The URL can be used to link to this page

Home My WebLink AboutWHA Financial Statement & Audit AUDIT REPORT WILMINGTON HOUSING AUTHORITY WILMINGTON, NORTH CAROLINA MARCH 31, 2022 TPO CPA, PLLC WILMINGTON HOUSING AUTHORITY TABLE OF CONTENTS MARCH 31, 2022 ============================================================ FINANCIAL SECTION Page Independent Auditor’s Report 1-3 Management’s Discussion and Analysis 4-11 Basic Financial Statements: Combined Statement of Net Position 13 Combined Statement of Revenues, Expenses, and Changes in Net Position 14 Combined Statement of Cash Flows 15-16 Notes to the Financial Statements 17-39 Required Supplementary Information Schedule of Proportionate Share of the Net Pension Liability – Local Government Employees’ Retirement System 41 Schedule of Contributions – Local Government Employees’ Retirement Systems 42 SUPPLEMENTARY INFORMATION Combining Statement of Net Position – Enterprise Funds 43-46 Combining Statement of Revenues, Expenses, and Changes in Net Position – - Enterprise Funds 47-50 Combining Statement of Cash Flows – Enterprise Funds 51-54 Combining Statement of Net Position – Discreet Blended Component Units 55 Combining Statement of Revenues, Expenses, and Changes in Net Position – Discreet Blended Component Units 56 Combining Statement of Cash Flows – Discreet Blended Component Units 57-58 Schedule of Revenues and Expenditures–Budget to Actual 59-60 COMPLIANCE SECTION 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 62-63 Report on Compliance with requirements applicable to each Major Federal Program and Internal Control Over Compliance in Accordance with Uniform Guidance 64-66 Schedule of Findings and Questioned Costs 67-70 Corrective Action Plan 71 Schedule of Prior Audit Findings 72 Schedule of Expenditures of Federal Awards 73 Financial Data Schedule 72 1 TPO CPA, PLLC P. O. Box 41454 Tel: (919) 791-8148 Raleigh, NC 27629 Email:tpocpapllc@gmail.com Independent Auditor’s Report Board of Commissioners Wilmington Housing Authority Wilmington, North Carolina Report on the Financial Statements Opinions We have audited the accompanying financial statements of the business-type activities, the discretely presented component units of the Wilmington Housing Authority (the Authority), as of and for the year ended March 31, 2022, and the related notes to the financial statements, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. In our opinion, except for the effects of the matter described in the Basis for Qualified opinions section of our report, 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, and the discretely presented component units of the Authority as of March 31, 2022, and the respective changes in financial position and, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. We did not audit the financial statements of the blended component units of Robert R. Taylor West Senior Homes, LLC, and the Pointe at Taylor Estates, LLC. These blended component units represent 22% of assets, 18% of net position and 3% of revenues of the business-type activities of the Authority. We did not audit the financial statements of Taylor West, LLC, which represents, Rankin Terrace, LLC, and Creekwood South, LLC which represents 24%, 17%, and 16%, respectively, of the assets, member’s equity, and revenues of the discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us. Our opinion, insofar as it relates to the amounts included for the discretely presented and blended component units, is based solely on the reports of the other auditors. Basis for Qualified Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America (GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the Authority and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Emphasis of Matter The Authority could not provide sufficient and appropriate supporting documentation for significant account balances appearing in the statement of financial position and income statements. 2 Responsibilities of Management for the Audit of the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor’s Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with GAAS and Government Auditing Standards, we: - Exercise professional judgment and maintain professional skepticism throughout the audit. - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, no such opinion is expressed. - Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. - Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the Authority’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control –related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis (MD&A), the Local Government Employees’ Retirement System’s Schedules of the Authority’s Proportionate Share of the Net Pension Assets (liability) and Authority’s Contributions on pages 41-42, the Budgetary Comparison Schedules, be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic 3 financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Authority’s basic financial statements. The Schedule of Expenditures of Federal Awards, which as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and the Financial Data Schedule required by the U.S. Department of Housing and Urban Development are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America by us and other auditors. In our opinion, based on our audit, the procedures described above, and the report of other auditors the combining financial statements, Schedule of Expenditures of Federal Awards, and the budgetary schedule and Financial Data Schedule is fairly stated, in all material respects, in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated December 18, 2023 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 solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority's internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering Authority’s internal control over financial reporting and compliance. TPO CPA, PLLC Raleigh, North Carolina December 18, 2023 4 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 INTRODUCTION The Wilmington Housing Authority (the Authority) presents this discussion and analysis of its financial performance for the fiscal year (FY) ended March 31, 2022. The MD&A is designed to provide an overview of the financial ac�vity for the year, iden�fy changes in the Authority’s financial posi�on, and iden�fy individual fund issues or concerns. Since its design is to focus on the current year’s ac�vi�es, resul�ng changes and currently known facts, please read it in conjunc�on with the Authority’s financial statements, which follow this sec�on. The Authority’s FY 2022 annual financial report consists of two parts – the management’s discussion and analysis, and the basic financial statements (which include notes to those financial statements). Also included are supplementary schedules that show informa�on sent to the U.S. Department of Housing and Urban Development (HUD) related to our basic financial statements. A) Management’s Discussion and Analysis B) Basic Financial Statements and Notes to the Financial Statements C) Supplementary Schedules The FY 2022 discussion and analysis is based on the financial results of the financial statements of the Authority using accoun�ng methods like those used by private sector companies (Business-Type Ac�vi�es). The discussion and analysis are also based on the financial results represented in three basic financial statements – the statement of net posi�on; the statement of revenues, expenses, and changes in net posi�on; and the statement of cash flows. The statement of net posi�on includes all the Authority’s assets, liabili�es, and deferred inflow/ou�low of resources and provides informa�on about the amounts and investments in assets and the obliga�ons to Authority creditors. It also provides a basis for assessing the liquidity and financial flexibility of the Authority. The current year’s revenues and expenses are accounted for in the statement of revenues, expenses, and changes in net posi�on. This statement measures the success of the Authority’s opera�ons over the past fiscal year. The statement of cash flows provides informa�on about the Authority’s cash receipts and disbursements during the repor�ng period. The statement reports net changes in cash resul�ng from opera�ons, financing ac�vi�es, capital ac�vi�es, and inves�ng ac�vi�es. 5 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 INTRODUCTION (CONTINUED) Under GASB 34, the Authority’s single business-type ac�vi�es financial statements for FY 2022 report on all assets, liabili�es, revenues, expenses, and net posi�on under the programs it administers. The Authority’s FY 2022 highlights are included in the following summary: •Total assets were approximately $69 million on March 31, 2022, a�er elimina�on of the interfund accounts. •Total revenues and expenses were approximately $30 million and $27 million, respec�vely. A�er considering capital grants of $4.3 million, the change in net posi�on increased by $2,715,047 during the fiscal year. •Revenues are derived from various sources with approximately 87% from subsidy sources. Rental revenues from Authority-owned proper�es were approximately $3.1 million, or 13% of total revenue. FINANCIAL STATEMENTS The Authority’s mission focuses on the management, financing, rehabilita�on, preserva�on, and construc�on of housing, primarily for low-income and moderate-income households, assis�ng in the revitaliza�on of neighborhoods, and redevelopment of areas in the City of Wilmington. The Authority, as of March 31, 2022, owned 981 residen�al units that are leased to low-income and moderate-income families and individuals. In addi�on, housing assistance was being paid to over 1,638 households under the Federal Housing Choice Voucher, HOPWA, HOME and Shelter Plus Care programs for privately owned exis�ng housing. In view of this mission, the Authority’s financial repor�ng objec�ve under GASB 34 in FY 2022 focuses on the financial ac�vi�es of the Authority as a whole. They report the net posi�on and changes in net posi�on in full compliance with GASB 34 and on a full accrual basis. Under the full accrual basis of accoun�ng, revenues are recognized in the period they are earned and expenses in the period when they are incurred. This en�ty-wide presenta�on represents over a dozen programs and ac�vi�es. Most of these programs are financed by federal grants from HUD, rents, and other user charges resul�ng from opera�ons of subsidized housing, by development and financing fees, and by investment income. In FY 2022, the financial statement presenta�on includes the GASB 61 repor�ng requirement. GASB 61 effects on the financial statements include: •Increased emphasis on financial rela�onships •Clarifies the requirements to blend certain component units. •Improved recogni�on of ownership interest in joint partnerships, component units and investments. 6 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 FINANCIAL STATEMENTS (CONTINUED) To comply with GASB Statement No. 61, the Authority included eight addi�onal component units in their financial statements. The financial informa�on for Glover Plaza, Inc., Housing and Economic Opportuni�es, Inc. (HEO), Jervay House, LLC, HEO Partners I, II, III, LLC, WHA Partners I, II, LLC, Suppor�ve Housing I, LLC, point at Taylor Estates, and Robert R. Taylor Senior Homes are blended as part of the financial statements of the Authority. The financial statements for the LIHTC proper�es – Taylor West , LLC, Rankin Place Terrace, and Creekwood South LLC, are discretely presented, meaning they are aggregately presented separate from the Authority’s ac�vity. In FY 2022, the following programs made up the Authority’s single business-type ac�vi�es financial statements: • Low Income Public Housing Program – Funding is from federal grants from HUD, rents, and other tenant charges and provides essen�al affordable housing for low-income and moderate-income families, disabled persons, and the elderly. • Housing Choice Voucher – These programs are funded by HUD and are subsidy programs for low- income and moderate-income families seeking housing in the private rental market. • Grant Programs (nonmajor funds) – These programs account for HUD grant funds received for the following ac�vi�es: Resident Opportunity and Self Sufficiency, Family Self Sufficiency (housing counseling assistance), Shelter Plus Care and Housing Opportuni�es for Persons with Aids. • HOPE VI Program – This program accounts for the revitaliza�on of severely distressed public housing. • Capital Fund Program – This program uses HUD capital contribu�ons to fund new construc�on, acquisi�on, and major improvements to exis�ng public housing proper�es. • Business Activities – This program finances the ac�vi�es that involve sources and uses of funds not restricted to a par�cular program. • Blended Component Units – These programs consist of Senior Homes, Taylor Estates at the Point (a part of TB). Glover Plaza, Inc., Housing and Economic Opportuni�es, Inc. (HEO), Jervay House, LLC, HEO Partners I, II, III, LLC, WHA Partners I, II, LLC, Suppor�ve Housing I, LLC, Point at Taylor Estates, and Robert R. Taylor Senior Homes. All organiza�ons operate as separate en��es, each with its own Board of Directors. • Discretely Presented Component Units – These programs consist of Taylor West, LLC, Creekwood South LLC, and Rankin Place Terrace LLC. All organiza�ons operate as separate en��es. 7 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 NET POSITION Table 1 reflects the Authority’s condensed summary of the balance sheet as of March 31, 2022, and 2021 Table 1 Comparative Summary of the Statement of net Position (Balance Sheet) March 31, 2022 and 2021 As Restated FYE 2022 FYE 2021 Variance % Change Current Assets $ 12,337,244 $ 14,213,124 $ (1,875,880) (13.20) Capital Assets, Net 39,565,045 34,587,391 4,977,654 14.39 Noncurrent Assets 15,576,723 13,851,709 1,725,014 12.45 Total Assets $ 67,479,012 62,652,224 $ 4,826,788 7.70 Deferred Outflow of Resources 1,167,313 950,260 217,053 22.84 Current Liabilities 1,898,952 1,413,146 485,806 34.38 Noncurrent Liabilities 9,077,967 8,404,979 672,988 8.01 Total Liabilities 10,976,919 9,818,125 1,158,794 11.80 Deferred Inflow of Resources 658,181 9,518 648,663 68.15 Net Investment in Capital Assets 36,172,606 28,662,468 7,510,138 26.20 Restricted Net Position 3,813,972 3,221,788 592,184 18.38 Unrestricted Net Position 17,024,647 21,890,585 (4,865,938) (22.23) Total Net Position $ 57,011,225 $ 53,774,841 $ 3,236,384 6.02 8 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 Net Position may serve over time as a useful indicator of the Authority’s financial position. As illustrated in the statement of the net position, the Authority’s Net Position for FY 2022 increased by $3,236,384 or 6.02% from FY 2021. Capital Assets comprise about 59% of the Authority’s total assets of $68 million. The current and long- term liabilities are approximately $11 million compared to last year’s $9.8 million. The Current Liabilities variance from 2022 to 2021 was $485,806 or 34.38% and the Noncurrent Liabilities variance was $672,988 or 8.01% of 2021. The net investment in Capital Assets amounts to $36,172,606 with a variance of $7,510,138 from 2021.The Restricted Net Position has increased to $592,184 and the Unrestricted Net Position decreased to approximately $4.8 million in 2022. Restricted Net Position includes cash and investment restricted for Housing Assistance Payments, loan loss and future capital projects less liabilities that will be paid from these Restricted Assets. Unrestricted Net Position includes cash in the bank, receivables, net of allowances, and other assets less all other liabilities not previously applied. For FY 2022, Restricted Net Position increased to 18% and Unrestricted Net Position decreased to 33.21%. REVENUES, EXPENSES, and CHANGES IN NET POSITION As shown in Table 2, during FY 2022, the Authority’s total opera�ng revenues decreased by 5.38%. The $1.4 million decrease in revenue was due to decreased in Other Income. HUD subsidies increased by $963,985 or 4.66% due to budget increased by HUD. Revenues from HUD grants can vary greatly from year to year due to Authority needs as well as various other economic and market condi�ons. The Authority had Capital Grants in the amount of $2.7 million related to the purchase of Point at Taylor Estates and Robert R. Taylor Senior Homes. Other income reflected a 23% increase of $1,858,080, which is due to the inclusion of Point at Taylor Estates and Robert R. Taylor Senior Homes. 9 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 Revenues, Expenses, and Changes in Net Posi�on Table 2 Statements of Revenues, Expenses, and Changes in Net Posi�on Years Ended March 31, 2022 and 2021 FYE 2022 FYE 2021 Variance % Change Rental Income $ 3,166,529 $ 3,109,221 $ 57,308 1.84 HUD Subsidies 21,644,232 20,680,247 963,985 4.66 Other Governmental Grants 0 37,143 (37,143) (100) Other Income 358,204 2,773,083 2,414,878 (87.08) Opera�ng Revenues 25,168,965 26,599,693 (1,430,728) (5.38) Administra�on 3,171,551 3,440,081 (268,530) (7.81) Tenant Services 667,425 1,072,025 (404,600) (37.74) U�li�es 1,524,018 1,550,123 (26,105) (1.68) Ordinary Maintenance 2,542,166 2,407,864 134,302 5.58 Protec�ve Services 286,942 244,095 42,487 17.55 Insurance Premiums 476,207 476,207 100 General Expenses 2,257,888 2,780,228 (522,340) (18.79) Amor�za�on 27,877 - 27,877 100 Housing Assistance Payments 11,119,944 12,221,609 (1,101,665) (9.01) Deprecia�on 2,679,310 2,773,074 (93,764) (3.38) Opera�ng Expenses 24,753,328 26,489,099 (1,735,771) (6.55) Excess (deficiency) Revenue over Expenses 415,637 110,594 305,043 275.8 Investment Income 3,520 2,944 576 19.57 Interest Expenses (235,940) (266,968) 31,028 (11.62) Mortgage Interest Income - 4,368 (4,368) (100) Capital Grants 4.387,783 1,679,553 2,708,230 161.25 Transfer In (1,855,953) 8,898,227 (10,754,180) (120.86) Change In Net Posi�on 2,715,047 10,428,718 (7,713,671) (73.97) Net Posi�on – Beginning of Year, as restated. 