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HOUSING AUTHORITY OF THE CITY OF CAMDEN
FINANCIAL STATEMENTS AND
SUPPLEMENTAL INFORMATION
YEARS ENDED DECEMBER 31, 2013 AND 2012
HOUSING AUTHORITY OF THE CITY OF CAMDEN
TABLE OF CONTENTS
YEARS ENDED DECEMBER 31, 2013 AND 2012
Contents
Independent Auditor's Report
Management's Discussion and Analysis
Page
1-3
4-14
Financial Statements:
Statements of Net Position
Statements of Revenues, Expenses, and Changes in Net Position
Statements of Cash Flows
15
16
17-18
Notes to Financial Statements
19-40
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
41-42
Independent Auditor's Report on Compliance with Requirements
Applicable to Each Major Program and Internal Control Over
Compliance in Accordance with OMB Circular A-133
43-45
Supplemental Information:
Schedule of Expenditures of Federal Awards
Notes to Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
Schedule of Capital Fund Program Costs and Advances
Financial Data Schedule
46
47
48-49
50
51-60
INDEPENDENT AUDITOR'S REPORT
To the Board of Commissioners
Housing Authority of the City of Camden:
Report on the Financial Statements
We have audited the accompanying financial statements of the Housing Authority of the City of Camden ("the
Authority") as of and for the years ended December 31, 2013 and 2012, and the related notes to the financial
statements, which collectively comprise the Authority’s basic financial statements as listed in the accompanying
table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance
with accounting principles generally accepted in the United States of America. This includes the design,
implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial
statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits in accordance with auditing standards generally accepted in the United States of America and the standards
applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of
the United States and audit requirements as prescribed by the Division of Local Government Services, Department
of Community Affairs, State of New Jersey. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the
risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no
such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinion.
252 Washington Street
Suite B
Toms River, NJ 08753
732-503-4257 Main
732-341-1424 Fax
www.falloncpa.com
1
INDEPENDENT AUDITOR'S REPORT (continued)
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the Housing Authority of the City of Camden as of December 31, 2013 and 2012, and the respective
changes in financial position and cash flows for the years then ended in accordance with accounting principles
generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management’s discussion
and analysis 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 audits of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with sufficient evidence
to express an opinion or provide any assurance.
Other Information
Our audits were conducted for the purpose of forming opinions on the financial statements that collectively
comprise the Housing Authority of the City of Camden's basic financial statements. The Schedule of Expenditures
of Federal awards, as required by Office of Management and Budget Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations is presented for purposes of additional analysis and is not a required
part of the basic financial statements. The accompanying Schedule of Capital Fund Program Costs and Advances
and the financial data schedule ("the Schedules") are also not required parts of the financial statements and are
presented for the purposes of additional analysis as required by the U.S. Department of Housing and Urban
Development.
The Schedule of Expenditures of Federal Awards and the Schedules are the responsibility of management and were
derived from and relates directly to the underlying accounting and other records used to prepare the basic financial
statements. Such information has been subjected to the auditing procedures applied in the audits of the basic
financial statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic
financial statements themselves, and other additional procedures in accordance with auditing standards generally
accepted in the United States of America. In our opinion, the Schedule of Expenditures of Federal Awards and the
Schedules are fairly stated, in all material respects, in relation to the basic financial statements as a whole.
2
INDEPENDENT AUDITOR'S REPORT (continued)
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated September 4, 2014 on
our consideration of the Housing Authority of the City of Camden's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on internal control over financial
reporting or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering Housing Authority of the City of Camden's internal control over financial
reporting and compliance.
September 4, 2014
Toms River, New Jersey
Fallon & Larsen LLP
3
MANAGEMENT'S DISCUSSION AND ANALYSIS
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
The Housing Authority of the City of Camden (“Camden Housing Authority”) or (“the
Authority”) management discussion and analysis is designed to (a) assist the reader in
focusing on significant financial issues, (b) provide an overview of the Authority’s
financial activity, (c) identify changes in the Authority’s financial position (its ability to
address the next and subsequent year challenges), and (d) identify individual fund
issues or concerns.
Since the Management’s Discussion and Analysis (“MD&A”) is designed to focus on the
current year’s activities, resulting changes and currently known facts, please read it in
conjunction with the Authority’s financial statements.
FINANCIAL HIGHLIGHTS

The financial condition of the Authority has held strong as evidenced by the
Authority’s strong liquidity position in maintaining a 3.6 to 1 current ratio.
The Board of Commissioners and the Executive Director continue to work closely with
the staff to implement cost containment measures, improve internal and external
financial reporting, strengthen communication lines with all managers, and train property
managers and pertinent staff in project-based budgeting, accounting & reporting.
Some reclassifications have been made to prior year balances in order to present a
clearer comparison between the financial positions and corresponding balances of the
two years.
Here are some of the financial highlights for the changes in financial conditions:

The Authority’s unrestricted net position decreased $8,007 during the year ended
December 31, 2013 primarily due to the Authority cutting back on certain
operating expenses and generating additional revenues from non-federal
sources and federal agencies, other than HUD while operating grants declined.

The Authority’s restricted cash decreased by $496,650 during the year ended
December 31, 2013. The decrease is primarily the result of HUD requiring the
Authority to utilize $411,003 of its restricted HAP reserves to fund tenant rents.
Additionally, $156,918 of developers escrows, held at the end of 2012, were
released during 2013.

The Authority’s current asset balance decreased $1,173,801 from December 31,
2012 to December 31, 2013. The decrease is primarily the result of the receipt of
funds owed from HUD at the end of 2012 for unreimbursed expenses as part of
the Capital Fund and Neighborhood Stabilization grants as well as the Authority’s
unrestricted cash and cash equivalents balance increasing $287,683.
4
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
FINANCIAL HIGHLIGHTS (continued)

Operating revenues increased by $548,030 from $28,027,975 in 2012 to
$28,576,005 in 2013. This is primarily the result of a decrease in HUD operating
grants of $523,214 while other revenue sources increased by $1,071,244.

Operating expenses of all Authority programs (excluding depreciation and
housing assistance payments) increased $621,374. (3.8%)

Housing assistance payments decreased $119,044. While the Authority had 475
more unit months leased in 2013 than in 2012, the average payment to landlords
decreased.
AUTHORITY WIDE FINANCIAL STATEMENTS
The Authority-wide financial statements and notes thereto are designed to be corporatelike in that all business type activities are consolidated into columns that add to a total
for the entire Authority.
These Statements include the Statements of Net Position, which is similar to a Balance
Sheet. The Statement of Net Position reports all financial and capital resources for the
Authority. The statement is presented in the format where assets, minus liabilities,
equal “net position”, formerly known as equity. Assets and liabilities are presented in
order of liquidity, and are classified as “Current” (convertible into cash within one year),
and “Non-current”.
The Authority’s focus on the Statements of Net Position is the “Unrestricted Net
Position” which is designed to represent the net available liquid (non-capital) assets, net
of liabilities, for the entire Authority.
5
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
AUTHORITY WIDE FINANCIAL STATEMENTS (continued)
Net Position (formerly equity) is reported in three broad categories:

Net Investment in Capital Assets: This component of net position consists of all
capital assets, reduced by the outstanding balances of any bonds, mortgages,
notes or other borrowings that are attributable to the acquisition, construction, or
improvement of those assets.

Restricted Net Position: This component of net position consists of restricted
assets, when constraints are placed on the asset by creditors (such as debt
covenants), grantors, contributors, laws, regulations, etc.

Unrestricted Net Position: Consists of net position that do not meet the definition
of “Net Investment in Capital Assets”, or “Restricted Net Position”.
The Authority-wide financial statements also include the Statements of Revenues,
Expenses and Changes in Net Position (similar to an Income Statement). This
statement includes operating revenues, such as rental income, operating expenses,
such as administrative, utilities, maintenance, depreciation, and non-operating revenue
and expenses, such as investment income and interest expense.
The focus of the Statements of Revenues, Expenses and Changes in Net Position is the
“Change in Net Position”, which is similar to Net Income or Loss.
The Statements of Cash Flows presents relevant information about the Authority’s cash
receipts and cash payments during the year. The Statements of Cash Flows also
disclose net cash provided by, or used for operating activities, non-capital financing
activities, and from capital and related financing activities.
FUND FINANCIAL STATEMENTS
Traditional users of governmental financial statements will find the fund financial
statements presentation more familiar. The focus is now on major funds, rather than
fund types. The Authority consists of exclusively enterprise funds. Enterprise funds
utilize the full accrual basis of accounting. The enterprise method of accounting is
similar to accounting utilized by business in the private sector. All of the activities of the
Authority are reported in a single enterprise fund.
6
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
THE AUTHORITY’S PROGRAMS
Low Rent Public Housing – Under the Low Rent Public Housing Program, the Authority
rents units that it owns to low-income households. The Conventional Public Housing
Program is operated under an Annual Contributions Contract (ACC) with HUD, and
HUD provides operating subsidy and capital grant funding to enable the PHA to provide
the housing at a rent that is based upon 30% of household income. The Conventional
Public Housing Program also includes the Capital Fund Program, which is the primary
funding source for physical and management improvements to the Authority’s
properties.
Federal Low-Income Housing Tax Credit (LIHTC) Program - Through the privately
managed properties, The Housing Authority of the City of Camden administers the
federal Low-Income Housing Tax Credit (LIHTC) program for housing developments in
the City of Camden. The LIHTC program is contained within § 42 of the Internal
Revenue Code (26 U.S.C. § 42) as a tax incentive program to stimulate investment in
affordable housing. The LIHTC program provides incentives for developers to acquire
rehabilitate and or build low- or mixed-income housing through the allocation of federal
tax credits that can be used to reduce a project’s federal taxes or sold to corporations or
investor groups to raise equity for a project. The credits are purchased at a discount
and represent a dollar-for-dollar reduction of tax liability. In the State of New Jersey, the
LIHTC program plays a vital role in the creation and preservation of affordable rental
housing by increasing the funding available to eligible projects that best meet the state's
goals and requirements for affordable housing.
Housing Choice Voucher Program (Section 8 Program) – Under the Housing Choice
Voucher Program, the Authority administers contracts with independent landlords that
own the property. The Authority subsidizes the family’s rent through a housing
assistance payment made to the landlord. The program is administered under an
Annual Contributions Contract (ACC) with HUD. HUD provides annual contributions
funding to enable the Authority to structure a lease that sets the participants’ rent at
30% of household income.
Capital Fund Program – Under the Capital Fund Program, the Authority receives grants
from the Department of Housing and Urban Development which are used primarily to
maintain and improve the physical condition of its developments. The funds are also
used to fund management improvements such as management information systems
and tenant services.
Resident Opportunities and Self Sufficiency Program – a grant program funded by the
Department of Housing and Urban Development that encourages economic selfsufficiency among the Authority’s resident population.
7
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
THE AUTHORITY’S PROGRAMS (continued)
Veterans Affairs Supportive Housing Program - The Housing Authority of the City of
Camden has partnered with the Department of Veterans Affairs to offer Rental
Assistance for homeless veterans. The HUD-Veterans Affairs Supportive Housing
(HUD-VASH) voucher program combines HUD Housing Choice Voucher (HCV) Rental
Assistance for homeless veterans with case management and clinical services provided
by the Veterans Affairs (VA) at its medical centers and in the community. Visible goals
of this program include addressing homelessness for veterans and ensuring needed
case management services are provided by the VA to individuals to allow them to move
to self-sufficiency.
Youth Build Grant – a grant program designed for the purpose of assisting at-risk youth
between the ages of 16 and 24 to learn housing construction job skills and to complete
their high school education.
State/Local Programs – represents non-HUD resources developed from a variety of
activities and funded by the state of New Jersey, the County of Camden or the City of
Camden.
Neighborhood Stabilization Program (Recovery Act Funded) - The objectives of the
Neighborhood Stabilization Program are to stabilize property values, arrest
neighborhood decline, assist in preventing neighborhood blight, and stabilize
communities across America hardest hit by residential foreclosures and abandonment.
These objectives will be achieved through the purchase and redevelopment of
foreclosed and abandoned homes and residential properties that will allow those
properties to turn into useful, safe and sanitary housing.
Adult Education State Grant Program - The Adult Education and Family Literacy State
Grant program provides grants to eligible agencies to provide adult education and
literacy services. These grants help adults become literate and obtain the knowledge
and skills necessary for employment; obtain the educational skills necessary to become
full partners in the educational development of their children; and complete a secondary
school education.
Medicaid Assistance Program (Other Federal Program) - The objective of the Medicaid
Assistance Program is to provide payments for medical assistance to low-income
persons who are 65 or over, blind, disabled, or members of families with dependent
children or qualified pregnant women or children.
8
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
STATEMENT OF NET POSITION
The following table reflects the condensed Statement of Net Position as of December
31, 2013 and 2012:
Account Net Change Percentage
Change 2013 2012 Current assets: Cash and cash equivalents Accounts receivable, net Prepaid expenses $ 4,836,024
1,701,518
261,094
$ 4,548,161
3,159,726
264,550
$287,863 (1,458,208) (3,456) 6.33%
‐46.15%
‐1.31%
Total current assets 6,798,636
7,972,437
(1,173,801) ‐14.72%
Non‐current assets: Restricted cash Accrued interest Notes receivable Capital assets, net 885,843
3,333,093
27,611,839 47,261,731
1,382,493
2,870,295
27,611,839
49,297,060
(496,650) 462,798 (2,035,329) ‐35.92%
16.12%
0.00%
‐4.13%
Total non‐current assets 79,092,506
81,161,687
(2,069,181) ‐2.55%
Total assets $ 85,891,142
$ 89,134,124
(3,242,982) ‐3.64%
Current liabilities: Accounts payable Accrued expenses Accrued compensated absences Tenant security deposits Current portion of long‐term debt Other current liabilities $ 497,840
171,263
42,897
255,929 547,603
340,189 $ 485,864
153,522
41,424
237,909 519,040
1,526,776 11,976 17,741 1,473 18,020 28,563 (1,186,587) 2.46%
11.56%
3.56%
7.57% 5.50%
‐77.72% Total current liabilities 1,855,721
2,964,535
(1,108,814) ‐37.40%
Non‐current liabilities: Long‐term debt Accrued compensated absences Other liabilities 5,243,528
386,043
150,259
5,800,230
372,833
148,164
(556,702) 13,210 2,095 ‐9.60%
3.54%
1.41%
5,779,840
6,321,227 (541,387) ‐8.56%
7,635,561
9,285,762
(1,650,201) ‐17.77%
Net position: Net Investment in capital assets Restricted net position Unrestricted net position 41,470,600
31,366,643
5,418,338 42,977,790
31,444,227
5,426,345 (1,507,190) (77,584) (8,007) ‐3.51%
‐0.25%
‐0.15% Total net position $ 78,255,581
$ 79,848,362
($1,592,781) 11.22%
Total non‐current liabilities Total liabilities 9
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
The following table reflects the Statement of Revenues, Expenses and Changes in Net
Position as of December 31, 2013 and 2012:
Account 2013 2012 Net Change Percentage Change Operating Revenues: Tenant revenue HUD operating grants Other government grants Other revenues $2,994,207 22,647,897 1,052,844 1,881,057 $2,902,596 23,171,111 903,461 1,050,807 $91,611 (523,214) 149,383 830,250 3.16% ‐2.26% 16.53% 79.01% Total operating revenues 28,576,005 28,027,975 548,030 1.96% Operating expenses: Administrative Tenant services Utilities Ordinary repairs and maintenance Protective services Insurance and general Extraordinary maintenance Housing assistance payments Depreciation 6,606,610 3,269,666 2,483,577 2,310,600 361,712 1,389,974 89,043 11,803,912 4,470,975 4,633,284 2,703,522 2,342,353 2,329,212 319,963 3,286,342 275,132 11,922,956 5,654,302 1,973,326 566,144 141,224 (18,612) 41,749 (1,896,368) (186,089) (119,044) (1,183,327) 42.59% 20.94% 6.03% ‐0.80% 13.05% ‐57.70% ‐67.64% ‐1.00% ‐20.93% Total operating expenses 32,786,069 33,467,066 (680,997) ‐2.03% Operating loss (4,210,064) ( 5,439,091) 1,229,027 22.60% 465,446 (269,198) 475,999 (289,045) (10,553) 19,847 ‐2.22% 6.87% 196,248 186,954 9,294 4.97% (4,013,816) (5,252,137) 1,238,321 23.58% 2,421,035 13,020,373 (10,599,338) ‐81.41% (1,592,781) 7,768,236 (9,361,017) ‐120.50% Net position, beginning of year 79,848,362 72,080,126 7,768,236 10.78% Net position, end of year $78,255,581 $79,848,362 ($1,592,781) ‐1.99% Non‐operating revenues: Investment income Interest expense Net non‐operating revenues (expenses) Loss before capital grants Capital grants Change in net position 10
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
MAJOR FACTORS AFFECTING THE STATEMENT OF NET POSITION

