W ith respectto the item s tested, the results ofthose procedures disclose
d no m aterialinstancesofn
oncom pliance w ith
the requirem entslisted in the second paragraph ofthisreport. W ith respe
c tto item s notteste
d , nothing cam e to ourattention
thatcause
d us to believe thatthe Agency had notcom plied in allm ater
ialrespects, w ith those re
,
q uirem ents.
W e review e
d the status of findings in the 1995 audit report and found that all of these f
indings w ere effe
c tively
resolved .
This rep
o rtisintende
d forthe information ofthe f
ina
n ce comm ittee
,
ma
n agem ent,and the LegislativeAuditor'soff
ice.
h is restriction is notintende
T
d to limitthe distr
ibution of this report w hich is a m
a tterofpublic re
c ord.
,
J
Baton Rouge,Louisia
na
Septem ber 12, 1996
-
2-
TheA ge
n cy did notcon
si
sctent
ly and timely m onitort
h e i98J
le~ lers foreclosure ProcQ:
lirlgs.
thro
u gh 1985 Singie Fam ily M RB
Thet
~
f
~r
e
h e tim eli
n cya and colle
yr-ars. "J'his ls a repeat ceram icist
Program
't
ction efror~ have slowed i
.
.
nt
h e past
To preventJoss of intereb,t
end to m onitor the stem s
prlnc]pal,m onitoring ofth
and collecdbil;ty of
= lendercollection effort~,
~bm JJd be perform ed
The Agenc
y incurred
.
im pacted them onitoria Vacancy in /J,e Single Fam ily Sectim , which
ng ofthe~e program s.
the foreclosure proceedl
O nc~ thevat,r
a cy Is f
illed
n~s willbe ~m ely.
W e will review Ihe s~m
~ nts during
dLtcussed m any of these s of these Cam n'
our
~1~x~ eudR e-n~ gCm ent. W e have ~ircedy
com
m
ent
s
and
s
ugEe~
t
i
ons
wi
h
t
pleased to discuss them i
el, and wc w ill be
vari
u
o
s
A.
genc
y
per
SOnn
nf
u l ler detailatyour Co
nve
n renCe to perform any atlditiona/sil ly of the~e
m atte
.a-s0oz'to assistyou In impl
ementingt
herecommendat
ions.
W e would like to e
n m n~
nd nmnagem enc for all of th
following arcax:
iscal 1996 in t
he
e im provem e/its m ade durln~ f
.
1.
2.
3_
4
5,
6.
7.
.
8.
Lm proved budse~i
ng accuracy
Holding prec o~ tructie
n c
o
nfere
n ces for I~OM E;m t~lti
ie~.
~ts
f
am
i
l
y
pr
o
praisals wi~ guidelines
,
A llexc~ts funds were retu,
.,ne
d to ~[IUD w ith;n t
h e alt
o ~ed t
i~ e period
Adm in fees Were c~d
u late
c
d underapplicable H U'
D provisions
AJI/'~OM ]~ U'
an.
*,actio
u s were recorded o
Labor r~tm o~ m
n the genera/ledger
uldfam ily construction ~
The Agency ism aking
re reviewed by A~enoy person
nel
attempts t
o reconcile differen
ces with H UD regarding secti
pro~ec~ .
All~i
ngle fam ily ap
-
on 8
W e would like I0 expres
s ourapprz:
,l
.,
~Dn for the c
.
:
z
:
'
Z
~
l
o op~ a
tm
auditby allA gency pe:som ~eL W
n and COUrtesies ext
o r~dcd tO
u~ durin~ our
any of.her m atter thatm ay conc e willbe happy h3 discuss in m ore detailany ofthe above
o pi~
t
ern you,atyour conve
n ience,
or
Sincerely,
POSTL~'
/H W A rr~ & X~TETTE~V
ZLL~
JUN E 30, 1996
Independent A uditors' R eport on Schedule of Fe
d eral
FinancialA ssistance
1
Sche
d ule of Fe
d eralFinancial A ssistance
2
Independent A uditors' R epor
t on the Internal C ontrol Structure
Based on an A uditof The Financia
l St
a tem ents
Perform ed in A ccordance w ith G overnm ent A uditing St
a ndards
Independent A uditors'Repor
t on the Internal ControlStructure
U se
d in A dm inistering Fe
d er
a l Financial A ssist
a nce Progr
ams
3 -4
5 -8
Indep
e ndent A uditors' R eport on C om pliance w ith Law s and
Regulations Base
d on an A uditof Fina
n cia
l St
a tem ents
Per
f orm ed in A ccordance w ith G overnm ent A uditing Standards
Single A uditReporton Com pliance w ith the G eneral Requirem ents
Applicable to M ajorand Non-M ajorFe
d eralFinancialAssistance
Progr
ams
10
-
11
Independent A uditors' R epor
t on C om pliance w ith Specif
ic
Re
q uirementsApplicable to M ajorFe
d er
a lFinancialAssist
ance
Progr
ams
12 - 13
Indep
e ndent A uditors'Repor
t on Com pliance w ith Specif
ic
Re
q uirementsApplicable to Non-M ajorFe
d er
a lFinancial
A ssist
a nc
e Program Transactions
Sche
d ule of Reportable Conditions
14
15
I~m tlc(h w aitc & N ct|crvillc
,
/1Pio/(,,%~l(llla]AC(Oltlllill~,('
o17)o1~11[oll
C ER] IFIED PU BLIC AC C O U N TA N] S
8550 U N ITED PLAZA BLVD ., SU I]E 1001 ~ BATO N RO U G E, LO UISIANA 70809 ~ TELEPHO NE (504)922-4600 ~ FAX (504)922-46
To the Board of Com m issioners
Louisiana H ousing Finance Agency
Baton R ouge,L
o uisia
na
W e have audited the f
ina
n cialstatem ents of the L
o uisia
n a H ousing Fina
n ce A ge
ncy (the Agency)as ofand forthe
year ended June 30, 1996, a
n d have issue
d our report thereon date
d Septem ber 12 1996. W e have also audite
d the
,
complia
n ce ofthe L
o uisiana Housing Fina
n ce Agency with requirementsapplicable to major federalf
ina
n cia
l assista
n ce
programs a
n d have issue
d our repor
t thereon date
d Septem ber 12, 1996.
W e conducte
d our audits in accordance w ith genera
l ly accepte
d auditing standards;G overnmentAuditing Standards
,
issued by the Com ptrollerG enera
l of the U nite
d St
a tes;a
n d O ff
ice of M anag
em entand BudgetC ircular A -128, Audits of
State an
d Local G overnm ents. Those standards a
n d O M B Circular A -128 re
q uire thatw e plan a
n d perform the auditto
obtain reasonable assura
n ce aboutw hether the f
ina
n cialst
a tem ent
s are free of materialm isst
a tem entand aboutw hether the
A gency com plie
d w ith law s a
n d regulations,
noncomplia
n ce with which would be materialto a major fe
d eralf
ina
n cia
l
assista
n ce program .
In pla
n ning and perfor
m ing ouraudit
s for the ye
a rende
d June 30, 1996,w e considere
d the inter
n alcontrolstructure
of the A gency, in order to determ ine our auditing proce
d ures for the purpose of expressing our opinions on the f
ina
n cial
st
a tem entsofthe A gency and on the com plia
n ce ofthe Agency w ith requirem entsapplicable t
om
a jorprograms,a
n d to repor
t
on the internalcontrolstr
u cture in ac
c ordanc
e w ith O M B CircularA 128. T
h is repor
t addresses ourconsideration ofinter
n al
-
controlstr
u cture p
o licie
s a
n d proce
d ures releva
n tto com plia
n ce w ith requirem ent
s applicable to fe
d era
l f
ina
n cialassistance
program
s . W e have addresse
d interna
l contr
o l str
u cture p
o licie
s and proce
d ure
s relev
n t to our audit of the f
a
ina
n cial
statem ents in a separate reportdate
d Septem b
e r 12, 1996.
h e managem ent of the A gency is responsible for establishing a
T
n d maint
a ining a
n inter
na
l control str
u cture. In
fulf
illing thisresp
o nsibility, estimatesa
n djudgment
s by managementare re
q uire
d to asse
s stheexpecte
d benef
itsa
n d relate
d
costs of inter
na
l control str
u cture p
o licies a
n d proce
d ures.
-
The objectivesofa
n inter
na
l controlstr
u cture are to provide
5-
DO NALDSO NVILLE ~G ONZALES ~ NEW O RLEANS ~ ST. FRANCISVILLE
ASSOCIATED O FFICES IN PRINCIPAL CITIES O F THE UNITED STATES
m anagem entw ith reasonable,butnotabsolute,assurance thata
s sets are safeguarded againstloss from unauthorized use or
disposition,thattra
ns
a ctions are execute
d in accorda
n ce w ith m anagem enl's authorization and re
c orde
d properly to perm it
the preparation off
ina
n cialstatem entsin accordance w ith generally accepted accounting pr
inciples,a
n d thatfe
d eralfina
n cial
assistance program sare managed in compliancewith applicablelawsand regulations. Be
c ause ofinherentlimitationsin a
ny
internalcontrolstructure,errors,irregularities,or i
n stances of noncom plia
n ce m ay nevertheless occur and notbe dete
c ted.
