BOC_Agenda_3-24-2021.pdf - Oklahoma City Housing Authority

REGULAR MEETING OF THE

BOARD OF COMMISSIONERS OF THE OKLAHOMA CITY HOUSING AUTHORITY

TELECONFERENCE 1700 Northeast Fourth Street

Oklahoma City, Oklahoma 73117 March 24, 2021

9:00 a.m.

AGENDA This meeting will be held by teleconference for the Board of Commissioners of the Oklahoma City Housing Authority (OCHA), as authorized by SB 1031 and the state of emergency declared by Gov. Kevin Stitt. If a member of the public wishes to participate, the meeting can be accessed online at:

https://zoom.us/j/95006293123?pwd=S2c1ZlgyZmpkd3MxMWdlb2UyQm1JZz09 (which allows the presentations to be viewed)

or by telephone at: (301) 715-8592 Meeting number: 950 0629 3123. The OCHA Commissioners will be appearing via teleconference, as follows: Dr. Jerry L. Steward (via teleconference) Ms. Alvah Boyd (via teleconference) Ms. Connie Mashburn (via teleconference) Ms. Lillie Swope (via teleconference)

Written materials for this meeting are available to the public at: https://cms7.revize.com/revize/ocha/BOC_Agenda_3-24-2021.pdf

If a member of the public wishes to speak under the agenda item “Citizens to be Heard,” please email [email protected] prior to the meeting time with your name, address, phone

number, and the topic on which you would like to speak. The meeting will be recorded.

1. Call to Order and Comments – Chair Jerry Steward.

A. Recognition of Leslie Batchelor

2. Announcement of Filing of Meeting Notice and Posting of the Agenda in Accordance with the Oklahoma Open Meeting Act.

3. Roll Call – Sherry Hearn, Executive Assistant

4. For Action: Approval of the Consent Docket A. Minutes of the Regular Meeting of the Board of Commissioners, February 24, 2021

5. For Action: Resolution No. 8-21 ratify Emergency Plumbing Repairs at AMP 106, Northeast Duplexes;

AMP 104, Scattered Sites; AMP 102, Oak Grove; and AMP 115, Reding Senior Center. Presented by Melanie Buckley.

6. For Action: Resolution No. 9-21 approving Revisions to the Admissions and Continued Occupancy Policy (ACOP) for Public Housing. Presented by Matt Mills.

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7. For Action: Resolution No. 10-21 approving Revisions to the Administrative Plan for Section 8. Presented by Richard Marshall.

8. For Action: Resolution No. 11-21 approving Award of Contract to American Elevator for Five (5) Year Elevator Maintenance Service Contract. Presented by Mike Helms.

9. For Action: Resolution No. 12-21 approving Acceptance of Audited Financial Statements for year ended December 31, 2019. Presented by Thomas Henderson.

10. Information:

A. COVID Update. Presented by Mark Gillett.

11. Report of Legal Counsel:

A. Lawsuits

B. Legal Request

12. Reports of the Executive Director:

A. Income Statements – January 2021

B. Six Months Summary of Operations

13. Citizens to be heard

14. For Action: Adjournment

It is the policy of the Oklahoma City Housing Authority to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or service in order to participate in this meeting should contact the ADA department coordinator at 605-3219 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting.

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2/24/21 1.

MINUTES OF THE REGULAR MEETING OF THE BOARD OF COMMISSIONERS OF THE

OKLAHOMA CITY HOUSING AUTHORITY

February 24, 2021

The Board of Commissioners of the Oklahoma City Housing Authority met via Teleconference on Wednesday, February 24, 2021 at 9:02 a.m. Chair Steward thanked everyone for joining the teleconference meeting.

The Agenda for this meeting was filed with the Secretary of State and City Clerk for the 2021 meetings on

December 2, 2020, and amended on February 12, 2021, to advise of the change to a special meeting by

teleconference. A copy of this agenda was posted at 1700 and 1800 Northeast Fourth Street on February 19,

2021, at 4:15 p.m. in accordance with Oklahoma Open Meeting Statutes, posted on the Authority general

web site www.ochanet.org as required by Section 3106.2 of Oklahoma Statute Title 74, and written notice

via the Agenda was delivered to each Commissioner on February 19, 2021.

Item 1, meeting was called to order by Chair Jerry Steward, who presided.

Item 2, Announcement of Filing of Meeting Notice and Posting of the Agenda in Accordance with the Oklahoma Open Meeting Act, was announced by Sherry Hearn. Item 3, Sherry Hearn, Executive Assistant, performed roll call, those present were as follows:

PRESENT: Jerry Steward, Chair

Alvah Boyd Connie Mashburn Lillie Swope was absent.

Item 4, Consent Docket, was introduced by Chair Steward which included:

Item A. Minutes of the Regular Meeting of the Board of Commissioners dated January 27, 2021

Motion: Boyd. Second: Mashburn. AYES: Boyd, Mashburn, Steward. NAYES: None. The following Action items were introduced by Chair Steward: Item 5, Resolution No. 5-21 approving Section 8 Management Assessment Program (SEMAP) Certification with an anticipated High Performer rating and authorizing electronic submission to the U.S. Department of Housing and Urban Development by February 28, 2021. Motion: Mashburn. Second: Boyd. AYES: Boyd, Mashburn, Steward. NAYES: None. Item 6, Resolution No. 6-21 approving award of contract for Five (5) year on-call Design Professional Services with ADG beginning March 1, 2021. Motion: Boyd. Second: Mashburn. AYES: Boyd, Mashburn, Steward. NAYES: None. Item 7, Resolution No. 7-21 approving Agreement for General Counsel Legal Services with Phillips Murrah PC beginning March 1, 2021. Commissioner Boyd inquired what the total amount of this contract would be. Leslie Batchelor, legal counsel, stated that the contract does not have a cap but fees are based on an hourly rate, which is provided in the new contract. Chair Steward stated there is no cap the current general counsel contract and that the amount paid is in the financial information provided to the Board of Commissioners each month. It was further noted that legal fees fluctuate each month depending on claims and projects requiring legal review. Chair Steward notes the recommended law firm seems highly qualified and should serve the Board well. Motion: Mashburn. Second: Boyd. AYES: Boyd, Mashburn, Steward. NAYES: None.

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2/24/21 2.

Item 8, Information:

Item A. Laura Gregory discussed the COVID Resident Support Grant received from Council of Large Public Housing Authority (CLPHA) in the amount of $10,000.00.

Item B. Mark Gillett discussed how OCHA continues to benefit from CARES Act funding. He

provided an update on vaccinations of staff and residents, positivity rate, and changes by the Administration to the CARES Act Emergency Rental Assistance Fund.

Item C. 2019 Write Offs. Thomas Henderson discussed the write offs and stated next year’s will be

larger due to the Eviction Moratorium during COVID pandemic. Item D. Thomas Henderson introduced the Utilities charts information item by noting that the

agenda sheet stated 2019 Utilities but the information is for 2020 Utilities. Chair Steward asked Leslie Batchelor, legal counsel, if the item could be discussed. Leslie Batchelor stated it was perfectly fine because the agenda provided reasonable notice of what was to be discussed, and Chair Steward added that it was an information item only. The utilities charts were then presented by Thomas Henderson.

Item 9, Report of Legal Counsel, Leslie Batchelor:

Item A. There were no new lawsuits. Still monitoring two that have been pending for some time.

Item B. Legal Requests. There were no formal legal requests. Leslie Batchelor stated a couple of the attorneys from the Phillips Murrah law firm were joining the

meeting. Item 10, Reports of the Executive Director. Mark Gillett stated the December 2020 Financial Statements and Six Months Summary of Operation slides were emailed to them and shown on the screen. Item 11, Citizens to be heard. Item 12, Adjournment. Motion: Boyd. Second: Mashburn. AYES: Boyd, Mashburn, Steward. NAYES: None. This meeting adjourned at 9:43 a.m. The next meeting of this Board will convene at 9:00 a.m. CDST March 24, 2021 at the Oklahoma City Housing Authority Central Office, 1700 Northeast Fourth Street, Oklahoma City, Oklahoma. ______________________________ Mark W. Gillett, Secretary ATTEST: ____________________________________ Jerry L. Steward, Chair

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RESOLUTION NO. 8-21

RESOLUTION TO RATIFY EMERGENCY PLUMBING REPAIR AT AMP 106, NORTHEAST DUPLEXES, AMP 104, SCATTERED SITES, AMP 102, OAK GROVE, AND

AMP 115, REDING SENIOR CENTER

WHEREAS, during February 2021, Oklahoma's historic freezing temperatures and snow

resulted in burst water and sewer lines throughout Oklahoma City Housing Authority ("OCHA")

property, namely, AMP 106, Northeast Duplexes, AMP 104, Scattered Sites, AMP 102, Oak

Grove, and AMP 115, Reding Senior Center; and

WHEREAS, it was quickly determined that OCHA staff did not have the in-house

capability to make the repair in a timely manner; and

WHEREAS, the notice requirements of the Oklahoma Housing Authority Act make it

difficult for the Commissioners of OCHA to meet in a timely manner in the event of an emergency;

and

WHEREAS, the OCHA Procurement Policy allows noncompetitive proposals "where an

emergency exists due to a sudden, unexpected happening or unforeseen occurrence or condition

whereby the public health or safety is endangered, the provisions of the Oklahoma Public

Competitive Bidding Act of 197, 61 O.S. § 101, et seq., with reference to notice and bids shall not

apply, provided that the conditions of 61 O.S. § 130 have been met;" and

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WHEREAS, OCHA staff declared the necessary plumbing repairs an emergency that

existed due to a sudden, unexpected happening or unforeseen occurrence or condition whereby the

public health or safety was endangered, and that there was an immediate and serious need to repair

the plumbing system, such that that the conditions of 61 O.S. § 130 had been met; and

WHEREAS, OCHA staff began contacting local vendors for bids to perform the repairs,

and All Day Plumbing was the only one to respond; and

WHEREAS, All Day Plumbing was tasked with repairing water lines, replacing hot water

tanks and repairing sewer lines to 46 units at AMPs 106, Northeast Duplexes, and 104, Scattered

Sites; and

WHEREAS, All Day Plumbing submitted a price of $32,150 for repairing water lines,

replacing hot water tanks and repairing sewer lines to 46 units at AMPs 106, Northeast Duplexes,

and 104, Scattered Sites; and

WHEREAS, All Day Plumbing was tasked with repairing a 4” water main and replacing a

pressure tee on a water main at AMP 102, Oak Grove; and

WHEREAS, All Day Plumbing submitted a price of $8,500 for repairing a 4” water main

and replacing a pressure tee on a water main at AMP 102, Oak Grove; and

WHEREAS, All Day Plumbing was tasked with cutting out and repairing the 8" ductal iron

water main at AMP 115, Reding Senior Center; and

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WHEREAS, All Day Plumbing submitted a price of $10,000 for cutting out and repairing

the 8" ductal iron water main at AMP 115, Reding Senior Center; and

WHEREAS, OCHA staff authorized All Day Plumbing to perform the work to perform the

repairs at a total cost of $50,650; and

WHEREAS, the Commissioners of OCHA find it appropriate and desirable to affirm the

plumbing repairs as an emergency situation, and to ratify and approve the actions taken in

procuring and accepting the bid to perform the plumbing repairs and in awarding and executing

the emergency repair contract with All Day Plumbing in the total amount of $50,650.

NOW, THEREFORE, BE IT RESOLVED by the Commissioners of the Oklahoma City

Housing Authority that the plumbing repairs at AMP 106, Northeast Duplexes, AMP 104,

Scattered Sites, AMP 102, Oak Grove, and AMP 115, Reding Senior Center, constituted an

emergency that existed due to a sudden, unexpected happening or unforeseen occurrence or

condition whereby the public health or safety was endangered, and that there was an immediate

and serious need to perform the repairs.

BE IT FURTHER RESOLVED that the actions of the OCHA staff in declaring an

emergency and procuring bids for the plumbing repairs, and in awarding and executing the contract

with All Day Plumbing for the emergency plumbing repairs, in the total amount of $50,650, are

hereby ratified and approved.

ADOPTED this 24th day of March, 2021.

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By Jerry L. Steward, Chair

I, Mark W. Gillett, Secretary of the Board of Commissioners of the Oklahoma City Housing Authority, certify that the foregoing Resolution No. 8-21 was duly adopted at a regular meeting of the Board of Commissioners of the Oklahoma City Housing Authority, held by teleconference and accessible by phone (301) 715-8592 Meeting number: 950 0629 3123 Password: 563905 or online at https://zoom.us/j/95006293123?pwd=S2c1ZlgyZmpkd3MxMWdlb2UyQm1JZz09 on the 24th day of March, 2021; that said meeting was held in accordance with the By-Laws of the Oklahoma City Housing Authority and the Oklahoma Open Meeting Act; that a quorum was present at all times during said meeting; and that the resolution was duly adopted by a majority of those Commissioners present.

Secretary

AYE NAYJERRY L. STEWARD LILLIE SWOPE ALVAH L. BOYD CONNIE MASHBURN

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RESOLUTION NO. 9-21

RESOLUTION APPROVING REVISIONS TO THE ADMISSIONS AND CONTINUED OCCUPANCY POLICY (ACOP) FOR PUBLIC HOUSING

WHEREAS, the Oklahoma City Housing Authority ("OCHA") staff has prepared revisions

to several sections of OCHA's Admissions and Continued Occupancy Policy ("ACOP") for Public

Housing in order to incorporate temporary waivers and procedures related to the COVID-19 Public

Health Emergency and additional clarifications and modifications to bring content current with

Department of Housing and Urban Development ("HUD") regulations and guidelines; and

WHEREAS, OCHA staff recommends approval of the proposed revisions to the

ACOP as shown on the attached document and that the proposed revisions will become effective

March 24, 2021.

NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners of the

Oklahoma City Housing Authority that the proposed revisions to the ACOP, as shown in the

attached document with a revision date of March 24, 2021, are hereby approved.

BE IT FURTHER RESOLVED that the proposed revisions to the ACOP shall take

effect as of March 24, 2021.


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Secretary

AYE NAY

JERRY L. STEWARD

LILLIE SWOPE

ALVAH L. BOYD

CONNIE MASHBURN

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RESOLUTION NO. 10-21

RESOLUTION APPROVING REVISIONS TO THE ADMINISTRATIVE PLAN - HOUSING CHOICE VOUCHER PROGRAM FOR SECTION 8

WHEREAS, the United States Department of Housing and Urban Development

("HUD") requires the Oklahoma City Housing Authority ("OCHA") to adopt, and OCHA has so

adopted, a written administrative plan that establishes its policies for administering the Section 8

Housing Choice Voucher program ("Administrative Plan"); and

WHEREAS, the Administrative Plan states OCHA’s policies on matters for which

it has discretion, but the Administrative Plan must be in accordance with all HUD regulations and

requirements; and

WHEREAS, OCHA staff has determined that it has become necessary to revise

certain sections of the OCHA documents governing its Section 8 program; and

WHEREAS, OCHA must revise the Administrative Plan to comply with HUD

requirements, and to add the COVID-19 pandemic operations and HUD statutory regulations, as

well as other minor modifications and clarifications to bring content current with HUD regulations

and guidelines; and

WHEREAS, additional revisions are necessary in order to update the

Administrative Plan with current Utility Allowances effective February 1, 2021; and

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WHEREAS, additional revisions are necessary in order to add remote Informal

Hearing procedures; and

WHEREAS, additional revisions are necessary in order to be in compliance with

the CARES Act waivers requirements; and

WHEREAS, other minor modifications and clarifications are required to bring

content current with HUD regulations and guidance; and

WHEREAS, to accomplish these aims, OCHA staff recommends revising the

Administrative Plan as shown on the attached "Administrative Plan Amendments."


Oklahoma City Housing Authority that the revisions to the Administrative Plan, as shown in the

attached "Administrative Plan Amendments," are hereby approved and adopted.

BE IT FURTHER RESOLVED that the Executive Director is authorized and

directed to prepare and execute such documents as may be appropriate to carry out the approval

and adoption contained in this Resolution.


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OKLAHOMA CITY HOUSING AUTHORITY By

Jerry L. Steward, Chair


Secretary


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RESOLUTION ACCEPTING LOWEST AND BEST RESPONSIBLE BID; AWARDING CONTRACT – FIVE-YEAR SERVICE CONTRACT FOR ELEVATOR MAINTENANCE

WHEREAS, with the existing elevator maintenance contract set to expire on June

30, 2021, specifications were prepared and bids solicited by Oklahoma City Housing Authority

(“OCHA”) staff for a five-year service contract for elevator maintenance; and

WHEREAS, upon opening of bids on February 25, 2021, one bid was received,

from American Elevator Company, Inc., who has been determined to be an acceptable bidder in

accordance with the bidding requirements, OCHA’s Procurement Policies, and applicable law; and

WHEREAS, the proposed contract provides pricing for monthly services,

emergency service, mechanic and other team rates, parts, and annual certification for each AMP,

for a period of five (5) years, with firm fixed prices for one (1) year; and

WHEREAS, funds are available each AMP’s operating budget.


Oklahoma City Housing Authority that the bid of American Elevator Company, Inc. (“Bidder”),

is accepted as the lowest responsible bid for a five-year service contract for elevator maintenance

services, and that the contract for those services is hereby awarded to said Bidder.

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BE IT FURTHER RESOLVED that the Chair is authorized and directed to execute

such documents as may be appropriate to carry out the award contained in this Resolution.




I, Mark W. Gillett, Secretary of the Board of Commissioners of the Oklahoma City Housing Authority, certify that the foregoing Resolution No. 11-21 was duly adopted at a regular meeting of the Board of Commissioners of the Oklahoma City Housing Authority, held by teleconference and accessible by phone at (301) 715-8592 Meeting number: 950 0629 3123 Password: 563905 or online at https://zoom.us/j/95006293123?pwd=S2c1ZlgyZmpkd3MxMWdlb2UyQm1JZz09 on the 24th day of March, 2021; that said meeting was held in accordance with the By-Laws of the Oklahoma City Housing Authority and the Oklahoma Open Meetings Act; that a quorum was present at all times during said meeting; and that the resolution was duly adopted by a majority of those Commissioners present.

Secretary


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RESOLUTION ACCEPTING AUDITED FINANCIAL STATEMENTS FOR YEAR ENDED DECEMBER 31, 2019

WHEREAS, the books and records of the Oklahoma City Housing Authority

(“OCHA”) are audited on an annual basis, as required by the United States Department of Housing

and Urban Development; and

WHEREAS, Eide Bailly LLP is the contracted auditing firm that performed the

audit of the OCHA financial statements for the year ended December 31, 2019; and

WHEREAS, the auditors proposed material adjustments to the financial statements,

a deficiency to internal control over financial reporting, and a deficiency in internal control over

compliance resulting in findings; and

WHEREAS, OCHA management has prepared the required responses and

corrective action plans.


