MEMPHIS HOUSING AUTHORITY Memphis, Tennessee Audit 2015 Final.pdf · Independent Auditor’s Report...

MEMPHIS HOUSING AUTHORITY

Memphis, Tennessee

Basic

Financial Statements and Supplementary Information

Year ended

June 30, 2015

TABLE OF CONTENTS

Page

INDEPENDENT AUDITOR’S REPORT 1 MANAGEMENT’S DISCUSSION AND ANALYSIS (Required Supplementary

Information) 4 BASIC FINANCIAL STATEMENTS Statement of Net Position 12 Statement of Revenues, Expenses and Changes in Net Position 13 Statement of Cash Flows 14 Notes to Basic Financial Statements 16 REQUIRED SUPPLEMENTARY INFORMATION

Schedule of Changes in Net Pension Liability (Asset) and Related Ratios 49 Based on Participation in the Public Employee Pension Plan of TCRS

Schedule of Contributions Based on Participation in the Public Employee 50 Pension Plan of TCRS

SUPPLEMENTARY INFORMATION

Financial Data Schedule 52 Schedules of Actual Program Costs and Advances 70

SINGLE AUDIT SECTION

Schedule of Expenditures of Federal Awards and Local Assistance 74 Note to Schedule of Expenditures of Federal Awards and Local Assistance 75 Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 76

Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control Over Compliance Required by OMB Circular A-133 78

Schedule of Findings and Questioned Costs 81 Corrective Action Plan 84

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Opinion In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the Authority’s business-type activities as of June 30, 2015, 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.

Emphasis of Matter

As discussed in Note B-12 to the financial statements, in 2015 the Authority adopted new accounting guidance, Governmental Accounting Standards Board Statement No. 68, Accounting and Financial Reporting for Pensions and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date. Our opinion is not modified with respect to this matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, schedule of changes in net pension liability (asset) and related ratios based on participation in the Public Employee Pension Plan of Tennessee Consolidated Retirement System (TCRS), and schedule of contributions based on participation in the Public Employee Pension Plan of TCRS, as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on this information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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Other Information Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the Authority’s financial statements as a whole. The accompanying financial data schedule and schedules of actual program costs and advances are presented for purposes of additional analysis as required by U.S. Department of Housing and Urban Development, and are not a required part of the financial statements of the Authority. The accompanying schedule of expenditures of federal awards and local assistance is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and is not a required part of the financial statements of the Authority. This supplementary information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the financial statements. This information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, this information is fairly stated in all material respects in relation to the financial statements taken as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 29, 2016, 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, grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance. March 29, 2016 Melbourne, Florida

Berman Hopkins Wright & LaHam CPAs and Associates, LLP

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Management’s Discussion and Analysis As management of the Memphis Housing Authority (the “Authority”), we offer the readers of the Authority’s financial statements this narrative overview and analysis of the financial activities for the year ended June 30, 2015. We encourage readers to consider the information presented here in conjunction with the Authority’s financial statements.

Financial Highlights

The assets of the Authority exceeded its liabilities as of June 30, 2015, by $233,112,440 (net position), an increase of $1,981,025 from the previous year. This includes a prior period adjustment of $3,157,999 to establish a net pension liability and accounting for deferred contributions as of June 30, 2014.

The Authority earned revenue directly from the U.S. Department of Housing and Urban Development (“HUD”) of $64,265,357, which includes funds for capital asset activities.

The Authority had cash and cash equivalents as of June 30, 2015, totaling $18,752,584, an increase of $734,023 from the previous year.

Increases in deferred outflow and inflow of resources of $605,945 and $2,928,614 respectively, due to the implementation of GASB 68.

Public housing has maintained occupancy of 97% for the fiscal year.

The Authority’s Programs Conventional Public Housing - Under the Conventional Public Housing Program, the Authority rents units that it owns to eligible low-income families, the elderly, and persons with disabilities. The Authority uses income limits developed by HUD which sets the limits at 50 to 80 percent of median income for the area. This program is operated under an Annual Contribution Contract (ACC) with HUD, whereby HUD provides the Authority operating subsidy funding to assist in funding the operating and maintenance expenses and offers rent based upon 30 percent of household income. The Conventional Public Housing Program also includes the Capital Fund Program, which is the primary funding source for modernization of, and physical and management improvements to, the Authority’s properties. Housing Choice Voucher Program - Under the Housing Choice Voucher Program, the Authority administers contracts with independent landlords to allow low-income families to reside in privately-owned rental housing. The Authority subsidizes the family’s rent through a Housing Assistance Payment paid to the landlord. This program is administered under ACC with HUD, whereby HUD provides funding to enable the Authority to structure a lease that sets the participant’s rent at 30 percent of household income. HOPE VI Program - Under the HOPE VI Program the Authority administers grants that provide assistance for the purpose of improving the living environment for public housing residents through demolition, substantial rehabilitation, reconfiguration, and/or replacement of severely distressed units. Community Development Block Grant - This program is funded by HUD to provide communities with resources to address a wide range of unique community development needs. The Authority receives pass-through funding for this program from the City of Memphis. Business Activities - This program consists of several programs that further the mission of the Authority.

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The Authority’s Programs (continued) Resident Opportunity and Supportive Services Program - This program provides public housing residents with supportive services, resident empowerment activities, and assistance in becoming economically self-sufficient. In addition, the Authority is provided funding to establish, expand and/or update community technology centers. Disaster Housing Assistance Program - This program provides rental assistance for families displaced by Hurricanes Katrina and Rita from the Federal Emergency Management Agency (FEMA). In addition, the Authority receives funding for case management to help families rebuild their lives and have the opportunity to return home. Disaster Housing Assistance Ike Program - This program is a HUD FEMA initiative to provide monthly rental assistance, service connections, security deposit and utility deposit assistance for certain families displaced from their homes by Hurricanes Ike or Gustav. Veterans Affairs Supportive Housing Program - This program combines HUD Housing Choice Voucher rental assistance for homeless veterans with case management and clinical services provided by the Veterans Affairs at its medical centers and in the community. Overview of Financial Statements The financial statements included in this annual report are those of a special-purpose government agency engaged in a single business-type activity prepared on an accrual basis. Over time, significant changes in the Authority’s components of net position serve as a useful indicator of whether its financial health is improving or deteriorating. To fully assess the financial health of any authority, the reader must also consider other non-financial factors such as changes in family composition, fluctuations in the local economy, HUD mandated program administrative changes, and the physical condition of capital assets. The following statements are included:

Statement of Net Position - this statement reports the Authority’s assets and deferred

outflows of resources less its liabilities and deferred inflows of resources at the end of the fiscal year. The Authority’s net position is the difference between the Authority’s rights (assets and deferred outflows of resources) and the Authority’s obligations (liabilities and deferred inflows of resources).

Statement of Revenues, Expenses, and Changes in Net Position - this statement

presents information showing how the Authority’s net position increased or decreased during the current fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of when cash is received or paid. Thus, revenues and expenses are reported in this statement for some items that will result in cash inflows and cash outflows in prior or future periods.

Statement of Cash Flows - this statement presents information showing the total cash receipts and cash disbursements of the Authority during the current fiscal year. The statement reflects the net changes in cash resulting from operations plus any other cash requirements during the current year (i.e. capital additions, debt service, prior period obligations, etc.). In addition, the statement reflects the receipt of cash that was obligated to the Authority in prior periods and subsequently received during the current fiscal year (i.e. accounts receivable, notes receivable, payables, etc.).

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Overview of Financial Statements (continued) Notes to the Basic Financial Statements - notes to the basic financial statements provide

additional information that is essential to a full understanding of the data provided. These notes give greater understanding on the overall activity of the Authority and how values are assigned to certain assets and liabilities and the longevity of these values. In addition, the notes reflect the impact (if any) of any uncertainties the Authority may face.

In addition to the basic financial statements listed above, our report includes supplemental information. This information is to provide more detail on the Authority’s various programs and the required information mandated by regulatory bodies that fund the Authority’s various programs. Financial Analysis

2015 2014 Net Change

Current assets 18,273,670$ 23,238,162$ (4,964,492)$

Capital assets, net 53,618,067 57,399,678 (3,781,611)

Other noncurrent assets 168,031,278 157,192,137 10,839,141

Total assets 239,923,015 237,829,977 2,093,038

Deferred outflows of resources 605,945 - 605,945

Current liabilities 3,481,617 5,656,762 (2,175,145)

Other noncurrent liabilities 1,006,289 1,041,800 (35,511)

Total liabilities 4,487,906 6,698,562 (2,210,656)

Deferred inflows of resources 2,928,614 - 2,928,614

Net investment in capital assets 53,618,067 57,399,678 (3,781,611)

Restricted 170,882,714 162,152,592 8,730,122

Unrestricted 8,611,659 11,579,145 (2,967,486)

Total net position 233,112,440$ 231,131,415$ 1,981,025$

Statement of Net Position

Current Assets decreased by $4,964,492 primarily due to a reduction in accounts receivable due from HUD and the City and subsequent capital activity and operation expenses. Net Capital Assets decreased by $3,781,611 primarily due to depreciation expense offset by capital asset renovations (see Note B-4). Other Noncurrent Assets increased by $10,839,141 primarily due to current year additions to the Authority’s notes receivable (see Note B-3) and the recording of the net plan assets in accordance with GASB 68 (see Note B-12). Deferred Outflows of Resources increased by $605,945 due to the implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pension, (“GASB No. 68”) and GASB Statement No. 71 Pension Transition for Contributions Made Subsequent to the Measurement Date (“GASB No. 71”) and the recording of changes in net pension liability and contributions subsequent to the measurement date (see Note B-6). Total Liabilities decreased by $2,210,656 primarily due to a decrease in accrued payables due to timing of payments at fiscal year-end.

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Financial Analysis (continued) Deferred Inflows of Resources increased by $2,928,614 due to the implementation of GASB No. 68 and 71, and changes in net pension liability (see Note B-6). Net Position - The difference between an organization’s assets and deferred outflows of resources and its liabilities and deferred inflows of resources is its net position. Total net position is categorized into three components.

1. Net investment in capital assets - the Authority’s investment in capital assets, net of accumulated depreciation, is due to the capital asset activity. The Authority had a current year decrease in this component of net position of $3,781,611 as a direct result of the changes in the Authority’s capital assets previously discussed.

2. Restricted - the component of net position which is subject to constraints imposed by law

or agreement consisting primarily of restricted notes receivable, debt service reserves, and, to a lesser extent, restricted funds for housing assistance payments. As of June 30, 2015, the Authority’s restricted component of net position was $170,882,714 which represents an increase of $8,730,122 over the prior year. This increase is primarily due to the following:

An increase of $8,576,657 due to activity in notes receivable.

An increase of $2,145,896 of other restricted escrows and reserves in the Public Housing program; and

A decrease of the Section 8 Housing Choice Voucher (“HCV”) Program Housing

Assistance Payments (HAP payments) reserves of $1,992,431 primarily due to the Authority utilizing HAP reserves in accordance with HUD rules and regulations.

3. Unrestricted - the component of the Authority’s net position that is neither invested in capital assets nor restricted. These resources are available to meet the Authority’s ongoing obligations to its residents and creditors. The Authority’s unrestricted component of net position is $8,611,659 as of June 30, 2015.

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Financial Analysis (continued)

2015 2014 Net Change Operating revenues

HUD revenues 59,895,438$ 71,493,210$ (11,597,772)$ Other revenue 12,408,590 13,386,528 (977,938)

Total operating revenues 72,304,028 84,879,738 (12,575,710) Operating expenses

Administrative 9,121,703 9,434,840 (313,137) Tenant services 609,691 818,044 (208,353) Utilities 2,715,344 2,720,967 (5,623) Maintenance 4,882,797 4,394,993 487,804 Protective services 432,061 367,114 64,947 General 8,313,791 14,132,549 (5,818,758) Depreciation 7,285,762 8,239,759 (953,997) Housing assistance payments 44,316,424 45,567,557 (1,251,133)

Total operating expenses 77,677,573 85,675,823 (7,998,250)

Operating income (loss) (5,373,545) (796,085) (4,577,460) Nonoperating revenues (expenses) 11,983 17,871 (5,888) Capital contributions 10,500,586 10,880,726 (380,140)

Change in net position 5,139,024 10,102,512 (4,963,488)

Total net position - beginning 231,131,415 221,028,903 10,102,512

Prior period adjustment (3,157,999) - (3,157,999)

Total net position - ending 233,112,440$ 231,131,415$ 1,981,025$

Statement of Revenues, Expenses, and Changes in Net Position

Total Operating Revenue decreased by $12,575,710 primarily due to a decrease in HUD subsidy of $6,721,032 related to the Capital Fund Program and $3,876,609 related to the Housing Choice Vouchers Program.

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Financial Analysis (continued) Total Operating Revenue (continued)

HUD operating revenues70%

Other revenue15%

Nonoperating revenues

<1%

Capital contributions

14%

Revenues

Total Operating Expenses are categorized by the Authority as administrative, tenant services, utilities, maintenance, protective services, general, depreciation and housing assistance payments. The Authority’s total operating expenses decreased by $7,998,250 over prior year primarily as a result of decreased expenses for general expenses of $5,818,758 and decreased expenses for Housing Assistance Payments of $1,251,133. Depreciation decreased during 2015 due to several capital assets being fully depreciated in the prior year.

Administrative12%

Tenant services

1%

Util ities3%

Maintenance6%

Protective services

1%General11%

Depreciation9%

Housing assistance payments

57%

Operating expenses

A Prior Period Adjustment was made in 2015 to establish a net pension liability and to account for contributions made after the prior year’s measurement date as part of the GASB No. 68 and GASB No. 71 implementation (see Note B-12).

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Capital Assets

As of June 30, 2015, the Authority decreased its net capital assets by $3,781,611. At the end of fiscal year 2015, the Authority had invested in capital assets of $53,618,067, net of depreciation. All increases to capital assets are normal planned additions to the federal modernization program as outlined in the agency plan and depreciation expense was responsible for the overall decrease in total capital assets. The following illustrates the capital asset values for 2015 and 2014.

2015 2014 Net Change

Land 13,167,777$ 13,167,777$ -$ Buildings and improvements 232,590,098 232,101,117 488,981 Furniture and equipment 2,767,951 2,767,951 - Construction in progress 4,300,770 1,285,600 3,015,170

Accumulated depreciation (199,208,529) (191,922,767) (7,285,762)

Total 53,618,067$ 57,399,678$ (3,781,611)$

Capital Assets

Debt Administration

The Authority had no debt activity during the fiscal year ended June 30, 2015.

Economic Factors

Significant economic factors affecting the Authority are as follows:

Federal funding levels provided by Congress to the Department of Housing and Urban Development;

Local labor supply and demand, which can affect salary and wage rates; Local inflationary, recessionary and employment trends, which can affect resident

incomes and therefore the amount of rental income; Inflationary pressure on utility rates, housing costs, supplies and other costs; Current trends in the housing market; Decreased income by tenants in the Public Housing program and participants in the

Section 8 program; and The decrease in available housing units in the Public Housing program due to the

demolition and disposition of sites has created a demand for additional Housing Choice Vouchers to house displaced Public Housing tenants.

Factors Affecting Next Year’s Budget

The Authority is primarily dependent upon HUD for the funding of its Low Rent Public Housing, Housing Choice Voucher and Capital Fund programs; therefore, the Authority is affected more by the federal budget than by local economic conditions.

The Authority continues to face decreases in federal funding provided by HUD as a result of congressional budget cuts, including the federal budget sequestration which took effect on March 1, 2013, under the Budget Control Act of 2011. These budget cuts will greatly affect the services which housing authorities across the nation can provide to their clients. The Authority is continually assessing the direct impact of these budget cuts to its programs and services.

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Request for Information This financial report is designed to provide a general overview of the Authority’s finances for all those with an interest in the Authority’s finances. Should additional information be required or questions arise regarding this financial report, contact our office in writing at the following address:

Memphis Housing Authority Attention: Executive Director 700 Adams Avenue Memphis, Tennessee 38105

Memphis Housing Authority

STATEMENT OF NET POSITION

June 30, 2015

ASSETS

CURRENT ASSETSCash and cash equivalents - unrestricted 11,479,113$ Cash and cash equivalents - restricted 3,189,897 Investments - unrestricted 763,284 Receivables, net 2,235,538 Prepaid expenses 425,315 Net pension asset 180,523

Total current assets 18,273,670

NONCURRENT ASSETSCash and cash equivalents - restricted 4,083,574 Notes, loans and mortgages receivable - restricted 163,947,704 Capital assets, net 53,618,067

Total assets 239,923,015

DEFERRED OUTFLOWS OF RESOURCES

Defined benefit pension plan 605,945

LIABILITIES

CURRENT LIABILITIESAccounts payable 2,682,840 Due to HUD 55,425 Accrued salaries and benefits 291,895 Tenant security deposits 156,485 Unearned revenue 127,801 Other current liabilities 167,171

Total current liabilities 3,481,617

NONCURRENT LIABILITIESAccrued compensated absences 949,372 Family self sufficiency escrow 56,917

Total liabilities 4,487,906

DEFERRED INFLOWS OF RESOURCES

Defined benefit pension plan 2,928,614

NET POSITIONNet investment in capital assets 53,618,067 Restricted 170,882,714 Unrestricted 8,611,659

Total net position 233,112,440$

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

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STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION

Year ended June 30, 2015

OPERATING REVENUESHUD operating revenue 59,895,438$ Other government operating grants 3,336,209 Tenant revenue, net 4,043,815 Other operating revenue 5,028,566

Total operating revenues 72,304,028

OPERATING EXPENSESAdministrative 9,121,703 Tenant services 609,691 Utilities 2,715,344 Maintenance 4,882,797 Protective services 432,061 General 8,313,791 Depreciation 7,285,762 Housing assistance payments 44,316,424

Total operating expenses 77,677,573

OPERATING LOSS (5,373,545)

NONOPERATING REVENUES Interest income - restricted 242 Interest income - unrestricted 11,741

Total nonoperating revenues 11,983

Change in net position before capital contributions (5,361,562)

CAPITAL CONTRIBUTIONS Other government capital grants 6,130,667 HUD capital grants 4,369,919

Total capital contributions 10,500,586

Change in net position 5,139,024

Total net position - beginning 231,131,415

Prior period adjustment (3,157,999)

Total net position - ending 233,112,440$


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STATEMENT OF CASH FLOWS


CASH FLOWS FROM OPERATING ACTIVITIES HUD operating grants received 61,444,414$ Collections from tenants 4,104,647 Collections from other sources 10,523,726 Payments to employees (6,443,387) Payments to suppliers (22,908,756) Housing assistance payments (44,348,035)

Net cash provided by operating activities 2,372,609

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES

Other government grants received 6,130,667 HUD capital grants received 4,369,919 Purchase of property and equipment (3,504,152)

Net cash provided by capital and related financing activities 6,996,434

CASH FLOWS FROM INVESTING ACTIVITIESInterest received 11,983 Purchase of investments 22,282 Advances in note receivable (10,293,418) Payments received in note receivable 1,624,133

Net cash used in investing activities (8,635,020)

NET INCREASE IN CASH AND CASH EQUIVALENTS 734,023 Cash and cash equivalents at beginning of year 18,018,561

Cash and cash equivalents at end of year 18,752,584$

Cash and cash equivalents - unrestricted 11,479,113$ Cash and cash equivalents - restricted 3,189,897 Cash and cash equivalents - restricted noncurrent 4,083,574

18,752,584$

AS PRESENTED IN THE ACCOMPANYING STATEMENT OF NET POSITION:


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STATEMENT OF CASH FLOWS (continued)


RECONCILIATION OF OPERATING LOSS TO NET CASH PROVIDED BY OPERATING ACTIVITIES

Operating loss (5,373,545)$ Adjustments to reconcile operating loss to net cash provided by operating activities

Depreciation 7,285,762 Provision for bad debt, net of recoveries 34,784 (Increase) decrease in assets and deferred outflows:

Receivables, net 2,115,994 Due from other governments 1,612,182 Prepaid expenses (76,060) Net pension asset (3,894,980) Defined benefit pension plan (49,487)

Increase (decrease) in liabilities and deferred inflows: Accounts payable (2,011,502) Due to HUD 12,434 Accrued salaries and benefits (74,754) Tenant security deposits (6,635) Unearned revenue 31,009 Other current liabilities (84,563) Accrued compensated absences (57,047) Family self sufficiency escrow (19,597) Defined benefit pension plan 2,928,614

Net cash provided by operating activities 2,372,609$


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NOTES TO BASIC FINANCIAL STATEMENTS

June 30, 2015

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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 1. Reporting entity The Memphis Housing Authority (the “Authority”), a quasi-governmental agency, was created in 1935 under Section 615, the Private Act of the General Assembly of the State of Tennessee and was established as a tax-exempt, quasi-governmental entity under the United States Housing Act of 1937. The Authority promotes the development and professional management of a variety of affordable housing opportunities, facilities and supportive services to nurture neighborhoods and provide economic development and self-sufficiency activities for residents while also assuring equal access to safe, quality housing for low and moderate income families throughout the community. The Authority's governing board consists of a seven member Board of Commissioners (the “Board”), which is appointed by the Mayor of the City of Memphis (the “City”). The Authority is not a component unit of the City, as defined in Governmental Accounting Standards Board (“GASB”) Statement No. 61, The Financial Reporting Entity:Omnibus, as the Board independently oversees the Authority’s operations. The definition of the reporting entity as defined by GASB Statement No. 61 is based primarily on the notion of financial accountability. A primary government is financially accountable for the organizations that make up its legal entity. It is also financially accountable for legally separate organizations if its officials appoint a voting majority of an organization’s governing body and either it is able to impose its will on that organization or there is a potential for the organization to provide specific financial benefits to, or to impose specific financial burdens on, the primary government. The Authority’s reporting entity is comprised of an enterprise fund which includes the activities of several housing programs and component units. Blended component units Some component units, despite being legally separate from the primary government, are so integrated with the primary government that they are in substance part of the primary government and are therefore blended with the primary government. The Authority’s operations include one blended component unit, MHA Fowler Multifamily, Inc. (“Fowler”), which is included in the basic financial statements and consists of a legally separate entity for which the Authority is financially accountable and has the same governing board as the Authority. Fowler is a Tennessee corporation formed on December 16, 2004 at the direction of the Board to operate and manage real estate in the Memphis, Tennessee area as the general partner of Fowler Multifamily Development, LP.