Also,proje
c tion of a
n y evaluation of the str
u ctur
e to future per
iods is subje
c tto the risk thatproce
d ures may become
inadequate because ofcha
n ges in conditionsorthatthe effe
c tivenessofthe design a
n d operation ofpoliciesa
n d proce
d ure
s
m ay deteriorate.
For the purpose of this repor
t ,w e have classif
ie
d the signif
ica
n tinternalcontrolstructure policies and proce
d ures
use
d in adm inistering fe
d eral f
ina
n cia
la
s sistance program s into the follow ing categories:
A ccounting Applcatons
Spe
c if
ic Re
q uirem ent~
G eneralRe
q uirem ents
a.
b.
c.
d,
a.
a.
b.
c.
Ca
s h m anagem ent
Politicalactivity
Civilr
ights
d.
e.
f.
g.
Davis Bacon Act
Fe
d eralFinancia
l Reports
A llowable cost
s /costs
pr
i nciple
Dr
u g-free W orkplace
h.
A dlnlnistrative requirem ents
Billings
Cash re
c eipts
Ca
s h disbursem ents
G eneralle
d ger
b.
c.
d.
e.
M onitoring
subre
c ipia
n ts
Repor
t ing
Claim
s for adva
n ce
s
n d reim bursem ents
a
A llocation of
adm inistrative cost
s
M onitoring of contract
rentplus utility
l low a
a
n ces
f.
g.
h.
i.
Eligibility
M atching,levelof effor
t ,or
earm arking
Types of services allow e
d or
una
l low e
d
Retention ofrevolving loa
ns
-
6-
For allofthe internalcontrolstr
u ctur
e categories listed above w e obtained an understanding ofthe de
s ign ofrelevant
,
policiesand procedures and determ ined w hether they have been placed in operation,and w e assesse
d controlrisk.
D uring the year ended June 30, 1996,the Louisia
n a H ousing Fina
n ce A gency expende
d ninety ninepercentofitstotal
-
fe
d eralf
ina
n ciala
s sistanceundermajorfe
d eralf
ina
n ciala
s sistanceprograms
.
W e perform ed tests of controls, as required by O M B C ircular A -128 to evaluate the effectiveness of the design and
,
operation ofinterna
l controlstr
u cture policie
s a
n d procedures thatw e considered rel
eva
n tto preventing ordetecting m
a terial
noncom plia
n ce w ith specif
ic requirem ents, general requirem ents, and requirem ents governing claim s for adva
n ces a
nd
reim bursem ent
sa
n d am ounts claim ed orused form atching thatare applicable to ea
ch ofthem
a jorfe
d eralf
ina
n eia
l assistance
program s ofthe Louisia
n a H ousing Fina
n ce Agency w hich a
r e identif
ie
d in the accom panyi
n g Sche
d ule ofFe
d eralFina
n cia
l
A ssistance. O ur proce
d ures w ere le
s s in scope tha
n w ould be ne
c essary to rend
er a
n opinion on these interna
l control
structure policiesa
n d proce
d ure
s . A ccordingly, w e do notexpress such a
n opinion.
W e noted a certain m
a tterinvolving the interna
l eontrolstructure a
n d its operation thatw e consider to be a reportable
condition under standa
r ds establishe
d by the A m er
i ca
n Instit
u te of Certif
ie
d P
ublic A ccountant
s . Reportable conditions
involve m
a tters com ing to our attention relating to significa
n tdef
iciencie
s in the desig
n or operation of the inter
n alcontrol
str
u cturethat,inourjudgma
n t,couldadversely affecttheAgency'sabilityto adm
i nisterfe
d era
lf
ina
n ciala
s sista
n
ce program
s
in accorda
n ce w ith applicable law s a
n d regulations. The reportable condition noted is describe
d in the accom pa
n yi
ng
Sche
d ule of Reportable Conditions.
A m
a teria
l w eakne
s s is a reportable condition in w hich the design or operation of one or m ore of the inter
na
l control
structure elem ents doe
s notre
d uce to a relatively low levelthe risk thatnoncom plia
n ce w ith law s a
n d regulationsthatw ould
be m ateria
l to a fe
d era
l f
ina
n cia
la
s sistance program m
a y occur a
n d notbe dete
c te
d w ithin a tim ely period by em ployees in
the norm
a lcourse ofperform ing their assig
n e
d functions.
O ur consideration of the inter
na
l control structure policies a
n d proce
d ures use
d in adm inister
ing fe
d eral f
ina
n cial
assista
n ce w ould notne
c essarily disclose a
l lm atters in the interna
l controlstructure thatm
i ghtbe repor
table conditionsa
n d,
accordingly,w ould notne
c ess
a rily disclose a
l lreportable eonditi
n ns thatare also considere
d to be m ateria
l w eakne
s ses a
s
def
ine
d ab
o ve. H ow ever, w e b
e lieve thatthe reportable condition de
s cribed i
n the accompa
n ying schedule is nota m ater
ia
l
w eaknesse
s.
-
7-
W e also noted other m atters involving the internalcontrolstructure and its operation thatw e did not consider to be
reportable conditions,as define
d above. These m
a tters have been com m unicate
d to the A gency in a separate letter dated
Septem b
e r 12, 1996.
W e review e
d the statusofreportable conditionsin the 1995 auditreportand found thatallofthese reportableconditions
w ere effectively resolved.
h is repor
T
t is intended forthe inform ation ofthe f
inance com m ittee, m anagem ent,a
n d the LegislativeA uditor'sO ff
ice.
H ow ever,this report is a m
a tterofpublie re
c ord a
n d its distribution is notlim ite
d
.
Baton R ouge,Louisiana
Septem ber 12, 1996
RF~.FIVEr
LEftS ,'~] ,ty ;,
Tr
ip
960CT 10 PII ~:I1~
JUNE 30,1996
IX)s|lcthw ait~c & N cllcrvillc
A I'ro~'.~l'
onalA~tolcntil~ ('
oli)oraltolt
C ERq IFJED PU BLIC AC C O UN TA N TS
8550 U N IIED PLAZA BLVD , SU ITE 1001 ~ BATO N RO UG E, LO UISIANA 70809 ~ TELEPHONE (504)922-4600 ~ FAX (504)922-4611
G
O
To the Board of Com missioners
Louisiana H ousing Fina
n ce A gency
Baton Rouge,Louisia
na
W ehaveaudited thef
ina
n cialstatementsoftheLouisia
n aHousing Fina
n ceAgency (theAgency)asofa
n d fortheyear
ende
d June 30, 1996,and have issue
d our reportthereon date
d Septem ber 12 1996.
,
W e have applie
d proce
d ures to testthe Agency's com plia
nc
e w ith the follow ing requirem ents applicable to e
a ch ofits
fe
d eralf
ina
n cialassistanceprogram s, w hich are identif
ie
d in the Sche
d ule ofFe
d era
l FinancialA ssistanc
e , forthe ye
a rende
d
June 30, 1996:
a.
b.
e.
d.
e.
f.
g.
h.
Cash m anagem ent
Politicalactivity
Civilf
ights
D avis Bacon A ct
Fe
d era
l f
inancialreport
s
A llow able costs/costprinciples
D rug-free w orkplace
A dm
i nistrative requirem ent
s
O ur proce
d ures w ere lim ited to the applicable proce
d ures describe
d in the O f
i ce of M a
n agem ent a
n d Budget's
Compliance SupplementforSingleAudits of Stateand LocalGovernments Ourproce
d ure
s w ere substantia
l ly less in scope
.
tha
n a
n audit,theobjectiveofwhich istheexpression ofan opinion on theLouisia
n aHousing Fina
n ce A geney's com plia
n ce
w ith the re
q uirem ents liste
d in the pre
ce
d ing pa
r agraph. A ccordingly,w e do notexpress such an opinion
.
-
10 -
DO NALDSO NVILLE * GO NZALES ~ NEW O RLEANS ~ ST. FRANCISVI[LE
ASSOCIATED O FFICES IN PRINCIPAL CITIES O F THE UNITED S~ATES
P ostlcthw aitc & N ct|crvillc
,
/fl'ro~,.~~mlmlAc~ountm~,C'
opT~olatlon
C ERTIFIED PU BLIC AC C O U NTA NqS
8550 U N IT ED PLAZA BLVD ., SU llE 1001 ~ BATO N RO U G E, LO UISIANA 70808 ~ TELEPHONE (504)922-4600 ~ FAX (804)922-4611
To the Board of Comm issioners
Louisiana H ousing Finance A gency
Baton Rouge,L
o uisiana
W e have audited the f
ina
n cialstatem ents of the Louisia
n a H ousing Fina
n ce A gency for th
e year ende
d June 30, 1996,
and have issue
d our report thereon date
d Septem ber 12, 1996. These f
ina
n cia
l statem ents are the responsibility of the
o uisia
L
n a H ousing Fina
n ce Agency m anagem ent. O ur responsibility is to express a
n opinion on these f
ina
n cialstatem ents
based on our audit.