Oklahoma City Housing Authority that the Audited Financial Statements for the Year Ended

December 31, 2019 are accepted.

ADOPTED this 24th day of March 2021.

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Secretary


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Financial Statements December 31, 2019 and 2018

Oklahoma City Housing Authority

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Oklahoma City Housing Authority Table of Contents

December 31, 2019 and 2018

Independent Auditor’s Report ................................................................................................................................... 1

Management’s Discussion and Analysis ................................................................................................................ 4

Financial Statements

Statement of Net Position ................................................................................................................................... 11 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 15 Statements of Cash Flows .................................................................................................................................... 17 Notes to Financial Statements ............................................................................................................................. 19

Supplementary Information

Schedule of Expenditures of Federal Awards ...................................................................................................... 40 Notes to Schedule of Expenditures of Federal Awards ....................................................................................... 41 Combining Statement of Net Position ................................................................................................................. 42 Combining Statement of Revenues, Expenses and Changes in Net Position ...................................................... 46

Other Information

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................................................. 48

Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance ..................................................................................................... 50

Schedule of Findings and Questioned Costs ............................................................................................................ 53

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Independent Auditor’s Report To the Board of Commissioners Oklahoma City Housing Authority Oklahoma City, Oklahoma Report on the Financial Statements We have audited the accompanying financial statements of the business‐type activities and the aggregate discretely presented component units of the Oklahoma City Housing Authority (the Authority) as of and for the years ended December 31, 2019 and 2018, which collectively comprise the Authority’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on the financial statements based on our audits. We did not audit the financial statements of Sooner Haven, LLC, a discretely presented component unit, which represents 52% of the assets, 56% of the net position, and 100% of the revenues of the discretely presented component units as of and for the year ended December 31, 2019 and 52% of the assets, 56% of the net position, and 100% of the revenues of the discretely presented component units as of and for the year ended December 31, 2018. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Sooner Haven, LLC is based solely on the report of the other auditors. We conducted our audits in accordance with auditing standards generally accepted in the United States of America, and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Authority’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Authority’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

What inspires you, inspires us. | eidebailly.com

1730 Burnt Boat Loop, Ste. 100 | P.O. Box 1914 | Bismarck, ND 58502-1914 | T 701.255.1091 | F 701.224.1582 | EOE

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We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the business‐type activities and the aggregate discretely presented component units of the Authority as of December 31, 2019 and 2018, and the respective changes in its financial position and, where applicable, cash flows thereof for the years then ended, in accordance with accounting principles generally accepted in the United States of America. Correction of Error As discussed in Note 13 to the financial statements, a certain error resulting in understatement of amounts previously reported for capital assets and accounts payable as of December 31, 2018 were discovered during the current year. Accordingly, amounts reported for capital assets and accounts payable have been restated in the 2018 financial statements now presented. Our opinion is not modified with respect to that matter. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis on pages 4 through 10 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management discussion and analysis in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the Oklahoma City Housing Authority’s financial statements. The accompanying supplementary schedules on pages 42 ‐ 47 are presented for purposes of additional analysis and are not a required part of the basic financial statements. The accompanying Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis, as required by the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance) and are not a required part of the financial statements.

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The supplementary schedules on pages 42 ‐ 47 and the Schedule of Expenditures of Federal Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the supplementary schedules on pages 39 – 44 and the Schedule of Expenditures of Federal Awards is fairly stated, in all material respects, in relation to the financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2021 on our consideration of the Authority’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control over financial reporting and compliance.

Bismarck, North Dakota March 17, 2021

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Oklahoma City Housing Authority Management’s Discussion and Analysis


The discussion and analysis of the Authority’s financial performance provides an overview of the Authority’s financial activities for the years ended December 31, 2019 and 2018. Please read it in conjunction with the Authority’s financial statements. Financial Highlights 2019

The Authority added approximately $4,352,000 in capital assets relating to land, building improvements and renovations during 2019.

The Authority’s net position decreased by $3,840,240 or 5% during the year ended December 31, 2019, from $75,088,214 at December 31, 2018 to $71,247,974 at December 31, 2019.

Total operating revenues of the Authority decreased by $3,971,468 or 8% for the year ended December 31, 2019, from $52,172,603 for the year ended December 31, 2018 to $48,201,135 for the year ended December 31, 2019.

Total operating expenses of the Authority increased by $1,935,151 or 4% for the year ended December 31, 2019, from $52,217,240 for the year ended December 31, 2018 to $54,152,240 for the year ended December 31, 2019.

Total nonoperating revenue (expense), including capital grants, decreased by $3,692,609 for the year ended December 31, 2019, from $5,803,625 for the year ended December 31, 2018 to $2,111,016 for the year ended December 31, 2019.

2018

The Authority added approximately $12,951,000 in capital assets relating to land, building improvements and renovations during 2018.

The Authority’s net position increased by $5,758,988 or 8% during the year ended December 31, 2018, from $69,329,226 at December 31, 2017 to $75,088,214 at December 31, 2018.

Total operating revenues of the Authority increased by $5,425,070 or 12% for the year ended December 31, 2018, from $46,747,533 for the year ended December 31, 2017 to $52,172,603 for the year ended December 31, 2018.

Total operating expenses of the Authority increased by $518,750 or 1% for the year ended December 31, 2018, from $51,698,490 for the year ended December 31, 2017 to $52,217,240 for the year ended December 31, 2018.

Total nonoperating revenue (expense), including capital grants, increased by $3,514,750 for the year ended December 31, 2018, from $2,288,875 for the year ended December 31, 2017 to $5,803,625 for the year ended December 31, 2018.

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Overview of Financial Statements The following summarizes the content of the Authority’s financial statements, which include its blended component unit, Community Enhancement Corporation ("CEC"). Separate financial statements for CEC may be obtained at the Authority's administrative offices.

1. Management Discussion and Analysis 2. Financial Statements, including the Statements of Net Position on page ten, the Statements of

Revenues, Expenses and Changes in Net Position on page fourteen, and the Statements of Cash Flows on page sixteen.

3. Statements of Net Position which presents information on all of the Authority's assets and liabilities,

with the difference between the two reported as net position. Over time, increases or decreases in net position usually serve as a useful indicator of whether the change in the financial position of the Authority is improving or deteriorating.

4. Statements of Revenues, Expenses, and Changes in Net Position which presents information showing how the Authority's net position changed during the most recent period. This statement shows the total revenues and total expenses of the Authority and the difference between them is the Authority's net income.

5. Statements of Cash Flows which presents changes in cash and cash equivalents resulting from operations, capital and noncapital financing activities, and investing activities.

6. Notes to Financial Statements, which provide additional information essential to the understanding of the Authority's financial statements.

The primary focus of the Authority’s financial statements is on the Authority as a whole. This perspective allows the user to address relevant questions, broaden a basis for comparison and enhance the Authority’s accountability. Entity Wide Financial Statements The Authority engages in only business‐type activities. The financial statements are designed to be corporate‐like in that all business‐type activities are consolidated to a total for the entire entity. The Authority’s major business activities include the following:

Rental of real estate under a low‐rent public housing contract. Provide rental assistance and Family Self Sufficiency counseling under Section 8 voucher contracts, and also through CEC’s Section 8 housing.

Provision of tenant services funded from both low‐rent public housing contracts and grant funding.

Through CEC, the acquisition and rehabilitation of rental units to provide Section 8 housing funded by federal grant programs.

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Statements of Net Position The following table reflects the condensed Statements of Net Position compared to prior years.

2019 2018 2017

Current Assets 11,304,803$ 18,612,402$ 23,243,915$ Capital Assets 64,875,832 64,935,679 56,646,085 Other Assets 8,868,656 6,275,349 1,063,135

Total assets 85,049,291 89,823,430 80,953,135

Current Liabilities 4,223,383 5,443,104 4,653,652

Noncurrent Liabilities 9,577,934 9,292,112 6,970,257

Total liabilities 13,801,317 14,735,216 11,623,909

Net PositionNet investment in capital assets 56,756,694 54,665,714 62,281,862 Restricted ‐ 879,554 ‐ Unrestricted 14,491,280 19,542,946 7,047,364

Total Net Position 71,247,974$ 75,088,214$ 69,329,226$

For more detailed information, see pages 11‐14 for the Statements of Net Position. Major Factors Affecting the Statements of Net Position 2019 Current assets decreased by $7,307,599 primarily due to a decrease in cash. This reduction was due in part to paying for expenses booked in the previous year but paid in 2019, cash outlays in future development, loan to Sooner Haven and the spending of funds to reduce operating reserves closer to the HUD recommended levels. Other assets increased by $2,593,307 primarily due to a loan to Sooner Haven. Capital assets decreased by $59,847 due to depreciation in excess of capital asset purchases offset by depreciation. Current liabilities decreased by $1,219,721 primarily due to a reduction in construction in progress related to the Energy Performance Contract. Noncurrent liabilities increased $285,822 primarily due to an increase in unearned land lease.

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2018 Current assets decreased by $4,631,513 primarily due to a decrease in cash that was used to pay for energy efficiency improvements. Other assets increased by $5,212,214 primarily due to the note receivable from Sooner Haven, LLC. Capital assets increased by $6,905,043 due to capital asset purchases offset by depreciation. Current liabilities decreased by $595,000 primarily to a decrease in accounts payable. Noncurrent liabilities increased $2,321,855 primarily due to the long‐term debt related to the acquisition and renovation of Yorktown Apartments. Change in Unrestricted Net Position

2019 2018

Unrestricted Net Position, Beginning of Year 19,542,946$ 7,047,364$

Change in Unrestricted Net Position (5,051,666) 12,495,582

Unrestricted Net Position, End of Year 14,491,280$ 19,542,946$

While the results of operations are a significant measure of the Authority's activities, the analysis of the changes in unrestricted net position provides a clearer change in financial well‐being.

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Statements of Revenues, Expenses and Changes in Net Assets The following schedule compares the revenues and expenses for the current and previous fiscal years. As stated before, the Authority engages in only business‐type activities.

2019 2018 2017

RevenuesOperating grants and subsidies 41,114,582$ 42,703,911$ 39,049,033$ Capital grants 2,558,767 1,908,373 2,303,205 Tenant rental and other revenue 6,842,243 6,896,548 7,152,591 Investment income 66,931 81,028 85,863 Interest income 197,875 41,310 ‐ Other 379,175 6,571,290 568,076

Total revenues 51,159,573 58,202,460 49,158,768

ExpensesAdministrative services 5,841,994 6,125,465 6,381,746 Tenant services 2,381,712 2,161,857 2,181,405 Utilities 2,327,606 2,445,074 2,530,687 Maintenance 10,173,648 8,502,771 8,939,983 Protective services 1,856,963 2,091,040 2,047,699 Section 8 Housing assistance payments 25,598,109 25,557,664 24,602,198 Depreciation 4,411,892 3,822,187 3,698,378 Insurance 1,220,058 1,200,368 1,035,388 Interest 254,908 226,232 122,360 Other 932,923 310,814 281,006

Total expenses 54,999,813 52,443,472 51,820,850

Change in Net Position (3,840,240)$ 5,758,988$ (2,662,082)$

Major Factors Affecting the Statement of Revenues, Expenses and Changes in Net Position 2019 Operating grants and subsidies, including HUD capital grants decreased by $939,935 primarily due to a reduction in Section 8 funds. Other revenue decreased by $6,192,115 primarily due to receiving one time settlement funds, proceeds from the sale of Sooner Haven and developer fees in 2018 that did not occur in 2019. Total expenses increased by $2,474,976 primarily due to increases in Maintenance and Operations costs from various contract work as well as increases in depreciation expenses due to a full year of depreciation on assets acquired the previous year and the addition of assets acquired under the Energy Performance Contract.

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2018 Operating grants and subsidies, including HUD capital grants, increased by $3,260,046, due primarily to an increase in funding for the Housing Choice Voucher program of approximately $1.8 million and the Public Housing program of approximately $1.5 million. Other revenue increased by $6,046,009, primarily due to the receipt of settlement funds from a lawsuit, gain on sale of Sooner Haven Apartments to Sooner Haven, LLC, and an increase in developer fee income. Total expenses increased by $736,772 driven mainly by an increase in Housing Assistance Payments. Capital Assets and Debt Administration

2019 2018 2017

Land 6,493,203$ 5,804,884$ 5,307,144$ Construction in progress 1,503,339 6,706,520 ‐ Buildings and improvements 153,359,916 155,349,881 150,575,127Furniture and equipment 11,915,345 5,581,438 5,671,120

Total cost of assets 173,271,803 173,442,723 161,553,391

Accumulated depreciation (108,395,971) (108,507,044) (104,907,306)

Net 64,875,832$ 64,935,679$ 56,646,085$

The following summarizes the changes in capital assets:

2019 2018

Balance, beginning of year 64,935,679$ 56,646,085$

Additions 4,352,045 12,951,041

Disposals ‐ (839,260)

Depreciation (4,411,892) (3,822,187)

Balance, end of year 64,875,832$ 64,935,679$

See Note 5 of the financial statements for additional information related to capital assets.

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Debt Outstanding During 2019, the Authority made principal payments of $737,663 and incurred additional debt of $492,441. The proceeds of the debt were used to finance the renovation of Yorktown Apartments. During 2018, the Authority made principal payments of $695,31 and incurred additional debt of $2,490,244. The proceeds of the debt were used to finance the acquisition and renovation of Yorktown Apartments. See Note 6 of the financial statements for additional information relating to long‐term debt. Economic Factors Significant economic factors affecting the entity are as follows:

Federal funding from the Department of Housing and Urban Development (or applicable agency)

Local labor supply and demand, which can affect salary and wage rates

Local inflationary, recessionary, and employment trends, which can affect resident incomes, and therefore the amount of rental income

Inflationary pressure on utility rates, supplies, and other costs

Financial Contact The individual to be contacted regarding this report is Thomas Henderson, Chief Financial Officer of the Oklahoma City Housing Authority, at (405) 239‐7551. Specific requests may also be submitted to Thomas Henderson, at 1700 Northeast Fourth Street, Oklahoma City, Oklahoma, 73117‐3800.

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See Notes to Financial Statements 11

Oklahoma City Housing Authority Statement of Net Position

December 31, 2019

Discretely

Presented

Primary ComponentGovernment Units

Assets

Current AssetsCash and cash equivalents

Unrestricted 5,536,551$ 825,392$ Restricted ‐ tenant security deposits 526,420 14,775 Restricted ‐ other 90,948 12,954,117

Total cash and cash equivalents 6,153,919 13,794,284

Investments ‐ unrestricted 2,500,000 ‐ Accounts receivable

Tenants, net of allowance fordoubtful accounts of $88,762 40,367 14,095

Intergovernmental 398,392 26,841 Interest 239,185 42,204 Developer fees 500,000 ‐ Other 317,604 ‐

Prepaid expenses and other assets 1,007,273 39,521 Prepaid land lease, current portion ‐ 14,597 Inventory 148,063 5,775

Total current assets 11,304,803 13,937,317

Capital AssetsNon‐depreciable 7,996,542 24,438,560 Depreciable, net 56,879,290 9,787,258

Total capital assets 64,875,832 34,225,818

Other AssetsPrepaid land lease, noncurrent portion ‐ 759,031 Other assets ‐ 170,797 Notes receivable 7,951,022 ‐ Investment in future developments 917,634 ‐

Total other assets 8,868,656 929,828

Total Assets 85,049,291$ 49,092,963$

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December 31, 2019

Discretely

Presented


Liabilities and Net Position

Current LiabilitiesCurrent maturities of long‐term debt 781,752$ 133,233$ Accounts payable

Trade 862,844 131,635 Intergovernmental 511,966 ‐ Construction 314,573 4,852,945 Developer fee payable ‐ 500,000 Due to primary government ‐ 25,157

Accrued liabilitiesSalaries, wages, and payroll taxes 413,440 39,727 Compensated absences, current portion 172,528 ‐ Accrued interest 21,274 413,184 Other 533,316 6,083

Tenant security deposits payable 526,420 14,775 Unearned land lease revenue, current portion 34,293 ‐ Unearned revenue 50,977 14,737

Total current liabilities 4,223,383 6,131,476

Long‐Term DebtMortgage notes payable 6,587,386 10,980,068 Bonds payable ‐ 28,150,966

Total long‐term debt 6,587,386 39,131,034

Compensated Absences, Non‐Current 987,733 ‐

Unearned Land Lease, Non‐Current 2,002,815 ‐

Other Non‐Current Liabilities ‐ ‐

Total liabilities 13,801,317 45,262,510

Net PositionUnrestricted 14,491,280 1,268,444 Restricted ‐ ‐ Net investment in capital assets 56,756,694 2,562,009

Total net position 71,247,974 3,830,453

Total Liabilities and Net Position 85,049,291$ 49,092,963$

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December 31, 2018

Discretely

Presented

Primary ComponentGovernment Units(As Restated)

Assets


Unrestricted 10,961,335$ 88,002$ Restricted ‐ tenant security deposits 516,756 ‐ Restricted ‐ other 939,334 16,904,244

Total cash and cash equivalents 12,417,425 16,992,246

Investments ‐ unrestricted 3,970,000 ‐ Accounts receivable

Tenants, net of allowance for doubtfulaccounts of $36,609 47,203 65,239

Intergovernmental 170,253 ‐ Interest 42,650 43,640 Developer fees 500,000 ‐ Other 158,834 ‐

Prepaid expenses and other assets 1,050,281 ‐ Prepaid land lease, current portion ‐ 14,597 Inventory 255,756 ‐






Total Assets 89,823,430$ 39,552,755$

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December 31, 2018

Discretely

Presented

Primary ComponentGovernment Units(As Restated)


Current LiabilitiesCurrent maturities of long‐term debt 737,665$ 25,210$ Accounts payable

Trade 634,769 120,183 Intergovernmental 118,418 ‐ Construction 1,905,605 1,558,886 Developer fee payable ‐ 500,000 Due to primary government ‐ 27,003

Accrued liabilitiesSalaries, wages, and payroll taxes 694,727 ‐ Compensated absences, current portion 112,719 ‐ Accrued interest 59,647 96,562 Other 547,593 ‐

Tenant security deposits payable 516,756 26,175 Unearned land lease revenue, current portion 14,597 ‐ Unearned land revenue 100,608 ‐