June 30, 2015

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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 1. Reporting entity (continued) Related parties The Authority has relationships with the for-profit limited partnerships listed below which were formed to develop and operate mixed finance housing properties. The Authority has no direct ownership interest in these entities but holds notes receivable as detailed in Note B-3 and provides program support on behalf of these entities.

Fairway Manor, LP; Ford Sr. Villas, LP; Horn Lake Apartments, LP; Lakeview Road, LP; Latham Terrace, LP; Legends Park East, LP; Legends Park West, LP; Legends Park North, LP; Lemoyne Gardens Family I MCU, LP; Lemoyne Gardens Senior MCU, LP; Levi Landing, LP; Lyons Ridge Apartments, LP; Memphis Land Bank, Inc.; Memphis Triangle Infrastructure, Inc.; Memphis Triangle Family, LLC; Memphis Triangle Phase IV, LLC; Memphis Triangle Senior, LLC; MLB University Place Two, LLC; Renaissance Village Apartments, LP; Thomas W. Jones and Dianne C. Jones; Uptown Square Apartments, LP; Uptown Senior Housing Development, LP; Uptown Village Apartments, LP; University Place Southeast, LP; University Place II, LP; University Place III, LP; and Village Parkway Apartments, LP.

These limited partnerships are not considered to be component units of the Authority and, therefore, are not a part of the reporting entity. As disclosed in Note A-4, the Authority has already entered into, or plans to enter into, Mixed-Finance Annual Contributions Contracts (“ACC”) with these entities.



June 30, 2015

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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 2. Government-wide and fund financial statements The government-wide financial statements report information about the reporting government as a whole excluding fiduciary activities. The statements distinguish between governmental and business-type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other nonexchange revenues. Business-type activities rely to a significant extent on fees and charges for support. Governments use fund accounting, whereby funds are generally organized into three major categories: governmental, proprietary and fiduciary. Each fund is accounted for by providing a separate set of self-balancing accounts that constitute its assets, deferred outflows, liabilities, deferred inflows, fund equity, revenues and expenditures/expenses. For financial reporting purposes, the Authority reports all of its operations as a single business activity in a single enterprise fund. Therefore, the government-wide and the fund financial statements are the same. Enterprise funds are proprietary funds. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating activities generally arise from providing services in connection with a proprietary fund’s principal activity. The operating revenues of the Authority consist primarily of rental charges to tenants and operating grants from the Department of Housing and Urban Development (“HUD”) and include, to a lesser extent, certain operating amounts of capital grants that offset operating expenses. Operating expenses for the Authority include the cost of administrative, maintenance, tenant services, general operations, utilities, protective services, depreciation and housing assistance payments. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses, except for capital contributions and transfers, which are presented separately. 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. 3. Measurement focus and basis of accounting Measurement focus is a term used to describe which transactions are recorded within the various financial statements. The proprietary fund utilizes an economic resources measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position and cash flows. All assets, deferred outflows, liabilities, and deferred inflows (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position.



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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 3. Measurement focus and basis of accounting (continued) Basis of accounting refers to when transactions are recorded regardless of the measurement focus applied. The basis of accounting used is similar to businesses in the private sector; thus, these funds are maintained on the accrual basis of accounting. Revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. For financial reporting purposes, the Authority considers its HUD grants associated with operations as operating revenue because these funds more closely represent revenues generated from operating activities rather than non-operating activities. HUD and City grants associated with capital acquisition and improvements are considered capital contributions and are presented after non-operating activity on the accompanying statement of revenues, expenses and changes in net position. 4. Summary of programs The accompanying financial statements include the activities of several housing programs subsidized by HUD and other federal entities at the Authority. A summary of each significant program is provided below. Low Rent Housing Programs The Low Rent Public Housing Programs consist of asset management projects (“AMPs”) which collect both operating and capital fund subsidy and various other related HUD grants both directly and indirectly. The purpose of the public housing program is to provide decent and affordable housing to low-income families at reduced rents. The developments are owned, maintained and managed by the Authority. The developments/units are acquired, developed and modernized under HUD’s Development, Capital Fund Program (“CFP”) grants and various other related HUD grants. Funding of the program’s operations and development is provided by annual federal contributions or appropriations, operating subsidies and tenant rentals (determined as a percentage of family income, adjusted for family composition and other allowances). Central Office Cost Center The Central Office Cost Center (“COCC”) is a business unit within the Authority that generates revenue through fees for service from the Authority’s AMPs, programs and activities.



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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 4. Summary of programs (continued) Housing Assistance Payments (“HAP”) Programs HAP Programs utilize existing privately owned family rental housing units to provide decent and affordable housing to low-income families. The Section 8 Housing Choice Voucher program is funded through federal housing assistance contributions from HUD for the difference between the approved landlord contract rent and the rent paid by the tenants. Administrative fees earned by the Authority from HUD for administering this program are intended to cover the cost of program operations. Mixed Financing The Authority has entered into, or plans to enter into, Mixed-Finance Annual Contributions Contracts approved by HUD to provide public housing funding for the ACC units at the developments owned by the limited partnerships listed as related parties in Note A-1. HUD, through the Authority, has provided funds through various grants for a number of the developments. As disclosed in Note B-3, a portion of the funds received by the Authority from HUD and the City have been loaned to the respective related parties and are presented as mortgage notes receivable. Revitalization of Severely Distressed Public Housing Program (“HOPE VI”) Revitalization grants enable the Authority to improve the living environment for public housing residents of severely distressed public housing projects through the demolition, substantial rehabilitation, reconfiguration, and/or replacement of severely distressed units. This helps to build sustainable mixed-income communities and provide well-coordinated, results-based supportive services that directly complement housing redevelopment and that help residents to achieve self-sufficiency. Funding for this program is provided by grants from HUD and the City as well as other sources. Resident Opportunities and Supportive Services Program/EDSS The Authority administers the economic development and support services program to provide reliable transportation for all elderly and disabled residents of the Authority and to contract for housekeeping and personal assistance for residents who meet certain criteria. Funding for these programs is provided by grants from HUD.



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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 4. Summary of programs (continued) CDBG and HOME The activities of these programs include redevelopment activities of the affected areas of the City undergoing revitalization of distressed public housing communities under the control of the Authority. These programs are designed to acquire, construct and manage property within the City, as well as to perform contractual service in the field of housing management, and to assist in providing housing for low and moderate-income individuals. Funding is received through the City’s Housing and Community Development Department (“HCD”). 5. Assets, deferred outflows, liabilities, deferred inflows and net position

a. Deposits and investments

For purposes of the statement of cash flows, the Authority considers all unrestricted highly liquid investments with an initial maturity of three months or less to be cash equivalents.

b. Receivables

Receivables consist of revenues earned during the fiscal year and not yet received. Amounts due from HUD and other governments represent reimbursable expenses or grant subsidies earned that have not been collected as of June 30, 2015, and are considered fully collectible. As of June 30, 2015, there are allowances for uncollectible amounts for doubtful accounts of $386,872. Allowances are determined by management based on the specific accounts and prior experience.

c. Notes, loans, and mortgages receivable A significant portion of the mortgage notes receivable represent loans to related parties (see Note A-1). The Authority subordinated mortgage loans to the related parties in conjunction with financing arrangements related to the development of mixed-income, multifamily rental communities, in most cases, on land owned by the Authority. Such loans are generally interest-bearing and are payable from cash flow from the property owned by each respective related party. Such loans are typically funded from CDBG Development, HOPE VI, and Capital fund grants, representing a significant portion of the construction costs associated with the Authority-assisted component of the mixed-income rental property. Because interest and principal on these loans are subordinated and are contingent on cash flow from the property, interest income recognition does not occur until payments are received or are reasonably expected to be received.



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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)

5. Assets, deferred outflows, liabilities, deferred inflows and net position (continued)

c. Notes, loans, and mortgages receivable (continued) The Authority also earns developer and other fees associated with the development project. Developer fees are recorded at the time of the financial closing for the public and private funds for a particular phase of the development. Any portion of these fees that are contingent on cash flow where the owner is not otherwise required to pay by a certain date is not recorded until such fees are received or is reasonably expected to be received. The Authority reviews its notes receivable for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the future net undiscounted cash flow expected to be generated and any estimated proceeds from the eventual disposition. If the note receivable is considered to be impaired, the impairment to be recognized is measured at the amount by which the carrying amount exceeds the fair value as determined from an appraisal, discounted cash flows analysis, or other valuation technique.

d. Capital assets The Authority’s policy is to capitalize assets with a value in excess of $5,000 and a useful life in excess of one year. The Authority capitalizes the costs of site acquisition and improvement, structures, equipment and direct development costs meeting the capitalization policy. Assets are valued at historical cost, or estimated historical cost if actual historical cost is not available, and contributed assets are valued at fair value on the date contributed. Donated capital assets are stated at their fair value on the date donated.

Depreciation has been provided using the straight-line method over the estimated useful lives, which range as follows:

Buildings 40 yearsCapital improvements 15 yearsFurniture, fixtures and equipment 5 - 15 years



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5. Assets, deferred outflows, liabilities, deferred inflows and net position (continued) e. Impairment of long-lived assets

Long-lived assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. An impairment loss, if any, is measured as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Management has determined that long-lived assets were not impaired at June 30, 2015.

f. Accrued compensated absences

Compensated absences are absences for which employees will be paid, such as sick leave, vacation, and other approved leave amounts. In accordance with GASB Statement No. 16, Accounting for Compensated Absences, the Authority accrues the liability for those absences that the employee has earned the rights to the benefits. Accrued amounts are based on the current salary rates. Full-time permanent employees are granted leave benefits to specified maximums depending on tenure with the Authority. Employees also earn annual sick leave at established rates. Vacation and sick pay are recorded as an expense and related liability in the year earned by the employees. g. Deferred outflows of resources

In addition to assets, the statement of net 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 future periods and thus, will not be recognized as an outflow of resources until then. The Authority’s balance of deferred outflows of resources relates to funding of the net pension asset (see Note B-6). h. Unearned revenues Unearned revenues include amounts collected before revenue recognition criteria are met. The unearned revenues consist of $2,742 of prepaid tenant rents and $125,059 of Housing Choice Voucher administrative fees.



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5. Assets, deferred outflows, liabilities, deferred inflows and net position (continued) i. Deferred inflows of resources

In addition to liabilities, the statement of net 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 future periods and thus, will not be recognized as an inflow of resources until then. The Authority’s balance of deferred inflows of resources relates to funding of the net pension asset (see Note B-6). j. Pensions

For purposes of measuring the net pension liability or asset, deferred outflows of resources and deferred inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the Authority’s participation in the Public Employee Retirement Plan of the Tennessee Consolidated Retirement System (“TCRS”), and additions to and deductions from the Authority’s fiduciary net position have been determined on the same basis as they are reported by the TCRS for the Public Employee Retirement Plan. For this purpose, benefits (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms of the Public Employee Retirement Plan of TCRS. Investments are reported at fair value. k. Eliminations of interprogram activity

For financial reporting purposes, certain amounts are internal and are therefore eliminated in the accompanying financial statements. The following have been eliminated from the financial statements:

i.) Interprogram due to/from

In the normal course of operations, certain programs may pay for common costs or advance funds for operations that create interprogram receivables or payables. As of June 30, 2015, the interprogram receivables and payables of $2,777 net to zero and are eliminated for the presentation of the Authority as a whole. ii.) Fee for service

The Authority’s COCC internally charges fees to the AMPs and programs of the Authority. These charges may include management fees, bookkeeping fees, and asset management fees. For financial reporting purposes $2,809,225 of fee for service charges have been eliminated for the year ended June 30, 2015.



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5. Assets, deferred outflows, liabilities, deferred inflows and net position (continued) l. Net position

In accordance with GASB Statement No. 65, as amended, total equity as of June 30, 2015, is classified into three components of net position:

i.) Net investment in capital assets

This category consists of capital assets (including restricted capital assets), net of accumulated depreciation and reduced by any outstanding balances of bonds, mortgages, notes or other borrowings that are attributable to the acquisition, construction, and improvements of those assets.

ii.) Restricted component of net position

This category consists of components of net position restricted in their use by (1) external groups such as grantors, creditors or laws and regulations of other governments; or (2) law through constitutional provisions or enabling legislation. The statement of net position of the Authority reports $170,882,714 of restricted net position which consists of the following:

$163,947,704 of mortgage notes receivable that were loaned using HUD grant funds and therefore are restricted upon repayment by HUD guidelines (see Note B-3)

$4,026,657 of other restricted escrows and reserves in the public housing program; and

$2,908,353 of unspent housing assistance payments in the Housing Choice Voucher Program (see Note B-9-b).

iii.) Unrestricted component of net position

This category includes all of the remaining components of net position that do not meet the definition of the other two components.

6. Tenant and other revenue As provided by GASB Statement No. 34 and related guidance, tenant revenue is presented in the financial statements net of the bad debt expense for uncollectible amounts of $34,784.



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7. Use of estimates 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, deferred outflows, liabilities, deferred inflows, and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 8. Budgets Budgets are prepared on an annual basis for each significant program and are used as a management tool throughout the accounting cycle. Budgets are not, however, legally adopted nor required in the basic financial statement presentation.

9. Impact of recently issued accounting principles

In February 2015, the GASB issued Statement No. 72, Fair Value Measurement and Application, to enhance the transparency and comparability of fair value measurements and disclosures in state and local governments’ financial statements. This statement is effective for the Authority’s June 30, 2017 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements. In June 2015, the GASB issued Statement No. 73, Accounting and Financial Reporting for Pensions and Related Assets that are not within the Scope of GASB Statement 68 and Amendments to Certain Provisions of GASB Statements 67 and 68, which clarifies certain provisions of GASB No. 68, Accounting and Financial Reporting for Pensions and it establishes requirements for defined contribution pensions that was not within the scope of GASB Statement No. 68. This statement is effective for the Authority’s June 30, 2017 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements. In January 2016, the GASB issued Statement No. 80, Blending Requirements for Certain Component Units - An Amendment of GASB Statement No. 14, which amends GASB Statement No. 14, The Financial Reporting Entity, as amended, by addressing the blending of a component unit incorporated as a not-for-profit corporation in which the primary government is the sole corporate member. This statement is effective for the Authority’s June 30, 2017 fiscal year end. Management is currently evaluating the impact of the adoption of this statement on the Authority’s financial statements.



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NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 10. Income taxes The Authority is a quasi-governmental entity and is exempt from federal and state income taxes. Accordingly, no provision for federal or state income taxes has been made in the financial statements. The Authority’s blended component unit, Fowler, is subject to the income tax provisions of Tennessee Statutes and the Internal Revenue Code. The Authority, on behalf of Fowler, accounts for income taxes in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 740, Income Taxes, which clarifies that accounting and disclosure requirements for uncertainty in tax positions. It requires a two-step approach to evaluate tax positions and determine if they should be recognized in the financial statements. The two-step approach involves recognizing any tax positions that are “more likely than not” to occur and then measuring those positions to determine if they are recognizable in the financial statements. Management regularly reviews and analyzes all tax positions and has determined that no aggressive tax positions have been taken. Fowler’s income tax filings are subject to audit by various taxing authorities. The open audit periods for Fowler are 2011 through 2015. 11. Leasing activities The Authority is the lessor of dwelling units to low-income residents. The rents under the leases are determined generally by the resident’s income as adjusted for eligible deductions regulated by HUD, although the resident may opt for a flat rent. Leases may be cancelled by the lessee at any time or renewed every year. The Authority may cancel the leases only for cause. Revenues associated with these leases are recorded in the accompanying financial statements and related schedules within tenant revenue.

NOTE B - DETAILED NOTES 1. Deposits and investments As of June 30, 2015, the carrying value of the Authority’s cash and cash equivalents consist of demand deposits of $18,752,584. As of June 30, 2015, the fair value of the Authority’s investments was $763,284.



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NOTE B - DETAILED NOTES (continued) 1. Deposits and investments (continued)

In accordance with GASB Statement No. 40, the Authority’s exposure to deposit and investment risk is disclosed as follows: Custodial Credit Risk. Custodial credit risk is the risk that in the event of a bank failure, the Authority’s deposits or investments may not be returned. The Authority’s deposit policy for custodial credit risk requires collateral to be held in the Authority’s name by its agent or by the bank’s trust department. The Authority’s deposits are insured by the Federal Depository Insurance Corporation up to $250,000 per financial institution, per depositor. As of June 30, 2015, the Authority’s total deposits were fully secured by either the FDIC or pledged collateral in accordance with HUD requirements.

Interest Rate Risk. Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. The Authority’s policy is to manage its exposure to declines in fair values by limiting the term of maturity of its investment portfolio, investing in only HUD allowed investments, and monitoring of the Authority’s investments. As of June 30, 2015, the Authority’s risk of changes in interest rates is minimal since the maturities of their investments are less than one year.

