not to exceed $1,570,465. Citizens guarantees the Authority a specific level
of cost savings due to the installation of the equipment for a period of twelve years. The costs
savings is guaranteed by Citizens to exceed the Authority’s debt service on the financing associated
with the purchase and installation of this equipment. At the end of the twelve year period the title
to the equipment will pass to the Authority. The $1,570,465 to fund this equipment lease and
installation activity was borrowed from WestAmerica Bank. The loan is due in monthly installments
of $14,003. The Authority began making these monthly payments during the fiscal year ended
March 31, 2005. The payments will continue through September 2016. Interest accrues on this loan
at a rate of 4.330% per annum. Interest in the amount of $32,819 was paid and expensed during the
year.
During December 2006, The Authority purchased an office building to house the staff of their
Housing Choice Voucher Program. To facilitate this purchase, the Authority borrowed $2,847,500
from WestAmerica Bank on December 15, 2006. As of April 1, 2011, this loan carried an interest
rate of 6.75% per annum. The interest rate changed to 6% as of January 1, 2012. The loan requires
monthly payments of $19,388 and a balloon payment of approximately $2,200,000 on January 1,
2017, when the note becomes due. Interest in the amount of $177,425 was paid and expensed during
the year.
The California Housing Finance Agency note, received through the State of California, is dated
November 14, 1994. The original amount borrowed was $600,000. The loan carries a simple
interest rate of 7.8% per annum. Principal and interest are payable in monthly installments of
Note 7 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
38
$4,319. The note is due in full December 2024. Interest in the amount of $33,385 was paid and
expensed during the fiscal year ended March 31, 2012.
The Rental Housing Construction Program note, received through the State of California, is dated
January 15, 1993. The original amount borrowed was $2,626,618. The loan accrues interest at
a rate of 3% per annum. Payments are required on this loan only to the extent that the Casa Del
Rio project has surplus cash. This note and interest on the note are due June 5, 2054. No
principal payments were made on this loan during the year ended March 31, 2012. Interest was
expensed in the amount of $78,787. The amount of deferred interest accrued as payable as of the
end of the fiscal year was $1,429,652. The entire amount is considered to be long-term and is
shown as other noncurrent liabilities.
Pursuant to a demand note dated June 30, 1994, the Authority may be liable to HACCC Casa Del
Rio, Inc for $185,000. Although the note is due upon demand, the maturity date is December 31,
2059. The note will be called prior to maturity only in the event that there are operating deficits
and there is insufficient cash available to cover expenses. This interfund note has been eliminated
in the Authority-Wide Statement of Net Assets.
Note 8 - PAYMENT IN LIEU OF TAXES
In connection with the Public Housing Program, the Authority is obligated to make annual
payments in lieu of property taxes based on the lesser of 25% of the assessable value of owned
housing, times the current tax rate; or 10% of the dwelling rents, net of utilities expense. At
March 31, 2012, $63,380 was expensed for payment in lieu of taxes. This amount represents nine
months of the 25% of the assessable value of owned housing, times the current tax rate. The
omission of one quarter of expenses does not materially impact the Authority’s financial position.
This amount is shown as Due to Other Agencies.
Note 9 - UNEARNED REVENUE
Unearned revenue consists of:
Prepaid rent - Public Housing $ 18,893
Casa Del Rio 3,300 $ 22,193
Unexpended grant funds - Capital Fund 117,161
Revolving loan funds held for future expenditures:
CDBG 25,517
Rental Rehabilitation 248,691 274,208
$ 413,562
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
39
Note 10 - OTHER NONCURRENT LIABILITIES
Other noncurrent liabilities consist of:
Loan liability:
CDBG:
Notes receivable (See also Note 5) $ 1,410,867
Interest on notes receivable (See also Note 5) 326,346 $ 1,737,213
Rental Rehabilitation:
Notes receivable (See also Note 5) 267,942
Interest on notes receivable (See also Note 5) 81,621 349,563
Housing Choice Voucher Program 205,818
Long term portion of the interest payable
on the RHCP loan - a liability of the blended
component unit, Casa Del Rio (See also Note 7) 1,429,652
Post retirement benefits payable (See also Note 13) 2,012,722
$ 5,734,968
Note 11 - NET ASSETS
A. Investment in Capital Assets, Net of Related Debt
Investment in capital assets, net of related debt consists of the following:
Capital assets, net of depreciation (see Note 6) $ 17,742,256
Long term debt (omitting interfund balances) (see Note 7) (6,335,443)
Accrued interest on long term debt (see Note 7 & 10) (1,429,652)
Investment in capital assets, net of related debt $ 9,977,161
B. Restricted Net Assets
Net assets are reported as restricted when constraints placed on the net asset use are either
externally imposed by creditors, grantors, contributors, or laws or regulations of other
governments; or imposed by law through constitutional provisions or enabling legislation. The
Authority has reported the following as restricted net assets:
Excess HAP funding - Housing Choice Voucher $ 3,879,318
Casa Del Rio Senior Housing
replacement and operating reserves 472,818
$ 4,352,136
Note 11 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
40
On January 11, 2006, HUD issued Notice PIH 2006-03 (the Notice). On January 30, 2008,
HUD issued Notice PIH 2008-9. Both notices address the proper manner in which HUD
receipts should be accounted for and reported to HUD REAC. Notice PIH 2006-3 instructed
PHAs to no longer account for the Housing Choice Voucher grant as a cost reimbursement
grant. All HUD funding received for this grant were to be retained by the Authority, with any
excess HAP funding restricted as to its use - “may only be used to assist additional families up
to the number of units under contract.” While Notice PIH 2008-9 clarified the fact that all
unused HAP funding should be reported as “restricted net assets.”
The revenue recognition directives contained in the Notices are a departure from the revenue
recognition policy of years prior to 2005. Prior to 2005, HUD grant revenue was recognized
only to the extent that HAP expenses were incurred. Since 2005, HUD grant revenue has been
recognized when received, regardless of whether or not HAP expenses had been incurred. The
Authority has accumulated the following excess HAP funds:
Housing Choice
Voucher Program
Balance as of March 31, 2011 $ 4,107,305
Use of excess HAP funding (299,248)
FSS forfeitures and other restricted revenue 9,395
Fraud recovery 29,307
Interest earned on excess funding 32,559
Balance as of March 31, 2012 $ 3,879,318
The excess HAP funds are fully funded, see also Note 3. The restrictions associated with Casa
Del Rio Senior Housing funds are required by the lender, held by CHFA and fully funded, see
also Note 3.
Note 12 - RETIREMENT PLAN
The Authority participates in a cost-sharing multiple-employer defined benefit retirement plan
that is administered by the Contra Costa County Employees' Retirement Association. All full-
time employees of the Authority participate in this plan. The plan provides death, disability and
service retirement benefits. Benefits are based on the employee's highest level of annual salary,
years of service and age at the time of retirement. The Authority's retirement plan had 150
participants at March 31, 2012. Employer contributions are vested (1) after 10 years of service
and employee attain age 50 or (2) 30 years of service regardless of age or (3) at mandatory age
regardless of the amount of service.
Note 12 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
41
Employees contribute to the retirement system through biweekly payroll deductions. The rate
of contribution for employees is determined by age at the time of entrance into the system.
Employee contributions and interest thereon may be withdrawn only at termination of
employment or at retirement.
Information on contributions for the last three years is as follows:
Fiscal Payroll As a As a
Year Subject to Employer Percentage Employee Percentage
Ended Contribution Contribution of Payroll Contribution of Payroll
3/31/2010 $ 5,345,205 $ 1,760,494 32.94% $ 371,528 7.24%
3/31/2011 $ 5,227,243 $ 1,806,368 34.56% $ 384,145 7.35%
3/31/2012 $ 5,057,120 $ 1,916,003 37.89% $ 370,477 7.33%
The ten-year trend analysis and other disclosures required by U.S. generally accepted accounting
principles are described in the financial statements of the Contra Costa County Employees’
Retirement Association (CCCERA). The CCCERA is a component unit of the County of Contra
Costa and is reported as a pension trust fund in their basic financial statements. Complete audited
financial statements may be obtained from the administrative offices of CCCERA 1355 Willow
Way, Suite 221, Concord, CA 94520.
Note 13 - POST EMPLOYMENT HEALTHCARE PLAN
Plan Description: Contra Costa County Housing Authority (CCCHA) provides a defined benefit
health care program to its retired employees and their dependents. Benefits include coverage in
health and dental plans administered by CCCHA. Benefit provisions are established and
amended through negotiations between CCCHA and the respective unions and employee groups.
CCCHA does not issue a publicly available financial report for the retiree health care program.
Eligibility: CCCHA retirees are eligible for membership in the plans upon retirement (drawing
a pension from Contra Costa County Employee Retirement Association (CCCERA) or CalPers).
No provision currently exists for members in deferred retirement status.
Retirees and beneficiaries receiving benefits 61
Active plan members 89
Total 150
Funding Policy: The contribution requirements of program members and CCCHA are
determined by negotiations between CCCHA and the respective unions and employee groups.
The required contribution is based on projected pay-as-you-go financing requirements. For fiscal
Note 13 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
42
year 2012 CCCHA contributed $252,016 to the plan to cover the annual pay-as-you-go cost. The
percentage of the employer’s cost-sharing towards retiree medical plan premiums is currently at
34% of active premiums for retirees under the age of 65, and 98% of active premiums for retirees
over the age of 65.
Annual Other Post Employment Benefit (OPEB) Cost and Net OPEB Obligation: The
CCCHA’s annual OPEB costs (expense) is calculated based on the annual required contribution
(ARC) of the employer, an amount actuarially determined in accordance with the parameters of
Governmental Accounting Standards Board (GASB) Statement 45. The ARC represents a level
of funding that, if paid on an ongoing basis, is projected to cover normal cost each year and
amortize any unfunded actuarial liabilities (or funding excess) over a period not to exceed thirty
years. Interest on net OPEB obligation is based on the actuarial interest rate of 4.5% and is
computed on the unfunded amount.
The most current actuarial report calculated these amounts for the fiscal year ended March 31,
2012. The following table shows the components of the CCCHA’s annual OPEB cost for the past
three years, the amount actually contributed to the plan, and changes in the CCCHA’s net OPEB
obligation.
3/31/2012 3/31/2011 3/31/2010
Normal costs $ 215,582 $ 204,343 $ 536,101
Amortization of UAAL 210,590 203,431 337,781
Interest on net OPEB obligation
at beginning of year 82,426 74,920 41,920
ARC adjustment for current fiscal year (75,557) (68,677) 36,771
Annual OPEB cost/Annual
Required Contribution 433,041 414,017 952,573
Contributions made (252,016) (247,213) (219,232)
Increase in net OPEB obligation 181,025 166,804 733,341
Net OPEB obligation - Beginning of year 1,831,697 1,664,893 931,552
Net OPEB obligation - End of year $ 2,012,722 $ 1,831,697 $ 1,664,893
Note 13 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
43
The CCCHA’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan,
and the net OPEB obligation for 2012.