Total current liabilities 5,443,104 2,354,019

Long‐Term DebtMortgage notes payable 6,876,695 5,978,068 Bonds payable ‐ 28,124,329

Total long‐term debt 6,876,695 34,102,397

Compensated Absences, Non‐Current 982,009 ‐

Unearned Land Lease, Non‐Current 1,373,628 ‐

Other Non‐Current Liabilities 59,780 ‐


Net PositionUnrestricted 19,542,946 1,389,089 Restricted 879,554 ‐ Net investment in capital assets 54,665,714 1,707,250



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Oklahoma City Housing Authority Statement of Revenues, Expenses and Changes in Net Position

Year Ended December 31, 2019

Discretely

Presented


Operating RevenuesDirect HUD contributions and grants Public housing operating subsidies 11,345,960$ ‐$ Public housing modernization 1,716,118 ‐ Section 8 grants and subsidies

Vouchers 26,959,678 ‐ Family Self Sufficiency 29,084 ‐ Section 8 ‐ Other 599,862 ‐ Other 93,443 ‐

Other governmental grants 370,437 ‐ Tenant rental revenue 6,328,958 1,053,339 Other tenant revenue 513,285 19,792 Developer fees ‐ ‐ Other operating revenue 244,310 ‐

Total operating revenues 48,201,135 1,073,131

Operating ExpensesHousing assistance payments 25,598,109 ‐ Administrative services 5,415,721 512,500 Tenant services 2,381,712 ‐ Utilities 2,327,606 144,965 Ordinary maintenance and operations 10,173,648 129,197 Protective services 1,856,963 ‐ Insurance 1,220,058 88,950 Bad debts 426,273 8,511 Payment in lieu of taxes 236,684 ‐ Other general 103,725 27,794 Management fees ‐ 44,694 Depreciation 4,411,892 125,844

Total operating expenses 54,152,391 1,082,455

Operating Income (Loss) (5,951,256) (9,324)

Nonoperating Revenue (Expense)Investment income 66,931 178,239 Interest income 197,875 354 Interest expense (254,908) (165,240) Other income (expense) ‐ 1,071 Predevelopment expenses (592,514) ‐ Donations of real property 96,568 ‐ Gain on sale of capital assets 38,297 ‐

Total nonoperating revenue (expense) (447,751) 14,424

Change in Net Position Before Capital Grants and Equity Contributions (6,399,007) 5,100

HUD capital grants 2,558,767 ‐ Equity contributions ‐ 729,014

Change in Net Position (3,840,240) 734,114

Net Position, Beginning of Year 75,088,214 3,096,339

Net Position, End of Year 71,247,974$ 3,830,453$

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Oklahoma City Housing Authority Statement of Revenues, Expenses and Changes in Net Position


Discretely

Presented


Operating RevenuesDirect HUD contributions and grants Public housing operating subsidies 11,391,281$ ‐$ Public housing modernization 1,792,681 ‐ Section 8 grants and subsidies

Vouchers 28,498,386 ‐ Family Self Sufficiency 38,243 ‐ Section 8 ‐ Other 802,154 ‐ Other 131,166 ‐

Other governmental grants 50,000 ‐ Tenant rental revenue 6,510,403 163,070 Other tenant revenue 386,145 ‐ Developer fees 625,000 ‐ Other operating revenue 1,947,144 ‐

Total operating revenues 52,172,603 163,070

Operating ExpensesHousing assistance payments 25,557,664 ‐ Administrative services 5,772,448 11,595 Tenant services 2,161,857 ‐ Utilities 2,445,074 10,083 Ordinary maintenance and operations 8,502,771 22,456 Protective services 2,091,040 ‐ Insurance 1,200,368 ‐ Bad debts 353,017 ‐ Payment in lieu of taxes 209,494 ‐ Other general 101,320 581 Management fees ‐ 428 Depreciation 3,822,187 25,229

Total operating expenses 52,217,240 70,372

Operating Loss (44,637) 92,698

Nonoperating Revenue (Expense)Investment income 81,028 ‐ Interest income 41,310 ‐ Interest expense (226,232) (8,502) Gain on disposition of capital assets 3,999,146 ‐

Total nonoperating revenue (expense) 3,895,252 (8,502)

Change in Net Position Before Capital Grants and Equity Contributions 3,850,615 84,196

HUD capital grants 1,908,373 ‐ Transfers ‐ ‐ Equity contributions ‐ 1,629,115

Change in Net Position 5,758,988 1,713,311



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Oklahoma City Housing Authority Statements of Cash Flows

Years Ended December 31, 2019 and 2018

2019 2018

Operating ActivitiesCash received from government grants and subsidies 40,415,589$ 43,163,574$ Cash received from tenants 6,528,312 6,886,046 Cash received from other sources 1,184,495 2,404,734 Cash payments to housing assistance payments (24,875,892) (25,557,664) Cash payments to employees for services (10,716,341) (10,428,412) Cash payments for goods or services (13,364,171) (14,466,942)

Net Cash (used for) from Operating Activities (828,008) 2,001,336

Capital and Related Financing ActivitiesHUD capital grants 2,558,767 1,908,373 Principal payments on long‐term debt (737,663) (695,313) Proceeds from issuance of long‐term debt 492,441 2,490,244 Purchases of capital assets (5,846,509) (11,045,436) Proceeds from the sale of capital assets 38,297 39,856 Interest payments on mortgage notes and bonds payable (293,281) (194,809)

Net Cash used for Capital and Related Financing Activities (3,787,948) (7,497,085)

Investing ActivitiesInvestments in future developments (677,299) (601,027) Payments received on investments in future developments 42,500 788,813 Issuance of notes receivable (2,551,022) ‐ Purchase of investments ‐ (1,470,000) Sales and maturities of investments 1,470,000 4,410,000 Investment income 35,636 79,688

Net Cash (used for) from Investing Activities (1,680,185) 3,207,474

Net Change in Cash and Cash Equivalents (6,296,141) (2,288,275)

Cash and Cash Equivalents, Beginning of Year 12,417,425 14,705,700

Cash and Cash Equivalents, End of Year 6,121,284$ 12,417,425$

Primary Government

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Oklahoma City Housing Authority Statements of Cash Flows


2019 2018(As Restated)

Reconciliation of Operating Loss to Net Cash (Used For) From Operating Activities

Operating loss (5,951,256)$ (44,637)$ Adjustments to reconcile operating loss to

net cash (used for) from operating activities Depreciation 4,411,892 3,822,187 Changes in assets and liabilities

Accounts receivable (380,073) (163,858) Inventory 107,693 (40,406) Prepaid expenses and other assets 43,008 (493,219) Accounts payable ‐ Intergovernmental grants 393,548 98,312 Accounts payable 228,075 (2,340,064) Accrued liabilities (289,811) 929,466 Tenant security deposits payable 9,664 8,896 Unearned revenue 599,252 224,659

Net Cash (used for) from Operating Activities (828,008)$ 2,001,336$

Supplemental Schedule of Noncash Capital and Related Financing ActivitiesIncrease in capital assets from accounts payable ‐ construction 314,573$ 1,905,605$

Increase in notes receivable from the sale of capital assetsIncrease in notes receivable 612,082$ 5,400,000$ Gain on sale of capital assets 1,224,164 4,378,703

Decrease in capital assets (612,082)$ 1,021,297$

Primary Government

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Oklahoma City Housing Authority Notes to Financial Statements December 31, 2019 and 2018

Note 1 ‐ Summary of Significant Accounting Policies Nature of the Organization The Oklahoma City Housing Authority (the “Authority”) is a municipal entity organized in 1965 for the development, operation and administration of low‐rent housing programs. The programs are administered through the U.S. Department of Housing and Urban Development (“HUD”) under the U.S. Housing Act of 1937, as amended. The primary purpose of the programs is to provide safe, decent and sanitary housing for low‐income families in Oklahoma City, Oklahoma. The Authority operates its programs primarily with grants and subsidies received from HUD under contractual agreements and with rental proceeds received from tenants. Funds for the acquisition, development or modernization of dwelling units have generally been derived from HUD through the sale of notes and bonds and from HUD grants. Reporting Entity The Authority’s financial statements include the accounts of all Authority operations. The criteria for including organizations as component units within the Authority reporting entity, as set forth in Section 2100 of the Governmental Accounting Standards Board’s (GASB) Codification of Government Accounting and Financial Reporting Standards, include whether:

The organization is legally separated (can sue and be sued in their own name).

The Authority holds the corporate powers of the organization. The Authority appoints a voting majority of the organization’s board.

The Authority is able to impose its will on the organization.

The organization has the potential to impose a financial benefit/burden on the Authority.

There is fiscal dependency by the organization on the Authority. Based on the aforementioned criteria, the Authority is not a component unit within another reporting entity. Blended Component Units Included within the reporting entity is the Community Enhancement Corporation (“CEC”), which is an Oklahoma not‐for‐profit corporation formed June 15, 1984, in an effort to expand into charitable housing programs offered to lower‐income citizens of Oklahoma City. In 1994, CEC acquired from HUD, at a nominal price, several single‐family homes and a multi‐family apartment complex. CEC receives housing assistance payments for these projects pursuant to Section 8 of the U.S. Housing Act of 1937. In addition, CEC receives Federal funds used for the purchase and rehabilitation of Section 8 rental units. There are separate financial statements for CEC, which may be obtained at the Authority’s administrative offices. Included within the reporting entity of the Authority, through CEC, as blended component units are JHJ GP, LLC and Sooner Haven MM, LLC. JHJ GP, LLC and Sooner Haven MM, LLC are wholly owned by CEC. JHJ GP, LLC is the managing general partner of John H Johnson ALF, LP, a discretely presented component unit. Sooner Haven MM, LLC is the managing member of Sooner Haven, LLC, a discretely presented component unit. Separate set of financial statements for JHJ GP, LLC and Sooner Haven MM, LLC are not issued.

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Discretely Presented Component Units The component unit column in the financial statements include the financial data of the Authority’s discretely presented component units as of December 31, 2019 and 2018. The component units are reported in a separate column to emphasize that they are legally separate from the Authority. John H. Johnson ALF, LP (the Partnership or JHJ, LP) was formed for the purpose of owning and operating a 130‐unit low‐income housing project in Oklahoma City, Oklahoma. As previously mentioned, JHJ GP, LLC is the managing general partner of the Partnership, and has on ownership percentage of 0.01% in the Partnership. Sooner Haven, LLC was formed for the purpose of owning and operating an existing 150‐unit low‐income Rental Assistance Demonstration (RAD) project in Oklahoma City, Oklahoma. As mentioned above, Sooner Haven MM, LLC is the managing general partner of Sooner Haven, LLC and has an ownership percentage of 0.01% in Sooner Haven, LLC. The financial statements of the discretely presented component units are presented in CEC’s basic financial statements. Separate financial statements for the Partnership are not issued. Complete financial statements for Sooner Haven, LLC can be obtained from CEC’s administrative offices at 1700 N E 4 St., Oklahoma City, Oklahoma, 73117‐3800. Program Accounting The accounts of the Authority are organized on the basis of programs, each of which is considered a separate accounting entity. The operations of each program are accounted for with a separate set of self‐balancing accounts that comprise its assets, liabilities, net position, revenues, and expenses. The Authority classifies its programs as proprietary. Basis of Accounting and Measurement Focus The Department of Housing and Urban Development Real Estate Assessment Center (REAC) assesses the financial condition of Public Housing Authorities (PHA’s). To uniformly and consistently assess the PHA’s, REAC requires that PHA’s financial statements conform to Generally Accepted Accounting Principles (GAAP). The accounting and financial reporting treatment applied to a fund is determined by its measurement focus. All proprietary funds are accounted for using the economic resources measurement focus. With this measurement focus, all assets and liabilities associated with the operation of these funds are included on the statement of net position. Net position is segregated into invested in capital assets, restricted and unrestricted components. The statement of revenues, expenses and changes in net position presents increases (e.g., revenues) and decreases (e.g., expenses) in total net position. When both restricted and unrestricted net position is available for use, generally, it is the Authority’s policy to use restricted net position first, and then unrestricted net position as it is needed. The statement of cash flow presents the cash flows for operating activities, investing activities, capital and related financing activities and non‐capital financing activities.

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Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Cash and Cash Equivalents The Authority's cash deposits can only be invested in HUD approved investments: direct obligations of the Federal Government backed by the full faith and credit of the United States, obligations of government agencies, securities of government sponsored agencies, demand and savings deposits, time deposits, repurchase agreements, and other securities approved by HUD. For the purpose of the statement of cash flows, the Authority considers cash deposits and highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Accounts Receivable Revenues are recorded when earned and are reported as accounts receivable until collected. Accounts receivable are expensed as bad debts at the time they are determined to be uncollectible. Management has established an allowance for doubtful accounts for amounts that may not be collectible in the future. Receivables are reported net of the related allowance. Investments Investments, including restricted investments, if any, consist of certificates of deposit as of December 31, 2019 and 2018. The investments are recorded at cost, which approximates market. Restricted investments, if any, generally include amounts restricted for Section 8 Housing Assistance payments and Section 8 Family Self Sufficiency (“FSS”) funds. Section 8 FSS funds are offset by FSS liabilities. Inventory Inventory consists of expendable materials and supplies and is stated at weighted‐average cost. Capital Assets Capital assets are recorded at cost, which is comprised of development and modernization costs funded by capital grants, the fair value of donated assets, and property additions from operations. The Authority uses a capitalization threshold of $5,000 or more and useful life of more than one year. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend lives are not expensed as incurred. Upon sale or retirement, the costs are removed from the accounts, and the resulting gain or loss is included in revenue or expense.

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Depreciation of capital assets is provided using the straight‐line method over the estimated lives of the respective assets as follows: Buildings and improvements 20 ‐ 40 years Furniture and equipment 5 ‐ 10 years Long‐lived assets held and used by an entity are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment loss has been recognized for the years ended December 31, 2019 and 2018. Land Leases Unearned land lease revenue is being amortized over the terms of the leases using the straight‐line method of amortization (Note 9). Notes and Interest Receivable Notes and interest receivable are carried at amounts advanced, net of reserve for uncollectible accounts, if any. As of December 31, 2019 and 2018, the Authority considered all notes and interest receivables to be fully collectable. Investment in Future Developments Investments in future developments represents costs incurred by the Authority for future developments and are recorded at cost until a project is established. If a potential project is no longer deemed to be feasible, the costs are charged to expense in the year the project is abandoned. Compensated Absences Vested personal leave is recorded as an expense as the benefits accrue to employees. Unearned Revenue Unearned revenue consists primarily of advance rental payments received from tenants. Unearned Land Leases Unearned land lease revenue for the Authority is being amortized over the terms of the leases using the straight‐line method of amortization (Note 9). Income Taxes The Authority, as a governmental entity, is not liable for federal and state income taxes. However, the Authority does make annual payments in lieu of taxes (“PILOT”) to local school districts. CEC is an organization exempt from federal income taxes under Internal Revenue Code Section 501(c)(3).

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Components of Net Position Components of net position include the following:

Net Investment in Capital Assets – Consists of capital assets, net of accumulated depreciation and reduced by outstanding balances of debt issued to finance the acquisition, improvement, or construction of those assets.

Restricted Net Position – Consists of assets and deferred outflows less related liabilities and deferred inflows reported in the basic statement of net position that are subject to restraints on their use by HUD. As of December 31, 2019 and 2018, restricted net position totaled $) and $879,554, respectively. Restricted net position consists of Section 8 Choice Voucher payments received from HUD but not yet paid to eligible individuals.

Unrestricted Net Position – Consists of assets and deferred outflows less related liabilities and deferred inflows reported in the basic statement of net position that are not subject to restraints on their use.

Operating Revenues and Expenses The Authority considers all revenues and expenses (including HUD intergovernmental revenues and expenses) as operating items with the exception of interest expense, interest revenue, and gain/loss on disposal of capital assets which are considered non‐operating for financial reporting purposes. Restricted and Unrestricted Resources The Authority applies restricted resources first when an expense is incurred for purposes for which both restricted and unrestricted resources are available. Fraud Recovery HUD requires the Authority to account for monies recovered from tenants who committed fraud or misrepresentation in the application process for rent calculations and now owe additional rent for prior periods or retroactive rent as fraud recovery. The monies recovered are shared by HUD and the local authority.

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Note 2 ‐ Cash and Cash Equivalents Primary Government Deposits It is the Authority’s policy to invest in those securities which are authorized by HUD. Such investments generally consist of obligations of the U.S. government and its agencies and instrumentalities, collateralized or insured certificates of deposit or other bank deposits, and certain other commercial instruments. The primary objectives of the Authority’s investment policy are safety, liquidity, yield, and administrative costs. Custodial Credit Risk Custodial credit risk that, in the event of a bank failure, the Authority’s deposits may not be returned to it. As of December 31, 2019 and 2018, the Authority's deposits were not exposed to custodial credit risk, as all deposits were insured by the Federal Deposit Insurance Commission (FDIC) and collateralized with securities held by a pledging financial institution in accordance with PDPA. At December 31, 2019, the Authority’s carrying amount of deposits was $8,653,919, including cash and cash equivalents and certificates of deposit, and the bank balance was $9,448,113. Of the bank balances, $1,377,208 was covered by Federal Depository Insurance and the remaining balance of $8,096,053 was collateralized with securities held by a pledging financial institution’s agent in the Authority’s or CEC’s name. At December 31, 2018, the Authority’s carrying amount of deposits was $16,387,425, including cash and cash equivalents and certificates of deposit, and the bank balance was $16,568,286. Of the bank balances, $4,658,896 were covered by Federal Depository Insurance and the remaining balance of $11,909,390 was collateralized with securities held by a pledging financial institution’s agent in the Authority’s or CEC’s name. Included in cash and cash equivalents are replacement reserves of approximately $127,000 as of December 31, 2019 and 2018. Discretely Presented Component Units Credit Risk Custodial credit risk is the risk that, in the event of a bank failure, the Partnership’s deposits may not be returned to it. As of December 31, 2019, JHJ, LP’s bank balances were covered by Federal Depository Insurance. As of December 31, 2018, the JHJ, LP had carrying amounts and bank balances in excess of the federally insured limit of $250,000. As of December 31, 2019 and 2018, Sooner Haven, LLC had carrying amounts and bank balances in excess of the federally insured limit of $250,000. Management monitors the financial ratings of such financial institutions and does not believe that the deposits are exposed to a significant level of risk.