Credit Risk. Credit risk is the risk that an issuer or other counterparty to an investment will not fulfill its obligations. It is the Authority’s policy to follow the HUD regulations by only having direct investments and investments through mutual funds to direct obligations, guaranteed obligations, or obligations of the agencies of the United States of America. As of June 30, 2015, the Authority mitigated their exposure to credit risk by primarily investing in certificates of deposit. In addition to certificates of deposit, the Authority invests in money market funds with a fair value of $78,702 that has a credit rating of AAA at June 30, 2015. Restricted Cash. As of June 30, 2015, restricted cash consists of:

CurrentVoucher HAP reserves 2,908,353$ Tenant security deposits 156,485 Unearned revenues - HCV 125,059

Subtotal current 3,189,897 Noncurrent

Section 8 FSS escrow 40,934 Public Housing FSS escrow 15,983 Modernization 1,864,824 Reserve for replacements 2,161,833

Subtotal noncurrent 4,083,574

7,273,471$



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NOTE B - DETAILED NOTES (continued)

2. Receivables, net As of June 30, 2015, receivables, net, as presented in the accompanying statement of net position consist of:

Due from HUD 778,773$ Due from the City 1,453,804 Due from other public housing authorities 200,749 Fraud recovery receivable 44,720 Tenant accounts receivable 29,032 Due for HAP overpayments 48,809 Miscellaneous 92,220

2,648,107 Allowance for doubtful accounts - fraud (25,697) Allowance for doubtful accounts - other governments (386,872)

2,235,538$

3. Notes, loans, and mortgages receivable HUD and the City have provided funding to the Authority for the development of the mixed-finance properties owned by related parties of the Authority. As funds were received by the Authority from HUD and the City, they were loaned to the respective related parties. When the notes, which originated through HUD and the City, grants, are paid back they will be considered restricted program income to be used for similar project developments in the future. As of June 30, 2015, all $163,947,704 of the notes, loans, and mortgages receivable is classified as restricted.



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3. Notes, loans, and mortgages receivable (continued) As of June 30, 2015, notes receivable consist of the following:

Owner Entity Date Rate Maturity ReceivableFairway Manor, LP 09/09/2011 74.89% 11/09/2052 8,914,325$ Ford Sr. Villas, LP 03/15/2007 3.50% 06/07/2050 4,493,829 Horn Lake Apartments, LP (Note A) 07/11/2008 4.60% 07/11/2057 3,969,577 Horn Lake Apartments, LP (Note B) 07/11/2008 0.00% 07/11/2057 2,300,000 Lakeview Road, LP 11/12/2009 0.00% 10/01/2049 9,429,273 Latham Terrace, LP 01/01/2006 4.72% 12/31/2047 5,487,662 Legends Park East, LP (Note A) 08/28/2008 8.00% 08/28/2048 2,800,000 Legends Park East, LP (Note B) 08/28/2008 8.00% 08/28/2048 7,000,000 Legends Park North, LP 11/07/2011 7.00% 11/07/2066 5,073,973 Legends Park West, LP 09/10/2010 0.00% 09/09/2055 8,172,425 Lemoyne Garden Senior MCU, LP (Note A) 09/08/2000 6.09% 09/08/2040 920,000 Lemoyne Garden Senior MCU, LP (Note B) 09/08/2000 0.50% 09/08/2050 2,935,740 Lemoyne Garden Family I MCU, LP (Note C) 11/29/2000 0.50% 11/29/2040 7,306,586 Levi Landing, LP 10/01/2009 0.00% 10/01/2049 2,423,600 Lyons Ridge Apartments, LP 03/08/2010 0.00% 03/08/2052 4,255,720 Memphis Triangle Senior, LLC 12/19/2011 0.00% 12/19/2051 8,387,344 Memphis Triangle Family, LLC 09/14/2011 0.00% 09/14/2051 10,328,800 Memphis Triangle Infrastructure, Inc. 09/30/2013 0.00% 09/30/2053 11,011,019 Memphis Triangle Phase IV, LLC 12/01/2014 0.00% 11/30/2054 5,482,733 MLB University Place Two, LLC 05/31/2007 0.00% 05/31/2052 7,347,928 Renaissance Village Apartments, LP (Note A) 01/01/2003 4.09% 01/01/2043 685,000 Renaissance Village Apartments, LP (Note B) 01/01/2003 0.00% 01/01/2043 1,904,042 Thomas W. Jones, Jr. and Dianne C. Jones 10/10/2008 3.00% 12/15/2034 355,387 University Place II, LP 05/31/2007 4.90% 05/31/2047 1,965,957 University Place III, LP 08/08/2008 5.00% 08/08/2053 7,651,782 University Place Southeast, LP 05/11/2006 0.00% 11/11/2052 5,898,332 Uptown Senior Housing Development, LP 04/19/2006 0.00% 04/19/2046 4,943,000 Uptown Square Apartments, LP 02/20/2003 0.00% 02/20/2043 14,410,609 Uptown Village Apartments, LP 03/05/2004 0.00% 03/05/2044 4,075,000 Village Parkway Apartments, LP 03/08/2010 0.00% 03/10/2052 4,373,448

Total notes receivable 164,303,091

Less: allowance of doubtful accounts (355,387)

Total long-term notes receivable 163,947,704$



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3. Notes, loans, and mortgages receivable (continued) Fairway Manor, LP - A permanent interest-free loan for $8,914,325 was provided for the development of a 96 unit multifamily apartment complex of which 68 units shall be operated as public housing. The loan matures on November 9, 2052. No payments were received on this note in 2015. Ford Senior Villas, LP - A construction loan for $4,493,829 was provided to Ford Senior Villas, LP on March 15, 2007, for the construction of 72 housing units, all of which shall be operated as public housing. Principal and interest are payable out of cash flows and all unpaid amounts are due at maturity on June 7, 2050. Interest on this loan accrues at 3.50 percent; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. No payments were received on this note during 2015. Horn Lake Apartments, LP - As part of the redevelopment of the former Horn Lake Apartments, MHA provided loans totaling $6,269,577 for the construction of a 71 unit low- income multifamily apartment complex, Austin Park. The loan matures on July 11, 2057. Interest on this loan accrues at 4.60 percent annually; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. No payments were received on this note during 2015. Lakeview Road, LP - A permanent financing interest-free loan for $9,429,273 was provided for Lakeview Road Apartments, a 152 unit multifamily apartment complex, of which 76 units shall be operated as public housing. The loan matures on October 1, 2049. No payments were received on this note during 2015. Latham Terrace, LP - A construction loan for $5,487,662 was provided to Latham Terrace, LP on January 1, 2006, for the construction of an 80 unit low-income housing complex. This loan was converted to a permanent financing subsequent to June 30, 2008 and matures on December 31, 2047. Interest on this loan accrues at 4.72 percent; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. Total advances in the amount of $425,870 were made to the note during 2015.



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3. Notes, loans, and mortgages receivable (continued) Legends Park East, LP - As part of the redevelopment of the former Dixie Homes site, MHA provided loans totaling $9,800,000 for the construction of 134 housing units of which 53 units shall be operated as public housing, and other improvements such as landscaping, curbing and paving. The loan matures on August 28, 2048. Interest on this loan accrues at 8.00 percent annually; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. No payments were received on this note during 2015. Legends Park North, LP - A construction loan for $5,105,000 was provided for the development of an 81 unit apartment complex, of which 44 units shall be operated as public housing. The loan matures on November 7, 2066 and has an annual interest rate of 7.00 percent during construction, 0.00 percent thereafter. A payment in the amount of $31,027 was received on this note in 2015. Legends Park West, LP - An interest-free construction loan of up to $8,401,339 was provided for the development and construction of Legends Park West, a 100 unit multifamily apartment complex, of which 48 units shall be operated as public housing. The loan matures on September 9, 2055. A payment in the amount of $108,934 was received on this note during 2015. Lemoyne Garden Senior, LP and Family, LP Notes - As part of the redevelopment of the Lemoyne Gardens community, MHA provided three loans during 2000 to assist in the construction of College Park Family and College Park Senior development.

Note A - A loan of $920,000 was provided to Lemoyne Gardens Senior, LP on September 8, 2000. Interest on the outstanding principal and on any unpaid accrued interest on this note shall compound annually until the maturity date, September 8, 2040. Interest on this loan accrues at 6.09 percent; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. Payment of this note is secured by a Deed of Trust and Security Agreement and amounts on this loan are considered non-current. No payments were received on this note during 2015.



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3. Notes, loans, and mortgages receivable (continued) Lemoyne Garden Senior, LP and Family, LP Notes (continued)

Note B - As part of the construction of the senior unit component of the redevelopment of Lemoyne Gardens, MHA provided a low interest sponsor loan to Lemoyne Gardens Senior, LP on September 8, 2000 of $2,935,740. Interest on the outstanding principal and on any unpaid accrued interest on this note shall compound annually until the maturity date, September 8, 2050. Interest on this loan accrues at 0.50 percent; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. Payment of this note is secured by a Deed of Trust and Security Agreement and all amounts on this loan are considered non-current. No payments were received on this note during 2015. Note C - As part of the construction of the family unit component of the redevelopment of Lemoyne Gardens, MHA provided a low interest sponsor loan to Lemoyne Gardens Family, LP on November 29, 2000 of up to $7,838,768. Interest on the outstanding principal and on any unpaid accrued interest on this note shall compound annually until the maturity date, November 29, 2040. Interest on this loan accrues at 0.50 percent; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as a result, all accrued interest amounts are offset by an allowance for uncollectible interest. Payment of this note is secured by a Deed of Trust and Security Agreement and all amounts on this loan are considered non-current. No payments were received on this note during 2015.

Levi Landing, LP - A permanent financing interest-free loan for $2,423,600 was provided for Levi Landing, a 32 unit multifamily apartment complex, of which 16 units shall be operated as public housing. The loan matures on October 1, 2049. No payments were received on this note during 2015.

Lyons Ridge Apartments, LP - A construction loan for $4,255,720 was provided for the development and construction of a 102 unit elderly apartment complex. This loan matures on March 8, 2052. Total advances in the amount of $5,720 were made on this note in 2015.



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3. Notes, loans, and mortgages receivable (continued) Memphis Land Bank, Inc. - As part of the development of the Agnes Place Apartments by Memphis Land Bank (MLB) on the site of the former Hawkins Mill Apartments, MHA provided to MLB $926,281 to be used as permanent financing for the development of 26 units to be leased to very low-income families. The terms of this agreement provide for a 10 percent reduction in the balance for every year of the 10 year provisionary period. During the provisionary period, MLB agrees to make 100 percent of the residential units available to low to moderate income families and 26 units available to very low-income families. In the event MLB fails to meet these criteria during that period, MLB agrees to repay the current pro-rata balance to MHA. The final payment of $92,628 on the balance on the note was received in 2015. Memphis Triangle Senior, LLC (Cleaborn Homes Phase I) - An interest-free loan not to exceed $12,800,000 was provided for the development and revitalization of Cleaborn Homes HOPE VI Redevelopment, Phase I, which shall include 84 units, of which 44 units shall be operated as public housing, together with such other improvements as may be necessary such as landscaping, curbing and paving. The loan matures on December 19, 2051. No payments were received on this note during 2015. Memphis Triangle Family, LLC (Cleaborn Homes Phase II) - An interest-free loan for $11,475,000 was provided for the development and revitalization of Cleaborn Pointe Heritage Landing Phase II, which shall include 106 units, of which 36 units shall be operated as public housing, together with such other improvements as may be necessary such as landscaping, curbing and paving. The loan matures September 14, 2051. Total payments received during 2015 were $97,061. Memphis Triangle Infrastructure, Inc. (Cleaborn Homes Phase III) - An interest-free loan not to exceed $8,446,309 was provided for the development and revitalization of Cleaborn Pointe Heritage Landing Phase III, which shall include 105 units, of which 32 units shall be operated as public housing, together with such other improvements as may be necessary such as landscaping, curbing and paving. The loan matures September 30, 2053. Total advances made during 2015 were $3,997,174 and total payments received during 2015 were $478,038. MLB University Place Two, LLC - An interest-free loan for $7,347,928 was provided to MLB University Place Two, LLC on May 31, 2007, the proceeds of which are to be used to fund a construction loan in the same amount from MLB University Place Two, LLC to University Place II, LP, for the construction of 151 housing units, of which 44 units shall be operated as public housing. Principal is payable only from the interest and principal payments made by University Place II, LP to MLB University Place Two, LLC, with a final maturity date of May 31, 2052. MLB University Place Two, LLC is under no obligation to make any payments under the note from funds other than the payments it receives from University Place II, LP. No payments were received on this note during 2015.



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35


3. Notes, loans, and mortgages receivable (continued)

Renaissance Village Apartments, LP - As part of the redevelopment of the Hurt Village community, MHA provided two loans on January 1, 2004 to assist in the construction of an 88 unit mixed-income community on approximately five acres that was secured by a subordinate mortgage on the project.

Note A - The second priority loan of $685,000 was provided on January 1, 2003, and interest accrues at 4.09 percent and matures on January 1, 2043. Debt services will be paid annually from 50 percent of available surplus cash as defined in the agreement. Cash flows are not guaranteed to be sufficient to repay all accrued interest and as result, all accrued interest amounts are offset by an allowance for uncollectible interest. Notes receivable amounts on this loan are considered non-current. No payments were received on this note during 2015.

Note B - As part of the redevelopment of Hurt Village, MHA provided an interest-free sponsor loan on January 1, 2003 for $1,904,042. This loan is classified as a third priority loan and matures on January 1, 2043. Debt service payments will begin after the second priority loan is paid off and will be paid annually from 50 percent of available surplus cash as defined in the agreement. Notes receivable amounts on this loan are considered non-current. No payments were received on this note during 2015.

Thomas W. Jones, Jr. and Dianne C. Jones - As a part of the redevelopment of the University Place area, the Authority acquired property owned by Thomas W. Jones, Jr. and Dianne C. Jones. To assist the Jones’ with relocating, on December 21, 2004, a loan of $355,387 was provided with an interest rate of 6.00 percent to purchase property located at 241 East Industrial Drive, Memphis, Tennessee. The borrower agreed to make monthly principal and interest payments totaling $2,557 through December 15, 2034. The loan is secured by a deed of trust on the above real estate. No payments were received on this note during 2015. Due to the uncertainty of collection of this note, the Authority has fully allowanced the loan.

University Place II, LP - A construction loan of up to $2,000,000 was provided to University Place II, LP on May 31, 2007, for the construction of 151 housing units, of which 44 units shall be operated as public housing. Interest on this loan accrues at 8.00 percent to a maximum of $64,046. Thereafter, interest on the outstanding balance shall accrue at 4.90 percent. Interest and principal are payable out of cash flows and all unpaid amounts are due at maturity on May 31, 2047. Cash flow is not guaranteed to be sufficient to repay all accrued interest and as result, all accrued interest amounts are offset by an allowance for uncollectible interest. A payment in the amount of $34,043 was received on this note during 2015.



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3. Notes, loans, and mortgages receivable (continued) University Place III, LP - As part of the redevelopment of the former Lamar Terrace site, MHA provided two loans totaling up to $7,660,685 for the construction of 136 housing units, of which 26 units shall be operated as public housing, and other improvements such as landscaping, curbing and paving. The loans mature on August 8, 2048. Interest on the loans accrues at 5.00 percent annually; however, cash flow is not guaranteed to be sufficient to repay all accrued interest and as result, all accrued interest amounts are offset by an allowance for uncollectible interest. Total payments in the amount of $4,542 were received on these notes during 2015. University Place Southeast, LP – An interest-free construction loan of up to $7,009,117 was provided to University Place Southeast, LP on May 11, 2006, for the construction of a 118 unit senior development, of which 82 units shall be operated as public housing. Interest and principal are payable out of cash flows and all unpaid amounts are due at maturity of November 11, 2052. Total payments in the amount of $23,101 were received on this note during 2015. Uptown Senior Housing Development, LP - As part of the redevelopment of the Uptown Village community, MHA provided an interest-free sponsor loan on April 19, 2006 of up to $4,943,000 to assist in the construction of Uptown Village. This loan matures on April 19, 2046. Debt service payments are due annually on July 1, and will be paid from a percentage of available surplus cash as defined in the agreement. Note receivable amounts on this loan are considered non-current. No payments were received on this note during 2015. Uptown Square Apartments, LP - As part of the redevelopment of the Uptown Square area, MHA provided a loan to assist in the construction of a 347 unit mixed-income community on approximately 20 acres that was secured by a subordinate mortgage on the project. An interest-free sponsor loan for up to $14,510,609 was provided to Uptown Square Apartments on February 20, 2003. The Owner Entity will be expected to pay the entire outstanding principal balance on February 20, 2043. No payments were received on this note during 2015. Uptown Village Apartments, LP - As part of the redevelopment of the Uptown Village community, MHA provided an interest-free sponsor loan on March 5, 2004 of up to $4,105,867 to assist in the construction of Uptown Village. This loan is classified as a third priority loan and matures on March 5, 2044. Debt service payments will begin after the second priority loan is paid off and will be paid annually from 50 percent of available surplus cash as defined in the agreement. Notes receivable amounts on this loan are considered non-current. No payments were received on this note during 2015.



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3. Notes, loans, and mortgages receivable (continued)

Village Parkway, LP - An interest-free construction loan for $4,373,448 was provided for the development and construction of a 116 unit multifamily apartment complex known as Village at Cypresswood. The loan matures on March 10, 2052. Total advances of $381,921 were made on this note during 2015.

4. Capital Assets, net

A summary of changes in capital assets is as follows:

Balance atJuly 1,2014

Transfers in/ Additions

Transfers out/ Deletions

Balance atJune 30,

2015Non-depreciable:

Land 13,167,777$ -$ -$ 13,167,777$ Construction in progress 1,285,600 3,504,152 (488,982) 4,300,770

Total non-depreciable 14,453,377 3,504,152 (488,982) 17,468,547 Depreciated:

Buildings and improvements 232,101,117 488,981 - 232,590,098 Furniture and equipment 2,767,951 - - 2,767,951

Total depreciated 234,869,068 488,981 - 235,358,049

Total capital assets 249,322,445 3,993,133 (488,982) 252,826,596 Accumulated depreciation:

Buildings and improvements (189,183,317) (7,259,886) - (196,443,203) Furniture and equipment (2,739,450) (25,876) - (2,765,326)

Less accumulated depreciation (191,922,767) (7,285,762) - (199,208,529)

Capital assets, net 57,399,678$ (3,292,629)$ (488,982)$ 53,618,067$

During the year ended June 30, 2015, capital assets additions primarily consisted of renovations to the Barry Towers, Venson Center, Borda Towers, and College Park Family II Public Housing sites in the amounts of $734,637, $689,046, $689,801, and $452,293, respectively. These renovations utilized CFP funding.