53,774,841 43,346,123 10,428,718 24.06 Prior Period Adjustment 521,337 - 521,337 100 NET POSITION – END OF YEAR $ 57,011,225 $ 53,774,841 $ 3,236,384 6.0 10 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 REVENUES, EXPENSES, and CHANGES IN NET POSITION (CONTINUED) Total expenses in FY 2022 decreased $1,735,771 or 6.55%. The decrease was due to the decrease in Administra�on, Tenant Services, Protec�ve services, General Services, Housing Assistance Payments, and Deprecia�on. Overall, the Management was trying to control expenses by not hiring open posi�ons, and many of the Tenants were temporarily evacuated due to mold repairs in the units. At the end of fiscal year 2022, the Authority’s Net Posi�on increased by $3,236,384. SOURCES of REVENUES and EXPENSES Most revenues received came from subsidies which amounted to 87% of total revenue. Total opera�ng subsidies including capital funds received from HUD FY 2022 were $21,644,232. Tenant rent revenues received in FY 2022 amounted to 13% of the total revenues received for the year. The Authority’s expenses increased 6.0% from last year. Ordinary Maintenance expenses increased by $134,302 due to an increase in maintenance contract materials. Housing assistance payments decreased by $1.1 million. The decrease in u�liza�on in the HCVP has been an issue. Also, another reason was more of our portability-outs were absorbed and a few of the Voucher holders passed away throughout the year. As a result, there were more vouchers available to lease. Deprecia�on expenses decreased from last fiscal year by $93,764. The decrease is due to less capital improvements. The Authority experienced gains in the Public Housing Program, COCC, and HCV. The Authority con�nues to work to reduce opera�ng expenses, especially in the Low-Rent Public Housing, COCC, and Housing Choice Voucher program due to economic factors and regulatory changes. 11 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 FINANCIAL CONDITION INDICATORS The Real Estate Assessment Center performs a financial evalua�on of the Authority as it compares to its peers. This evalua�on is known as the Financial Assessment Subsystem (FASS). Through regula�on, the Authority provides the informa�on needed to project its score. The fiscal year ending March 2022 coincides with the eighth year of project-based budge�ng and accoun�ng under asset management. At the �me of this report, the Authority has not received a final score for the fiscal year ending March 31, 2022. The Housing Choice Voucher Program received a troubled performance status for fiscal year ending March 31, 2022, from the Assessment Center but we are hoping to receive a high-performance status for 2023. CAPITAL ASSETS At the end of FY 2022, the Authority had Capital Assets amoun�ng to $39.6 million, compared to 2021 which was $34.5 million. There was $2,708,230 in Capital Asset acquisi�ons, which were offset by deprecia�on expense of $2,279,310. There was also less Transfer of $1.8 Million. A complete summary of Capital Assets follows: 2022 2021 Total Change % Change Land $ 4,196,531 $ 4,196,531 $ - Building and Improvements 95,010,926 88,048,351 6,962,575 7.91% Equipment 3,072,501 3,052,364 20.137 .66 98,083,427 95,297,246 2,786,181 2.92 Accumulated Deprecia�on (60,714,914) (60,709,855) (5,059) .01 Total Capital Assets $ 39,565,044 $ 34,587,391 $4,977,653 14.39 12 WILMINGTON HOUSING AUTHORITY MANAGEMENT’S DISCUSSION AND ANALYSIS MARCH 31, 2022 CAPITAL DEBT ACTIVITY The following is a summary of the Capital Debt ac�vity for the year ended March 31, 2022: Public Housing Central Office Cost Center Blended Component Unit Authority Totals Beginning Balance $ 422, 617 $ - $ 3,475,969 $ 3,898,586 Principal Reduc�ons (66,412) - (16,957) (83,369) Addi�ons - - - - Ending Balance $ 356,205 $ - $ 3,459,012 $ 3,815,217 The Authority paid the normal principal and interest payments on all debt. ECONOMIC FACTORS and EVENTS AFFECTING OPERATIONS Several factors may affect the financial posi�on of the Authority in the subsequent fiscal year. These factors include: 1. The Authority is opera�ng in a period of declining revenues. As a result of the �ghtening of the Federal Government’s budget, the Authority faces the poten�al of declining HUD subsidies used to administer its programs. In the upcoming year, the Authority expects to receive 84% of the requested opera�ng subsidy. 2. In the HCV Programs, the Authority expects to receive approximately 90% of the budget authority for HAP payments and 75% of the allowable administra�ve fees. CONTACTING AUTHORITY MANAGEMENT This financial report is designed to provide the ci�zens of the City of Wilmington, taxpayers, customers, investors, and creditors with a general overview of the Authority’s finances and to demonstrate the Authority’s accountability for the money it receives. Ques�ons concerning this report, or requests for addi�onal financial informa�on should be directed to the Vice President, Chief Financial Officer, or the Wilmington Housing Authority, 1524 S. 16th Street, Wilmington, NC 28101. BASIC FINANCIAL STATEMENTS Wilmington Housing Authority Statement of Net Position March 31, 2022 Discrete Enterprise Component Funds Units Total ASSETS Current Assets: Cash -unrestricted 4,714,002$ 2,525,067$ 7,239,069$ Cash -restricted 4,124,610 2,085,094 6,209,704 Accounts receivable - Net 1,923,092 149,728 2,072,820 Notes receivable - current portion 2,043 - 2,043 Prepaid expense 1,519,096 62,813 1,581,909 Supplies inventory 54,401 - 54,401 Total Current 12,337,244 4,822,702 17,159,946 Noncurrent: Capital assets 102,279,959 25,880,206 128,160,165 Less: Accumulated depreciation (62,714,914) (5,665,634) (68,380,548) Notes receivable 15,576,723 815,472 16,392,195 Total non-current assets 55,141,768 21,030,044 76,171,812 Deferred outflows of resources 1,167,313 - 1,167,313 Total assets 68,646,325$ 25,852,746$ 94,499,071$ LIABILITIES Current Liabilities: Accounts payable 760,262$ 185,970$ 946,232$ Accrued expenses 310,288 45,647 355,935 Current portion of long-term debt 87,227 11,049 98,276 Unearned revenues 508,298 30,513 538,811 Security deposits 232,877 61,104 293,981 Total current liabilities 1,898,952 334,283 2,233,235 Noncurrent Liabilities Long-term debt, net of current portion 3,727,990 5,024,862 8,752,852 Other non-current 4,893,731 7,719,701 12,613,432 Accrued pension liabilities 456,246 - 456,246 Totat non-current liabilities 9,077,967 12,744,563 21,822,530 Total liabilities 10,976,919 13,078,846 24,055,765 Deferred inflow of resources 658,181 - 658,181 NET POSITION Net investment in capital assets 36,172,606 15,178,661 51,351,267 Restricted net position 3,813,972 - 3,813,972 Unrestricted 17,024,647 (2,404,761) 14,619,886 Total net position 57,011,225$ 12,773,900$ 69,785,125$ The accompanying notes are an integral part of the financial statements 13 Discrete Enterprise Component Funds Units TOTAL Operating Revenues: Dwelling rental 3,166,529$ 2,532,998$ 5,699,527$ Operating subsidy - HUD 21,644,232 - 21,644,232 Other revenue 358,204 110,951 469,155 Total operating revenues 25,168,965 2,643,949 27,812,914 Operating Expenses: Administration 3,171,551 577,305 3,748,856 Tenant Services 667,425 - 667,425 Utilities 1,524,018 761,887 2,285,905 Ordinary maintenance 2,542,166 971,069 3,513,235 Protective services 286,942 40,957 327,899 Insurance premiums 476,207 241,326 717,533 General expense 2,257,888 55,140 2,313,028 Depreciation 2,679,310 28,611 2,707,921 Amortization 27,877 667,629 695,506 Housing assistance payment 11,119,944 - 11,119,944 Total operating expenses 24,753,328 3,343,924 28,097,252 Operating Income (Loss)415,637 (699,975)(284,338) Non-operating revenues (expenses): Interest income 3,520 700 4,220 Interest expense (235,940) (328,873) (564,813) Nonoperating revenues (expenses)(232,420)(328,173)(560,593) Income (loss) before contributions and transfers 183,217 (1,028,148)(844,931) Capital grants contributions 4,387,783 4,387,783 Other transfers 481,528 481,528 Operating transfer-in (2,337,481) 2,337,481 0 Change in net position 2,715,047 1,309,333 4,024,380 Net position, beginning 52,636,918 11,464,567 64,101,485 As restated 53,774,841 11,464,567 65,239,408 Prior period adjustment 521,337 - 521,337 Net position, ending 57,011,225$ 12,773,900$ 69,785,125$ Wilmington Housing Authority Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended March 31, 2022 The accompanying notes are an integral part of the financial statements 14 Discrete Enterprise Component Funds Units Total Cash flows from operating activities: Cash received from tenants 3,137,053$ 2,526,907$ 5,663,960$ Operating grants and subsidies 23,467,772 - 23,467,772 Cash paid to suppliers and employees (23,735,725) (2,733,141) (26,468,866) Other revenue 205,158 110,951 316,109 Net cash (used) provided by operating activities 3,074,258 (95,283) 2,978,975 Cash flows from noncapital and financing activities: Prior period adjustments 521,337 521,337 Due to (from) other funds 378,647 - 378,647 Net cash (used) provided by noncapital financing activities 899,984 0 899,984 Cash flows from capital and related financing activities: Other assets (2,337,481) (6,970) (2,344,451) Escrow deposit - 2,337,481 2,337,481 Interest expenses (217,175) (328,873) (546,048) Capital grants 4,387,783 - 4,387,783 Acquisition and construction of capital assets (6,982,713) (482,201) (7,464,914) Other non-current liabilities' (1,071,612) 900,516 (171,096) Net cash (used) provided by capital and related financing activities: (6,221,198) 2,419,953 (3,801,245) Cash flows from investing activities: Interest on investments (15,245) 700 (14,545) Net decrease in cash and cash equivalent (2,262,201) 2,325,370 63,169 Cash and cash equivalents, March 31, 2021 11,100,813 2,284,791 13,385,604 Cash and cash equivalents, March 31, 2022 8,838,612$ 4,610,161$ 13,448,773$ The accompanying notes are an integral part of the financial statements. Wilmington Housing Authority Statement of Cash Flows For the Year Ended March 31, 2022 15 Discrete Enterprise Component Funds Units Total Reconciliation of operating loss to net cash provided (used) by operating activities: Operating income (loss)415,637$ (699,975)$ (284,338)$ Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation 2,707,187 667,629 3,374,816 Amortization - - - (Increase) decrease in tenant rent receivable (29,476) (6,091) (35,567) (Increase) decrease in accounts receivable -HUD (67,452) - (67,452) (Increase) decrease in accounts receivable - misc (504,988) - (504,988) (Increase) decrease in note receivable (1,708) - (1,708) (Increase) decrease in escrow - - - (Increase) decrease in deferred outflows (217,053) - (217,053) (Increase) decrease in deferred intflows 648,663 - 648,663 Increase (decrease) in accounts payable 145,367 2,462 147,829 Increase (decrease) in pension liability (547,887) - (547,887) Increase (decrease) in accrued liabilities (25,618) (6,406) (32,024) Increase (decrease) in current liabilities 2,968 - 2,968 Increase (decrease) in prepaid 40,373 (54,603) (14,230) Increase (decrease) in inventory 12,355 - 12,355 Increase (decrease) in non-current liabilities - - - Increase (decrease) in customer deposits (1,536) (750) (2,286) Increase (decrease) in accounts payabe other govt.- - - Total Adjustments 2,658,621 604,692 3,263,313 Net cash provided (used) by operating activities 3,074,258$ (95,283)$ 2,978,975$ The accompanying notes are an integral part of the financial statements. Wilmington Housing Authority Statement of Cash Flows - Contd. For the Year Ended March 31, 2022 16 WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (17) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization The financial statements of Wilmington Housing Authority (the Authority) have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP). The Authority is required to follow all statements of the Governmental Accounting Standards Board (GASB). The more significant of the Authority’s accounting policies are described below. The Authority is a public body and a body corporate and politic organized under the laws of the state of North Carolina by the City of Wilmington (the City) for the purpose of providing adequate housing for qualified low-income individuals. The Authority is not a component unit of the City and the City provides no financial support to the Authority and is not responsible for the debts or entitled to the surpluses of the Authority. The Authority has the power to approve its own budget and maintains its own accounting system. Although the City appoints the governing board of the Authority, no other criteria established by GASB for inclusion of the Authority in the financial reports of the City are met. Therefore, a separate financial report is prepared for the Authority. Additionally, the Authority has entered into annual contribution contracts with the U.S. Department of Housing and Urban Development (HUD) to be the administrator of the housing and housing related programs described herein. The Authority is not subject to federal or state income taxes and is not required to file federal or state income tax returns. Funding for the Authority is primarily from HUD and from payments received from tenants of the Authority-owned housing. Under the Low Income Housing Program, low-income tenants pay a portion of the rental cost of public housing, based upon the income and need of the tenants. HUD funds the difference between the actual costs to operate the Low Income Housing Program and the amounts paid by tenants through operating subsidies. These subsidies and debt service payments are made to or on behalf of the Authority under the terms and conditions of the annual contributions contract with HUD. The Housing Choice Voucher Program provides rental supplements to the owners of existing private housing who rent to qualifying individuals. The Authority processes all applicants for the Housing Choice Voucher Program, places approved applicants in housing and pays the owner of the private housing a monthly rental supplement. Under the conditions of an annual contributions contract, HUD reimburses the Authority for the rental supplements and the administrative cost of managing the Program. The Authority also operates other programs funded by both HUD and other granting agencies. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (18) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Reporting Entity The Authority’s combined financial statements include the accounts of all Authority operations. The criteria for including organizations as component units with the Authority’s reporting entity, as set forth in Section 2100 of GASB’s Codification of Governmental Accounting and Financial Reporting Standards, include the following: • the organization is legally separate (can sue and be sued in its own name) • the Authority holds the corporate powers of the organization • the Authority appoints a voting majority • the Authority is able to impose its will on the organization • the organization has the potential to impose a financial benefit/burden on the Authority • there is fiscal dependency by the organization on the Authority On the basis of the application of these criteria, the Authority is a legally separate entity that is fiscally independent of other governments, and there are no other entities that are to be reported as component units of the Authority, except as noted below, nor is the Authority to be included in the City’s financial reports, therefore, the Authority reports independently. The financial statements include the following blended and discretely presented component units. Development Corporations. The Development Corporations (the Corporations) operate exclusively for nonprofit purposes and were created to assist in carrying out housing projects for persons of eligible income. Housing projects undertaken, financed, or assisted by the Corporations and their related expenditures must be approved by the Authority. The Corporations are legally separate from the Authority and are included as blended component units since the Authority can significantly influence the programs, projects, or activities of, or the level of service performed by the Authority, and their boards of directors are substantially the same as the Authority. The following Development Corporations are included as blended component units of the Authority: • WHA Partners I, LLC • Glover Plaza, Inc. • Senior Homes • Taylor Estates at the Point • Housing Economic Opportunities, Inc. o Jervay House, LLC o HEO Partners I, II, III, IV, V, LLC o Supportive Housing I, LLC o Point at Taylor Estates o Robert R Taylor Senior Homes WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (19) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Real Estate Limited Partnerships The Real Estate Limited Partnerships (the Companies) are private for profit organizations that report under FASB standards, including Topic 958. As such, certain revenue recognition criteria and presentation features are different from GASB revenue recognition criteria and presentation features. No modifications have been made to the Companies’ financial information in the Authority’s financial reporting entity for these differences. The Companies operate on a calendar year. The amounts included for each discretely presented component unit that comprise the aggregate component units column in the combined financial statements are as of, and for the year ended December 31, 2021. Separate financial statements for Creekwood South, LLC, Rankin Terrace, LLC, and Taylor West, LLC can be obtained from the Authority. Creekwood South, LLC ( the Company) – was formed on May 10, 2010 as a limited liability company under the laws of the state of North Carolina, for the purpose of acquiring, owning, operating and financing a rental housing project known as Creekwood South (the Project) under Section 8 of the National Housing Act as regulated by HUD. The Company’s partnership interests are held by third parties unrelated to the Authority, with the exception of the managing member, WHA Partners I, LLC, who is a blended component of the Authority. The Authority oversees management functions of the Company’s operations. The Authority has certain rights and responsibilities, which enables it to impose its will on the Company. In addition, the Authority is financially accountable for the Company as the Authority is legally obligated to fund operating deficits in accordance with the terms of the partnership agreements. In accordance with GASB Statement No. 61, the Company is included as a discretely presented component unit in the March 31, 2022 financial statements. Rankin Terrace, LLC (the Company) was formed on May 10, 2010 as a limited liability company under the laws of the state of North Carolina for the purpose of acquiring, owning, operating and financing a rental housing project known as Rankin Terrace (the Project) under Section 8 of the National Housing Act as regulated by HUD. The Company’s partnership interests are held by third parties unrelated to the Authority, with the exception of the managing member, HEO Partners IV, LLC, who is a blended component of the Authority. The Authority oversees management functions of the Company’s operations. The Authority has certain rights and responsibilities, which enables it to impose its will on the Company. In addition, the Authority is financially accountable for the Company as the Authority is legally obligated to fund operating deficits in accordance with the terms of the partnership agreements. In accordance with GASB Statement No. 61, the Company is included as a discretely presented component unit in the March 31, 2022 financial statements. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (20) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Real Estate Limited Partnerships (Continued) Taylor West, LLC (the Company) is a limited liability company organized under the laws of the state of North Carolina for the purpose of acquiring, constructing, and operating a 48-unit apartment complex, New Brooklyn Homes at Robert R. Taylor Estates (the Project) for low and moderate income individuals pursuant to Section 42 of the Internal Revenue Code of 1986, which provides low-income housing tax credit. The Company’s partnership interests are held by third parties unrelated to the Authority, with the exception of the managing member, HEO Partners III, LLC, who is a blended component of the Authority. The Authority oversees management function of the Company’s operations. The Authority has certain rights and responsibilities, which enables it to impose its will on the Company. In addition, the Authority is financially accountable for the Company as the Authority is legally obligated to fund operating deficits in accordance with the terms of the partnership agreements. In accordance with GASB Statement No. 61, the Company is included as a discretely presented component unit in the March 31, 2022 financial statements. Description of Funds The Authority’s accounts are maintained in accordance with the principles of enterprise fund accounting to ensure the observance of limitations and restrictions on the resources available. The Authority is required to follow all statements of the GASB. A fund is an independent fiscal and accounting entity with a self-balancing set of accounts comprised of its assets, liabilities, net position, revenues, and expenses. The funds maintained by the Authority allow compliance and financial accountability by separate functions and activities. When restricted resources meet the criteria to be available for use and unrestricted resources are also available for use, it is the Authority’s policy to use restricted resources first, and then unrestricted resources, as needed. Basis of Accounting and Measurement Focus Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the measurement made, regardless of the measurement focus applied. The Authority uses the accrual basis of accounting in all of the Authority funds. Under this method, revenues are recorded when earned, and expenses are recorded when liabilities are incurred, regardless of when the related cash flow takes place. Budget The Authority is required by its HUD Annual Contributions Contracts to adopt an annual budget for the Low Income Housing Program. In addition, the Authority is required by its HUD Annual Contributions Contracts to adopt annual budgets for the Section 8 Programs. Annual budgets are not required for capital projects funds as their budgets are approved for the length of the project. Both annual and project length budgets require grantor approval. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (21) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Use of Estimates in Preparing Financial Statements The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, and expenses in the financial statements and in the disclosures of contingent assets and liabilities. Actual results could differ from those estimates. Cash and Cash Equivalents The Authority’s cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term investments with an original maturity of three months or less when purchased. Investments Statutes authorize the Authority to invest in obligations of the U.S. treasury, repurchase agreements, certificates of deposit and certain other investments allowed by HUD. These investments are carried at fair value. Investments are stated at fair value. The Authority reports all money market investments having a remaining maturity at time of purchase of one year or less at amortized cost. Investment securities are normally held to mature at par value. Accounts Receivable Accounts receivable consist of rent payments due from tenants and other miscellaneous receivables arising from the normal course of operations. A reserve for uncollectible accounts has been established based on management’s estimates. Capital Assets All capital assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated capital assets are valued at their acquisition value on the date donated. Capital assets are stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the useful lives of the respective assets ranging as follows: buildings, 20 – 30 years; equipment, seven years; automobiles, five years; and site improvements, 10 years. The costs of assets retired or otherwise disposed of and the related accumulated depreciation have been eliminated from the respective accounts. Gains or losses resulting from such dispositions are recognized in current income. Capitalization Policy for the Authority is individual items purchased or betterment, not repairs, in excess of $5,000 and a useful life of one more than (1) year will be capitalized. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (22) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Capital Assets (Continued) The cost of maintenance and repairs are charged to operations as incurred. Costs of major additions, improvements, and betterments are capitalized. Interest cost is capitalized on capital assets. Interest is not capitalized on assets acquired or constructed with gifts and grants (contributed capital) that are restricted by the donor or grantor to acquisition of those assets to the extent that funds are available from such grants and gifts. No interest was capitalized during the audit period. Deferred Outflows/Inflows of Resources In addition to assets, the statement of financial position reports a separate section for deferred outflows of resources. This separate financial statement element, Deferred Outflows of Resources, represents a consumption of net position that applies to a future period and so will not be recognized as an expense or expenditure until then. The Authority has two items that meet this criterion, contributions that were made to the plan subsequent to the measurement date and pension deferrals resulting from changes in proportion and the proportionate share of contributions. In addition to liabilities, the statement of financial position reports a separate section for deferred inflows of resources. This separate financial statement element, Deferred Inflows of Resources, represents an acquisition of net position that applies to a future period and so will not be recognized as revenue until then. The Authority has one item that meets the criterion for this category, deferrals of pension expense that result from the implementation of GASB Statement 68. Pensions For purposes of measuring the net pension asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Local Governmental Employees’ Retirement System (LGERS) and additions to/deductions from LGERS’ fiduciary net position have been determined on the same basis as they are reported by LGERS. For this purpose, plan member contributions are recognized in the period in which the contributions are due. The Authority’s employer contributions are recognized when due and the Authority has a legal requirement to provide the contributions. Benefits and refunds are recognized when due and payable in accordance with the terms of LGERS. Investments are reported at fair value. Compensation for Future Absences It is the Authority’s policy to permit employees to accumulate earned but unused personal leave and unused sick leave, which will be paid to the employees upon separation from Authority service. A maximum of 150 hours of unused vacation time may be carried forward annually by each employee. All of the vacation benefits are accrued in the period earned. As of December 31, 2017, the Authority froze 25% of unused sick leave to be paid at termination. Effective January 1, 2018, the Authority will continue to accrue sick leave and will pay 25% of sick leave to employees having a December 31, 2017 frozen balance at termination. However, going forward, the Authority will no longer pay unused sick leave at termination. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (23) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) Operating Revenues and Expenses Enterprise funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Authority are charges to customers for rents. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Subsidies received from HUD or other grantor agencies, for operating purposes, are recorded as operating revenue in the operating statement while capital grant funds are added to the net position below the nonoperating revenue and expense. These financial statements do not contain material inter-fund revenues and expenses for internal activity. The policy is to eliminate any material inter-fund revenues and expenses for these financial statements. Unearned Revenue The Authority recognizes revenues as earned. Amounts received in advance of the period in which it is earned is recorded as a liability under unearned revenue. Revenue Recognition Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of the Authority are charged to customers for rents, HUD grants received for operations, other operating fund grants and operating miscellaneous income. Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. Capital grant funds are added to the Net Position below the nonoperating revenue and expense. Net Position Classifications Net position is displayed in three components: Net Investment in Capital Assets – This component of net position 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. Restricted Net Position – This component of net position consists of restricted assets when constraints are placed on the asset by creditors (such as debt covenants), grantors, contributors, laws, regulations, etc. Unrestricted Net Position – This component consists of net position that does not meet the definition of “Net Investment in Capital Assets” or “Restricted Net Position.” The Authority first applies restricted resources when an expense is incurred for purposes for which both restricted and unrestricted net position is available. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (24) NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) As noted in the emphasis of matter section of the auditor opinion, the Authority did not provide sufficient and appropriate supporting documentation for significant account balances appearing in the statement of financial position, revenue and expenditures and reconciliation of the schedule of federal expenditures of federal awards. NOTE 2 CASH AND CASH EQUIVALENTS All deposits of the Authority are either insured or collateralized by using the dedicated method whereby all deposits that exceed the federal depository insurance coverage level are collateralized with securities held by the Authority’s agents in these units’ names. At March 31, 2022, the Authority’s deposits had a carrying amount of $8,838,612 and a bank balance of $8,219,467. Of the bank balances held in various financial institutions, $8,219,467 was covered by federal depository insurance and the remainder was covered by collateral held under the dedicated method. NOTE 3 RESTRICTED CASH Restricted cash at March 31, 2022 consisted of the following: Tenant Security Deposits $ 232,877 HUD HAP Equity 1,726,565 Reserve for Replacement 2,031,220 Family Self-Sufficiency Funds 133,948 - Total $ 4,124,610 Restricted cash of the discretely presented component units at December 31, 2021 Consisted of Tenant Security Deposits, Replacement Reserves, Operating Reserves amounts To $2,085,094. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (25) NOTE 4 ACCOUNTS RECEIVABLE Accounts receivable at March 31, 2022 consisted of the following: Tenant Receivables $ 627,189 Allowance for Doubtful Accounts, Tenants (401,489) Due from HUD 674,040 Other Government Receivables 8,418 Development Fees 678,675 Insurance Reimbursement 336,259 - Total $ 1,923,092 Development fees consist of $678,675 that have been earned by the Authority and HEO, Inc. The Taylor Homes projects represent two separate projects: the Taylor Senior Project and the Pointe at Taylor Estates projects. HEO (I) and (II), Inc. have entered into partnerships with Apollo, equity investor, to construct and sell homes and HEO (I) and (II), Inc. are operating as the developer in each of the respective partnerships. HEO (I) and (II) Inc. are single entity for profit LLC subsidiaries of HEO, Inc. The Taylor West LLC represents the project, The New Brooklyn Homes at Robert R. Taylor Estates. HEO (III) Inc. acts as developer in the partnership and constructed 48 units of Low Income Public Housing. HEO (III) Inc. is a single entity for profit LLC subsidiary of HEO, Inc. The Rankin Terrace Project represents the project, Rankin Terrace. HEO Inc. acts as developer in the partnership. Creekwood South LLC represents the project, Creekwood South. The Authority entered into a development agreement with Creekwood South LLC. The agreement provides for developer fee and overhead for services in connection with the development of the project and supervision of construction. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (26) NOTE 5 NOTES AND MORTGAGES RECEIVABLE Notes and mortgage notes receivable at March 31, 2022 consist of the following: Principal Accrued Interest Total 1. Turnkey III Home Sales $ 104,463 $ - $ 104,463 2. New Dawson LTD Partnership 5,976,209 8,732,411 14,708,620 3. Taylor West LLC 986,908 - 986,908 4. Creekwood South LLC 1,776,865 1,290,121 3,066,986 5. Jervay House 289,217 - 289,217 6. Taylor Senior Ground Lease 875,000 904,167 1,779,167 7. Taylor Point Ground Lease 625,000 645,833 1,270,833 8. Taylor West Ground Lease 690,000 349,834 1,039,834 9. Taylor West LLC - CDBG Loan 300,000 48,441 348,441 10. Rankin Terrace Acquisition Ground Lease 1,300,000 - 1,300,000 11. Pearce House 447,056 - 447,056 12. Pearce House - 2nd Loan 18,250 - 18,250 13. Jervay House - HEO Loan 61,031 61,031 - - - Total 13,449,999 11,970,807 25,420,806 Less: Current Portion (2,043) - (2,043) Total Notes and Mortgages Receivable - Noncurrent 13,447,956 11,970,807 25,418,763 Less: Elimination (2,026.337) - (2,026,337) Less: Allowance for Doubtful Accounts (1,576,125) (6,239,578) (7,815,703) Total Notes and Mortgages Receivable - Noncurrent, Net $ 9,845,494 $ 5,731,229 $ 15,576.723 1. The Turnkey III notes consist of several notes receivable from home sales due in varying amounts on a monthly basis with interest rates ranging from 3.25% to 7.64%. There were no new home sales during the year. The Authority received $30,538 in payments from borrowers during the year. 2. This loan is a mortgage loan receivable from the New Dawson Limited Partnership at an interest rate of 4.9% per annum for 40 years compounded annually. The principal due at March 31, 2022 was $5,983,671. This loan will be paid from net cash flow, net project proceeds, and condemnation proceeds, as defined in the respective notes and loan agreements, of the developed projects supported by the loans. No payments are required until maturity on December 31, 2043, at which time the entire unpaid principal and accrued interest are due. This note is collateralized by real estate of the Partnership. The New Dawson Limited Partnership note has accrued interest of $7,803,577 as of March 31, 2022. The Authority has recorded an allowance in the amount of $4,501,202 against the accrued interest portion of this loan. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (27) NOTE 5 NOTES AND MORTGAGES RECEIVABLE (CONTINUED) 3. HEO entered into a loan agreement with Taylor West, LLC to provide for the construction of homes. The agreement states that HEO will advance Taylor West, LLC funds as needed for the construction of homes not to exceed $875,155. On January 24, 2012 the loan agreement was amended to increase the borrowing amount to $986,908. Interest on the loan is 1.31% per annum. The payment of principal and interest are dependent on available cash flow of the property. This loan is scheduled to mature November 16, 2050. The amount of the advances as of March 31, 2022 was $986,908. The Authority recorded a full allowance against this receivable. 