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Note 3 ‐ Restricted Cash Primary Government Restricted cash as of December 31, 2019 consists of $526,420 in tenant security deposits, $90,948 in the housing choice voucher program for FSS escrow, and $0 in the housing choice voucher program for unspent vouchers. Restricted cash as of December 31, 2018 consists of $516,756 in tenant security deposits, $59,780 in the housing choice voucher program for FSS escrow, and $879,554 in the housing choice voucher program for unspent vouchers. Discretely Presented Component Units

Restricted cash consists of various bond trust accounts as required by the bond documents (Note 6), tenant security deposits, and various reserves and escrows required by HUD and the partnership/operating agreements. Total restricted cash as of December 31, 2019 and 2018 was $12,968,117 and $16,904,244, respectively.

Note 4 ‐ Accounts Receivable‐Intergovernmental Accounts receivable‐intergovernmental consists of the following as of December 31, 2019 and 2018:

2019 2018

HUD

Capital fund program 337,712$ 108,392$

Community Development Block Grant 34,359 35,485

Resident Opportunity and Supportive Services 14,836 ‐

Total HUD 386,907 143,877

Sober Living 8,333 ‐

Continuum of Care 3,152 26,376

398,392$ 170,253$

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Note 5 ‐ Capital Assets (As Restated) Primary Government The following is a summary of property, structures and equipment for the years ended December 31, 2019 and 2018:

January 1, December 31,2019 Increases Decreases 2019

Non‐Depreciable Capital AssetsLand 5,804,884$ 688,319$ ‐$ 6,493,203$ Construction in progress 6,706,520 1,258,712 (6,461,893) 1,503,339

Total Non‐Depreciable Assets 12,511,404 1,947,031 (6,461,893) 7,996,542

Depreciable Capital AssetsBuildings and improvements 155,349,881 1,981,851 (3,971,816) 153,359,916 Furniture and equipment 5,581,438 6,885,056 (551,149) 11,915,345

Total Depreciable Assets 160,931,319 8,866,907 (4,522,965) 165,275,261

Less Accumulated Depreciation (108,507,044) (4,411,892) 4,522,965 (108,395,971)

Net Depreciable Capital Assets 52,424,275 4,455,015 ‐ 56,879,290

Net Capital Assets 64,935,679$ 6,402,046$ (6,461,893)$ 64,875,832$

January 1, December 31,2018 Increases Decreases 2018

Non‐Depreciable Capital AssetsLand 5,307,144$ 497,740$ ‐$ 5,804,884$ Construction in progress ‐ 6,706,520 ‐ 6,706,520

Total Non‐Depreciable Assets 5,307,144 7,204,260 ‐ 12,511,404

Depreciable Capital AssetsBuildings and improvements 150,575,127 5,606,764 (832,010) 155,349,881 Furniture and equipment 5,671,120 140,017 (229,699) 5,581,438

Total Depreciable Assets 156,246,247 5,746,781 (1,061,709) 160,931,319

Less Accumulated Depreciation (104,907,306) (3,822,187) 222,449 (108,507,044)

Net Depreciable Capital Assets 51,338,941 1,924,594 (839,260) 52,424,275

Net Capital Assets 56,646,085$ 9,128,854$ (839,260)$ 64,935,679$

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CEC has entered into a construction contract with Red Oak Contractors, LLC for the rehabilitation of Yorktown Apartments in the amount of $1,714,329, including change orders. As of December 31, 2019, $857,600 has been incurred in connection with the contract. Discretely Presented Component Units The following is a summary of property, structures and equipment for the year ended December 31, 2019:

12/31/2018 Increases Decreases 12/31/2019

Non‐Depreciable Capital Assets

Land ‐$ ‐$ ‐$ ‐$

Construction in progress 15,959,498 8,479,062 ‐ 24,438,560

Total nondepreciable 15,959,498 8,479,062 ‐ 24,438,560

Depreciable Capital Assets

Buildings and improvements 5,543,674 4,273,670 ‐ 9,817,344

Furniture and equipment ‐ 118,686 ‐ 118,686

Total depreciable 5,543,674 4,392,356 ‐ 9,936,030

Less Accumulated Depreciation (22,928) (125,844) ‐ (148,772)


Net Capital Assets 21,480,244$ 12,745,574$ ‐$ 34,225,818$

Sooner Haven, LLC has entered into a construction contract with Red Oak Contractors, LLC for the rehabilitation of a low‐income housing development in the amount of $14,763,633, including change orders. As of December 31, 2019, $7,555,390 has been incurred in connection with the contract.

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Non‐Depreciable Capital Assets

Land ‐$ ‐$ ‐$ ‐$

Construction in progress 4,128,720 11,830,778 ‐ 15,959,498


Depreciable Capital Assets

Buildings and improvements ‐ 5,543,674 5,543,674

Total depreciable ‐ 5,543,674 ‐ 5,543,674

Less Accumulated Depreciation ‐ (22,928) ‐ (22,928)

Net Depreciable Capital Assets ‐ 5,520,746 ‐ 5,520,746


Note 6 ‐ Long‐Term Debt Primary Government The Authority has obtained financing for the purpose of modernizing its public housing dwellings with improvements that improve energy efficiency. The decrease in utility costs to the Authority is used to service the debt. During 2018, CEC obtained financing for the purpose of acquiring and renovating Yorktown Apartments. During 2019, CEC financed additional renovations at Yorktown Apartments.

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Long term debt as of December 31, 2019 and 2018 consists of:

2019 2018


2.91% note payable, due in quarterly installments of $220,000

including interest, increased by 2.5% each year, with final

installment due October 2024, secured by building

improvements 4,386,453$ 5,124,116$

Community Enhancement Corporation

Variable rate (4.75% at 12/31/2019), $3,536,000 bridge loan with

Mabry Bank, due in monthly payments of interest only, unpaid

principal and interest due February 2021, secured by a mortgage

and deed of trust on Yorktown Apartments 2,982,685 2,490,244

7,369,138 7,614,360

Less current maturities (781,752) (737,665)

Long‐term debt, less current maturities 6,587,386$ 6,876,695$

Activity in long‐term debt for the primary government is as follows for the years ended December 31, 2019 and 2018:

2019 2018

Balance, Beginning of Year 7,614,360$ 5,819,429$

Proceeds from Issuance 492,441 2,490,244

Principal Payments (737,663) (695,313)

Balance, End of Year 7,369,138$ 7,614,360$

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A summary of payments due for the long‐term debt is as follows: Year Ended December 31, Principal Interest Total

2020 781,752$ 294,569$ 1,076,321$ 2021 3,810,317 125,877 3,936,194 2022 875,368 71,318 946,686 2023 925,026 45,307 970,333 2024 976,675 17,828 994,503 2025 ‐ 2029 ‐ ‐ ‐

7,369,138$ 554,899$ 7,924,037$

Discretely Presented Component Units Bonds Payable JHJ, LP is financing the construction of the assisted living facility in part with variable rate (6.5% at December 31, 2019) Series 2017 Multifamily Housing Revenue Bonds issued by Oklahoma Housing Finance Agency in the amount of $16,000,000. The bonds payable are secured by a deed of trust on all property and equipment. Monthly interest only payments are due through the Stabilization Date, as defined in the Bond Indenture, when the construction bonds are expected to be converted into permanent financing. The bonds have a maturity date of September 1, 2034, at which time unpaid principal and interest is due and payable. The bonds have a final maturity date of September 1, 2034. The outstanding balance of the bonds payable was $15,981,908 and $16,000,000 at December 31, 2019 and 2018, respectively. During 2019 and 2018, JHJ, LP incurred interest of $1,066,613 and $949,000, respectively, on the bonds, which has been capitalized and included in construction in progress (Note 5). Sooner Haven, LLC (Sooner Haven) is financing the construction and rehabilitation of the low‐income housing development renovation project in part with 2.35% Series 2018 Collateralized Revenue Bonds issued by Oklahoma Housing Finance Agency in the amount of $12,500,000. The bonds payable are secured by a deed of trust on all property and equipment. Interest only payments are due each April 1 and October 1 beginning October 1, 2018 through maturity. The bonds have an initial mandatory tender date of October 1, 2020 and a maturity date of October 1, 2021, at which time unpaid principal and interest is due and payable. The outstanding balance of construction bonds payable was $12,500,000 as of December 31, 2019 and 2018 (excluding unamortized debt issuance costs of $225,914 as of December 31, 2019 and $350,461 as of December 31, 2018). During 2019 and 2018, Sooner Haven incurred interest of $296,967 and $55,252, respectively, on the bonds, which has been capitalized and included in construction in progress (Note 5), net of interest earned on bond proceeds held in escrow of $174,000 and $32,213, respectively. As of December 31, 2019 and 2018, accrued interest on the bonds was $74,219 and $55,252, respectively.

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Mortgage Notes Payable Sooner Haven has entered into a loan agreement in the principal amount of $8,991,000 with Lancaster Pollard Mortgage Company, LLC that is insured by HUD under Section 221(d)(4) of the National Housing Act (HUD Loan). The HUD Loan is evidenced by a promissory note and is secured by property and equipment. The HUD Loan has a rehabilitation term of 14 months and a permanent term of 40 years. Interest accrues at 4.8% per year plus a mortgage insurance premium of 0.25%. Monthly installments of interest only are due and payable during the rehabilitation period. Beginning January 1, 2020 monthly installments of principal and interest are due and payable in an amount sufficient to fully amortize the HUD Loan over the remaining term ($42,170 pursuant to the promissory note). The HUD loan matures December 1, 2059, at which time any unpaid principal and interest is due and payable. Pursuant to the terms of the HUD Loan agreement, the principal balance may not be prepaid prior to January 1, 2020. Prepayments made after January 1, 2020 through December 1, 2030 are subject to prepayment premiums. As of December 31, 2019 and 2018, outstanding principal on the HUD Loan was $3,377,517 and $899,726, respectively, (excluding unamortized debt issuance costs of $320,266 as of December 31, 2019 and $321,658 as of December 31, 2018). For the year ended December 31, 2019 and for the period October 23, 2018 to December 31, 2018, Sooner Haven incurred interest of $69,599 and $8,158, respectively, on the HUD Loan, which has been capitalized and included in construction in progress (Note 5). As of December 31, 2019 and 2018, accrued interest on the HUD Loan was $11,711 and $0, respectively. On October 1, 2018, Sooner Haven entered into a loan agreement in the principal sum of $5,400,000 with CEC (the “Seller Loan”) (Note 8). The Seller Loan is evidenced by a promissory note and secured by the property and equipment. The Seller Loan accrues interest at a fixed rate of 3.06% per year, compounded annually. The Seller Loan matures December 1, 2059, at which time unpaid principal and interest is due and payable. The Seller Loan is payable from surplus cash, as defined in the operating agreement, and represents the second mortgage on the property. Sooner Haven has the option at any time to prepay all or any portion of the entire unpaid principal balance of the Seller Loan and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, outstanding principal on the Seller Loan was $5,400,000. For the year ended December 31, 2019 and for the period beginning October 23, 2018 and ending December 31, 2018, interest expense was $165,240 and $41,310, respectively. As of December 31, 2019 and 2018, accrued interest on the Seller Loan was $206,550 and $41,310, respectively. In connection with the Seller Loan, CEC, as landlord, and Sooner Haven executed a ground lease agreement (Note 9). The principal sum of the Seller Loan represents amounts owed by Sooner Haven to CEC under the Ground Lease and the bill of sale for Sooner Haven’s acquisition of the improvements of the project. On October 1, 2018, Sooner Haven entered into a loan agreement in the principal sum of $2,551,022 with the Authority (the “OCHA Loan”). The OCHA Loan is evidenced by a promissory note and secured by the property and equipment. The OCHA Loan accrues interest at a fixed rate of 2% per year, compounded annually. The OCHA Loan matures December 1, 2059, at which time any outstanding principal and interest is due and payable. The OCHA Loan is payable from surplus cash, as defined in the operating agreement, and represents the third mortgage on the property. Sooner Haven has the option at any time to prepay all or any portion of the entire unpaid principal balance of the OCHA Loan and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, outstanding principal on the OCHA Loan (Note 8) was $2,551,022 and $0, respectively. For the year ended December 31, 2019 and for the period October 23, 2018 to December 31, 2018, Sooner Haven incurred interest of $32,635 and $0, respectively, on the OCHA Loan, which has been capitalized and included in construction in progress (Note 5). As of December 31, 2019 and 2018, accrued interest on the OCHA Loan was $32,635 and $0, respectively.

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Activity in long‐term debt for the discretely presented component units is as follows for the years ended December 31, 2019 and 2018:

Balance Balance Due Within12/31/2018 Increases Decreases 12/31/2019 One Year

Bonds payable 28,149,539$ 124,547$ (18,092)$ 28,255,994$ 105,028$ Notes payable 5,978,068 5,030,205 ‐ 11,008,273 28,205

34,127,607$ 5,154,752$ (18,092)$ 39,264,267$ 133,233$


Bonds payable 16,000,000$ 12,149,539$ ‐$ 28,149,539$ 25,210$

Notes payable ‐ 5,978,068 ‐ 5,978,068 ‐

16,000,000$ 18,127,607$ ‐$ 34,127,607$ 25,210$

The estimated debt requirements to maturity as of December 31, 2019 are as follows:

Amount

2020 133,233$ 2021 12,642,111 2022 151,090 2023 160,648 2024 170,368

Thereafter 26,006,817

39,264,267$

Year ended December 31,

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Note 7 ‐ Compensated Absences Activity in compensated absences is as follows for the years ended December 31, 2019 and 2018:

Balance Balance Current12/31/2018 Increases Decreases 12/31/2019 Portion

Compensated absences 1,094,728$ 190,310$ (124,777)$ 1,160,261$ 172,528$

Balance Balance Current

12/31/2017 Increases Decreases 12/31/2018 Portion

Compensated absences 1,080,688$ 188,651$ (174,611)$ 1,094,728$ 112,719$

Note 8 ‐ Related Party Transactions Developer Fees The Authority, through CEC, has entered into a development service agreement in the amount of $1,900,000 in connection with the development and construction of JHJ, LP. No developer fees were earned form JHJ, LP during 2019 and 2018. Remaining developer fees of $1,709,000 are expected to be earned and received upon meeting certain criteria as specified in the agreement. The Authority, through CEC, has entered into a development service agreement in the amount of $1,250,000 in connection with the development and construction of Sooner Haven, LLC. No developer fees were earned from Sooner Haven, LLC in 2019. During 2018, CEC earned $625,000 in developer fees, of which $125,000 was received. As of December 31, 2019 and 2018, CEC is owed $500,000 for developer fees earned and unpaid. The remaining developer fees of $625,000 are expected to be earned and received upon meeting certain criteria as specified in the agreement. Notes Receivable, Interest Receivable, Interest Income, and Sale of Capital Assets During 2018, CEC sold capital assets with a carrying value of $832,010 to Sooner Haven, LLC for $4,800,000. CEC recognized a gain on sale in the amount of $3,967,990 in 2018. The sale was financed with a $5,400,000 promissory note (Note 6). The note receivable is secured by the capital assets. Interest on the note accrues at a fixed rate of 3.06% per year, compounded annually. Principal and interest payments on the note receivable are based on surplus cash, as defined in the operating agreement for Sooner Haven, LLC. Any unpaid principal and interest is due at maturity, December 1, 2059. Sooner Haven, LLC has the option at any time to prepay all or any portion of the entire unpaid principal balance of the note payable and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, the outstanding principal balance of the note receivable was $5,400,000. For the year ended December 31, 2019 and for the period beginning October 23, 2018 and ending December 31, 2018, CEC earned interest income of $165,240 and $41,310, respectively, on the note receivable. As of December 31, 2019 and 2018, CEC was owed accrued interest $206,550 and $41,310, respectively, on the note receivable.

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On October 1, 2018, Sooner Haven entered into a loan agreement in the principal sum of $2,551,022 with the Authority (the “OCHA Loan”). The OCHA Loan is evidenced by a promissory note and secured by the property and equipment. The OCHA Loan accrues interest at a fixed rate of 2% per year, compounded annually. The OCHA Loan matures December 1, 2059, at which time any outstanding principal and interest is due and payable. The OCHA Loan is payable from surplus cash, as defined in the operating agreement, and represents the third mortgage on the property. Sooner Haven has the option at any time to prepay all or any portion of the entire unpaid principal balance of the OCHA Loan and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, the outstanding principal balance of the note receivable was $2,551,022 and $0, respectively (Note 6). For the year ended December 31, 2019 and for the period beginning October 23, 2018 and ending December 31, 2018, CEC earned interest income of $32,635 and $0, respectively, on the note receivable. As of December 31, 2019 and 2018, CEC was owed accrued interest $32,635 and $0, respectively, on the note receivable. Due from Related Parties As of December 31, 2019 and 2018, Sooner Haven, LLC owed $25,157 and $27,003, respectively, to the Authority for property management fees, disbursements related to Sooner Haven, LLC’s operations, and other advances. The advances bear no interest, are unsecured, and are due upon demand. Due to Related Parties As of December 31, 2019 and 2018, CEC owed Sooner Haven, LLC $26,841 and $0, respectively, for advances. The advances bear no interest, are unsecured, and are due upon demand.

Note 9 ‐ Leases The Authority, through CEC, has entered into a ground lease agreement with Oklahoma City Housing Associates, L.P., an unrelated party. The term of the lease commenced on September 20, 2017 and shall terminate 65 years after the commencement date. A single payment of $680,251 was made by Oklahoma City Housing Associates, L.P. and received by CEC on the commencement date and was recorded as unearned revenue by CEC. The unearned land lease revenue for CEC is being amortized over the 65‐year term of the lease. The Authority, through CEC, entered into a ground lease with Sooner Haven, LLC, pursuant to which Sooner Haven agreed to rehabilitate the existing property for use as a Section 8 low income housing tax credit project under the Rental Assistance Demonstration (RAD) program administered by HUD. The ground lease commenced on October 1, 2018 and will terminate 65 years after the commencement date. Sooner Haven, LLC has the option to renew the ground lease for 2 successive 10‐year periods following the lease term. The rent for the first year of the lease term is $600,000, due and payable in accordance with the terms of the Seller Loan (Note 6). Thereafter, annual rent payments of $10 are required for the remainder of the lease. The first‐year rent payment of $600,000 was recorded as unearned revenue by CEC in 2018 and is being amortized over the 65‐year term of the lease.