5. Noncurrent liabilities

A summary of changes in noncurrent liabilities is as follows: Payable at

July 1, 2014 Additions Reductions Payable at

June 30, 2015Due withinone year

FSS Escrow - Public Housing 10,683$ 8,443$ (3,143)$ 15,983$ -$ FSS Escrow - Section 8 28,288 23,375 (10,729) 40,934 - Net pension liability (asset) 3,714,457 3,241,974 (7,136,954) (180,523) (180,523) Compensated absences 1,111,905 22,250 (79,297) 1,054,858 105,486

Total noncurrent liabilities 4,865,333$ 3,296,042$ (7,230,123)$ 931,252$ (75,037)$



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NOTE B - DETAILED NOTES (continued) 6. Retirement plans Plan description. Employees of Memphis Housing Authority are provided a defined benefit pension plan through the Public Employee Retirement Plan, an agent multiple-employer pension plan administered by the TCRS. The TCRS was created by state statute under Tennessee Code Annotated Title 8, Chapters 34-37. The TCRS Board of Trustees is responsible for the proper operation and administration of the TCRS. The Tennessee Treasury Department, an agency in the legislative branch of state government, administers the plans of the TCRS. The TCRS issues a publically available financial report that can be obtained at www.treasury.tn.gov/tcrs. Benefits provided. Tennessee Code Annotated Title 8, Chapters 34-37 establishes the benefit terms and can be amended only by the Tennessee General Assembly. The chief legislative body may adopt the benefit terms permitted by statute. Members are eligible to retire with an unreduced benefit at age 60 with 5 years of service credit or after 30 years of service credit regardless of age. Benefits are determined by a formula using the member’s highest five consecutive year average compensation and the member’s years of service credit. Reduced benefits for early retirement are available at age 55 and vested. Members vest with five years of service credit. Service related disability benefits are provided regardless of length of service. Five years of service is required for non-service related disability eligibility. The service related and non-service related disability benefits are determined in the same manner as a service retirement benefit but are reduced 10 percent and include projected service credits. A variety of death benefits are available under various eligibility criteria. Member and beneficiary annuitants are entitled to automatic cost of living adjustments (“COLAs”) after retirement. A COLA is granted each July for annuitants retired prior to the 2nd of July of the previous year. The COLA is based on the change in the consumer price index (“CPI”) during the prior calendar year, capped at 3 percent, and applied to the current benefit. No COLA is granted if the change in CPI is less than one-half percent. A one percent COLA is granted if the CPI change is between one-half percent and one percent. A member who leaves employment may withdraw their employee contributions, plus any accumulated interest. Employees covered by benefit terms. At the measurement date of June 30, 2014, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefits 212

Inactive employees entitled to but not yet receiving benefits 197

Active employees 77

486



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NOTE B - DETAILED NOTES (continued) 6. Retirement plans (continued) Contributions. Contributions for employees are established in the statutes governing the TCRS and may only be changed by the Tennessee General Assembly. Employees contribute 5 percent of salary. The Authority makes employer contributions at the rate set by the Board of Trustees as determined by an actuarial valuation. For the year ended June 30, 2015, employer contributions for the Authority were $605,945 based on a rate of 14.13 percent of covered payroll. By law, employer contributions are required to be paid. The TCRS may intercept the Authority’s state shared taxes if required employer contributions are not remitted. The employer’s actuarially determined contribution (ADC) and member contributions are expected to finance the costs of benefits earned by members during the year, the cost of administration, as well as an amortized portion of any unfunded liability. Net Pension Liability (Asset) The Authority’s net pension liability (asset) was measured as of June 30, 2014, and the total pension liability used to calculate net pension liability (asset) was determined by an actuarial valuation as of that date. Actuarial assumptions. The total pension liability as of June 30, 2014 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement:

Inflation 3.0 percent

Salary increases Graded salary ranges from 8.97 to 3.71 percent based onage, including inflation, averaging 4.25 percent

Investment Rate of Return 7.5 percent, net of investment expense, including inflation

Retirement age Pattern of retirement determined by experience study

Mortality Customized table based on actual experience including anadjustment for some anticipated improvement

Cost of Living Adjustments 2.5 percent

Mortality rates were based on actual experience from the June 30, 2012 actuarial experience study adjusted for some of the expected future improvement in life expectancy. The actuarial assumptions used in the June 30, 2014 actuarial valuation were based on the results of an actuarial experience study performed for the period July 1, 2008 through June 30, 2012.



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6. Retirement plans (continued) The demographic assumptions were adjusted to more closely reflect actual and expected future experience. The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees in conjunction with the June 30, 2012 actuarial experience study by considering the following three techniques: (1) the 25-year historical return of the TCRS at June 30, 2012, (2) the historical market returns of asset classes from 1926 to 2012 using the TCRS investment policy asset allocation, and (3) capital market projections that were utilized as a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. Four sources of capital market projections were blended and utilized in the third technique. The blended capital market projection established 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 inflation of 3 percent. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:

Asset Class Long-Term Expected Real Rate of Return Target Allocation

U.S. equity 6.46% 33%Developed market international equity 6.26% 17%Emerging market international equity 6.40% 5%Private equity and strategic lending 4.61% 8%U.S. fixed income 0.98% 29%Real estate 4.73% 7%Short-term securities 0.00% 1%

100% The long-term expected rate of return on pension plan investments was established by the TCRS Board of Trustees as 7.5 percent based on a blending of the three factors described above. Discount rate. The discount rate used to measure the total pension liability was 7.5 percent. The projection of cash flows used to determine the discount rate assumed that employee contributions will be made at the current rate and that contributions from the Authority will be made at the actuarially determined contribution rate pursuant to an actuarial valuation in accordance with the funding policy of the TCRS Board of Trustees and as required to be paid by state statute. Based on those assumptions, the pension plan’s fiduciary net position was projected to be available to make projected future benefit payments of current active and inactive 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.



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NOTE B - DETAILED NOTES (continued) 6. Retirement plans (continued) Changes in the Net Pension Liability (Asset)

Increase (Decrease)

Total Pension Liability

Plan Fiduciary Net Position

Net Pension Liability (Asset)

(a) (b) (a)-(b) Balance at June 30, 2013 39,331,902$ 35,617,445$ 3,714,457$ Changes for the year:

Service cost 343,429 - 343,429 Interest 2,893,203 - 2,893,203 Differences between expected and actual experience (802,565) - (802,565) Contributions - employers - 556,458 (556,458) Contributions - employees - 8,904 (8,904) Net Investment income - 5,769,027 (5,769,027) Benefit payments, including refunds of employee contributions (2,198,584) (2,198,584) - Administrative expense - (5,342) 5,342

Net changes 235,483 4,130,463 (3,894,980)

Balance at June 30, 2014 39,567,385$ 39,747,908$ (180,523)$

Sensitivity of the net pension liability (asset) to changes in the discount rate. The following presents the net pension liability (asset) of the Authority calculated using the discount rate of 7.5 percent, as well as what the net pension liability (asset) would be if it were calculated using a discount rate that is 1-percentage-point lower (6.5 percent) or 1-percentage- point higher (8.5 percent) than the current rate:

1% Decrease (6.5%)

Current Discount

Rate (7.5%) 1% Increase

(8.5%) The Authority's net pension liability (asset) 4,316,733$ (180,523)$ (3,978,566)$

Pension Expense (Income) and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions Pension income. For the year ended June 30, 2015, the Authority recognized pension income of $409,908.



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6. Retirement plans (continued) Deferred outflows of resources and deferred inflows of resources. For the year ended June 30, 2015, the Authority reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:

Deferred Outflows ofResources

Deferred Inflows of Resources

Differences between expected and actual experience -$ 401,282$ Net difference between projected and actual earnings on pension plan investments - 2,527,332 Contributions subsequent to the measurement date of June 30, 2014 605,945 (not applicable)

Total 605,945$ 2,928,614$

The amount shown above for “Contributions subsequent to the measurement date of June 30, 2014,” will be recognized as a reduction (increase) to net pension liability (asset) in the following measurement period. Amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows:

Year Ended June 30: 2016 (1,033,116)$ 2017 (631,833) 2018 (631,833) 2019 (631,833) 2020 - Thereafter -

In the table shown above, positive amounts will increase pension expense while negative amounts will decrease pension expense. Payable to the Pension Plan The Authority had no outstanding amount of contributions to the pension plan required at the year ended June 30, 2015.



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NOTE B - DETAILED NOTES (continued) 7. Risk management The Authority is exposed to various risks of loss related to torts; theft of, damages to, and destruction of assets; errors and omissions; injuries to employees, and natural disasters. As part of the Authority’s risk management program, certain commercial insurance policies are purchased, and the Authority participates in an insurance pool and a risk retention group for property insurance and workers compensation. The insurance pool and risk retention group are reinsured through other reinsurance companies and are not retrospectively rated and do not pass on risk of loss to participants. There were no significant reductions of insurance coverage from prior years and settlements did not exceed insurance coverage for each of the past three years. 8. Economies of scale In an effort to reduce certain costs and avoid duplication of services provided to the citizens of the City, the Authority entered into Interlocal Agreements with HCD to provide and receive shared services and resources at a reduced cost. These services include human resources, accounting and finance, legal, and compliance. As of June 30, 2015, $1,358,818 in pass-through grant funding was due from HCD. The agreement between the HCD and the Authority has been terminated as of August 2015 (see Note-B-13). 9. Commitments and contingencies

a. Legal

In the normal course of operations, the Authority may be party to various pending or threatened legal actions. Although the outcome of these actions is not presently determinable, it is the Authority’s opinion that any resulting liability is not expected to have a material effect on the Authority’s financial position.

b. Grants and contracts

The Authority participates in various federally and locally-assisted grant programs that are subject to review and audit by the grantor agencies. Entitlements to these resources are generally conditional upon compliance with the terms and conditions of grant agreements and applicable federal and other regulations, including the expenditure of resources for allowable purposes. Any disallowance resulting from a review or audit may become a liability of the Authority. As of the date of this report, management is not aware of any such examinations.



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9. Commitments and contingencies (continued)

b. Grants and contracts (continued) In accordance with HUD regulations, the amount of current year program subsidy received in excess of associated qualifying expenses of the Housing Choice Voucher program is presented as net program income or loss with the cumulative excess funding being reflected in restricted net position in the basic financial statements. As of June 30, 2015, the Authority had unspent cumulative excess funding of $2,908,353 which is presented as restricted net position. c. Funds awarded The Authority receives funding from HUD through various programs to help subsidize the cost of redevelopment of projects, project repairs, improvements, component unit developments, and certain operating costs. Remaining unspent awards not yet received as of June 30, 2015, are as follows:

Public Housing Capital Fund Program 7,157,584$ Replacement Housing Factor 7,803,056

Revitalization of Severely Distressed Public Housing Program 551,505

Total remaining unspent awards 15,512,145$

d. Guarantees Fowler, the Authority’s blended component unit, has entered into a performance guaranty with Fowler Multifamily Development, LP, including, but not limited to, operating and replacement reserve guaranty, operating deficit guaranty and tax credit recapture guaranty. The amount, if any, which Fowler, or the Authority, may have to pay under these guarantees cannot be determined at this time.

10. Concentrations For the year ended June 30, 2015, approximately 78% of revenues and 35% of receivables reflected in the basic financial statements are from HUD. The Authority operates in a heavily regulated environment. The operations of the Authority are subject to the administrative directives, rules and regulations of federal, state and local regulatory agencies, including, but not limited to HUD. Such administrative directives, rules and regulations are subject to change by an act of Congress or an administrative change mandated by HUD. Such changes may occur with little notice or inadequate funding to pay for the related costs and the additional administrative burden to comply with the changes. In addition, any excess reserves may reduce future funding levels and possibly be subject to recapture.



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11. Financial data schedule As required by HUD, the Authority prepares its financial data schedule in accordance with HUD requirements in a prescribed format which differs from the presentation of the basic financial statements. The schedule’s format presents certain operating items as non-operating such as depreciation expense, housing assistance payments and extraordinary maintenance expense. In addition, the schedule’s format includes non-operating items as operating such as investment revenue, HUD capital grants revenue, gains and losses on the disposal of fixed assets and interest expense. Furthermore, the schedule reflects tenant revenue and bad debt expense separately. 12. Prior period adjustment Due to the implementation of GASB Statement No. 68 and 71, the Authority is reflecting a prior period adjustment in the amount of $3,157,999 to restate beginning balances of its pension plan components. As provided by the statement, the Authority is reflecting the restatement as of the June 30, 2013 measurement date and the current year’s activity as of the June 30, 2014 measurement date. The effect on the beginning balances is a reduction of net position as presented in the statement of revenues, expenses, and changes in net position of $3,157,999 which consists of an increase in the net pension liability of $3,714,457 (see Notes B-5 and B-6) and an increase in deferred outflows of $556,458 for pension contributions made after the June 30, 2013 measurement date.

13. Subsequent events Management has evaluated events through March 29, 2016, the date the financial statements were available to be issued, and has determined that no additional material events have occurred that would require disclosure, except as follows: In August 2015, the Interlocal Agreements, as described in Note B-8 between the Authority and HCD were terminated.

14. Condensed blended component unit information Condensed component unit information for the Authority’s blended component unit, Fowler, is presented below.



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NOTE B - DETAILED NOTES (continued) 14. Condensed blended component unit information (continued)

Condensed Statement of Net Position

ASSETS MHA Fowler

Multifamily, Inc.

Current assets 341,321$ Capital assets, net 337,423

TOTAL ASSETS 678,744

DEFERRED OUTFLOWS OF RESOURCES 3,401 LIABILITIES

Current liabilities 11,494 Noncurrent liabilities 17,763

TOTAL LIABILITIES 29,257

DEFERRED INFLOWS OF RESOURCES 16,827 NET POSITION

Net investment in capital assets 337,423 Restricted 194,759 Unrestricted 103,879

TOTAL NET POSITION 636,061$

Statement of Net Position



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NOTE B - DETAILED NOTES (continued) 14. Condensed blended component unit information (continued)

Condensed Statement of Revenues, Expenses and Changes in Net Position

MHA Fowler

Multifamily, Inc.

OPERATING REVENUESOther operating revenue 291,639$

Total operating revenues 291,639

OPERATING EXPENSESAdministrative 90,556 Tenant services 2,128 Utilities 90,277 Maintenance 88,793 Protective Services 4,922 General 6,943 Depreciation 26,891

Total operating expenses 310,510

OPERATING LOSS (18,871)

NONOPERATING REVENUES (EXPENSES)Interest income - unrestricted 196

Change in net position (18,675) Total net position - beginning of year 673,941 Prior period adjustment (19,205)

Total net position - ending of year 636,061$

Condensed Statement of Cash Flows

MHA Fowler Multifamily, Inc.

Net cash used in operating activities (5,898)$

Net cash provided by investing activities 196 Net decrease (5,702) Cash and cash equivalents at beginning of year 344,763

Cash and cash equivalents at end of year 339,061$

48

REQUIRED SUPPLEMENTARY INFORMATION


SCHEDULE OF CHANGES IN NET PENSION LIABILITY (ASSET) AND RELATED RATIOS BASED ON PARTICIPATION IN THE PUBLIC EMPLOYEE PENSION PLAN OF TCRS


2014Total pension liabilityService cost 343,429$ Interest 2,893,203 Changes in benefit terms - Differences between actual & expected experience (802,565) Change of assumption - Benefit payments, including refunds of employee contributions (2,198,584)

Net change in total pension liability 235,483 Total pension liability-beginning 39,331,902

Total pension liability-ending (a) 39,567,385$

Plan fiduciary net positionContributions-employer 556,458$ Contributions-employee 8,904 Net investment income 5,769,027 Benefits payments, including refunds of employee contributions (2,198,584) Administrative expense (5,342)

Net change in plan fiduciary net position 4,130,463 Plan fiduciary net position-beginning 35,617,445

Plan fiduciary net position-ending (b) 39,747,908$

Net Pension Liability (asset)-ending (a) - (b) (180,523)$

Plan fiduciary net position as a percentage of total pensionliability 100.46%

Covered-employee payroll 3,943,717$

Net pension liability (asset) as a percentage of covered-employeepayroll 4.58%

This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years until 10 years of information is available.

See Independent Auditor's Report.

49


SCHEDULE OF CONTRIBUTIONS BASED ON PARTICIPATION IN THE PUBLIC EMPLOYEE PENSION PLAN OF TCRS


2014 2015

Actuarially determined contribution 556,458$ 556,458$ Contributions in relation to the actuarially determined contribution 556,458 556,458

Contribution deficiency (excess) -$ -$

Covered-employee payroll 3,943,717$ 4,527,643$ Contributions as a percentage of

covered-employee payroll 14.11% 12.29%

Notes to Schedule

Methods and assumptions used to determine contribution rates:Actuarial cost method Frozen initial liabilityAmortization method Level dollar, closed (not to exceed 20 years)Remaining amorization period 14 yearsAsset valuation

Inflation 3.0 percentSalary increases

Investment Rate of Return 7.5 percent, net of investment expense, including inflationRetirement age Pattern of retirement determined by experience studyMortality

Cost of Living Adjustments 2.5 percent

Customized table based on actual experience including an adjustment for some anticipated improvement

Valuation date : Actuarially determined contribution rates for 2015 were calculated based on the July 1, 2013 actuarial valuation.

10-year smoothed within a 20 percent corridor to market value

Graded salary ranges from 8.97 to 3.71 percent based on age, including inflation, averaging 4.25 percent

This is a 10-year schedule; however, the information in this schedule is not required to be presented retroactively.Years will be added to this schedule in future fiscal years until 10 years of information is available.

