1995 RHDC Financial ReportI
I
ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
FINANCIAL REPORT
June 30, 1995
I
1
p
1
1
1
1
1
CONTENTS
INDEPENDENT AUDITOR'S REPORT
FINANCIAL STATEMENTS
Balance sheet 2
Statement of activity and changes in fund balance (deficit) 3
Notes to financial statements 4 and 5
C'
1
I
San Bernardino, California
' October 13, 1995
1
M V
e
McGLADREY&PULLEN, LLP
Certified Public Accountants and Consultants
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Rosemead Housing Development Corporation
Rosemead. California
We have audited the accompanying balance sheet of Rosemead Housing Development Corporation as of
June 30, 1995, and the related statement of activity and changes in fund balance (deficit) for the year then
ended. These financial statements are the responsibility of the Corporation's management. Our
responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with generally accepted auditing standards. Those standards require
that we plan and perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Rosemead Housing Development Corporation as of June 30. 1995, and the results
of its operations and its cash flows for the year then ended in conformity with generally accepted
accounting principles.
/ LLB
I
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
BALANCESHEET
June 30, 1995
Total
Operating Plant (Memorandum
Assets Fund Fund Only)
Current Assets
Cash and cash equivalents $ 125,600 $ $ 125.600
Prepaid expenses 2,214 2,214
Property and Equipment (Note 3)
- 3,438,323 3,438,323
$ 127,814 $ 3,438,323 $ 3.566.137
Liabilities and Fund Balance (Deficit)
Current Liabilities
Accounts payable
$ 162,048 $
$ 161048
'
Deposits
14,001
14,001
176,049
176.049
Fund Balance (Deficit)
Fund balance, reserved for
low-moderate income housing
-
3,438,323 3,438.323
Undesignated
(48,235)
- (48,235)
Total fund balance (deficit)
(48,235)
1438,323 3,390.088
127,814 $
3,438,323 $ 3.566,137
See Notes to Financial Statements.
1
I
2
1
1
1
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
STATEMENT OF ACTIVITY AND CHANGES IN FUND BALANCE (DEFICIT)
Year Ending June 30, 1995
Total
Operating Plant (Memorandum
Fund Fund Only)
Revenues:
Contribution from the Rosemead Redevelopment Agency $ 2200.000 $ $ 2,200,000
Rental income 40.766 40,766
Miscellaneous 905 905
Expenses:
Operating
Professional fees
City administrative services
Excess of revenues over expenses
Fund balance (deficit), beginning
Transfers for purchase of property and equipment
Fund balance (deficit), ending
See Notes to Financial Statements.
2.241.671 - 2.241,671
67373
31,544
98,917
51.974
-
51,974
140,000
-
140,000
259,347
31.544
290.891
1,982324
(31,544)
1,950,780
(398,023)
1,837,331
1,439,308
(1,632,536)
1,632,536
-
$ (48.235)$
3.438.323 $
3,3W088
3
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
' NOTES TO FINANCIAL STATEMENTS
' Note 1. Nature of Organization and Significant Accounting Policies
Nature of business: The Rosemead Housing Development Corporation (the "Corporation") accounts for
' the construction and financing of low and moderate income housing. It is a California nonprofit public
benefit corporation organized under Section 501(c)(3) of the Internal Revenue Code. The Corporation is a
component unit of the Rosemead Redevelopment Agency (the "Agency") and the Agency is included in the
' combined financial statements of the Citv of Rosemead (the "City"). The Corporation has the same fiscal
year as the City and the Agency. These financial statements contain information for the Corporation only.
The Corporation is funded by contributions from the Rosemead Redevelopment Agency.
The following is a summary of the significant accounting policies:
' Basis of accounting: The accompanying financial statements are prepared on the accrual basis of
accounting.
' Funds: The basic accounting and reporting entity of the Rosemead Housing Development Corporation is a
fund. A fund is defined as an independent accounting entity with a self-balancing set of accounts recording
assets. related liabilities and fund balances, which are segregated for the purpose of either accomplishing a
specific activity or attaining certain objectives in accordance with special regulations. restrictions or
limitations.
Operating Fund: All receipts are allocated to this fund. The primary sources of revenue are
contributions from the Rosemead Redevelopment Agency and proceeds from the sale of rehabilitated
properties. General operating expenses are paid out of this fund.
Plant Fund: This fund is used to account for property and equipment and the related depreciation.
Purchases of property and equipment are funded through transfers from the operating fund.
Propert y: Property is stated at cost. Depreciation is provided by the straight-line method over 27.5 years.
' Income taxes: The Rosemead Housing Development Corporation is exempt from federal income taxes
under Section 501(c)(3) of the Internal Revenue Code and a similar exemption under State law.
New accounting standard: In June 1993, the Financial Accounting Standards Board ("FASB") issued
Statement No. 117, "Financial Statements of Not-for-Profit Organizations." This statement establishes
standards for general purpose external financial statements provided by a not-for-profit organization.
' Rosemead Housing Development Corporation is required to apply this standard for its financial statements
beginning with the fiscal year ending June 30, 1997.
' "Memorandum Only" total columns: Included on the financial statements are total columns captioned
"Memorandum Only" to indicate that they are presented only for informational purposes. Adjustments to
eliminate interfund transactions have not been recorded in arriving at such amounts and the memorandum
' totals are not intended to fairly present the financial position or results of operations of the primary
government and reporting entity taken as a whole.
I
4
t
ROSEMEAD HOUSING DEVELOPMENT CORPORATION
NOTES TO FINANCIAL STATEMENTS
Note 2. Cash in Bank
At June 30, 1995 the carrying amount of the Corporation's deposits and the bank balance was $125,600.
Of this amount. $115,270 was covered under the Federal Deposit Insurance Corporation.
Note 3. Property
Property consisted of costs amounting to $3,469,867 incurred to construct the Angelus Senior Housing
Center.
Note 4. Reimbursement Agreements and Related Party Transactions
The Corporation has entered into various reimbursement agreements with the City of Rosemead which
require the City to provide administrative services, facilities and other operating services.
The Corporation paid $140,000 to the City for these services during the year ended June 30, 1995.
5