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The Authority, through CEC, has entered into a land lease agreement with JHJ, LP to lease the land on which the project is being built. The term of the lease commenced on September 20, 2017 and shall terminate 55 years after the commencement date. A single payment of $802,822 was made by JHJ, LP and received by CEC on the commencement date and was recorded as unearned revenue by CEC and a prepaid land lease by JHJ, LP. The unearned land lease revenue for CEC and the prepaid land lease for JHJ, LP is being amortized over the 55‐year term of the lease. As of December 31, 2019 and 2018, unearned revenue from the land leases were $2,037,108 and $1,388,225, respectively. Future amortization of the unearned land leases are as follows:

OKC Housing Sooner Haven JHJAssociates Amount Amount Total

2020 10,465$ 9,231$ 14,597$ 34,293$ 2021 10,465 9,231 14,597 34,293 2022 10,465 9,231 14,597 34,293 2023 10,465 9,231 14,597 34,293 2024 10,465 9,231 14,597 34,293 Thereafter 622,692 542,308 700,643 1,865,643

Total 675,017$ 588,463$ 773,628$ 2,037,108$

Year Ended December 31,

Note 10 ‐ Defined Contribution Pension Plan The Authority provides pension benefits for all of its full‐time employees through a contributory defined savings plan pursuant to Section 401(k) of the Internal Revenue Service Code, through the Savings Incentive Plan for employees of Oklahoma City Housing Authority. Employees are eligible to participate beginning six months from the date of employment. Participating employees may contribute up to the IRS allowable limit, and the Authority will match 100% of the employee contribution, up to a percentage of employee compensation to be determined annually by the Board of Commissioners. This percentage for 2019 and 2018 was 5%. Employee contributions to the plan vest immediately. The Authority’s contributions for each employee vest at the rate of 20% per year and are fully vested after five years of continuous service. The Authority’s contribution balances allocated to employees who leave employment before becoming fully vested can be used to reduce the Authority’s current period contribution requirement. Plan assets can be placed in various investment funds at the direction of each employee. The Authority’s contributions to the pension plan were approximately $344,100 and $343,600 in 2019 and 2018, respectively.

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Note 11 ‐ Commitments and Contingencies The Authority is a defendant in several claims and lawsuits; however, Authority management is of the opinion that the ultimate outcome of all litigation will not have a material effect on the future operations or financial position of the Authority. The activities of the Authority and CEC are currently funded in large part by the Federal Government and future operations of the Authority and CEC are reliant on continuation of this funding from the Federal Government. Amounts received or receivable from HUD are subject to audit and adjustment by HUD. Any disallowed expenses may constitute a liability of the Authority. The amount of expenses which may be disallowed by HUD, if any, cannot be determined at this time, although the Authority expects such amounts to be immaterial. As the general partner in JHJ, LP, CEC has certain rights and obligations under the partnership agreement, including guarantees relating to operating and construction guarantees. As the managing member in Sooner Haven, LLC, CEC has certain rights and obligations under the operating agreement, including guarantees relating to operating and construction guarantees.

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Note 12 ‐ Condensed Blended Component Unit Information Condensed blended component unit financial information for CEC as of and for the years ended December 31, 2019 and 2018 is as follows: Condensed Statements of Net Position

2019 2018

AssetsCurrent assets 2,840,303$ 4,072,586$ Capital assets, net 9,635,212 8,512,634 Other assets 6,317,634 6,275,349

Total assets 18,793,149$ 18,860,569$

LiabilitiesDue to OCHA 130,892$ 468,711$ Current liabilities ‐ other 689,863 199,217 Noncurrent liabilities 5,735,500 4,613,872


Net PositionUnrestricted 6,334,367 8,306,379 Restricted ‐ ‐ Net investment in capital assets 5,902,527 5,272,390



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Condensed Statements of Revenues, Expenses and Changes in Net Position

2019 2018

Operating RevenuesHUD and other operating grants 698,993$ 872,986$ Net tenant rental revenue 548,310 330,461 Other 33,442 2,463,510


Operating ExpensesDepreciation 471,219 213,295 Other 1,703,320 1,399,435


Net Operating Loss (893,794) 2,054,227

Nonoperating RevenueOther (448,081) 3,944,376

Total nonoperating revenue (448,081) 3,944,376

Transfers from the Primary Government ‐ 1,021,297

Change in Net Position (1,341,875) 7,019,900



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Condensed Statement of Cash Flows

2019 2018

Net Cash from Operating Activities 121,161$ 1,635,456$

Net Cash used for Capital and Related Financing Activities (842,385) (303,083)

Net Cash (used for) from Investing Activities (634,799) 187,786

Net Change in Cash and Cash Equivalents (1,356,023) 1,520,159



Note 13 ‐ Correction of Error The 2018 financial statements have been restated to correct errors in the recording of capital assets and accounts payable. As a result of the restatement, the following changes were made to the financial statements.

As Previously

Reported Adjustment As Restated

Statement of Net Position, December 31, 2018

Capital Assets

Non‐depreciable 11,126,853$ (1,384,551)$ 12,511,404$

Total capital assets 63,551,128 (1,384,551) 64,935,679

Total Assets 88,438,879 (1,384,551) 89,823,430

Accounts Payable

Construction 521,054 (1,384,551) 1,905,605

Total Current Liabilities 4,058,553 (1,384,551) 5,443,104

Total Liabilities 13,350,665 (1,384,551) 14,735,216

Total Liabilities and Net Position 88,438,879 (1,384,551) 89,823,430

Statement of Cash Flows, December 31, 2018

Supplemental Schedule of Noncash Capital and Related Financing Activities

Increase in capital assets from

accounts payable ‐ construction 521,054$ (1,384,551)$ 1,905,605$

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Supplementary Information December 31, 2019 and 2018



See Notes to Schedule of Expenditures of Federal Awards 40

Oklahoma City Housing Authority Schedule of Expenditures of Federal Awards


Pass‐throughFederal EntityCFDA Identifying

Federal Grantor/Program Title Number Number Expenditures

U.S. Department of Housing and Urban Development

Expended Directly by the Authority

Public and Indian Housing 14.850 11,345,960$

Public Housing Capital Fund 14.872 4,274,885

Section 8 Moderate Rehabilitation Single Room Occupancy 14.249 >A 27,178

Section 8 Housing Choice Vouchers 14.871 26,637,905

Family Self‐Sufficiency Program 14.896 29,084

Supportive Housing for Persons With Disabilities 14.181 287,732

Resident Opportunity and Supportive Services 14.870 51,974

Community Development Block Grants/Entitlement Grants(Passed through the City of Oklahoma City) 14.218 Not available 293,463

Total Expended directly by the Authority 42,948,181

Expended Directly by CEC

Section 8 Housing Assistance Payments Program 14.195 >A 605,550

Supportive Housing Program(Passed through the City of Oklahoma City) 14.235 61L61021607 43,443

Total Expended directly by CEC 648,993

Total U.S. Department of Housing and Urban Development 43,597,174

U.S. Department of Health and Human Services

CEC ‐ Block Grants for Prevention and Treatment of SubstanceAbuse (Passed through the Oklahoma Department of Mental Health and Substance Abuse Services 93.959 4529055021 50,000

Total U.S. Department of Health and Human Services 50,000

Total Expenditures of Federal Awards 43,647,174$

A> Section 8 Project‐Based Cluster, total $632,728

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Oklahoma City Housing Authority Notes to Schedule of Expenditures of Federal Awards


Note 1 ‐ Basis of Presentation The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal award activity of the Oklahoma City Housing Authority, including its component unit, Community Enhancement Corporation (the Authority), under programs of the federal government for the year ended December 31, 2019. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the Authority, it is not intended to and does not present the financial position, changes in net position, or cash flows of the Authority.

Note 2 ‐ Summary of Significant Accounting Policies Expenditures reported in the Schedule are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowed or are limited as to reimbursement. No federal financial assistance has been provided to subrecipients.

Note 3 ‐ Indirect Cost Rate The Authority has not elected to use the 10% de minimis cost rate and does not draw for indirect administrative expenses.

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Oklahoma City Housing Authority Combining Statement of Net Position

December 31, 2019

Oklahoma Community Total

City Housing Enhancement PrimaryAuthority Corporation Eliminations Government

Assets


Unrestricted 3,573,229$ 1,963,322$ ‐$ 5,536,551$ Restricted ‐ tenant security deposits 495,435 30,985 ‐ 526,420 Restricted ‐ other 90,948 ‐ ‐ 90,948

Total cash and cash equivalents 4,159,612 1,994,307 ‐ 6,153,919

Investments ‐ unrestricted 2,500,000 ‐ ‐ 2,500,000 Accounts receivable

Tenants, net of allowance for doubtful accountsof $77,209 and $11,553, respectively 26,229 14,138 ‐ 40,367

Intergovernmental 395,240 3,152 ‐ 398,392 Interest 32,635 206,550 ‐ 239,185 Developer fees ‐ 500,000 ‐ 500,000 Other 430,307 18,189 (130,892) 317,604

Prepaid expenses and other assets 912,797 94,476 ‐ 1,007,273 Prepaid land lease, current portion ‐ ‐ ‐ ‐ Inventory 138,572 9,491 ‐ 148,063

Total current assets 8,595,392 2,840,303 (130,892) 11,304,803

Capital AssetsNon‐depreciable 4,569,939 3,426,603 ‐ 7,996,542 Depreciable, net 50,670,681 6,208,609 ‐ 56,879,290

Total capital assets 55,240,620 9,635,212 ‐ 64,875,832

Other AssetsPrepaid land lease, noncurrent portion ‐ ‐ ‐ ‐ Other assets ‐ ‐ ‐ ‐ Notes receivable 3,301,022 5,400,000 (750,000) 7,951,022 Investment in future developments ‐ 917,634 ‐ 917,634

Total other assets 3,301,022 6,317,634 (750,000) 8,868,656

Total Assets 67,137,034$ 18,793,149$ (880,892)$ 85,049,291$

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December 31, 2019




Current LiabilitiesCurrent maturities of long‐term debt 781,752$ ‐$ ‐$ 781,752$ Accounts payable

Trade 610,197 252,647 ‐ 862,844 Intergovernmental 511,966 130,892 (130,892) 511,966 Construction ‐ 314,573 ‐ 314,573 Developer fee payable ‐ ‐ ‐ ‐ Due to primary government ‐ ‐ ‐ ‐

Accrued liabilitiesSalaries, wages, and payroll taxes 397,171 16,269 ‐ 413,440 Compensated absences, current portion 156,791 15,737 ‐ 172,528 Accrued interest 21,274 ‐ ‐ 21,274 Other 518,812 14,504 ‐ 533,316

Tenant security deposits payable 495,435 30,985 ‐ 526,420 Unearned land lease revenue, current portion ‐ 34,293 ‐ 34,293 Unearned revenue 40,122 10,855 ‐ 50,977

Total current liabilities 3,533,520 820,755 (130,892) 4,223,383

Long‐Term DebtNotes payable 3,604,701 3,732,685 (750,000) 6,587,386 Bonds payable ‐ ‐ ‐ ‐

Total long‐term debt 3,604,701 3,732,685 (750,000) 6,587,386

Compensated Absences, Non‐Current 987,733 ‐ ‐ 987,733

Deferred Land Lease, Non‐Current ‐ 2,002,815 ‐ 2,002,815

Other Non‐Current Liabilities ‐ ‐ ‐ ‐

Total liabilities 8,125,954 6,556,255 (880,892) 13,801,317

Net PositionUnrestricted 8,156,913 6,334,367 ‐ 14,491,280 Restricted ‐ ‐ ‐ ‐ Net investment in capital assets 50,854,167 5,902,527 ‐ 56,756,694

Total net position 59,011,080 12,236,894 ‐ 71,247,974

Total Liabilities and Net Position 67,137,034$ 18,793,149$ (880,892)$ 85,049,291$

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December 31, 2018



Assets


Unrestricted 7,641,907$ 3,319,428$ ‐$ 10,961,335$ Restricted ‐ tenant security deposits 485,854 30,902 ‐ 516,756 Restricted ‐ other 939,334 ‐ ‐ 939,334

Total cash and cash equivalents 9,067,095 3,350,330 ‐ 12,417,425

Investments ‐ unrestricted 3,970,000 ‐ ‐ 3,970,000 Accounts receivable

Tenants, net of allowance for doubtfulaccounts of $36,609 45,082 2,121 ‐ 47,203

Intergovernmental 287,248 26,376 (143,371) 170,253 Interest 1,340 41,310 ‐ 42,650 Developer fees ‐ 500,000 ‐ 500,000 Other 605,833 21,712 (468,711) 158,834

Prepaid expenses and other assets 931,639 118,642 ‐ 1,050,281 Prepaid land lease, current portion ‐ ‐ ‐ ‐ Inventory 243,661 12,095 ‐ 255,756

Total current assets 15,151,898 4,072,586 (612,082) 18,612,402

Capital AssetsNon‐depreciable 10,578,835 1,932,569 ‐ 12,511,404 Depreciable, net 45,844,210 6,580,065 ‐ 52,424,275

Total capital assets 56,423,045 8,512,634 ‐ 64,935,679

Other AssetsPrepaid land lease, noncurrent portion ‐ ‐ ‐ ‐ Other assets ‐ ‐ ‐ ‐ Notes receivable 750,000 5,400,000 (750,000) 5,400,000 Investment in future developments ‐ 875,349 ‐ 875,349

Total other assets 750,000 6,275,349 (750,000) 6,275,349

Total Assets 72,324,943$ 18,860,569$ (1,362,082)$ 89,823,430$

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December 31, 2018




Current LiabilitiesCurrent maturities of long‐term debt 737,665$ ‐$ ‐$ 737,665$ Accounts payable

Trade 533,385 101,384 ‐ 634,769 Intergovernmental 118,418 ‐ ‐ 118,418 Construction 1,905,605 ‐ ‐ 1,905,605 Developer fee payable ‐ ‐ ‐ ‐ Due to primary government ‐ 468,711 (468,711) ‐

Accrued liabilities ‐ Salaries, wages, and payroll taxes 693,716 1,011 ‐ 694,727 Compensated absences, current portion 112,719 ‐ ‐ 112,719 Interest 24,852 34,795 ‐ 59,647 Other 535,788 11,805 ‐ 547,593

Tenant security deposits payable 485,854 30,902 ‐ 516,756 Unearned land lease revenue, current portion ‐ 14,597 ‐ 14,597 Unearned revenue 239,256 4,723 (143,371) 100,608

Total current liabilities 5,387,258 667,928 (612,082) 5,443,104

Long‐Term DebtNotes payable 4,386,451 3,240,244 (750,000) 6,876,695 Bonds payable ‐ ‐ ‐ ‐

Total long‐term debt 4,386,451 3,240,244 (750,000) 6,876,695

Compensated Absences, Non‐Current 982,009 ‐ ‐ 982,009

Deferred Land Lease, Non‐Current ‐ 1,373,628 ‐ 1,373,628

Other Non‐Current Liabilities 59,780 ‐ ‐ 59,780

Total liabilities 10,815,498 5,281,800 (1,362,082) 14,735,216

Net PositionUnrestricted 11,236,567 8,306,379 ‐ 19,542,946 Restricted 879,554 ‐ ‐ 879,554 Net investment in capital assets 49,393,324 5,272,390 ‐ 54,665,714

Total net position 61,509,445 13,578,769 ‐ 75,088,214

Total Liabilities and Net Position 72,324,943$ 18,860,569$ (1,362,082)$ 89,823,430$

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Oklahoma City Housing Authority Combining Statement of Revenues, Expenses and Changes in Net Position

December 31, 2019



Operating RevenuesDirect HUD contributions and grants Public housing operating subsidies 11,345,960$ ‐$ ‐$ 11,345,960$ Public housing modernization 1,716,118 ‐ ‐ 1,716,118 Section 8 grants and subsidies

Vouchers 26,959,678 ‐ ‐ 26,959,678 Family Self Sufficiency 29,084 ‐ ‐ 29,084 Section 8 ‐ Other (5,688) 605,550 ‐ 599,862 Other 93,443 ‐ 93,443

Other governmental grants 370,437 ‐ ‐ 370,437 Tenant rental revenue 5,810,085 518,873 ‐ 6,328,958 Other tenant revenue 483,848 29,437 ‐ 513,285 Developer fees ‐ ‐ ‐ Other operating revenue 293,684 33,442 (82,816) 244,310

Total operating revenues 47,003,206 1,280,745 (82,816) 48,201,135

Operating ExpensesHousing assistance payments 25,598,109 ‐ ‐ 25,598,109 Administrative services 5,128,849 286,872 ‐ 5,415,721 Tenant services 2,161,966 219,746 ‐ 2,381,712 Utilities 2,085,377 242,229 ‐ 2,327,606 Ordinary maintenance and operations 9,469,327 704,321 ‐ 10,173,648 Protective services 1,814,340 42,623 ‐ 1,856,963 Insurance 1,162,491 57,567 ‐ 1,220,058 Bad debts 385,204 41,069 ‐ 426,273 Payment in lieu of taxes 230,049 6,635 ‐ 236,684 Other general 84,283 19,442 ‐ 103,725 Management fees ‐ 82,816 (82,816) ‐ Depreciation 3,940,673 471,219 ‐ 4,411,892

Total operating expenses 52,060,668 2,174,539 (82,816) 54,152,391

Operating Income (Loss) (5,057,462) (893,794) ‐ (5,951,256)

Nonoperating Revenue (Expense)Investment income 66,931 ‐ ‐ 66,931 Interest income 32,635 165,240 ‐ 197,875 Interest expense (137,533) (117,375) ‐ (254,908) Other income (expense) ‐ ‐ ‐ ‐ Predevelopment expenses ‐ (592,514) ‐ (592,514) Donations of real property ‐ 96,568 ‐ 96,568 Gain on disposition of capital assets 38,297 ‐ ‐ 38,297

Total nonoperating revenue (expense) 330 (448,081) ‐ (447,751)

Change in Net Position Before Capital Grantsand Equity Contributions (5,057,132) (1,341,875) ‐ (6,399,007)

HUD capital grants 2,558,767 ‐ ‐ 2,558,767 Transfers ‐ ‐ ‐ ‐ Equity contributions ‐ ‐ ‐ ‐

Change in Net Position (2,498,365) (1,341,875) ‐ (3,840,240)

Net Position, Beginning of Year 61,509,445 13,578,769 ‐ 75,088,214

Net Position, End of Year 59,011,080$ 12,236,894$ ‐$ 71,247,974$

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Oklahoma City Housing Authority Combining Statement of Revenues, Expenses and Changes in Net Position

December 31, 2018



Operating RevenuesDirect HUD contributions and grants Public housing operating subsidies 11,391,281$ ‐$ ‐$ 11,391,281$ Public housing modernization 1,792,681 ‐ ‐ 1,792,681 Section 8 grants and subsidies