See Independent Auditor's Report

50

51

SUPPLEMENTARY INFORMATION


FINANCIAL DATA SCHEDULE


Line Item No. Account Description

AMP 2Foote

HomesOperating

AMP 2Foote

HomesCapital

AMP 8Cleaborn Homes

Operating

AMP 8Cleaborn HomesCapital

AMP 9Dixie

HomesOperating

AMP 9Dixie

HomesCapital

AMP 13Barry

TowersOperating

AMP 13Barry

TowersCapital

AMP 14Venson Center

Operating

AMP 14Venson CenterCapital

AMP 16Simmons

EstateOperating

AMP 16Simmons

EstateCapital

AMP 18Jefferson Square

Operating

AMP 18Jefferson SquareCapital

AMP 21Montomery

PlazaOperating

AMP 21Montomery

PlazaCapital

111 Cash - Unrestricted 685,358 - 2,888,197 - - - 148,612 - 241,620 - - - 149,682 - 169,928 -

113 Cash - other restricted 1,344 - - - - - - - - - 932,309 - 144 - 374 -

114 Cash - Tenant Security Deposits 31,650 - - - - - 16,758 - 19,409 - - - 15,232 - 7,870 -

115 Cash - Restricted for payment of current liability - - - - - - - - - - - - - - - -

100 Total Cash 718,352 - 2,888,197 - - - 165,370 - 261,029 - 932,309 - 165,058 - 178,172 -

121 Accounts Receivable - PHA Projects - - - - - - - - - - - - - - - -

122 Accounts Receivable - HUD Other Projects 10,288 - - - - - 217,193 - 3,169 - - - 11,252 - - -

124 Accounts Receivable - other government 1,486 - - - - - 1,302 - 1,316 - - - 1,311 - 83 -

125 Accounts Receivable - Miscellaneous - - - - - - - - - - - - - - - -

126 Accounts Receivable - Tenants - Dwelling Rents 6,596 - - - - - 3,652 - 237 - - - 1,946 - 1,247 -

126.2 Allowance for Doubtful Accounts - Other - - - - - - - - - - - - - - - -

128 Fraud recovery - - - - - - - - - - - - - - - -

128.1 Allowance for doubtful accounts - fraud - - - - - - - - - - - - - - - -

120 Total Receivables, net of allowances for doubtful accounts 18,370 - - - - - 222,147 - 4,722 - - - 14,509 - 1,330 -

131 Investments - Unrestricted 174,909 - 191,695 - - - 81,381 - 89,607 - - - 86,593 - 41,201 -

142 Prepaid Expenses and Other Assets 31,017 - - - - - 16,707 - 16,791 - - - 16,496 - 6,241 -

144 Interprogram due from - - - - - - - - - - - - - - - -

150 Total Current Assets 942,648 - 3,079,892 - - - 485,605 - 372,149 - 932,309 - 282,656 - 226,944 -

161 Land 896,810 - 1,720,801 - 444,987 - 2,081 - 63,571 - - - 64,655 - 207,900 -

162 Buildings 42,831,098 - 55,088,752 - 43,590,398 - 13,751,376 - 16,587,103 - - - 10,325,792 - 7,087,396 -

163 Furniture, Equipment & Machinery - Dwellings - - - - - - - - - - - - - - - -

164 Furniture, Equipment & Machinery - Administration 19,340 - 16,450 - - - 9,201 - 9,975 - - - 9,656 - 4,738 -

166 Accumulated Depreciation (41,225,945) - (50,054,176) - (41,741,207) - (10,486,818) - (11,977,015) - - - (8,782,622) - (5,141,388) -

167 Construction In Progress 333,904 - - - - - 803,773 - 725,999 - - - 455,453 - - -

160 Total Fixed Assets, Net of Accumulated Depreciation 2,855,207 - 6,771,827 - 2,294,178 - 4,079,613 - 5,409,633 - - - 2,072,934 - 2,158,646 -

171 Notes, loans, and mortgages receivable - Noncurrent - - - - - - - - - - - - - - - -

174 Other Assets 30,372 - - - - - 13,319 - 11,705 - - - 5,914 - 15,656 -

180 Total Non-Current Assets 2,885,579 - 6,771,827 - 2,294,178 - 4,092,932 - 5,421,338 - - - 2,078,848 - 2,174,302 -

190 Total Assets 3,828,227 - 9,851,719 - 2,294,178 - 4,578,537 - 5,793,487 - 932,309 - 2,361,504 - 2,401,246 -

200 Deferred Outflows of Resources 78,548 - - - - - 31,949 - 27,629 - - - 29,200 - 38,026 -

290 Total Assets and Deferred Outflow of Resources 3,906,775 - 9,851,719 - 2,294,178 - 4,610,486 - 5,821,116 - 932,309 - 2,390,704 - 2,439,272 -

312 Accounts Payable <= 90 Days 63,898 - - - - - 257,427 - 36,990 - - - 30,626 - 14,497 -

321 Accrued Wage/Payroll Taxes Payable 21,333 - - - - - 9,959 - 6,475 - - - 8,563 - 12,408 -

322 Accrued Compensated Absences 19,195 - - - - - 7,558 - 5,217 - - - 7,404 - 7,260 -

331 Accounts Payable - HUD PHA Programs - - - - - - - - - - - - - - - -

341 Tenant Security Deposits 31,650 - - - - - 16,758 - 19,409 - - - 15,232 - 7,870 -

342 Unearned Revenues - - - - - - - - - - - - - - - -

345 Other current liabilities 309 - - - - - 23,783 - 26,292 - - - 16,252 - 25 -

346 Accrued Liabilities - Other - - - - - - - - - - - - - - - -

347 Interprogram due to - - - - - - - - - - - - - - - -

310 Total Current Liabilities 136,385 - - - - - 315,485 - 94,383 - - - 78,077 - 42,060 -

353 Noncurrent Liabilities - Other 1,344 - - - - - - - - - - - 144 - 374 -

354 Accrued compensated Absences - Non Current 172,758 - - - - - 68,026 - 46,954 - - - 66,635 - 65,338 -

350 Total Noncurrent Liabilities 174,102 - - - - - 68,026 - 46,954 - - - 66,779 - 65,712 -

300 Total Liabilities 310,487 - - - - - 383,511 - 141,337 - - - 144,856 - 107,772 -

400 Deferred Inflows of Resources 340,092 - - - - - 114,348 - 128,617 - - - 131,051 - 173,950 -

490 Total Liability and Deferred Inflow of Resources 650,579 - - - - - 497,859 - 269,954 - - - 275,907 - 281,722 -

508.4 Net Investment in Capital Assets 2,855,207 - 6,771,827 - 2,294,178 - 4,079,613 - 5,409,633 - - - 2,072,934 - 2,158,646 -

511.4 Restricted Net Position - - - - - - - - - - 932,309 - - - - -

512.4 Unrestricted Net Position 400,989 - 3,079,892 - - - 33,014 - 141,529 - - - 41,863 - (1,096) -

513 Total Equity 3,256,196 - 9,851,719 - 2,294,178 - 4,112,627 - 5,551,162 - 932,309 - 2,114,797 - 2,157,550 -

600 Total Liabilities, Deferred Inflows and Equity 3,906,775 - 9,851,719 - 2,294,178 - 4,610,486 - 5,821,116 - 932,309 - 2,390,704 - 2,439,272 -

PHA: TN001 FYE: 06/30/2015


52





AMP 2Foote

HomesOperating

AMP 2Foote

HomesCapital

AMP 8Cleaborn Homes

Operating


AMP 9Dixie

HomesOperating

AMP 9Dixie

HomesCapital

AMP 13Barry

TowersOperating

AMP 13Barry

TowersCapital

AMP 14Venson Center

Operating


AMP 16Simmons

EstateOperating

AMP 16Simmons

EstateCapital


Operating


AMP 21Montomery

PlazaOperating

AMP 21Montomery

PlazaCapital

PHA: TN001 FYE: 06/30/2015

70300 Net Tenant Rental Revenue 821,521 - - - - - 522,529 - 487,524 - - - 526,499 - 194,651 -

70400 Tenant Revenue - Other 10,108 - - - - - 1,914 - 2,468 - - - 924 - 7,419 -

70500 Total Tenant Revenue 831,629 - - - - - 524,443 - 489,992 - - - 527,423 - 202,070 -

70600 HUD PHA Grants 1,863,555 391,657 364,654 - - - 489,489 60,706 604,795 70,618 - - 540,419 56,852 502,477 21,311

70610 HUD PHA Capital Grants - 337,345 - - - - - 734,637 - 689,046 - - - 384,221 - -

70710 Management Fee - - - - - - - - - - - - - - - -

70730 Book-Keeping Fee - - - - - - - - - - - - - - - -

70700 Total Fee Revenue - - - - - - - - - - - - - - - -

70800 Other government grants - - - - - - - - - - - - - - - -

71100 Investment Income - Unrestricted 256 - - - - - 224 - 227 - - - 225 - 210 -

71400 Fraud recovery - - - - - - - - - - - - - - - -

71500 Other revenue 49,608 - - - - - 17,218 - 79,150 - - - 19,660 - 24,877 -

72000 Investment income - restricted - - - - - - - - - - - - - - - -

70000 Total Revenue 2,745,048 729,002 364,654 - - - 1,031,374 795,343 1,174,164 759,664 - - 1,087,727 441,073 729,634 21,311

91100 Administrative salaries 150,719 - - - - - 94,900 - 95,275 - - - 98,509 - 125,946 -

91200 Auditing fees 9,073 7,714 - - - - 4,278 3,856 4,645 4,132 - - 4,494 3,856 2,154 1,927

91300 Management Fee 244,778 300,000 - - - - 112,451 - 124,220 - - - 118,483 - 58,404 -

91310 Book-Keeping Fee 37,127 - - - - - 17,058 - 18,844 - - - 17,972 - 8,862 -

91400 Advertising and Marketing - - - - - - - - - - - - - - - -

91500 Employee benefit contributions - administrative 30,940 - - - - - 19,994 - 19,446 - - - 19,884 - 25,208 -

91600 Office Expenses 50,385 - - - - - 30,039 - 41,757 - - - 41,876 - 25,614 -

91700 Legal Expense 29,545 - - - - - 13,339 - 10,041 - - - 16,215 - 8,359 -

91900 Other 75,412 13,659 - - - - 19,553 20,873 20,095 27,525 - - 20,384 15,263 11,198 610

92100 Tenant services - salaries - - - - - - - - - - - - - - - -

92200 Relocation Costs - - - - - - - - - - - - - - - -

92300 Employee benefit contributions - tenant services - - - - - - - - - - - - - - - -

92400 Tenant Services - Other 26,739 - - - - - 51,538 - 32,860 - - - 35,784 - 7,338 -

93100 Water 80,007 - - - - - 16,358 - 21,908 - - - 14,987 - 24,130 -

93200 Electricity 445,198 - - - - - 243,630 - 218,924 - - - 222,014 - 137,785 -

93300 Gas 158,913 - - - - - 23,577 - 13,649 - - - 23,113 - 29,650 -

93600 Sewer 153,838 - - - - - 27,734 - 38,224 - - - 25,615 - 36,467 -

93800 Other utilities expense 12,959 - - - - - - - - - - - - - 471 -

94100 Ordinary Maintenance and Operations - Labor 382,328 - - - - - 113,480 - 83,801 - - - 98,033 - 149,456 -

94200 OMO - Materials and Other 330,940 - - - - - 93,841 - 111,195 - - - 88,149 - 115,300 -

94300 Ordinary Maintenance and Operations - Contract Costs 316,987 - - - - - 158,455 - 363,832 - - - 169,076 - 76,436 -

94500 Employee Benefit Contributions - Ordinary Maintenance 78,485 - - - - - 23,908 - 17,105 - - - 19,788 - 29,914 -

95100 Protective Services - labor 40,802 - - - - - 19,054 - 23,934 - - - 20,417 - 9,528 -

95200 Protective Services - Other Contract Costs 8,664 - - - - - 37,459 - 55,388 - - - 43,214 - 118 -

95300 Protective Services - Other - - - - - - - - - - - - - - - -

95500 Employee benefit contributions - protective services 8,375 - - - - - 4,014 - 4,885 - - - 4,121 - 1,907 -

96110 Property Insurance 30,977 - - - - - 17,334 - 16,611 - - - 16,449 - 6,050 -

96120 Liability Insurance 25,965 - 434 - - - 13,272 - 14,475 - - - 14,112 - 6,602 -

96130 Workmen's Compensation 5,613 - - - - - 8,489 - 7,347 - - - 8,164 - 12,652 -

96140 All other Insurance 1,771 - 17 - - - 826 - 930 - - - 872 - 152 -

96200 Other General Expenses - 17,849 - - - - - 1,220 - 1,220 - - - 1,220 - 1,220

96210 Compensated Absences - - - - - - - - - - - - - - - -

96400 Bad Debt - Tenant Rents 12,824 - - - - - - - 6,647 - - - 447 - 519 - 96500 Bad Debt - Mortgages - - - - - - - - - - - - - - - -

96600 Bad Debt - Other - - - - - - - - - - - - - - - -

96800 Severance Expense - - - - - - 1,529 - 7,333 - - - - - - -

96900 Total Operating Expenses 2,749,364 339,222 451 - - - 1,166,110 25,949 1,373,371 32,877 - - 1,142,172 20,339 910,220 3,757

97000 Excess Operating Revenue over Operating Expenses (4,316) 389,780 364,203 - - - (134,736) 769,394 (199,207) 726,787 - - (54,445) 420,734 (180,586) 17,554

97100 Extraordinary Maintenance 8,189 - - - - - 18,888 - 30,032 - - - 10,655 - 2,973 -

97300 Housing Assistance Payments - - - - - - - - - - - - - - - -

97350 HAP Portability - In - - - - - - - - - - - - - - - -

97400 Depreciation Expense 1,016,861 - 1,413,996 - 428,607 - 579,646 - 711,637 - - - 348,547 - 291,819 -

97500 Fraud losses - - - - - - - - - - - - - - - -

90000 Total Expenses 3,774,414 339,222 1,414,447 - 428,607 - 1,764,644 25,949 2,115,040 32,877 - - 1,501,374 20,339 1,205,012 3,757


53





AMP 2Foote

HomesOperating

AMP 2Foote

HomesCapital

AMP 8Cleaborn Homes

Operating


AMP 9Dixie

HomesOperating

AMP 9Dixie

HomesCapital

AMP 13Barry

TowersOperating

AMP 13Barry

TowersCapital

AMP 14Venson Center

Operating


AMP 16Simmons

EstateOperating

AMP 16Simmons

EstateCapital


Operating


AMP 21Montomery

PlazaOperating

AMP 21Montomery

PlazaCapital

PHA: TN001 FYE: 06/30/2015

10010 Operating transfers in 52,435 - - - - - 34,757 - 37,741 - - - 36,513 - 17,554 -

10020 Operating transfers out - (52,435) - - - - - (34,757) - (37,741) - - - (36,513) - (17,554)

10091 Inter-project excess cash transfer in - - - - - - - - - - - - - - 157,393 -

10092 Inter-project excess cash transfer out - - (157,393) - - - - - - - - - - - - -

10093 Transfers between programs and projects in - - - - - - - - - - - - - - - -

10094 Transfers between programs and projects out - - - - - - - - - - - - - - - -

10100 Total other financing sources (Uses) 52,435 (52,435) (157,393) - - - 34,757 (34,757) 37,741 (37,741) - - 36,513 (36,513) 174,947 (17,554)

10000 Excess (deficiency) of total revenue over (under) total expenses (976,931) 337,345 (1,207,186) - (428,607) - (698,513) 734,637 (903,135) 689,046 - - (377,134) 384,221 (300,431) -

11020 Debt Principal Payments - Enterprise Funds - - - - - - - - - - - - - - - -

11030 Beginning Equity 4,253,103 - 11,058,905 - 2,722,785 - 4,193,537 - 5,900,165 - 932,309 - 2,251,190 - 2,640,622 -

11040.1 Equity Transfer - Transfer CFP hard costs to operating 337,345 (337,345) - - - - 734,637 (734,637) 689,046 (689,046) - - 384,221 (384,221) - -

11040.2 Equity Transfer - Transfer of loan from business activities - - - - - - - - - - - - - - - -

11040.3 Equity Transfer - Transfer loan activity from Other project to AMP 75 - - - - - - - - - - - - - - - -

11040.4 PPA - GASB 68 & 71 Implementation for establishing net pension liability (431,349) - - - - - (145,031) - (163,129) - - - (166,217) - (220,626) -

11040.5

PPA - GASB 68 & 71 Implementation for deferred contributions as of June 30, 2014 74,028 - - - - - 27,997 - 28,215 - - - 22,737 - 37,985 -

11040.6 Equity Transfer - - - - - - - - - - - - - - - - -

11040

Total Prior Period Adjustments, Equity transfer and correction of errors (19,976) (337,345) - - - - 617,603 (734,637) 554,132 (689,046) - - 240,741 (384,221) (182,641) -

11170 Administrative Fee Equity

11180 Housing Assistance Payments Equity

11190 Unit Months Available 5,040 - - - - - 2,364 - 2,580 - - - 2,484 - 1,200 -

11210 Number of Unit Months Leased 4,949 - - - - - 2,271 - 2,511 - - - 2,391 - 1,180 -

11270 Excess Cash 544,788 3,079,854 - 56,237 146,527 - 92,758 102,417

11610 Land Purchases - - - - - - - - - - - - - - - -

11620 Building Purchases - 337,345 - - - - - 734,637 - 689,046 - - - 384,221 - -


54





111 Cash - Unrestricted

113 Cash - other restricted

114 Cash - Tenant Security Deposits

115 Cash - Restricted for payment of current liability

100 Total Cash

121 Accounts Receivable - PHA Projects

122 Accounts Receivable - HUD Other Projects

124 Accounts Receivable - other government

125 Accounts Receivable - Miscellaneous

126 Accounts Receivable - Tenants - Dwelling Rents

126.2 Allowance for Doubtful Accounts - Other

128 Fraud recovery

128.1 Allowance for doubtful accounts - fraud

120 Total Receivables, net of allowances for doubtful accounts

131 Investments - Unrestricted

142 Prepaid Expenses and Other Assets

144 Interprogram due from

150 Total Current Assets

161 Land

162 Buildings

163 Furniture, Equipment & Machinery - Dwellings

164 Furniture, Equipment & Machinery - Administration

166 Accumulated Depreciation

167 Construction In Progress

160 Total Fixed Assets, Net of Accumulated Depreciation

171 Notes, loans, and mortgages receivable - Noncurrent

174 Other Assets

180 Total Non-Current Assets

190 Total Assets

200 Deferred Outflows of Resources

290 Total Assets and Deferred Outflow of Resources

312 Accounts Payable <= 90 Days

321 Accrued Wage/Payroll Taxes Payable

322 Accrued Compensated Absences

331 Accounts Payable - HUD PHA Programs

341 Tenant Security Deposits

342 Unearned Revenues

345 Other current liabilities

346 Accrued Liabilities - Other

347 Interprogram due to

310 Total Current Liabilities

353 Noncurrent Liabilities - Other

354 Accrued compensated Absences - Non Current

350 Total Noncurrent Liabilities

300 Total Liabilities

400 Deferred Inflows of Resources

490 Total Liability and Deferred Inflow of Resources

508.4 Net Investment in Capital Assets

511.4 Restricted Net Position

512.4 Unrestricted Net Position

513 Total Equity

600 Total Liabilities, Deferred Inflows and Equity

PHA: TN001 FYE: 06/30/2015

AMP 23Borda

TowersOperating

AMP 23Borda

TowersCapital

AMP 43College Park Senior Village

Operating


Capital

AMP 44College Park

Family IOperating

AMP 44College Park

Family ICapital

AMP 45Alabama

PlazaOperating

AMP 45Alabama

PlazaCapital

AMP 46College Park

Family IIOperating

AMP 46College Park

Family IICapital

AMP 47Uptown Square

Operating

AMP 47Uptown SquareCapital

AMP 48Greenlaw

PlaceOperating

AMP 48Greenlaw

PlaceCapital

AMP 49Uptown

Rental Homes Phase II

Operating

AMP 49Uptown

Rental Homes Phase IICapital

AMP 50Metropolitan

PlaceOperating

AMP 50Metropolitan

PlaceCapital

AMP 51Askew Place

Operating

AMP 51Askew PlaceCapital

259,630 - - - 5,528 - - - 68,410 - 21,208 - 8,747 - - - 35,361 - 277,070 -

- - - - - - - - 45,378 - 330 - - - 22,914 - - - 2,063 -

18,628 - - - - - - - 30,473 - - - - - 2,568 - - - 2,529 -

- - - - - - - - - - - - - - - - - - - -

278,258 - - - 5,528 - - - 144,261 - 21,538 - 8,747 - 25,482 - 35,361 - 281,662 -

- - - - - - - - - - - - - - - - - - - -

3,169 - - - - - - - 26,274 - - - - - 47 - - - - -

1,309 - - - - - - - - - - - - - - - - - 23 -

- - - - - - - - 92,220 - - - - - - - - - - -

985 - - - - - - - 716 - - - - - 3,635 - - - 558 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

5,463 - - - - - - - 119,210 - - - - - 3,682 - - - 581 -

86,225 - - - - - - - - - - - - - - - - - 11,663 -

16,996 - - - - - - - 14,328 - - - - - 5,107 - - - 2,940 -

- - - - - - - - - - - - - - - - 376 - - -

386,942 - - - 5,528 - - - 277,799 - 21,538 - 8,747 - 34,271 - 35,737 - 296,846 -

127,775 - - - 150,136 - - - 580,550 - - - - - - - - - 16,040 -

11,235,463 - - - - - 6,312 - 8,737,235 - - - - - 410,059 - - - 2,233,607 -

- - - - - - - - - - - - - - - - - - - -

9,575 - - - - - - - - - - - - - - - - - 1,405 -

(8,964,952) - - - - - (2,104) - (4,825,362) - - - - - (180,733) - - - (1,143,471) -

726,572 - - - - - - - 861,497 - - - - - 165,857 - - - - -

3,134,433 - - - 150,136 - 4,208 - 5,353,920 - - - - - 395,183 - - - 1,107,581 -

- - - - - - - - - - - - - - - - - - - -

12,365 - - - - - - - 1,936 - - - - - - - - - - -

3,146,798 - - - 150,136 - 4,208 - 5,355,856 - - - - - 395,183 - - - 1,107,581 -

3,533,740 - - - 155,664 - 4,208 - 5,633,655 - 21,538 - 8,747 - 429,454 - 35,737 - 1,404,427 -