4. The Authority entered into an acquisition lease agreement with Creekwood South LLC for 138 units and a portion of the land at Creekwood South is undergoing rehabilitation through a tax credit award from NCHFA. The agreement states Creekwood South LLC will pay $1,800,000 at 7.5% interest to the Authority at maturity on June 30, 2068. The balance as of March 31, 2022 is $1,776,865. The note has accrued interest of $1,290,121 as of March 31, 2022. The Authority has recorded a full allowance against the accrued interest portion of this loan. 5. HEO entered into a loan agreement with Jervay House LLC to provide for the construction of 8 assisted living rental units. The agreement states that HEO will advance Jervay House funds as needed for the construction of rental units not to exceed $289,217 at 0% interest. The loan is scheduled to mature on April 14, 2026. The amount of the advances as of March 31, 2022 was $289,217. The Authority recorded a full allowance against this receivable. 6. The Authority entered into a ground lease agreement with Robert R. Taylor Senior Homes, LLC for a portion of the former Taylor Homes land where 96 units were built. The agreement states that Robert R. Taylor Senior Homes LLC will pay $875,000 secured by a deed of trust and shall bear interest at the rate of 10% per annum. Robert R. Taylor Senior Homes, LLC shall make payments to the Authority to the extent of available net cash flow per the operating agreement. The ground lease is due in full by August 21, 2106. The note is due in full by February 22, 2039. The balance of the loan as of March 31, 2022 was $875,000. The note has accrued interest of $904,167 as of March 31, 2022. The Authority has recorded a full allowance against the accrued interest portion of this loan. 7. The Authority entered into a ground lease agreement with The Pointe at Taylor Estates LLC for a portion of the former Taylor Homes land where 48 units were built. The agreement states that The Pointe at Taylor Estates LLC will pay $625,000 secured by a deed of trust and shall bear interest at the rate of 10% per annum. The Pointe at Taylor Estates, LLC shall make payments to the Authority to the extent of available net cash flow per the operating agreement. The ground lease is due in full by August 21, 2106. The note is due in full by August 22, 2039. The note has accrued interest of $645,833 as of March 31, 2022. The Authority has recorded a full allowance against the accrued interest portion of this loan. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (28) NOTE 5 NOTES AND MORTGAGES RECEIVABLE (CONTINUED) 8. The Authority entered into a ground lease agreement with Taylor West LLC for a portion of the former Taylor Homes land where 48 units were built. The agreement states that Taylor West LLC will pay $690,000 secured by a deed of trust and shall bear interest at the rate of 6.75% per annum. Taylor West LLC shall make payments to the Authority to the extent of available net cash flow per the operating agreement. The loan is due in full by November 16, 2050. The balance of the loan as of March 31, 2022 was $690,000. The note has accrued interest of $349,834 as of March 31, 2022. The Authority has recorded a full allowance against the accrued interest portion of this loan. 9. Taylor West LLC and the Authority entered into a mortgage loan agreement for $300,000 in May 16, 2012 and continuing for 40 years. Payments, including interest at 2% per annum, are due to the extent of net cash flow available. The entire unpaid and outstanding principal and accrued interest is due on May 16, 2042. The balance of the loan as of March 31, 2022 was $300,000 and accrued interest is $48,441. The Authority recorded a full allowance against the principal and allowance against the accrued interest. 10. The Authority entered into a ground lease with Rankin Place Terrace, LLC for the site of the Rankin Terrace project on December 12, 2014. The agreement states that Rankin Place Terrace, LLC will pay $1,300,000 secured by a deed of trust and shall bear interest at 6% per annum. Rankin Place Terrace, LLC shall make payments to the Authority to the extent of 50% of cash flow as defined in the agreement. The lease is due in full on December 31, 2054. The balance of the loan as of March 31, 2022 was $1,300,000. The Authority is not accruing any additional interest income on this loan. 11. HEO entered into a loan agreement on March 10, 2016, with Supportive Housing I, LLC for the construction of an 8 unit apartment community known as Pearce House (the project). The agreement states HEO will advance Supportive Housing I, LLC. Funds as needed for the predevelopment and construction of the project not to exceed $447,056. The loan bears no interest during the construction term and permanent term. No payments of principal are required during the construction term. During the permanent term, payments are required to the extent that Net Cash Flow is available as defined by Supportive Housing I, LLC’s Operating agreement. Any amounts outstanding are due at maturity. The loan will mature 30 years from the conversion date, which means the date the loan converts to a permanent loan but in no event later than March 10, 2018. As of March 31, 2022, the amount of advances was $447,056. The loan receivable and loan payable under Supportive Housing I, LLC has been eliminated at the financial statement level. 12. HEO entered into a second loan agreement on May 23, 2017 with Supportive Housing I, LLC for the construction of an eight unit apartment community known as Pearce House (the project) for $18,250. The loan bears interest of 0%. To the extent of net cash flow is available, principal payments shall be made in accordance with the distribution priorities set forth in the second amendment to the operating agreement. The loan will mature on May 23, 2028. The amount of the advances as of March 31, 2022 was $18,250. The Authority recorded a full allowance against this receivable. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (29) NOTE 5 NOTES AND MORTGAGES RECEIVABLE (CONTINUED) 13. HEO entered into a second loan agreement with Jervay House LLC in the amount of $69,858 on February 22, 2013. The loan bears interest of 0%. Principal and interest in the amount of $6,500 shall be made to the lender, to the extent of available net cash flows, starting May 1, 2013. The loan matures on February 22, 2024. The amount of the advances as of March 31, 2022 was $61,031. The Authority recorded a full allowance against this receivable. 14. The Authority entered into a member loan with Rankin Place Terrace, LLC in the amount of $657,943 on December 31, 2020. The loan is noninterest bearing and no payments of principal will be due before maturity. The maturity date of the loan is expected to be March 1, 2046. The outstanding principal balance as of March 31, 2022 is $657,943. NOTE 6 DUE TO (FROM) OTHER PROGRAMS Due to (from) other programs at March 31, 2022 consisted of the following. The amounts are eliminated in the basic financial statements. Low Rent Public Housing $ 908,752 Low Rent Public Housing (908,752) - Total $ - NOTE 7 CAPITAL ASSETS A summary of the combined capital assets at March 31, 2022 were as follows: Beginning Balances Increases Decreases Transfers Ending Balances Capital Assets Not Being Depreciated 4,196,531 4,196,531 Capital Assets Not Being Depreciated: Buildings and Improvements 88,048,351 6,962,575 95,010,926 Furniture and Equipment 3,052,364 20,137 3,072,501 Total Capital Assets Being Depreciated 91,100,715 98,083,427 Less: Accumulated Depreciation (60,709,855) (2,005,059) - - 62,714,914 Capital Assets, Net $34,587,391 4,977,653 - - $39,565,044 WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (30) NOTE 7 CAPITAL ASSETS (CONTINUED) A summary of the discretely presented component units’ capital assets at December 31, 2019 were as follows: Beginning Balances Increases Decreases Transfers Ending Balances Capital Assets Not Being Depreciated 1,385,116 1,385,116 Capital Assets Not Being Depreciated: Buildings and Improvements 24,094,243 5,800 - - 24,200,043 Furniture and Equipment 395,047 - - - 395,047 Total Capital Assets Being Depreciated 24,489,290 24,495,090 Less: Accumulated Depreciation (5,488,346) (177,288) - - (5,665,634) Capital Assets, Net $20,386,060 (171,488) - - $20,214,572 NOTE 8 UNEARNED REVENUE – GROUND LEASES The Authority entered into three ground lease agreements as the lessor with several Corporations that have constructed rental home projects. The ground leases called for prepaid rent which is being amortized using the straight-line basis over 99 years, the life of the leases, which also requires additional payments of $1 per year. The initial rents were paid in the form of a promissory note secured by a deed of trust. See Note 5. A summary of the deferred revenue at March 31, 2022 is as follows: Lessee Issuance Date Maturity Date Term Robert R. Taylor Senior Homes, LLC 8/22/2007 8/22/2106 99 The Pointe at Taylor Estates, LLC 8/22/2007 8/22/2106 99 Taylor West, LLC 11/16/2010 11/16/2109 99 Total amount prepaid was $2,190,000, and total outstanding balance on March 31, 2022, was $1,889,129. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (31) NOTE 9 LONG-TERM DEBT Long-term debt consists of the following as of March 31, 2022: On October 25, 2006 the Authority entered into a loan with Fannie Mae for capital improvement projects within the Public Housing fund. The Department of HUD has pledged future Capital Fund Program funds for the payment of principal and interest through the 20 year term of the loan. The initial loan amount was $1,084,467 with an interest rate of 4.85% per annum. The monthly payment is $7,120, with the first payment made on January 1, 2008 and the final payment due on September 1, 2026. $ 339,248 North Carolina Housing and Finance Agency entered into a loan agreement with Jervay House LLC to provide for the construction of 8 assisted living rental units. The agreement states that NCHFA will loan Jervay House funds for the construction of rental units in the amount of $508,580 at 0% interest. The loan is scheduled to mature on May 1, 2041 370,106 On June 28, 2017, Supportive Housing I, LLC received a permanent loan in the amount of $412,950 from North Carolina Housing Finance Agency for the conversion of the construction loan for Pearce House. The loan is at 0% interest and the maturity date is July 1, 2037 412,950 On March 10, 2016, Supportive Housing I, LLC received a Community Development Block Grant loan from the City of Wilmington in the amount of $200,000 for the construction of Pearce House. The loan is at 0% interest and the maturity date is June 28, 2047 200,000 Note payable, North Carolina Housing 45 Agency. Loan in the amount of $1,451,345 from North Carolina Housing Financing Agency (the NCHFA Loan). The NCHFA loan is a non -interest bearing loan and is secured by a deed of trust on the project. The NCHFA loan shall be due and payable 30 years from the closing on January 1, 2038. 1,451,345 Note payable, City of Wilmington. On November 19, 2007, the Company entered into a loan agreement with the City of Wilmington in the amount $200,000 (the Home Loan) as part of the Home Investment Partnership Act. The Loan bears interest at a rate of 6% per annum and is secured by a deed of trust on the project. The Loan is due on January 1, 2038. As of March 31, 2022, the loan balance was $200,000 with accrued interest of $227,540 200,000 Mortgage payable, North Carolina Housing Finance Agency (NCHFA) is a state tax credit loan, which is a non-interest bearing and secured by a deed of trust on the Project. The Loan is due on January 1, 2038. 541,568 Mortgage payable, City of Wilmington, subject to a loan agreement dated November 19, 2007 with the City of Wilmington under the Home Investment Partnership Act bearing interest at a rate of 6% per annum and is secured by a deed of trust on the Project. The Loan is due on November 19, 2037. As of March 31, 2022, the loan balance was $300,000 with accrued interest of $322,290. 300,000 3,815,217 Less: Current Portion (87,227) Long-Term Portion $ 3,727,990 WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (32) Future maturities of long-term debt are as follows: Year Ending March 31, Principal Interest 2023 $ 87,227 $ 15,175 2024 90,712 11,690 2025 94,370 8,033 2026 98,209 4,193 2027-2031 137,752 598 2032-2036 84,780 - 2037-2041 ¤ 2,990,643 - 2042-2046 31,524 - 2047-2051 200,000 - Total $3,815,217 $ 39,689 Long-term for the discretely presented component units consists of the following as of March 31, 2021: Creekwood South, LLC has an STC Loan with the North Carolina Housing Finance Agency in an amount of $1,325,143. The loan is noninterest bearing and no payment of principal will be due before maturity. The maturity date of the loan is August 19, 2051. $ 1,325,143 Taylor West, LLC has a Loan with the North Carolina Housing Finance Agency (NCHFA) in an amount of $751,556. The loan is noninterest bearing. The NCHFA loan shall be due and payable on December 31, 2051. 751,556 Taylor West, LLC has a mortgage payable to Housing and Economic Opportunities, Inc. (HEO), an instrumentality of the Authority. The loan in the original amount of $875,115 increased to $986,908 and bears interest at 1.31% per annum. Payments, including interest, are due to the extent that net cash flow is available. The entire unpaid and outstanding principal and accrued interest is due on November 16, 2050. 986,908 Taylor West, LLC has a mortgage payable to the Authority, permanent term beginning May 16, 2012 and continuing for 40 years. Payments including interest at 2% per annum are due to the extent that net cash flow is available. The entire unpaid and outstanding principal and accrued interest is due on May 16, 2042. 300,000 Rankin Place Terrace, LLC (RPT) has a mortgage payable available from First Citizens Bank & Trust Company (the bank) in the amount of $5,768,000. The term of the loan WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (33) provides for monthly payments of interest only at a rate equal to the one- month LIBOR base rate plus 2.45 percent. On December 12, 2016, the loan converted to permanent financing in the amount of $750,000 bearing interest at 5.97% and requires monthly payments of principal and interest of $4,483 until final maturity of December 12, 2032. The loan was evidenced by a note and is collateralized by a deed of trust on the rental property. 619,005 The Company has a STC Loan with the North Carolina Housing Finance Agency in an amount of $396,356. The loan is noninterest bearing and no payment of principal will be due at the end of the term, December 31, 2054. 395,356 On December 23, 2020, the Company entered into a loan with HEO Partners IV, LLC, a managing member of the company. The loan is noninterest bearing and payments are due at the end of the term, December 31, 2054. 657,943 Total 5,035,911 Less: Current Portion (11,049) Long-Term Portion $ 5,024,862 Future maturities of the discretely presented component units are as follows: Year Ending December 31, Principal 2022 $ 12,484 2023 13,254 2024 14,068 2025 14,931 Thereafter 4,970,121 Total $5,035,911 WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (34) NOTE 10 LONG-TERM LIABILITIES Changes in long-term liabilities for the year ended March 31, 2022, are as follows: Balance, March 31,2021 Increases Decreases Balances, March 31, 2022 Amount Due Within One Year Long-Term debt $ 3,898,586 83,369 3,815,217 87,227 Other Noncurrent Liabilities 1,760,402 3,133,329 4,893,731 Net Pension Liability 1,004,133 547,887 456,246 - - Total Long-Term Liabilities 6,663,121 9,165,194 Less: Current Portion of Long-Term Debt (169,392) (87,227) Long-Term Debt Liabilities $ 6,493,729 $ 9,077,967 The Authority received a demand letter from the North Carolina Department of Crime Control and Public Safety (NCDPS) in December 2007 for the reimbursement of funds previously spent by the Authority via a FEMA loan to rebuild damaged units. The amount of the demand is $407,833 which the Authority disputes and believes fully that the Authority fulfilled all parts of the grant agreement. The improvements were to Willow Pond Apartments, which is not directly owned by the Authority, for damages caused by Hurricane Floyd. On August 29, 2013 NCDPS officially closed out the grant. Although the grant has been closed the Authority does not believe this relieves them of their obligation. The Authority is still working with legal counsel to clear this issue, and fully expects to be relieved of this potential; however, this amount is recorded in noncurrent liabilities in the financial statements. The Authority entered into an acquisition lease agreement with Creekwood South LLC for a portion of the land at Creekwood South that was rehabilitated through a tax credit award from NCHFA. Creekwood South financed the acquisition fee of $760,000 in consideration for acquiring the leasehold estate in the property. Of this amount, $458,799 has been recognized as unearned revenue and will be amortized over the life of the lease. The balance as of March 31, 2022 is $435,130. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (35) NOTE 11 DEFINED BENEFIT PENSION PLAN Plan Description The Authority is a participating employer in the statewide Local Governmental Employees’ Retirement System (LGERS), a cost-sharing multiple-employer defined benefit pension plan administered by the State of North Carolina. LGERS’ membership is comprised of general employees. Benefit provisions are established by North Carolina General Statutes 128-27 and may be amended only by the North Carolina General Assembly. Management of the plan is vested in the LGERS Board of Trustees, which consists of 13 members – nine appointed by the Governor, one appointed by the State Senate, one appointed by the State House of Representatives, and the State Treasurer and State Superintendent, who serve as ex- officio members. The Local Governmental Employees’ Retirement System is included in the Comprehensive Annual Financial Report (CAFR) for the state of North Carolina. The state’s CAFR includes financial statements and required supplementary information for LGERS. That report may be obtained by writing to the Office of the State Controller, 1410 Mail Service Center, Raleigh, North Carolina 27699-1410, by calling (919) 981-5454, or at www.osc.nc.gov. Benefits Provided LGERS provides retirement benefits. Retirement benefits are determined as 1.85% of the member’s average final compensation times the member’s years of creditable service. A member’s average final compensation is calculated as the average of a member’s four highest consecutive years of compensation. Plan members are eligible to retire with full retirement benefits at age 65 with five years of creditable service, at age 60 with 25 years of creditable service, or at any age with 30 years of creditable service. Plan members are eligible to retire with partial retirement benefits at age 50 with 20 years of creditable service or at age 60 with five years of creditable service. Contributions Contribution provisions are established by North Carolina General Statute 128-30 and may be amended only by the North Carolina General Assembly. Authority employees are required to contribute 6% of their compensation. Employer contributions are actuarially determined and set annually by the LGERS Board of Trustees. The Authority’s contractually required contribution rate for the year ended March 31, 2022 was 17.70% for general employees, actuarially determined as an amount that, when combined with employee contributions, is expected to finance the costs of benefits earned by employees during the year. Contributions to the pension plan from the Authority were $380,310 for the year ended March 31, 2022. Refunds of Contributions – Authority employees, who have terminated service as a contributing member of LGERS, may file an application for a refund of their contributions. By State law, refunds to members with at least five years of service include 4% interest. State law requires a 60 day waiting period after service termination before the refund may be paid. The acceptance of a refund payment cancels the individual’s right to employer contributions or any other benefit provided by LGERS. Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At March 31, 2022, the Authority reported a liability of $456,245 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021. The total pension liability used to calculate the net pension asset was determined by an actuarial valuation as of December 31, 2020. The total pension liability was then rolled forward to the measurement date of June 30, 202 1 utilizing update procedures incorporating the actuarial assumptions. The Authority’s proportion of the net pension liability was based on a projection of the Authority’s long-term share of future payroll covered by the pension plan, relative WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (36) to the projected future payroll covered by the pension plan of all participating LGERS employers, actuarially determined. At June 30, 2020, the Authority’s proportion was 0.02975%, which was a increase of 0.00165% from its proportion measured as of June 30, 2020. For the year ended March 31, 2022, the Authority recognized pension expense of $379,389. At March 31, 2022, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows of Resources Deferred Inflows of Resources Differences between expected and actual experience $ 145,148 $ - Changes of assumptions 286,638 - Net difference between projected and actual earnings on pension plan investments - 651,837 Changes in proportion and differences between employer contributions and proportionate share of contributions 366,514 6,344 Employer contributions subsequent to the measurement date 369,013 ______ - $ 1,167,313 $ 658,181 $369,013 reported as deferred outflows of resources related to pensions resulting from Authority contributions subsequent to the measurement date will be recognized as a decrease of the net pension liability in the year ended March 31, 2022. Other amounts reported as deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year ended March 30: 2023 $ 200,050 2024 110,321 2025 29,215 2026 (199,466) 2027 - Thereafter - Actuarial Assumptions. The total pension liability in the December 31, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.0 percent Salary increases 3.50 to 8.10 percent, including inflation and productivity factor Investment rate of return 7.00 percent, net of pension plan investment expense, including inflation The plan currently uses mortality tables that vary by age, gender, employee group (i.e. general, law enforcement officer) and health status (i.e. disabled and healthy). The current mortality rates are based on published tables and based on studies that cover significant portions of the U.S. population. The healthy mortality rates also contain a provision to reflect future mortality improvements. The actuarial assumptions used in the December 31, 2020 valuation were based on the results of an actuarial experience study for the period January 1, 2010 through December 31, 2014. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (37) Future ad hoc COLA amounts are not considered to be substantively automatic and are therefore not included in the measurement. The projected long-term investment returns and inflation assumptions are developed through review of current and historical capital markets data, sell-side investment research, consultant whitepapers, and historical performance of investment strategies. Fixed income return projections reflect current yields across the U.S. Treasury yield curve and market expectations of forward yields projected and interpolated for multiple tenors and over multiple year horizons. Global public equity return projections are established through analysis of the equity risk premium and the fixed income return projections. Other asset categories and strategies’ return projections reflect the foregoing and historical data analysis. These projections are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class as of June 30, 202 1 are summarized in the following table: Asset Class Target Allocation Long-term Expected Real Rate of Return Fixed Income 29.0% 1.4% Global Equity 42.0% 5.3% Real Estate 8.0% 4.3% Alternatives 8.0% 8.9% Credit 7.0% 6.0% Inflation Protection 6.0% 4.0% Total 100% The information above is based on 30 year expectations developed with the consulting actuary for the 2020 asset liability and investment policy study for the North Carolina Retirement Systems, including LGERS. The long-term nominal rates of return underlying the real rates of return are arithmetic annualized figures. The real rates of return are calculated from nominal rates by multiplicatively subtracting a long -term inflation assumption of 3.00%. All rates of return and inflation are annualized. Discount rate. The discount rate used to measure the total pension liability was 7.00%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on these assumptions, the pension plan’s fiduciary net position was projected to be available to make all projected future benefit payments of the current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of the Authority’s proportionate share of the net pension asset to changes in the discount rate . The following presents the Authority’s proportionate share of the net pension asset calculated using the discount rate of 7.00 percent, as well as what the Authority’s proportionate share of the net pension asset or net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (6.00 percent) or 1percentage-point higher (8.00 percent) than the current rate: 1% Decrease (5.50%) Discount Rate (6.50%) 1% Increase (7.50%) Employer’s proportionate share of the net pension liability (assets) $1,771,104 $456,245 $(625,808) Pension plan fiduciary net position. Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the State of North Carolina. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (38) Pension Plan Fiduciary Net Position Detailed information about the pension plan’s fiduciary net position is available in the separately issued Comprehensive Annual Financial Report (CAFR) for the state of North Carolina. NOTE 12 RELATED PARTIES The Authority’s Low-Income Public Housing General Fund bank account acts as a common paymaster for all the entities associated with the Authority, and periodically receives reimbursement from them. Certain other expenses are also paid by the Authority’s program and are later reimbursed. At March 31, 2022, receivables and payables between these programs are outlined in Note 6. The Authority operates Glover Plaza, Inc. and HEO, Inc., which are component units of the Authority, and the Authority has a management agreement for any and all properties owned by the Corporations. The employees of the Authority manage the day-to-day operations of the Corporations. As of March 31, 2022 there were no amounts due from Glover Plaza, Inc. or HEO, Inc. NOTE 13 CONDUIT DEBT OBLIGATION Conduit (no-commitment) debt obligations are certain limited-obligation revenue bonds, certificates of participation, or similar debt instruments issued by a state or local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer’s financial reporting entity. Although conduit debt obligations bear the name of the governmental issuer, the issuer has no obligation for such debt beyond the resources provided by a lease or loan with the third party on whose behalf they are issued and is therefore not reported on the balance sheet. On October 12, 2017, the Authority entered into a financing agreement with Cypress Cove of Wilmington, LLC to issue tax-exempt bonds for the acquisition, construction, and development of the Project. The bonds are collateralized by the Project and will mature on October 1, 2022. On October 1, 2019 , the Authority entered into a financing agreement with Market North Housing Partners, LP to issue both tax-exempt and taxable bonds for the acquisition, construction, and development of Market North Apartments. The bonds are collateralized by the Project, and portions of the bonds will mature on April 1, 2022, November 1, 2036, and November 1, 2059. NOTE 14 RISK MANAGEMENT In accordance with G.S. 159-29, the Authority’s finance officer is individually bonded for $50,000. The Authority is exposed to various risks of losses related to torts; theft of, damage to, and destruction of assets; errors and omissions; injuries to employees; and natural disasters. Claims liabilities are reported when it is probable that a loss has occurred and the amount of that loss can be reasonably estimated. The Authority carries commercial insurance against all other risks of loss, including property and general liability insurance. There has been no reduction in insurance coverage in the prior year, and settled claims from these risks have not exceeded commercial insurance coverage in any of the last three fiscal years. The Authority carries all insurance against all risks of loss, including property and general liability insurance through the North Carolina Housing Authority Risk Retention Pool. WILMINGTON HOUSING AUTHORITY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2022 (39) NOTE 15 CONTINGENCIES The Authority is involved in various legal proceedings and litigation arising in the normal course of business. Management does not believe that the settlement of any such claims or litigation will have a material adverse effect on the Authority’s financial position or results of operations. NOTE 16 ECONOMIC DEPENDENCY Both the Authority’s Low Income Public Housing Program and the Housing Choice Voucher Program are economically dependent on annual contributions and grants from HUD. Both programs operated at a loss prior to receiving the contributions and grants. 40 Wilmington Housing Authority Required Supplementary Financial Data March 31, 2022 ____________________________________________________________________________ This section contains additional information required by generally accepted accounting principles. ____________________________________________________________________________ - Schedule of Proportionate Share of the Net Pension Assets – Local Government Employees’ Retirement Systems - Schedule of Contributions – Local Government Employees’ Retirement System 41 Wilmington Housing Authority Authority’s Proportionate Share of Net pension Liability (Asset) Required Supplementary Information Last Six Fiscal Years Local Government Employees’ Retirement System March 31, 2022 2021 2020 2019 2018 2017 2016 Authority’s proportion of net pension liability (asset) % 0.02975% 0.02810% 0.03194% 0.02856% 0.03004% 0.03370% Authority’s proportion of the net pension liability (asset)($) $456,245 $1,004,133 $872,256 $ 677,541 $ 458,928 $ 715,222 Authority’s covered- employee payroll $2,966,486 $2,580,386 $2,664,785 $2,689,849 $2,437,817 $2,405,847 Authority’s proportionate share of the net pension liability (asset) as a percentage of its covered payroll 15.38% 38.91% 32.73% 25.19% 18.83% 29.73% Plan fiduciary net position as a percentage of the total pension liability 84.94% 91.63% 90.86% 91.63% 91.47% 91.47% 42 Wilmington Housing Authority Wilmington Housing Authority’s Contributions Required Supplementary Information Last Five Fiscal Years Local Government Employees’ Retirement System 2022 2021 2020 2019 2018 Contractually required contribution $ 369,013 $ 237,609 $ 386,111 $ 364,792 $ 320,620 Contributions in relation to the contractually required contributions 369,013 237,609 386,111 364,792 320.620 Contribution deficiency (excess) $ - $ - $ - $ - $ - Authority’s covered payroll $2,963274 $2,966,486 $2,580,386 $2,864,785 $2,689,849 Contributions as a percentage of covered payroll 12.45% 8.01% 14.96% 13.69% 11.92% 43 SUPPLEMENTAL INFORMATION ' Wilmington Housing Authority Combining Statement of Net Position March 31, 2022 EHV Housing Component Family Emergency Low Rent Choice Business Blended Mainstream Self- Housing Program Vouchers Activities Unit Vouchers Sufficiency ROSS HOPWA Voucher ASSETS Current Assets: Cash -unrestricted 2,216,213$ 85,109$ 1,220,065$ 898,482$ 25,079$ -$ 16,061$ -$ 56,619$ Cash -restricted 214,734 1,756,404 - 2,087,397 - - - - 66,075 Accounts receivable - HUD 504,341 (161,897) - - - 26,165 106,027 - Accounts receivable - Tenants 75,774 - - 10,468 - - - - Accounts receivable - Other 1,460 2,494 - 266,222 - - - 6,958 Notes receivable - current portion - - 2,043 - - - - - Prepaid expenses 163,176 5,510 - 1,331,899 - - - - Inventories 37,638 - - 16,763 - - - - Inter program due from 908,752 - - - - - - - Total Current 4,122,088 1,687,620 1,222,108 4,611,231 25,079 26,165 122,088 6,958 122,694 Noncurrent: Capital assets 74,740,476 58,217 195,438 24,141,396 - - - - Less: Accumulated depreciation (50,866,950) (48,661) (189,660) (9,570,060) - - - - Total capital assets, net 23,873,526 9,556 5,778 14,571,336 - - - - - Notes receivable 3,076,865 87,982 657,944 Deferred outflow of resources 387,657 185,486 - 45,620 - - - - Total assets 31,460,136$ 1,882,662$ 1,315,868$ 19,886,131$ 25,079$ 26,165$ 122,088$ 6,958$ 122,694$ LIABILITIES Current Liabilities: Accounts payable 510,462$ -$ 195$ 65,705$ -$ 26,165$ 90,503$ 6,932$ 71$ Intergovernmental payables 37,978 - - - - - - Accrued expenses 31,298 11,725 145,220 3,818 88 - 10,713 26 26 Current portion - LTD 69,707 17,520 Tenant security deposits 152,168 - - 80,709 - - - - Unearned revenue 473,821 17,448 - 17,029 - - - - Inter program due to 908,752 - - - - - - - Total current liabilities 2,184,186 29,173 145,415 184,781 88 26,165 101,216 6,958 97 43 Noncurrent Liabilities Long-term debt, net 286,498 - - 3,441,492 - - - - Other non-current liabilities 77,318 39,639 407,833 2,377,115 - - 34,430 - Accrued pension liabilities 157,197 73,207 - 8,023 - - - - Totat non-current liabilities 521,013 112,846 407,833 5,826,630 - - 34,430 - - Total liabilities 2,705,199 142,019 553,248 6,011,411 88 26,165 135,646 6,958 97 Deferred inflow of resources 217,441 105,376 - 25,776 - - - - NET POSITION Net investment in capital assets 23,517,321 9,556 5,778 11,535,102 - - - - Restricted net position - 1,726,565 - 2,006,788 14,544 - - - 66,075 Unrestricted 5,020,175 (100,854) 756,842 307,054 10,447 - (13,558) - 56,522 Total net position 28,537,496$ 1,635,267$ 762,620$ 13,848,944$ 24,991$ -$ (13,558)$ -$ 122,597$ 44 Revitalization Multifamily of Severely Other Housing Distressed Federal Service COCC Pub.Hsng.Program Coordinators elimination Total 79,574$ 31,093$ 75,397$ 10,310$ -$ 4,714,002$ - 4,124,610 37,507 - 512,143 - 86,242 1,047,573 - 1,324,707 - - 2,043 18,511 - 1,519,096 - 54,401 - (908,752) - 1,145,658 31,093 75,397 47,817 (908,752) 12,337,244 3,144,432 - 102,279,959 (2,039,583) - (62,714,914) 1,104,849 - - - - 39,565,045 307,943 9,271,121 2,174,868 15,576,723 522,455 26,095 - 1,167,313 3,080,905$ 9,302,214$ 2,250,265$ 73,912$ (908,752)$ 68,646,325$ 15,748$ -$ -$ 44,481$ -$ 760,262$ - 37,978 69,396 - - 272,310 87,227 - 232,877 - 508,298 (908,752) - 85,144 - - 44,481 (908,752) 1,898,952 45 - 3,727,990 68,267 1,889,129 - 4,893,731 206,837 10,982 - 456,246 275,104 - 1,889,129 10,982 - 9,077,967 360,248 - 1,889,129 55,463 (908,752) 10,976,919 296,385 13,203 - 658,181 1,104,849 - 36,172,606 - - 3,813,972 1,319,423 9,302,214 361,136 5,246 - 17,024,647 2,424,272$ 9,302,214$ 361,136$ 5,246$ -$ 57,011,225$ 46 EHV Housing Component Family Emergency Low Rent Choice Business Blended Mainstream Self- Housing Program Vouchers Activities Unit Vouchers Sufficiency ROSS HOPWA Voucher COCC Operating Revenues: Tenant revenue 1,884,252$ -$ -$ 1,282,277$ -$ -$ -$ -$ -$ -$ Operating subsidy - HUD 8,726,088 12,306,062 - - 174,869 55,629 171,739 169,359 Other revenue 37,656 29,936 4,204 97,170 - - 49,703 2,360,348 10,647,996 12,335,998 4,204 1,379,447 174,869 55,629 171,739 49,703 169,359 2,360,348 Operating Expenses: Administration 1,771,842 796,291 7,782 544,220 5,117 - 0 1,537 9,005 1,501,571 Asset management fee 77,760 - - - - - - - Tenant services 381,047 10,203 2,432 - - 55,629 171,739 0 5,889 Utilities 1,330,084 - - 165,615 - - 0 - 28,319 Maintenance 2,124,755 6,510 - 503,153 - - 0 - 612,389 Protective services 