Pay-as-you-go Percentage of
Fiscal Year Annual Employer Annual OPEB Net OPEB
Ended OPEB Cost Contributions Costs Contributed Obligation
3/31/2010 $ 952,017 $ 219,232 23.0% $ 1,664,893
3/31/2011 $ 414,017 $ 247,213 59.7% $ 1,831,697
3/31/2012 $ 433,041 $ 252,016 58.21% $ 2,012,722
Funding Status and Funding Progress: The most recent actuarial valuation dated July 1, 2010,
reflects a accrued liability for benefits of $5.1 million, therefore, underfunded actuarial liability
as a percentage of covered payroll is 101%.
Actuarial valuations of an ongoing plan involve estimates of the value of reported amounts and
assumptions about the probability of occurrence of events far into the future. Examples include
assumptions about future employment, mortality, and the healthcare cost trend. Amounts
determined regarding the funded status of the plan and the annual required contributions of the
employer are subject to continual revision as actual results are compared with past expectations
and new estimates are made about the future. The schedule of funding progress, presented as
required supplementary information on page 52, presents multi-year trend information about
whether the actuarial value of plan assets is increasing or decreasing over time relative to the
actuarial liabilities for benefits.
Actuarial Methods and Assumptions: Projections of benefits for financial reporting purposes
are based on the substantive plan (the plan as understood by the employer and the plan members)
and include the types of benefits provided at the time of each valuation and the historical pattern
of sharing of benefit costs between the employer and plan members to that point. The actuarial
methods and assumptions used include techniques that are designed to reduce the effects of short-
term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
The funding method used was the Entry Age Normal Cost method and assuming an open 30-year
amortization of the Unfunded Actuarial Liability using the level percent of payroll amortization
method. The valuation results are based on a 4.5% discount rate assuming that the CCCHA
continues pay-as-you-go funding of its post-employment benefit program.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
44
Note 14 - DEFERRED COMPENSATION PLAN
The Authority offers its employees a deferred compensation plan created in accordance with Internal
Revenue Code Section 457. The plan is administered by The Hartford Life Insurance Company.
The plan, available to all regular employees, permits them to defer a portion of their salary until
future years. The deferred compensation is not available to employees until termination, retirement,
death or unforeseeable emergency. All amounts of compensation deferred under the plan, all
property and rights purchased with those amounts, and all income attributable to those amounts,
property, or rights are held in trust for the exclusive benefits of participants and their beneficiaries.
A total of $2,034,055 is being held by The Hartford Life Insurance Company on behalf of the
Authority’s employees. These funds are not recorded as assets of the Authority since they are held
in trust for the exclusive benefit of participants and their beneficiaries and are not subject to claims
of the Authority’s general creditors.
Note 15 - RELATED PARTIES
Casa Del Rio Housing - Blended Component Unit
Organization:
Casa Del Rio Housing is made up of HACCC Casa Del Rio, Inc (A California Nonprofit Public
Benefit Corporation) and CDR Senior Housing Associates (A California Limited Partnership).
HACCC Casa Del Rio, Inc. is the general partner of CDR Senior Housing Associates. The
officers and Board members of HACCC Casa Del Rio, Inc. are employees of the Authority. The
partnership was formed in 1994 to develop and operate an 82-unit affordable housing rental
complex located in Antioch, California, which is currently known as Casa Del Rio Senior
Housing.
Pursuant to the Indemnification Agreement dated July 1, 1994, by and among the Authority,
HACCC Casa Del Rio, Inc., CDR Senior Housing Associates, and MHIFED I Limited Partnership,
the Authority could possibly be liable for unpaid taxes, interest and penalties, cost to contest,
operating deficiency and expenses of enforcement as identified in the Agreement.
Pursuant to the Operating Deficit Guaranty Agreement dated July 1, 1994, by the Authority to and
for the benefit of MHIFED I Limited Partnership, the Authority can possibly be liable for
operating deficit and expenses of enforcement as identified in the Agreement.
Pursuant to the Indemnity Agreement, dated July 1, 1994, by the Authority to and for the benefit
of CDR Senior Housing Associates and MHIFED I Limited Partnership, the Authority can
possibly be liable for any costs, expenses, and liabilities arising out of claims made by FPI (FPI
Note 15 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
45
Real Estate Group, FPI Mortgage Co. and FPI Management, Inc.) under the Development
Agreement.
Pursuant to the Demand Note dated June 30, 1994, from the Authority to HACCC Casa Del Rio,
Inc., the Authority can possibly be liable to HACCC Casa Del Rio, Inc. for $185,000. Although
the note is due upon demand the maturity date is December 31, 2059, the note will be called prior
to maturity only in the event that there are operating deficits and there is not sufficient cash
available to cover expenses. This note is recorded as both an interfund note receivable and note
payable (see notes 5 and 7). These interfund notes have been eliminated from the Authority-Wide
Statement of Net Assets.
Pursuant to the Assignment and Assumption Agreement, the Authority can possibly be liable for
any and all claims relating to the Assignment and Assumption Agreement arising prior to the date
of the Assignment and Assumption Agreement.
Pursuant to the Department of Housing and Community Development Rental Housing
Construction Program First Amendment to the Regulatory Agreement (the “Amended HCD
Agreement”) dated November 14, 1994, by and among the Department of Housing and
Community Development, CDR Senior Housing Associates, and the Authority, the Authority can
possible be liable for a sponsor’s operating guaranty to provide sufficient staff or equipment to the
general partner, as needed and remedies against sponsor for default under the Amended HCD
Agreement.
As of March 31, 2012, the Authority has made operating advances to CDR Senior Housing
Associates in the amount of $246,733. This amount is an increase of $24,200 from the prior year
balance of $222,533. No repayment on these amounts are expected within twelve months,
therefore this amount is reported as long-term. These interfund amounts have been eliminated
from the Authority-Wide Statement of Net Assets.
Since HACCC Casa Del Rio, Inc (CDR Inc) and CDR Senior Housing Associates (CDR
Associates) have the potential to impose a financial burden on the Authority, these entities have
been included in the Authority’s financial statements as a blended component unit. The fiscal year
end of these blended component units is December 31. Audits were conducted on these entities
as of December 31, 2011, by Linquist, Von Husen, & Joyce, LLP. The opinions were unqualified.
These audit reports may be obtained by contacting the Authority at the address on page 11. As
stated in Note 1 to the basic financial statements, the Authority is a related entity of the County
of Contra Costa. The County has requested that the balances for these blended component units
be rolled forward from December 31, 2011, and reported as part of the Authority’s financial
statements as of March 31, 2012. The balances as of March 31, 2012 are not materially different
from the December 31, 2011 balances.
Note 15 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
46
Interfund accounting issues:
During the fiscal year ended March 31, 2012, CDR Associates paid management fees to the
Authority in the amount of $52,452. Some of the Casa Del Rio Senior Housing tenants (4 as of
March 31, 2012) are also participants in the Authority’s Housing Choice Voucher Program. The
rent for these tenants is subsidized by HUD through the Authority. During the twelve months
ended March 31, 2012, the Authority’s Housing Choice Voucher Program paid $11,583 in HAP
payments to CDR Associates. These interfund revenue/expenses totaling $40,869 have been
eliminated from the Authority-Wide Statement of Activities.
Intrafund accounting issues:
The intrafund amounts which have been eliminated as of March 31, 2012, from the Casa Del Rio
Blended Component Unit Enterprise Fund for inclusion into the Authority-Wide and Fund
Financial Statements include:
C $50,079 receivable recognized by CDR Inc from CDR Associates
C $109,814 investment in partnership recorded as a liability of CDR Inc and deficit net assets
of CDR Associates.
C $15,000 managements fees reported as revenue to CDR Inc and expenses of CDR Associates.
C $13,912 interest revenue and donation to related party, both reported in CDR Inc.
DeAnza - Discretely Presented Component Units
Organization:
The discretely presented component units are DeAnza Housing Corporation (A California
Nonprofit Public Benefit Corporation) and DeAnza Gardens, L.P. (A California Limited
Partnership). The Authority is the General Partner and DeAnza Housing Corporation is the
managing general partner of DeAnza Gardens, L.P. The partnership was formed for the purpose
of acquisition, ownership, maintenance, and operation of 180 multi-family rental housing units and
the provision of low-income housing through the construction, renovation, rehabilitation,
operation, and leasing of an affordable housing development located in Contra Costa County,
which is currently known as DeAnza Gardens.
DeAnza Housing Corporation (DeAnza Corp) and DeAnza Gardens L.P. (DeAnza L.P.) have been
reported as discretely presented component units of the Authority. The fiscal year end of these
discretely presented component units is December 31. Audits were conducted on these entities
as of December 31, 2011, by Linquist, Von Husen, & Joyce, LLP. The opinions were unqualified.
These audit reports may be obtained by contacting the Authority at the address on page 11. As
stated in Note 1 to the basic financial statements, the Authority is a related entity of the County
Note 15 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
47
of Contra Costa. The County has requested that the balances for these discretely presented
component units be rolled forward from December 31, 2011, and reported as part of the
Authority’s financial statements as of March 31, 2012. The balances as of March 31, 2012 are not
materially different from the December 31, 2011 balances.
Inter-agency accounting issues:
During the fiscal year ended March 31, 2012, DeAnza Gardens L.P. paid management fees to the
Authority in the amount of $12,960. Nonoperating revenue of $12,960 is reported in the
Authority’s Statement of Revenues, Expenses, and Changes in Fund Net Assets for the year ended
March 31, 2012. Some of the DeAnza Gardens tenants (10 as of March 31, 2012) are also clients
of the Authority’s Housing Choice Voucher and Shelter Plus Care Programs. The rent for these
tenants is subsidized by HUD through the Authority. During the twelve months ended March 31,
2012, the Authority’s Housing Choice Voucher Program paid $98,092 in HAP payments, while
the Shelter Plus Care Program paid $8,172 in HAP payments to DeAnza Gardens L.P.
The amounts shown as due to related parties consist of the following:
Short-term Long-term
Interest on the note due to the Authority $ - $ 330,107
Land lease due to the Authority - 636,000
Borrowing for operations due to the Authority - 517,415
Amount due Boston Capital 8,632 -
$ 8,632 $ 1,483,522
The Authority’s Housing Choice Voucher Enterprise Fund loaned $1 million to DeAnza Gardens
L.P. The note bears simple interest at the rate 3% per annum, payments are due commencing on
October 1, 2008, but are payable only to the extent of the previous years’ excess/distributable cash,
and is due June 2043. Interest of $30,000 was expensed during the fiscal year ended March 31,
2012. No interest has been paid to the Authority. The Authority’s Housing Choice Voucher
Enterprise Fund reported $330,107 due from related parties and revenue of $30,000. See Note 5.