W e conducte
d our audit in accordance w ith generally accepte
d auditing standards G overnm entA uditing Standards
,
,
issue
d by the Com ptroller G eneral of the U nite
d St
a tes, a
n d the provisions of O ff
ice of M a
n agem enta
n d BudgetCircular
A-128, "Audits of State an
d LocalGovernm
e nts". T
h ose standardsrequire thatwe pla
n and perform the audit1o obt
a in
reasonable assura
n ce aboutw hether the f
ina
n cialst
a tem ents are free of m aterialm i
sst
a tem ent. A n auditincludes exam ining,
on a testbasis,evidence supporting the am ountsand disclosuresin the fi
na
n cialst
a tem ents. An auditalso includesassessing
the accounting principles use
d and signif
ica
n testimates m ade by managem ent,as w ell as evaluating the overall f
ina
n cia
l
st
a tem entpre
s entation. W e believe thatour auditprovide
s a reasonable basis for our opinion.
O ur audit w as conducte
d for the purpose of form ing a
n opinion on the ba
s ic f
inancial st
a tem ent
s of the Louisia
na
H ousing Fina
n ce A gency taken a
s a w hole. T
h e accompa
n ying Sche
d uleofFedera
l Fina
n cialAssistance(the Sche
d ule)is
presente
d for purposes of additionalana
l ysis a
n d is nota require
d part of the ba
s ic f
inancialstatem ents. T
h e inform ation
in the Sche
d ule ha
s been subjecte
d to theauditing proce
d ure
s applied in the auditofthebasic f
ina
n cial sta tem ents an d, in
our opinion,is fairly presente
d in allm ater
ialrespect
s in relation to the ba
s ic f
ina
n cialst
a tem ents taken a
s a w hole.
Baton Rouge, L
o uisia
na
Septem ber 12, 1996
-
1-
DO NALDSO NVILLE * GO NZALES * NEW O RLEANS ~ ST FRANCISVILLE
ASSO CIATED O FFICES IN PRINCIPALCITIES O F THE UNITED STATES
P ostlcf
l nvaitc & N c|lcrvillc
t'tof
i,~stomllAc~o.nthg ('r7~oration
C ERTIFIED PU BLIC AC C O U N]A NTS
8550 U N IIED PLAZA BLVD ., SU ITE 1001 ~ BATO N RO U G E, LO UISIANA 70809 ~ TELEPHONE (504)922-4600 ~ FAX (504)922 4611
To the Board of Com m issioners
Louisiana H ousing Finance Agency
Baton Rouge,Louisia
na
W ehaveaudited thef
ina
n cialstatementsoftheLouisia
n aHousing FinanceAgency (theAgency)asofand fortheyear
ended June 30, 1996, a
n d have issued our report thereon dated Septem ber 12, 1996.
W e have also audited the com pliance ofthe Louisia
n a H ousing Fina
n ce Agency w ith th
e requirem entsgoverning types
of services allow e
d or unallow e
d ;repor
t ing;the m onitoring of subrecipients;claim s f
or adva
n ce
s and reim bursem ents;the
allocation of adm
i nistrative costs;the m onitor
ing of contractrentplus utility allow
loans; a
n d m atching, level of effor
t,
n ces;eligibility;retention of revolving
a
or e
a rmarking thatare applicable to e
a ch of its major fe
d eralf
ina
n ciala
s sistance
program
s ,w hich are identif
ie
d in the accom pa
n ying sche
d ule of FederalFina
n cialA ssistance,for the year ende
d June 30,
1996. The m anagem ent of the Agency is re
s ponsible for the A gency's com plia
n ce w ith those requirem ents.
O ur
responsibility is to express an opinion on com plia
n ce w ith those requirem ents base
d o
n our audit.
W e conducte
d our auditin accorda
n ce w ith generally acc
e pted auditing standards,
issued by the Com ptrollerG eneralof the U nite
d States, a
n d Of
i ce of M a
n agem enta
n d BudgetCircularA -128, "A udits of
State a
ndL
o calG overnm ent
s . " Those standards and O M B Circula
r A -128 re
q uire thatw e pla
n a
n d perform the auditto
obt
a in reasonable assura
n ce aboutw hether m
a ter
ialnoncom plia
nc
e w ith the requirem ents referre
d to ab
o ve occurred. An
auditincludesexam ining,on a testba
s is, evidence ab
o utthe Agency's com plia
n ce w ith those re
q uirem ents W e believe that
.
our auditprovides a reasonable basis for our opinion.
In our opinion, the L
o uisiana H ousing Fina
n ce A gency com plie
d
,
in all m aterial respects, w ith the requirem ents
referre
d to in thesecond paragraph thatare applicableto each ofitsm
a jorfe
d era
lf
ina
n ciala
s sistanceprogram
s for the year
ended June 30. 1996.
-
12 -
DO NALDSO NVIELE ~G ONZALES ~ NEW O RLEANS ~ ST FRANCISVILLE
ASSOCIATED O FFICES IN PRINCIPAL CITIES O F THE UNITED STATES
W e review ed the statusoff
indingsreporte
d in the 1995 auditrepor
t and found thatallofthese f
indingsw ere effectively
resolve
d .
This repor
t isintended forthe inform ation ofthe f
ina
n ce com m ittee
,
m anagem ent,and the LegislativeAuditor'sO ff
ice
H ow ever,this repor
t is a matter ofpublic record a
n d its distribution is notlim ite
d .
Baton R ouge, Louisia
na
Septem ber 12, 1996
-
13 -
I'ostlcth w aitc & N cttcrvillc
A ]'r~/e~ionalA~counting ('~l,oratmn
C ER7 IFIED PU BLIC AC C O U NTA N TS
8550 U N n ED PLAZA BLVD ., SU IfE 1001 ~ BATO N RO U G E, LO UISIANA 70809 ~ TELEPHONE (504)922-4600 ~ FAX (504)922-4611
To the Board of Com m issioners
Louisiana H ousing Finance Agency
Baton Rouge,Louisiana
W e have audited the f
ina
n cialstatem ents of the Louisia
n a H ousing Fi
na
n ce Agency (the Agency),as ofa
n d for the
year ended June 30, 1996, and have issued our reportthereon date
d Septem ber 12, 1996.
In connection w ith our auditof the f
ina
n cialstatem ents of the A gency
,
controlstructure use
d to adm
i nisterfe
d eral f
ina
n cia
la
s sistanc
e program s
,
C ircular A -128, "A udit
s of St
a te a
n d Loca
l G overnm ent
s"
,
n d w ith our consideration of the Agency's
a
s required by O ff
a
ice ofM a
n agem enta
n d Budget
we sele
c te
d c
e rtain tra
n sactionsapplicableto certain nonrnajor
fe
d eralf
ina
n ciala
s sistance progr
am
s for the year ende
d June 30 1996.
,
A s re
q uire
d by O M B CircularA -128, w e have perform ed auditing proce
d ures to testcom plia
n ce w ith the re
q uirem ent
s
governing types of services allow e
d or unaUow e
d , eligibility,a
n d reporting thatare applicable to those tra
n sactions. O ur
procedures w ere substantially less in scope than a
n audit,
the objective ofwhich is the expression ofan opinion on the
A gency's com plia
n ce w ith these re
q uirem ents. A ccordingly,w e do notexpress such an opinion
.
W ith respectto the item s te
s ted, the result
s ofthose proce
d ure
s disclose
d no materia
l instancesofnoncom plia
n ce w ith
the re
q uirem ent
s listed in the prece
d ing paragraph. W ith respe
c t to items not te
s te
d , nothing cam e to our attention that
cause
d us to b
e lieve thatthe A gency had notcom plie
d , in a
l lm
a terialrespect
s , w ith those re
q uirem ents.
W e review ed the st
a tusoff
indingsrepor
te
d in the 1995 auditr
epor
t and found thatallofthese f
indingsw ere effectively
resolve
d .
This repor
t is intende
d forthe inform
a tion ofthe fm
'a
n ce com m itt
ee,m anagem ent,and the LegislativeA uditor'sO ff
ice.
h is restr
T
i ction is notintende
d to lim itthe distr
ibution ofthis
rep
o r
t ,w hich is a m
a tterofpublic record
Baton Rouge,L
o uisiana
Septem b
e r 12, 1996
-
14 -
DO NALDSO NVILtE ~ GO NZALES ~ NEW O RLEANS ~ ST FRANCISVILL[
ASSO CIATED O FFICES IN PRINCIPALCI11ES O F THE UNITED STATES
A
d ger and w ould nothave been
d posting error could have occurred on the general le
etected on a tim ely basis.
Re
c om m endation:
The A gency should re
c oncile the m ortgage loan subsidiary le
d gerto th
e generalle
d ger
on
s is or change the source docum ent w hich is use
d to prepare the
i a m onthly ba
nform ation to post1o the generalle
d ger.
R esponse:
h e Agency w illim plem entthe auditors're
T
c om m endation.
-
15 -
FederalG rantor
Pass-Through
G ra
n tor Program
Title
Fe
d eral
CFD A
N um ber
.
Expenses
U . S.D epartm ent
of H U D
Section 8
Program *
14.156
$ 2.272.293
14.241
103.617
14.238
42.480
14.239
1,695,120 (o
Suppor
t ive H ousing D em onstration Program
Supportive H ousing D em onstration Program
H om e Progra
m *
*Denotes majorfe
d eralf
ina
n ciala
s sistanceprogram
.