32,137 - - - - - - - 1,273 - - - - - - - - - 2,410 -

3,565,877 - - - 155,664 - 4,208 - 5,634,928 - 21,538 - 8,747 - 429,454 - 35,737 - 1,406,837 -

27,161 - - - - - - - 66,120 - - - - - 3,934 - - - 848 -

8,963 - - - - - - - 1,631 - - - - - 4,519 - - - 734 -

5,171 - - - - - - - 1,670 - - - - - - - - - 565 -

- - - - - - - - - - - - - - - - - - - -

18,628 - - - - - - - 30,473 - - - - - 2,568 - - - 2,529 -

- - - - - - - - 367 - - - - - 503 - - - - -

21,312 - - - - - - - - - - - - - - - - - 73 -

- - - - - - - - 71,913 - - - - - 654 - - - - -

- - - - - - - - - - - - - - 376 - - - 15 -

81,235 - - - - - - - 172,174 - - - - - 12,554 - - - 4,764 -

- - - - - - - - - - 312 - - - - - - - 2,063 -

46,535 - - - - - - - 15,028 - - - - - - - - - 5,086 -

46,535 - - - - - - - 15,028 - 312 - - - - - - - 7,149 -

127,770 - - - - - - - 187,202 - 312 - - - 12,554 - - - 11,913 -

151,375 - - - - - - - 28,299 - - - - - - - - - 11,218 -

279,145 - - - - - - - 215,501 - 312 - - - 12,554 - - - 23,131 -

3,134,433 - - - 150,136 - 4,208 - 5,353,920 - - - - - 395,183 - - - 1,107,581 -

- - - - - - - - 45,378 - 18 - - - 22,914 - - - - -

152,299 - - - 5,528 - - - 20,129 - 21,208 - 8,747 - (1,197) - 35,737 - 276,125 -

3,286,732 - - - 155,664 - 4,208 - 5,419,427 - 21,226 - 8,747 - 416,900 - 35,737 - 1,383,706 -

3,565,877 - - - 155,664 - 4,208 - 5,634,928 - 21,538 - 8,747 - 429,454 - 35,737 - 1,406,837 -


55





PHA: TN001 FYE: 06/30/2015

70300 Net Tenant Rental Revenue

70400 Tenant Revenue - Other

70500 Total Tenant Revenue

70600 HUD PHA Grants

70610 HUD PHA Capital Grants

70710 Management Fee

70730 Book-Keeping Fee

70700 Total Fee Revenue

70800 Other government grants

71100 Investment Income - Unrestricted

71400 Fraud recovery

71500 Other revenue

72000 Investment income - restricted

70000 Total Revenue

91100 Administrative salaries

91200 Auditing fees



91400 Advertising and Marketing

91500 Employee benefit contributions - administrative

91600 Office Expenses

91700 Legal Expense

91900 Other

92100 Tenant services - salaries

92200 Relocation Costs

92300 Employee benefit contributions - tenant services

92400 Tenant Services - Other

93100 Water

93200 Electricity

93300 Gas

93600 Sewer

93800 Other utilities expense

94100 Ordinary Maintenance and Operations - Labor

94200 OMO - Materials and Other

94300 Ordinary Maintenance and Operations - Contract Costs

94500 Employee Benefit Contributions - Ordinary Maintenance

95100 Protective Services - labor

95200 Protective Services - Other Contract Costs

95300 Protective Services - Other

95500 Employee benefit contributions - protective services

96110 Property Insurance

96120 Liability Insurance

96130 Workmen's Compensation

96140 All other Insurance

96200 Other General Expenses

96210 Compensated Absences

96400 Bad Debt - Tenant Rents96500 Bad Debt - Mortgages

96600 Bad Debt - Other

96800 Severance Expense

96900 Total Operating Expenses

97000 Excess Operating Revenue over Operating Expenses

97100 Extraordinary Maintenance

97300 Housing Assistance Payments

97350 HAP Portability - In

97400 Depreciation Expense

97500 Fraud losses

90000 Total Expenses

AMP 23Borda

TowersOperating

AMP 23Borda

TowersCapital


Operating


Capital

AMP 44College Park

Family IOperating

AMP 44College Park

Family ICapital

AMP 45Alabama

PlazaOperating

AMP 45Alabama

PlazaCapital

AMP 46College Park

Family IIOperating

AMP 46College Park

Family IICapital

AMP 47Uptown Square

Operating


AMP 48Greenlaw

PlaceOperating

AMP 48Greenlaw

PlaceCapital

AMP 49Uptown


Operating

AMP 49Uptown


AMP 50Metropolitan

PlaceOperating

AMP 50Metropolitan

PlaceCapital

AMP 51Askew Place

Operating


543,187 - - - - - - - 302,789 - - - - - 63,994 - - - 95,107 -

3,806 - - - - - - - - - - - - - - - - - 6,345 -

546,993 - - - - - - - 302,789 - - - - - 63,994 - - - 101,452 -

479,752 72,188 180,129 1,220 196,514 1,220 - - 360,060 43,957 193,570 1,220 51,106 1,220 57,220 20,437 98,415 1,220 86,857 10,954

- 686,801 - - - - - - - 451,803 - - - - - 165,904 - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

225 - - - - - - - - - - - - - - - - - 201 -

- - - - - - - - - - - - - - - - - - - -

21,537 - - - - - - - 157,925 - - - - - 23,532 - - - 1,646 -

- - - - - - - - - - - - - - - - - - - -

1,048,507 758,989 180,129 1,220 196,514 1,220 - - 820,774 495,760 193,570 1,220 51,106 1,220 144,746 186,341 98,415 1,220 190,156 10,954

94,905 - - - - - - - 41,149 - - - - - - - - - 13,982 -

4,452 3,856 1,728 - 1,988 - - - 3,327 - 1,641 - 476 - 454 - 865 - 604 550

120,311 - - - - - - - - - - - - - - - - - 16,420 -

18,250 - 7,165 - 7,945 - - - 13,660 - 6,642 - 1,921 - 1,896 - 3,593 - 2,492 -

- - - - - - - - - - - - - - - - - - - -

19,137 - - - - - - - 1,908 - - - - - - - - - 2,908 -

37,761 - 141 - 162 - - - 28,451 - 828 - 733 - 20,982 - 765 - 8,651 -

5,741 - 457 - 315 - - - 5,831 - - - - - 3,004 - - - 1,016 -

20,241 27,462 4,758 - 5,160 - - - 71,617 17,459 4,497 - 2,802 - 11,586 657 3,387 - 4,829 610

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

32,288 - - - - - - - - - - - - - - - - - 1,425 -

16,162 - 8,205 - - - - - 2,736 - - - - - - - - - 9,233 -

186,233 - 100,857 - - - - - 30,758 - - - - - 2,256 - - - 44,224 -

10,217 - 5,282 - - - - - 2,188 - - - - - 36 - - - - -

26,513 - 10,134 - - - - - 1,175 - - - - - - - - - 8,136 -

- - - - - - - - - - - - - - - - - - 1,149 -

125,385 - - - - - - - - - - - - - - - - - 638 -

78,608 - - - - - - - 209,332 - - - - - 118,223 - - - 32,403 -

127,287 - 636 - 739 - - - 183,371 - 612 - 175 - 19,122 - 318 - 21,889 -

25,283 - - - - - - - - - - - - - - - - - 133 -

18,737 - - - - - - - - - - - - - - - - - 2,760 -

38,532 - - - - - - - - - - - - - - - - - 33 -

- - - - - - - - - - - - - - 6,192 - - - - -

3,778 - - - - - - - - - - - - - - - - - 574 -

17,453 - - - - - - - 5,625 - - - - - 2,084 - - - 3,817 -

14,023 - - - - - - - 10,829 - - - - - 1,035 - - - 1,901 -

9,608 - - - - - - - 7,837 - - - - - - - - - 325 -

850 - - - - - - - 7 - - - - - 2,069 - - - 42 -

- 1,709 52,855 1,220 194,489 1,220 - - 385,013 1,220 158,124 1,220 36,252 1,220 167,796 1,220 70,476 1,220 - 4,879

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - 7,189 - - - - - 1,388 - - - 154 - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

6,278 - - - - - - - - - - - - - - - - - - -

1,058,033 33,027 192,218 1,220 210,798 1,220 - - 1,012,003 18,679 172,344 1,220 42,359 1,220 358,123 1,877 79,404 1,220 179,738 6,039

(9,526) 725,962 (12,089) - (14,284) - - - (191,229) 477,081 21,226 - 8,747 - (213,377) 184,464 19,011 - 10,418 4,915

8,482 - - - - - - - - - - - - - - - - - 4,009 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

393,853 - - - - - 421 - 582,482 - - - - - 27,337 - - - 148,907 -

- - - - - - - - - - - - - - - - - - - -

1,460,368 33,027 192,218 1,220 210,798 1,220 421 - 1,594,485 18,679 172,344 1,220 42,359 1,220 385,460 1,877 79,404 1,220 332,654 6,039


56





PHA: TN001 FYE: 06/30/2015

10010 Operating transfers in

10020 Operating transfers out

10091 Inter-project excess cash transfer in

10092 Inter-project excess cash transfer out

10093 Transfers between programs and projects in

10094 Transfers between programs and projects out

10100 Total other financing sources (Uses)

10000 Excess (deficiency) of total revenue over (under) total expenses

11020 Debt Principal Payments - Enterprise Funds

11030 Beginning Equity

11040.1 Equity Transfer - Transfer CFP hard costs to operating

11040.2 Equity Transfer - Transfer of loan from business activities

11040.3 Equity Transfer - Transfer loan activity from Other project to AMP 75

11040.4 PPA - GASB 68 & 71 Implementation for establishing net pension liability

11040.5

PPA - GASB 68 & 71 Implementation for deferred contributions as of June 30, 2014

11040.6 Equity Transfer -

11040

Total Prior Period Adjustments, Equity transfer and correction of errors



11190 Unit Months Available

11210 Number of Unit Months Leased

11270 Excess Cash

11610 Land Purchases

11620 Building Purchases

AMP 23Borda

TowersOperating

AMP 23Borda

TowersCapital


Operating


Capital

AMP 44College Park

Family IOperating

AMP 44College Park

Family ICapital

AMP 45Alabama

PlazaOperating

AMP 45Alabama

PlazaCapital

AMP 46College Park

Family IIOperating

AMP 46College Park

Family IICapital

AMP 47Uptown Square

Operating


AMP 48Greenlaw

PlaceOperating

AMP 48Greenlaw

PlaceCapital

AMP 49Uptown


Operating

AMP 49Uptown


AMP 50Metropolitan

PlaceOperating

AMP 50Metropolitan

PlaceCapital

AMP 51Askew Place

Operating


39,161 - - - - - - - 25,278 - - - - - 18,560 - - - 4,915 -

- (39,161) - - - - - - - (25,278) - - - - - (18,560) - - - (4,915)

- - 12,089 - - - - - - - - - - - - - - - - -

- - - - (12,089) - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

39,161 (39,161) 12,089 - (12,089) - - - 25,278 (25,278) - - - - 18,560 (18,560) - - 4,915 (4,915)

(372,700) 686,801 - - (26,373) - (421) - (748,433) 451,803 21,226 - 8,747 - (222,154) 165,904 19,011 - (137,583) -

- - - - - - - - - - - - - - - - - - - -

3,132,828 - - - 182,037 - 4,629 - 5,746,381 - - - - - 473,150 - 16,726 - 1,534,092 -

686,801 (686,801) 451,803 (451,803) - - - - 165,904 (165,904) - - - -

- - - - - - - - - - - - - -

- - - - - - - - - - - - - -

(191,994) - (35,893) - - - - - - - - - (14,228) -

31,797 - 5,569 - - - - - - - - - 1,425 -

- - - - - - - - - - - - - -

526,604 (686,801) - - - - - - 421,479 (451,803) - - - - 165,904 (165,904) - - (12,803) -

2,460 - 960 - 1,104 - - - 1,848 - 912 - 264 - 252 - 480 - 336 -

2,430 - 954 - 1,057 - - - 1,823 - 885 - 256 - 252 - 479 - 332 -

200,542 (16,018) (12,039) - (38,415) 6,846 5,217 (36,148) 29,120 272,101

- - - - - - - - - - - - - - - - - - - -

- 686,801 - - - - - - - 451,803 - - - - - 165,904 - - - -


57









100 Total Cash







128 Fraud recovery







161 Land

162 Buildings







174 Other Assets


190 Total Assets






















513 Total Equity


PHA: TN001 FYE: 06/30/2015

AMP 53Crockett

PlaceOperating

AMP 53Crockett

PlaceCapital

AMP 54Latham Terrace

Operating

AMP 54Latham TerraceCapital

AMP 55Fowler

MultifamilyOperating

AMP 55Fowler

MultifamilyCapital

AMP 56Magnolia Terrace

Operating

AMP 56Magnolia TerraceCapital

AMP 57University

Place SeniorOperating

AMP 57University

Place SeniorCapital

AMP 58Uptown

Rental Homes Phase IIIOperating

AMP 58Uptown

Rental Homes Phase IIICapital

AMP 59Uptown

Rental Homes Phase IVOperating

AMP 59Uptown

Rental Homes Phase IVCapital

AMP 60University

Place Phase II

Operating

AMP 60University

Place Phase IICapital

AMP 61Harold Ford Senior Villas

Operating


Capital

36,128 - 109,248 - - - 20,273 - - - 1,591 - 1,655 - 80,102 - 195,793 -

- - - - - - - - 684,495 - 391,540 - 434,887 - 3,606 - 498 -

- - - - - - - - - - 2,792 - 2,571 - - - - -

- - - - - - - - - - - - - - - - - -

36,128 - 109,248 - - - 20,273 - 684,495 - 395,923 - 439,113 - 83,708 - 196,291 -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 4,674 - 4,661 - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 4,674 - 4,661 - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 3,600 - 4,109 - - - - -

- - - - - - - - - - - - - - - - - -

36,128 - 109,248 - - - 20,273 - 684,495 - 404,197 - 447,883 - 83,708 - 196,291 -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 4,160,947 - 2,800,926 - 796,071 - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - (1,935,822) - (1,083,661) - (506,141) - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 2,225,125 - 1,717,265 - 289,930 - - -

- - - - - - - - 6,390,332 - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - 6,390,332 - 2,225,125 - 1,717,265 - 289,930 - - -

36,128 - 109,248 - - - 20,273 - 7,074,827 - 2,629,322 - 2,165,148 - 373,638 - 196,291 -

- - - - - - - - - - - - - - - - - -

36,128 - 109,248 - - - 20,273 - 7,074,827 - 2,629,322 - 2,165,148 - 373,638 - 196,291 -

4,593 - - - 731 - - - - - 2,699 - 2,764 - - - - -

- - - - - - - - - - 4,614 - 3,807 - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 2,792 - 2,571 - - - - -

- - - - - - - - - - 1,007 - 865 - - - - -

- - - - - - - - - - - - - - 876 - - -

- - - - - - - - - - 1,308 - 1,159 - - - - -

- - - - - - - - - - - - - - - - - -

4,593 - - - 731 - - - - - 12,420 - 11,166 - 876 - - -

- - - - - - - - - - - - - - 883 - 498 -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - 883 - 498 -

4,593 - - - 731 - - - - - 12,420 - 11,166 - 1,759 - 498 -

- - - - - - - - - - - - - - - - - -

4,593 - - - 731 - - - - - 12,420 - 11,166 - 1,759 - 498 -

- - - - - - - - - - 2,225,125 - 1,717,265 - 289,930 - - -

- - - - - - - - 7,074,827 - 391,540 - 434,887 - 2,723 - - -

31,535 - 109,248 - (731) - 20,273 - - - 237 - 1,830 - 79,226 - 195,793 -

31,535 - 109,248 - (731) - 20,273 - 7,074,827 - 2,616,902 - 2,153,982 - 371,879 - 195,793 -

36,128 - 109,248 - - - 20,273 - 7,074,827 - 2,629,322 - 2,165,148 - 373,638 - 196,291 -


58





PHA: TN001 FYE: 06/30/2015












71500 Other revenue


70000 Total Revenue


91200 Auditing fees






91700 Legal Expense

91900 Other





93100 Water

93200 Electricity

93300 Gas

93600 Sewer

























97500 Fraud losses


AMP 53Crockett

PlaceOperating

AMP 53Crockett

PlaceCapital


Operating


AMP 55Fowler


AMP 55Fowler

MultifamilyCapital


Operating


AMP 57University


AMP 57University

Place SeniorCapital

AMP 58Uptown


AMP 58Uptown


AMP 59Uptown


AMP 59Uptown


AMP 60University

Place Phase II

Operating

AMP 60University



Operating


Capital

- - - - - - - - - - 127,988 - 131,056 - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 127,988 - 131,056 - - - - -

136,781 - 147,964 1,220 141,736 9,676 140,542 1,220 163,061 1,220 86,294 - 102,560 - 106,970 1,220 86,518 1,220

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - 29,641 - 9,155 - 16,793 - - - - -

- - - - - - - - 200 - - - - - - - - -

136,781 - 147,964 1,220 141,736 9,676 140,542 1,220 192,902 1,220 223,437 - 250,409 - 106,970 1,220 86,518 1,220

- - - - - - - - - - - - - - - - - -

562 - 1,728 - - 824 1,489 - 1,772 - 907 - 929 - 950 - 778 -

- - - - - - - - - - - - - - - - - -

2,171 - 7,068 - - - 6,085 - 7,352 - 3,766 - 3,868 - 3,953 - 3,218 -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

825 - 100 - 686 - 122 - 380 - 38,864 - 39,760 - 857 - 843 -

292 - 224 - - - - - 384 - 153 - 153 - - - 286 -

2,922 - 4,746 - - 610 4,405 - 5,117 - 19,907 - 20,369 - 3,524 - 3,307 -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

57,428 - - - - - - - - - 4,512 - 4,620 - - - - -

- - - - - - - - - - 72 - 73 - - - - -

776 - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 95,166 - 91,603 - - - - -

414 - - - 45 - - - 859 - 334 - 7,754 - 557 - 207 -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 12,384 - 12,681 - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 5,293 - 6,000 - - - - -

- - - - - - - - - - - - 201 - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 4,050 - 4,159 - - - - -

49,464 - 105,720 1,220 141,736 1,220 108,168 1,220 128,328 1,220 - - - - 86,448 1,220 97,332 1,220

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 2,775 - 2,841 - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

114,854 - 119,586 1,220 142,467 2,654 120,269 1,220 144,192 1,220 188,183 - 195,011 - 96,289 1,220 105,971 1,220

21,927 - 28,378 - (731) 7,022 20,273 - 48,710 - 35,254 - 55,398 - 10,681 - (19,453) -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - 277,396 - 186,728 - 53,071 - - -

- - - - - - - - - - - - - - - - - -

114,854 - 119,586 1,220 142,467 2,654 120,269 1,220 144,192 1,220 465,579 - 381,739 - 149,360 1,220 105,971 1,220