286,198 - - - 0 - 744 Insurance premiums 227,962 6,103 - 203,161 - - - - 38,981 General expense 2,156,577 22,324 2,062 37,833 383 - - 104 67 31,076 Depreciation 1,884,557 4,778 - 674,249 - - - - 115,726 Amortization costs 320 27,557 Housing assistance payment - 10,889,814 - - 144,378 - - 48,062 37,690 10,241,102 11,736,023 12,276 2,155,788 149,878 55,629 171,739 49,703 46,762 2,334,695 406,894 599,975 (8,072) (776,341) 24,991 0 0 - 122,597 25,653 Non-operating revenues (expenses) Extraordinary maintenance 0 Interest on Mortgage (18,765)(217,175)0 Interest income 1,442 565 185 1,212 - - - - 116 Total non-operating revenues (expenses)(17,323)565 185 (215,963) 0 0 0 - - 116 Total operating expenses Net operating income (loss) Wilmington Housing Authority Combining Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended March 31, 2022 Total operating revenues 47 Income (loss) before contributions and transfers 389,571 600,540 (7,887) (992,304) 24,991 0 0 - 122,597 25,769 Capital grants contributions 4,387,783 - - - - - Operating & excess transfer in - 481,528 Operating& excess transfer out (2,337,481) - Change in net position 2,439,873 600,540 (7,887) (510,776) 24,991 0 0 - 122,597 25,769 Net position, beginning 25,921,831 1,221,484 770,507 12,661,194 - - (13,558)- 2,483,687 Adjustments 175,792 (186,757)1,177,189 (85,184) As restated 26,097,623 1,034,727 770,507 13,838,383 0 0 (13,558)0 0 2,398,503 Prior period adjustment 0 0 - 521,337 - - 0 - - Net position, ending 28,537,496$ 1,635,267$ 762,620$ 13,848,944$ 24,991$ -$ (13,558)$ -$ 122,597$ 2,424,272$ 48 Revitalization Multifamily of Severely Other Housing Distressed Federal Service Pub.Hsng.Program Coordinators Elimi TOTAL -$ -$ -$ -$ 3,166,529$ 40,486 - 21,644,232 22,121 - (2,242,934)358,204 0 22,121 40,486 (2,242,934) 25,168,965 (5,281) (1,460,533)3,171,551 (77,760)- 40,486 - 667,425 - 1,524,018 (704,641)2,542,166 - 286,942 - 476,207 7,462 - 2,257,888 - 2,679,310 27,877 - 11,119,944 7,462 0 35,205 (2,242,934) 24,753,328 (7,462) 22,121 5,281 - 415,637 0 (235,940) - 3,520 - - - - (232,420) Wilmington Housing Authority Combining Statement of Revenues, Expenses, and Changes in Net Position For the Year Ended March 31, 2022 49 (7,462) 22,121 5,281 - 183,217 4,387,783 - 481,528 - (2,337,481) (7,462) 22,121 5,281 - 2,715,047 9,309,676 278,750 3,347 - 52,636,918 60,265 (3,382) 1,137,923 9,309,676 339,015 (35)0 53,774,841 - - - - 521,337 9,302,214$ 361,136$ 5,246$ -$ 57,011,225$ 50 Housing Choice Component Family Low Rent Voucher Business Blended Mainstream Self- Program Program Activities Unit Vouchers Sufficiency ROSS HOPWA Cash flows from operating activities: Cash received from tenants 1,854,775$ -$ -$ 1,282,278$ -$ -$ -$ -$ Operating grants and subsidies 8,496,103 12,475,557 - - 191,309 29,464 161,332 - Cash paid to suppliers and employees (7,902,587) (11,719,152) (16,300) (1,431,490) (149,790) (29,464) (81,122) (42,798) Other revenue 36,196 29,795 4,204 64,499 - - - 48,343 Net cash (used) provided by operating activities 2,484,487 786,200 (12,096) (84,713) 41,519 - 80,210 5,545 Cash flows from noncapital financing activities: Prior period adjustments - - 521,337 Due to (from) other funds 91,595 (183,797) - - (16,440) - (62,398) (5,545) Net cash (used) provided by noncapital financing activities 91,595 (183,797)- 521,337 (16,440) 0 (62,398)(5,545) Cash flows from capital and related financing activities: Capital grants 4,387,783 - - - - - - - Operating transfer out (2,337,481) - Ineterest expense - (217,175) Acquisition and construction of capital assets (6,938,323) - - (1) - - - - Long-term liabilities increase/decrease (474,582) (11,802) 14,438 (220,660) - - (1,751) - Net cash used by capital and related financing activities: (5,362,603) (11,802) 14,438 (437,836) - - (1,751) - Cash flows from investing activities: Interest on investments (17,323) 565 185 1,212 - - - - Net decrease in cash and cash equivalent (2,803,844) 591,166 2,527 - 25,079 - 16,061 - Cash and cash equivalents, March 31, 2021 5,234,791 1,250,347 1,217,538 2,985,879 - - - - Cash and cash equivalents, March 31, 2022 2,430,947$ 1,841,513$ 1,220,065$ 2,985,879$ 25,079$ -$ 16,061$ -$ Wilmington Housing Authority Combining Statement of Cash Flows-Non-major Funds Proprietary Funds For the Year Ended March 31, 2022 51 Reconciliation of operating loss to net cash used by operating activities: Operating income (loss)406,894$ 599,975$ (8,072)$ (776,341)$ 24,991$ -$ -$ -$ Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation 1,884,877 4,778 701,806 0 0 0 0 Changes in assets and liabilities: (Increase) decrease in A/R -HUD (229,985) 169,495 - - 16,440 (26,165) (10,407) - (Increase) decrease in A/R -tenant (29,477) - - 1 - - - - (Increase) decrease in defered outflows (71,310) (34,614) - (9,510) - - - - (Increase) decrease in prepaid expenses 6,688 24,220 - - - - - - (Increase) decrease in inventory 12,355 - - - - - - (Increase) decrease in misc receivables (1,460) (141) - (32,671) - - - (1,360) (Increase) decrease in current int. receivable (1,708) - - (Increase) decrease in accounts payable 8,854 - (4,023) 1 - 26,165 90,043 6,879 (Increase) decrease in tenant deposits (2,129) - - 593 - - - - (Increase) decrease in accrued expenses 3,124 543 - 581 88 - 574 26 (Increase) decrease in unearned revenue 447,610 4,712 - (793) - - - - (Increase) decrease in other assets 10,549 35,348 (Increase) decrease in other current liabilities 3,294 (1) - (Increase) decrease in accrued pension liabilities(177,954) (86,629) - (29,151) - - - - Increase (decrease) in deferred inflows 214,265 103,861 - 25,423 - - - - Total Adjustments 2,077,593 186,225 (4,024) 691,628 16,528 - 80,210 5,545 Net cash provided (used) by operating activities 2,484,487$ 786,200$ (12,096)$ (84,713)$ 41,519$ -$ 80,210$ 5,545$ 52 Revitalization Emergency of Severely Other Housing Housing Distressed Federal Service Voucher COCC Pub.Hsng.Program Coordinators Total -$ -$ -$ 3,137,053$ 169,359 1,890,992 - 53,656 23,467,772 (46,665) (2,313,638) (7,462) 4,743 (23,735,725) - - - 22,121 205,158 122,694 (422,646) (7,462) 22,121 58,399 3,074,258 - - 521,337 - 600,235 - (45,003) 378,647 0 600,235 0 0 (45,003)899,984 - - - 4,387,783 (2,337,481) 10 (217,165) - (44,389) - (6,982,713) - (374,645) 7,462 (6,989) (3,093) (1,071,622) - (419,024) 7,462 (6,989) (3,093) (6,221,198) - 116 - (15,245) 122,694 (241,319) - 15,132 10,303 (2,262,201) - 320,893 31,093 60,265 7 11,100,813 122,694$ 79,574$ 31,093$ 75,397$ 10,310$ 8,838,612$ Wilmington Housing Authority Combining Statement of Cash Flows-Non-major Funds Proprietary Funds For the Year Ended March 31, 2022 53 122,597$ 25,653$ (7,462)$ 22,121$ 5,281$ 415,637$ 0 115,726 0 2,707,187 - - - - 13,170 (67,452) - - - (29,476) - (97,338) - (4,281) (217,053) - 9,465 - 40,373 - - - 12,355 - (469,356) - (504,988) (1,708) 71 (26,918) - 44,295 145,367 - - - (1,536) 26 (28,133) - (2,447) (25,618) - - - 451,529 45,897 (325) 2,968 - (243,536) - (10,617) (547,887) - 292,116 - 12,998 648,663 97 (448,299) - - 53,118 2,658,621 122,694$ (422,646)$ (7,462)$ 22,121$ 58,399$ 3,074,258$ 54 The Point at Robert R Taylor HEO, Inc.Taylor Estates Senior Homes Glover Total ASSETS Current Assets: Cash -unrestricted 239,719$ 152,050$ 418,887$ 87,826$ 898,482$ Cash -restricted 69,123 331,074 777,181 910,019 2,087,397 Escrow deposits - - - Accounts receivable - Tenants 880 1,355 1,153 7,080 10,468 Prepaid expenses 6,579 546,401 765,888 13,031 1,331,899 Inventories 1,342 - 15,421 16,763 Other asset 230,874 11,340 24,008 266,222 Total Current 548,517 1,042,220 1,987,117 1,033,377 4,611,231 Noncurrent: Capital assets 2,414,663 5,230,175 12,748,965 3,747,593 24,141,396 Less: Accumulated depreciation (413,813) (1,776,521) (4,419,704) (2,960,022) (9,570,060) Total non-current assets 2,000,850 3,453,654 8,329,261 787,571 14,571,336 Note receivable 657,944 - - 657,944 Deferred outflow of resources 22,073 - 23,547 45,620 Total assets 3,229,384$ 4,495,874$ 10,316,378$ 1,844,495$ 19,886,131$ LIABILITIES Current Liabilities: Accounts payable 3,736$ 12,276$ 32,305$ 17,388$ 65,705$ Accrued expenses 427 261 342 2,788 3,818 Current portion of LT debt 16,956 - 564 17,520 Tenant security deposits 4,393 23,312 35,745 17,259 80,709 Unearned revenue - 1,182 3,740 12,107 17,029 Total current liabilities 25,512 37,031 72,696 49,542 184,781 Noncurrent Liabilities Long-term debt, net 966,100 693,500 1,781,892 3,441,492 Accrued pension liabilities 1,423 - 6,601 8,024 Other non-current liabilities 308,337 1,095,358 971,429 1,991 2,377,115 Totat non-current liabilities 1,275,860 1,788,858 2,753,321 8,592 5,826,631 Total liabilities 1,301,372 1,825,889 2,826,017 58,134 6,011,412 Deferred inflow of resources 12,793 - 12,983 25,776 NET POSITION Net investment in capital assets 1,017,794 2,760,154 6,969,583 787,571 11,535,102 Restricted net position 64,730 307,762 741,536 892,760 2,006,788 Unrestricted 832,695 (397,931) (220,758) 93,047 307,053 Total net position 1,915,219$ 2,669,985$ 7,490,361$ 1,773,378$ 13,848,943$ Wilmington Housing Authority Combining Schedule of Net Position For the Year Ended March 31, 2022 Discrete Blended Component Units 55 The Point at Robert R Taylor HEO, Inc.Taylor Estates Senior Homes Glover TOTAL Operating Revenues: Tenant revenue 120,750$ 361,053$ 637,405$ 163,069$ 1,282,277$ Other revenue 84,440 5,501 7,229 97,170 205,190 366,554 637,405 170,298 1,379,447 Operating Expenses: Administration 119,287 98,798 219,914 106,222 544,221 Utilities 22,691 46,764 59,364 36,796 165,615 Maintenance 40,636 129,311 204,271 128,935 503,153 Protective services - - 0 Insurance premiums 7,252 64,121 114,717 17,071 203,161 General expense 12,329 3,206 309 21,989 37,833 Depreciation 68,489 140,268 342,436 123,056 674,249 Amortization - 10,111 17,446 27,557 270,684 492,579 958,457 434,069 2,155,789 (65,494)(126,025)(321,052)(263,771) (776,342) Non-operating revenues (expenses) Interest income 151 264 512 285 1,212 Interest expense 0 (107,777)(109,398)(217,175) Operating transfer-in 236,844 - 244,684 481,528 Total non-operating revenues (expenses)236,995 (107,513)(108,886)244,969 265,565 Change in net position 171,501 (233,538)(429,938)(18,802)(510,777) Net position, beginning 1,966,028 2,130,455 6,767,772 1,796,939 12,661,194 Adjustments 2,454 8,068 1,166,667 0 1,177,189 As restated 1,968,482 2,138,523 7,934,439 1,796,939 13,838,383 Prior period adjustments (224,764)765,000 (14,140)(4,759)521,337 Net position, ending 1,915,219$ 2,669,985$ 7,490,361$ 1,773,378$ 13,848,943$ Wilmington Housing Authority Discrete Blended Component Units Net operating income (loss) Combining Statement of Revenues, Expenses, and Changes in Net Position - For the Year Ended March 31, 2022 Total operating revenues Total operating expenses 56 Robert R. The Point at Taylor HEO, Inc.Taylor Estates Senior Homes Glover Total Cash flows from operating activities: Cash received from tenants 204,310$ 365,199$ 636,252$ 163,218$ 1,368,979$ Operating grants and subsidies - - - - - Cash paid to suppliers and employees (423,335) (862,114) (1,316,339) (293,886) (2,895,674) Other revenue - - - - - Net cash (used) provided by operating activities (219,025) (496,915) (680,087) (130,668) (1,526,695) Cash flows from noncapital and financing activities: Transfers-in 236,844 - 244,684 481,528 Prior period adjustments (224,764) 765,000 (14,140) (4,759) 521,337 Net cash (used) provided by noncapital financing activities 12,080 765,000 (14,140)239,925 1,002,865 Cash flows from capital and related financing activities: Payment on debt 966,100 693,500 1,359,678 - 3,019,278 Other non-current liabilities 308,337 1,095,358 1,394,207 1,991 2,799,893 Notes receivable - - - Escrow deposit - - - - - Interest expenses - (107,777) (109,398) - (217,175) Acquisition and construction of capital assets (1,067,643) (1,949,430) (1,950,772) (111,533) (5,079,378) Net cash (used) provided by capital and related financing activities: 206,794 (268,349) 693,715 (109,542) 522,618 Cash flows from investing activities: Interest on investments 151 264 512 285 1,212 Net decrease in cash and cash equivalent - - - - - Cash and cash equivalents, March 31, 2021 308,842 483,124 1,196,068 997,845 2,985,879 Cash and cash equivalents, March 31, 2022 308,842$ 483,124$ 1,196,068$ 997,845$ 2,985,879$ Wilmington Housing Authority Combining Statement of Cash Flows - Discrete Blended Component Units For the Year Ended March 31, 2022 57 Robert R. The Point at Taylor HEO, Inc.Taylor EstatesSenior Homes Glover Total Reconciliation of operating loss to net cash provided (used) by operating activities: Operating income (loss)(65,494)$ (126,025)$ (321,052)$ (263,771)$ (776,342)$ Adjustments to reconcile operating loss to net cash used by operating activities: Depreciation 68,489 151,175 359,882 123,056 702,602 Amortization - - - - - Changes in assets and liabilities: (Increase) decrease in tenant rent receivable (880) (1,355) (1,153) (7,080) (10,468) Increase (decrease) in prepaid (6,579) (546,401) (765,888) (13,031) (1,331,899) Increase (decrease) in inventory (1,342) - - (15,421) (16,763) (Increase) decrease in - escrow - - - - - (Increase) decrease in other assets (230,874) (11,340) (24,008) - (266,222) (Increase) decrease in deferred outflows (22,073) - - (23,547) (45,620) Increase (decrease) in accounts payable 3,736 12,276 32,305 17,388 65,705 Increase (decrease) in accrued liabilities 427 261 342 2,788 3,818 Increase (decrease) in pension liability 1,423 - - 6,601 8,024 Increase (decrease) in unearned revenue - 1,182 3,740 12,107 17,029 (Increase) decrease in deferred inflows 12,793 - - 12,983 25,776 Increase (decrease) in customer deposits 4,393 23,312 35,745 17,259 80,709 Increase (decrease) in cuurent portion of LTD 16,956 - - - 16,956 Total Adjustments (153,531) (370,890) (359,035) 133,103 (750,353) Net cash provided (used) by operating activities (219,025)$ (496,915)$ (680,087)$ (130,668)$ (1,526,695)$ For the Year Ended March 31, 2022 Wilmington Housing Authority Statement of Cash Flows - Contd. Discrete Blended Component Units 58 Budget Actual Variance Budget Actual Variance Operating Revenues: Tenant revenue -$ -$ -$ -$ -$ -$ Other revenue - 4,204 - - 2,360,348 - 0 4,204 0 - 2,360,348 - Non-operating revenues - 185 - - 116 - 41,000 4,389 (36,611)2,400,000 2,360,464 (39,536) Operating Expenses: Administration - 7,782 - - 1,501,571 - Tenant services 2,432 5,889 Utilities - - - - 28,319 - Maintenance - - - - 612,389 - Protective services - - - - 744 - Insurance premiums - - - - 38,981 - General expense - 2,062 - - 31,076 - 54,315 12,276 42,039 2,400,000 2,218,969 181,031 (13,315)(7,887)(78,650)0 141,495 (220,567) Contribution (to) from unrestricted net position 13,315 78,650 0 220,567 Revenue over (under) expenditures - (7,887)- - 141,495 - Other items affecting change in net position Revenue over (under) expenses (7,887)141,495 Depreciation 0 (115,726) Change in net position (7,887)$ 25,769$ Total operating expenses Earnings (loss) from operations Non-Subsidized Central Office Cost Cemter Wilmington Housing Authority Statement of Revenues and Expenses, Actual and Budgeted - Business Type Activities For the Year Ended March 31, 2022 Non-Subsidized Investment Fund Total operating revenues 59 Budget Actual Variance Budget Actual Variance Operating Revenues: Tenant revenue -$ -$ -$ -$ -$ -$ Operating subsidy - HUD - 55,629 - - 12,306,062 - Other revenue - - - - 29,936 - 110,472 55,629 (54,843)10,945,643 12,335,998 1,390,355 Non-operating revenues - - - - 565 - 110,472 55,629 (54,843)10,945,643 12,336,563 1,390,355 Operating Expenses: Administration - - - - 796,291 - Tenant services - 55,629 - - 10,203 - Utilities - - - - 0 - Maintenance - - - - 6,510 - Insurance premiums - - - - 6,103 - General expense - - - - 22,324 - Housing assistance payment - - - - 10,889,814 - 110,472 55,629 54,843 12,738,395 11,731,245 1,007,150 - - (109,686)(1,792,752)604,753 383,205 Contribution (to) from unretricted net position - - 109,686 1,792,752 - (383,205) Revenue over (under) expenses - - - - 604,753 - Other items affecting change in net position Revenue over (under) expenses - 604,753 Depreciation - (4,778) Change in net position -$ 599,975$ Total operating expenses Net operating income (loss) Section 8 Housing Choice Vouchers Wilmington Housing Authority Statement of Revenues and Expenses, Actual and Budgeted - Business Type Activities For the Year Ended March 31, 2022 PIH FSS Grant Total operating revenues 60 Budget Actual Variance Operating Revenues: Tenant revenue -$ 1,884,252$ -$ Operating subsidy - HUD - 8,726,088 - Other revenue - 37,656 - - 10,647,996 - Non-operating revenues - 1,442 - 12,283,837 10,649,438 (1,634,399) Operating Expenses: Administration - 1,771,842 - Asset management fee - 77,760 - Tenant services - 381,047 - Utilities - 1,330,084 - Maintenance - 2,124,755 - Insurance premiums - 227,962 - General expense - 2,156,577 - 12,167,357 8,070,027 4,097,330 116,480 2,579,411 (5,731,729) Contribution (to) from unrestricted net position (116,480)5,731,729 Revenue over (under) expenses - 2,579,411 - Other items affecting change in net position Revenue over expenses 2,579,411 Capital grants contributions 4,387,783 Transfer out (2,337,481) Extraordinary maintenance (18,765) Depreciation (1,884,557) Change in net position 2,726,391$ Total operating expenses Earnings (loss) from operations Wilmington Housing Authority Statement of Revenues and Expenses, Actual and Budgeted For the Year Ended March 31, 2022 Conventional Low Rent Public Housing Total operating revenues 61 61 COMPLIANCE SECTION 62 TPO CPA, PLLC P. O. Box 41454 Tel: (919) 791-8148 Raleigh, NC 27629 E-mail:tpocpapllc@gmail.com 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 Independent Auditor’s Report To the Executive Director and Members of the Board of Commissioners Wilmington Housing Authority We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to the financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the financial statements of the business -type activities, and the aggregate discretely presented component units of the Wilmington Housing Authority, as of and for the year ended March 31, 2022 and the related notes to the financial statements, which collectively comprises the Wilmington Housing Authority’s financial statements, and have issued our report thereon dated December 18, 2023. Our report includes a reference to other auditors who audited the financial statements of two blended component units and one discretely presented component unit, as described in our report on the Authority’s financial statements. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. The audits of Creekwood South, LLC, Taylor West, LLC, and Rankin Terrace, LLC were not performed in accordance with Government Auditing Standards. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the Wilmington Housing Authority’s internal control over financial reporting to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Wilmington Housing Authority’s internal control. Accordingly, we do not express an opinion on the effectiveness of Authority’s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, t o prevent or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies and therefore , material weaknesses or significant deficiencies may exist that have not been identified. We did identify certain deficiencies in internal control, described in the accompanying schedule of findings and questioned costs as items 2022-001 and 2022-002 that we consider to be material weaknesses. 63 Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether Wilmington Housing Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Wilmington Housing Authority’s Response to Findings Government Auditing Standards requires the auditor to perform limited procedures on the Authority’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The Authority’s response was not subjected to the auditing procedures applied in the audit of the financial statements and accordingly, we express no opinion on it Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. TPO CPA, PPLC Raleigh, North Carolina December 18, 2023 64 TPO CPA, PLLC P. O. Box 41454 Tel: (919) 791-8148 Raleigh, NC 27629 E-mail:tpocpapllc@gmail.com Report On Compliance with Requirements Applicable to Each Major Federal Program and Internal Control Over Compliance in Accordance with the OMB Uniform Guidance Independent Auditor’s Report To the Executive Director and Members of the Board of Commissioners Wilmington Housing Authority, NC Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the Wilmington Housing Authority, (the Authority) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Authority’s major federal programs for the year ended March 31, 2022. The Authority’s major federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. The Authority’s basic financial statements include the operations of discretely presented component units which may have received federal awards, and which are not included in the schedule of expenditures of federal awards for the year ended March 31, 2022. Separate audits were performed of the component units in accordance with OMB Circular Uniform Grant Guidance, if required. Results of those audits, if any, are separately reported. In our opinion, the Wilmington Housing Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on its major federal program for the year ended March 31, 2022. Basis for Opinion on Each Major Federal Program We conducted an audit of compliance in accordance with auditing standards generally accepted in the United States of America (GAAS); the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States (Government Auditing Standards); and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the Wilmington Housing Authority, and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the Wilmington Housing Authority’s compliance with the compliance requirements referred to above. 65 Responsibilities of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules and provisions of contracts or grant agreements to the Wilmington Housing Authority’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the Wilmington Housing Authority’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material, if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the Wilmington Housing Authority’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform Guidance, we • exercise professional judgment and maintain professional skepticism throughout the audit. • identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the Wilmington Housing Authority’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances. • obtain an understanding of the Wilmington Housing Authority’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the Wilmington Housing Authority’s internal control over compliance. Accordingly, no such opinion is expressed. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control over Compliance Our consideration of internal control over compliance was for the limited purpose described in the Auditor's Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies in internal control over compliance and therefore, material weaknesses or significant deficiencies may exist that were not identified. However, as discussed below, we did identify certain deficiencies in internal control over compliance that we consider to be material weaknesses. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a 66 federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. We consider the deficiencies in internal control over compliance described in the accompanying schedule of findings and questioned costs as items 2022- 001, 2022-002 and 2022-03 to be material weaknesses. A significant deficiency in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. Government Auditing Standards requires the auditor to perform limited procedures on the Wilmington Housing Authority's response to internal control over compliance findings identified in our audit described in the accompanying schedule of findings and questioned costs. The Wilmington Housing Authority’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The Wilmington Housing Authority is responsible for preparing a corrective action plan to address each audit finding included in our auditor's report. The Wilmington Housing Authority's corrective action plan was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on it. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Uniform Guidance. Accordingly, this report is not suitable for any other purpose. TPO CPA, PLLC Raleigh, North Carolina December 18, 2023 67 WILMINGTON HOUSING AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended March 31, 2022 Section I- Summary of Auditor's Results: Financial Statements Type of report the auditor issued on whether the financial statements audited were prepared in accordance to GAAP: Qualified Internal controls over financial reporting: Material weakness(es) identified? Significant deficiency(s) identified Yes No Noncompliance material to financial statements noted? No Federal Awards Internal controls over major federal programs: Material weakness(es) identified? Yes Significant deficiency(s) identified Yes Type of auditors' report issued on compliance for major program(s): Unmodified Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes Identification of major program(s): Assistance Listing Numbers 14.850 14.871 14.872 Name of Federal Program Low Rent Public Housing Housing Choice Voucher Public Housing Capital Fund Program Dollar threshold used to distinguish between Type A and Type B programs $ 750,000. Auditee qualified as a low-risk auditee? No 68 WILMINGTON HOUSING AUTHORITY SCHEDULE OF FINDINGS AND QUESTIONED COSTS Year Ended March 31, 2022 Section II - Financial Statement Findings: Finding 2022-001: Delayed Reporting of Year-End Financial Information Criteria: Organizations expending more than $750,000 in federal awards during a fiscal year are required to have a Single Audit in accordance with the OMB Uniform Guidance, and to submit audited financial statements and Data Collection Form to the Federal Audit Clearinghouse by the earlier of 30 calendar days after receipt of the auditors' reports or nine months after the end of the audit period. Condition: The Organization's audit for the year ended March 31, 2022 was not completed as of November 1, 15, 2023, eleven months past the latest date for the Organization to submit a timely Data Collection Form and audited financial statements to the Federal Audit Clearinghouse. Effect: The resulting effect is the risk of misstatements in the financial statements of the Authority. Cause: The accounting records for the fiscal year ended March 31, 2022, were not available for audit as of the fiscal year ended March 31, 2023. Recommendation: We recommend that management review its policies and procedures, and current staffing in the Finance Department and commit additional resources, if necessary, to enable the Authority to close its fiscal year and make the accounting records available for audit in a timely manner. Views of Responsible Officials: Management agrees with this finding. 69 Finding 2022-002: Material Weakness in Internal Control over Financial Reporting . Criteria: The COSO Report requires adequate internal controls over financial reporting to ensure that transactions are properly recorded and accounted for to permit the preparation of reliable financial statements. Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Condition: Failure to perform reconciliations of significant accounts to the general ledger accounts in a timely or accurate manner. There were material adjusting entries needed to properly record the financial statements including prior period adjustments. The March 31, 2022, unaudited financial statements were submitted prior to completing the March 31, 2021 audited financial statements in July 2023. These delays, provision of certain financial schedules, reconciliations and supporting documentation resulted in untimely financial reporting. Effect: Ineffective and proper oversight in the financial reporting resulting in inaccurate account balances that require numerous significant adjusting entries, and lack of timely financial information and schedule of expenditures of federal awards. Cause: The Authority’s internal controls over financial reporting system does not ensure the timely and accurate reporting of financial transactions. Recommendation: The Authority should evaluate their financial reporting processes, and controls to determine whether additional controls over the preparation of annual financial statements can be implemented to provide reasonable assurance that financial statements are prepared in accordance with US GAAP in a timely manner. We recommend the Authority reviews their current procedures and timeline for reconciliations and year-end close procedures and evaluate the number of staff assigned to various accounting functions to ensure that staffing is appropriate and to have proper checks and balances are in place. Repeat Finding; Yes Views of Responsible Officials: Management agrees with this finding 70 Section III - Federal Awards Findings and Questioned Costs Findings and questioned costs for Federal Awards Yes 2022-003 Federal Agency: U.S. Department of Housing and Urban Development Federal Program: Housing Voucher Cluster CFDA: 14.871 / 14.879 Award Period: 4/1/21 – 3/31/22 Type of Finding: Material Weakness in Internal Control over Compliance Criteria or specific requirement: The PHA must inspect the unit leased to a family at least annually to determine if the unit meets Housing Quality Standards (HQS) and the PHA must conduct quality control re-inspections. The PHA must prepare a unit inspection report (24 CFR sections 982.158 (d) and 982.405 (b)). For units under HAP contract that fail to meet HQS, the PHA must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections. If the owner does not correct the cited HQS deficiencies within the specified correction period, the PHA must stop (abate) HAPs beginning no later than the first of the month following the specified correction period or must terminate the HAP Contract (24 CFR sections 982.158 (d) and 982.404). Condition: Prior audits noted material weaknesses in internal controls over compliance with applicable HUD eligibility, recertification process, and other instances where the Authority did not follow their internal controls designed to ensure compliance with Housing Quality Standards (HQS) requirements. Questioned Costs: Unable to determine. Cause: The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Effect: The PHA is not in compliance with HUD requirements. Repeat Finding: Yes Recommendation: To avoid jeopardizing program funding, we recommend that the Authority design a mid year pre-audit review of program eligibility, certification and or recertification process, and assign a senior personnel and or an outside consultant to review their annual inspection processes to ensure that inspections are performed timely, all inspections are kept in the tenant file, and to ensure follow up inspections are performed timely in accordance with the Administration Plan. Views of Responsible Officials: Management agrees with this finding. 71 Wilmington Housing Authority Corrective Action Plan Year Ended March 31, 2022 Section II – Financial Statement Findings Finding: 2022-001 Name of contact person: Kinteh Darboe, Chief of Financial Operations & Management Corrective Action: The Authority will institute corrective policies and procedures including, use of an outside CPA fee accountant knowledgeable with HUD accounting for prompt financial close and reporting. Proposed Completion Date: Immediately. Finding: 2022-002 Name of contact person: Kinteh Darboe, Chief of Financial Operations & Management Corrective Action: The Authority will evaluate their financial reporting processes, and controls to ensure additional controls over preparation of annual financial statements. Proposed Completion Date: Immediately. Section III – Federal Awards Findings and Questioned Costs Finding: 2022-003 Name of contact person: Kinteh Darboe, Chief of Financial Operations & Management Corrective Action: The Authority will institute corrective policies and procedures including, use of quarterly reviews of tenant files for compliance with applicable HUD compliance requirements prior to audit. Proposed Completion Date: Immediately. 72 Wilmington Housing Authority Summary Schedule of Prior Audit Findings For the Fiscal Year Ended March 31, 2022 Finding: 2021-001 The COSO Report requires adequate internal controls over financial reporting to ensure that transactions are properly recorded and accounted for to permit the preparation of reliable financial statements. Internal controls should be in place to provide reasonable assurance that financial statements are prepared in accordance with accounting principles generally accepted in the United States of America. Status: Repeated. Finding: 2021-002 The Authority did not follow the established procedures in its Housing Choice Voucher Administrative Plan. Status: Resolved. Finding: 2021-003 The Authority not in compliance with HUD recertification compliance requirements. Status: Policies put in place for immediate implementation Finding: 2021-004 The Authority did not follow the established procedures in its Housing Choice Voucher Administrative. Status: Policies put in place for immediate implementation Policies Finding: 2021-005 The Authority failed to perform recertifications in accordance with their stated policies and procedures and HUD regulations and control procedures were not in place. Status: Policies put in place for immediate implementation Federal Assistance Federal Listing Number Expenditures Federal Awards U.S Department of Housing and Urban Development: Low Rent Public Housing 14.850 5,684,884$ Public Housing Capital Fund Program 14.872 7,428,987 Housing Choice Voucher Program 14.871 12,306,062 Public Housing CARES Act Funding 14.PHC 249,404 Continuum of Care Program 14.267 166,202 Multifamily Housing Service Coordinators 14.191 40,486 Mainstream Vouchers 14.879 174,869 PIH Family Self-Sufficiency Program Under ROSS 14.877 55,629 Multi-family HUD Insured - Rental Assistance:14.155 254,669 Resident Opportunity and Supportive Services 14.870 171,739 HCV CARES Act Funding 14.HCC 60,814 Emergency Housing Vouchers 14.EHV 169,359 Total Expenditure of Federal Awards 26,763,104$ Notes to the Schedule of Expenditures of Federal Awards Note 1: Basis of Presentation Note 2: Summary of Significant Accounting Policies The Authority has elected not to use the 10% de minimis indirect rate allowed under Uniform Guidance. Expenditures reported in the SEFA are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. The accompanying schedule of expenditures of federal awards includes the federal grant activity of Wilmington Housing Authority for the year ended March 31,2022.The information in this SEFA is presented in accordance with the requirements of Title 2 US Code of Federal Regulations Part 200,Uniform Administrative Requirements,Cost Principles and Audit Rquirements for Federal Awards.Because the Schedule pesents only a selected portion of the operations of Wilmington Housing Authority,it is not intended to and does not present the financial position, changes in net position or cash flows of WHA. Wilmington Housing Authority Schedule of Expenditures of Federal Awards For the Fiscal Year Ended March 31, 2022 73 Submission Type: 14.PHC Public Housing CARES Act Funding $0 $0 $0 164 Furniture, Equipment & Machinery - Administration $2,059,474 $262,240 165 Leasehold Improvements $47,986,863 162 Buildings $22,634,154 $24,100,043 163 Furniture, Equipment & Machinery - Dwellings $132,807 161 Land $2,059,985 $1,385,116 145 Assets Held for Sale 150 Total Current Assets $4,122,088 $4,822,702 143.1 Allowance for Obsolete Inventories $0 144 Inter Program Due From $908,752 142 Prepaid Expenses and Other Assets $163,176 $62,813 143 Inventories $37,638 132 Investments - Restricted 135 Investments - Restricted for Payment of Current Liability 