Vouchers 28,498,386 ‐ ‐ 28,498,386 Family Self Sufficiency 38,243 ‐ ‐ 38,243 Section 8 ‐ Other 65,441 736,713 ‐ 802,154 Other (5,107) 136,273 ‐ 131,166

Other governmental grants 50,000 ‐ ‐ 50,000 Tenant rental revenue 6,179,942 330,461 ‐ 6,510,403 Other tenant revenue 386,145 ‐ ‐ 386,145 Developer fees ‐ 625,000 625,000 Other operating revenue 222,784 1,838,510 (114,150) 1,947,144

Total operating revenues 48,619,796 3,666,957 (114,150) 52,172,603

Operating ExpensesHousing assistance payments 25,557,664 ‐ ‐ 25,557,664 Administrative services 5,628,226 144,222 ‐ 5,772,448 Tenant services 1,975,083 186,774 ‐ 2,161,857 Utilities 2,205,149 239,925 ‐ 2,445,074 Ordinary maintenance and operations 7,992,823 509,948 ‐ 8,502,771 Protective services 1,978,642 112,398 ‐ 2,091,040 Insurance 1,125,009 75,359 ‐ 1,200,368 Bad debts 337,218 15,799 ‐ 353,017 Payment in lieu of taxes 209,494 ‐ ‐ 209,494 Other general 100,460 860 ‐ 101,320 Management fees ‐ 114,150 (114,150) ‐ Depreciation 3,608,892 213,295 ‐ 3,822,187

Total operating expenses 50,718,660 1,612,730 (114,150) 52,217,240

Operating Income (Loss) (2,098,864) 2,054,227 ‐ (44,637)

Nonoperating Revenue (Expense)Investment income 81,028 ‐ ‐ 81,028 Interest income ‐ 41,310 ‐ 41,310 Interest expense (158,431) (67,801) ‐ (226,232) Gain on disposition of capital assets 28,279 3,970,867 ‐ 3,999,146

Total nonoperating revenue (expense) (49,124) 3,944,376 ‐ 3,895,252

Change in Net Position Before Capital Grantsand Equity Contributions (2,147,988) 5,998,603 ‐ 3,850,615

HUD capital grants 1,908,373 ‐ ‐ 1,908,373 Transfers (1,021,297) 1,021,297 ‐ ‐ Equity contributions ‐ ‐ ‐ ‐

Change in Net Position (1,260,912) 7,019,900 ‐ 5,758,988

Net Position, Beginning of Year 62,770,357 6,558,869 ‐ 69,329,226

Net Position, End of Year 61,509,445$ 13,578,769$ ‐$ 75,088,214$

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Other Information December 31, 2019 and 2018



48

Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government

Auditing Standards To the Board of Commissioners Oklahoma City Housing Authority Oklahoma City, Oklahoma We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the business‐type activities and the aggregate discretely presented component units of the Oklahoma City Housing Authority (the Authority), which comprise the statement of net position as of December 31, 2019, and the related statements of revenues, expenses and changes in net position, and cash flows, where applicable, for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated March 17, 2021. We did not audit the financial statements of Sooner Haven, LLC. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered the Authority’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Authority's internal control. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and questioned costs, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and questioned costs as finding 2019‐001 to be a material weakness.



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A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and responses as item 2019‐002 to be a significant deficiency. Compliance and Other Matters As part of obtaining reasonable assurance about whether the Authority’s financial statements are free from material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Entity’s Responses to Findings The Authority’s responses to the findings identified in our audit are described in the accompanying schedule of findings and questioned costs. The Authority’s responses were not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on them. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Authority’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Authority’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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50

Independent Auditor’s Report on Compliance for Each Major Federal Program; Report on Internal Control Over Compliance Required by the Uniform Guidance

To the Board of Commissioners Oklahoma City Housing Authority Oklahoma City, Oklahoma Report on Compliance for Each Major Federal Program We have audited the compliance of the Oklahoma City Housing Authority, including the aggregate discretely presented component units, (the Authority) with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on the Authority's major federal programs for the year ended December 31, 2019. The Authority’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. Management’s Responsibility The Authority’s management is responsible for compliance with federal statutes, regulations, and the terms and conditions of its federal awards applicable to its federal programs. Auditor’s Responsibility Our responsibility is to express an opinion on compliance for the Authority’s major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about the Authority’s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for the major federal program. However, our audit does not provide a legal determination on the Authority’s compliance.



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Opinion on Each Major Federal Program In our opinion, the Authority complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on its major federal programs for the year ended December 31, 2019. Report on Internal Control over Compliance Management of the Authority is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Authority’s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing our opinion on compliance for each major federal program and to test and report on the internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Authority's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a compliance requirement will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, we identified a certain deficiency in internal control over compliance, described in the accompanying schedule of findings and questioned costs as item 2019‐003 that we consider to be a significant deficiency.

The Authority’s response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and questioned costs. The Authority’s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response.

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The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.


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Oklahoma City Housing Authority Schedule of Findings and Questioned Costs


Section I – Summary of Auditor’s Results

Financial Statements Type of independent auditors’ report issued: Unmodified Internal control over financial reporting: Material weakness identified? Yes Significant deficiencies identified not considered to be material weakness? Yes Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weakness identified? No Significant deficiencies identified not considered to be material weakness? Yes Type of auditors’ report issued on compliance for major federal programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with Uniform Guidance 2 CFR 200.516? Yes Identification of Major Federal Programs Name of Federal Program CFDA Number Section 8 Housing Choice Vouchers 14.871 Dollar threshold used to distinguish between Type A and Type B Programs: $1,309,415 Auditee qualified as low‐risk auditee? No

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December 31, 2019

Section II – Financial Statement Findings

2019‐001 Adjusting Journal Entries, Preparation of Financial Statements, Preparation of the SEFA, and

Account Reconciliations

Material Weakness in Internal Control over Financial Reporting

Criteria: A good system of internal control contemplates an adequate system for recording and processing adjusting journal entries significant to the financial statements and internally preparing the Authority’s financial statements, accompanying notes to the financial statements, and the schedule of expenditures of federal awards.

Condition: As part of our audit, we proposed material audit adjustments to the financial statements and to the schedule of expenditures of federal awards that were not detected by management.

Cause: Failure to properly reconcile general ledger accounts to subsidiary records and posting all transactions and entries prior to the audit. Effect: The control deficiency could result in a misstatement to the financial statements that would not be prevented or detected.

Recommendation: We recommend that all necessary adjustments and transactions are recorded by management prior to our audit.

View of Responsible Officials: Management agrees with the finding.

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December 31, 2019

2019‐002 Journal Entries Significant Deficiency in Internal Control over Financial Reporting

Criteria: A good system of internal control restricts activities and access to technology to authorized users commensurate with their job responsibilities and to protect the organization’s assets.

Condition: During our audit, we inquired of accounting staff who indicated that there are no restrictions on who can initiate and post journal entries in the general ledger.

Cause: Due an oversight by management.

Effect: Improper journal entries could be posted, which could lead to errors in the financial statements or misappropriation of assets.

Recommendation: We recommend that the Authority review their IT controls and restrict access to only those individuals authorized to initiate journal entries.


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December 31, 2019

Section III – Federal Award Findings and Questioned Costs

2019‐003 U. S. Department of Housing and Urban Development – CFDA #14.871 Section 8 Housing Choice Vouchers Applicable Federal Award Number and Year – Housing Choice Vouchers – 2019

Special Tests and Provisions – HQS Enforcement Significant Deficiency in Internal Control over Compliance

Criteria: For units under the HAP contract that fail to meet HQS, the Authority must require the owner to correct any life threatening HQS deficiencies within 24 hours after the inspections and all other HQS deficiencies within 30 calendar days or within a specified PHA‐approved extension.

Condition: Of the 65 failed HQS inspections we tested, 64 of the inspections were completed later than 30 days and the Authority was not able to provide documentation of an extension. None of the inspections were completed later than 60 days.

Cause: Lack of internal controls over failed inspections.

Effect: The Authority is not in compliance with program requirements. Questioned Costs: N/A

Context/Sampling: N/A Repeat Finding from Prior Year: No

Recommendation: The Authority should implement processes to ensure all failed inspections are completed timely and there is proper documentation of approved extensions.


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1

March 17, 2021

To the Audit Committee Oklahoma City Housing Authority Oklahoma City, OK

We have audited the financial statements of the Oklahoma City Housing Authority (the Authority) as of and for the year ended December 31, 2019, and have issued our report thereon dated March 17, 2021. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our letter dated December 3, 2018, our responsibility, as described by professional standards, is to form and express an opinion about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of your respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of the Authority solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.



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Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and our firm have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by the Authority is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2019. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments.

There were no estimates affecting the financial statements that are considered significant estimates.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the Authority’s financial statements relate to:

Note 6 – Long‐Term Debt – Includes the disclosure of future debt services to of the Authority,which is based upon current amortization schedules of expected debt service, as well as thedetail of long‐term debt of CEC and its discretely presented component units including futurematurities for cash flow, interest rate, due date, and security.

Note 8 – Related Party Transactions – includes the detail of transactions conducted with relatedparties.

Note 9 ‐ Leases – includes the details of the leases that CEC has entered into with Oklahoma CityHousing Associates, LP, Sooner Haven, LLC, and JHJ, LP.

Note 11 – Commitments and Contingencies – includes the detail of various commitments andcontingencies of the Authority and its component units.

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Significant Difficulties Encountered during the Audit

Although we received full cooperation from management and believe that we were given direct and unrestricted access to the Authority’s staff and management, we experienced significant difficulties in performing and completing the audit due to the failure of the Authority's accounting personnel to provide the requested audit schedules accurately and timely to us, as well as timely responding to our inquiries. The failure to provide us the needed information accurately and timely resulted in major delays and additional audit time.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit.

The misstatements that we identified as a result of our audit procedures are summarized on the attached schedule and were brought to the attention of, and corrected by, management:

The following summarizes uncorrected financial statement misstatements, whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole.

‐ Overstatement of payroll expenses due to an understatement in the prior year ‐$54,994 ‐ Overstatement of payroll expenses and understatement of accounts receivable from CEC ‐

$52,895

The effect of these uncorrected misstatements as of and for the year ended December 31, 2019 is an overstatement of payroll expenses for $107,889, an understatement of accounts receivable for $52,895, an understatement of the change in net position for $107,889, and an understatement of net position for $52,895.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the Authority’s financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management which are included in the management representation letter dated March 17, 2021.

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Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with the Authority, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as the Authority’s auditors.

Our responsibility also includes communicating to you any information which we believe is a material misstatement of fact. Nothing came to our attention that caused us to believe that such information, or its manner of presentation, is materially inconsistent with the information, or manner of its presentation, appearing in the financial statements.

The financial statements include the financial statements of the Authority and CEC, a blended component unit of the Authority, as well as John H Johnson ALF, LP and Sonner Haven LC, discretely presented component units of CEC, which we considered to be significant components of the financial statements. Consistent with the audit of the financial statements as a whole, our audit included obtaining an understanding of the Authority and CEC and their environment, including internal control, sufficient to assess the risks of material misstatement of the financial statements of the Authority and CEC and completion of further audit procedures.

We applied certain limited procedures to Management Discussion and Analysis (“MD&A”) of the Authority and CEC, which is required supplementary information (“RSI”) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI.

We were engaged to report on Schedule of Expenditures of Federal Awards and the Financial Data Schedule for the Authority and also we were engaged to report on the supplementary information related to the operation of affordable housing projects for CEC, which accompany the financial statements of the Authority and CEC but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves.

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This report is intended solely for the information and use of the Authority’s Board of Commissioners and management of the Authority and is not intended to be and should not be used by anyone other than these specified parties.

Bismarck, North Dakota

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3/18/20212:07 PM

Client: 146775 - Oklahoma City Housing Authority

Engagement: AA 19 - Oklahoma City Housing Authority

Period Ending: 12/31/2019

Trial Balance: 3.00 - OCHA TB

Workpaper: 1a.01 - OCHA AU 260 Letter Attachment

Account Description W/P Ref Debit Credit

3.00

SH-1122-00-000 A/R - Tenants 12,506.00

SH-1122-10-000 Allowance for Doubtful Accounts - Tenants 15,350.00

SH-1260-10-000 Materials Inventory 41,887.00

SH-2111-10-000 A/P - Vendors & Contractors 7,707.00

SH-2114-20-000 Security Deposit Clearing 225.00

SH-2137-00-000 Accrued PILOT 3,035.00

SH-2290-01-000 Deferred Retro Rents 7,848.00

SH-2290-02-000 Deferred Maintenance 94.00

SH-2290-03-000 Deferred Security Deposits 25.00

SH-3110-10-000 Dwelling Rent 10,730.00

SH-3110-20-000 Retro Rent 4,074.00

SH-3690-20-000 Tenant Damages 410.00

SH-3690-30-000 Misc Tenant Charges 1,320.00

SH-4420-14-000 Miscellaneous - Materials 4,136.00

SH-4715-05-000 URP - PH Payments 16.00

SH-1129-90-000 A/R - Misc 24,646.00

SH-1400-06-001 Land Improvements 49,950.00

SH-2114-00-000 Tenant Security Deposits 30,581.00

SH-2119-10-000 Prepaid Rent 52.00

SH-4420-01-000 Paint 1,000.00

SH-4420-03-000 Glass 20.00

SH-4420-04-000 Plumbing - Materials 1,000.00

SH-4420-05-000 Electrical Materials 1,000.00

SH-4420-06-000 Lumber & Hardware 500.00

SH-4420-07-000 Cleaning Supplies 500.00

SH-4420-08-000 Shades 100.00

SH-4420-09-000 Range & Refrigerator Supplies 14.00

Total 109,363.00 109,363.00

3.03

CFP-4800-30-198 Depr Expense - 1998 CFP 2,711.00

CFP-1400-53-198 Accum Depreciation - 1998 CFP 2,711.00

Total 2,711.00 2,711.00

A.01

AMP-1162-70-000 Savings - PH & CEC Rent 201.00

COCC-1162-60-000 Gen Fund Savings - PH 24,538.00

COCC-4190-13-000 Miscellaneous - Admin 2,319.00

AMP-1162-60-000 Gen Fund Savings - PH 201.00

COCC-1129-90-000 A/R - Misc 12,295.00

COCC-1129-90-000 A/R - Misc 11,467.00

COCC-4190-13-000 Miscellaneous - Admin 3,095.00

Total 27,058.00 27,058.00

PBC

AMP-4430-15-000 Miscellaneous - Contracts 18,887.00

AMP-1129-91-000 A/R - Ins Claims 18,887.00

Total 18,887.00 18,887.00

B.00/BB.03

CFP-1125-20-000 A/R HUD 337,712.00

CFP-3600-02-217 CFP Income - 2017 CFP 81,158.00


Total 337,712.00 337,712.00

Insurance Proceeds AR adjustment

Adjusting Journal Entries JE # 13

To adjust A/R-HUD to agree to payable

To adjust cash balance to actual - Post reconciliation items to true-up GL to bank stmt



Adjusting Journal Entries


To reduce Sooner Haven accounts to $0


CFP Depreciation Entry

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3/18/20212:07 PM

B.00

COCC-1129-93-000 N/R - Sooner Haven (Rehab) 66,662.00

COCC-1129-94-000EB N/R - Yorktown 750,000.00

COCC-1145-10-000 Accrued Interest Receivable 2,430.00

COCC-1129-90-000 A/R - Misc 699,293.00

COCC-2806-00-000 Ret Earnings - Undesignated Fund Balance 117,369.00

COCC-3620-00-000 Investment Income 2,430.00

Total 819,092.00 819,092.00

K.01

AMP-2806-00-000 Ret Earnings - Undesignated Fund Balance 34,175.00

AMP-3690-40-000 Misc Income - Other 34,175.00

Total 34,175.00 34,175.00

LL.00


COCC-1129-92-000 A/R - Sooner Haven 41,310.00

Total 41,310.00 41,310.00

LL.00




CFP-2806-00-000 Ret Earnings - Undesignated Fund Balance 87,559.00

Total 87,559.00 87,559.00

3.00

AMP-1400-09-001 Equipment - 7 Year 25,115.00

AMP-1400-51-000 Accum Depreciation 28,600.00

CFP-2806-00-000 Ret Earnings - Undesignated Fund Balance 97,941.00

COCC-1400-07-000 Buildings 107,116.00

AMP-2806-00-000 Ret Earnings - Undesignated Fund Balance 53,715.00

CFP-1400-06-001 Land Improvements 97,941.00

COCC-1400-51-000 Accum Depreciation 6,064.00


Total 258,772.00 258,772.00

B.01

AMP-1129-93-000EB N/R - Sooner Haven (Rehab) 2,236,882.00

AMP-1145-10-000EB Accrued Interest Receivable (Sooner Haven) 28,616.00

COCC-1129-00-104 A/R - AMP 104 2,236,882.00

COCC-3620-00-000 Investment Income 28,616.00

AMP-2119-00-300 A/P - COCC 2,236,882.00

AMP-3620-00-000 Investment Income 28,616.00

COCC-1129-93-000 N/R - Sooner Haven (Rehab) 2,236,882.00

COCC-1145-10-000 Accrued Interest Receivable 28,616.00

Total 4,530,996.00 4,530,996.00

Total Adjusting Journal Entries 6,267,635.00 6,267,635.00

Total All Journal Entries 6,267,635.00 6,267,635.00


To break-out Sooner Haven note receivable between public housing and COCC


Unrecorded PY adjustments - Correct Equity (see purple highlights on Adjustments made to PY TB workpaper)


To record note receivable from Yorktown and true-up Sooner Haven note receivable


To adjust PPE


To reverse equity adjustment made by client that was supposed to be recorded to CEC


CFP Equity adjustment

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REGULAR MEETING OF THE

BOARD OF DIRECTORS OF THE COMMUNITY ENHANCEMENT CORPORATION

TELECONFERENCE 1700 Northeast Fourth Street

Oklahoma City, Oklahoma 73117 March 24, 2021

9:00 a.m.

AGENDA

This meeting will be held by teleconference for the Board of Directors of the Community

Enhancement Corporation (CEC), as authorized by SB 1031 and the state of emergency declared by Gov. Kevin Stitt. If a member of the public wishes to participate, the meeting can be accessed

online at:

https://zoom.us/j/95006293123?pwd=S2c1ZlgyZmpkd3MxMWdlb2UyQm1JZz09 (which allows the presentations to be viewed)

or by telephone at: (301) 715-8592 Meeting number: 950 0629 3123. The CEC Directors will be appearing via teleconference, as follows: Dr. Jerry L. Steward (via teleconference) Ms. Alvah Boyd (via teleconference) Ms. Connie Mashburn (via teleconference) Ms. Lillie Swope (via teleconference)

Written materials for this meeting are available to the public at: https://cms7.revize.com/revize/ocha/BOC_Agenda_3-24-2021.pdf

If a member of the public wishes to speak under the agenda item “Citizens to be Heard,” please email [email protected] prior to the meeting time with your name, address, phone

number, and the topic on which you would like to speak. The meeting will be recorded.