DeAnza Gardens was built on land owned by the Authority’s Public Housing Program Enterprise
Fund. Based on an agreement between DeAnza Gardens L.P. and the Authority, the land is leased
for $72,000 per year, payable from excess/distributable cash. Unpaid lease amounts are carried
forward without interest. The Authority’s Public Housing Program Enterprise Fund reported
$636,000 due from related party for this lease, with $72,000 reported in the current fiscal year as
fees charged to a related party (nonoperating revenue).
Note 15 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
48
Cash and investments:
Unrestricted Restricted
Demand deposits (FDIC insured up to $250,000) $ 35,280 $ 57,172
Cash held by investment companies - 10,884
Investments - 985,252
Held by mortgagor - 346,500
Cash on hand 500 -
$ 35,780 $ 1,399,808
The demand deposits are with WestAmerica bank. The total on deposit did not exceed the amount
covered by FDIC as of March 31, 2012. FDIC coverage is $250,000 for 2012. Cash and
investments of $996,136 are held by Cantella & Co., Inc. The investments consist of 5 marketable
certificates of deposit with face values ranging from $105,000 to $220,000.
Restricted cash consists of replacement and operating reserves required by the lender and reported
as restricted net assets totaling $1,345,826. Cash has also been restricted for security deposits in
the amount of $53,982. The security deposit liability of $159,522 is not fully funded.
Capital assets:
DeAnza Gardens was completed and placed into service during the fiscal year ended December
31, 2004. DeAnza Gardens L.P.’s property and equipment are summarized as follows:
March 31, 2012 March 31, 2011
Building and improvements $ 29,446,662 $ 29,446,662
Land improvements 1,150,712 1,150,712
Off-site improvements 208,448 208,448
On-site improvements 4,028,709 4,028,709
Furniture and fixtures 477,933 477,933
35,312,464 35,312,464
Less accumulated depreciation (7,894,023) (6,815,787)
$ 27,418,441 $ 28,496,677
Property and equipment are being depreciated on the straight-line method over the estimated
useful life of the assets. The useful lives of the assets are estimated to be forty years for buildings
and off-site improvements, fifteen years for on-site improvements and seven years for furniture
and fixtures.
Note 15 (continued)
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
49
Long-term debt:
Permanent financing was obtained for the costs of the DeAnza Gardens’ construction during 2005.
The note is held by California Community Reinvestment Corporation. The original amount of the
loan was $10,115,373. This loan requires monthly payments of $64,603, beginning November 1,
2005, earns interest at a rate of 6.6% per annum, and is due in full October 2023. Activity on the
loan is as follows:
Balance Balance S/T L/T Interest
3/31/2011 Payments 3/31/2012 Portion Portion Payable
$ 9,416,914 $ (158,452) $ 9,258,462 $ 166,471 $ 9,091,991 $ 54,260
Interest expense for the fiscal year ended March 31, 2012 $ 616,780
Net Assets:
Investment in capital assets, net of debt - The balance of $18,105,719 consists of capital assets,
net of depreciation of $27,418,441; less the debt on those assets, including interest owed on the
debt, of $9,312,722.
Restricted net assets - The balance of $1,345,826 consists of replacement and operating reserves
required by the lender. Replacement reserves in the amount of $346,500 are being held by the
lender. Operating reserves of $999,326 are being held by the Authority in various accounts and
marketable certificates of deposit. See also the cash and investment note on the prior page.
Unrestricted net assets - This component unit’s deficit in unrestricted net assets has increased by
$149,182 from $2,232,798 as of March 31, 2011, to a deficit of $2,381,980 as of March 31, 2012.
Intrafund accounting issues:
The intrafund amounts which have been eliminated when reporting these entities in the Authority-
Wide Statement of Net Assets and Statement of Activities are as follows:
C $1,000,000 long-term note held by DeAnza Corp from DeAnza L.P.
C $578,280 of interest on the long-term note held by DeAnza Corp from DeAnza L.P.
C $121,442 receivable recognized by DeAnza Corp from DeAnza L.P.
C $4,000 receivable recognized by DeAnza L.P. from DeAnza Corp
C $456 deficit investment in partnership reported by DeAnza Corp is offset by net assets in
DeAnza L.P.
C $47,390 managements fees reported as revenue to DeAnza Corp and expenses of DeAnza L.P.
C $68,000 interest revenue on the long-term debt is recognized by DeAnza Corp and expensed
by DeAnza L.P.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
50
Note 16 - CONTINGENT LIABILITIES
A. Grants
The Authority has received funds from various federal, state and local grant programs. It is
possible that at some future date it may be determined that the Authority was not in
compliance with applicable grant requirements. The amount, if any, of expenditures which
may be disallowed by the granting agencies cannot be determined at this time although the
Authority does not expect such disallowed amounts, if any, to materially affect the financial
statements.
B. Troubled Agency Status
The Authority is currently classified by HUD as a troubled agency with regards to its Housing
Choice Voucher and Public Housing programs. This classification requires the Authority to
perform monthly reporting to HUD regarding aspects of program administration. This
designation was a result of a low Section 8 Management Assessment Program (SEMAP) and
Public Housing Assessment System (PHAS) scores. The Authority has been advised by HUD
that the next confirmatory review for the Housing Choice Voucher Program will not occur
until June -September 2013. The Public Housing scoring has been upgraded to sub-standard
based on the current data submitted to HUD.
C. Line of Credit
On February 2, 2012, the Authority renewed an agreement with WestAmerica Bank for a $1
million line of credit. The interest rate is variable, but will not exceed the amount allowed
by law. The initial rate for this line of credit was 4.25%. It is the Authority’s intention to use
this line of credit to cover any shortages in cash flow, if any, that may arise over the term of
the loan.
D. Litigation
The Authority is involved in various matters of litigation. It is the Authority’s opinion that
these matters of litigation will not have a material effect, if any, on the financial position of
the Authority.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE BASIC FINANCIAL STATEMENTS
MARCH 31, 2012
(Continued)
51
Note 17 - RISK MANAGEMENT
Workers Compensation Insurance: The Authority participates in a joint venture under a joint
powers agreement (JPA) with the California Housing Workers’ Compensation Authority
(CHWCA). CHWCA was formed to provide workers’ compensation insurance coverage for
member housing authorities. At December 31, 2011, there were thirty-three members. The
relationship between the Authority and CHWCA is such that CHWCA is not a component unit of
the Authority for financial reporting purposes.
Condensed CHWCA audited financial information for the year ended December 31, 2010 and
2011 are as follows:
December 31, 2011 December 31, 2010
Total assets $ 22,820,914 $ 24,335,634
Total liabilities (13,764,696) (11,246,706)
Net assets $ 9,056,218 $ 13,088,928
Total revenues $ 4,859,639 $ 5,080,007
Total expenses (8,892,349) (5,545,185)
Net change in net assets $ (4,032,710) $ (465,178)
CHWCA had no long-term debt outstanding at December 31, 2011. The Authority’s share of year
end assets, liabilities, or retained earnings has not been calculated. The Authority’s annual
premium is based on covered payroll. Premiums paid for the calendar year ended December 31,
2011 were $217,644. CHWCA issues a separate comprehensive annual financial report. Copies
of this report may be obtained by contacting Bickmore Risk Services, 6371 Auburn Boulevard,
Suite B, Citrus Heights, California, 95621.
Property and Liability Insurance: The Authority carries insurance for its various operations with
the Housing Insurance Services, the Housing Authority Risk Retention Group (HARRG), and the
Employment Risk Management Authority. The property insurance limits vary by property
covered, with a deductible of $25,000 per occurrence. The commercial liability limit of coverage
is $5,000,000 aggregate for the policy year. The deductible is $25,000 per occurrence. The
liability insurance covers bodily injury and property damage liability ($5 million limit), mold
liability ($250,000 limit), and employee benefits administration liability ($1 million limit, with a
deductible of $1,000 per employee). The automobile insurance limits are $5 million for liability,
$1 million for nonowned-hired autos, and $1 million for uninsured motorists. Premiums paid for
this coverage were approximately $250,000 for the policy year beginning June 1, 2011.
52
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
REQUIRED SUPPLEMENTARY INFORMATION
AS OF MARCH 31, 2012
Schedule of Funding Progress for OPEB
Unfunded UAAL as a
Actuarial Actuarial Actuarial Actuarial Percentage of
Valuation Value of Accrued Accrued Funded Covered Covered
Date Assets Liability Liability Status Payroll Payroll
3/31/2008 $ - $ 16,457,000 $ 16,457,000 0% $ 5,279,413 311.72%
3/31/2009 $ - $ 8,236,801 $ 8,236,801 0% $ 5,345,205 154.10%
3/31/2010 $ - $ 8,236,801 $ 8,236,801 0% $ 5,133,982 160.44%
3/31/2011 $ - $ 4,931,685 $ 4,931,685 0% $ 5,832,771 84.55%
3/31/2012 $ - $ 5,105,240 $ 5,105,240 0% $ 5,057,120 100.95%
53
SUPPLEMENTAL INFORMATION
54
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2012
Federal Grantor CFDA Number Expenditures
Department of Housing and
Urban Development (HUD):
Direct Programs:
Shelter Plus Care 14.238 $ 3,365,613 *
Public and Indian Housing 14.850 5,502,785 *
Section 8 Rental Voucher Program 14.855 27,222
Lower Income Housing Assistance Program
Section 8 Moderate Rehabilitation 14.856 233,277
Housing Choice Voucher Program 14.871 81,659,041 *
Public Housing - Capital Fund Program 14.872 2,428,711
Subtotal federal expenditures, Dept of HUD 93,216,649
Department of Labor:
Passed through the County of Contra Costa:
Workforce Investment System Youth Activities:
Provision of Youth Case Management Services 17.259 20,648
County of Contra Costa contract 18-246 17.260 24,770
Subtotal federal expenditures, Dept of Labor 45,418
Total expenditures of federal awards $ 93,262,067
* Major program.
The accompanying Independent Auditors' Report and notes are an integral part of this statement.
55
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED MARCH 31, 2012
1. The schedule of expenditures of federal awards includes the federal grant activity of the Housing
Authority of the County of Contra Costa, California, and is presented on the accrual basis of
accounting. The information in this schedule is presented in accordance with the requirements of
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organization. Therefore,
some amounts presented in this schedule may differ from amounts presented in, or used in the
preparation of, the basic financial statements.