During 2013 capital assets, net, decreased by $2,035,329 reflecting spending of
2,435,646 on capital assets, which was offset by $4,470,975 in depreciation
expense.

Accounts receivable, net, decreased $1,458,208 from December 31, 2012 to
December 31, 2013 primarily due to a decrease in the amount of Neighborhood
Stabilization and Capital Fund grant funds owed to the Authority for reimbursable
expenditures.

Restricted cash decreased from $1,382,493 at December 31, 2012 to $885,843
at December 31, 2013, a decrease of $496,650. The primary reason for the
decrease is HUD requiring the Authority to utilize their restricted reserves to pay
tenant rents.
Housing Assistance Payment Reserves were reduced by
$411,003.

Other assets increased $462,798 due to the Authority accruing interest on notes
receivable.

Long-term debt decreased $528,139 as the Authority utilized capital funds to pay
down their Capital Program Revenue Bonds, $295,000, and also paid down
$233,139 from their Energy Performance loan.

Other current liabilities decreased $1,186,587 during 2013 primarily due to the
payment of $897,020 owed from NSP grant funds for modernization.
MAJOR FACTORS AFFECTING THE STATEMENT OF REVENUE,
EXPENSES AND CHANGES IN NET POSITION

Operating revenues increased from the year ended December 31, 2012 to 2013
by $548,030 as decreases in HUD operating grants of $523,214 were offset by
increases in tenant revenues of $91,611, other government grants, $149,383,
and other revenues, $830,250.

Capital grants decreased by $10,599,338 from the year ended December 31,
2012. Capital grants in the Neighborhood Stabilization Program decreased
$9,534,497 and ARRA program funds declined by $1,230,250.
11
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
MAJOR FACTORS AFFECTING THE STATEMENT OF REVENUE,
EXPENSES AND CHANGES IN NET POSITION (continued)

The increase in utilities expense of $141,224 from 2012 to 2013 is primarily due
to an increase in certain utility rates.

The variance indicating an increase of $1,973,326 in administrative expenses
from 2012 to 2013 is due, primarily, to reclassification of fees paid to providers of
property management services from general expenses. An offsetting decrease
appears in the report presentation for “Insurance and General Expenses”.

The increase of $566,144 in tenant services is primarily due to increased activity
in the YouthBuild Program.

Housing assistance payments decreased $119,044 as the Authority had 475
more unit months leased in 2013 than in 2012 while the average payment to
landlords decreased.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital Assets
As of December 31, 2013, the Authority had $47.3 million invested in capital assets as
reflected in the following schedule, which represents a net decrease (addition, disposals
and depreciation) of approximately $2.0 million from the end of 2012.
2013
2012
Net Change Capital Assets: Land Construction in progress Buildings Furniture and equipment
$1,169,182 23,916,738 166,443,950 1,273,736 $1,169,182 28,800,854 159,124,188 1,273,736 $0 (4,884,116) 7,319,762 0 0.00%
‐16.96%
4.60%
0.00%
Total capital assets Less: Accumulated depreciation 192,803,606 145,541,875 190,367,960 141,070,900 2,435,646 4,470,975 1.28%
3.17%
Capital assets, net $47,261,731 $49,297,060 ($2,035,329) ‐4.13%
Account 12
Percentage
Change
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
CAPITAL ASSETS AND DEBT ADMINISTRATION (continued)
Capital Assets (continued)
A majority of the funds that were used to acquire the $2,435,646 in capital assets came
from a Neighborhood Stabilization grant, $577,790, and regular capital funds
$1,744,495.
Debt Outstanding
The New Jersey Housing and Mortgage Financing Agency issued $79,860,000 Capital
Fund Program Revenue Bonds, 2004 Series A in 2004. The Authority, upon approval
from the Housing and Urban Development’s Washington D.C. office, joined 20 other
New Jersey Housing Authorities in consideration of a portion of these proceeds or $6.9
million.
The anticipated use of these funds is site improvements within two of the HACC’s
developments (Kennedy Towers and Branch Village). These funds were received
December 23, 2004 and have a twenty-year repayment cycle. As of December 31,
2013, $4,760,000 is still outstanding.
During 2006, the Authority borrowed $2,484,000 for the purpose of acquiring equipment
needed to perform renovations that will result in savings in energy consumption. As of
December 31, 2013, $1,031,131 of this balance is outstanding. The current portion of
the Authority’s outstanding debt payable as of December 31, 2013 is $547,603.
ECONOMIC FACTORS
Significant economic factors affecting the Authority are as follows:








Federal funding of the Department of Housing and Urban Development
HUD’s Project Based Budgeting, Accounting, and Reporting Requirements
Local redevelopment plans
Local labor supply and demand, which can affect salary and wage rates
Local Union Agreements and the subsequent execution
Local inflationary, recessionary and employment trends, which can affect
resident incomes and therefore the amount of rental income
Inflationary pressure on utility rates, supplies and other costs
The availability of Neighborhood Stabilization Program I and II Funds to stabilize
communities that have suffered from foreclosures and abandonment.
13
HOUSING AUTHORITY OF THE CITY OF CAMDEN
Management’s Discussion and Analysis
December 31, 2013
FINANCIAL CONTACT
This financial report is designed to provide our residents, the citizens of the City of
Camden, New Jersey, all federal and state regulatory bodies, and any creditors with a
general overview of the Authority’s finances. If you have any questions regarding these
financial statements or supplemental information, you may make inquiry by writing to:
Housing Authority of City of Camden, 2021 Watson Street, 2nd Floor, Camden, New
Jersey, 08105, Attention to: Dr. Maria Marquez, Executive Director, or Victor Figueroa,
Deputy Executive Director, or Daniel Aronson, Director of Finance.
14
FINANCIAL STATEMENTS
HOUSING AUTHORITY OF THE CITY OF CAMDEN
STATEMENTS OF NET POSITION
AS OF DECEMBER 31, 2013 AND 2012
ASSETS
2013
Current assets:
Cash and cash equivalents
Accounts receivable, net
Prepaid expenses
$
Total current assets
4,836,024
1,701,518
261,094
2012
$
4,548,161
3,159,726
264,550
6,798,636
7,972,437
885,843
3,333,093
27,611,839
47,261,731
1,382,493
2,870,295
27,611,839
49,297,060
Total non-current assets
79,092,506
81,161,687
Total assets
85,891,142
89,134,124
497,840
171,263
42,897
255,929
547,603
340,189
485,864
153,522
41,424
237,909
519,040
1,526,776
1,855,721
2,964,535
5,243,528
386,053
150,259
5,800,230
372,833
148,164
Total non-current liabilities
5,779,840
6,321,227
Total liabilities
7,635,561
9,285,762
41,470,600
31,366,643
5,418,338
42,977,790
31,444,227
5,426,345
Non-current assets:
Restricted cash
Accrued interest
Notes receivable
Capital assets, net
LIABILITIES
Current liabilities:
Accounts payable
Accrued expenses
Accrued compensated absences, current
Tenant security deposits
Current portion of bonds and leases payable
Other current liabilities
Total current liabilities
Non-current liabilities:
Bonds and leases payable, excluding current portion
Accrued compensated absences, non-current
Other liabilities
NET POSITION
Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
$
See accompanying notes to financial statements
15
78,255,581
$
79,848,362
HOUSING AUTHORITY OF THE CITY OF CAMDEN
STATEMENTS OF REVENUES, EXPENSES,
AND CHANGES IN NET POSITION
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013
Operating revenues:
Tenant revenue
HUD operating grants
Other government grants
Other revenues
$
Total operating revenue
2,994,207
22,647,897
1,052,844
1,881,057
2012
$
2,902,596
23,171,111
903,461
1,050,807
28,576,005
28,027,975
6,606,610
3,269,666
2,483,577
2,310,600
361,712
1,389,974
89,043
11,803,912
4,470,975
4,633,284
2,703,522
2,342,353
2,329,212
319,963
3,286,342
275,132
11,922,956
5,654,302
Total operating expenses
32,786,069
33,467,066
Operating loss
(4,210,064)
(5,439,091)
465,446
(269,198)
475,999
(289,045)
196,248
186,954
Operating expenses:
Administrative
Tenant services
Utilities
Ordinary repairs and maintenance
Protective services
Insurance and general expenses
Extraordinary maintenance
Housing assistance payments
Depreciation
Non-operating revenues:
Investment income
Interest expense
Net non-operating revenues
Loss before capital grants
Capital grants
Change in net position
Total net position, beginning of year (as restated)
Total net position, end of year
$
See accompanying notes to financial statements
16
(4,013,816)
(5,252,137)
2,421,035
13,020,373
(1,592,781)
7,768,236
79,848,362
72,080,126
78,255,581
$
79,848,362
HOUSING AUTHORITY OF THE CITY OF CAMDEN
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013
Cash Flows from Operating Activities:
Cash received from grantors
Cash received from tenants and other activities
Cash paid to suppliers
Cash paid to employees
$
Net cash flows provided (used) by operating activities
25,514,403
4,537,830
(25,379,077)
(4,072,643)
2012
$
600,513
Cash Flows from Capital and Related Financing Activities:
Purchase of capital assets
Capital grants
Interest paid on long term debt
Principal payments on capital debt
Net cash flows used in capital and related financing activities
Cash Flows from Investing Activities:
Investment income
Net cash flows provided by investing activities
Net decrease in cash
(525,512)
(2,435,646)
2,421,035
(269,198)
(528,139)
(13,373,343)
13,020,373
(289,045)
(509,033)
(811,948)
(1,151,048)
2,648
13,201
2,648
13,201
(208,787)
Cash and cash equivalents, beginning of year
(1,663,359)
5,930,654
Cash and cash equivalents, end of year
22,467,927
4,348,664
(22,637,939)
(4,704,164)
7,594,013
$
5,721,867
$
5,930,654
Cash and cash equivalents
Restricted cash
$
4,836,024
885,843
$
4,548,161
1,382,493
Cash and cash equivalents, end of year
$
5,721,867
$
5,930,654
Reconciliation of Cash and Cash Equivalents to the
Statements of Net Position:
See accompanying notes to financial statements
17
HOUSING AUTHORITY OF THE CITY OF CAMDEN
STATEMENTS OF CASH FLOWS (continued)
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
2013
2012
Reconciliation of operating loss to
net cash provided (used) by operating activities:
Operating loss
$
Items which did not use cash:
Depreciation
Bad debts
Changes in operating assets and liabilities:
Accounts receivable
Prepaid expenses
Accounts payable
Accrued expenses
Tenant security deposits
Prepaid tenant rents
Advanced payment of grants
Other liabilities
Net cash provided (used) by operating activities
See accompanying notes to financial statements
18
$
(4,210,064)
$
(5,439,091)
4,470,975
97,160
5,654,302
54,781
1,361,048
3,456
11,976
32,434
18,020
16,731
(197,703)
(1,003,520)
(1,693,120)
(8,834)
(170,970)
(7,497)
1,273
20,675
(3,000)
1,065,969
600,513
$
(525,512)
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Organization
The Housing Authority of the City of Camden or ("the Authority") is a governmental, public
corporation created under federal and state housing laws as defined by State statute (N.J.S.A. 4A:
12A-1, et. Seq., the “Housing Authority Act”) for the purpose of engaging in the development,
acquisition and administrative activities of the low-income housing program and other programs
with similar objectives for low and moderate income families residing in Camden, New Jersey
("the City"). The Authority is responsible for operating certain low-rent housing programs in the
City under programs administered by the U.S. Department of Housing and Urban Development
("HUD"). These programs provide housing for eligible families under the United States Housing
Act of 1937, as amended.
The Authority is governed by a board of commissioners which is essentially autonomous but is
responsible to HUD and the State of New Jersey Department of Community Affairs. An executive
director is appointed by the housing authority’s Board to manage the day-to-day operations of the
Authority.
B. Description of Programs
The Authority maintains its accounting records by program.
programs operated by the Authority is as follows:
A summary of the significant
Low Rent Public Housing Program
The public housing program is designed to provide low-cost housing. Under this program, HUD
provides funding via an annual contributions contract. These funds, combined with the rental
income received from tenants, are available solely to meet the operating expenses of the program.
Housing Assistance Payments Program - Section 8
The Authority administers a program of rental assistance payments to private owners on behalf of
eligible low-income families under Section 8 of the Housing and Urban Development Act of 1974.
The program provides payments covering the difference between the maximum rental on a
dwelling unit, as approved by HUD, and the amount of rent contribution by a participating family.
Public Housing Capital Fund Program
The purpose of the Capital Fund Program is to provide another source of funding to cover the cost
of physical and management improvements and rehabilitation on existing low-income housing and
improving the central office facilities. Funding for this program is provided by grants from HUD.
19
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Description of Programs (continued)
Resident Opportunity and Supportive Services
The purpose of the Resident Opportunity and Support Services Program is to programmatically
address the needs of public housing residents by providing supportive services, resident
empowerment activities and/or assisting residents in becoming economically self-sufficient. The
primary focus of the program is on a spectrum of services for families leading to homeownership.
Neighborhood Stabilization Program (Recovery Act Funded)
The objectives of the Neighborhood Stabilization Program are to stabilize property values, arrest
neighborhood decline, assist in preventing neighborhood blight, and stabilize communities across
America hardest hit by residential foreclosures and abandonment. These objectives will be
achieved through the purchase and redevelopment of foreclosed and abandoned homes and
residential properties that will allow those properties to turn into useful, safe and sanitary housing.
Adult Education State Grant Program
The Adult Education and Family Literacy State Grant program provides grants to eligible agencies
to provide adult education and literacy services. These grants help adults become literate and obtain
the knowledge and skills necessary for employment; obtain the educational skills necessary to
become full partners in the educational development of their children; and complete a secondary
school education.
Medicaid Assistance Program (Other Federal Program)
The objective of the Medicaid Assistance Program is to provide payments for medical assistance to
low-income persons who are 65 or over, blind, disabled, or members of families with dependent
children or qualified pregnant women or children.
Youthbuild Program
The Youthbuild program provides funding assistance for a wide range of multi-disciplinary
activities and services to assist economically disadvantaged youth. The opportunities are designed
to help disadvantaged young adults who have dropped out of high school to obtain the education
and employment skills necessary to achieve economic self-efficiency and develop leadership skills
and a commitment to community development in low income communities. Another important
objective of the Youthbuild program is to expand the supply of permanent affordable housing for
homeless persons and members of low income and very low income families. By giving
disadvantaged young adults participating in the program meaningful on-site training experiences
constructing or rehabilitating housing as a community service, they are helping to meet the housing
needs of homeless and low income families in their community.
20
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
B. Description of Programs (continued)
Choice Neighborhood Planning Grants
The objective of the Choice Neighborhoods Planning Grants is to support the development
of comprehensive neighborhood Transformation Plans. The Transformation Plan should
integrate effective strategies to implement public and/or assisted housing revitalization, the
coordination and design of supportive services, including educational opportunities for
children, and neighborhood-level planning to improve a range of neighborhood assets. The
Transformation Plan should be created as part of a collaborative planning process that
involves neighborhood stakeholders and local governmental entities to build the necessary
support to successfully implement the plan.
Federal Low-Income Housing Tax Credit (LIHTC) Program
The LIHTC program provides incentives for developers to acquire rehabilitate and or build low- or
mixed-income housing through the allocation of federal tax credits that can be used to reduce a
project’s federal taxes or sold to corporations or investor groups to raise equity for a project. In the
State of New Jersey, the LIHTC program plays a vital role in the creation and preservation of
affordable rental housing by increasing the funding available to eligible projects that best meet the
state's goals and requirements for affordable housing.
C. Reporting Entity
In accordance with statement No. 39 Government Accounting Standards Board ("GASB"), the
Authority's financial statements include those of the Housing Authority of the City of Camden and
any component units. Component units are legally separate, tax-exempt organizations that meet all
of the following criteria:
1. The economic resources received by the separate organization are almost entirely for the direct
benefit of the Authority.
2. The Authority has the ability to access a majority of the economic resources held by the separate
organization.
3. The economic resources referred to in No. 2 are significant to the Authority.
Based upon the application of these criteria, this report includes all programs and activities
operated by the Authority. There were no additional entities required to be included in the
reporting entity under these criteria in the current fiscal year. Furthermore, the Authority is not
included in any other reporting entity on the basis of such criteria.
21
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Basis of Accounting
The Authority's financial statements are prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP). The Governmental Accounting
Standards Board (GASB) is responsible for establishing GAAP for state and local governments
through its pronouncements (Statements and Interpretations).
The programs of the Authority are organized as separate accounting entities. Each program is
accounted for by a separate set of self-balancing accounts that comprise its assets, liabilities, net
assets (program equity), revenues, and expenses. The individual programs account for the
governmental resources allocated to them for the purpose of carrying on specific programs in
accordance with laws, regulations, or other restrictions, including those imposed by HUD. The
funds of the Authority are all considered Enterprise Funds that are used to account for activities
that are operated in a manner similar to those found in the private sector.
All enterprise funds are accounted for using the economic resources measurement focus and the
accrual basis of accounting. Revenues, expenses, gains, and losses from assets and liabilities
resulting from exchange and exchange-like transactions are recognized when the exchange takes
place.
The Authority's financial statements are prepared in accordance with GASB Statement No. 34,
Basic Financial Statements and Management's Discussion and Analysis for State and Local
Governments ("GASB 34") as amended. GASB 34 requires the basic financial statements to be
prepared using the economic resources measurement focus and the accrual basis of accounting and
requires the presentation of a Statement of Net Position, a Statement of Revenues, Expenses and
Changes in Net Position and Statement of Cash Flows. GASB 34 also requires the Authority to
include Management's Discussion and Analysis as part of the Required Supplemental Information.
The Authority's primary source of non-exchange revenue relates to grants and subsidies. In
accordance with GASB Statement No. 33, Accounting and Financial Reporting for Non-exchange
Transactions, grant and subsidy revenue are recognized at the time eligible program expenditures
occur and/or the Authority has complied with the grant and subsidy requirements.
In accordance with GASB Statement No. 20, Accounting and Financial Reporting for Proprietary
Funds and Other Governmental Activities that Use Proprietary Fund Accounting, the Authority
has elected to apply all Financial Accounting Standards Board pronouncements, Accounting
Principles Board Opinions and Accounting Research Bulletins issued that do not conflict with or
contradict GASB Pronouncements.
On January 30, 2008, HUD issued PIH Notice 2008-9 which among other things clarifies HUD’s
reporting position that unused housing assistance payments ("HAP") under proprietary fund
reporting should be reported as restricted net assets, with the associated cash and investments also
being reported on the Statement of Net Assets and HUD's Financial Data Schedule ("FDS") as
restricted. Any unused administrative fees should be reported as unrestricted net position, with the
associated assets being reported on the FDS as unrestricted.
22
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
D. Basis of Accounting (continued)
Both administrative fees and HAP revenue continue to be recognized under the guidelines set forth
in GASB Statement No. 33. Accordingly, both the time and purpose restrictions as defined by
GASB 33 are met when these funds are available and measurable, not when these funds are
expended. The Housing Choice Voucher program is no longer a cost reimbursement grant,
therefore the Authority recognizes unspent administrative fees and HAP revenue in the reporting
period as revenue for financial statement reporting.
Any investment income earned on these funds is reflected in the net position account on which the
investment income was earned. Investment income earned on HAP cash balances is credited to the
HAP restricted net position account and investment income earned on administrative fee cash
balances is credited to the unrestricted net position account.
E. Cash, Cash Equivalents and Investments
New Jersey Authorities are required by N.J.S.A. 40A:5-14 to deposit public funds in a bank or trust
company having its place of business in the State of New Jersey and organized under the laws of
the United States or State of New Jersey or the New Jersey Cash Management Fund. N.J.S.A.
40A:5-15.1 provides a list of securities which may be purchased by New Jersey Authorities. The
Authority is required to deposit funds in public depositories protected from loss under the
provisions of the Governmental Unit Deposit Protection Act ("GUDPA"). GUDPA was enacted in
1970 to protect governmental units from a loss of funds on deposit with a failed banking institution
in New Jersey.
N.J.S.A. 17:9-42 requires governmental units to deposit public funds only in public depositories
located in New Jersey, when the funds are secured in accordance with the act.
HUD requires housing authorities to invest excess funds in obligations of the United States,
Certificates of Deposit or any other federally insured investment.
HUD also requires that deposits be fully collateralized at all times. Acceptable collateralization
includes FDIC insurance and the market value of securities purchased and pledged to the political
subdivision. Pursuant to HUD restrictions, obligations of the United States are allowed as security
for deposits. Obligations furnished as security must be held by the Authority or with an unaffiliated
bank or trust company for the account of the Authority.
For the statement of cash flows, cash and cash equivalents include all cash balances and highly
liquid investments with a maturity of three months or less at the time of purchase. Investments are
carried at cost plus accrued interest which approximates market value. Income from investments is
recognized on the accrual basis.
It is the Authority's policy to maintain collateralization in accordance with state and HUD
requirements.
23
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
F. Accounts Receivable, Net
Rents are due from tenants on the first day of each month. As a result, tenants receivable balances
primarily consist of rents past due and vacated tenants. An allowance for doubtful accounts is
established to provide for all accounts, which may not be collected in the future for any reason.
Collection losses on accounts receivable are charged against the allowance for doubtful accounts.
The Authority recognizes a receivable from HUD and other governmental agencies for amounts
billed, but not received and for amounts unbilled, but earned as of year-end.
G. Prepaid Expenses
Prepaid expenses represent amounts paid as of year-end that will benefit future operations.
H. Capital Assets
Fixed assets are stated at cost. Expenditures for repairs and maintenance are charged directly to
expense as they are incurred. Expenditures determined to represent additions or betterments are
capitalized. Upon the sale or retirement of fixed assets, the cost and related accumulated
depreciation is eliminated from the accounts and any related gain or loss is reflected in the
Statement of Revenues, Expenses and Changes in Net Position. Depreciation is calculated using
the straight-line method based on the estimated useful lives of the following asset groups:



Buildings
Site Improvements
Furniture, Fixtures and Equipment
40 Years
15 Years
5-10 Years
The Authority has established a capitalization threshold of $5,000.
I. Compensated Absences
Compensated absences represent amounts to which employees are entitled to based on accumulated
leave earned in accordance with the Authority's Personnel Policy. Employees may be compensated
for accumulated vacation leave in the event of retirement or termination from service at the current
salary. Annual vacation increases based on tenure, starting at twelve days for the first year of
service and increasing up to thirty days. Employees' sick leave accumulates and employees may be
compensated for sick leave at retirement at a rate of 65%, but no more than $15,000 for non-union
workers and $5,000 for union workers.
24
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
J. Prepaid Tenant Rents
The Authority's prepaid tenant rents primarily consists of the prepayment of rent by residents.
K. Advanced Payments of Grants
The Authority's advanced payments of grants primarily consist of the receipt of HUD and other
governmental program funding applicable to future periods.
L. Inter-program Receivables and Payables
Inter-program receivables/payables are current, and are the result of the use of the Public Housing
Program as the common paymaster for shared costs of the Authority. Cash settlements are made
periodically, and all inter-program balances net to zero. In accordance with GASB Statement No.
34, inter-program receivables and payables are eliminated for financial statement purposes,
however they are reflected in the accompanying Financial Data Schedule as required by HUD.
M. Taxes
The Authority is a unit of local government under New Jersey law and is exempt from real estate,
sales and income taxes.
N. Operating Revenues and Expenses
The Authority defines its operating revenues as income derived from charges to residents and
others for services provided, as well as government subsidies and grants used for operating
purposes. Operating expenses are costs incurred in the operation of its program activities to
provide services to residents and others. The Authority classifies all other revenues as nonoperating.
O. Use of Management 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 certain reported amounts of assets and liabilities, and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amounts of revenues and expenses
during the reporting period. Significant estimates include the allowance for doubtful accounts,
accrued expenses and other liabilities, depreciable lives of properties and equipment, amortization
of leasehold improvements and contingencies. Actual results could differ significantly from these
estimates.
25
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
P. Equity Classifications
Equity is classified as net assets and displayed in three components:
Net investment in capital assets - Consists of capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages,
notes, or other borrowings that are attributable to the acquisition, construction or improvement of
those assets.
Restricted net position - Consists of net position with constraints placed on the use either by (1)
external groups such as creditors, grantors, contributors, laws or regulations of other governments;
or (2) law through constitutional provisions or enabling legislation.
Unrestricted net position - All other net position that do not meet the definition of "restricted" or
"net investment in capital assets."
Q. Budgets and Budgetary Accounting
The Authority is required by contractual agreements to adopt annual, appropriated operating
budgets for all its programs receiving federal expenditure awards. All budgets are prepared on a
HUD basis, which is materially consistent with accounting principles generally accepted in the
United States of America. All appropriations lapse at HUD's program year end or at the end of
grant periods.
Pursuant to N.J.S.A 40A:5A-10 and N.J.A.C. 5:31 the Authority is also required to submit an
authority wide budget for each fiscal year to the Director of the Division of Local Government
Services 60 days prior to the end of the fiscal year.
R. Investment in Leased Property
As part of its HOPE VI development activities, the Authority routinely enters into ground lease
agreements. Under terms of the agreements, the Authority leases land it owns to a third party and
that party owns the improvements built on the land. Typically, the lease terms range from fifty
(50) to ninety-nine (99) years. These lease agreements (land only) are recorded as operating leases.
Operating leases involving land only, will be accounted for as follows:
The leased property will be included near property, plant and equipment but separately identified
on the Authority’s Statement of Net Position as “Investment in Leased Property”. Since land has
an indefinite useful life, no depreciation will be charged on the property.
26
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 1.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
R. Investment in Leased Property (continued)
Rent will be reported as income over the lease term as it becomes receivable according to the
provisions of the lease. However, if the rentals vary from the straight-line basis, the Authority will
recognize the income on a straight-line basis unless another systematic and rational basis is more
representative of the time pattern in which use benefit from the leased property is diminished, in
which case that basis will be used.
Initial indirect costs will be deferred and allocated over the lease term in proportion to the
recognition of rental income. However, initial direct costs may be charged to expense as incurred
if the effect is not materially different from that which would have resulted from the use of the
method prescribed in the preceding sentence.
Upon substantial completion of the HOPE VI development agreement, if the fair value of the
property is less than its cost or carrying amount, then a loss equal to that difference will be
recognized at the inception of the lease.
NOTE 2.
CASH AND CASH EQUIVALENTS
At December 31, 2013 and 2012, the Authority had funds on deposit in checking and money
market accounts.
For the fiscal years ended December 31, 2013 and 2012, the carrying amount of the Authority's
cash (including restricted cash) was $5,721,867 and $5,930,654, and the bank balances were
$6,630,235 and $6,476,478, respectively. Cash and cash equivalents consist of the following:
Cash Category
2013
Operating
Restricted Cash
Tenant Security Deposits
2012
$
4,580,095
885,843
255,929
$
4,310,252
1,382,493
237,909
$
5,721,867
$
5,930,654
Of the bank balances, $750,306 and $750,884 were covered by federal depository insurance and
the remaining $5,879,929 and $5,725,593 were collateralized with the pledging financial institution
for the fiscal years ended December 31, 2013 and 2012, respectively.
Custodial credit risk is the risk that, in the event of a bank failure, the government's deposits may
not be returned to it. The Authority does not have a formal policy for custodial credit risk. As of
December 31, 2013 and 2012, the Authority's bank balances were not exposed to custodial credit
risk.
27
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 3.
ACCOUNTS RECEIVABLE, NET
As of December 31, 2013 and 2012, accounts receivable consisted of the following:
Category
2013
Accounts receivable - HUD
Accounts receivable - Other government
Accounts receivable - Miscellaneous
Accounts receivable - Tenants, net
$
2012
981,578
326,588
327,357
65,995
$ 2,795,240
176,727
140,337
47,422
$ 1,701,518
$ 3,159,726
A. Accounts Receivable - HUD
HUD program receivables represent amounts due to the Authority for operating and capital grants.
The Authority considers these amounts fully collectible and accordingly, have made no allowance
for doubtful accounts. As of December 31, 2013 and 2012, HUD accounts receivable consisted of
the following:
Program
2013
Youthbuild Program
Neighborhood Stabilization Program
Public Housing Capital Fund
Housing Choice Voucher Program
Choice Neighborhood Program
2012
$
196,643
8,228
769,600
7,107
$
146,931
1,131,426
1,510,056
6,827
-
$
981,578
$
2,795,240
B. Accounts Receivable - Other governments
Accounts receivable - other governments consist of amounts due from other Public Housing
Authorities for portable tenants, as well as from state and local governments for reimbursements of
grant expenditures. The Authority considers these amounts fully collectible and accordingly, have
made no allowance for doubtful accounts.
C. Accounts Receivable - Miscellaneous
Miscellaneous receivables consist primarily of amounts due from other properties for operating
subsidies and for contract fees owed. As of December 31, 2013 and 2012, these amounts totaled
$327,357 and $140,337, respectively. The Authority considers these amounts fully collectible and
accordingly, have made no allowance for doubtful accounts.
28
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 3.
ACCOUNTS RECEIVABLE, NET (continued)
D. Accounts Receivable - Tenants, net
As of December 31, 2013 and 2012 tenant receivables consist of rental money due to the Authority
for providing housing, and are shown net of an allowance for doubtful accounts of $169,376 and
$67,637, respectively.
NOTE 4.
RESTRICTED CASH
Restricted cash consists of the following at December 31, 2013 and 2012:
Cash Category
2013
2012
Housing Assistance Payment Reserves
$
Family Self Sufficiency Deposits
Capital Fund Revenue Bond Proceeds
Developer Escrows
Neighborhood Stabilization Program Escrow
WESCO Escrow
344,847
150,259
220,443
76,864
93,430
$
755,850
148,164
220,133
156,918
9,507
91,921
$
885,843
$
1,382,493
Housing assistance payment reserves are restricted for use only in the Housing Choice Voucher
Program for future housing assistance payments.
Family Self Sufficiency ("FSS") program escrows are restricted for use in the Housing Choice
Voucher, Low Rent Public Housing and Resident Opportunity & Supportive Services Programs
by FSS program participants.
Capital Fund Program Revenue Bonds proceeds consist of unspent proceeds from the 2004 Series
A Capital Fund Program Revenue Bonds and are restricted for certain capital improvements in
accordance with the Authority's approved annual plan.
Water/Energy Savings Corporation ("WESCO) escrows are restricted to provide funding for the
Authority to lease equipment for water and energy renovations from the WESCO.
Developer escrows are restricted for tenants use in the Westfield and Roosevelt Projects for self
sufficiency training and other tenant services.
Neighborhood Stabilization escrows are restricted for modernization and development related to
the redevelopment of abandoned or foreclosed homes or residential properties.
29
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 5.
CAPITAL ASSETS, NET
A summary of the changes in capital assets during the year ended December 31, 2013 were as
follows:
Description
Non-depreciable capital assets:
Land
Construction in progress
Total
December 31,
2012
$
1,169,182
28,800,854
29,970,036
Depreciable capital assets:
Buildings
Furniture and equipment
Total
159,124,188
1,273,736
160,397,924
Less: accumulated depreciation
141,070,900
Net capital assets
$ 49,297,060
Dispositions
and
Impairments
Additions
$
2,435,646
2,435,646
$
-
$
-
4,470,975
$ (2,035,329)
-
Transfers
-
$
7,319,762
7,319,762
$
(7,319,762)
(7,319,762)
December 31,
2013
$
1,169,182
23,916,738
25,085,920
166,443,950
1,273,736
167,717,686
-
145,541,875
-
$ 47,261,731
A summary of the changes in capital assets during the year December 30, 2012 were as follows:
Description
Non-depreciable capital assets:
Land
Construction in progress
Total
December 31,
2011
$
1,169,182
18,964,491
20,133,673
Dispositions
and
Impairments
Additions
$
13,255,034
13,255,034
$
-
Depreciable capital assets:
Buildings
Furniture and equipment
Total
155,705,517
1,155,427
156,860,944
118,309
118,309
-
Less: accumulated depreciation
135,416,598
5,654,302
-
Net capital assets
$ 41,578,019
$
7,719,041
$
-
Transfers
$
(3,418,671)
(3,418,671)
3,418,671
3,418,671
$
December 31,
2012
$
1,169,182
28,800,854
29,970,036
159,124,188
1,273,736
160,397,924
-
141,070,900
-
$ 49,297,060
Depreciation expense for the years ended December 31, 2013 and 2012 totaled $4,470,975 and
$5,654,302, respectively
30
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 6.
NOTES RECEIVABLE
The Authority was awarded two HOPE VI grants totaling $55,000,000 by the United
States Department of Housing & Urban Development (HUD) for the revitalization of the
public housing units. The Authority entered into several redevelopment and revitalization
agreements with selected developers to provide affordable housing in accordance with the
guidelines of the Hope VI Program. The Authority leased land to a developer under a
long-term land lease and under the program, the Authority provided loans to developers for
the purpose of constructing affordable housing units. Upon construction completion, the
developer has the option of returning the land and its structures to the Authority or
returning the funds that were advanced to them.
At December 31, 2013 and 2012 notes receivable consisted of the following:
2013
2012
The Authority issued a mortgage loan to Chelton Terrace Urban