0) In addition to these expense
s of fe
d eral fu
nds
,
$1
3,
708,
971
wa
s
di
s
bur
s
d
e
i
n
t
he
f
or
m
of
l
oa
n
s
a
nd
i
A gency's ba
la
n ce sheeta
s ofJune 30
s carrie
d a
s on the
1996.
,
-
2-
Ik~s|lcthw ailc & N c|Icrvillc
A I'to/~,~stotud A~'~oltpllt'
tlg (otT~oratton
C ER] IFIED PU [~LIC AC C O U N TA NTS
8550 U N ITED PLAZA BLVD , SU ITE 1001 ~ BATO N RO UG E
, LO UI
SIANA 70809 ~ TELEPHONE (504)922-4600 ~ FAX (504)922- 4611
To the Board of Com m issioners
Louisiana H ousing Fina
n ce A gency
Baton R ouge, Louisiana
W e have audited the f
ina
n cialstatem entsofthe Loui
sia
n aHousing Finance Agency (the Agency)fortheyearended
June 30, 1996, and have issue
d our reportthereon dated Septem ber 12 1996.
,
W e conducte
d our auditin accordance w ith generall
y accepte
d auditing standards, G overnmentAuditing Standards
,
issued by the Com ptrollerG eneralofthe U nited St
a tes. Those standards require thatw e pla
n and perform the auditto obtain
reasonable assurance aboutw hether the f
ina
n cialstatem ents
are free of m ater
ia
l m isstatem ent.
The m a
n agem ent of the A gency is responsible for e
st
a blishing a
n d m aint
a ining a
n interna
l control
structure. In
fulf
illing thisresp
o nsibility, estimate
sa
n djudgmentsby managementare re
q uired to a
s sesstheexpecte
d benef
its a
n d relate
d
costs of internalcontrol structure policies a
n d proce
d ur
es. T
h e obje
c tivesofa
n internalcontrolstr
u cture are to provide
ma
n agem entw ith reasonable, butnotabsolute, a
s sura
n ce thatassets are safeguarde
d againstloss from unauthorized use or
disposition and thattra
n sactionsare execute
d in accorda
n ce w ith m a
n agem ent'sauthorization a
n d rec
orde
d properly to perm it
the preparation of f
ina
n cialstatem ents in accorda
n ce w ith genera
l ly accepte
d accounting principles. Be
c ause of inherent
lim it
a tions in a
n y inter
na
l control structure, errors or ir egularities m ay neverthele
s s occur a
n d not b
e dete
c te
d . A lso,
proje
c tion ofa
n y evaluation ofthe str
u cture to future per
iodsissubje
c tto the risk thatprocedure
s m ay be
c om e inade
q uate
because of cha
n ge
s in conditions or that the effectivene
s s of the design a
n d operation of p
o licies a
n d proce
d ure
s m ay
deteriorate.
In planning a
n d perform ing our auditofthe f
ina
n cia
l st
a tem ent
s ofthe Agency for the year ende
d J
une 30, 1996,w e
obt
a ine
d a
n under
s tanding of the internalcontrolstr
u cture. W ith respe
c t to the inter
na
l controlstructure,w e obtaine
d a
n
understanding of the de
s ign of the releva
n tpolicie
s a
n d proce
d ure
s a
n d w hether they have been place
d i
n operation,a
n dwe
-
3-
DO NALDSO NVILLE * GO NZALES * NEW O RLEANS
~ ST.ERANCISVILLE
ASSO CIATED O FFICES IN PRINCIPAL CITIES O F THE UNI]ED STA]ES
Postlctlrwa]|~ & N ettervJllc
A Pro/~,hmu!ArcountJn8 Cor~ rati~,n
CI;H'rlFII::D PUBLiO AD~OUNTANT,
~
6S~ UNITED Pt-=~ A I~LVD..SUITE 1001 ~ bATON ~OUL;E,LOUISIANA 7D90~ ~ TEL]~PHONF (co4)922-4~0U # ;:AX {S04)9Z2-4B11
Septem b~ 12, 1996
Board ofCom m issioners
l.xmlstana H ousing Fjnanr.c Agency
Baton Rouge,1.ouisJ~ a
In platm ing and perl'
orm ing our audit of the combined f
lm meial~ tom en~ Of 111,,louisiana lqoush~g
Fil~.
,~:e.~ enw3 forl~eyearended June30,1996,weconsidered the/~gr.ncy'~inlernalcontrols;zucm re
{l~e~m ine ~ r~a~itin~ pr[~r
"~ r~ ~or~ el~arp~ e o~~xpr~ x~ g m~oph~on on gae ~rtma~a~
.s~ rne~
and not~ p~'ovlde ~l.
~$urtm~ on tho internalcontrolxm ~r.
Xure.
~eeomm~ndntion:
In order to propea'ly reportany liability re~ulting from the I:~ut,oople~ of
r..alculztlo/~ perform ~Ion all,
~ppllczble is~'u~ should be ob~ iocd ai'mually
and currently.
A list of bond issues ~m d c~m pt*taf
ion da/e~ for each if,~u~ will be
m a~n~ain~a in the acco.nt;ng section, Calcu|at~ou o! rd~att sraounb ,
if any, due on ~ucb date
~ willbe p~rlorm ed by either the Agency's
FinanCia}A dvbor or bond cm mnsd .
~ONAL~SONVII.I.E ~GONZ~,LE~ "N~'W oriL~A~I~ ~~ I=f~ cfsviJ.l.~
l~os|lcthw aitc & N c|1c rvillc
A l'tof
i'~si(malA(~'Olllllltle
~ (()?]~()rllll'
()tl
C ERTIFIED PU BLIC A CC O U NTAN ]S
8550 U N IqED PLAZA BLVD ., SU I]E 1001 ~ BATO N RO UG E, LO UISIANA 70809 ~ TELEPHONE (504)922-4600 ~ FAX (504)922-4611
To the Board of Com m issioners
Louisiana H ousing Fina
n ce A gency
Baton R ouge,Louisia
na
W e have audited the f
inancialstatem ents ofthe Louisia
n a H ousing Fi
nanceAgency (the Agency)as ofa
n d fortheyear
ended June 30, 1996, a
n d have issued our report thereon date
d
Septem ber 12, 1996.
W e conducte
d ourauditin accorda
n ce w ith generally accepte
d auditing standard
sand,GovernmentAuditing Standards,
issue
d by the Com ptrollerG eneralofthe U nite
d St
a tes. Those standards require thatw e plan a
n d perform the auditto obtain
reasonable assurance aboutw hether the f
inancialst
a tem ents are free of materialm isstatem ent.
Com plia
n ce w ith law s,regulations, contracts,a
n d gra
n ts applicable to the L
o uisia
n a H ousing Fina
n ce A gency is the
responsibility ofthe Agency's m a
n agem ent. A spartofobtaining reasonable a
s surance aboutw hetherthe f
inancialst
a tem ents
are fre of m
a terial m isst
a tem ent, w e perform ed testa of the A gency's com plia
n ce w ith certain provisions of law s,
regulations,contracts,a
n d gra
n ts.
However,the objectiveofourauditofthe fina
n cialst
atementswas notto providea
n
opinion on overallcom pliance w ith such provisions. A ccordingly,w e do notexpress such a
n opinion.
The results of our tests disclose
d no instances of noncom plia
n ce thatare require
d to be reporte
d under Government
Auditing Standards.
h is repor
T
t isintende
d for the inform ation ofthe f
ina
n ce com m
i ttee
,
m anagem enta
n d the LegislativeA uditor's O ff
ice.
H owever, this repor
t is a m
a tterofpublic record and it
s distribution is notlim
i te
d .
Baton Rouge, Louisia
na
Septem ber 12, 1996
-
9-
DONALDSO NVIL[E * GO NZALES ~ NEW O RLEANS ~ S] FRANCISVILLE
ASSO CIATED O FFICES IN PRINCIPALCITIES O F THE UNITED SFATES
BA LA N CE SH EETS
JU N E 30_ 1996 A N D 199~
A SSET S
1996
CASH AND CASH EQUIVALENTS
1995
$ 4,149,161
$ 3,778,601
14,391,489
8,322,911
A CCRU ED IN TEREST RECEIV A BLE
210,440
72,558
D U E FRO M GO V ERN M ENTS
431,090
496,066
RECEIVA BLES
100,929
112,517
O TH ER A SSETS
70,156
73,304
438,040
156,828
134,836
176.89~
19,926,141
13.189.683
1,061,378
947,123
25,613,669
814,516
217,110
23,914
15.000
27,745,587
14,984,331
251,808
9,309
3
IN VESTM ENTS
D U E FRO M M RB PRO G RA M S
PROPERTY AND EQUIPM ENT (netofaccumulated
depreciation of$177,776 and $140,040,respe
c tively)
R EST R IC T ED A ,
~SET ~q
Cash and ca
s h equivalents
M ortgage loans receivable (netofreserve forcredit
losses of$7,174,675 and $4,095,043,respe
c tively)
A ccrue
d interest receivable
Rent
s re
c eivable - rentalproperty
Proper
t y and equipm ent - renta
l proper
ty
O ther a
s set
s - renta
l proper
ty
Total A ssets
The accom panying notes are an integra
l part of t
h ese f
i nancia
l statem ents
-
2-
16,192,574
5 3 ~J ~
..