2. Expenditures are reported as follows:
Shelter Plus Care Program - expenditures reported agree with the HUD grant earned for the year.
Public and Indian Housing Program - expenditures reported consist only of the operating subsidy
amount received from HUD for the fiscal year ended March 31, 2012.
Housing Choice Voucher Program - expenditures reported consist of operating expenses, including
capital transactions and omitting depreciation, to the extent that federal grants were received towards
these expenditures and/or that prior year funding was available for expenditure. These amounts
differed from the actual annual contributions received from HUD. The expenditures were determined
as follows:
Federal Federal Awards
Funding Program Expended
Awarded Expenditures (Lesser of 2 columns)
Housing Choice Voucher Program:
Housing Assistance Payments $ 75,639,388 $ 75,938,636 $ 75,938,636
Administrative costs/FSS/Homeownership 6,384,614 5,787,669
Depreciation (176,260)
Capital additions 53,765
Debt retired 55,231
Net administrative amounts 6,384,614 5,720,405 5,720,405
$ 82,024,002 $ 81,659,041 $ 81,659,041
Moderate Rehabilitation Program - expenditures reported consist of operating expenses to the extent
that federal grants were received towards these expenditures and/or that prior year funding is available
for expenditure. These amounts differed from the actual annual contributions received from HUD.
Section 8 Rental Voucher - expenditures reported agree with the grants funds received from HUD
to fund HAP expenditures for the year. The Authority receives no administrative funding for this
grant.
Public Housing Capital Fund Program - expenditures reported agree with the revenue and actual
expenditures (expenses, plus capital expenditures, less depreciation expense) for the current fiscal year.
Provision of Youth Case Management Services, and Subsidized Employment and Training
Program - expenditures agree with actual operating expenditures and income earned for these
expenditures. These programs are federally funded through grants with the County. These grants are
reimbursement based; therefore, revenue should agree with expenses.
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
BALANCE SHEET
MARCH 31, 2012
Public
Housing
Housing
Choice
Vouchers
De Anza
(DPCU)State/Local Shelter Plus
Care
Community
Development
Block Grants
CFDA #14.850/14.872 14.871 14.238 14.218
$ 720,679 $ 2,248,462 $ 35,780 $ 154,887 $ 69,308 $ 59,072
$ 360,574 $ 472,818
$ 311,425 $ 53,981 $ 25,254
$ 1,032,104 $ 2,248,462 $ 450,335 $ 652,959 $ 69,308 $ 59,072
$ 418,358
$ 4,266
$ 34,107 $ 74,946 $ 5,935
$ 179,937 $ 116,769 $ 55,999
$ (77,097) $ (90,299) $ (38,850)
$ - $ - $ -
$ 19,003
$ 2,246 $ 7,620 $ 2,667 $ 1,877
$ 557,551 $ 7,620 $ 29,137 $ 117,241 $ - $ 5,935
$ 1,594,284 $ 527,632 $ 1,502,988
$ 4,104,892 $ 985,252
$ 69,313 $ 880 $ 28,998 $ 34,776 $ 820 $ 1,376
$ 4,374 $ 26,528
$ 3,257,626 $ 6,889,486 $ 1,493,722 $ 2,334,492 $ 70,128 $ 66,383
$ 1,026,405 $ 330,791 $ 1,150,712 $ 468,797
$ 84,073,934 $ 3,168,053 $ 29,655,110 $ 6,480,143
$ 1,244,979 $ 534,842 $ 477,933 $ 150,611 $ 1,908 $ 3,081
$ (76,125,248) $ (1,180,594) $ (7,894,023) $ (3,166,242) $ (763) $ (1,221)
$ 677,246
$ 4,028,709
$ 10,897,316 $ 2,853,092 $ 27,418,441 $ 3,933,309 $ 1,145 $ 1,860
$ 1,000,000 $ 185,000 $ 1,410,867
$ 636,000 $ 330,107 $ 172,165 $ 803,893 $ 326,346
$ 11,533,316 $ 4,183,199 $ 27,590,606 $ 4,922,202 $ 1,145 $ 1,739,073
$ 14,790,942 $ 11,072,685 $ 29,084,328 $ 7,256,694 $ 71,273 $ 1,805,456 190 Total Assets
180 Total Non-Current Assets
174 Other Assets
171 Notes, Loans and Mortgages Receivable - Non-Current
160 Total Capital Assets, Net of Accumulated Depreciation
168 Infrastructure
167 Construction in Progress
166 Accumulated Depreciation
164 Furniture, Equipment & Machinery - Administration
162 Buildings
161 Land
150 Total Current Assets
144 Inter Program Due From
142 Prepaid Expenses and Other Assets
135 Investments - Restricted for Payment of Current Liability
132 Investments - Restricted
131 Investments - Unrestricted
120 Total Receivables, Net of Allow for Doubtful Accounts
129 Accrued Interest Receivable
127 Notes, Loans, & Mortgages Receivable - Current
126.2 Allowance for Doubtful Accounts - Other
126.1 Allowance for Doubtful Accounts -Tenants
126 Accounts Receivable - Tenants
125 Accounts Receivable - Miscellaneous
124 Accounts Receivable - Other Government
122 Accounts Receivable - HUD Other Projects
113 Cash - Other Restricted
111 Cash - Unrestricted
100 Total Cash
114 Cash - Tenant Security Deposits
56
Section 8
Rental Voucher
Program
WIA Youth
Activities
WIA Dislocated
Workers
Rental Rehab
Loan
Section 8
Moderate
Rehab
Centra Office
Cost Center Subtotal Eliminations Total
14.855 17.259 17.260 14.856
$ 145,898 $ 56,040 $ 9,463 $ 3,499,589 $ 3,499,589
$ 833,392 $ 833,392
$ 390,660 $ 390,660
$ - $ - $ - $ 145,898 $ 56,040 $ 9,463 $ 4,723,641 $ - $ 4,723,641
$ 17,287 $ 435,645 $ 435,645
$ 4,266 $ 4,266
$ 1,500 $ 116,488 $ (74,946) $ 41,542
$ 352,705 $ 352,705
$ (206,246) $ (206,246)
$ - $ - $ - $ -
$ 19,003 $ 19,003
$ 781 $ 15,191 $ 15,191
$ - $ - $ - $ 2,281 $ 17,287 $ - $ 737,052 $ (74,946) $ 662,106
$ 101,854 $ 3,726,758 $ 3,726,758
$ 5,090,144 $ 5,090,144
$ - $ -
$ 72,141 $ 208,304 $ 208,304
$ 784,184 $ 815,086 $ (815,086) $ -
$ - $ - $ - $ 250,033 $ 73,327 $ 865,788 $ 15,300,985 $ (890,032) $ 14,410,953
$ 2,976,705 $ 2,976,705
$ 123,377,240 $ 123,377,240
$ 168,779 $ 94,884 $ 2,677,017 $ 2,677,017
$ (168,779) $ (39,351) $ (88,576,221) $ (88,576,221)
$ 677,246 $ 677,246
$ 4,028,709 $ 4,028,709
$ - $ - $ - $ - $ - $ 55,533 $ 45,160,696 $ - $ 45,160,696
$ 267,942 $ 2,863,809 $ (1,185,000) $ 1,678,809
$ 81,621 $ 2,350,132 $ (1,730,255) $ 619,877
$ - $ - $ - $ 349,563 $ - $ 55,533 $ 50,374,637 $ (2,915,255) $ 47,459,382
$ - $ - $ - $ 599,596 $ 73,327 $ 921,321 $ 65,675,622 $ (3,805,287) $ 61,870,335
The accompanying Independent Auditors' Report and Notes are an integral part of this statement.
57
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
BALANCE SHEET
MARCH 31, 2012
(Continued)
Public
Housing
Housing
Choice
Vouchers
De Anza
(DPCU)State/Local Shelter Plus
Care
Community
Development
Block Grants
CFDA #14.850/14.872 14.871 14.238 14.218
$ 185,560 $ 149,826 $ 36,243 $ 22,246 $ 4,349 $ 1,673
$ 128,875 $ 126,235 $ 35,811 $ 8,413 $ 5,800
$ 106,012 $ 110,962 $ 2,002 $ 3,742 $ 9,795
$ 54,260
$ 30
$ 63,379 $ 83,327
$ 311,425 $ 159,522 $ 35,811
$ 136,055 $ 14,124 $ 78,245 $ 25,517
$ 141,113 $ 70,109 $ 166,471 $ 19,553
$ 140,013 $ 8,631
$ 696,272 $ 104,001 $ 4,266 $ 6,449 $ 3,573
$ 1,908,704 $ 561,133 $ 439,251 $ 281,261 $ 22,983 $ 46,358
$ 543,642 $ 2,536,063 $ 9,091,991 $ 3,024,963
$ 1,000,000 $ 185,000
$ 431,392 $ 1,483,522 $ 1,676,385
$ 26,283 $ 21,224 $ 232 $ 123 $ 2,314
$ 1,737,213
$ 977,358 $ 738,926 $ 35,326 $ 28,070 $ 17,711
$ 1,547,283 $ 3,727,605 $ 11,575,513 $ 4,921,906 $ 28,193 $ 1,757,238
$ 3,455,987 $ 4,288,738 $ 12,014,764 $ 5,203,167 $ 51,176 $ 1,803,596
$ 10,212,561 $ 246,920 $ 18,105,719 $ (540,858) $ 1,145 $ 1,860
$ 3,879,318 $ 1,345,826 $ 472,818
$ 1,122,394 $ 2,657,709 $ (2,381,981) $ 2,121,567 $ 18,952
$ 11,334,955 $ 6,783,947 $ 17,069,564 $ 2,053,527 $ 20,097 $ 1,860
$ 14,790,942 $ 11,072,685 $ 29,084,328 $ 7,256,694 $ 71,273 $ 1,805,456 600 Total Liabilities and Equity/Net Assets
513 Total Equity/Net Assets
512.1 Unrestricted Net Assets
511.1 Restricted Net Assets
508.1 Invested In Capital Assets, Net of Related Debt
300 Total Liabilities
350 Total Non-Current Liabilities
357 Accrued Pension and OPEB Liabilities
355 Loan Liability - Non Current
354 Accrued Compensated Absences - Non Current
353 Non-current Liabilities - Other
352 Long-term Debt, Net of Current - Operating Borrowings
351 Long-term Debt, Net of Current - Capital Projects
310 Total Current Liabilities
347 Inter Program - Due To
346 Accrued Liabilities - Other
343 Current Portion of Long-term Debt - Capital Projects
342 Deferred Revenues
341 Tenant Security Deposits
333 Accounts Payable - Other Government
331 Accounts Payable - HUD PHA Programs
325 Accrued Interest Payable
322 Accrued Compensated Absences - Current Portion
321 Accrued Wage/Payroll Taxes Payable
312 Accounts Payable <= 90 Days
58
Section 8
Rental Voucher
Program
WIA Youth
Activities
WIA Dislocated
Workers
Rental Rehab
Loan
Section 8
Moderate
Rehab
Centra Office
Cost Center Subtotal Eliminations Total
14.855 17.259 17.260 14.856
$ 34 $ 48,119 $ 448,050 $ 448,050
$ 783 $ 101,958 $ 407,875 $ 407,875
$ 86,433 $ 318,946 $ 318,946
$ 54,260 $ 54,260
$ 30 $ 30
$ 146,706 $ 146,706
$ 506,758 $ 506,758
$ 248,690 $ 502,631 $ (74,945) $ 427,686
$ 397,246 $ 397,246
$ 148,644 $ 148,644
$ 525 $ 815,086 $ (815,086) $ -
$ - $ - $ - $ 250,032 $ - $ 236,510 $ 3,746,232 $ (890,031) $ 2,856,201
$ 15,196,659 $ 15,196,659
$ 1,185,000 $ (1,185,000) $ -
$ 3,591,299 $ (1,730,256) $ 1,861,043
$ 10,018 $ 60,194 $ 60,194
$ 349,564 $ 2,086,777 $ 2,086,777
$ 215,330 $ 2,012,721 $ 2,012,721
$ - $ - $ - $ 349,564 $ - $ 225,348 $ 24,132,650 $ (2,915,256) $ 21,217,394
$ - $ - $ - $ 599,596 $ - $ 461,858 $ 27,878,882 $ (3,805,287) $ 24,073,595
$ - $ 55,533 $ 28,082,880 $ 28,082,880
$ - $ 5,697,962 $ 5,697,962
$ 73,327 $ 403,930 $ 4,015,898 $ 4,015,898
$ - $ - $ - $ - $ 73,327 $ 459,463 $ 37,796,740 $ - $ 37,796,740
$ - $ - $ - $ 599,596 $ 73,327 $ 921,321 $ 65,675,622 $ (3,805,287) $ 61,870,335
The accompanying Independent Auditors' Report and Notes are an integral part of this statement.