Renewal Associates, L.P. (Chelton Terrace Phase Two) to
facilitate the construction of new buildings and building
improvements. The principal balance is $2,702,881 with
interest accruing at the Wall Street Journal prime rate of 3.25%.
The loan matures on August 26, 2049. The loan is secured by
real property and any ensuing structures.
$
2,702,881
The Authority issued a mortgage loan to Roosevelt Central
Urban Renewal Associates, L.P. (Roosevelt Manor Phase 5) to
facilitate the construction of new buildings and building
improvements. The principal balance is $1,993,512 with interest
accruing at the rate of 5.5%. The loan matures upon the
completion of construction on the property or December 21,
2047, whichever occurs first. The loan is secured by real
property and any ensuing structures.
1,993,512
1,993,512
The Authority issued a mortgage loan to Centerville Urban
Renewal Associates, LLC (Roosevelt Manor Phase 7) to
facilitate the construction of new buildings and building
improvements. The principal balance was $2,140,007 with
interest accruing at the rate of 3.25%. The loan matures upon
the completion of construction on the property or February 26,
2048, whichever occurs first. The loan is secured by real
property and any ensuing structures.
1,662,007
1,662,007
The Authority issued a mortgage loan to Centerville South
Urban Renewal Associates, L.P. (Roosevelt Manor Phase 9 and
10) to facilitate the construction of new buildings and building
improvements. The principal balance was $1,526,572 with
interest accruing at the rate of 2.75%. The loan matures upon
the completion of construction on the property or February 24,
2050, whichever occurs first. The loan is secured by real
property and any ensuing structures.
1,526,272
1,526,272
31
$
2,702,881
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 6.
NOTES RECEIVABLE (continued)
2013
2012
The Authority issued a mortgage loan to Centerville Urban
Renewal 12, LLC (Roosevelt Community Center Phase 11)
to facilitate the construction of a community center and
building improvements. The principal balance was $1,800,000
and it is a non interest bearing loan. The loan matures upon
the completion of construction on the property or May 9, 2051,
whichever occurs first. The loan is secured by real property
and any ensuing structures.
1,800,000
1,800,000
The Authority issued a mortgage loan to Centerville Urban
Renewal 12, LLC (Roosevelt Manor Phase 12) to facilitate the
construction of new buildings and building improvements.
The principal balance was $2,345,234 with interest accruing at
the rate of 3.25%. The loan matures upon the completion of
construction on the property or May 9, 2048, whichever occurs
first. The loan is secured by real property and any ensuing
structures.
2,345,234
2,345,234
The Authority issued a mortgage loan to Branch Housing
Urban Renewal, LLC. (Branch Village / Roosevelt Manor
Phase 2) to facilitate the construction of new buildings and
building improvements. The principal balance was
$11,204,894 and it is a non interest bearing loan. The loan
matures upon the completion of construction on the property or
September 13, 2060, whichever occurs first. The loan is
secured by real property and any ensuing structures.
11,204,894
11,204,894
The Authority issued a mortgage loan to Westfield Acres
Urban Renewal Associates, L.P. (Westfield Acres) to facilitate
the construction of new buildings and building improvements.
The principal balance is $1,444,882 with interest accruing at
the rate of 3.25%. The loan matures on December 27, 2041.
The loan is secured by real property and any ensuing
structures.
1,444,882
1,444,882
The Authority issued a mortgage loan to Westfield Acres
Urban Renewal Associates II, L.P. (Baldwin's Run Phase 8) to
facilitate the construction of new buildings and building
improvements. The principal balance was $2,184,428 with
interest accruing at the rate of 1%. The loan matures upon the
completion of construction on the property or December, 8,
2056, whichever occurs first. The loan is secured by real
property and any ensuing structures.
2,184,428
2,184,428
32
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 6.
NOTES RECEIVABLE (continued)
2013
The Authority issued a mortgage loan to Westfield Acres
Urban Renewal Associates III, L.P. (Baldwin's Run Phase 9)
to facilitate the construction of new buildings and building
improvements. The principal balance was $747,729 with
interest accruing at the rate of 3.25%. The loan matures upon
the completion of construction on the property or March 21,
2056, whichever occurs first. The loan is secured by real
property and any ensuing structures.
2012
747,729
747,729
$ 27,611,839
$ 27,611,839
As of December 31, 2013 and 2012, the current portion of notes receivable amounted to $-0-.
Accrued interest on notes receivable totaled $3,333,093 and $2,870,295, respectively at December
31, 2013 and 2012.
NOTE 7.
NON-CURRENT LIABILITIES
BONDS & LEASES
2013
2012
During 2004, the Authority entered into a Capital Fund
leveraging pool. The New Jersey Housing and Mortgage
Finance Agency issued tax exempt, twenty year Capital Fund
Program Revenue Bonds, 2004 Series A on December 23,
2004. The Authority’s share of the funds from the bond issue
pool amounted to $6,935,000. Interest accrues at 4.416% and
is payable semi-annually with principal on May 1st and
November 1st. Repayment of the funds shall be paid solely
from Capital Fund allocations received by the Authority from
the Department of Housing and Urban Development.
$
4,760,000 $
5,055,000
Lease purchase agreement originally in the amount of
$2,484,000 for energy efficient improvements. Interest
accrues at 4.00%. Principal and interest payments of $70,060
are due and payable quarterly commencing December 31,
2006, with a final payment due December 31, 2017.
1,031,131
1,264,270
Total bonds & leases
5,791,131
6,319,270
Less: current portion
547,603
519,040
Bonds & leases, excluding current portion
33
$
5,243,528 $
5,800,230
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 7.
NON-CURRENT LIABILITIES (continued)
Annual debt service for principal and interest over the next five years and in five-year increments
thereafter are as follows:
Year
2014
2015
2016
2017
2018
2019-2023
2024-2025
Principal
Interest
Total
$
547,603
567,453
597,704
618,371
365,000
2,100,000
995,000
$
250,282
228,109
203,858
178,426
156,245
514,295
59,220
$
797,885
795,562
801,562
796,797
521,245
2,614,295
1,054,220
$
5,791,131
$
1,590,435
$
7,381,566
Long-term debt activity for the years ended December 31, 2013 and 2012 consisted of the
following:
Description
Capital Fund Revenue Bonds
Commerce Commercial Lease
Compensated Absences
Other liabilities
Description
Capital Fund Revenue Bonds
Commerce Commercial Lease
Compensated Absences
Other liabilities
December 31,
2012
Principal
Payments
Advances
December 31,
2013
Amounts due
within one year
$
5,055,000
1,264,270
414,257
1,674,940
$
25,771
342,284
$
(295,000)
(233,139)
(11,078)
(1,526,776)
$
4,760,000
1,031,131
428,950
490,448
$
305,000
242,603
42,897
340,189
$
8,408,467
$
368,055
$ (2,065,993)
$
6,710,529
$
930,689
December 31,
2011
Principal
Payments
Advances
December 31,
2012
Amounts due
within one year
$
5,340,000
1,488,303
322,402
428,090
$
190,356
1,377,193
$
(285,000)
(224,033)
(98,501)
(130,343)
$
5,055,000
1,264,270
414,257
1,674,940
$
295,000
224,040
41,424
1,526,776
$
7,578,795
$ 1,567,549
$
(737,877)
$
8,408,467
$
2,087,240
As of December 31, 2013 and 2012, other liabilities included an FSS Escrow balance of $150,259
and $148,164, respectively.
Interest expense for the years ended December 31, 2013 and 2012 totaled $269,198 and $289,045
respectively.
34
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 8.
ACCRUED COMPENSATED ABSENCES
The Authority uses the vesting method for the recording of compensated absences whereas benefits
are accrued at the balance sheet date for which payment is probable. As of December 31, 2013 and
2012, the Authority had accrued $428,950 and $414,257 in compensated absences, of which
$42,897 and $41,424, is estimated to be currently due.
NOTE 9.
PENSION PLAN
A. Description of Plans
All required employees of the Authority are covered by the Public Employees' Retirement System
which has been established by state statute and is administered by the New Jersey Division of
Pension and Benefits (Division). According to the State of New Jersey Administrative Code, all
obligations of the System will be assumed by the State of New Jersey should the System terminate.
The Division issues a publicly available financial report that includes the financial statements and
required supplementary information for the Public Employees Retirement System. This report may
be obtained by writing to the Division of Pensions and Benefits, PO Box 295, Trenton, New Jersey,
08625.
B. Public Employees' Retirement System (PERS)
The Public Employees' Retirement System (PERS) was established as of January 1, 1955 under the
provisions of N.J.S.A. 43:15A to provide retirement, death, disability and medical benefits to
certain qualified members. The Public Employees' Retirement System is a cost-sharing multipleemployer plan. Membership is mandatory for substantially all full-time employees of the State
of New Jersey or any county, municipality, school district, or public agency, provided the
employee is not required to be a member of another state-administered retirement system or other
state or local jurisdiction. Medical benefits are now provided by the State Health Benefits
Program.
C. Vesting and Benefit Provisions
The vesting and benefit provisions for PERS are set by N.J.S.A. 43:15A and 43:3B. All benefits
vest after ten years of service, except for medical benefits that vest after 25 years of service.
Retirement benefits for age and service are available at age 60 and are generally determined to be
1/55 of the final average salary for each year of service credit, as defined. Final average salary
equals the average salary for the final three years of service prior to retirement (or highest three
years' compensation if other than the final three years). Members may seek early retirement after
achieving 25 years of service credit or they may elect deferred retirement after achieving eight to
ten years of service in which case benefits would begin the first day of the month after the member
attains normal retirement age. Members are always fully vested for their own contributions and,
after three years of service credit, become vested for 2% of related interest earned on the
contributions. In the case of death before retirement, members' beneficiaries are entitled to full
interest credited to the members' accounts.
35
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 9.
PENSION PLAN (continued)
D. Contribution Requirements – PERS
The contribution policy is set by N.J.S.A. 43:15A and requires contributions by active members
and contributing employers. Plan member and employer contributions may be amended by State of
New Jersey legislation. Members contribute at a uniform rate. The full normal employee
contribution rate became 5.5% of annual compensation, effective July 1, 2007 for most PERS state
employees and effective July 1, 2008 for PERS local employees, based on Chapter 103, P.L. 2007.
The rate for members who are eligible for the Prosecutors Part of PERS (Chapter 366, P.L. 2001) is
8.5% of base salary effective July 1, 2008. Pursuant to the provisions of Chapter 78, P.L. 2011, the
active member contribution rate will be increased from 5.5% of annual compensation to 6.5% plus
an additional 1% phased-in over 7 years beginning in the first year. The rate for members who are
eligible for the Prosecutors Part of PERS (Chapter 366 P.L. 2001) will be increased from 8.5% of
base salary to 10%. For fiscal year 2012, the member contribution rate will increase in October
2011. The phase-in of the additional incremental member contribution rate will take place in July
of each subsequent fiscal year. Employers’ contribution amounts are based on an actuarially
determined rate. The annual employer contributions include funding for basic retirement
allowances, cost-of-living adjustments, and non-contributory death benefits.
Chapter 19, P.L. 2009, effective March 17, 2009, provided an option for local employers to
contribute 50% of the normal and accrued liability contribution amounts certified by PERS for
payment due in State fiscal year 2009. This law also provided that a local employer may pay 100%
of the required contribution. Such an employer will be credited with the full payment and any such
amounts will not be included in their unfunded liability. The actuaries for PERS will determine the
unfunded liability of those retirement systems, by employer, for the reduced normal and accrued
liability contributions provided under this law. This unfunded liability will be paid by the
employer in level annual payments over a period of 15 years beginning with the payments due in
the State fiscal year ending June 30, 2012 and will be adjusted by the rate of return on the actuarial
value of assets.
Year
Funding
Three Year Trend Information for PERS
Annual
Percentage of
Pension Cost
APC
(APC)
Contributed
December 31, 2011
December 31, 2012
December 31, 2013
$
$
$
461,522
521,099
495,060
36
$
100
100
100
Net Pension
Obligation
$
$
$
-
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 10.