RECE VI:9
L~O~ L!,iI,
/! f,
.t~I'[OR
JUNE 30,19
_99_~
-jnaer provisions of state taw ,this
report is a public docum ent. A
copy ofthe reporthas been subm itted to the audited, or re,vfewed,
entity and otherappropriat$ ,.'
.:;bile
of
f icials. The report is available for
public inspection at the Baton
Rouge office ofthe Legislative Audi.
tot and, w here appropriate, at the
of
f ice of the parish clerk of court
q~.lease Date
eD.T ~ ~ ~.,,~
C O N T EN T S
IndependentA uditors' Report
Balance Sheets
Statem ent
s of Revenues, Expenses and Changes in
Fund Balance
Statem ents of Cash Flow s
N ote
s to Financial Statem ent
s
Com bined Statem ent of O perations
1
2 -3
4
5 -6
7 - 17
18
FIN A N C IA L ST AT EM EN T~
JUNE 30. 1996
P ostlcthw ai|c & N cttcrvillc
R ]~rq]l,~l,
~ionalACCOI~III#I~'('orporation
G ERqIFIED PU BLIC AC C O U NTA NTS
8550 UNITED PLAZA BLVD .SUll'E 1001 ~ BATO N ROUG E,LO UISIANA 70809 ~ 3ELEPHO NE (504)922-4600 ~ FAX (504)922-46
To the Board of Com m issioners
Louisiana H ousing Finance Agency
Baton Rouge,Louisiana
W e have audited t
h e accom panying f
i nancialstatem ents of t
h e Louisiana H ousing Finance Agency's GeneralFund,
a com ponent unit of the State of Louisiana, as of June 30, 1996 and 1995. These f
inancia
l statem ents are the
responsibility oft
h e A gency's m anagem ent. O ur responsibility isto express an opinion on t
h ese f
inancialstatem ents
ba
s ed on our audit
s.
W e conducted ouraudits in accordance w ith generally accepte
d auditing standa
r ds a
n d governm entauditing standards,
issue
d by t
h e Com ptroller G eneralofthe U nite
d States. Those sta
n dards require thatwe plan a
n d perform t
h e audits
to obtain rea
s onable assura
n ce about whet
h er t
hef
i nancia
l statem ents a
r e free of m aterial m isstatem ent. A n audit
includesexam ining,on a testba
s is,evidence supporting the am ount
s and disclosures in t
h ef
inancialstatem ent
s, An
auditalso includes assessing t
h e accounting principles used a
n d signif
ica
n testim ate
s m ade by m anagem ent,a
s well
as evaluating t
h e overa
l lf
i na
n cia
l statem entpre
s entation. W e believe t
h atour audit
s provide a reasonable basis for
our opinion.
In ouropinion,the f
inancia
l statem ent
s referred to above presentfairly,in a
l lm aterialrespect
s ,t
h ef
i nancia
l position
of t
h e Louisiana H ousing Fina
n ce Agency's General Fund a
s of June 30, 1996 and 1995, and t
h e results of it
s
operations and its ca
shf
l ow s for t
h e years t
h en ended in conform ity w it
h generally accepted accounting principles.
A sdiscussed in N ote 2,the f
inancia
l statem ent
s presentonly t
h e Louisiana H ousing Finance Agency's GeneralFund
and are not intended to pre
s ent fairly t
h e com bined f
inancia
l position, com bine
d result
s of operations, or t
he
com bined ca
sh f
low s of t
h e Louisiana H ousing Fina
n ce Agency's m or
tgage revenue bond program s in conform ity
w it
h generally accepte
d accounting principles.
In accorda
n ce w it
h G overnm entA uditing Standards,we have a
l so issued a repor
t date
d Septem ber 12, 1996 on our
consideration oft
h e Louisia
n a H ousing Fina
n ce A gency's interna
l controlstructure and a repor
t dated Septem ber 12,
1996 on it
s com pliance w it
h law s a
n d regulations.
O ur audit w a
s conducted for t
h e purpose of form ing a
n opinion on t
h ef
i na
n cia
l st
a tem ent
s taken a
s a w hole. The
com bine
d statem entofoperations on page 18 is presented for pur
p oses ofadditiona
la
n alysis and are nota require
d
partoft
h ef
ina
n cia
l statement
s oft
h e Louisia
n a Housing Finance Agency. Such information ha
s be
e n subje
c te
d to
t e auditing procedure
h
s applied in t
h e audit ofthe f
i na
n cial statem ent
s a
n d, in our opinion,is fairly pre
s ente
d in all
m ateria
l respect
s in relation to t
hef
i na
n cia
l statem ent
s ta
k en a
s a whole.
Baton Rouge,Louisia
na
Septem ber 12, 1996
DO NALDSO NVI[LE ~ GO NZALES ~ NEW O RLEANS ~ ST FRANCISVILLE
ASSO CIAqED OFFICES IN PRINCIPAl CIqIES OF qHE UNI]ED STA]EB
1996
A CCO U N TS PA Y A BLE A N D A CCRU ED
LIA BILITIES
$
CO M PEN SATED A BSEN CES PA Y A BLE
D EFERRED IN CO M E
D ue to G overnm ents
D eferred incom e
Tenant security deposit
s and accrue
d
liabilities - rental property
A ccount
s payable
TO TA L LIA BILITIES
FU N D BALA N CE
Restricted - Fe
d eralprogram s
Restricted - renta
l proper
t y operations
U nrestricted
396,146
-
3-
$
656,473
59,617
50,537
1,623,880
2,067,783
2.079.643
2,774,793
135,450
55,487
700,642
58,839
158,314
15,586
364,837
25,645
42,678
827,804
2,444,480
3.602,597
26,541,360
659,118
15,176,761
247,020
18.026,770
10.355.879
25,779,660
45,227,248
T otalL iabilities and Fund Balance
1995
1996
1995
N PFR AT IN ~ R E V EN U ES
482,379
427,236
349,426
538,293
981,671
638,404
201,850
752,128
36,484
967,132
4,115,962
M RB program issuer fees
Low incom e housing tax creditprogram fees
Com m itm ent and loan fee incom e
Com pliance and application fees - H om e Program
Federalprogram adm inistrative fees
O ther incom e
Inc
o m e on investm ents
O PERA T IN G EX PEN SES
Personnel service
s
Supplies
T ravel
Operating ser
v ices
Profe
s sional services
D epreciation
Excess revenue over expenses from operations
M iscellaneous incom e
Intere
s t incom e on restricte
d assets
Fe
d eralgrantrevenue
Fe
d eralgrantfunds passe
d through to subre
c ipients
H om ebuyer assist
a nce paym ents
Provision for credit losses
N et incom e from rentalproperty
762,853
42,548
653 631
2,718,073
729,093
25,183
75,015
636,691
491,098
734,332
40,752
72,588
665,097
1,002,596
52,641
2,568,006
2,006,362
1,547,956
711,711
332,639
596,404
16,970,858
115,189
245,363
22,173,278
(
3,080,388)
(
3,079,632)
49,28~
(
(
(
6,868,495)
294,308)
4,095,043)
1,363,134
13,103,015
247 014
11,522,998
EX CESS O F REV EN U ES OV ER EXPEN SES
14,650,971
12,234,709
FUN D BA LA N C E - Beginning of year
25,779,660
14,417,958
4,796,617
N et re
s idualequity transfers
FU N D BALAN CE - End of year
The accom panying note
s are an integral part of the
sef
i nancia
l statem ents
-
4-
(
873,00~
qT ATEM EN TS O F CA SH FLO W S
.
1996
1,547,956
Excess revenues over expenses from operations
1995
$
711,711
Adjustments to reconcile excessrevenuesover
expense
s to netcash provided by operating
activitie
s:
D epre
c iation
Reclassify investm ent intereSt incom e
Change in due from governm ents
Change in due from M RB program s
Change in accounts payable
Change in com pensated absences payable
Change in due to governm ent
s
Cha
n ge in deferred incom e
Change in other asset
s
M ortgage loans purcha
se
d
Colle
c tions of m ortgage loans
N et ca
s h use
d in operating activities
49,282
52,641
967,132)
64,976
281,212)
260,327)
(
(
(
374,729
12,927
457,007
85,914
9,080
565,192)
447,255)
14,736
( 13,784,043)
653,631)
392,902)
156,818)
(
142,152)
( 15,539,592)
75,073
( 14,540,699)
( 15,193,525)
808,684
8,603,199
( 3,8O6,582)
16,970,858
(
D isbursem ent
s of federal grant
s
H om ebuyer a
s sistance paym ent
s
N et cash provide
d by noncapita
l f
i nancing activities
( 3,080,388)
( 6,686,495)
Purcha
s e of fixed a
s sets
(
Residualequity transfers in
R esidual equity transfers out
Re
c eipt
s from fe
d eralgrant
s
(
(
(
700,590)
332,639
Otherincome (non-operating)
( 38,367,821)
Inve
s tm ent
s purcha
se
d
Investm ent
s re
d eem ed
N et cash from rental property
Netca
s h (used in)provided by investing activities
The accom pa
n ying notes are an integra
l part of these fina
n cial statem ent
s
-
5-
45,990)
653,631
1,563,536
Investm ent intere
s tincom e
Increa
s e in accrue
d interest re
c eivable
294.308)
14,319,468
18,687,087
10,579)
1,681,691)
22,173,278
(
10,988)
66,477
( 11,220,901)
32,299,243
1,221,999
13,488,840
( 3,661,573)
3.178.083
247,014
1996
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS,beginning ofyear
CASH AND CASH EQUIVALENTS,end ofyear
SU PPLEM ENTA L D ISCLO SU RE O F CA SH FLO W IN FO RM ATIO N
Cash paid during the year for interest
The accom panying notes are an integral part of t
h ese f
i nancia
l statem ents
-
6-
$
1995
484,815
$ 2,304,026
4,725,724
2,421,698
N O T E S TO FIN A N C IA L ST A T E M EN T S
1. O reanization of the A ~,encv
The Louisiana Housing Finance Agency (the Agency)isa politicalsubdivision and instrumentality ofthe State
ofLouisiana established in 1980 pursuantto t
h e Louisiana H ousing Finance Actcontained in Chapter 3-A ofTitle
40 of the Louisiana Revise
d Statutes of 1950, as am ende
d . The initial enacting legislation and subsequent
am endm ents grantthe Agency the authority to undertake various program s to a
s sist in the f
inancing ofhousing
needs in the state of Louisiana for persons oflow and m oderate incom es by issuing evidence of indebtedness to
obtain funds for accom plishing its aut
h orized public functions.