59
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDED MARCH 31, 2012
Public Housing Housing Choice
Vouchers
De Anza
(DPCU)State/Local Shelter Plus
Care
Community
Development
Block Grants
CFDA #14.850/14.872 14.871 14.238 14.218
$ 2,974,330 $ 1,843,228 $ 494,250
$ 68,969 $ 108,326 $ 4,526
$ 3,043,299 $ - $ 1,951,554 $ 498,776 $ - $ -
$ 6,865,678 $ 82,024,002 $ 3,365,613
$ 1,065,820
$ - $ - $ - $ - $ - $ -
$ 4,266
$ 12,386 $ 73,150 $ 370 $ 40,131 $ 91
$ 43,749
$ 58,614
$ 359,989 $ 659,818 $ 22,885 $ 86,078 $ 19,123
$ 32,559 $ 30,946 $ 1,815
$ 11,347,172 $ 82,848,143 $ 2,005,755 $ 631,066 $ 3,365,704 $ 62,872
$ 826,725 $ 1,664,583 $ 127,019 $ 56,191 $ 163,383 $ 61,439
$ 17,759 $ 12,541 $ 39,683 $ 22,074 $ 2,000 $ 458
$ 932,608 $ 910,380
$ 90,152 $ 568,988
$ 524,325 $ 1,042,281 $ 26,614 $ 77,581 $ 104,468 $ 53,569
$ 191,022 $ 635,621 $ 138,965 $ 72,121 $ 3,433 $ 5,269
$ 111,437 $ 108,336 $ 2,722 $ 7,516 $ 273 $ 458
$ 4,536 $ 3,135 $ 136 $ 26 $ 47
$ 37,895 $ 37,042 $ 34,326 $ 27,351 $ 271 $ 978
$ 2,736,459 $ 4,982,907 $ 369,329 $ 262,970 $ 273,854 $ 122,218
$ 17,184
$ 104,259 $ 84,853
$ 495
$ 11,704 $ 38,325
$ 66,864 $ 5,321 $ 5,142 $ 58,602
$ 183,322 $ 123,178 $ 5,321 $ 5,142 $ 58,602 $ -
$ 435,180 $ 4,536 $ 106,980 $ 11,711
$ 361,084 $ 27,252 $ 22,105 $ 25,829 $ 248 $ 416
$ 131,992 $ 3,527 $ 5,426 $ 2,498 $ 36 $ 60
$ 433,769 $ 1,146 $ 30,362
$ 90,970
$ 1,362,025 $ 36,461 $ 225,481 $ 70,400 $ 284 $ 476
$ 1,224,432 $ 2,775 $ 95,458 $ 44,736 $ 11 $ 19
$ 526,753 $ 13,138 $ 131,716 $ 22,445 $ 245 $ 411
$ 1,072,182 $ 25,040 $ 122,240 $ 67,907 $ 291 $ 489
$ 807,940 $ 166 $ 12,853 $ (337)
$ 3,631,307 $ 41,119 $ 362,267 $ 134,751 $ 547 $ 919 94000 Total Maintenance
94500 Employee Benefit Contributions - Ordinary Maintenance
94300 Ordinary Maintenance and Operations Contracts
94200 Ordinary Maintenance and Operations - Materials
94100 Ordinary Maintenance and Operations - Labor
93000 Total Utilities
93800 Other Utilities Expense
93600 Sewer
93300 Gas
93200 Electricity
93100 Water
92500 Total Tenant Services
92400 Tenant Services - Other
92300 Employee Benefit Contributions - Tenant Services
92200 Relocation Costs
92100 Tenant Services - Salaries
92000 Asset Management Fee
91000 Total Operating - Administrative
91900 Other
91800 Travel
91700 Legal Expense
91600 Office Expenses
91500 Employee Benefit contributions - Administrative
91310 Book-keeping Fee
91300 Management Fee
91200 Auditing Fees
91100 Administrative Salaries
70000 Total Revenue
72000 Investment Income - Restricted
71500 Other Revenue
71400 Fraud Recovery
71200 Mortgage Interest Income
71100 Investment Income - Unrestricted
70800 Other Government Grants
70700 Total Fee Revenue
70730 Book Keeping Fee
70720 Asset Management Fee
70710 Management Fee
70610 Capital Grants
70600 HUD PHA Operating Grants
70500 Total Tenant Revenue
70400 Tenant Revenue - Other
70300 Net Tenant Rental Revenue
60
Section 8 Rental
Voucher
Program
WIA Youth
Activities
WIA Dislocated
Workers
Rental Rehab
Loan
Section 8
Moderate Rehab
Centra Office
Cost Center Subtotal Eliminations Total
14.855 17.259 17.260 14.856
$ 5,311,808 $ (117,847) $ 5,193,961
$ 181,821 $ 181,821
$ - $ - $ - $ - $ - $ - $ 5,493,629 $ (117,847) $ 5,375,782
$ 27,222 $ 173,240 $ 92,455,755 $ 92,455,755
$ 1,065,820 $ 1,065,820
$ 1,842,988 $ 1,842,988 $ (1,842,988) $ -
$ 17,184 $ 17,184 $ (17,184) $ -
$ 659,138 $ 659,138 $ (659,138) $ -
$ - $ - $ - $ - $ - $ 2,519,310 $ 2,519,310 $ (2,519,310) $ -
$ 20,648 $ 24,770 $ 49,684 $ 49,684
$ 6,904 $ 66 $ 133,098 $ (30,000) $ 103,098
$ 8,498 $ 52,247 $ 52,247
$ 58,614 $ 58,614
$ 84,936 $ 7,069 $ 1,239,898 $ (137,413) $ 1,102,485
$ 65,320 $ 65,320
$ 27,222 $ 20,648 $ 24,770 $ 100,338 $ 173,306 $ 2,526,379 $ 103,133,375 $ (2,804,570) $ 100,328,805
$ 7,432 $ 23,765 $ 4,995 $ 62,408 $ 1,118,744 $ 4,116,684 $ 4,116,684
$ 217 $ 24 $ 1,000 $ 4,000 $ 99,756 $ 99,756
$ 1,842,988 $ (1,842,988) $ -
$ 659,140 $ (659,140) $ -
$ 389 $ 31,986 $ 684,564 $ 2,545,777 $ 2,545,777
$ 273 $ 92 $ 287,852 $ 1,334,648 $ (65,411) $ 1,269,237
$ 36,517 $ 267,259 $ 267,259
$ 83 $ 2,268 $ 10,231 $ 10,231
$ 981 $ 23,642 $ 162,486 $ 162,486
$ - $ 8,005 $ 24,770 $ 5,476 $ 95,394 $ 2,157,587 $ 11,038,969 $ (2,567,539) $ 8,471,430
$ 17,184 $ (17,184) $ -
$ 11,551 $ (9,470) $ 191,193 $ 191,193
$ 495 $ 495
$ 1,035 $ (166) $ 50,898 $ 50,898
$ 57 $ 135,986 $ 135,986
$ - $ 12,643 $ - $ - $ - $ (9,636) $ 378,572 $ - $ 378,572
$ 558,407 $ 558,407
$ 21,618 $ 458,552 $ 458,552
$ 3,139 $ 146,678 $ 146,678
$ 465,277 $ 465,277
$ 90,970 $ 90,970
$ - $ - $ - $ - $ - $ 24,757 $ 1,719,884 $ - $ 1,719,884
$ 982 $ 1,368,413 $ 1,368,413
$ 23,642 $ 718,350 $ 718,350
$ 25,372 $ 1,313,521 $ 1,313,521
$ 820,622 $ 820,622
$ - $ - $ - $ - $ - $ 49,996 $ 4,220,906 $ - $ 4,220,906
The accompanying Independent Auditors' Report and Notes are an integral part of this statement.