POST-RETIREMENT BENEFITS
The Authority participates in New Jersey State Health Benefits Program ("the SHBP"), which
qualifies as a cost-sharing, multiple -employer plan in accordance with GASB Statement 45
"Accounting and Financial Reporting by Employers for Post-employment Benefits Other Than
Pensions" ("OPEB"). The SHBP is administered by the State of New Jersey, Department of
Treasury, Division of Pension and Benefits.
Under the SHBP, retirees may continue the health benefits programs in which they are enrolled at
the time of retirement, provided the retiree pays the costs of the benefits (at group rates) for
themselves and their eligible dependents.
A retiree may also receive Authority-paid health benefits in accordance with labor agreements if
they have twenty-five (25) or more years enrolled in the pension system.
A. Contribution Requirements – SHBP
Contributions to pay for the health premiums of participating employees in the SHBP – Local are
collected from the State of New Jersey, participating local employers, active members, and retired
members. Local employer payments and active and retired member contributions are generally
received on a monthly basis.
Local group employees are not affected by the premium sharing provisions of Chapter 8, P.L.
1996. Chapter 2, P.L. 2010, effective May 21, 2010, requires a minimum contribution of 1.5% of
base salary toward the cost of health care benefits coverage by all active public employees.
Employees of the State, local governments, and boards of education who become a member of a
State or locally-administered retirement system on or after the law’s effective date would be
required to pay in retirement 1.5% of their pension benefit toward the cost of health care coverage
under the SHBP.
Chapter 78, P.L. 2011, effective June 28, 2011, established new employee contribution
requirements towards the cost of employer provided health benefit coverage. Employees are
required to contribute a certain percentage of the cost of coverage. The rate of contribution is
determined based on the employee’s annual salary and the selected level of coverage. The
increased employee contributions will be phased in over a 4-year period for those employed prior
to Chapter 78’s effective date with a minimum contribution required to be at least 1.5% of salary.
For those employed on or after June 28, 2011, the 4-year phase-in does not apply and contributions
based on the full percentage rate of contribution are required. Under Chapter 78, certain future
retirees eligible for employer-paid health care coverage at retirement will also be required to pay a
percentage of the cost of their medical coverage determined on the basis of their annual retirement
benefit.
The State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, issues
publicly available financial reports that include the financial statements and required
supplementary information of the SHBP. The financial reports may be obtained by writing to the
State of New Jersey, Department of the Treasury, Division of Pensions and Benefits, P.O. Box 295,
Trenton, New Jersey 08625-0295.
37
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 10.
POST-RETIREMENT BENEFITS (continued)
The SHBP is established under the authority of N.J.S.A. 52:14-17.25 et seq. and regulations
adopted by the State Health Benefits Commission. At December 31, 2013 there were
approximately 64 retired Authority participants in the system. The required contribution rate is
determined on an annual pay as you go basis. The following were the required contributions to the
SHBP:
Year
Amount
2013
2012
2011
NOTE 11.
$
$
$
868,063
735,405
757,866
RESTRICTED NET POSITION
Restricted net position consists of the following at December 31, 2013 and 2012:
Category
2013
Housing assistance payment reserves
Neighborhood Stabilization Program (NSP) reserves
Hope VI mortgage loan reserves and related
accrued interest
$
344,847
76,864
2012
$
755,850
9,507
30,944,932
30,678,870
$ 31,366,643
$ 31,444,227
Housing assistance payment reserves are restricted for use only in the Housing Choice Voucher
Program for tenant rents.
Neighborhood Stabilization Program reserves are restricted for capital purchases in accordance
with NSP program regulations.
Hope VI mortgage loan reserves are restricted for use in the Hope VI program upon collection of
the loan and the satisfaction of regulatory requirements.
38
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 12.
LEASING ACTIVITIES
The Authority is the lessor of dwelling units mainly 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. The Authority may cancel the lease only for cause.
Revenues associated with theses leases are recorded in the financial statements and schedules as
"Rental Revenue". Rental Revenue per dwelling unit generally remains consistent from year to
year, but is affected by general economic conditions which impact personal income and local job
availability.
NOTE 13.
GROUND LEASE AGREEMENTS
As of December 31, 2013 and 2012, the Authority has entered into eight ground leases with
selected developers in furtherance of their HOPE VI redevelopment objectives. In accordance with
Generally Accepted Accounting Principles, these leases are classified as operating leases which
expire over various periods from 90 to 99 years.
The leases are summarized as follows:
NOTE 14.
AMP
Development
Settlement
Date
Lease
Term
Expiration
Date
Lease
Price
4
8
11
9
12
10
13
19
Chelton Terrace Phase 2
Roosevelt Manor Phase 5
Roosevelt Manor Phase 7
Roosevelt Manor Phases 9&10
Roosevelt Manor Phase 12
Branch Village Phase 2
Westfield Acres Phase 1
Baldwin's Run Phase 9
08/26/2004
12/21/2007
02/26/2008
07/01/2009
05/09/2008
09/13/2010
12/27/2001
03/21/2006
99 years
99 years
90 years
99 years
90 years
90 years
99 years
99 years
08/25/2103
12/20/2106
02/26/2098
06/30/2108
05/09/2098
09/12/2100
12/27/2100
03/21/2105
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
ECONOMIC DEPENDENCY
The Section 8 and the Low Rent Public Housing programs are economically dependent on annual
grants from HUD.
39
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
NOTE 15.
CONTINGENCIES
The Authority receives financial assistance from HUD in the form of grants and subsidies.
Entitlement to the funds is generally conditional upon compliance with terms and conditions of the
grant agreements and applicable regulations, including the expenditure of funds for eligible
purposes. Substantially all grants, entitlements and cost reimbursements are subject to financial
and compliance audits by HUD. As a result of these audits, costs previously reimbursed could be
disallowed and require payments to HUD. As of December 31, 2013 and 2012, the Authority
estimates that no material liabilities will result from such audits other than what has been disclosed
herein.
NOTE 16.
RISK MANAGEMENT
The Authority is exposed to various risks related to torts, theft of, damage to and destruction of
assets; error and omission, injuries to employees; and natural disaster. Significant losses are
covered by commercial insurance for all major programs, there have been no significant reductions
in insurance coverage. Claims expenditures and liabilities are reported when it is probable that a
loss has occurred, the amount of the loss can be reasonably estimated, and said amount exceeds
insurance coverage. Settlement amounts have not exceeded insurance coverage for the last three
years.
NOTE 17.
SUBSEQUENT EVENTS
Events that occur after the financial statement date but before the financial statements were
available to be issued must be evaluated for recognition or disclosure. The effects of subsequent
events that provide evidence about conditions that existed at the financial statement date are
recognized in the accompanying financial statements. Subsequent events which provide evidence
about conditions that existed after the financial statement date require disclosure in the
accompanying notes to the financial statements. Management evaluated the activity of the
Authority through September 4, 2014 (the date the financial statements were available to be issued)
and concluded that no subsequent events have occurred that would require recognition in the
financial statements or disclosure in the notes to the financial statements.
40
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
To the Board of Commissioners
Housing Authority of the City of Camden:
We have audited, in accordance with the auditing standards generally accepted in the United States of America and
the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller
General of the United States and audit requirements as prescribed by the Division of Local Government Services,
Department of Community Affairs, State of New Jersey, the financial statements of the Housing Authority of the
City of Camden ("the Authority") as of and for the year ended December 31, 2013, and the related notes to the
financial statements, which collectively comprise Housing Authority of the City of Camden's basic financial
statements, and have issued our report thereon dated September 4, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered Housing Authority of the City of
Camden's internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for
the purpose of expressing an opinion on the effectiveness of Housing Authority of the City of Camden's internal
control. Accordingly, we do not express an opinion on the effectiveness of Housing Authority of the City of
Camden's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal
control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements
will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to
merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and
was not designed to identify all deficiencies in internal control that might be material weaknesses or significant
deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that
we consider to be material weaknesses. However, material weaknesses may exist that have not been identified.
252 Washington Street
Suite B
Toms River, NJ 08753
732-503-4257 Main
732-341-1424 Fax
www.falloncpa.com
41
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 (continued)
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Housing Authority of the City of Camden's financial
statements are free from material misstatement, we performed tests of its compliance with certain provisions of
laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
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 entity’s internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not
suitable for any other purpose.
September 4, 2014
Toms River, New Jersey
Fallon & Larsen LLP
42
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Board of Commissioners
Housing Authority of the City of Camden:
Report on Compliance for Each Major Federal Program
We have audited the Housing Authority of the City of Camden compliance with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and material
effect on each of Housing Authority of the City of Camden's major federal programs for the year ended December
31, 2013. Housing Authority of the City of Camden's major federal programs are identified in the summary of
auditor’s results section of the accompanying schedule of findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of Housing Authority of the City of Camden's
major federal programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to
obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to
above that could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about Housing Authority of the City of Camden's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of Housing Authority of the City of Camden's
compliance.
252 Washington Street
Suite B
Toms River, NJ 08753
732-503-4257 Main
732-341-1424 Fax
www.falloncpa.com
43
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 (continued)
Opinion on Each Major Federal Program
In our opinion, Housing Authority of the City of Camden complied, in all material respects, with the types of
compliance requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended December 31, 2013.
Report on Internal Control Over Compliance
Management of Housing Authority of the City of Camden 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 Housing Authority of the City of Camden's
internal control over compliance with the types of requirements that could have a direct and material effect on
each major federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and report on internal
control over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an
opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of Housing Authority of the City of Camden's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in internal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a
combination of deficiencies, in internal control over compliance with a type of compliance requirement of a
federal program that is less severe than a material weakness in internal control over compliance, yet important
enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control over compliance that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified.
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.
44
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS
APPLICABLE TO EACH MAJOR PROGRAM AND INTERNAL CONTROL