59





PHA: TN001 FYE: 06/30/2015















11040.5



11040






11270 Excess Cash



AMP 53Crockett

PlaceOperating

AMP 53Crockett

PlaceCapital


Operating


AMP 55Fowler


AMP 55Fowler

MultifamilyCapital


Operating


AMP 57University


AMP 57University

Place SeniorCapital

AMP 58Uptown


AMP 58Uptown


AMP 59Uptown


AMP 59Uptown


AMP 60University

Place Phase II

Operating

AMP 60University



Operating


Capital

- - - - - - - - - - - - - - - - - -

- - - - - (7,022) - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -

- - - - - (7,022) - - - - - - - - - - - -

21,927 - 28,378 - (731) - 20,273 - 48,710 - (242,142) - (131,330) - (42,390) - (19,453) -

- - - - - - - - - - - - - - - - - -

9,608 - 80,870 - - - - - 612,684 - 2,859,044 - 2,285,312 - 414,269 - 215,246 -

- - - - - - - - - - - - - - - - -

- - - - - - 6,413,433 - - - - - - - - -

- - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - -

- - - - - - - - 6,413,433 - - - - - - - - -

312 - 960 - 480 - 828 - 984 - 504 - 516 - 528 - 432 -

290 - 942 - 468 - 811 - 979 - 502 - 515 - 527 - 429 -

21,964 99,283 (12,603) 10,251 (12,016) (19,045) (18,530) 71,202 186,962

- - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - -


60









100 Total Cash







128 Fraud recovery







161 Land

162 Buildings







174 Other Assets


190 Total Assets






















513 Total Equity


PHA: TN001 FYE: 06/30/2015

AMP 62Austin Park

Operating

AMP 62Austin Park

Capital

AMP 64University

Place Phase IIIOperating

AMP 64University

Place Phase IIICapital

AMP 65Legends

Park EastOperating

AMP 65Legends

Park EastCapital

AMP 66LakeviewLanding

Operating

AMP 66Lakeview LandingCapital

AMP 67Levi

LandingOperating

AMP 67Levi

LandingCapital

AMP 68Villages at

CypresswoodOperating

AMP 68Villages at

CypresswoodCapital

AMP 69Lyons Ridge ApartmentsOperating

AMP 69Lyons Ridge Apartments

Capital

AMP 70Legends

Park WestOperating

AMP 70Legends

Park WestCapital

AMP 71Legends

Park NorthOperating

AMP 71Legends

Park NorthCapital

AMP 72Fairway Manor

Operating

AMP 72Fairway ManorCapital

114,500 - - - 6,692 - 78,729 - 52,832 - 61,463 - 131,395 - 292,908 - 100,138 - 34,456 -

1,106 - 143,189 - 337 - 2,741 - - - - - - - 114,045 - 85,036 - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

115,606 - 143,189 - 7,029 - 81,470 - 52,832 - 61,463 - 131,395 - 406,953 - 185,174 - 34,456 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

115,606 - 143,189 - 7,029 - 81,470 - 52,832 - 61,463 - 131,395 - 406,953 - 185,174 - 34,456 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - 2,083,788 - 5,073,973 - 8,914,325 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - 2,083,788 - 5,073,973 - 8,914,325 -

115,606 - 143,189 - 7,029 - 81,470 - 52,832 - 61,463 - 131,395 - 2,490,741 - 5,259,147 - 8,948,781 -

- - - - - - - - - - - - - - - - - - - -

115,606 - 143,189 - 7,029 - 81,470 - 52,832 - 61,463 - 131,395 - 2,490,741 - 5,259,147 - 8,948,781 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

376 - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

376 - - - - - - - - - - - - - - - - - - -

377 - - - 337 - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

377 - - - 337 - - - - - - - - - - - - - - -

753 - - - 337 - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

753 - - - 337 - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

729 - 143,189 - - - 2,741 - - - - - - - 2,197,833 - 5,159,009 - 8,914,325 -

114,124 - - - 6,692 - 78,729 - 52,832 - 61,463 - 131,395 - 292,908 - 100,138 - 34,456 -

114,853 - 143,189 - 6,692 - 81,470 - 52,832 - 61,463 - 131,395 - 2,490,741 - 5,259,147 - 8,948,781 -

115,606 - 143,189 - 7,029 - 81,470 - 52,832 - 61,463 - 131,395 - 2,490,741 - 5,259,147 - 8,948,781 -


61





PHA: TN001 FYE: 06/30/2015












71500 Other revenue


70000 Total Revenue


91200 Auditing fees






91700 Legal Expense

91900 Other





93100 Water

93200 Electricity

93300 Gas

93600 Sewer

























97500 Fraud losses


AMP 62Austin Park

Operating

AMP 62Austin Park

Capital

AMP 64University


AMP 64University


AMP 65Legends

Park EastOperating

AMP 65Legends

Park EastCapital


Operating


AMP 67Levi

LandingOperating

AMP 67Levi

LandingCapital

AMP 68Villages at


AMP 68Villages at

CypresswoodCapital



Capital

AMP 70Legends

Park WestOperating

AMP 70Legends

Park WestCapital

AMP 71Legends

Park NorthOperating

AMP 71Legends

Park NorthCapital

AMP 72Fairway Manor

Operating


- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

62,271 1,220 59,582 42,502 142,897 1,220 203,134 1,220 49,353 1,220 125,217 1,220 96,447 1,220 113,567 1,220 83,403 108,078 39,467 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - 146,769 - - - - - - - - - - - 222,979 - 116,063 - - -

- - - - - - - - - - - - - - - - - - - -

62,271 1,220 206,351 42,502 142,897 1,220 203,134 1,220 49,353 1,220 125,217 1,220 96,447 1,220 336,546 1,220 199,466 108,078 39,467 -

- - - - - - - - - - - - - - - - - - - -

628 - 562 - 1,145 - 1,641 - 346 - 1,234 - 1,730 - 1,038 - 951 - - -

- - - - - - - - - - - - - - - - - 106,858 - -

2,461 - 2,223 - 4,534 - 6,429 - 1,440 - 4,907 - 6,124 - 4,210 - 3,960 - 4,510 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

830 - 825 - 872 - 913 - 807 - 879 - 141 - 85 - 78 - 85 -

151 - 245 - 246 - - - - - 151 - 411 - 246 - 246 - 416 -

3,030 - 2,921 - 3,835 - 4,609 - 3,954 - 3,982 - 4,839 - 4,243 - 4,178 - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

207 - 7,414 - 629 - 207 - 207 - 208 - - - 382 - 350 - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

69,672 1,220 48,972 42,502 124,944 1,220 228,348 1,220 50,256 1,220 111,912 1,220 84,420 1,220 119,748 1,220 35,556 1,220 - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

76,979 1,220 63,162 42,502 136,205 1,220 242,147 1,220 57,010 1,220 123,273 1,220 97,665 1,220 129,952 1,220 45,319 108,078 5,011 -

(14,708) - 143,189 - 6,692 - (39,013) - (7,657) - 1,944 - (1,218) - 206,594 - 154,147 - 34,456 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

76,979 1,220 63,162 42,502 136,205 1,220 242,147 1,220 57,010 1,220 123,273 1,220 97,665 1,220 129,952 1,220 45,319 108,078 5,011 -


62





PHA: TN001 FYE: 06/30/2015















11040.5



11040






11270 Excess Cash



AMP 62Austin Park

Operating

AMP 62Austin Park

Capital

AMP 64University


AMP 64University


AMP 65Legends

Park EastOperating

AMP 65Legends

Park EastCapital


Operating


AMP 67Levi

LandingOperating

AMP 67Levi

LandingCapital

AMP 68Villages at


AMP 68Villages at

CypresswoodCapital



Capital

AMP 70Legends

Park WestOperating

AMP 70Legends

Park WestCapital

AMP 71Legends

Park NorthOperating

AMP 71Legends

Park NorthCapital

AMP 72Fairway Manor

Operating


- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - (2,597) - - - - -

- - - - - - - - - - - - - - (2,597) - - - - -

(14,708) - 143,189 - 6,692 - (39,013) - (7,657) - 1,944 - (1,218) - 203,997 - 154,147 - 34,456 -

- - - - - - - - - - - - - - - - - - - -

129,561 - - - - - 120,483 - 60,489 - 59,519 - 132,613 - 2,286,744 - 5,105,000 - 8,914,325 -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -

348 - 312 - 636 - 912 - 192 - 684 - 960 - 576 - 528 - 816 -

329 - 296 - 605 - 857 - 192 - 653 - 815 - 561 - 528 - 804 -

107,709 (5,264) (4,658) 58,550 48,099 51,208 123,257 282,111 100,138 34,456

- - - - - - - - - - - - - - - - - - - -

- - - - - - - - - - - - - - - - - - - -


63









100 Total Cash







128 Fraud recovery







161 Land

162 Buildings







174 Other Assets


190 Total Assets






















513 Total Equity


PHA: TN001 FYE: 06/30/2015

AMP 73Cleaborn Pointe

at Heritage Landing Phase I

Operating



Capital

AMP 74Cleaborn Homes Redevelopment

Phase IIOperating


Phase IICapital


Phase IIIOperating


Phase IIICapital

AMP 76Kefauver Terrace

Operating

AMP 76Kefauver TerraceCapital

AMP Other Operating

Total AMPs14.850/14.872

- - 10,315 - - - 520,191 - - 6,807,760

- - 421,635 - 476,623 - - - - 3,764,594

- - - - - - 3,512 - - 153,992

- - - - - - - - - -

- - 431,950 - 476,623 - 523,703 - - 10,726,346

- - - - - - - - - -

- - - - - - - - 304,478 575,870

- - - - - - - - - 6,830

- - - - - - - - - 92,220

- - - - - - 125 - - 29,032

- - - - - - - - - -

- - - - - - - - - -

- - - - - - - - - -

- - - - - - 125 - 304,478 703,952

- - - - - - 10 - - 763,284

- - - - - - 5,635 - - 139,967

- - - - - - - - - 376

- - 431,950 - 476,623 - 529,473 - 304,478 12,333,925

- - - - - - 17,438 - - 4,292,744

- - - - - - 1,884,753 - 8,850 221,536,138

- - - - - - - - - -

- - - - - - - - 330 80,670

- - - - - - (911,598) - (2,360) (188,965,375)

- - - - - - - - 227,715 4,300,770

- - - - - - 990,593 - 234,535 41,244,947

8,387,344 - 10,328,800 - 11,011,019 - - - 5,482,733 57,672,314

- - - - - - 2,651 - - 93,918

8,387,344 - 10,328,800 - 11,011,019 - 993,244 - 5,717,268 99,011,179

8,387,344 - 10,760,750 - 11,487,642 - 1,522,717 - 6,021,746 111,345,104

- - - - - - 1,769 - - 242,941

8,387,344 - 10,760,750 - 11,487,642 - 1,524,486 - 6,021,746 111,588,045

- - - - - - 8,083 - 304,478 824,849

- - - - - - 2,676 - - 85,682

- - - - - - 2,257 - - 56,297

- - - - - - - - - -

- - - - - - 3,512 - - 153,992

- - - - - - - - - 2,742

- - - - - - 2,839 - - 92,137

- - - - - - - - - 75,034

- - - - - - - - - 391

- - - - - - 19,367 - 304,478 1,291,124

- - - - - - - - - 6,332

- - - - - - 20,313 - - 506,673

- - - - - - 20,313 - - 513,005

- - - - - - 39,680 - 304,478 1,804,129

- - - - - - 38,752 - - 1,117,702

- - - - - - 78,432 - 304,478 2,921,831

- - - - - - 990,593 - 234,535 41,244,947

8,387,344 - 10,750,435 - 11,487,642 - - - 5,482,733 61,430,576

- - 10,315 - - - 455,461 - - 5,990,691

8,387,344 - 10,760,750 - 11,487,642 - 1,446,054 - 5,717,268 108,666,214

8,387,344 - 10,760,750 - 11,487,642 - 1,524,486 - 6,021,746 111,588,045


64





PHA: TN001 FYE: 06/30/2015












71500 Other revenue


70000 Total Revenue


91200 Auditing fees






91700 Legal Expense

91900 Other





93100 Water

93200 Electricity

93300 Gas

93600 Sewer

























97500 Fraud losses




Operating



Capital


Phase IIOperating


Phase IICapital


Phase IIIOperating


Phase IIICapital


Operating


AMP Other Operating

Total AMPs14.850/14.872

- - - - - - 85,394 - - 3,902,239

- - - - - - 4,341 - - 37,325

- - - - - - 89,735 - - 3,939,564

97,619 1,220 83,841 175,958 - 421,170 95,559 12,413 350,000 10,324,232

- - - - - 1,826 - 54,393 863,943 4,369,919

- - - - - - - - - -

- - - - - - - - - -

- - - - - - - - - -

- - - - - - - - - -

- - - - - - 201 - - 1,769

- - - - - - - - - -

- - - - - - 5,424 - 528 942,505

- - - - - - - - - 200

97,619 1,220 83,841 175,958 - 422,996 190,919 66,806 1,214,471 19,578,189

- - - - - - 56,452 - - 771,837

951 - - - - - 1,168 801 - 88,204

- - - 175,958 - 400,000 23,196 - 350,000 2,151,079

3,939 - 3,183 - 1,374 - 3,522 - - 253,724

- - - - - - - - - -

- - - - - - 2,654 - - 142,079

78 - 194 - 40 - 23,205 - - 399,614

286 - 253 - - - 509 - - 98,515

4,181 - 111 - - 21,170 3,377 2,667 - 531,641

- - - - - - 11,565 - - 11,565

- - - - - - - - - -

- - - - - - 906 - - 906

- - - - - - - - - 187,972

- - - - - - 5,782 - - 199,508

- - - - - - 6,360 - - 1,704,799

- - - - - - 14,636 - - 281,406

- - - - - - 3,995 - - 332,607

- - - - - - 110 - - 14,689

- - - - - - - - - 953,121

- - - - - - 118,401 - - 1,483,161

350 - 286 - - - 12,184 - - 1,471,529

- - - - - - - - - 194,616

- - - - - - - - - 135,232

- - - - - - 17 - - 183,425

- - - - - - - - - 31,257

- - - - - - - - - 27,654

- - - - - - 8,099 - - 135,792

- - - - - - 2,325 - 503 105,677

- - - - - - 470 - - 60,505

- - - - - - 204 - 25 15,974

102,744 1,220 69,498 - - - - 1,220 - 2,928,150

- - - - - - - - - -

- - - - - - - - - 34,784 - - - - - - - - - -

- - - - - - - - - -

- - - - - - 22,570 - - 37,710

112,529 1,220 73,525 175,958 1,414 421,170 321,707 4,688 350,528 14,968,732

(14,910) - 10,316 - (1,414) 1,826 (130,788) 62,118 863,943 4,609,457

- - - - - - 634 - - 83,862

- - - - - - - - - -

- - - - - - - - - -

- - - - - - 95,932 - - 6,557,240

- - - - - - - - - -

112,529 1,220 73,525 175,958 1,414 421,170 418,273 4,688 350,528 21,609,834


65





PHA: TN001 FYE: 06/30/2015















11040.5



11040






11270 Excess Cash





Operating



Capital


Phase IIOperating


Phase IICapital


Phase IIIOperating


Phase IIICapital


Operating


AMP Other Operating

Total AMPs14.850/14.872

- - - - - - 7,725 - 863,943 1,138,582

- - - - - - - (7,725) (863,943) (1,145,604)

- - - - - - - - - 169,482

- - - - - - - - - (169,482)

2,597 - - - 3,995,347 - - - 4,618,790 8,616,734

- - - - - - - - - (2,597)

2,597 - - - 3,995,347 - 7,725 (7,725) 4,618,790 8,607,115

(12,313) - 10,316 - 3,993,933 1,826 (219,629) 54,393 5,482,733 6,575,470

- - - - - - - - - -

8,399,657 - 10,750,434 - - - 1,652,815 - 7,726,418 96,857,550

- - - - 1,826 (1,826) 54,393 (54,393) - -

- - - - - - - - - 6,413,433

- - - - 7,491,883 - - - (7,491,883) -

- - - - - - (49,151) - - (1,417,618)

- - - - - - 7,626 - - 237,379

- - - - - - - - - -

- - - - 7,493,709 (1,826) 12,868 (54,393) (7,491,883) 5,233,194

528 - 432 - 224 - 504 - - 35,480

526 - 424 - 206 - 468 - - 34,497

- 4,212 (118) 477,662 6,038,619

- - - - - - - - - -

- - - - - 1,826 - 54,393 863,943 4,369,919


66









100 Total Cash







128 Fraud recovery







161 Land

162 Buildings







174 Other Assets


190 Total Assets






















513 Total Equity


PHA: TN001 FYE: 06/30/2015

Central Office Cost Center

Business Activities

State and

Local

Community Development Block Grant

14.218

HOME Investment Partnership

Program14.239

Section 8 Housing Choice

Voucher Program14.871

Mainstream Vouchers

14.879 DHAP-IKE

14.IKE

Community Services Block

Grant Discretionary

Awards93.571

Resident Opportunity

andSupportive Services14.870

Revitalization of Severely

Distressed Public Housing14.866

Disaster Housing Assistance Grant

97.109 MHA Fowler

Multifamily Inc Elimination Total Primary Government

2,303,258 303,585 - - - 1,655,863 - 14,538 - - - 252,300 141,809 - 11,479,113

- 83,287 - - - 2,949,287 - - - - - - 194,759 - 6,991,927

- - - - - - - - - - - - 2,493 - 156,485

- - - - - 125,059 - - - - - - - - 125,059

2,303,258 386,872 - - - 4,730,209 - 14,538 - - - 252,300 339,061 - 18,752,584

- - - - - 200,749 - - - - - - - - 200,749

- - - - - - 3,479 - - 45,313 154,111 - - - 778,773

88,156 - 1,358,818 - - - - - - - - - - - 1,453,804

- - - - - 48,809 - - - - - - - - 141,029

- - - - - - - - - - - - - - 29,032

- (386,872) - - - - - - - - - - - - (386,872)

- - - - - 43,052 1,668 - - - - - - - 44,720

- - - - - (24,029) (1,668) - - - - - - - (25,697)

88,156 (386,872) 1,358,818 - - 268,581 3,479 - - 45,313 154,111 - - - 2,235,538

- - - - - - - - - - - - - - 763,284

283,088 - - - - - - - - - - - 2,260 - 425,315

38 - - - - 2,363 - - - - - - - (2,777) -

2,674,540 - 1,358,818 - - 5,001,153 3,479 14,538 - 45,313 154,111 252,300 341,321 (2,777) 22,176,721

8,875,033 - - - - - - - - - - - - - 13,167,777

10,460,806 - - - - - - - - - - - 593,153 - 232,590,097

- - - - - - - - - - - - 2,005 - 2,005

2,685,277 - - - - - - - - - - - - - 2,765,947

(9,985,419) - - - - - - - - - - - (257,735) - (199,208,529)

- - - - - - - - - - - - - - 4,300,770

12,035,697 - - - - - - - - - - - 337,423 - 53,618,067

- 106,275,390 - - - - - - - - - - - - 163,947,704

86,605 - - - - - - - - - - - - - 180,523

12,122,302 106,275,390 - - - - - - - - - - 337,423 - 217,746,294

14,796,842 106,275,390 1,358,818 - - 5,001,153 3,479 14,538 - 45,313 154,111 252,300 678,744 (2,777) 239,923,015

359,603 - - - - - - - - - - - 3,401 - 605,945

15,156,445 106,275,390 1,358,818 - - 5,001,153 3,479 14,538 - 45,313 154,111 252,300 682,145 (2,777) 240,528,960