61
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
FINANCIAL DATA SCHEDULE (CA011)
PROFIT AND LOSS STATEMENT
FOR THE YEAR ENDED MARCH 31, 2012
(Continued)
Public Housing Housing Choice
Vouchers
De Anza
(DPCU)State/Local Shelter Plus
Care
Community
Development
Block Grants
CFDA #14.850/14.872 14.871 14.238 14.218
$ 65,131
$ 500,541 $ 2,880
$ 52,029 $ 12,312 $ 8,008 $ 5,353 $ 80 $ 135
$ 552,570 $ 12,312 $ 73,139 $ 8,233 $ 80 $ 135
$ 153,231 $ 8,114 $ 50,602 $ 20,603 $ 79 $ 133
$ 1,843 $ 57 $ 935 $ 1,570
$ 153,991 $ 33,535 $ 2,933 $ 3,263 $ 1,277
$ 10,428
$ 309,065 $ 41,706 $ 53,535 $ 31,031 $ 4,277 $ 2,980
$ 337 $ 47,555 $ 72,000 $ 1,250
$ 169,385 $ 148,745 $ 8,496 $ 10,185
$ 63,380 $ 10,176 $ 2,440
$ 110,429 $ 62,852 $ (4,671)
$ 343,531 $ 196,300 $ 145,028 $ (981) $ 8,496 $ 10,185
$ 32,819 $ 177,425 $ 646,780 $ 112,173
$ 30,064 $ 3,142
$ 32,819 $ 177,425 $ 676,844 $ 115,315 $ - $ -
$ 9,168,282 $ 5,611,408 $ 1,910,944 $ 626,861 $ 346,140 $ 136,913
$ 2,178,890 $ 77,236,735 $ 94,811 $ 4,205 $ 3,019,564 $ (74,041)
$ 59,185
$ 75,938,636 $ 3,070,069
$ 515,413
$ 2,265,381 $ 176,260 $ 1,078,236 $ 219,563 $ 541 $ 867
$ 11,492,848 $ 82,241,717 $ 2,989,180 $ 846,424 $ 3,416,750 $ 137,780
$ 1,091,381 $ 28,409 $ 75,000
$ (1,091,381)
$ 421,749
$ (421,749)
$ - $ 28,409 $ - $ - $ - $ 75,000
$ (145,676) $ 634,835 $ (983,425) $ (215,358) $ (51,046) $ 92
$ 140,075 $ 70,109 $ 155,246 $ 19,553 $ - $ -
$ 11,480,631 $ 6,149,112 $ 18,052,989 $ 2,268,885 $ 71,143 $ 1,768
$ 2,904,629
$ 3,879,318
14124 76872 2160 960 2892
12222 76872 2126 905 2892
$ 552,981
$0
$ 1,065,820 11620 Building Purchases
11610 Land Purchases
11270 Excess Cash
11210 Number of Unit Months Leased
11190 Unit Months Available
11180 Housing Assistance Payments Equity
11170 Administrative Fee Equity
11040 Prior Period Adjustments, Equity Transfers and Correction of
11030 Beginning Equity
11020 Required Annual Debt Principal Payments
10000 Excess (Deficiency) of Total Rev Over (Under) Exp
10100 Total Other financing Sources (Uses)
10094 Transfers between Project and Program - Out
10093 Transfers between Program and Project - In
10020 Operating transfer Out
10010 Operating Transfer In
90000 Total Expenses
97400 Depreciation Expense
97350 HAP Portability-In
97300 Housing Assistance Payments
97200 Casualty Losses - Non-capitalized
97000 Excess of Operating Revenue over Op Expenses
96900 Total Operating Expenses
96700 Total Interest Expense and Amortization Cost
96730 Amortization of Bond Issue Costs
96710 Interest of Mortgage (or Bonds) Payable
96000 Total Other General Expenses
96500 Bad debt - Mortgages
96400 Bad debt - Tenant Rents
96300 Payments in Lieu of Taxes
96210 Compensated Absences
96200 Other General Expenses
96100 Total insurance Premiums
96140 All Other Insurance
96130 Workmen's Compensation
96120 Liability Insurance
96110 Property Insurance
95000 Total Protective Services
95500 Employee Benefit Contributions - Protective Services
95300 Protective Services - Other
95200 Protective Services - Other Contract Costs
95100 Protective Services - Labor
62
Section 8 Rental
Voucher
Program
WIA Youth
Activities
WIA Dislocated
Workers
Rental Rehab
Loan
Section 8
Moderate Rehab
Centra Office
Cost Center Subtotal Eliminations Total
14.855 17.259 17.260 14.856
$ 65,131 $ 65,131
$ 503,421 $ 503,421
$ 478 $ 78,395 $ 78,395
$ 6,533 $ 6,533 $ 6,533
$ - $ - $ - $ - $ - $ 7,011 $ 653,480 $ - $ 653,480
$ 8,107 $ 240,869 $ 240,869
$ 81,501 $ 85,906 $ 85,906
$ 1,273 $ 16,211 $ 212,483 $ 212,483
$ 10,428 $ 10,428
$ - $ - $ - $ - $ 1,273 $ 105,819 $ 549,686 $ - $ 549,686
$ 121,142 $ (72,000) $ 49,142
$ 120 $ 105,313 $ 442,244 $ 442,244
$ 75,996 $ 75,996
$ 168,610 $ 168,610
$ 19,862 $ 19,862 $ 19,862
$ 120 $ - $ - $ 19,862 $ - $ 105,313 $ 827,854 $ (72,000) $ 755,854
$ 969,197 $ (30,000) $ 939,197
$ 33,206 $ 33,206
$ - $ - $ - $ - $ - $ - $ 1,002,403 $ (30,000) $ 972,403
$ 120 $ 20,648 $ 24,770 $ 25,338 $ 96,667 $ 2,440,847 $ 20,408,938 $ (2,686,723) $ 17,722,215
$ 27,102 $ - $ - $ 75,000 $ 76,639 $ 85,532 $ 82,724,437 $ (117,847) $ 82,606,590
$ 59,185 $ 59,185
$ 28,047 $ 136,610 $ 79,173,362 $ (117,847) $ 79,055,515
$ 515,413 $ 515,413
$ 27,583 $ 3,768,431 $ 3,768,431
$ 28,167 $ 20,648 $ 24,770 $ 25,338 $ 233,277 $ 2,468,430 $ 103,925,329 $ (2,804,570) $ 101,120,759
$ 1,194,790 $ (1,194,790) $ -
$ (28,409) $ (75,000) $ (1,194,790) $ 1,194,790 $ -
$ 421,749 $ (421,749) $ -
$ (421,749) $ 421,749 $ -
$ (28,409) $ - $ - $ (75,000) $ - $ - $ - $ - $ -
$ (29,354) $ - $ - $ - $ (59,971) $ 57,949 $ (791,954) $ - $ (791,954)
$ - $ - $ - $ - $ - $ - $ 384,983 $ 384,983
$ 29,354 $ - $ - $ - $ 133,298 $ 401,514 $ 38,588,694 $ 38,588,694
$ - $ -
$ 2,904,629 $ 2,904,629
$ 3,879,318 $ 3,879,318
50 336 97394 97394
50 280 95347 95347
$ 552,981 $ 552,981
$ - $ -
$ 1,065,820 $ 1,065,820
The accompanying Independent Auditors' Report and Notes are an integral part of this statement.
63
64
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
COMBINING SCHEDULES FOR USE IN THE COUNTY CAFR
STATEMENT OF NET ASSETS
MARCH 31, 2012
Primary Discretely
Government Presented Totals
Business-type Component (For use by
Activities Units Eliminations the County)
ASSETS
Current assets
Cash and investments $ 7,190,565 $ 35,780 $ - $ 7,226,345
Due from other agencies 439,911 - - 439,911
Tenant accounts receivable 235,936 116,769 - 352,705
Allowance for doubtful accounts (115,948) (90,299) - (206,247)
Miscellaneous accounts receivable 41,543 - - 41,543
Interest receivable 12,524 2,667 - 15,191
Notes receivable - short term 19,003 - - 19,003
Prepaid expenses 179,304 28,997 - 208,301
Total current assets 8,002,838 93,914 - 8,096,752
Restricted assets:
Restricted cash 4,914,388 1,399,808 - 6,314,196
Capital assets:
Land 1,825,993 1,150,712 - 2,976,705
Onsite improvements - 4,028,709 - 4,028,709
Buildings 93,722,131 29,655,110 - 123,377,241
Furniture and equipment 2,199,085 477,933 - 2,677,018
Construction in progress 677,246 - - 677,246
Accumulated depreciation (80,682,199) (7,894,023)- (88,576,222)
Total capital assets 17,742,256 27,418,441 - 45,160,697
Other noncurrent assets:
Long-term notes receivable 2,678,809 - (1,000,000) 1,678,809
Interest receivable on long-term notes 738,074 - (330,107) 407,967
Due from related parties 1,153,415 - (1,153,415) -
Loan costs 94,143 391,461 - 485,604
Amortization (54,398) (219,296)- (273,694)
Total other noncurrent assets 4,610,043 172,165 (2,483,522) 2,298,686
Total assets $ 35,269,525 $ 29,084,328 $ (2,483,522) $ 61,870,331
65
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
COMBINING SCHEDULES FOR USE IN THE COUNTY CAFR
STATEMENT OF NET ASSETS
MARCH 31, 2012
(Continued)
Primary Discretely
Government Presented Totals
Business-type Component (For use by
Activities Units Eliminations the County)
LIABILITIES
Current liabilities:
Accounts payable $ 551,813 $ 36,242 $ - $ 588,055
Due to related parties - 8,632 - 8,632
Due to other agencies 146,737 - - 146,737
Accrued salaries and related costs 407,877 - - 407,877
Accrued interest - 54,260 - 54,260
Unearned revenue 413,562 14,123 - 427,685
Current portion of compensated absences 318,946 - - 318,946
Current portion of long-term debt 230,775 166,471 - 397,246
Total current liabilities 2,069,710 279,728 - 2,349,438
Payable from restricted assets:
Tenant security deposits 347,235 159,522 - 506,757
Family self sufficiency escrows 225,574 - - 225,574
Total payable from restricted assets 572,809 159,522 - 732,331
Other noncurrent liabilities:
Long-term portion of compensated absences 60,193 - - 60,193
Long-term debt 6,104,668 10,091,991 (1,000,000) 15,196,659
Other noncurrent liabilities 5,734,968 - - 5,734,968
Due to related parties -1,483,522 (1,483,522)-
Total noncurrent liabilities 11,899,829 11,575,513 (2,483,522) 20,991,820
Total liabilities 14,542,348 12,014,763 (2,483,522) 24,073,589
NET ASSETS
Investment in capital assets, net of related debt 9,977,161 18,105,719 - 28,082,880
Restricted net assets 4,352,136 1,345,826 - 5,697,962
Unrestricted net assets 6,397,880 (2,381,980)- 4,015,900
Total net assets 20,727,177 17,069,565 - 37,796,742
Total liabilities and net assets $ 35,269,525 $ 29,084,328 $ (2,483,522) $ 61,870,331
The accompanying Independent Auditors’ Report and notes are an integral part of this statement
66
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
COMBINING SCHEDULES FOR USE IN THE COUNTY CAFR
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 2012
Primary Discretely
Government Presented Totals
Business-type Component (For use by
Activities Units Eliminations the County)
Operating revenue:
Rents and other tenant revenue $ 3,530,493 $ 1,951,554 $ (106,264) $ 5,375,783
Other 1,138,215 22,885 - 1,161,100
Total operating revenue 4,668,708 1,974,439 (106,264) 6,536,883
Operating expenses:
Administration 8,115,058 356,370 - 8,471,428
Tenant services 373,099 5,321 - 378,420
Utilities 1,494,401 225,482 - 1,719,883
Maintenance 4,438,978 435,404 - 4,874,382
General 1,238,319 126,562 - 1,364,881
Housing assistance payments 79,677,192 - (106,264) 79,570,928
Depreciation (Note 6) 2,690,198 1,078,236 - 3,768,434
Total operating expenses 98,027,245 2,227,375 (106,264)100,148,356
Operating income (loss) (93,358,537) (252,936) - (93,611,473)
Nonoperating revenue (expenses):
Grants 92,505,438 - - 92,505,438
Interest - unrestricted 102,728 370 - 103,098
Interest - mortgages 52,247 - - 52,247
Restricted interest 34,374 30,946 - 65,320
Interest earned on notes receivable 30,000 (30,000) - -
Fees between the Authority and DeAnza 84,960 (84,960) - -
Amortization - loan fees (3,142) (30,064) - (33,206)
Debt service - interest (322,416) (616,780)- (939,196)
Net income (loss) before
contributions and transfers (874,348) (983,424) - (1,857,772)
Capital contributions 1,065,819 - - 1,065,819
Net income (loss) 191,471 (983,424) - (791,953)
Net assets - beginning of year 20,535,706 18,052,989 - 38,588,695
Net assets - end of year $ 20,727,177 $ 17,069,565 $- $ 37,796,742
The accompanying Independent Auditors’ Report and notes are an integral part of this statement.