In accordance w ith t
h e above legislation,t
h e powers oft
h e Agency a
r e ve
s ted in a Board ofCom m issioners which
is em pow ere
d to contract w ith out
s ide partie
s to conduct t
h e operations of t
h e program s it initiates. For t
he
program s it initiates, the Agency utilizes m or
t gage lenders in t
h e State of Louisiana to originate and service
m ortgage and construction loa
n s acquired under it
s single fam ily a
n d m ultifam ily program s. T
h e A gency also
utilizesvariousbanking institutionsto serve as trustee foreach ofits bond program sand such truste bankshave
the f
iducia
r y responsibility for t
h e custody and investm entofprogra
m f
u nds.
2. Sienificant A ccountin~ Policies
a.
Basis of accountinz and reoortinz
In Aprilof 1984,t
h e Financia
l Accounting Foundation e
s tablishe
d t
h e G overnm enta
l A ccounting Sta
n dards
Board (GASB)to promulgategenerally accepte
d accounting principlesand reporting standardswit
h re
s pect
to activities and transactionsofstate a
n d localgovernm ententities. In N ovem berof 1984,t
h e G ASB issue
d
a codif
ication of governm ental accounting a
nd f
i na
n cia
l reporting sta
n da
r ds. The codif
ication a
nd
subsequentG A SB pronouncem ent
s a
r e recognize
d as genera
l ly accepte
d accounting principle
s for state and
local governm ent.
The Louisiana H ousing Finance A gency prepa
r es it
sf
ina
n cia
l statem ents in accordance w it
h t
h e sta
n dards
establishe
d by t
h e G A SB. G A SB Codif
ication Se
c tion 2100 e
s tablishes criteria for determ ining the
governmentalreporting entity and ha
s def
ine
d t
h egovernmentalreporting entit
y to betheState ofLouisiana.
T e accom pa
h
n ying statem ent
s presentonly transactionsoft
h e Louisiana H ousing Fina
n ce Agency's Genera
l
Fund, a com ponent unit of the State of Louisia
n a. The Agency's "Genera
l Fund" refers to t
h e fund t
h at
account
s for the Agency's general operating activities a
n d is not m ea
n t to denote a governm ental type
genera
l fund ofa prim ary governm ent. The Agency'sG enera
l Fund,a
s w ellas its M or
tgage Revenue Bond
Program s,a
r e considere
d to be proprietary type f
u nds,as discusse
d in (a.)below.
A nnually,t
h e Louisia
n a H ousing Fina
n ce A gency issues com bined f
i na
n cial statem ent
s w hich include t
he
activity containe
d in t
h e accom panying f
inancialstatem ent
s.
A nnually, t
h e State of Louisiana issues genera
l purpose f
i nancia
l statem ent
s which include the activity
containe
d in the accom panying f
i na
n cia
l statem ent
s . The general purpose f
i na
n cia
l statem ents a
r e issued
by t
h e Louisiana D ivision of Adm inistration-O ff
ice of Statew ide Reporting and Accounting Policy and
audited by t
h e Louisiana Legislative A uditor.
-
7-
O III~;IA N A H O U SIN G FIN A N C E A G E N C Y
N O TES TO FIN A N CIA L STATEM ENTS
5. FederalFinancial Assistance (continued)
The Agency disbursed a totalof$14,651,964 and $20,057,396 in connection with t
h e HOM E Program during
1996 and 1995,respe
c tively.
The Agency re
c ognized $752,128 and $762,853 in adm inistrative fee revenue underthis program for 1996 a
nd
1995, respe
c tively.
6. Board of Com m issioners Exoenses
The appointed m em bers of the A gency's Board of Com m issioners re
c eive a per diem paym ent for m eetings
attended and services rendere
d ,and are also reim bursed fortheir actualexpenses incurred in the perform ance of
their duties as Com m issioners. Fort
h e yea
r ended June 30, 1996,t
h e follow ing per diem paym ents were m ade
to t
h e m em bers of t
h e Agency's Board and a
r e include
d in genera
l a
n d adm inistrative expenses:
$
Robert A ustin
W illiam Bisland,Jr.
Effie C arter
Robert Eustis
D elores P.Francois
Elm o Frazier
Roy I.G ross,III
Phillip M iller
G regory M onier
A lbert S.Pappa
l ardo
Cade Stapleton
W .E .Tucker,Jr.
PhilY eates
600
550
450
400
150
550
450
600
550
500
100
500
609_
_
7
P
p_ension Plans
_
M ostoft
h e Agency'sfull-timeemployeesparticipate in t
h e Louisia
n aState Employe
e s'RetirementSystem ("the
System "), a single-employer public employee retirement system . The payroll for employees covered by t
he
System for t
h e years ende
d June 30, 1996 and 1995 was approximately $530,000 a
n d $500,000;t
h e Agency's
totalpayrollwa
s approxim ately $640,000 and $600,000,respectively.
-
14 -
!l~
Cr~ ~r~ Ltl~
~
o
~o
Pension Plans and O ther Em nlovea Benef
its
(continued)
Pension Plans (continued)
M ost Agency full-tim e em ployees are eligible to participate in the System . The age and years of creditable
service require
d in order for a m em ber to retire w ith f
u llbenef
its a
r e established by Statute and vary depending
on t
h e member's employer and job classif
ication. The substa
n tialmajority of members may retire wit
h full
benef
its at ages ra
n ging from any age upon completing thirty years of creditable service, to age sixt
y upon
com pleting ten years ofcre
d itable service. The ba
s ic annualretirem entbenef
itfor substa
n tially allm em bers is
equal to 2.5% of average compensation multiplied by t
h e number of yea
r s of creditable ser
v ice plus $300.
Participant
s who become m em bers oft
h e System on or afterJuly 1, 1986 are noteligible fort
h e $300 addition
to the annual retirem ent benef
it form ula. Benef
its f
u lly vest on reaching 10 years of ser
v ice. T
h e System also
provides deat
h and disability benef
it
s . Benef
i ts are e
s tablishe
d by State Statute.
Covere
d em ployees are required by State statute to contribute 7.5% of t
h eir sa
l ary to the System . T
h e Agency
is require
d by t
h e sam e statute to contribute 12% of t
h e em ploye
e 's eligible com pensation to t
h e System . The
contributions made by t
h e Agency fort
h e years ended June 30, 1996 and 1995 were approximately $61,000 and
$52,000,respectively. T
h e contribution m ade by employees was approxim ately $18,g00 and $37,000.
h e "pension benef
T
it obligation" is a standa
r dized disclosure m ea
s ure of t
h e pre
s ent value of pension benef
it
s,
adjuste
d fort
h e effect
s ofproje
c te
d sa
lary increa
s es and step-ratebenef
it
s ,estimated to bepayable in t
h e future
s aresultofemploye
a
e serviceto date. T
h e measure,which ist
h eactua
r ialpresentvalueofcre
d ited projecte
d
benef
it
s , is intende
d to help users a
s sess t
h e System 's funding status on a going-concern basis,a
s se
s s progress
m ade in accum ulating suff
icient a
s set
s to pay benef
it
s w hen due, and m ake com pa
r isons am ong PERS and
em ployers. The System doe
s not m ake sepa
r ate m ea
s urem ents of asset
s a
n d pension benef
it obligation for
individua
l em ployers. The pension benef
i tobligation atJune 30, 1995,t
h e date of t
h e latestactuarialvaluation,
for t
h e System as a whole w a
s $5,696,909,256. The System 's net assets available for benef
it
s on t
h at date
(va
lue
d atma
r ket)were$3,589,501,958,leaving an unf
u nde
d pensionbenef
itobligationof$2,107,407,298.The
A gency's 1995 contribution represente
d less t
ha
n one percentoftotalcontributions required ofallpa
r ticipating
entities.
