Hope Housing Authority

The auditor’s report was presented to the Commission, with the auditor available by Zoom to present the report and answer any questions. The auditor reported that the financial position was generally favorable, with cash exceeding $1 million, while liabilities totaled approximately $200,000. The revenues were way more than the expenses.

The large amount of rent owed was discussed, with a lack of sufficient collection from years past. For the future, it is necessary to ensure that rent is collected and that tenants are evicted. He said it could have been the same tenants on the books for a long time. Rents that the Authority is unable to collect must be written off.

The auditor discussed ensuring the budget is followed or revised as needed to align with the Authority’s needs.

Another issue is the timely completion of the audit. This year, the Authority did not retain the Auditor from the previous three years, and as such, obtaining the proposals needed to follow HACOH Procurement Policy was a challenge, cutting it very close to the deadline for audit submission to HUD.

The audit includes items from the previous administration that weren’t labeled, requiring an investigation to determine what they refer to.

A new Fee Accountant has been contracted, and a lot of clean-up is still being done.

Hicks stated that this was the most extensive annual audit they have undergone. The audit exposed unexpected deficiencies in the software. Corrective actions have already been taken.

For the rents written off, there was a poor process in keeping up with Tenant balances before they exceeded what could be paid under a payment plan. Additionally, plans executed in the past were not followed as they should have been.

There was a process failure with no historical record to be found, preventing the removal of items from the books. During the last three meetings, these issues have been addressed.

To allow the Auditor sufficient time to present and answer Commissioner questions, since they had not been presented with the audit report by the Auditor who completed it before, and to accommodate year-end accounting, the June Financials weren’t included in the package. Still, they will be presented to the Commissioners at the August meeting.

The 5-Year Action Plan was presented, covering capital funds. The total available funds for 2025 amount to $580,590. For the 2026-2030 grant periods, the uncertainty surrounding federal funding makes it impossible to determine future awards. Estimates based on previous years’ grants were used to develop the plan, but no expenditures occur until HUD awards the grants, at which point the Authority will know what is available and may revise the plan accordingly.

The 5-year plan has been presented to the public, and there have been no objections.

Expenses include a small amount for the security cameras, the audit, door replacement, salaries, and roofing. HUD also required 10-year sealed batteries for smoke detectors. Flooring and electrical work are other expenses.

The Commission passed the resolution.

The other resolution discussed was for the sale of the bus. The bus was bought in 2017 to transport tenants to the hospital. Currently, there is no money in the budget for a driver or to cover connected liability issues, so it is no longer practical to maintain resources when they are limited. There were three bids, with only one bidder offering fair market value. A 15-day request for bids was involved in the sale. Hicks stated it was hard to get a true value with the customizations made to the vehicle. The Commission passed the resolution accepting the highest bidder.

For the staff report, Ms. Wilson discussed the workers’ compensation policy, including its timelines and the required documentation.

The Commission entered an executive session to discuss personnel and legal matters. No decisions were made during the executive session.

With no further business, the meeting adjourned at 1:45 pm.