131 Investments - Unrestricted 129 Accrued Interest Receivable 120 Total Receivables, Net of Allowances for Doubtful Accounts $581,575 $149,728 128 Fraud Recovery 128.1 Allowance for Doubtful Accounts - Fraud 126.2 Allowance for Doubtful Accounts - Other $0 $0 127 Notes, Loans, & Mortgages Receivable - Current 126 Accounts Receivable - Tenants $399,576 $220,056 126.1 Allowance for Doubtful Accounts -Tenants -$323,802 -$74,839 124 Accounts Receivable - Other Government $1,460 125 Accounts Receivable - Miscellaneous $0 $4,511 121 Accounts Receivable - PHA Projects 122 Accounts Receivable - HUD Other Projects $504,341 100 Total Cash $2,430,947 $4,610,161 114 Cash - Tenant Security Deposits $152,168 $61,104 115 Cash - Restricted for Payment of Current Liabilities 112 Cash - Restricted - Modernization and Development 113 Cash - Other Restricted $62,566 $2,023,990 Project Total 6.1 Component Unit - Discretely Presented 111 Cash - Unrestricted $2,216,213 $2,525,067 Housing Authority of the City of Wilmington (NC001) Wilmington, NC Entity Wide Balance Sheet Summary Audited/Sin Fiscal Year End: 03/31/2022 $0 $0 $0 $0 357 Accrued Pension and OPEB Liabilities $157,197 355 Loan Liability - Non Current 356 FASB 5 Liabilities 353 Non-current Liabilities - Other $62,566 $7,719,701 354 Accrued Compensated Absences - Non Current $14,752 351 Long-term Debt, Net of Current - Capital Projects/Mortgage Revenue $286,498 $5,024,862 352 Long-term Debt, Net of Current - Operating Borrowings 310 Total Current Liabilities $2,184,186 $334,283 347 Inter Program - Due To $908,752 348 Loan Liability - Current 345 Other Current Liabilities $10,491 346 Accrued Liabilities - Other 343 Current Portion of Long-term Debt - Capital Projects/Mortgage Revenue $69,707 $11,049 344 Current Portion of Long-term Debt - Operating Borrowings 341 Tenant Security Deposits $152,168 $61,104 342 Unearned Revenue $473,821 $30,513 332 Account Payable - PHA Projects 333 Accounts Payable - Other Government $37,978 325 Accrued Interest Payable $1,440 $11,775 331 Accounts Payable - HUD PHA Programs $0 322 Accrued Compensated Absences - Current Portion $17,811 324 Accrued Contingency Liability 313 Accounts Payable >90 Days Past Due 321 Accrued Wage/Payroll Taxes Payable $12,047 $23,381 311 Bank Overdraft 312 Accounts Payable <= 90 Days $510,462 $185,970 290 Total Assets and Deferred Outflow of Resources $31,460,136 $25,852,746 200 Deferred Outflow of Resources $387,657 180 Total Non-Current Assets $26,950,391 $21,030,044 174 Other Assets $0 176 Investments in Joint Ventures 172 Notes, Loans, & Mortgages Receivable - Non Current - Past Due 173 Grants Receivable - Non Current 171 Notes, Loans and Mortgages Receivable - Non-Current $3,076,865 $815,472 168 Infrastructure 160 Total Capital Assets, Net of Accumulated Depreciation $23,873,526 $20,214,572 166 Accumulated Depreciation -$50,866,950 -$5,665,634 167 Construction in Progress $0 $0 $0 $0 $0 $0 $0 600 Total Liabilities, Deferred Inflows of Resources and Equity - Net $31,460,136 $25,852,746 512.4 Unrestricted Net Position $5,020,175 -$2,404,761 513 Total Equity - Net Assets / Position $28,537,496 $12,773,900 511.4 Restricted Net Position $0 $0 512.3 Unassigned Fund Balance 510.3 Committed Fund Balance 511.3 Assigned Fund Balance 508.4 Net Investment in Capital Assets $23,517,321 $15,178,661 509.3 Restricted Fund Balance 508.3 Nonspendable Fund Balance 400 Deferred Inflow of Resources $217,441 300 Total Liabilities $2,705,199 $13,078,846 350 Total Non-Current Liabilities $521,013 $12,744,563 6.2 Component Unit - Blended 14.866 Revitalization of Severely Distressed Public Housing 14.267 Continuum of Care Program 8 Other Federal Program 1 14.191 Multifamily Housing Service Coordinators 14.879 Mainstream Vouchers $898,482 $31,093 $75,397 $10,310 $25,079 $2,006,688 $80,709 $2,985,879 $31,093 $0 $75,397 $10,310 $25,079 $37,507 $266,222 $13,316 -$2,848 $0 $0 $276,690 $0 $0 $0 $37,507 $0 $1,331,899 $16,763 $0 $4,611,231 $31,093 $0 $75,397 $47,817 $25,079 $2,008,099 $19,733,777 $370,561 $2,028,959 $12,140 $183,298 $1,222,108 $2,043 $2,043 $1,220,065 1 Business Activities $1,220,065 Housing Authority of the City of Wilmington (NC001) Wilmington, NC Entity Wide Balance Sheet Summary 03/31/2022 -$9,570,060 $14,571,336 $0 $0 $0 $0 $0 $657,944 $9,271,121 $2,174,868 $15,229,280 $9,271,121 $0 $2,174,868 $0 $0 $45,620 $26,095 $19,886,131 $9,302,214 $0 $2,250,265 $73,912 $25,079 $65,705 $44,481 $990 $88 $2,828 $80,709 $17,029 $17,520 $184,781 $0 $0 $0 $44,481 $88 $3,441,492 $2,374,647 $1,889,129 $2,468 $8,023 $10,982 $407,833 $145,415 $145,220 $195 $1,315,868 $93,760 $87,982 $5,778 -$189,660 $5,826,630 $0 $0 $1,889,129 $10,982 $0 $6,011,411 $0 $0 $1,889,129 $55,463 $88 $25,776 $13,203 $11,535,102 $0 $0 $0 $0 $0 $2,006,788 $0 $0 $0 $0 $14,544 $307,054 $9,302,214 $0 $361,136 $5,246 $10,447 $13,848,944 $9,302,214 $0 $361,136 $5,246 $24,991 $19,886,131 $9,302,214 $0 $2,250,265 $73,912 $25,079$1,315,868 $756,842 $762,620 $0 $5,778 $553,248 $407,833 14.877 Public Housing Family Self-Sufficiency under ROSS 14.871 Housing Choice Vouchers 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifa 14.870 Resident Opportunity and Supportive Services 14.HCC HCV CARES Act Funding 14.241 Housing Opportunities for Persons with AIDS $85,109 $16,061 $1,756,404 $0 $1,841,513 $0 $16,061 $0 $0 $26,165 $106,027 $6,958 $2,494 $0 $0 $0 $0 $26,165 $2,494 $0 $106,027 $0 $6,958 $5,510 $26,165 $1,849,517 $0 $122,088 $0 $6,958 $58,217 -$48,661 $0 $9,556 $0 $0 $0 $0 $0 $9,556 $0 $0 $0 $0 $185,486 $26,165 $2,044,559 $0 $122,088 $0 $6,958 $26,165 $90,503 $6,932 $6,099 $1,826 $26 $5,626 $8,887 $161,897 $17,448 $26,165 $191,070 $0 $101,216 $0 $6,958 $29,839 $9,800 $34,430 $73,207 $0 $112,846 $0 $34,430 $0 $0 $26,165 $303,916 $0 $135,646 $0 $6,958 $105,376 $0 $9,556 $0 $0 $0 $0 $0 $1,726,565 $0 $0 $0 $0 $0 -$100,854 $0 -$13,558 $0 $0 $0 $1,635,267 $0 -$13,558 $0 $0 $26,165 $2,044,559 $0 $122,088 $0 $6,958 14.EHV Emergency Housing Voucher COCC Subtotal ELIM Total $56,619 $79,574 $7,239,069 $7,239,069 $66,075 $5,915,723 $5,915,723 $293,981 $293,981 $122,694 $79,574 $13,448,773 $0 $13,448,773 $674,040 $674,040 $8,418 $8,418 $1,047,573 $1,320,800 $1,320,800 $632,948 $632,948 -$401,489 -$401,489 $0 $0 $0 $2,043 $2,043 $0 $1,047,573 $2,236,760 $0 $2,236,760 $18,511 $1,581,909 $1,581,909 $54,401 $54,401 $0 $0 $908,752 -$908,752 $0 $122,694 $1,145,658 $18,230,595 -$908,752 $17,321,843 $128,447 $5,581,647 $5,581,647 $2,300,000 $68,767,974 $68,767,974 $132,807 $132,807 $572,109 $3,334,741 $3,334,741 $143,876 $50,342,996 $50,342,996 -$2,039,583 -$68,380,548 -$68,380,548 $0 $1,104,849 $59,779,617 $0 $59,779,617 $307,943 $16,392,195 $16,392,195 $0 $0 $0 $1,412,792 $76,171,812 $0 $76,171,812 $522,455 $1,167,313 $1,167,313 $122,694 $3,080,905 $95,569,720 -$908,752 $94,660,968 $71 $15,748 $946,232 $946,232 $26 $32,209 $76,692 $76,692 $36,862 $72,014 $72,014 $13,215 $13,215 $161,897 $161,897 $37,978 $37,978 $293,981 $293,981 $538,811 $538,811 $98,276 $98,276 $325 $156,036 $156,036 $908,752 -$908,752 $0 $97 $85,144 $3,303,884 -$908,752 $2,395,132 $8,752,852 $8,752,852 $12,483,715 $12,483,715 $68,267 $129,717 $129,717 $206,837 $456,246 $456,246 $0 $275,104 $21,822,530 $0 $21,822,530 $97 $360,248 $25,126,414 -$908,752 $24,217,662 $296,385 $658,181 $658,181 $0 $1,104,849 $51,351,267 $51,351,267 $66,075 $0 $3,813,972 $3,813,972 $56,522 $1,319,423 $14,619,886 $14,619,886 $122,597 $2,424,272 $69,785,125 $0 $69,785,125 $122,694 $3,080,905 $95,569,720 -$908,752 $94,660,968 Submission Type: 14.PHC Public Housing CARES Act Funding $0 $249,404 $249,404 91810 Allocated Overhead 91900 Other $111,994 $102,745 91700 Legal Expense $20,886 $7,897 91800 Travel $862 $2,805 91500 Employee Benefit contributions - Administrative $142,570 $42,934 91600 Office Expenses $352,231 $55,737 91310 Book-keeping Fee $55,989 $11,970 91400 Advertising and Marketing $1,766 $372 91200 Auditing Fees $19,351 $30,077 91300 Management Fee $744,531 $177,863 91100 Administrative Salaries $321,662 $144,905 72000 Investment Income - Restricted 70000 Total Revenue $15,037,221 $2,644,649 71500 Other Revenue $37,656 $110,951 71600 Gain or Loss on Sale of Capital Assets 71310 Cost of Sale of Assets 71400 Fraud Recovery 71200 Mortgage Interest Income 71300 Proceeds from Disposition of Assets Held for Sale 70800 Other Government Grants 71100 Investment Income - Unrestricted $1,442 $700 70700 Total Fee Revenue 70740 Front Line Service Fee 70750 Other Fees 70720 Asset Management Fee 70730 Book Keeping Fee 70610 Capital Grants $4,387,783 70710 Management Fee 70600 HUD PHA Operating Grants $8,726,088 70400 Tenant Revenue - Other $5,235 $13,516 70500 Total Tenant Revenue $1,884,252 $2,532,998 Project Total 6.1 Component Unit - Discretely Presented 70300 Net Tenant Rental Revenue $1,879,017 $2,519,482 Housing Authority of the City of Wilmington (NC001) Wilmington, NC Entity Wide Revenue and Expense Summary Audited/Fiscal Year End: 03/31/2022 $0 $249,404 $249,404 $0 $0 $0 $0 96600 Bad debt - Other 96400 Bad debt - Tenant Rents $266,595 $55,140 96500 Bad debt - Mortgages $6,659 96210 Compensated Absences $51,641 96300 Payments in Lieu of Taxes $40,167 96200 Other General Expenses $1,791,515 96140 All Other Insurance 96100 Total insurance Premiums $227,962 $241,326 96120 Liability Insurance $14,605 96130 Workmen's Compensation $15,103 96110 Property Insurance $198,254 $241,326 95500 Employee Benefit Contributions - Protective Services 95000 Total Protective Services $286,198 $40,957 95200 Protective Services - Other Contract Costs $286,198 $40,957 95300 Protective Services - Other 95100 Protective Services - Labor 94500 Employee Benefit Contributions - Ordinary Maintenance $188,397 $69,016 94000 Total Maintenance $2,124,755 $971,069 94200 Ordinary Maintenance and Operations - Materials and Other $266,357 $184,068 94300 Ordinary Maintenance and Operations Contracts $1,222,309 $477,419 94100 Ordinary Maintenance and Operations - Labor $447,692 $240,566 93800 Other Utilities Expense $41,462 $27,287 93000 Total Utilities $1,330,084 $761,887 93600 Sewer $195,672 $120,178 93700 Employee Benefit Contributions - Utilities 93400 Fuel 93500 Labor 93200 Electricity $849,850 $507,171 93300 Gas $68,246 93100 Water $174,854 $107,251 92400 Tenant Services - Other $71,376 92500 Total Tenant Services $381,047 $0 92200 Relocation Costs $309,671 92300 Employee Benefit Contributions - Tenant Services 92000 Asset Management Fee $77,760 92100 Tenant Services - Salaries 91000 Total Operating - Administrative $1,771,842 $577,305 $0 $0 $249,404 $0 $249,404 $0 $0 $0 $0 11040 Prior Period Adjustments, Equity Transfers and Correction of Errors $0 11050 Changes in Compensated Absence Balance 11020 Required Annual Debt Principal Payments $66,281 $10,491 11030 Beginning Equity $26,097,623 $11,464,567 10000 Excess (Deficiency) of Total Revenue Over (Under) Total Expenses $2,439,873 $1,309,333 10100 Total Other financing Sources (Uses)-$2,337,481 $2,337,481 10093 Transfers between Program and Project - In 10094 Transfers between Project and Program - Out 10091 Inter Project Excess Cash Transfer In 10092 Inter Project Excess Cash Transfer Out 10070 Extraordinary Items, Net Gain/Loss 10080 Special Items (Net Gain/Loss) 10050 Proceeds from Notes, Loans and Bonds 10060 Proceeds from Property Sales 10030 Operating Transfers from/to Primary Government -$2,337,481 $2,337,481 10040 Operating Transfers from/to Component Unit 10010 Operating Transfer In $2,733,376 10020 Operating transfer Out -$2,733,376 90000 Total Expenses $10,259,867 $3,672,797 97700 Debt Principal Payment - Governmental Funds 97800 Dwelling Units Rent Expense 97500 Fraud Losses 97600 Capital Outlays - Governmental Funds 97350 HAP Portability-In 97400 Depreciation Expense $1,884,557 $667,629 97200 Casualty Losses - Non-capitalized 97300 Housing Assistance Payments 97100 Extraordinary Maintenance 97000 Excess of Operating Revenue over Operating Expenses $6,661,911 -$360,519 96900 Total Operating Expenses $8,375,310 $3,005,168 96730 Amortization of Bond Issue Costs $320 $28,611 96700 Total Interest Expense and Amortization Cost $19,085 $357,484 96710 Interest of Mortgage (or Bonds) Payable $18,765 $328,873 96720 Interest on Notes Payable (Short and Long Term) 96000 Total Other General Expenses $2,156,577 $55,140 96800 Severance Expense 0 0 13510 CFFP Debt Service Payments $66,681 13901 Replacement Housing Factor Funds $0 11650 Leasehold Improvements Purchases $3,221,813 11660 Infrastructure Purchases $0 11630 Furniture & Equipment - Dwelling Purchases $1,099,289 11640 Furniture & Equipment - Administrative Purchases $0 11610 Land Purchases $0 11620 Building Purchases $0 11210 Number of Unit Months Leased 7465 2980 11270 Excess Cash $1,042,418 11180 Housing Assistance Payments Equity 11190 Unit Months Available 8988 3156 11100 Changes in Allowance for Doubtful Accounts - Other 11170 Administrative Fee Equity 11080 Changes in Special Term/Severance Benefits Liability 11090 Changes in Allowance for Doubtful Accounts - Dwelling Rents 11060 Changes in Contingent Liability Balance 11070 Changes in Unrecognized Pension Transition Liability 6.2 Component Unit - Blended 14.866 Revitalization of Severely Distressed Public Housing 14.267 Continuum of Care Program 8 Other Federal Program 1 14.191 Multifamily Housing Service Coordinators 14.879 Mainstream Vouchers $1,272,973 $9,304 $1,282,277 $0 $0 $0 $0 $0 $166,202 $40,486 $174,869 $1,212 $97,170 $22,121 $1,380,659 $0 $166,202 $22,121 $40,486 $174,869 $96,093 $3,542 $33,153 $176,540 $5 $22,967 $1,575 $75,819 $9,322 $674 $129,648 $4,620 $3,162 $4,389 $250 $3,954 $185 $0 1 Business Activities Housing Authority of the City of Wilmington (NC001) Wilmington, NC Entity Wide Revenue and Expense Summary 03/31/2022 $544,221 $0 $0 $0 $0 $5,117 $5,496 $6,652 $28,338 $0 $0 $0 $0 $40,486 $0 $91,476 $55,858 $12,870 $5,411 $165,615 $0 $0 $0 $0 $0 $84,146 $135,746 $259,165 $24,096 $503,153 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $196,878 $1,514 $4,403 $366 $203,161 $0 $0 $0 $0 $0 $23,744 $7,462 $2,584 $383 $11,505 $2,062 $0 $0 $0 $0 $2,432 $2,432 $7,782 $37,833 $7,462 $0 $0 $0 $383 $217,175 $27,557 $244,732 $0 $0 $0 $0 $0 $1,698,715 $7,462 $0 $0 $40,486 $5,500 -$318,056 -$7,462 $166,202 $22,121 $0 $169,369 $166,202 $144,378 $674,249 $2,372,964 $7,462 $166,202 $0 $40,486 $149,878 $481,528 $481,528 $0 $0 $0 $0 $0 -$510,777 -$7,462 $0 $22,121 $0 $24,991 $16,956 $0 $0 $0 $0 $0 $13,838,383 $9,309,676 $0 $339,015 -$35 $0 $521,338 $0 $5,281 $0 $770,507 -$7,887 $0 $12,276 -$7,887 $12,276 $0 $2,062 2244 0 192 0 0 426 2125 0 192 0 0 2290 0 14.877 Public Housing Family Self-Sufficiency under ROSS 14.871 Housing Choice Vouchers 14.155 Mortgage Insurance for the Purchase or Refinancing of Existing Multifa 14.870 Resident Opportunity and Supportive Services 14.HCC HCV CARES Act Funding 14.241 Housing Opportunities for Persons with AIDS 14.EHV Emergency Housing Voucher $0 $0 $0 $0 $0 $0 $0 $55,629 $12,306,062 $254,669 $171,739 $60,814 $169,359 $49,703 $565 $29,936 $55,629 $12,336,563 $254,669 $171,739 $60,814 $49,703 $169,359 $244,244 $1,064 $1,386 $12,725 $187,943 $98,415 $465 $110,186 $473 $697 $95,810 $9,416 $2,925 $76,404 $6,922 $0 $838,533 $0 $0 $0 $1,537 $9,005 $26,709 $107,012 $12,557 $45,056 $16,363 $10,203 $19,671 $60,814 $55,629 $10,203 $0 $171,739 $60,814 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,510 $0 $6,510 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $6,103 $0 $6,103 $0 $0 $0 $0 $0 $7,576 $14,748 $104 $67 $0 $22,324 $0 $0 $0 $104 $67 $0 $0 $0 $0 $0 $0 $0 $55,629 $883,673 $0 $171,739 $60,814 $1,641 $9,072 $0 $11,452,890 $254,669 $0 $0 $48,062 $160,287 $10,863,588 $48,062 $37,690 $26,226 $4,778 $55,629 $11,778,265 $0 $171,739 $60,814 $49,703 $46,762 -$254,669 $0 $0 -$254,669 $0 $0 $0 $0 $0 $558,298 $0 $0 $0 $0 $122,597 $0 $0 $0 $0 $0 $0 $0 $0 $1,034,727 $0 -$13,558 $0 $0 $0 $42,242 -$91,298 $1,726,565 0 24840 0 0 0 51 243 0 15705 0 0 0 51 54 COCC Subtotal ELIM Total $5,671,472 $5,671,472 $28,055 $28,055 $0 $5,699,527 $0 $5,699,527 $22,375,321 $22,375,321 $4,387,783 $4,387,783 $1,147,809 $1,147,809 -$1,147,809 $0 $77,760 $77,760 -$77,760 $0 $166,374 $166,374 -$166,374 $0 $850,991 $850,991 -$850,991 $0 $2,242,934 $2,242,934 -$2,242,934 $0 $49,703 $49,703 $116 $4,220 $4,220 $3,954 $3,954 $117,414 $415,498 $415,498 $2,360,464 $35,178,940 -$2,242,934 $32,936,006 $882,884 $1,695,780 $1,695,780 $95,306 $95,306 $1,286,877 -$1,147,809 $139,068 $166,374 -$166,374 $0 $17,748 $20,356 $20,356 $389,875 $711,277 $711,277 $91,701 $674,460 $674,460 $24,214 $71,735 $71,735 $13,374 $20,640 $20,640 $81,775 $514,108 -$146,350 $367,758 $1,501,571 $5,256,913 -$1,460,533 $3,796,380 $77,760 -$77,760 $0 $139,217 $139,217 $5,889 $315,560 $315,560 $64,265 $64,265 $458,601 $458,601 $5,889 $977,643 $0 $977,643 $2,210 $375,791 $375,791 $23,537 $1,436,416 $1,436,416 $68,246 $68,246 $1,196 $329,916 $329,916 $1,376 $75,536 $75,536 $28,319 $2,285,905 $0 $2,285,905 $383,154 $1,155,558 $1,155,558 $24,220 $610,391 $610,391 $38,142 $2,003,545 -$704,641 $1,298,904 $166,873 $448,382 $448,382 $612,389 $4,217,876 -$704,641 $3,513,235 $744 $327,899 $327,899 $744 $327,899 $0 $327,899 $7,284 $643,742 $643,742 $537 $16,656 $16,656 $31,159 $56,768 $56,768 $1 $367 $367 $38,981 $717,533 $0 $717,533 $3,088 $1,835,447 $1,835,447 $27,988 $97,515 $97,515 $40,167 $40,167 $333,240 $333,240 $6,659 $6,659 $31,076 $2,313,028 $0 $2,313,028 $564,813 $564,813 $56,488 $56,488 $0 $621,301 $0 $621,301 $2,218,969 $16,795,858 -$2,242,934 $14,552,924 $141,495 $18,383,082 $0 $18,383,082 $11,259,920 $11,259,920 $26,226 $26,226 $115,726 $3,346,939 $3,346,939 $2,334,695 $31,428,943 -$2,242,934 $29,186,009 $2,733,376 -$2,733,376 $0 -$2,733,376 $2,733,376 $0 $0 $0 $226,859 $226,859 $0 $226,859 $0 $226,859 $25,769 $3,976,856 $0 $3,976,856 $0 $93,728 $93,728 $2,398,503 $65,239,408 $65,239,408 $568,861 $568,861 -$91,298 -$91,298 $1,726,565 $1,726,565 0 40140 40140 0 28801 28801 $1,042,418 $1,042,418 $0 $0 $0 $0 $0 $0 $0 $1,099,289 $1,099,289 $0 $0 $0 $0 $3,221,813 $3,221,813 $0 $0 $0 $0 $66,681 $66,681 $0 $0 $0