Ten-year historica
l trend inform ation show ing t
h e System 's progre
s s in accum ulating suf
f icient a
s set
s to pay
benef
its when due is pre
s ente
d in t
h e System 's June 30, 1995 com prehensive a
n nua
l f
inancia
l report.
O ther E m olove
e Benef
i ts
h e Agency provide
T
s cer
tain continuing healt
h ca
r e and life insurance benef
it
s for it
s retire
d employe
e s.
Substa
n tially a
l l of t
h e A gency's em ployees becom e eligible for those benef
it
s if t
h ey reach norm al retirem ent
age while working for the Agency. T
h ose benef
it
s for retirees and sim ila
r benef
it
s for active em ployees are
provided t
h rough a state operate
d group insura
n ce com pany and various insurance com panie
s w hose m ont
h ly
premiumsare paidjointly by theemployee and the Agency. T
h e Agency recognizesthecostofproviding t
h ese
benef
it
s (Agency's portion ofpremiums) a
s a
n expendit
u re/expense in t
h e yea
r paid. Such cost
s paid were
insignif
icant for t
h e years ende
d June 30, 1996 a
n d 1995.
-
15 -
LO U ISIA N A H O U SIN G FIN A N C E A G EN C Y
N O TES TO FIN A N C IA L ST A TEM EN TS
2. Sia
n if
icantAccountin~ Policies (continued)
a.
Basisofaccountine and reoortine (continue
d)
The Funds of the A gency are proprietary fund types. Proprietary f
u nds are use
d to account for
governm entalactivities that are sim ila
r to t
h ose found in t
h e private sector w here t
h e determ ination ofnet
incom e is ne
c essary or useful to sound f
i nancial adm inistration. The generally accepted accounting
principles ("GAAP")use
d forproprietary fundsa
r e genera
lly t
h ose applicableto similarbusinesses in the
private se
c tor(accrualbasisaccounting). Underthe accrua
l basisofaccounting,revenuesare re
c ognized
in the accounting period in which they w ere ea
r ne
d and expenses a
r e recognize
d in t
h e period incurred.
Signif
icant accounting policies consistently followed by t
h e Agency in preparing its f
i nancial statem ent
s
include:
b.
Fund Accounting
G enera
l Fund - This f
u nd provides for t
h e accounting of general a
n d adm inistrative expenses of t
he
A gency, any allow able tra
n sfers from ot
h er f
u nds, investm ent interest incom e, and various type
s of fees.
Funds tra
n sferre
d from the A gency's program s are generally unrestricte
d a
n d m ay be utilize
d for a
n y law ful
purpose ofthe Agency. T
h e G eneralFund also accounts for t
h e Low Incom e H ousing Tax Cre
d itprogram
adm inistere
d by t
h e Agency,and accounts fort
h e adm inistration a
n d pa
s st
h rough tra
n sactionsofthe fe
d era
l
programsadministere
d by t
h eAgency. (SeeNote5) T
h isstatementref
le
c tsonly theactivity oftheGeneral
Fund,determ ine
d to be a com ponent unit of t
h e State ofLouisiana.
Include
d in "the fund is the pass-t
h rough federalfunds of Section g H ousing Assistance Paym ents Program ,
w hich the A gency adm inisters on beha
l f of the U .S. D epa
r tm ent of H ousing and U rban D evelopm ent
(HUD).
T e Agency ow ns f
h
i ve low incom e m ultifa
n lily rental properties. T
h e activity of these proper
t ie
s are
accounte
d for in t
h e G enera
l Fund.
c.
Loan fees
Loa
n fees are deferre
d and a
m or
t ize
d using a m ethod t
h at approxim ate
s the interest m et
h od over t
he
contractua
l life oft
h e relate
d loans,exceptfor single fam ily f
i xe
d -rate m or
t gage loa
n s. D ue to anticipate
d
prepayments,f
ixe
d -rate single family loa
n s (genera
lly made foracontractual30-yea
r term)a
r e amortize
d
over a
n estim ate
d 12-yea
r e
c onom ic life. In t
h e eventan extraordinary m andator
y re
d em ption occurs due
to mortgageloansnotbeing originate
d ,deferre
d fees(on apro-rata sha
r eofunf
u nde
d mor
tgage loa
n s)are
recognize
d im m e
d iately as revenue.
d.
Investm ent~
Investm ent
s a
r e included in t
h e accom pa
n ying f
i na
n cial statem ent
s at am or
t ize
d cost
-
8-
LO U ISIAN A H O U SIN G FIN AN CE AG EN CY
N O T ES TO FIN A N C IA l.ST AT EM EN TR
5. Federal Financial A ssistance
Suooortive H ousin~ D em onstration Program
The Agency has been awarded severalgrants by the Departmentof Housing a
n d Urban Development(H UD)
undert
h e Supportive H ousing D em onstration Program . U nder these gra
n tagre m ents, t
h e A gency serves a
s a
n
agent for H U D by distributing these funds to t
h e entity operating t
h e program The A gency requisitioned
.
$122,949 and $191,506 and disbursed $146,098 and $191,506 on behalfoft
h e projects during t
h ef
iscalyears
1996 and 1995,respe
c tively. T
h e Agency re
c eive
s no fee for adm inistration of t
h ese grant
s.
H O M E Program
The A gency ha
s a
l so entere
d into a partnership agreem ent on beha
l f of the State of Louisia
n a w it
h H U D under
h e H O M E Investm ent Partnership Progra
t
m a
s aut
h orized by Title II of t
h e N ationa
l A ffordable H ousing Act
U nder t
h e agreem ent,t
h e Agency adm inisters and distributes f
u nding to be use
d for a variety of low incom e
housing activities. These activities and t
h e form of funding provide
d a
r e as follow s:
.
Activity
Funding Form
a) Rehabilitation a
n d new construction oflow-income
m ultifam ily renta
l com plexes
Low interest bea
r ing loans
b) Rehabilitation ofstructuresforlow-income
hom eow ners
G rant
s
c) Firstyea
r operating expense
s forcommunity housing
developmentorganizations (CHDO 's)
d) Homebuyera
s sistance
Gra
nt
s
Low intere
s t, non interest
bea
r ing loans and grant
s.
-
13 -
LO U ISIAN A H O U SIN G FIN A N CE A G EN CY
N O TES TO FIN A N CIA L ST ATEM EN TS
2. Si2nif
ieantAccountin~ Policie
s (continued)
e.
A llow ance for Cre
d itLosses
The a
l low ance is m aintaine
d at a level adequate to absorb probable losses. M anagem ent determ ines the
adequacy of t
h e allow ance base
d upon review s of groups of credits,loss experience of sim ilar type loans,
currentand future estim ate
d econom ic conditions,the risk characteristics ofthe various categories ofloans
and ot
h er pertinent factors. Cre
d it
s deem ed uncollectible are charged to t
h e allow ance. Provisions for
cre
d it losses and recoveries on loans previously charge
d off are adde
d to t
h e allow ance.
f.
Issuer Fe
es
The Agency receivesan administrativefee from the majority oft
h ebond programs issue
d by t
h e Agency
The am ount
s and/or calculations of t
h e fee.s a
r e specif
ied in t
h e various bond indentures.
g.
Fixe
d Assets
TheAgency'smajorclasse
s off
ixed asset
s consistofequipmenta
n d automobile
s .Thesea
s setsa
r ere
c orded
atcostless accum ulated depreciation a
n d depreciate
d overtheirestim ate
d usefullivesusing t
h e straight-line
m et
h od.
h.
Reclassif
i cations
Certain am ount
s in t
h e 1995 financia
l statem ent
s have been re
c lassif
i ed to conform to the current year's
presentation.
Estim ates
T e preparation off
h
i nancialstatem ents in conform ity w it
h genera
l ly accepted accounting principles require
s
m anagem entto m ake estim ate
s and a
s sum ptionsthataffe
c tthe reporte
d am ount
s ofa
s sets and liabilitie
s a
nd
disclosure ofcontingenta
s set
s and liabilities att
h e date oft
h ef
i nancialstatem ent
s and the reporte
d am ount
s
of revenues and expenses during the repor
t ing period. Actua
l re
s ult
s could differ from t
h ose estim ate
s.
3. Cash and Investments
For repor
t ing purpose
s ,cash and ca
s h equivalent
s include ca
s h on ha
n d,dem a
n d deposit
s and allhighly liquid
investm ents w it
h an originalm aturity oft
h re m ont
h sorless. Ca
s h and ca
s h equiva
l ents are stated atcost, w hich
approxim ates m a
r ket value. U nder state law t
h e Louisiana H ousing Fina
n ce Agency m ay deposit funds w it
h in
af
isca
l agentba
n k sele
c te
d and designate
d by the Interim Em ergency Board. Furt
h er,the Agency m ay invest
in tim e cer
t if
icates of depositof state ba
n ks orga
n ize
d under t
h e laws of Louisia
n a, nationa
l banks having t
h eir
principa
l off
i ce in the state of Louisiana, in savings account
s or sha
re
s of savings and loa
n a
s sociations and
savings ba
n ks and in share account
s and share certif
i cate am ount
s of fe
d era
l ly or state cha
r tere
d cre
d itunions.