67
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
COMBINING SCHEDULES FOR USE IN THE COUNTY CAFR
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31, 2012
Primary Discretely
Government Presented Totals
Business-type Component (For use by
Activities Units Eliminations the County)
Cash flows from operating activities:
Tenant receipts $ 3,402,977 $ 1,934,842 $ (106,264) $ 5,231,555
Other receipts 1,029,696 22,885 - 1,052,581
Payroll and benefit expenditures (8,969,182) (261,944) - (9,231,126)
Administration expenditures (1,655,678) (202,736) - (1,858,414)
Tenant services expenditures (127,129) (5,321) - (132,450)
Utilities expenditures (1,494,401) (225,482) - (1,719,883)
Maintenance expenditures (2,382,416) (285,916) - (2,668,332)
General expenditures (556,333) (85,042) - (641,375)
Housing assistance payment expenditures (79,694,555)- 106,264 (79,588,291)
Net cash provided (used) by operating activities (90,447,021) 891,286 - (89,555,735)
Cash flows from noncapital financing activities:
Operating grants received 91,944,281 - - 91,944,281
Related party transactions 294,779 (300,872) - (6,093)
Repayment of notes receivable 27,350 - - 27,350
Interest received on notes receivable 2,360 - - 2,360
Notes receivable issued (net of borrower’s match) (102,698)- - (102,698)
Net cash provided by noncapital
financing activities 92,166,072 (300,872)- 91,865,200
Cash flows from capital financing activities:
Grants received to acquire capital assets 1,065,819 - - 1,065,819
Acquisition of capital assets (1,173,769) - - (1,173,769)
Principal paid on debt (208,893) (158,453) - (367,346)
Interest paid on debt (243,629) (616,780)- (860,409)
Net cash used by capital financing activities (560,472) (775,233)- (1,335,705)
Cash flows from investing activities:
Interest receipts 101,674 966 - 102,640
Interest on restricted cash 32,920 30,946 - 63,866
Net cash provided by investing activities 134,594 31,912 166,506
Net increase to cash 1,293,173 (152,907) - 1,140,266
Cash at beginning of year 10,811,780 1,588,495 - 12,400,275
Cash at end of year $ 12,104,953 $ 1,435,588 $- $ 13,540,541
Cash and investments $ 7,190,565 $ 35,780 $ - $ 7,226,345
Restricted cash 4,914,388 1,399,808 - 6,314,196
Total cash at year end $ 12,104,953 $ 1,435,588 $- $ 13,540,541
68
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
COMBINING SCHEDULES FOR USE IN THE COUNTY CAFR
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED MARCH 31, 2012
(Continued)
Primary Discretely
Government Presented Totals
Business-type Component (For use by
Activities Units Eliminations the County )
Reconciliation of operating income (loss) to net
cash provided (used) by operating activities:
Operating income (loss) $(93,358,537) $ (252,936) $ - $(93,611,473)
Adjustments to reconcile operating
income (loss) to net cash provided
(used) by operating activities:
Depreciation expense 2,690,198 1,078,236 - 3,768,434
(Increase) Decrease in:
Due from other governments 11,083 - - 11,083
Tenants accounts receivable 16,503 42,955 - 59,458
Other receivable (34,668) - - (34,668)
Prepaid expenses 2,372 (21,332) - (18,960)
Increase (Decrease) in:
Accounts payable 49,036 41,177 - 90,213
Due to other agencies 65,451 - - 65,451
Tenant security deposits 3,004 10,823 - 13,827
Accrued salaries 178,406 - - 178,406
Unearned revenues (106,339) (7,637) - (113,976)
FSS escrows (17,363) - - (17,363)
Compensated absences (37,033) - - (37,033)
Noncurrent liabilities (90,159) - - (90,159)
Post retirement benefits 181,025 - - 181,025
Net cash provided (used)
by operating activities $(90,447,021) $ 891,286 $- $(89,555,735)
Noncash transactions:
C Capital assets of $1,167,154 were transferred from Capital Fund to Public Housing to facilitate the close out of a Capital Fund
grant.
C Interest of $78,787 was accrued as payable to RHCP. The payments on this loan are deferred, unless the project generates
surplus cash.
C Interest on the Rental Rehabilitation loans of $8,498 was accrued, while none was received. The interest on these loans is due
at maturity.
C Interest on the CDBG loans of $43,749 was accrued, while $2,360 was received. Interest is due only at maturity.
The accompanying Independent Auditors’ Report and notes are an integral part of this statement.
69HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTASCHEDULE OF RELEVANT STATISTICSFOR THE YEAR ENDED MARCH 31, 2012Fiscal year ended March 31 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 Number of employees 899990107111103103104115129Number of clients served:Public Housing 1,168 1,168 1,1681,168 1,168 1,168 1,168 1,168 1,168 1,168Housing Choice Voucher 6,400 6,359 6,234 6,400 6,394 6,206 6,206 6,097 6,714 6,767Shelter plus Care 241 241 303 280 281 274 274 285 229 212Section 8 Moderate Rehab 23 25 25 25 25 23 23 28 28 28Section 8 Voucher 55 5 4 455555Component UnitsCasa Del Rio Senior Hsg 8282 82 82 828282828282DeAnza Gardens 180180180180180180180180--Total 8,0998,0617,9978,1398,1347,9387,9387,8458,2268,257Capital Asset Information:Total units 1,430 1,430 1,430 1,4301,430 1,430 1,430 1,430 1,250 1,250Total buildings 636 636 636 636 636 636 636 374 374 374Total vehicles 46 46 46 49 49 49 49 49 51 51By project: Unit Bldg Last changeUnit Bldg 11001 Martinez 50 2811002 Bay Point - 1 2002 83 4311003 Antioch 36 1911004 Brentwood 44 2411005 Pittsburgh 171 5711006 Richmond 71 3011008 Oakley 30 1611009a Richmond 81 4411009b Richmond 56 2811010 Rodeo 248 6311011 Martinez 50 111012 Oakley 40 1311013 Bay Point 50 1411015 Antioch 100 445001 San Pablo 100 3145002 San Pablo 411Total PHA 1,168374Component units:Casa Del Rio Senior Hsg 82 1DeAnza Gardens 180 22 2005 0 0The accompanying Independent Auditors' Report and notes are an integral part of this statement.
70
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATEMENT OF COMPLETED CAPITAL FUND PROGRAM PROJECT
ANNUAL CONTRIBUTIONS CONTRACT SF-182
MARCH 31, 2012
CA39P01150108
Funds approved $ 2,105,723
Funds expended 2,105,723
Excess of funds approved $ -
Funds advanced $ 2,105,723
Funds expended 2,105,723
Excess of funds advanced $ -
The accompanying Independent Auditors' Report and notes are an integral part of this statement.
71
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
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
To the Board of Commissioners
Housing Authority of the
County of Contra Costa
Martinez, California
We have audited the financial statements of the business-type activities, the aggregate discretely presented
component units, and the major fund of the Housing Authority of the County of Contra Costa, California,
as of and for the year ended March 31, 2012, which collectively comprise the Housing Authority of the
County of Contra Costa, California’s basic financial statements and have issued our report thereon dated
December 11, 2012. 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.
Internal Control Over Financial Reporting
Management of the Housing Authority of the County of Contra Costa, California is responsible for
establishing and maintaining effective internal control over financial reporting. In planning and performing
our audit, we considered the Housing Authority of the County of Contra Costa, California's internal control
over financial reporting as a basis for designing our audit procedures 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 Housing Authority of the County of Contra Costa, California’s internal control over financial
reporting. Accordingly, we do not express an opinion on the effectiveness of the Housing Authority of the
County of Contra Costa, California’s internal control over financial reporting.
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 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.
Our consideration of the internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control over financial
reporting that might be deficiencies, significant deficiencies or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined
above.
73
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Board of Commissioners
Housing Authority of the
County of Contra Costa
Martinez, California
Compliance
We have audited the Housing Authority of the County of Contra Costa, California’s, compliance with the
types of compliance requirements described in the U.S. Office of Management and Budget (OMB) Circular
A-133 Compliance Supplement that could have a direct and material effect on each of its major federal
programs for the year ended March 31, 2012. The Housing Authority of the County of Contra Costa,
California's major federal programs are identified in the summary of auditor's results section of the
accompanying schedule of findings and questioned costs. Compliance with the requirements of laws,
regulations, contracts, and grants applicable to each of its major federal programs is the responsibility of
the Housing Authority of the County of Contra Costa, California's management. Our responsibility is to
express an opinion on the Housing Authority of the County of Contra Costa, California's compliance based
on our audit.
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 Housing
Authority of the County of Contra Costa, California's compliance with those requirements and performing
such other procedures as we consider necessary in the circumstances. We believe that our audit provides
a reasonable basis for our opinion. Our audit does not provide a legal determination on the Housing
Authority of the County of Contra Costa, California's compliance with those requirements.
In our opinion the Housing Authority of the County of Contra Costa, California, complied, in all material
respects, with the compliance requirements referred to above that could have a direct and material effect
on each of its major federal programs for the year ended March 31, 2012.