1. Call to Order and Comments – Chair Jerry Steward.

2. Announcement of Filing of Meeting Notice and Posting of the Agenda in Accordance with the Oklahoma

Open Meeting Act.

3. Roll Call – Sherry Hearn, Executive Assistant

4. For Action: Approval of the Consent Docket A. Minutes of the Regular Meeting of the Board of Directors, February 24, 2021

5. For Action: Resolution No. 5-21 approving Acceptance of Audited Financial Statements for year ended

December 31, 2019. Presented by Thomas Henderson.

6. Presentation/Discussion: A. Update of development projects. Presented by Ian Colgan.

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7. Report of Legal Counsel:

A. Lawsuits

B. Legal Request

8. Citizens to be heard

9. For Action: Adjournment

It is the policy of the Community Enhancement Corporation to ensure that communications with participants and members of the public with disabilities are as effective as communications with others. Anyone with a disability who requires an accommodation, a modification of policies or procedures, or an auxiliary aid or service in order to participate in this meeting should contact the ADA department coordinator at 605-3219 as soon as possible but not later than 48 hours (not including weekends or holidays) before the scheduled meeting. The department will give primary consideration to the choice of auxiliary aid or service requested by the individual with disability. If you need an alternate format of the agenda or any information provided at said meeting, please contact the ADA department coordinator listed above 48 hours prior to the scheduled meeting.

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2/24/21 1.

MINUTES OF THE REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE

COMMUNITY ENHANCEMENT CORPORATION

February 24, 2021

The Board of Directors of the Community Enhancement Corporation met via Teleconference on Wednesday, February 24, 2021 at 9:43 a.m. Chair Steward thanked everyone for joining the teleconference meeting.

The Agenda for this meeting was filed with the Secretary of State and City Clerk for the 2021 meetings on

December 2, 2020, and amended on February 12, 2021, to advise of the change to a meeting by

teleconference. A copy of this agenda was posted at 1700 and 1800 Northeast Fourth Street on February 19,

2021, at 4:15 p.m. in accordance with Oklahoma Open Meeting Statutes, posted on the Authority general

web site www.ochanet.org as required by Section 3106.2 of Oklahoma Statute Title 74, and written notice

via the Agenda was delivered to each Commissioner on February 19, 2021.

Item 1, meeting was called to order by Chair Jerry Steward, who presided. Item 2, Announcement of Filing of Meeting Notice and Posting of the Agenda in Accordance with the Oklahoma Open Meeting Act, was announced by Sherry Hearn. Item 3, Sherry Hearn, Executive Assistant, performed roll call, those present were as follows:

PRESENT: Jerry Steward, Chair

Connie Mashburn Alvah Boyd Lillie Swope was absent.

Item 4, Consent Docket, was introduced by Chair Jerry Steward which included: Item A. Minutes of the Regular Meeting of the Board of Directors dated January 27, 2021 Motion: Boyd. Second: Mashburn. AYES: Boyd, Mashburn, Steward. NAYES: None. Item 5, Resolution No. 1-21 authorizing execution of all documents necessary and appropriate for the Bridge Loan financing with Maybry Bank for Yorktown Apartments. Chair Steward inquired what Mr. Colgan’s plan was for permanent financing. Mr. Colgan explained that the plan is to wait at least a little more than a year because having at least one year of stabilized operations would be the best time to get permanent financing. H stated that we completed construction in May of last year, leased up in July and have over 90% occupancy and that he would look for permanent financing in July 2022. . Mr. Colgan responded to additional questions from Chair Steward about how CEC shops for financing and seeks the most favorable terms Motion: Mashburn. Second: Boyd. AYES: Boyd, Mashburn, Steward. NAYES: None.

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2/24/21 2.

Item 6, Resolution No. 2-21 approving legal services agreement with Reno and Cavanaugh, PLLC and McAfee & Taft, a Professional Corporation. Mr. Colgan explained that this item was presented back in November but there needed to be some minor cleanup to the language of the contract. Motion: Boyd. Second: Mashburn. AYES: Boyd, Mashburn, Steward. NAYES: None. Item 7, Resolution No. 3-21 approving Agreement with Phillips Murrah PC for General Counsel Legal Services beginning March 1, 2021. Motion: Mashburn. Second: Boyd. AYES: Boyd, Mashburn, Steward. NAYES: None. Item 8

Item A. Ian Colgan stated that there are no substantive updates on development activity. He reported that Sooner Haven just has a couple of buildings remaining to be done and so it is almost complete.

Item 9, Report of Legal Counsel, Mathew Greeson:

Item A. There were no lawsuits. Item B. Reviewed Development Legal Counsel Agreement and Yorktown Bridge Loan.

Item 10, Citizens to be heard. There were no citizens to be heard. Item 11, Adjournment. Motion: Mashburn. Second: Boyd. AYES: Boyd, Mashburn, Steward. NAYES: None. This meeting adjourned at 9:55 a.m. The next meeting of this Board will convene at 9:00 a.m. CDST March 24, 2021 at the Oklahoma City Housing Authority Central Office, 1700 Northeast Fourth Street, Oklahoma City, Oklahoma. ______________________________ Mark W. Gillett, Secretary ATTEST: ____________________________________ Jerry L. Steward, Chair

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RESOLUTION NO. 5-21

RESOLUTION ACCEPTING AUDITED FINANCIAL STATEMENTS FOR YEAR ENDED DECEMBER 31, 2019

WHEREAS, the books and records of the Community Enhancement Corporation

are audited on an annual basis; and

WHEREAS, Eide Bailly LLP is the contracted auditing firm that performed the

audit for the year ended December 31, 2019; and

WHEREAS, as part of their audit, the auditors proposed material adjustments to

the financial statements and a significant deficiency in internal control over financial reporting,

resulting in findings; and

WHEREAS, management has prepared the required responses and corrective

action plans.

NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the

Community Enhancement Corporation that the Audited Financial Statements for the Year Ended

December 31, 2019, are accepted.


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COMMUNITY ENHANCEMENT CORPORATION

By: Jerry L. Steward, Chair

I, Mark W. Gillett, Secretary of the Board of Directors of the Community Enhancement Corporation, certify that the foregoing Resolution No. 5-21 was duly adopted at a regular meeting of the Board of Directors of the Community Enhancement Corporation, held by teleconference and accessible by phone (301) 715-8592 Meeting number: 950 0629 3123 Password: 563905 or online at https://zoom.us/j/95006293123?pwd=S2c1ZlgyZmpkd3MxMWdlb2UyQm1JZz09 the 24th day of March, 2021; that said meeting was held in accordance with the By-Laws of the Community Enhancement Corporation; that a quorum was present at all times during said meeting; and that the resolution was duly adopted by a majority of those Directors present.

Secretary


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Financial Statements December 31, 2019 and 2018



Community Enhancement Corporation Table of Contents


Independent Auditor’s Report ................................................................................................................................... 1

Management's Discussion and Analysis .................................................................................................................... 4

Financial Statements

Statement of Net Position ................................................................................................................................... 10 Statement of Revenues, Expenses and Changes in Net Position ......................................................................... 14 Statements of Cash Flows .................................................................................................................................... 16 Notes to Financial Statements ............................................................................................................................. 17

Other Information

Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards ................................................................................................................................................................. 31

Schedule of Findings and Responses ....................................................................................................................... 33

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1

Independent Auditor’s Report

To the Board of Directors Community Enhancement Corporation Oklahoma City, Oklahoma Report on the Financial Statements We have audited the accompanying financial statements of the business‐type activities and the discretely presented component units of Community Enhancement Corporation (CEC) as of and for the years ended December 31, 2019 and 2018, and the related notes to the financial statements, which collectively comprise CEC’s basic financial statements as listed in the table of contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express opinions on the financial statements based on our audits. We did not audit the financial statements of Sooner Haven, LLC, a discretely presented component unit of CEC, which represents 55% of the assets, 57% of the net position, and 100% of the revenues of the discretely presented component units as of and for the year ended December 31, 2019 and 52% of the assets, 56% of the net position, and 100% of the revenues of the discretely presented component units as of and for the year ended December 31, 2018. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for Sooner Haven, LLC is based solely on the report of the other auditors. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.



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2

An audit involves performing procedures to obtain audit evidence about the amounts and disclosure in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risk of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the business‐type activities and the discretely presented component units of CEC as of December 31, 2019 and 2018, and the respective changes in its financial position and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Management’s Discussion and Analysis Accounting principles generally accepted in the United States of America require that the management discussion and analysis on pages 4 through 9 be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the management discussion and analysis in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

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3

Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 17, 2021, on our consideration of CEC’s internal control over financial reporting and our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of CEC’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering CEC’s internal control over financial reporting and compliance.


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4

Community Enhancement Corporation Management’s Discussion and Analysis


Our discussion and analysis of Community Enhancement Corporation’s (“CEC”) financial performance provides an overview of CEC’s financial activities for the years ended December 31, 2019 and 2018. Please read it in conjunction with CEC financial statements. FINANCIAL HIGHLIGHTS 2019

Current assets decreased by $1,232,283 or 30% for the year ended December 31, 2019, from $4,072,586 at December 31, 2018 to $2,840,303 at December 31, 2019.

Capital assets, at cost, increased by $1,593,797 or 14% for the year ended December 31, 2019, from $11,254,087 at December 31, 2018 to $12,847,884 at December 31, 2019.

Other assets increased by $42,285 or 1% for the year ended December 31, 2019, from $6,275,349 at December 31, 2018 to $6,317,634 at December 31, 2019.

Long‐term liabilities increased by $1,121,628 or 24% for the year ended December 31, 2019, from $4,613,872 at December 31, 2018 to $5,735,500 at December 31, 2019.

CEC’s net position decreased by $1,341,875 or 10% for the year ended December 31, 2019, from $13,578,769 at December 31, 2018 to $12,236,894 at December 31, 2019.

Total tenant revenues (including Section 8 assistance) increased by $57,249 or 5% for the year ended December 31, 2019, from $1,067,174 for the year ended December 31, 2018 to $1,124,423 for the year ended December 31, 2019.

Nonoperating revenues decreased by $4,392,457 for the year ended December 31, 2019, from $3,944,376 for the year ended December 31, 2018 to a loss of $448,081 for the year ended December 31, 2019.

2018

Current assets increased by $2,165,394 or 114% for the year ended December 31, 2018, from $1,907,192 at December 31, 2017 to $4,072,586 at December 31, 2018.

Capital assets, at cost, increased by $3,715,883 or 49% for the year ended December 31, 2018, from $7,538,204 at December 31, 2017 to $11,254,087 at December 31, 2018.

Other assets increased by $5,212,214 or 490% for the year ended December 31, 2018, from $1,063,135 at December 31, 2017 to $6,275,349 at December 31, 2018.

Long‐term liabilities increased by $3,825,647 or 485% for the year ended December 31, 2018, from $788,225 at December 31, 2017 to $4,613,872 at December 31, 2018.

CEC’s net position increased by $7,019,900 or 107% for the year ended December 31, 2018, from $6,558,869 at December 31, 2017 to $13,578,769 at December 31, 2018.

Total tenant revenues (including Section 8 assistance) increased by $125,909 or 13% for the year ended December 31, 2018, from $941,265 for the year ended December 31, 2017 to $1,067,174 for the year ended December 31, 2018.

Nonoperating revenues increased by $3,936,722 for the year ended December 31, 2018, from $7,654 for the year ended December 31, 2017 to $3,944,376 for the year ended December 31, 2018.

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5



USING THIS ANNUAL REPORT The following summarizes the content of Community Enhancement Corporation’s financial statements:

Management Discussion and Analysis

Financial Statements, including the Statements of Net Position on pages 10‐13, the Statements of Revenues, Expenses and Changes in Net Position on pages 14‐15, and the Statements of Cash Flows on page 16.

Statements of Net Position which presents information on all of CEC’s assets and liabilities, with the difference between the two reported as net position. Over time, increases or decreases in net position usually serve as a useful serve as a useful indicator of whether the change in the financial position of CEC’s net income.

Statements of Revenues, Expenses, and Changes in Net Position which presents information showing how CEC’s net position changed during the most recent period. This statement shows the total revenues and total expenses of CEC and the difference between them is CEC’s net income.

Statements of Cash Flows which presents changes in cash and cash equivalents resulting from operations, capital and noncapital financing activities, and investing activities.

Notes to Financial Statements The primary focus of CEC’s financial statements is on CEC as a whole. This perspective allows the user to address relevant questions, broaden a basis for comparison and enhance CEC’s accountability. ENTITY WIDE FINANCIAL STATEMENTS CEC engages in only business type activities. CEC’s financial statements are designed to be corporate‐like in that all business type activities are consolidated to a total for the entire entity. CEC’s major business activities consist of the rental of real estate, primarily under Section 8 contracts, and the construction and rehabilitation of low‐income housing.

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6



STATEMENTS OF NET POSITION The following table reflects the condensed Statements of Net Position compared to prior years.

2019 2018 2017

Current Assets 2,840,303$ 4,072,586$ 1,907,192$ Capital Assets 9,635,212 8,512,634 4,993,316Other Assets 6,317,634 6,275,349 1,063,135

Total assets 18,793,149$ 18,860,569$ 7,963,643$

Current Liabilities 820,755$ 667,928$ 616,549$ Noncurrent Liabilities 5,735,500 4,613,872 788,225

Total liabilities 6,556,255$ 5,281,800$ 1,404,774$

Net PositionNet investment in Capital Assets 5,902,527$ 5,272,390$ 4,993,316$ Unrestricted 6,334,367 8,306,379 1,565,553

Total net position 12,236,894$ 13,578,769$ 6,558,869$

For more detailed information, see pages 10‐13 for the Statements of Net Position. MAJOR FACTORS AFFECTING THE STATEMENTS OF NET POSITION 2019 Current assets decreased by $1,232,283 primarily due to a reduction in cash. The reduction in cash was the result of paying for expenses incurred and booked in the previous year but paid in 2019, and cash outlays for investment in future development. There was not a significant increase in total investment in future development because the approximately $677,000 in additional investment was offset by approximately $511,000 in prior investments that were expensed during the current year. Net capital assets increased by $1,122,578 primarily due to the acquisition of land (Greenwood) and construction in progress (Yorktown Apartments). Non‐current liabilities increased by $1,211,628 as the result of increases in unearned land lease (Greenwood) and long‐term debt (additional loan draw for Yorktown). 2018 Current assets increased by $2,165,394 primarily due to the receipt of a lawsuit settlement. Net capital assets increased by $3,519,318 due primarily to the purchase of Yorktown Apartments. Other assets increased by $5,212,214 primarily due to the note receivable from Sooner Haven, LLC for the sale of Sooner Haven Apartments that was transferred to CEC from Oklahoma City Housing Authority.

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CHANGE IN UNRESTRICTED NET POSITION

2019 2018

Unrestricted Net Position, Beginning of Year 8,306,379$ 1,565,553$ Change in Unrestricted Net Position (1,972,012) 6,740,826

Unrestricted Net Position, End of Year 6,334,367$ 8,306,379$

While the results of operations are a significant measure of the CEC activities, the analysis of the changes in unrestricted net position provides a clearer change in financial well‐being. STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION The following schedule compares the revenues and expenses for the current and previous fiscal year. As stated before, CEC engages in only business‐type activities.

2019 2018 2017

RevenuesTenant rental and other revenue 518,873$ 330,461$ 232,264$ Section 8 housing assistance revenue 605,550 736,713 709,001 Developer fee ‐ 625,000 191,000 Other government grants 93,443 136,273 139,017 Other revenue 62,879 1,838,510 62,247 Gain on sale of capital assets ‐ 3,970,867 7,654 Donation of real property 96,568 ‐ ‐ Interest income 165,240 41,310 ‐

Total revenues 1,542,553 7,679,134 1,341,183

ExpensesAdministrative 369,688 258,372 233,194 Tenant services 219,746 186,774 186,589 Utilities 242,229 239,925 211,285 Ordinary maintenance and operation 704,321 509,948 537,476 Protective services 42,623 112,398 105,881 Insurance 57,567 75,359 64,841 Depreciation 471,219 213,295 205,869 Interest 117,375 67,801 ‐ Other expenses 659,660 16,659 160,356

Total expenses 2,884,428 1,680,531 1,705,491

Increase (Decrease) in Net Position before Capital Contributions and Transfers (1,341,875) 5,998,603 (364,308)

Transfers from the Primary GovernmentTransfer of capital assets from

Oklahoma City Housing Authority ‐ 1,021,297 ‐

Change in Net Position (1,341,875)$ 7,019,900$ (364,308)$

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MAJOR FACTORS AFFECTING THE STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION 2019 Other operating revenue decreased by $1,775,633 because in 2018, CEC received one‐time settlement funds. Other revenue in 2019 is consistent with 2017. Developer fee income decreased by $625,000 because no developer fees were paid out in 2019. Depreciation expense increased $257,924 due to an increase in fixed assets and having a full year of depreciation on assets acquired the prior year. Other expenses increased $643,001 primarily due to the expensing of approximately $511,000 that was originally spent on investment in future development. Interest expense increased by $49,574 due to an increase in long‐term debt. Gain on the sale of capital assets decreased by $3,970,897 due to not having the sale of Sooner Haven Apartments like in the prior year. Transfers from the primary government decreased $1,021,297 due to not having a transfer from OCHA like in the prior year. 2018 Tenant and other revenue increased by $1,874,460 primarily due to the receipt of settlement funds from a lawsuit. Developer fee increased by $434,000, which is due to the receipt of $625,000 related to Sooner Haven. Administrative expenses increased $45,469 primarily as a result of an increase in legal fees related to development activities. Interest expense increased by $67,801 due to long‐term debt obtained to finance the acquisition and renovation of Yorktown Apartments during 2018 General expenses decreased $55,418 primarily due to better collections resulting in a decrease in bad debt expense. Gain on sale of capital assets increased $3,963,213 due primarily to the sale of Sooner Haven Apartments to Sooner Haven, LLC. Transfers from the primary government increased $1,021,297 due to the transfer of capital assets from Oklahoma City Housing Authority.