95,239 - 1,358,818 - - 196,390 1,116 - - 45,313 154,111 - 7,004 - 2,682,840

99,654 - - - - - - - - - - - 1,073 - 186,409

48,288 - - - - - - - - - - - 901 - 105,486

- - - - - 55,425 - - - - - - - - 55,425

- - - - - - - - - - - - 2,493 - 156,485

- - - - - 125,059 - - - - - - - - 127,801

- - - - - - - - - - - - - - 92,137

- - - - - - - - - - - - - - 75,034

- - - - - - 2,363 - - - - - 23 (2,777) -

243,181 - 1,358,818 - - 376,874 3,479 - - 45,313 154,111 - 11,494 (2,777) 3,481,617

- - - - - 40,934 - - - - - - 9,651 - 56,917

434,587 - - - - - - - - - - - 8,112 - 949,372

434,587 - - - - 40,934 - - - - - - 17,763 - 1,006,289

677,768 - 1,358,818 - - 417,808 3,479 - - 45,313 154,111 - 29,257 (2,777) 4,487,906

1,794,085 - - - - - - - - - - - 16,827 - 2,928,614

2,471,853 - 1,358,818 - - 417,808 3,479 - - 45,313 154,111 - 46,084 (2,777) 7,416,520

12,035,697 - - - - - - - - - - - 337,423 - 53,618,067

- 106,358,677 - - - 2,908,353 - - - - - - 185,108 - 170,882,714

648,895 (83,287) - - - 1,674,992 - 14,538 - - - 252,300 113,530 - 8,611,659

12,684,592 106,275,390 - - - 4,583,345 - 14,538 - - - 252,300 636,061 - 233,112,440

15,156,445 106,275,390 1,358,818 - - 5,001,153 3,479 14,538 - 45,313 154,111 252,300 682,145 (2,777) 240,528,960


67





PHA: TN001 FYE: 06/30/2015












71500 Other revenue


70000 Total Revenue


91200 Auditing fees






91700 Legal Expense

91900 Other





93100 Water

93200 Electricity

93300 Gas

93600 Sewer

























97500 Fraud losses



Business Activities

State and

Local


14.218


Program14.239



Mainstream Vouchers

14.879 DHAP-IKE

14.IKE


Grant Discretionary

Awards93.571






97.109 MHA Fowler


- - - - - - - - - - - - 134,936 - 4,037,175

- - - - - - - - - - - - 4,099 - 41,424

- - - - - - - - - - - - 139,035 - 4,078,599

- - - - - 45,834,494 173,647 - - 239,322 3,323,743 - - - 59,895,438

- - - - - - - - - - - - - - 4,369,919

2,551,990 - - - - - - - - - - - - (2,551,990) -

257,235 - - - - - - - - - - - - (257,235) -

2,809,225 - - - - - - - - - - - - (2,809,225) -

- - 7,793,697 20,085 1,650,095 - - - 2,999 - - - - - 9,466,876

546 - - - - 9,230 - - - - - - 196 - 11,741

- - - - - 40,444 1,713 - - - - - - - 42,157

2,855,102 938,625 - - - 104,595 - - - - - - 145,582 - 4,986,409

- 42 - - - - - - - - - - - - 242

5,664,873 938,667 7,793,697 20,085 1,650,095 45,988,763 175,360 - 2,999 239,322 3,323,743 - 284,813 (2,809,225) 82,851,381

1,966,677 - - - - - - - - - 213,901 - 20,973 - 2,973,388

20,792 - - - - - - - - - - - 9,066 - 118,062

- - - - - 377,768 - - - - - - 23,143 (2,551,990) -

- - - - - - - - - - - - 3,511 (257,235) -

2,459 - - - - - - - - - - - - - 2,459

440,964 - - - - - - - - - 56,688 - 4,233 - 643,964

400,936 - - - - 71,231 - - - - - - 17,027 - 888,808

132,680 - 6,696 - - 53,970 - - - - - - 1,473 - 293,334

49,306 - - - - 3,572,240 21,311 - - - 16,060 - 11,130 - 4,201,688

- - - - - 8,546 - - - - - - - - 20,111

- - - - - - - - - - 2,704 - - - 2,704

- - - - - - - - - - - - - - 906

- - - - - - - - 2,999 239,322 153,549 - 2,128 - 585,970

614 - - - - - - - - - - - 11,253 - 211,375

81,336 - - - - - - - - - - - 52,129 - 1,838,264

7,915 - - - - - - - - - - - 15,820 - 305,141

2,193 - - - - - - - - - - - 11,075 - 345,875

- - - - - - - - - - - - - - 14,689

398,113 - - - - - - - - - - - - - 1,351,234

6,927 - - - - - - - - - - - 43,199 - 1,533,287

113,411 - - - - - - - - - - - 43,973 - 1,628,913

89,264 - - - - - - - - - - - - - 283,880

40,492 - - - - - - - - - - - 4,007 - 179,731

- - - - - - - - - - - - - - 183,425

- - - - - - - - - - - - 47 - 31,304

9,079 - - - - - - - - - - - 868 - 37,601

5,071 - - - - - - - - - - - 1,149 - 142,012

32,156 - - - - - - - - - - - 4,175 - 142,008

37,708 - - - - - - - - - - - 145 - 98,358

- - - - - - - - - - - - 128 - 16,102

- 810,218 1,966,238 20,085 1,340,191 - - - - - 397,371 - - - 7,462,253

20,904 - - - - - - - - - - - 1,346 - 22,250

- - - - - - - - - - - - - - 34,784 - - - - - - - - - - - - - - -

- 355,387 - - - 24,029 1,668 - - - - - - - 381,084

- - - - - - - - - - - - - - 37,710

3,858,997 1,165,605 1,972,934 20,085 1,340,191 4,107,784 22,979 - 2,999 239,322 840,273 - 281,998 (2,809,225) 26,012,674

1,805,876 (226,938) 5,820,763 - 309,904 41,880,979 152,381 - - - 2,483,470 - 2,815 - 56,838,707

- - - - - - - - - - - - 1,621 - 85,483

- - - - - 44,138,451 152,381 - - - - - - - 44,290,832

- - - - - 25,592 - - - - - - - - 25,592

701,631 - - - - - - - - - - - 26,891 - 7,285,762

- - - - - 12,014 - - - - - - - - 12,014

4,560,628 1,165,605 1,972,934 20,085 1,340,191 48,283,841 175,360 - 2,999 239,322 840,273 - 310,510 (2,809,225) 77,712,357


68





PHA: TN001 FYE: 06/30/2015















11040.5



11040






11270 Excess Cash




Business Activities

State and

Local


14.218


Program14.239



Mainstream Vouchers

14.879 DHAP-IKE

14.IKE


Grant Discretionary

Awards93.571






97.109 MHA Fowler


- - - - - - - - - - - - 7,022 (1,142,651) 2,953

- - - - - - - - - - - - - 1,142,651 (2,953)

- - - - - - - - - - - - - (169,482) -

- - - - - - - - - - - - - 169,482 -

- - - - - - - - - - - - - (8,616,734) -

- - (5,820,763) - (309,904) - - - - - (2,483,470) - - 8,616,734 -

- - (5,820,763) - (309,904) - - - - - (2,483,470) - 7,022 - -

1,104,245 (226,938) - - - (2,295,078) - - - - - - (18,675) - 5,139,024

- - - - - - - - - - - - - - -

13,538,902 112,915,761 - - - 6,878,423 - 14,538 - - - 252,300 673,941 - 231,131,415

- - - - - - - - - - - - - - -

- (6,413,433) - - - - - - - - - - - - -

- - - - - - - - - - - - - - -

(2,275,497) - - - - - - - - - - - (21,342) - (3,714,457)

316,942 - - - - - - - - - - - 2,137 - 556,458

- - - - - - - - - - - - - - -

(1,958,555) (6,413,433) - - - - - - - - - - (19,205) - (3,157,999)

1,674,992 1,674,992

2,908,353 2,908,353

- - - - - 83,526 348 - - - - - 480 - 119,834

- - - - - 83,798 345 - - - - - 468 - 119,108

6,038,619

-

4,369,919


69


SCHEDULE OF ACTUAL CAPITAL FUND PROGRAM COSTS AND ADVANCES


PROGRAM

TN43P001

501-11

TN43P001

501-12

TN43P001

501-13

TN43P001

501-14

TN43P095

501-11

TN43P095

501-12 SUBTOTAL

CFP

BUDGET 3,963,522$ 3,241,082$ 2,554,950$ 3,757,041$ 203,942$ 188,784$ 13,909,321$

ADVANCESCash receipts - prior years 3,780,561$ 1,486,159$ 563,949$ 4,660$ 201,900$ 98,518$ 6,135,747$ Cash receipts - current year 182,961 1,258,845 1,652,573 1,128,612 2,042 90,266 4,315,299

Cumulative as of June 30, 2015 3,963,522 2,745,004 2,216,522 1,133,272 203,942 188,784 10,451,046

COSTSPrior years 3,784,301 1,697,709 555,468 22,769 201,900 98,518 6,360,665 Current year 179,221 1,261,366 1,681,813 1,147,064 2,042 90,266 4,361,772

Cumulative as of June 30, 2015 3,963,522 2,959,075 2,237,281 1,169,833 203,942 188,784 10,722,437

RECEIVABLE DUE FROM HUD -$ 214,071$ 20,759$ 36,561$ -$ -$ 271,391$

SOFT COSTSPrior years 553,521$ 1,241,692$ 547,813$ 22,769$ 62,743$ 83,198$ 2,511,736$ Current year 28,909 123,721 67,908 633,807 2,042 1,235 857,622

Cumulative as of June 30, 2015 582,430 1,365,413 615,721 656,576 64,785 84,433 3,369,358 HARD COSTS

Prior years 1,292,479 456,017 7,655 - 139,157 15,320 1,910,628 Current year 150,312 1,137,645 1,613,905 513,257 - 89,031 3,504,150

Cumulative as of June 30, 2015 1,442,791 1,593,662 1,621,560 513,257 139,157 104,351 5,414,778 OTHER COSTS (LOANS)

Prior years 1,938,301 - - - - - 1,938,301 Current year - - - - - - -

Cumulative as of June 30, 2015 1,938,301 - - - - - 1,938,301

CUMULATIVE HARD AND SOFT COSTS 3,963,522$ 2,959,075$ 2,237,281$ 1,169,833$ 203,942$ 188,784$ 10,722,437$

The following grants have been awarded and are unspent as of June 30, 2015:TN43P001501-15 3,970,700$ TN43R001501-14 1,423,339 TN43R001502-14 2,001,449 TN43R001501-15 1,425,435 TN43R001502-15 1,193,601

10,014,524$


70


SCHEDULE OF ACTUAL CAPITAL FUND PROGRAM COSTS AND ADVANCES (continued)


PROGRAMSUBTOTAL

CFP

TN43R001

502-10

TN43R001

502-12

TN43R001

501-13

TN43R002

502-13 TOTAL

CFP & RHF

BUDGET 13,909,321$ 3,467,926$ 2,915,607$ 1,909,455$ 2,631,225$ 24,833,534$

ADVANCESCash receipts - prior years 6,135,747$ 3,361,068$ 2,232,661$ 503,860$ -$ 12,233,336$ Cash receipts - current year 4,315,299 106,858 682,946 1,296,393 676,716 7,078,212

Cumulative as of June 30, 2015 10,451,046 3,467,926 2,915,607 1,800,253 676,716 19,311,548

COSTSPrior years 6,360,665 3,361,069 2,737,823 1,167,505 - 13,627,062 Current year 4,361,772 106,857 177,784 632,748 981,195 6,260,356


RECEIVABLE DUE FROM HUD 271,391$ -$ -$ -$ 304,479$ 575,870$

SOFT COSTSPrior years 2,511,736$ 649,450$ -$ 20,382$ -$ 3,181,568$ Current year 857,622 106,857 175,958 400,000 350,000 1,890,437

Cumulative as of June 30, 2015 3,369,358 756,307 175,958 420,382 350,000 5,072,005

HARD COSTSPrior years 1,910,628 - - - - 1,910,628 Current year 3,504,150 - - - - 3,504,150

Cumulative as of June 30, 2015 5,414,778 - - - - 5,414,778

OTHER COSTS (LOANS)Prior years 1,938,301 2,711,619 2,737,823 1,147,123 - 8,534,866 Current year - - 1,826 232,748 631,195 865,769


CUMULATIVE HARD AND SOFT COSTS 10,722,437$ 3,467,926$ 2,915,607$ 1,800,253$ 981,195$ 19,887,418$


71


SCHEDULE OF ACTUAL HOPE VI PROGRAM COSTS AND ADVANCES


PROGRAM

TN43URD001

I109

BUDGET 22,000,000$

ADVANCESCash receipts - prior years 17,411,812$ Cash receipts - current year 3,882,572

Cumulative as of June 30, 2015 21,294,384

COSTSPrior years 18,124,752 Current year 3,323,743

Cumulative as of June 30, 2015 21,448,495

RECEIVABLE DUE FROM HUD 154,111$


72

73

SINGLE AUDIT SECTION


SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND LOCAL ASSISTANCE


Federal Grantor/Pass-Through Grantor/Program or Cluster Title

CFDANumber

FederalExpenditures

FEDERAL AWARDS

Direct from the U.S. Department of Housing and Urban Development ("HUD"):

Public and Indian Housing 14.850 8,433,795$ HOPE VI Cluster

Revitalization of Severly Distressed Public Housing 14.866 3,323,743 Housing Voucher Cluster

Section 8 Housing Choice Voucher Program 14.871 45,834,494$ Mainstream Vouchers 14.879 173,647

Subtotal Housing Voucher Cluster 46,008,141 Resident Opportunity and Supportive Services 14.870 239,322 Public Housing Capital Fund Program 14.872 6,260,356

Subtotal Direct from U.S Department of Housing and Urban Development 64,265,357

Direct from the U.S. Department of Health and Human Services:

CSBGDA Community Food and Nutrition 93.571 2,999

Pass-through from the City of Memphis, Tennessee:Community Development Block Grant 14.218 20,085 HOME Investment Partnership Program 14.239 1,650,095

Subtotal Pass-through from the City of Memphis, Tennessee 1,670,180

TOTAL EXPENDITURES OF FEDERAL AWARDS 65,938,536

LOCAL ASSISTANCEPass-through from the City of Memphis, Tennessee:

Various other local grants 7,793,697

TOTAL EXPENDITURES OF FEDERAL AWARDS AND LOCAL ASSISTANCE 73,732,233$


74


NOTE TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND LOCAL ASSISTANCE


75

NOTE 1 - BASIS OF PRESENTATION The accompanying schedule of expenditures of federal awards and local assistance includes the federal grant activity of the Memphis Housing Authority and is presented on the accrual basis of accounting. The information on this schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments and Non-Profit Organizations. Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the basic financial statements. In accordance with HUD regulations, HUD considers the Annual Budget Authority for the Section 8 Housing Choice Voucher Program (“HCV”), CFDA Number 14.871, to be an expenditure for the purposes of this schedule. Therefore, the amount in this schedule represents the total amount received directly from HUD and not the expenditures paid by the Authority.

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Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over compliance. Accordingly, this communication is not suitable for any other purpose. March 29, 2016 Melbourne, Florida


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Opinion on Each Major Federal Program In our opinion, the Authority complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended June 30, 2015. Other Matters The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying schedule of findings and questioned costs as Finding No. 2015-001. Our opinion on each major federal program is not modified with respect to this matter. The Authority’s response to the noncompliance finding identified in our audit is described in the accompanying corrective action plan. The 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. Report on Internal Control Over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for the major federal program and to test and report on internal control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. We consider the deficiency in internal control over compliance described in the accompanying schedule of findings and questioned costs as Finding No. 2015-001 to be a significant deficiency.

80

The Authority’s response to the internal control over the compliance finding identified in our audit is described in the accompanying corrective action plan. The 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 purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. March 29, 2016 Melbourne, Florida



SCHEDULE OF FINDINGS AND QUESTIONED COSTS

June 30, 2015

81

A. SUMMARY OF AUDITOR’S RESULTS

Financial Statements Type of auditor’s report issued: Unmodified Internal control over financial reporting:

Material weakness identified? No Significant deficiency identified? None reported

Noncompliance material to financial statements noted? No

Federal Awards Internal control over major programs:

Material weakness identified? No Significant deficiency identified? Yes (2015-001)

Type of auditor’s report issued on compliance for major programs: Unmodified for all Any audit findings disclosed that are required to be reported in accordance with section 510(a) of Circular A-133? Yes (2015-001)

The programs tested as major programs are as follows:

Housing Voucher Cluster HOPE VI Cluster

The threshold for distinguishing types A and B programs was $1,978,156

Did the auditee qualify as a low-risk auditee? No


SCHEDULE OF FINDINGS AND QUESTIONED COSTS

June 30, 2015

82

B. FINDINGS - FINANCIAL STATEMENTS AUDIT

None.

C. FINDINGS AND QUESTIONED COSTS – FEDERAL AWARD PROGRAMS 2015-001 Eligibility

Public and Indian Housing - CFDA No. 14.850 Significant Deficiency in Internal Controls Other matter required to be reported in accordance with OMB Circular A-133 Repeated in part from prior year (see Prior Year Finding No. 2014-002)

Condition: Out of a total population of approximately 2,875 public housing units, we tested 10 files and noted the following deficiencies in the determination of tenant eligibility which came from privately managed public housing stock:

1 file incorrectly calculated income for a full time student income exclusion. 1 file incorrectly calculated tenant income.

Criteria: The Authority’s ACOP and 24 CFR 982.516 requires internal controls to be in place to ensure proper procedures are being followed in compliance with HUD requirements regarding complete and accurate tenant files for all public housing sites, including those privately managed. Cause: External property management of all public housing sites do not have adequate systems and controls in place to ensure all of the eligibility requirements are being followed. Effect: The Authority is not in full compliance with all of the HUD requirements regarding eligibility and tenant recertifications which could result in incorrect rent calculations. Auditor’s Recommendations: The Authority should correct the deficiencies noted in the tested files. In addition, the Authority should establish quality control review procedures, including public housing units in the mixed finance properties, to ensure proper monitoring of private management’s compliance with the requirements related to tenant eligibility. Management’s Response: See the Corrective Action Plan in this report.


SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS

June 30, 2015

83

SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS 2014-001 Financial Reporting

Significant Deficiency in Internal Control Condition: During our audit of the Authority’s financial statements, we detected certain deficiencies in internal control over financial reporting in accordance with auditing standards generally accepted in the United States of America, AU-C Section 265 (“AU-C 265”). We noted that certain adjustments were needed for the fair presentation of accounts and consisted primarily of the proper recording of salaries, benefits, and fringe benefits. Auditor’s Recommendations: We recommend that the Authority perform a review of financial information to ensure that the staffing levels and staff schedules are appropriate for the timely and accurate submission of the unaudited financial information. Furthermore, reporting for the year end close should be reviewed as it relates to the accuracy of financial reporting. Current Year Status: Cleared in the current year.

2014-002 Eligibility

Public and Indian Housing - CFDA No. 14.850 Other matter required to be reported in accordance with OMB Circular A-133

Condition: Out of a total population of approximately 1,675 public housing units, we tested 40 files and noted the following deficiencies in the determination of tenant eligibility which came from privately managed public housing stock:

1 file lacked proper support for a full time student income exclusion; 1 file lacked support for child care deductions; 1 file did not have a recertification performed during the fiscal year; and 1 file did not agree to the rent roll.

Auditor’s Recommendations: The Authority should correct the deficiencies noted in the tested files. In addition, the Authority should establish quality control review procedures, including public housing units in the mixed finance properties, to ensure proper monitoring of private management’s compliance with the requirements related to tenant eligibility. Current Year Status: Repeated in part, see Finding No. 2015-001.

MEMPHIS HOUSING AUTHORITY Memphis, Tennessee Audit 2015 Final.pdf · Independent Auditor’s Report...

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