OVER COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133 (continued)
Report on Schedule of Expenditures of Federal Awards Required by OMB Circular A-133
We have audited the financial statements of Housing Authority of the City of Camden as of and for the year ended
December 31, 2013, and have issued our report thereon dated September 4, 2014, which contained an unmodified
opinion on those financial statements. Our audit was conducted for the purpose of forming an opinion on the
financial statements as a whole. The accompanying schedule of expenditures of federal awards is presented for
purposes of additional analysis as required by OMB Circular A-133 and is not a required part of the financial
statements. Such information is the responsibility of management and was derived from and relates directly to the
underlying accounting and other records used to prepare the financial statements. The information has been
subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the 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, the schedule of expenditure of federal awards is fairly stated in all material respects in relation to the
financial statements as a whole.
Fallon & Larsen LLP
September 4, 2014
Toms River, New Jersey
45
HOUSING AUTHORITY OF THE CITY OF CAMDEN
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2013
Federal and State
Grantor/Program Title
Federal CFDA
Number
Grant
Expenditures
U.S. Department of Housing and Urban Development:
Opportunities for Youth - Youthbuild Program
Low Rent Public Housing
Choice Neighborhood Planning Grant
Resident Opportunity and Supportive Services
Section 8 Housing Choice Voucher Program
ARRA - Neighborhood Stabilization Program
Public Housing Capital Fund Program
17.274
14.850a
14.892
14.870
14.871
14.256
14.872
810,035
8,603,750
147,100
38,505
12,784,348
701,323
2,931,671
U.S. Department of Health and Human Services:
Passed through the State of New Jersey:
Assisted Living - Medical Assistance Program
93.778
905,641
84.002
38,062
U.S. Department of Education:
Passed through Camden County College:
Adult Education State Grant Program
$
See accompanying Notes to the Schedule of Expenditures of Federal Awards
46
26,960,435
HOUSING AUTHORITY OF THE CITY OF CAMDEN
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED DECEMBER 31, 2013
NOTE 1.
BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity
of Housing Authority of the City of Camden under programs of the federal government for the year
ended December 31, 2013. The information in this schedule is presented in accordance with the
requirements of OMB Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations. Because the schedule presents only a selected portion of operations of the Housing
Authority of the City of Camden, it is not intended to and does not present the financial position,
changes in net position or cash flows of the Housing Authority of the City of Camden.
NOTE 2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the accrual basis of accounting. Such
expenditures are recognized following the principles contained in OMB Circular A-87, Cost
Principles for State, Local and Indian Tribes, wherein certain types of expenditures are not
allowable or are limited as to reimbursement. Negative amounts shown on the Schedule represent
adjustments or credits made in the normal course of business to amounts reported as expenditures
in prior years. Pass-through entity identifying numbers are presented where available.
NOTE 3.
SUBRECIPIENTS
The Authority did not pass through any federal awards to subrecipients
NOTE 4.
NON-CASH FEDERAL ASSISTANCE
The Authority did not receive any non-cash Federal assistance for the year ended December 31,
2013.
47
HOUSING AUTHORITY OF THE CITY OF CAMDEN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED DECEMBER 31, 2013
I.
Summary of Auditor's Results
Financial Statement Section
1.
Type of auditor's report issued:
2.
Internal control over financial reporting
3.
Unmodified
a.
Material Weakness(es) identified?
No
b.
Were significant deficiencies identified not
considered to be material weaknesses?
No
Noncompliance material to the financial statements?
No
Federal Awards Section
1.
Dollar threshold used to distinguish between type
A and type B programs:
$808,813
2.
Auditee qualified as low-risk Auditee?
Yes
3.
Type of auditor's report on compliance
for major programs:
Unmodified
4.
Internal Control over compliance:
a.
Material weakness(es) identified?
No
b.
Were significant deficiencies identified
not considered to be material weaknesses?
No
Any audit findings disclosed that are required
to be reported in accordance with OMB Circular
A-133 (section .510(a)) ?
No
c.
5.
Identification of major programs:
CFDA Number
Name of Federal Program
14.870
17.274
93.778
Housing Choice Voucher Program
Youthbuild
Medicaid
48
HOUSING AUTHORITY OF THE CITY OF CAMDEN
SCHEDULE OF FINDINGS AND QUESTIONED COSTS (continued)
FOR THE YEAR ENDED DECEMBER 31, 2013
II.
Financial Statement Findings
None.
III.
Federal Award Findings and Questioned Costs
None.
IV.
Schedule of Prior Year Federal Audit Findings
None.
49
HOUSING AUTHORITY OF THE CITY OF CAMDEN
SCHEDULE OF CAPITAL FUND PROGRAM COSTS AND ADVANCES
FOR THE YEAR ENDED DECEMBER 31, 2013
RHF2-08
Budget
Advances:
Cumulative through 12/31/12
Current Year
Cumulative through 12/31/13
$
947,176
$
$
362,138
362,138
$
Costs:
Cumulative through 12/31/12
Current Year
Cumulative through 12/31/13
Excess / (Deficiency)
RHFP-09
362,138
362,138
996,355
-
RHFP-10
$
$
99,635
99,635
$
-
$
$
-
$
869,844
-
RHF-11A
$
$
86,984
86,984
(99,635) $
273,027
-
RHF-11C
C501-10
501-11
501-12
501-13
$
80,151
$
279,044
$
2,230,168
$
2,302,114
$
2,259,565
$
2,200,378
$
-
$
2,494,690
240,103
2,734,793
$
140,501
408,380
548,881
$
796,843
1,307,855
2,104,698
$
1,348,127
1,348,127
$
367,663
367,663
27,303
27,303
(86,984) $
501-10
8,015
8,015
(27,303) $
2,496,088
250,505
2,746,593
(8,015) $
219,429
392,422
611,851
(11,800) $
1,525,347
654,895
2,180,242
(62,970) $
701,225
766,430
1,467,655
(75,544) $
Totals
$ 12,437,822
$
645,484
645,484
(119,528) $
3,794,172
3,672,128
7,466,300
5,304,227
2,931,673
8,235,900
(277,821) $
(769,600)
Summary
Soft Costs:
Cumulative through 12/31/12
Current Year
Cumulative through 12/31/13
Hard Costs:
Cumulative through 12/31/12
Current Year
Cumulative through 12/31/13
Cumulative
362,138
362,138
$
362,138
99,635
99,635
$
$
99,635
86,984
86,984
$
$
86,984
27,303
27,303
$
8,015
8,015
$
27,303
$
$
8,015
50
1,459,869
20,975
1,480,844
$
1,036,219
229,530
1,265,749
$
2,746,593
78,930
392,420
471,350
$
140,501
140,501
$
611,851
1,237,096
37,096
1,274,192
$
288,251
617,799
906,050
$
2,180,242
678,434
264,693
943,127
$
22,791
501,737
524,528
$
1,467,655
642,476
642,476
$
3,008
3,008
$
645,484
3,454,329
1,579,597
5,033,926
1,849,900
1,352,074
3,201,974
$
8,235,900
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
PROJECTS
HOUSING CHOICE OTHER FEDERAL
VOUCHERS
PROGRAM 1
RESIDENT
OPPORT. AND
SUPPORTIVE
SERVICES
OPPORT. FOR
YOUTH YOUTHBUILD
PROGRAM
BUSINESS
ACTIVITIES 1
ADULT
EDUCATION
STATE GRANT
PROGRAM
Line Item #
111
112
113
114
115
100
121
122
124
125
126
126.1
126.2
127
128
128.1
129
120
131
132
135
142
143
143.1
144
145
150
161
162
163
164
165
166
167
168
160
171
172
174
175
176
ASSETS:
CURRENT ASSETS:
Cash:
Cash - unrestricted
Cash - restricted - modernization and development
Cash - other restricted
Cash - tenant security deposits
Cash - restricted for payment of current liabilities
Total cash
$
Accounts and notes receivables:
Accounts receivable - PHA projects
Accounts receivable - HUD other projects
Accounts receivable - other government
Accounts receivable - miscellaneous
Accounts receivable- tenants
Allowance for doubtful accounts - tenants
Allowance for doubtful accounts - other
Notes and mortgages receivable- current
Fraud recovery
Allowance for doubtful accounts - fraud
Accrued interest receivable
Total receivables, net of allowances for doubtful accounts
Current investments
Investments - unrestricted
Investments - restricted
Investments - restricted for payment of current liability
Prepaid expenses and other assets
Inventories
Allowance for obsolete inventories
Interprogram - due from
Assets held for sale
TOTAL CURRENT ASSETS
NONCURRENT ASSETS:
Fixed assets:
Land
Buildings
Furniture, equipment & machinery - dwellings
Furniture, equipment & machinery - administration
Leasehold improvements
Accumulated depreciation
Construction in Progress
Infrastructure
Total fixed assets, net of accumulated depreciation
$
444,993
453,534
898,527
-
$
30,299
30,299
$
-
$
18,865
18,865
$
-
23,165
147,205
(147,205)
23,165
202,650
202,650
16,580
16,580
196,643
109,088
305,731
-
14,850
14,850
228,221
281,148
6,051,540
3,063
924,755
12,978
215,628
46,879
305,731
7,800
26,665
14,850
-
-
26,665
14,850
-
27,611,839
3,333,093
-
$
$
769,600
207,785
235,371
(169,376)
1,043,380
1,169,182
166,443,950
335,226
913,966
(145,528,551)
7,548,875
30,882,648
Other non-current assets:
Notes and mortgages receivable - non-current
Notes and mortgages receivable-non-current - past due
Other assets
Undistributed debits
Investment in joint ventures
180
TOTAL NONCURRENT ASSETS
190 TOTAL ASSETS
3,906,282
220,443
116,137
255,929
4,498,791
61,827,580
67,879,120
924,755
$
51
-
$
215,628
-
$
46,879
-
$
305,731
$
$
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
HOUSING CHOICE OTHER FEDERAL
VOUCHERS
PROGRAM 1
PROJECTS
RESIDENT
OPPORT. AND
SUPPORTIVE
SERVICES
OPPORT. FOR
YOUTH YOUTHBUILD
PROGRAM
BUSINESS
ACTIVITIES 1
ADULT
EDUCATION
STATE GRANT
PROGRAM
Line Item #
311
312
313
321
322
324
325
331
332
333
341
342
343
344
345
346
347
310
351
352
353
354
355
356
357
350
300
LIABILITIES AND EQUITY
Liabilities:
Current Liabilities:
Bank overdraft
Accounts payable < 90 days
Accounts payable > 90 days past due
Accrued wage/payroll taxes payable
Accrued compensated absences - current portion
Accrued contingency liability
Accrued interest payable
Accounts payable - HUD PHA programs
Accounts payable - PHA projects
Accounts payable - other government
Tenant security deposits
Deferred revenue
Current portion of L-T debt - capital projects
Current portion of L-T debt - operating borrowings
Other current liabilities
Accrued liabilities - other
Interprogram - due to
TOTAL CURRENT LIABILITIES
$
NONCURRENT LIABILITIES:
Long-term debt, net of current - capital projects
Long-term debt, net of current - operating borrowings
Non-current liabilities- other
Accrued compensated absences - noncurrent
Loan Liability - Non Current
FASB 5 Liabilities
Accrued pension and OPEB liabilities
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
483,166
51,728
16,916
35,923
255,929
29,650
547,603
196,689
44,581
1,662,185
$
1,864
11,228
3,533
1,041
17,666
5,243,528
22,707
152,233
5,418,468
7,080,653
108,687
31,797
140,484
158,150
EQUITY:
Invested in Capital Assets, Net of Related Debt
Restricted Net Assets
Unrestricted Net Assets
25,091,517
30,944,932
4,762,018
344,847
421,758
513
TOTAL EQUITY
60,798,467
766,605
600
TOTAL LIABILITIES AND EQUITY
508.1
511.1
512.1
Proof of concept
$
67,879,120
$
924,755
-
-
52
$
105
23,781
1,478
176,965
202,329
$
13,299
13,299
215,628
$
2,235
244
27,922
30,401
$
291,774
291,774
$
-
$
1,744
2,729
10,377
14,850
2,194
32,595
291,774
18,865
18,865
18,865
14,850
-
14,284
13,957
7,800
-
-
14,284
215,628
-
2,194
$
46,879
-
13,957
$
305,731
-
7,800
$
26,665
-
$
14,850
-
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
CHOICE
NEIGHBORHOODS
PLANNING GANTS
ARRA
COMPETITIVE 84
NEIGHBORHOOD
STABILIZATION OTHER FEDERAL
14256
PROGRAM 2
$
$
COCC
ELIMINATION
TOTAL
Line Item #
111
112
113
114
115
100
121
122
124
125
126
126.1
126.2
127
128
128.1
129
120
131
132
135
142
143
143.1
144
145
150
161
162
163
164
165
166
167
168
160
171
172
174
175
176
ASSETS:
CURRENT ASSETS:
Cash:
Cash - unrestricted
Cash - restricted - modernization and development
Cash - other restricted
Cash - tenant security deposits
Cash - restricted for payment of current liabilities
Total cash
$
Accounts and notes receivables:
Accounts receivable - PHA projects
Accounts receivable - HUD other projects
Accounts receivable - other government
Accounts receivable - miscellaneous
Accounts receivable- tenants
Allowance for doubtful accounts - tenants
Allowance for doubtful accounts - other
Notes and mortgages receivable- current
Fraud recovery
Allowance for doubtful accounts - fraud
Accrued interest receivable
Total receivables, net of allowances for doubtful accounts
-
-
76,864
76,864
$
-
$
198,521
198,521
$
-
$
7,107
7,107
-
8,228
8,228
-
79,827
79,827
Current investments
Investments - unrestricted
Investments - restricted
Investments - restricted for payment of current liability
Prepaid expenses and other assets
Inventories
Allowance for obsolete inventories
Interprogram - due from
Assets held for sale
TOTAL CURRENT ASSETS
7,107
-
50,023
135,115
-
16,832
219,119
514,299
NONCURRENT ASSETS:
Fixed assets:
Land
Buildings
Furniture, equipment & machinery - dwellings
Furniture, equipment & machinery - administration
Leasehold improvements
Accumulated depreciation
Construction in Progress
Infrastructure
Total fixed assets, net of accumulated depreciation
98,749
98,749
-
16,269,114
16,269,114
-
24,544
(13,324)
11,220
-
1,169,182
166,443,950
335,226
938,510
(145,541,875)
23,916,738
47,261,731
98,749
105,856
-
16,269,114
16,404,229
-
11,220
525,519
(558,090) $
27,611,839
3,333,093
-
Other non-current assets:
Notes and mortgages receivable - non-current
Notes and mortgages receivable-non-current - past due
Other assets
Undistributed debits
Investment in joint ventures
180
TOTAL NONCURRENT ASSETS
190 TOTAL ASSETS
$
$
53
$
$
$
-
4,580,095
297,307
588,536
255,929
5,721,867
(558,090)
(558,090)
$
981,578
326,588
327,357
235,371
(169,376)
147,205
(147,205)
1,701,518
261,094
7,684,479
78,206,663
85,891,142
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
CHOICE
NEIGHBORHOODS
PLANNING GANTS
ARRA
COMPETITIVE 84
NEIGHBORHOOD
STABILIZATION OTHER FEDERAL
14256
PROGRAM 2
$
$
COCC
ELIMINATION
TOTAL
Line Item #
311
312
313
321
322
324
325
331
332
333
341
342
343
344
345
346
347
310
351
352
353
354
355
356
357
350
300
508.1
511.1
512.1
LIABILITIES AND EQUITY
Liabilities:
Current Liabilities:
Bank overdraft
Accounts payable < 90 days
Accounts payable > 90 days past due
Accrued wage/payroll taxes payable
Accrued compensated absences - current portion
Accrued contingency liability
Accrued interest payable
Accounts payable - HUD PHA programs
Accounts payable - PHA projects
Accounts payable - other government
Tenant security deposits
Deferred revenue
Current portion of L-T debt - capital projects
Current portion of L-T debt - operating borrowings
Other current liabilities
Accrued liabilities - other
Interprogram - due to
TOTAL CURRENT LIABILITIES
$
NONCURRENT LIABILITIES:
Long-term debt, net of current - capital projects
Long-term debt, net of current - operating borrowings
Non-current liabilities- other
Accrued compensated absences - noncurrent
Loan Liability - Non Current
FASB 5 Liabilities
Accrued pension and OPEB liabilities
TOTAL NONCURRENT LIABILITIES
TOTAL LIABILITIES
EQUITY:
Invested in Capital Assets, Net of Related Debt
Restricted Net Assets
Unrestricted Net Assets
513
TOTAL EQUITY
600
TOTAL LIABILITIES AND EQUITY
Proof of concept
636
6,471
7,107
252
57,999
58,251
$
-
$
12,705
43,736
20,726
3,344
48,737
129,248
7,107
-
58,251
-
186,530
186,530
315,778
98,749
-
-
16,269,114
76,864
-
-
11,220
198,521
98,749
$
-
105,856
$
-
-
54
16,345,978
$
16,404,229
-
$
-
$
525,519
-
497,840
135,340
42,897
35,923
255,929
93,722
547,603
246,467
1,855,721
(558,090)
5,243,528
150,259
386,053
5,779,840
7,635,561
-
209,741
$
$
(558,090)
(558,090)
$
41,470,600
31,366,643
5,418,338
-
78,255,581
(558,090) $
85,891,142
-
-
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
OPERATING
HOUSING CHOICE OTHER FEDERAL
VOUCHERS
PROGRAM 1
CAPITAL
OPPORT. FOR
YOUTH YOUTHBUILD
PROGRAM
BUSINESS
ACTIVITIES 1
RESIDENT
OPPORT. AND
SUPPORTIVE
SERVICES
ADULT
EDUCATION
STATE GRANT
PROGRAM
Line Item #
70300
70400
70500
70600
70610
70710
70720
70730
70750
70800
71100
71200
71300
71301
71400
71500
71600
72000
REVENUE:
Net tenant rental revenue
Tenant revenue - other
Total tenant revenue
HUD PHA grants
Capital grants
Management fee
Asset management fee
Book keeping fee
Other fees
Other government grants
Investment income - unrestricted
Mortgage interest income
Proceeds from disposition of asseets held for sale
Cost of sale of assets
Fraud recovery
Other revenue
Gain or loss on sale of fixed assets
Investment income - restricted
70000 TOTAL REVENUE
$
$
2,897,233
96,974
2,994,207
$
$
-
$
-
$
-
$
-
$
-
$
-
$
-
8,211,328
392,422
2,463
462,798
273,166
185
1,579,597
1,352,074
-
11,945,689
54,787
397,960
-
905,641
-
301,114
-
700,894
109,141
25,000
-
38,505
1,800
-
38,062
38,040
-
12,336,569
2,931,671
12,398,436
905,641
301,114
835,035
40,305
76,102
803,295
29,520
871,156
156,327
534,325
92,085
36,883
4,137
2,525,432
424,337
88,131
162,390
10,044
143,679
83,198
85,489
54,253
400
3,853
16,680
18,000
1,280
19,830
16,610
3,704
1,118
2,344
30,629
17,363
821
20,033
-
8,278
924
-
-
-
-
-
38,505
-
51,059
8,891
6,812
-
-
EXPENSES:
Administrative
91100
91200
91300
91310
91400
91500
91600
91700
91800
91810
91900
Administrative salaries
Auditing fees
Outside management fees
Book-keeping fee
Advertising and marketing
Employee benefit contributions- administrative
Office expenses
Legal expenses
Travel
Allocated overhead
Other
92000
Asset Management Fee
131,760
-
257,003
409,128
259,708
244
-
745,597
492,524
650,378
100,253
368,189
65,916
-
-
-
Tenant services
92100
92200
92300
92400
Tenant services - salaries
Relocation costs
Employee benefit contributions- tenant services
Tenant services - other
217,767
114,641
-
648,522
122,513
2,994
139,256
35,995
136,739
280,896
135,908
335,428
Utilities
93100
93200
93300
93400
93500
93600
93700
93800
Water
Electricity
Gas
Fuel
Labor
Sewer
Employee benefit contributions- utilities
Other utilities expense
55
12,943
2,181
-
-
-
-
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
OPERATING
HOUSING CHOICE OTHER FEDERAL
VOUCHERS
PROGRAM 1
CAPITAL
BUSINESS
ACTIVITIES 1
OPPORT. FOR
YOUTH YOUTHBUILD
PROGRAM
RESIDENT
OPPORT. AND
SUPPORTIVE
SERVICES
ADULT
EDUCATION
STATE GRANT
PROGRAM
Line Item #
Ordinary maintenance & operation
94100
94200
94300
94500
Ordinary maintenance and operations - labor
Ordinary maintenance and operations - materials & other
Ordinary maintenance and operations - contract costs
Employee benefit contributions- ordinary maintenance
883,828
153,319
628,146
616,011
-
285
789
-
202,116
18,000
139,125
-
-
5,785
657
-
225
-
-
-
-
-
-
-
-
Protective services
95100
95200
95300
95500
Protective services - labor
Protective services- other contract costs
Protective services - other
Employee benefit contributions- protective services
96100
96200
96210
96300
96400
96500
96600
96700
96710
96730
96800
96900
97000
Insurance premiums
Other general expenses
Compensated absences
Payments in lieu of taxes
Bad debt - tenant rents
Bad debt- mortgages
Bad debt - other
Interest expense
Interest of mortgage (or bonds) payable
Amortization of bond issue costs
Severance expense
TOTAL OPERATING EXPENSES
97100
97200
97300
97350
97400
97500
97800
Extraordinary maintenance
Casualty losses - non capitalized
Housing assistance payments
HAP Portability - in
Depreciation expense
Fraud losses
Dwelling units rent expense
-
General expenses
EXCESS OPERATING REVENUE OVER OPERATING EXPENSES
90000 TOTAL EXPENSES
695,842
74,178
(2,966)
97,160
47,101
12,085,476
251,093
81,092
4,466,066
16,632,634
222,097
734,809
39,586
20,822
3,485
972,485
2,196,862
11,425,951
7,951
11,525,845
278,067
-
734,809
56
12,784,348
65,588
3,862
905,641
2,437
321,818
821,078
38,505
138
76,102
-
(20,704)
13,957
1,800
-
-
-
-
-
-
38,505
76,102
905,641
321,818
821,078
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
OPERATING
HOUSING CHOICE OTHER FEDERAL
VOUCHERS
PROGRAM 1
CAPITAL
OPPORT. FOR
YOUTH YOUTHBUILD
PROGRAM
BUSINESS
ACTIVITIES 1
RESIDENT
OPPORT. AND
SUPPORTIVE
SERVICES
ADULT
EDUCATION
STATE GRANT
PROGRAM
Line Item #
OTHER FINANCING SOURCES (USES)
10010
Operating transfers in
10020
Operating transfers out
747,367
-
10030
Operating transfers from/to primary government
-
10040
Operating transfers from/to component unit
10070
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Extraordinary items, net gain/loss
-
-
-
-
-
-
-
-
10080
Special items (net gain/loss)
-
-
-
-
-
-
-
-
10091
Inter Project excess cash transfer in
2,850,000
-
-
-
-
-
-
-
10092
Inter Project excess cash transfer out
(2,850,000)
-
-
-
-
-
-
-
10093
Transfers between program and project in
-
-
-
-
-
-
-
-
10094
Transfers between program and project out
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(20,704)
13,957
1,800
-
-
-
-
-
-
10100 TOTAL OTHER FINANCING SOURCES (USES)
(747,367)
747,367
10000 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES
(747,367)
(3,548,698)
1,449,495
(385,912)
MEMO ACCOUNT INFORMATION:
11020
Required annual debt principal payments
233,138
11030
Beginning equity
11040
Prior period adjustments and equity transfers
11170
Administrative fee equity
11180
Housing assistance payments equity
11190
Unit months available
11210
Number of unit months leased
21,153
295,000
63,261,579
-
-
(363,909)
1,152,517
-
-
-
(363,909)
34,988
-
6,000
-
363,909
-
-
-
-
-
421,758
-
-
-
-
-
-
344,847
-
-
-
-
-
-
-
766,605
-
-
-
-
-
21,672
-
15,560
-
-
-
-
-
-
15,560
-
-
-
-
-
Equity Roll Forward Test:
Calculation from R/E Statement
$
60,798,467
$
-
$
766,605
$
-
$
14,284
$
13,957
$
7,800
$
-
B/S Line 513
$
$
60,798,467
-
$
$
-
$
$
766,605
-
$
$
-
$
$
14,284
-
$
$
13,957
-
$
$
7,800
-
$
$
-
57
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
CHOICE
NEIGHBORHOODS
PLANNING GRANTS
NEIGHBORHOOD
STABILIZATION
14256
$
$
COCC
ELIMINATION
TOTAL
Line Item #
70300
70400
70500
70600
70610
70710
70720
70730
70750
70800
71100
71200
71300
71301
71400
71500
71600
72000
REVENUE:
Net tenant rental revenue
Tenant revenue - other
Total tenant revenue
-
HUD PHA grants
Capital grants
Management fee
Asset management fee
Book keeping fee
Other fees
Other government grants
Investment income - unrestricted
Mortgage interest income
Proceeds from disposition of asseets held for sale
Cost of sale of assets
Fraud recovery
Other revenue
Gain or loss on sale of fixed assets
Investment income - restricted
70000 TOTAL REVENUE
-
$
-
$
-
$
2,897,233
96,974
2,994,207
48,351
98,749
-
123,533
577,790
625,624
-
1,622,476
131,760
239,525
22,187
163,566
-
(1,622,476)
(131,760)
(239,525)
(22,187)
-
22,647,897
2,421,035
1,052,844
2,463
462,798
54,787
1,826,270
185
147,100
1,326,947
2,179,514
(2,015,948)
31,462,486
16,280
30,795
118,395
14,138
1,186,275
6,396
12,237
511,610
134,279
21,210
9,333
163,302
(1,622,476)
(239,525)
(22,187)
-
2,151,960
45,960
13,517
1,131,424
307,605
58,493
19,262
2,878,389
EXPENSES:
Administrative
91100
91200
91300
91310
91400
91500
91600
91700
91800
91810
91900
Administrative salaries
Auditing fees
Outside management fees
Book-keeping fee
Advertising and marketing
Employee benefit contributions- administrative
Office expenses
Legal expenses
Travel
Allocated overhead
Other
92000
Asset Management Fee
-
-
-
(131,760)
-
1,276
-
66,381
-
1,633,008
244
827,076
809,338
-
-
45,178
418
-
-
745,597
550,645
652,977
100,253
368,189
65,916
-
Tenant services
92100
92200
92300
92400
Tenant services - salaries
Relocation costs
Employee benefit contributions- tenant services
Tenant services - other
Utilities
93100
93200
93300
93400
93500
93600
93700
93800
Water
Electricity
Gas
Fuel
Labor
Sewer
Employee benefit contributions- utilities
Other utilities expense
58
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
CHOICE
NEIGHBORHOODS
PLANNING GRANTS
NEIGHBORHOOD
STABILIZATION
14256
COCC
ELIMINATION
TOTAL
Line Item #
Ordinary maintenance & operation
94100
94200
94300
94500
Ordinary maintenance and operations - labor
Ordinary maintenance and operations - materials & other
Ordinary maintenance and operations - contract costs
Employee benefit contributions- ordinary maintenance
-
-
4,385
10,207
6,963
-
-
888,213
169,596
636,780
616,011
-
-
2,471
-
-
202,116
18,000
2,471
139,125
Protective services
95100
95200
95300
95500
Protective services - labor
Protective services- other contract costs
Protective services - other
Employee benefit contributions- protective services
96100
96200
96210
96300
96400
96500
96600
96700
96710
96730
96800
96900
97000
Insurance premiums
Other general expenses
Compensated absences
Payments in lieu of taxes
Bad debt - tenant rents
Bad debt- mortgages
Bad debt - other
Interest expense
Interest of mortgage (or bonds) payable
Amortization of bond issue costs
Severance expense
TOTAL OPERATING EXPENSES
97100
97200
97300
97350
97400
97500
97800
Extraordinary maintenance
Casualty losses - non capitalized
Housing assistance payments
HAP Portability - in
Depreciation expense
Fraud losses
Dwelling units rent expense
General expenses
EXCESS OPERATING REVENUE OVER OPERATING EXPENSES
48,351
246,820
379,353
123,603
466
18,953
2,323,667
98,749
947,594
(144,153)
-
90000 TOTAL EXPENSES
48,351
59
379,353
4,909
2,328,576
(2,015,948)
924,757
342,286
25,771
97,160
269,198
16,691,337
-
14,771,149
-
89,043
11,525,845
278,067
4,470,975
-
(2,015,948)
33,055,267
Housing Authority of the City of Camden
NJ010
Financial Data Schedule (FDS)
December 31, 2013
Account Description
CHOICE
NEIGHBORHOODS
PLANNING GRANTS
NEIGHBORHOOD
STABILIZATION
14256
COCC
ELIMINATION
TOTAL
Line Item #
OTHER FINANCING SOURCES (USES)
10010
Operating transfers in
-
-
-
(747,367)
-
10020
Operating transfers out
-
-
-
747,367
-
10030
Operating transfers from/to primary government
-
-
-
-
-
10040
Operating transfers from/to component unit
-
-
-
-
-
10070
Extraordinary items, net gain/loss
-
-
-
-
-
10080
Special items (net gain/loss)
-
-
-
-
10091
Inter Project excess cash transfer in
-
-
-
(2,850,000)
10092
Inter Project excess cash transfer out
-
-
-
2,850,000
10093
Transfers between program and project in
-
-
-
-
-
10094
Transfers between program and project out
-
-
-
-
-
-
-
-
-
-
10100 TOTAL OTHER FINANCING SOURCES (USES)
10000 EXCESS (DEFICIENCY) OF REVENUE OVER EXPENSES
98,749
947,594
(149,062)
(1,592,781)
-
MEMO ACCOUNT INFORMATION:
11020
Required annual debt principal payments
-
11030
Beginning equity
-
11040
Prior period adjustments and equity transfers
-
11170
Administrative fee equity
-
-
-
-
421,758
11180
Housing assistance payments equity
-
-
-
-
344,847
-
-
-
-
766,605
11190
Unit months available
-
-
-
-
37,232
11210
Number of unit months leased
-
-
-
-
36,713
-
-
15,398,384
358,803
-
-
-
528,138
-
79,848,362
-
-
Equity Roll Forward Test:
Calculation from R/E Statement
$
98,749
$
16,345,978
$
209,741
$
-
$
78,255,581
B/S Line 513
$
$
98,749
-
$
$
16,345,978
-
$
$
209,741
-
$
$
-
$
$
78,255,581
-
60