Financial Highlights
February 2008
FYE 2007 ACCOMPLISHMENTS AND INITIATIVES
BACKGROUND
The Rockford Housing Authority owns or manages 12 affordable-housing sites, offering over 2,000 subsidized units, including 300 scattered sites throughout the city for the disabled, elderly and the poor. We also manage over 1,700 Housing Choice vouchers that provide rent subsidies in the private market to households throughout the city.
During 2007 there was an average of 1,500 applicants on our public housing waiting list. The average wait for public housing in Rockford can be as long as 3 months. We also now have over 3,000 applicants on our Housing Choice Voucher waiting list. The average wait for this option is 5 years.
FISCAL YEAR 2007 ACCOMPLISHMENTS
The RHA's 100 members of management and staff serve over 5,000 residents throughout Rockford. Additionally, we use over 50 different contractors, vendors and consultants to provide goods and services in excess of $3 million annually.
In 2007, the RHA Housing Choice Voucher Program pumped more than $10 million into the local economy in the form of rent subsidies, utility allowances, landlord payments, and vendor payments.
RHA Public housing managers continue to have more decision making control. In the past, we initiated more aggressive reviews of the revenues and expenses for each of our sites. The HUD subsidy for each site is dependent on its performance as well as its ability to deliver a quality product. This requires close financial scrutiny to capitalize on efficiencies and identify future challenges.
We have also combined capital and operating funds to maintain and improve housing programs at the site level. This enables us to allocate resources based on site needs and priorities. Closer review of capital expenditures at the site level is also being performed. Moving all accounting and budget responsibilities to the RHA finance department in early 2007 helped accomplish this task.
MAJOR INITIATIVES
During 2007 the Rockford Housing Authority’s management, maintenance and finance operations successfully completed a significant restructuring in order to comply with HUD’s requirements for project-based management. We have submitted the required documentation to HUD on time showing that we have satisfied their requirements regarding project-based management and project based accounting.
During this process we continued to provide quality service to our community as evidenced by the results of a Tier 1 review performed by HUD. This review, essentially a comprehensive operational audit of our entire organization, resulted in compliments in almost every major area of operations and staffing.
At the same time, we moved forward with one of our major development initiatives. Our plans for the Jane Addams site, which were first announced in 2006, are moving forward. We have relocated all residents to alternative housing and are ready to begin demolition. This initiative will improve both the character of the neighborhood and provide improved housing opportunities for the current Jane Addams residents.
To improve the safety and well being of our residents we have initiated additional security on all family sites have enhanced security in our high-rise buildings. We have also improved the general appearance or “curb appeal” of our various sites, which should enhance our image and marketing efforts.
This past year our Resident Services Division achieved national recognition for our family self-sufficiency and our neighborhood network programs. We are also now administering the family self-sufficiency program for the Winnebago County Housing Authority.
Both our short-range goals and long term plans provide the opportunity for a better quality of life for our residents and neighborhoods by diffusing the concentration of poverty. As the RHA continues updating its inventory of existing public housing, we hope to replace our most distressed communities with the mixed-income model. This model will help the RHA meet the increasing demand for public housing in our city without creating pockets of poverty and urban blight.
FINANCIAL STATEMENTS
| ROCKFORD HOUSING AUTHORITY STATEMENT OF NET ASSETS ALL FUND TYPES |
| SEPTEMBER 30, 2007 |
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EXHIBIT A |
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ENTERPRISE FUNDS |
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GOVERNMENT FUNDS |
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2007 |
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2006 |
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LOW RENT |
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SECTION 8 |
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ROSS |
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TITLE I |
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TOTAL |
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TOTAL |
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| ASSETS |
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| CURRENT ASSETS |
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Cash and Cash Equivalents |
$ |
1,343,888 |
$ |
6,237,481 |
$ |
525 |
$ |
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$ |
7,581,894 |
$ |
6,139,140 |
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Investments |
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1,500,484 |
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246,981 |
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1,747,465 |
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Accounts Receivable, Net Allowance |
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267,419 |
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70,262 |
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15,056 |
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352,737 |
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697,547 |
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Prepaid Expenses |
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151,660 |
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8,872 |
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160,532 |
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88,572 |
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Material Inventories - Net |
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111,416 |
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111,416 |
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215,717 |
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Notes Receivable - Current Portion |
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40,000 |
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40,000 |
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Interfund - Accounts Receivable |
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262,926 |
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11,614 |
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274,540 |
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840,042 |
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Total Current Assets |
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3,677,793 |
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6,575,210 |
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15,581 |
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0 |
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10,268,584 |
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7,981,018 |
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| NON CURRENT ASSETS |
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Land, Structures and Equipment |
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33,121,709 |
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2,056 |
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33,123,765 |
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36,874,341 |
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Notes Receivable - Long Term |
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414,111 |
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414,111 |
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514,111 |
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Total Non Current Assets |
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33,535,820 |
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2,056 |
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33,537,876 |
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37,388,452 |
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| TOTAL ASSETS |
$ |
37,213,613 |
$ |
6,577,266 |
$ |
15,581 |
$ |
0 |
$ |
43,806,460 |
$ |
45,369,470 |
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| LIABILITIES AND NET ASSETS |
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| CURRENT LIABILITIES |
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Accounts Payable |
$ |
865,009 |
$ |
120,117 |
$ |
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$ |
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$ |
985,126 |
$ |
1,217,753 |
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Accrued Liabilities |
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82,334 |
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3,438 |
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85,772 |
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96,153 |
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Trust Deposits |
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102,533 |
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316,648 |
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419,181 |
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413,255 |
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Deferred Revenues |
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525 |
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525 |
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2,815,178 |
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Interfund - Accounts Payable |
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259,484 |
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15,056 |
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274,540 |
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840,042 |
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Total Current Liabilities |
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1,049,876 |
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699,687 |
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15,581 |
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0 |
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1,765,144 |
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5,382,381 |
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| NON CURRENT LIABILITIES |
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Accrued Compensated Absences |
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340,746 |
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30,949 |
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371,695 |
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369,313 |
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Total Non Current Liabilities |
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340,746 |
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30,949 |
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371,695 |
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369,313 |
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| Total Liabilities |
