1994 RHDC Financial ReportI
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1 ROSEMEAD HOUSING
DEVELOPMENT CORPORATION
1 FINANCIAL REPORT
June 30, 1994
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CONTENTS
INDEPENDENT AUDITOR'S REPORT 1
1 FINANCIAL STATEMENTS
1 Balance sheet 2
Statement of activity and changes in fund balance (deficit) 3
Notes to financial statements 4-5
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McGLADREY & PULLEN
Certified PublicAccountants and Consultants
I INDEPENDENT AUDITOR'S REPORT
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To the Board of Directors
Rosemead Housing Development Corporation
Rosemead, California
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We have audited the accompanying balance sheet of Rosemead Housing Development Corporation as
of June 30, 1994, 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, 1994, and the
results of its operations and its cash flows for the year then ended in conformity with generally
accepted accounting principles.
Pasadena, California
October 27, 1994
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ROSEMEAD HOUSING DEVELOPMENT CORPORATION
BALANCE SHEET
June 30, 1994
Assets
Current Assets,
Cash and cash equivalents
Property and Equipment
Liabilities and Fund Balance (Deficit
Current Liabilities
1994
Total
Operating Plant (Memorandum
Fund Fund Only)
$ 191,891 $ - $ 191,891
- 1,837,331 1,837,331
$ 191,891 $ 1,837,331 $ 2,029,222
Accounts payable $ 589,914 $ - $ 589,914
Fund Balance (Deficit)
Fund balance (deficit), reserved for
low-moderate income housing - 1,837,331 1,837,331
Undesignated (398,023) - (398,023)
Total fund balance (deficit) (398,023) 1,837,331 1,439,308
$ 191,891 $ 1,837,331 $ 2,029,222
See Notes to Financial Statements.
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ROSEMEAD HOUSING DEVELOPMENT CORPORATION
STATEMENT OF ACTIVITY AND CHANGES IN FUND BALANCE (DEFICIT)
Year Ending June 30, 1994
1994
Total
Operating Plant (Memorandum
Fund Fund Only)
Contribution from the Rosemead
Redevelopment Agency
Plan and specification fees
$ 1,500,000 $ $ 1,500,000
5,545 5,545
1,505,545 1,505,545
Expenses:
Professional fees
City administrative services
Total expenses
Excess of support and revenue
over expenses
Fund balance, beginning
Transfers for purchase of property and
equipment
Fund balance (deficit), ending
See Notes to Financial Statements.
19,108 19,108
150,000 150,000
169,108 169,108
1,336,437 1,336,437
102,871 - 102,871
(1,837,331) 1,837,331 -
$ (398,023) $ 1,837,331 $ 1,439,308
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ROSEMEAD HOUSING DEVELOPMENT CORPORATION
' NOTES TO FINANCIAL STATEMENTS
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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 City 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.
Significant accounting and reporting 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.
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.
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ROSEMEAD HOUSING DEVELOPMENT CORPORATION
I NOTES TO FINANCIAL STATEMENTS
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Note 1. Nature of Organization and Significant Accounting Policies (Continued)
"Memorandum Only" total columns: Included on the combined 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.
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Note 2. Cash in Bank
' At June 30, 1994 the carrying amount of the Corporation's deposits and the bank balance was
$191,891. Of this amount, $100,000 was covered under the Federal Deposit Insurance Corporation.
' Note 3. 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 $150,000 to the City for these services during the year ended June 30, 1994.
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