75
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATUS OF PRIOR AUDIT FINDINGS
MARCH 31, 2012
The audit report for the fiscal year ended March 31, 2011, contained the following finding. The following
is a discussion of the status of this finding.
Finding III-2011-A - Housing Choice Voucher Program - Maintenance of Documentation to Support
Compiance with HUD Regulations (CFDA #14.871)
Annually, the Authority must certify their compliance with HUD regulations through
the Section Eight Management Assessment Program (SEMAP). SEMAP is a tool
that measures the performance of a housing authority’s Housing Choice Voucher
Program by establishing a system to assign performance ratings to key program
areas.
The Authority is considered a troubled SEMAP housing authority. The Authority
has been “troubled” since 2005. The Authority’s self assessed score has been
“standard” each year since 2010. By regulation, the Authority’s “troubled” status
can only be removed after HUD has performed a confirmatory review. HUD’s
confirmatory review for the 2010 SEMAP did not clear the “troubled” status. No
further confirmatory reviews have been conducted by HUD. Therefore, the
Authority remains “troubled”.
Our prior period audit noted that due to the large volume of clients, the Authority
was struggling to maintain tenant files in a manner that would show compliance with
HUD regulations. The Department’s work load was split into three geographical
regions. One region used working files during the certification process. The
information in these working files did not always get integrated back into the more
permanent file. During our review, two permanent files could not be located and the
working files did not contain unit information or support for the HAP paid. A third
file contained support for the HAP, but no unit information.
In an attempt to decrease the amount of paper maintained overall, the Authority
decided to purge information from the file based on its age. Unfortunately, this
purging activity eliminated some vital unit information from a number of files.
Many units throughout the County have not had a rent increase in several years.
Rent reasonableness certification is performed only when rent increases or when
there has been a general decrease to fair market rents throughout the County. The
rent reasonableness documentation had been purged from several of the files that we
reviewed. Therefore, the Authority could no longer document compliance with HUD
regulations regarding rent reasonableness. Rent reasonableness documentation is
one of the fourteen SEMAP indicators worth 14% of the total points.
The Authority has a firm perform the majority of the unit inspections required
throughout the year. It is the Authority’s practice to maintain the hard copies of each
inspection and any related correspondence in each tenant file. Hard copies of unit
inspections were missing from 15% of the tenant files reviewed.
76
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
STATUS OF PRIOR AUDIT FINDINGS
MARCH 31, 2012
(Continued)
III-2011-A (continued)
Authority action taken - During 2012, the Authority moved the administration of
all Housing Choice Voucher tenant files to one central location. This eliminated the
need for split tenant files. The Authority has also engaged in a “file project”. With
assistance from an outside contractor, the Authority has employed temporary staff
to review all of the Authority’s tenant files. The purpose of this project is to
organize the contents of each tenant file based on set procedures meant to ensure
consistency throughout the files, identify and obtain any missing documents, and
purge unneeded documents. During the project, a bar code tracking system is being
implemented to improve the maintenance of the centralized filing system. It is the
Authority’s intention to conclude this project with the conversion of all paper files
to a document imaging system. As of the date of this report, the file project is on-
going.
The tenant file review conducted during our current audit showed improvement in
the organization of the tenant files and the accuracy of the calculations. We
continued to note missing unit documentation, specifically with regards to rent
reasonableness. We also noted that, in 5% of our sample, the unit inspections were
not performed on an annual basis.
We recommend that the Authority continue to improve and implement controls to
ensure compliance with HUD regulations.
77
HOUSING AUTHORITY OF THE COUNTY OF CONTRA COSTA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
MARCH 31, 2012
Section I - Summary of Auditors' Results
Financial Statements
Type of auditors' report issued: unqualified
Is a “going concern” explanatory paragraph included in the audit report? no
Internal control over financial reporting:
Significant deficiencies identified? no
Any significant deficiency reported as a material weakness? none reported
Noncompliance material to financial statements noted? no
Federal Awards
Does the auditor’s report include a statements that the auditee’s financial
statements include departments, agencies, or other organizational units
expending $500,000 or more in Federal awards that have separate A-133
audits which are not included in this audit? no
Dollar threshold used to distinguish between Type A and Type B programs $ 2,797,862
Auditee qualified as low-risk auditee? yes
Identification of major programs:
Shelter Plus Care 14.238
Public and Indian Housing Program 14.850
Housing Choice Voucher Program 14.871
Type of auditors' report issued on compliance for major programs: unqualified
Did the audit disclose any audit findings which the auditor is required
to report under OMB A-133, paragraph 510(a) no
Internal control over major programs:
Significant deficiencies identified? no
Any significant deficiency reported as a material weaknesses? none reported
Are any known questioned costs reported? no
Were prior audit findings related to direct funding shown in the
Summary of Prior Audit Findings? yes
Section II - Financial Statement Findings
None
Section III - Federal Award Findings
None
Harn & Dolan
Certified Public Accountants
2423 Stirrup Court
Walnut Creek, California 94596-6526
(925) 280-1693 Fax (925) 938-4829
November 22, 2013
To the Board of Commissioners
and Executive Director
Housing Authority of the
County of Contra Costa
Martinez, California
We have audited the financial statements of the business-type activities and the major fund of the Housing
Authority of the County of Contra Costa, component unit of the County of Contra Costa, California (the
Authority) for the year ended March 31, 2013. We did not audit the financial statements of the Authoritys
component units which were audited by other auditors and the reports were furnished to us. Professional
standards require that we provide you with information about our responsibilities under generally accepted
accounting standards, Government Auditing Standards, and OMB Circular A-133, as well as certain
information related to the planned scope and timing of our audit.
Our Responsibility under U.S. Generally Accepted Auditing Standards and OMB Circular A-133
As stated in our engagement letter dated March 1, 2012, our responsibility, as described by professional
standards, is to express opinions about whether the financial statements prepared by management with your
oversight are fairly presented, in all material respects, in conformity with U.S. generally accepted accounting
principles. Our audit of the financial statements does not relieve you or management of your
responsibilities.
In planning and performing our audit, we considered the Housing Authority of the County of Contra Costa,
Californias internal control over financial reporting in order to determine our auditing procedures for the
purpose of expressing our opinions on the financial statements and not to provide assurance on the internal
control over the financial reporting. We also considered internal control over compliance with requirements
that could have a direct and material effect on a major federal program in order to determine our auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on internal control
over compliance in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether the Authoritys financial statements are free of
material misstatements, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, noncompliance with which could have a direct and material effect on the determination
of financial statement amounts. However, providing an opinion on compliance with those provision is not
an objective of our audit. Also, in accordance with OMB Circular A-133, we examined, on a test basis,
evidence about the Authoritys compliance with the types of compliance requirements described in the U.S.
Office of Management and Budget (OMB) Circular A-133 Compliance Supplement applicable to each of
its major federal programs for the purpose of expressing an opinion on the Authoritys compliance with
those requirements. While our audit provided a reasonable basis for our opinion, it does not provide a legal
determination on the Authoritys compliance with those requirements.
Our responsibility for the supplementary information accompanying the financial statements, as described
by professional standards, is to evaluate the presentation of the supplementary information in relation to the
Housing Authority of the County of Contra Costa
November 22, 2013
Page 2
financial statements as a whole and to report on whether the supplementary information is fairly stated, in
all material respects, in relation to the financial statements as a whole.
Planned Scope and Timing of the Audit
The audit included examining, on a test basis, evidence supporting the amounts and disclosures in the
financial statements; therefore, our audit involves judgement about the number of transactions to be
examined and the areas to be tested.
Our audit included obtaining an understanding of the entity and its environment, including internal control,
sufficient to assess the risks of material misstatement of the financial statements and to design the nature,
timing, and extent of further audit procedures. Material misstatement may result form (1) errors, (2)
fraudulent financial reporting, (3) misappropriation of assets, or (4) violations of laws or governmental
regulations that are attributable to the entity or to acts by management or employees acting on behalf of the
entity. We noted no material misstatement that required communication to you during our audit.
Professional standards also require that we communicate to you the following information related to our
audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the Authority are described in Note 1 to the financial statements. No new
accounting policies were adopted and the application of existing policies were not changed during the fiscal
year ended March 31, 2013. As described in Note 1.R. to the financial statements, the Authority considered
the effect that several new GASB pronouncements would have on the financial statements. The Authority
implemented GASB No 63 Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position, in March 31, 2013. The components of net position were renamed to reflect
the requirements of this statement. We noted no transactions entered into by the Authority during the year
for which there is a lack of authoritative guidance or consensus. All significant transactions have been
recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based
on managements knowledge and experience about past and current events and assumptions about future
events. Certain accounting estimates are particularly sensitive because of their significance to the financial
statements and because of the possibility that future events affecting them may differ significantly from those
expected. The most sensitive estimates affecting the Authoritys financial statement were:
Allowance for uncollectible tenant accounts receivable: Managements estimate is based on past
experience and subsequent collections. We inquired with management on the need for the amount of
the allowances.
Depreciation on capital assets: Managements estimate of the useful lives of its capital assets is based
on historical information about similar assets, the length of time the assets are expected to meet service
and technology demands, and the Authoritys maintenance policy for the assets. These estimates have
remained consistent for several years. We evaluated the key factors and assumption used to develop the
Housing Authority of the County of Contra Costa
November 22, 2013
Page 3
depreciation estimates in determining that they are reasonable in relation to the financial statements
taken as a whole.
OPEB liability: Managements estimate is derived from actuarial valuations obtained from experts. We
agreed the OPEB liability and the other information contained in the OPEB footnote to the amounts
reported in the actuarial report prepared in 2012 for the period beginning April 1, 2012, by Nicolay
Consulting Group.
Noncurrent liability for insurance claims: Managements estimate is derived from advice received from
its insurance carriers.
Certain financial statement disclosures are particularly sensitive because of their significance to financial
statement users. The most significant disclosure affecting the financial statements was the disclosure of the
related parties - component units, both blended and discreetly presented, in Note 16 to the financial
statements. This disclosure describes the Authoritys relationship, including financial, with its component
units.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are trivial, and communicate them to the appropriate level of management.
Management has corrected all such misstatements, except as noted below. In addition, none of the
misstatements detected as a result of audit procedures and corrected by management were material, either
individually or in the aggregate, to each opinion units financial statements taken as a whole.
During the current fiscal year, the Authority disposed of land and buildings, owned for many years, through
eminent domain proceedings with the County of Contra Costa. Since this property was a portion of a larger
project, the book value of the property was not known. Therefore, the book value of the property was not
removed from the books of accounts when the property was disposed. The affect of this disposition on the
financial statements is not known, but management does not believe that the affect is material to the
financial statements.
Disagreements with Management
For the purpose of this letter, a disagreement with management as a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditors report. We are pleased to report that no such disagreement arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated November 22, 2013.