-
9-
1.O lllSIA N A H O U SIN G FIN A N C E A G EN C Y
N O T E.
q TO FIN A N CIA L ST ATEM EN T S
4. N otes and Bonds Payable (continued)
n Thousands
Bond Issue
1984A Single Fam ily
1987A Single Fam ily
1988A Single Fam ily
1989 Single Fam ily
1990 Single Fam ily
1990B Single Fam ily
1992 Single Fam ily
1992AJB Single Fam ily
1992A t/BtSingle Fam ily
1992AJB2 Single Family
1994B Single Fam ily
1995A ~/A~ Single Fam ily
1995C ~Cz Single Fam ily
1996B~-B4 Single Fam ily
Interest
R ate
11.9%
6.5-9.1%
6.5-8.3%
7.6%
7.8%
6.9%
3.8-3.9%
6.0-7.4%
4.4-6.9%
4,65-6.8%
4.6-6.6%
4.3-8.0%
4.5-7.8%
5.1-6.45%
4.1-6.3%
3.75-3.8%
8.5-9.6%
983 M ultifam ily
10.5%
1986 Seeurilized M ultifarnily
8.6%
1988A M ultifam ily
3.3%
1988B M ultifam ily
3.3%
1988 K .C .M ultifam ily
9.0%
1988 P.H . M ultifam ily
6.8-8.0%
1989 T.A . M ultifam ily
5.4%
1990 W .V . M ultifam ily
7.8%
1991 W .V .II M ultifam ily
7.6-8.0%
1991A & B M ultifam ily
5.5-8.5%
1992 N .O . M ultifam ily
5.0-10.0%
1992 E .P. M ultifam ily
5.5-7.1%
1993A& B M ultifam ily
4.4-6.2%
1993 T.T. M ultifam ily
5.5-6.3%
1993 V .M .M ultifam ily
7.1%
1994 S.J.M ,M ultifam ily
7.8%
1995A& B L.A .W .
M ultifam ily
4.0-9.8%
1995A S.D .A .L . M ulf
ifam ily 5.8-7.0%
1995 A .L.F. M ultifam ily
9%
M aturity
D ales
D ate
Issued
08/01/84
12/01/87
12/01/88
12/01/89
09/14/90
11/27/91
06/02/94
06/10/92
06125192
09/23194
04/25/95
09/01/94
04/01/95
12/01/95
04/15/96
04/30/96
12/01/83
12/15/83
07/31/86
03/31/88
04/11/88
06113/88
12/01/88
09/01/89
04/01/90
01/01/91
12/01/91
03/01192
07/01192
05/01/93
12/01/93
07/20/93
06/01/94
08/01/14 $
V ar
i ous
Various
12/01/29
09/01/23
09101/23
06/01/95
Various
V ar
i ous
V arious
Various
V ar
i ous
V arious
V arious
V ar
i ous
04/15/97
V arious
01/01/26
08101196
Various
Various
08/01/13
A m ount
Issue
d
15,118
49,355
93,750
100,000
96,000
27,500
88,785
9,647
5,000
15,000
15,000
10,482
38,014
53,723
36,485
28,795
32,550
16,505
Retire
d
to D ate
Outstanding
at 6/30/96
3,173) $
31,695)
49,175)
11,549)
49,430)
25,192)
88,785)
2,060)
105)
890)
100)
358)
17,915)
11,945
17,660
44,575
88,451
46,570
2,308
7,588
4,895
14,110
14,900
10,124
20,099
53,723
36,485
28,529
2,120
3,093
54,416
7,205
10,370
730
1,220
387
3,597
3,660
9,180
V arious
150,000
7,430
10,655
850
1,250
07/01/10
450
V arious
Various
V arious
V arious
V arious
V arious
V arious
V ar
i ous
V arious
3,745
3,715
9,700
19,700
3,678
10,090
7,817
3,376
3,227
266)
30,430)
13,412)
95,584)
225)
285)
120)
30)
63)
148)
55)
520)
1,339)
142)
265)
65)
22)
3O)
04/01/95
Various
13,490
6,650)
6,840
03101/95
03/31/95
Various
03/01/25
4)
858)
8,484
18,187
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12 -
8,488
19,045 (
18,361
3,536
9,825
7,752
3,354
3,196
3. Cash and Investments (continued)
Investments can be classif
ied according to the levelofrisk to t
h e entity. The Agency's inve
s tment
s (excluding
C.D .'s which were included in the f
irst preceding paragraph of this note) a
r e categorize
d below to give an
indication of t
h e level of risk a
s sum e
d by t
h e Agency at year-end. Category 1 includes investm ent
s t
h at are
insure
d or registere
d or for w hich the securities are held by the Agency or its agent in the A gency's nam e.
Category 2 include
s uninsure
d and unregistere
d investm ent
s for w hich t
h e securities are held by t
h e broker's or
dealer's trust departm ent or agent in t
h e A gency's na
m e. Category 3 includes uninsure
d and unregistered
investm ents for which t
h e se
c urities are held by t
h e broker's or dealer's trustdepartm entor agent,butnotin t
he
Agency's nam e.
996
1
FN M A Securities
Ca
rr
y ing
A m ount
2
$
$
U .S.Trea
s ur
y Securitie
s
554,329 $
12.976.125
554,329 $
Ma
r ket
V alue
580,036
12,976,125
12,923,391
Ca
r rying
A m oum
M arket
V alue
995
C ategory
2
1
FN M A Se
c urities
$
U ,S.Trea
s ur
y Securities
$
3
$
484,659 $
7,838,252
484,659 $
522,860
7,838,252 . 7,902,226
4
T e A gency issue
h
s revenue bonds to assistin t
h ef
inancing ofhousing needs in t
h e state ofLouisiana. The bonds
r e lim ite
a
d obligations of t
h e Agency,payable only from t
h e incom e,revenues a
n d re
c eipts derive
d from the
m ortgage loa
n sa
n d ot
h er investm ents held under and pursuantto t
h e trustindentures and ple
d ge
d t
h erefore. The
bonds do notconstitute a
n obligation,eit
h ergeneralor spe
c ia
l ,oft
h e State ofLouisiana,any m unicipality or a
ny
ot
h er of the politica
l subdivisions ofthe State. Bonds issue
d by t
h e Agency for which t
h e A gency a
n dt
h e State
have no responsibility for repaym ent a
r e not re
c orde
d in t
h e accom pa
n ying f
i na
n cia
l statem ent
s . A ccordingly,
h e Agency has revenue bonds out
t
standing in t
h irty-t
h ree bond programs tota
l ing approximately $577,475,000
atJune 30, 1996. Issues outsta
n ding include:
LO IIIS1A N A H O U SIN G FIN AN CE A G EN CY
N OTES TO FIN AN CIAL STATEM ENTS
3. Cash and Investments (continued)
TheLouisianaHousing Finance Agency had cash and ca
s h equivalentstotaling $5,210,539 and $4,725,724 atJune
30, 1996 and 1995 which included bank deposits of$1,288,668 a
n d $1,965,513,respectively. Understate law
these deposits m ustbe se
c ured by fe
d eraldepositinsurance or f
ile ple
d ge ofse
c urities ow ned by the f
iscalagent
bank. The m arketvalue of t
h e ple
d ged se
c urities plus t
h e fe
d era
l deposit insurance m ust ata
l l tim es equal t
he
am ounton depositw it
h t
h ef
iscalagent. T
h ese pledged securitiesare held in the nam e ofthe ple
d ging f
iscalagent
bank in a holding or custodia
l bank in t
h e form of safekeeping receipt
s held by t
h e State Trea
s urer. The ba
nk
deposit
s , which include $861,035 of certif
icates of deposit
s cla
s sif
ied as investment
s at June 30, 1996 were
se
c ured as follow s:
1996
Carrying am ount
1995
$ 1,288,668
$
1,965,513
$
$
200,000
Bank Ba
l ances:
Insure
d (FDIC)orcollateralized
w ith se
c urities held by the entity
or it
s agent in t
h e entity's nam e
..
Collatera
l ize
d w it
h securities held
by ple
d ging f
ina
n cia
l institution or
it
s trust departm ent or agent in t
he
entity's nam e
400,000
.
U ncollateralized,including any
se
c urities held for t
h e entity
but not in t
h e entitv's nam e
Tota
l Bank Bala
n ces
1,775,530
1,874,504
181,206
67,851
$ 2,356,736
~
2,142,355
The Agency's ca
s h equiva
l ent
s of $3,921,871 a
n d $2,760,211 atJune 30, 1996 and 1995 prim arily consistof
short-term U .S. Governm entSe
c urities held by various tr
u staccount
s m aintaine
d by t
h e Agency.
AtJune 30,1996 and 1995,investm ent
s tota
l ling $14,391,489 and $8,322,911,respe
c tively,consisted prima
r ily
ofU .S.Trea
s ury bills a
n d notes a
n d FN M A securitie
s . Interestrate
s on investm ent
sa
n d ca
s h equiva
l ent
s ranged
from 4.0% to 10% atJune 30, 1996.
U nder Louisia
n a Revised Statute of 1950, as a
m ended, t
h e A gency m ay invest in obligations of t
h e U . S.
Treasury,agencies,and instrum enta
l ities,repurcha
s e agreem ent
s ,and ot
h erinvestm ents a
s provided by the statute
m entione
d above.
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