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1,390,622 |
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730,636 |
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15,581 |
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0 |
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2,136,839 |
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5,751,694 |
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| NET ASSETS |
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Unrestricted Net Assets |
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2,701,282 |
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5,844,574 |
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8,545,856 |
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2,743,435 |
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Investment in Fixed Assets |
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33,121,709 |
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2,056 |
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33,123,765 |
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36,874,341 |
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Total Net Assets |
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35,822,991 |
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5,846,630 |
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0 |
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0 |
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41,669,621 |
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39,617,776 |
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| TOTAL LIABILITIES AND NET ASSETS |
$ |
37,213,613 |
$ |
6,577,266 |
$ |
15,581 |
$ |
0 |
$ |
43,806,460 |
$ |
45,369,470 |
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| ROCKFORD HOUSING AUTHORITY |
| STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS ALL FUND TYPES |
| FOR THE YEAR ENDED SEPTEMBER 30, 2007 |
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EXHIBIT B |
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ENTERPRISE FUNDS |
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GOVERNMENT FUNDS |
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2007 |
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2006 |
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LOW RENT |
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SECTION 8 |
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ROSS |
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TITLE I |
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TOTAL |
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TOTAL |
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| OPERATING REVENUES |
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Tenant Rents |
$ |
2,334,477 |
$ |
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$ |
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$ |
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$ |
2,334,477 |
$ |
2,099,625 |
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HUD Operating Grants |
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8,293,294 |
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11,478,611 |
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162,656 |
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19,934,561 |
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19,312,141 |
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Other Government Grants |
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36,368 |
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36,368 |
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54,841 |
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Other Income |
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664,738 |
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80,036 |
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744,774 |
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588,946 |
| TOTAL REVENUES |
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11,292,509 |
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11,558,647 |
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162,656 |
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36,368 |
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23,050,180 |
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22,055,553 |
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| OPERATING EXPENSES |
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Administrative Expenses |
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4,042,744 |
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1,144,433 |
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93,002 |
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32,059 |
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5,312,238 |
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5,215,077 |
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Tenant Services |
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85,536 |
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205,208 |
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1,368 |
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292,112 |
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209,479 |
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Utilities Expenses |
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1,532,702 |
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6,034 |
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1,538,736 |
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1,543,659 |
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Ordinary Maintenance |
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4,155,794 |
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4,625 |
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68,286 |
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4,309 |
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4,233,014 |
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4,791,443 |
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Protective Services Expense |
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140,024 |
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140,024 |
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General Expenses |
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711,824 |
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46,543 |
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758,367 |
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866,452 |
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Housing Assistance Payments |
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8,976,294 |
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8,976,294 |
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9,165,255 |
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Casualty Losses |
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23,457 |
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23,457 |
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54,619 |
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Depreciation Expense |
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3,428,543 |
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4,110 |
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3,432,653 |
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2,966,028 |
| TOTAL OPERATING EXPENSES |
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14,120,624 |
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10,387,247 |
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162,656 |
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36,368 |
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24,706,895 |
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24,812,012 |
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| OPERATING INCOME (LOSS) |
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(2,828,115) |
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1,171,400 |
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0 |
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0 |
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(1,656,715) |
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(2,756,459) |
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| NON-OPERATING REVENUES AND (EXPENSES) |
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Interest Income |
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107,580 |
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270,965 |
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378,545 |
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212,948 |
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HUD Capital Grants |
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1,884,009 |
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1,884,009 |
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2,709,536 |
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Loss on Sale of Fixed Assets |
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(24,399) |
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(24,399) |
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| TOTAL NON-OPERATING REVENUES |
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1,967,190 |
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270,965 |
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0 |
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0 |
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2,238,155 |
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2,922,484 |
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(EXPENSES) |
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| CHANGE IN NET ASSETS |
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(860,925) |
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1,442,365 |
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0 |
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0 |
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581,440 |
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166,025 |
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| NET ASSETS AT BEGINNING OF YEAR |
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38,951,004 |
|
666,772 |
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0 |
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0 |
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39,617,776 |
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39,451,751 |
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| PRIOR PERIOD ADJUSTMENTS |
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(2,267,088) |
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3,737,493 |
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1,470,405 |
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| NET ASSETS AT END OF YEAR |
$ |
35,822,991 |
$ |
5,846,630 |
$ |
0 |
$ |
0 |
$ |
41,669,621 |
$ |
39,617,776 |
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CONTACTING THE AUTHORITY'S FINANCIAL MANAGEMENT
The financial report is designed to provide a general overview of the Authority’s finances for all those with an interest. Questions concerning any of the information provided in this report or requests for additional information should be addressed to the Executive Director of the Rockford Housing Authority, 223 S. Winnebago St., Rockford, IL 61102.
Respectfully,
Steven Anderson
Executive Director
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