1. Rubino & Company, Chartered
Housing Authority of the City of Spartanburg FY 2016 Independent Audit Board Presentation April 25, 2017
Rubino & Company, Chartered
6903 Rockledge Drive
Suite 1200
Bethesda, MD 20817

2. Your Engagement Team J. Michael Stephens, Shareholder
Ben Karlin, Sr. Associate
Vidur Bhalla, Associate

3. Engagement Scope
Audit of the Housing Authority of the City of Spartanburg (SHA)
Single Audit in Accordance with Uniform Guidance (new single audit rules effective this year)
Audit of Discretely Presented Component Units (Mary Wright & Wright Center LLC’s)
Additional procedures on closed grants as required by HUD
Additional procedures for implementation of GASB 68 related to State Pension Plan

4. Audit Status
Presentation of draft financial statements today which include Authority and component units
Presentation of management letter
All audit work is completed
Submission to HUD through REAC and Federal Audit Clearing House due by June 30, 2017

5. Review of Financial Statements and Related Reports
An Unmodified opinion on the financial statements.
Net Position decreased $793.1 Million for the year after consideration of the $408.8 Thousand prior period adjustment.
Assets decreased $1.8 Million primarily due to increases in cash, decreases in capital assets as a result of RAD, and new deferred outflows as result of State Pension Plan.
Liabilities decreased $620.1 Thousand primarily due to decreases in debt.
Net position decrease of $1.2 Million overall with decrease in invested in capital assets of $9.1 Million; increase in restricted of $8.7 Million to $24.5 Million primarily for change in notes receivable; and decrease in unrestricted of $395.8 thousand to $6.2 Million due to joining state pension plan.

6. Review of Financial Statements and Related Reports (continued)
Total revenues increased $5.3 Million primarily due to increase in CFP grant funding and transfers of property through RAD offsetting declines in rent.
Total expenses decreased $972.3 Thousand primarily due to increases in administration, maintenance, and HAP payments offsetting decreases in utilities and depreciation.
Retirement Plan disclosure changed significantly this year and resulted in required prior period adjustment.
Litigation Disclosure.
Subsequent Events disclosure for RAD activity and foreclosure.

7. Review of Financial Statements and Related Reports (continued)
Audit Opinion
Unmodified opinion on financial statements and on compliance
Report On Internal Control
No findings reported in current year
Report on Compliance
No findings in current year

8. Review of Financial Statements and Related Reports (continued)
Single Audit Report
Programs tested included Housing Choice Voucher and HOME Investment Partnerships Programs.
No findings identified in either program.

9. Required Communications to The Board
Communication required under Auditing Standards (SAS 114)
Auditor’s responsibilities under generally accepted auditing
standards
Scope and Timing of the Audit
Significant Findings from the Audit
Qualitative aspects of significant accounting policies – New GASB in current year
No significant difficulties encountered during the audit
Corrected and uncorrected misstatements
Revised trial balances and Financial Data Schedule
Prior period adjustment based on debt confirmation
Passed adjustments related to miscellaneous immaterial variances in reconciliations

10. Required Communications to the Board (continued)
There were no disagreements with Management
There were no management consultations with other accountants
Significant issues discussed with Management
Implementation of GASB 68 related to State Pension
Status of RAD
Mary Wright and SHAPCO Foreclosure and Transactions
Independence
Management Representation

11. Open Items and Closing Comments
Issue financial statements and submit to HUD through REAC
Submit reports to Federal Audit Clearinghouse
Closing Comments
Impact of GASB 68 and joining state pension plan
Impact of Uniform Guidance and new pronouncements going forward

12. Rubino & Company contacts
Questions?
Rubino & Company contacts
J. Michael Stephens, CPA