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9



SIGNIFICANT CAPITAL ASSET ACTIVITY 2019 During 2019, CEC administered construction for John H Johnson Care Suites, Sooner Haven Apartments, and Yorktown Apartments. No major asset activities were conducted in 2019. 2018 During 2018, CEC’s primary government, the Oklahoma City Housing Authority, transferred ownership of Sooner Haven Apartments, which had a net book value of $1,021,097, to CEC as part of the U.S. Department of Housing and Urban Development’s Rental Demonstration Program (RAD). Subsequently, CEC sold the property improvements to Sooner Haven, LLC, while retaining ownership of the land. Additionally, CEC acquired Yorktown Apartments for $3,247,500. See Note 4 of the financial statements for additional information related to capital assets. SIGNIFICANT DEBT SUMMARY As of December 31, 2019 and 2018, CEC has outstanding long‐term debt in the amount of $3,732,685 and $3,240,244, respectively. This change is a result of increased draws off of the construction loan for Yorktown Apartments. See Note 5 of the financial statements for additional information related to long‐term debt. ECONOMIC FACTORS Significant economic factors affecting CEC are as follows:

Federal funding from the Department of Housing and Urban Development

Local labor supply and demand, which can affect salary and wage rates

Local inflationary, recessionary, and employment trends, which can affect resident incomes, and therefore the amount of rental income

Inflationary pressure on utility rates, supplies, and other costs FINANCIAL CONTACT The individual to be contacted regarding this report is Thomas Henderson, Chief Financial Officer of the Oklahoma City Housing Authority at (405) 239‐7551. Specific requests may be submitted to Community Enhancement Corporation, 1700 N E 4 St., Oklahoma City, Oklahoma, 73117‐3800.

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Community Enhancement Corporation Statement of Net Position

December 31, 2019

DiscretelyPresented


Assets

Current AssetsCash and cash equivalents 1,963,322$ 825,392$ Restricted cash 30,985 12,968,892

1,994,307 13,794,284

Accounts receivableTenants, net of allowance for doubtful accounts

of $11,553 and $0, respectively 14,138 14,095 Intergovernmental 3,152 26,841 Interest 206,550 42,204 Other 18,189 ‐ Developer fees 500,000 ‐

Prepaid expenses and other 94,476 39,521 Prepaid land lease, current portion ‐ 14,597 Inventory 9,491 5,775






Total Assets 18,793,149$ 49,092,963$

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December 31, 2019

DiscretelyPresented



Current LiabilitiesCurrent maturities of long‐term debt ‐$ 133,233$ Accounts payable

Trade 252,647 138,790 Oklahoma City Housing Authority 130,892 25,157 Construction 314,573 4,852,945 Developer fees ‐ 500,000

Accrued liabilitiesSalaries, wages, and payroll taxes 16,269 39,727 Compensated absences, current portion 15,737 ‐ Interest ‐ 413,184 Other 14,504 ‐

Tenant security deposits payable 30,985 14,775 Unearned land lease revenue, current portion 34,293 ‐ Unearned revenue 10,855 13,665

Total current liabilities 820,755 6,131,476

Unearned Land Lease Revenue, Noncurrent Portion 2,002,815 ‐

Long‐Term Debt 3,732,685 39,131,034


Net PositionUnrestricted 6,334,367 1,267,730 Net investment in capital assets 5,902,527 2,562,723



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December 31, 2018

DiscretelyPresented


Assets

Current AssetsCash and cash equivalents 3,319,428$ 88,002$ Restricted cash 30,902 16,904,244

3,350,330 16,992,246

Accounts receivableTenants, net of allowance for doubtful accounts

of $1,324 and $0, respectively 2,121 65,239 Intergovernmental 26,376 ‐ Interest 41,310 43,640 Other 21,712 ‐ Developer fees 500,000 ‐

Prepaid expenses and other 118,642 ‐ Prepaid land lease, current portion ‐ 14,597 Inventory 12,095 ‐






Total Assets 18,860,569$ 39,552,755$

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December 31, 2018

DiscretelyPresented



Current LiabilitiesCurrent maturities of long‐term debt ‐$ 25,210$ Accounts payable

Trade 101,384 120,183 Oklahoma City Housing Authority 468,711 27,003 Construction ‐ 1,558,886 Developer fees ‐ 500,000

Accrued liabilitiesSalaries, wages, and payroll taxes 1,011 ‐ Compensated absences, current portion ‐ ‐ Interest 34,795 96,562 Other 11,805 ‐

Tenant security deposits payable 30,902 26,175 Unearned land lease revenue, current portion 14,597 ‐ Unearned revenue 4,723 ‐

Total current liabilities 667,928 2,354,019

Unearned Land Lease Revenue, Noncurrent Portion 1,373,628 ‐

Long‐Term Debt 3,240,244 34,102,397


Net PositionUnrestricted 8,306,379 1,389,089 Net investment in capital assets 5,272,390 1,707,250



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Community Enhancement Corporation Statement of Revenues, Expenses and Changes in Net Position


DiscretelyPresented


Operating RevenuesSection 8 housing assistance 605,550$ ‐$ Other government grants 93,443 ‐ Tenant rental revenue 518,873 1,073,131 Other revenue 62,879 ‐


Operating ExpensesAdministrative services 286,872 512,500 Tenant services 219,746 ‐ Utilities 242,229 144,965 Ordinary maintenance and operation 704,321 129,197 Protective services 42,623 ‐ Insurance 57,567 88,950 Bad debts 41,069 8,511 Real estate taxes 6,635 ‐ Other general 19,442 27,794 Management fees 82,816 44,694 Depreciation and amortization 471,219 125,844


Operating Loss (893,794) (9,324)

Nonoperating Revenue (Expense)Investment income ‐ 178,239 Interest income 165,240 354 Interest expense (117,375) (165,240) Other income (expense) ‐ 1,071 Predevelopment expenses (592,514) ‐ Donations of real property 96,568 ‐

Total nonoperating revenue (expense) (448,081) 14,424

(Loss) Income Before Capital Contributions (1,341,875) 5,100

Equity Contributions Equity contributions ‐ 729,014

Change in Net Position (1,341,875) 734,114



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Community Enhancement Corporation Statement of Revenues, Expenses and Changes in Net Position


DiscretelyPresented


Operating RevenuesSection 8 housing assistance 736,713$ ‐$ Other government grants 136,273 ‐ Tenant rental revenue 330,461 163,070 Developer fees 625,000 ‐ Other revenue 1,838,510 ‐

Total operating revenues 3,666,957 163,070

Operating ExpensesAdministrative services 144,222 11,595 Tenant services 186,774 ‐ Utilities 239,925 10,083 Ordinary maintenance and operation 509,948 22,456 Protective services 112,398 ‐ Insurance 75,359 ‐ Bad debts 15,799 ‐ Other general 860 581 Management fees 114,150 428 Depreciation and amortization 213,295 25,229

Total operating expenses 1,612,730 70,372

Operating Income 2,054,227 92,698

Nonoperating Revenue (Expense)Interest income 41,310 ‐ Interest expense (67,801) (8,502) Gain on sale of capital assets 3,970,867 ‐

Total nonoperating revenue (expense) 3,944,376 (8,502)

Income Before Capital and Other Contributions 5,998,603 84,196

Equity Contributions and Transfers from the Primary GovernmentTransfer of capital assets from Oklahoma City Housing Authority 1,021,297 ‐ Equity contributions ‐ 1,629,115

Change in Net Position 7,019,900 1,713,311



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Community Enhancement Corporation Statements of Cash Flows


2019 2018

Operating ActivitiesCash received from government grants and subsidies 722,217$ 872,101$ Cash received from tenants 513,071 351,554 Cash received from other sources 715,285 1,843,024 Cash payments for payroll costs (203,774) (243,104) Cash payments for goods or services (1,625,638) (1,188,119)

Net Cash from Operating Activities 121,161 1,635,456

Capital and Related Financing ActivitiesBorrowings on long‐term debt 492,441 3,240,244 Interest payments on long‐term debt (152,170) ‐ Additions to capital assets (1,182,656) (3,543,327)

Net Cash used for Capital and Related Financing Activities (842,385) (303,083)

Investing Activities

Investment in future developments (677,299) (601,027) Payments received on investments in future developments 42,500 788,813

Net Cash (used for) from Investing Activities (634,799) 187,786

Net Change in Cash and Cash Equivalents (1,356,023) 1,520,159



Reconciliation of Operating (Loss) Income to Net Cash from Operating Activities

Operating (loss) income (893,794)$ 2,054,227$ Adjustments to reconcile operating (loss) income to

net cash from operating activitiesDepreciation 471,219 213,295 Changes in operating assets and liabilities

Accounts receivable 14,730 (518,188) Prepaid expenses and other assets 24,166 (85,737) Inventory 2,604 ‐ Accounts payable (186,556) (30,228) Accrued liabilities 33,694 ‐ Unearned revenue 655,015 (14,597) Tenant security deposits 83 16,684

Net Cash from Operating Activities 121,161$ 1,635,456$

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Community Enhancement Corporation Notes to Financial Statements December 31, 2019 and 2018

Note 1 ‐ Summary of Significant Accounting Policies Organization Community Enhancement Corporation (“CEC”) is considered a governmental not‐for‐profit because of its relationship with the Oklahoma City Housing Authority (OCHA). The financial statements have been prepared in accordance with generally accepted accounting principles as prescribed by the Governmental Accounting Standards Board (GASB) Statement No. 34. CEC was formed in an effort to expand into charitable housing programs offered to lower‐income citizens of Oklahoma City. The CEC Board of Directors also serves as the Board of Commissioners for OCHA. Because of this, CEC is a blended component unit of OCHA. In 1994, CEC acquired from the Department of Housing and Urban Development (“HUD”), at a nominal price, several single‐family homes (“Northeast Metro Homes”) and a multi‐family apartment complex (“Providence Apartments”), and also obtained one single‐family home (“Northeast Metro Home”). Northeast Metro Homes (20 homes) and Providence Apartments (50 units) receive housing assistance payments pursuant to Section 8 of U.S. Housing Act of 1937. In 2019 and 2018, Section 8 housing assistance payments represented 42% and 8%, respectively, of revenues from all sources. Northeast Metro Homes, Providence Apartments, and other Section 8 units are regulated by the U.S. Department of Housing and Urban Development in the amount of rent charged and must follow specific operating regulations. CEC is exposed to all common risks associated with the ownership and rental of real estate properties. These risks are covered by commercial insurance. Blended Component Units Included within the financial reporting entity of CEC as blended component units are JHJ GP, LLC and Sooner Haven MM, LLC. JHJ GP, LLC and Sooner Haven MM, LLC are wholly owned by CEC. JHJ GP, LLC is the managing general partner of John H Johnson ALF, LP, a discretely presented component unit. Sooner Haven MM, LLC is the managing member of Sooner Haven, LLC, a discretely presented component unit. A separate set of financial statements for JHJ GP, LLC and Sooner Haven MM, LLC are not issued. Discretely Presented Component Units The component units column in the combined financial statements includes the financial data of CEC’s discretely presented component units as of December 31, 2019 and 2018. These units are reported in a separate column to emphasize that they are legally separate from CEC. John H. Johnson ALF, LP (JHJ, LP) was formed for the purpose of owning and operating a 130‐unit low‐income assisted living project in Oklahoma City, Oklahoma. As mentioned above, JHJ GP, LLC is the managing general partner of JHJ, LP and has an ownership percentage of 0.01% in JHJ, LP.

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Sooner Haven, LLC was formed for the purpose of owning and operating an existing 150‐unit low‐income Rental Assistance Demonstration (RAD) project in Oklahoma City, Oklahoma. As mentioned above, Sooner Haven MM, LLC is the managing general partner of Sooner Haven, LLC and has an ownership percentage of 0.01% in Sooner Haven, LLC. The financial statements of the discretely presented component units are presented in CEC’s basic financial statements. A separate set of financial statements for JHJ, LP are not issued. Complete financial statements for Sooner Haven, LLC can be obtained from CEC’s administrative offices at 1700 N E 4 St., Oklahoma City, Oklahoma, 73117‐3800. Basis of Accounting CEC accounts for all of its activities as a proprietary fund. The measurement focus of proprietary activities is on the determination of net income, financial position, and cash flows. As a result, the proprietary activities are accounted for on the accrual basis of accounting. Under this method, revenues are recorded when earned and expenses are recorded at the time liabilities are incurred. CEC distinguishes operating revenues and expenses from non‐operating items. Operating revenues and expenses result from providing services to tenants. Operating revenues and expenses consist of rental revenues, other charges collected from tenants, operating grants and subsidies, and expenses associated with operating low‐income housing projects. All other revenues and expenses are reported as non‐operating revenues and expenses. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash in banks and all highly liquid investments with original maturities of three months or less. Accounts Receivable Revenues are recorded when earned and are reported as accounts receivable until collected. Accounts receivable are expensed as bad debts at the time they are determined to be uncollectible. Management has established an allowance for doubtful accounts for amounts that may not be collectible in the future. Receivables are reported net of the related allowance. Land Leases The unearned land lease revenue for CEC is being amortized over the terms of the leases using the straight‐line method of amortization (Note 7).

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Capital Assets Capital assets are recorded at cost. Repairs and maintenance are expensed as incurred, whereas major improvements greater than $5,000 are capitalized. Depreciation of property and equipment is provided using the straight‐line method over the estimated lives of the respective assets as follows: Buildings and improvements 30 years Equipment 12 years Long‐lived assets held and used by an entity are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. No impairment loss has been recognized for the years ended December 31, 2019 and 2018. Notes and Interest Receivable Notes and interest receivable are carried at amounts advanced, net of reserve for uncollectable accounts, if any. As of December 31, 2019 and 2018, CEC considered all notes and interest receivables to be fully collectable. Investment in Future Developments Investment in future developments represents costs incurred by CEC for future developments and are recorded at cost until a project is established. If a potential project is no longer deemed to be feasible, the costs are charged to expense in the year the project is abandoned. Net Position Net position represents the difference between assets and liabilities. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the Corporation or through external restrictions imposed by creditors, grantors or laws or regulations of other governments. Income Taxes CEC is organized as an Oklahoma nonprofit corporation and has been recognized by the Internal Revenue Service as exempt from federal income taxes under Internal Revenue Code Section 501(c)(3), CEC is annually required to file a Return of Organization Exempt from Income Tax (Form 990) with the IRS. In addition, CEC is subject to income tax on net income that is derived from business activities that are unrelated to their exempt purposes. We have determined that CEC is not subject to unrelated business income tax and have not filed an Exempt Organization Business Income Tax Return (Form 990‐T) with the IRS. Operating Revenues and Expenses CEC considers all revenues and expenses as operating items with the exception of interest expenses, interest revenue, and gain/loss on disposal of capital assets which are considered non‐operating for financial reporting purposes.

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Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and judgments that affect the reported amounts of assets and liabilities and disclosures of contingencies at the date of the financial statements and revenues and expenses recognized during the reporting period. Actual results could differ from those estimates.

Note 2 ‐ Cash and Cash Equivalents Primary Government Deposits It is CEC’s policy to invest in those securities which are authorized by HUD. Such investments generally consist of collateralized or insured certificates of deposit, or other bank deposits, and certain other commercial instruments. The primary objectives of CEC’s investment policy are safety, liquidity, yield, and administrative costs. Custodial Credit Risk Custodial credit risk is the risk that, in the event of a bank failure, CEC’s deposits may not be returned to it. As of December 31, 2019 and 2018, CEC’s deposits were not exposed to custodial credit risk, as all deposits were insured by the Federal Deposit Insurance Commission (FDIC) and collateralized with securities held by a pledging financial institution in accordance with the Public Deposit Protection Act (PDPA). At December 31, 2019 and 2018, CEC’s carrying amount of deposits was $1,994,307 and $3,350,330, respectively, including cash and cash equivalents, and the bank balance was $2,139,769 and $3,308,953, respectively. Of the bank balances, $454,121 and $301,751 were covered by FDIC, respectively. Of the remaining balances, $1,685,648 and $3,007,202, respectively were collateralized with securities held by a pledging financial institution’s agent in CEC’s name. Included in cash and cash equivalents are replacement reserves of approximately $127,000 as of December 31, 2019 and 2018. Discretely Presented Component Units Credit Risk Custodial credit risk is the risk that, in the event of a bank failure, deposits may not be returned. As of December 31, 2019 and 2018, JHJ, LP had carrying amounts and bank balances in excess of the federally insured limit of $250,000. As of December 31, 2019, Sooner Haven, LLC had carrying amounts and bank balances in excess of the federally insured limit of $250,000. Management monitors the financial ratings of such financial institutions and does not believe that the deposits are exposed to a significant level of risk.

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Note 3 ‐ Restricted Cash Primary Government Restricted cash consists of tenant security deposits. Discretely Presented Component Units Restricted cash consists of various bond trust accounts as required by the bond documents (Note 5), tenant security deposits, and various reserves and escrows required by HUD and the partnership/operating agreements. Total restricted cash as of December 31, 2019 and 2018 was $12,968,892 and $16,904,244, respectively.

Note 4 ‐ Capital Assets Primary Government The following is a summary of property, structures and equipment for the years ended December 31, 2019 and 2018:


Non‐DepreciableLand 1,687,942$ 688,319$ ‐$ 2,376,261$ Construction in progress 244,627 805,715 ‐ 1,050,342

Total non‐depreciable 1,932,569 1,494,034 ‐ 3,426,603

DepreciableBuildings and improvements 9,104,130 88,500 ‐ 9,192,630 Equipment 217,388 11,263 ‐ 228,651

Total depreciable 9,321,518 99,763 ‐ 9,421,281

Less Accumulated Depreciation (2,741,453) (471,219) ‐ (3,212,672)

Net Depreciable Capital Assets 6,580,065 (371,456) ‐ 6,208,609


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Non‐DepreciableLand 1,000,916$ 687,026$ * ‐$ 1,687,942$ Construction in progress ‐ 244,627 ‐ 244,627

Total non‐depreciable 1,000,916 931,653 ‐ 1,932,569

DepreciableBuildings and improvements 6,304,895 3,631,245 * (832,010) * 9,104,130 Equipment 232,393 836 (15,841) 217,388

Total depreciable 6,537,288 3,632,081 (847,851) 9,321,518

Less Accumulated Depreciation (2,544,888) (213,295) 16,730 (2,741,453)

Net Depreciable Capital Assets 3,992,400 3,418,786 (831,121) 6,580,065

Net Capital Assets 4,993,316$ 4,350,439$ (831,121)$ 8,512,634$

* Includes capital assets transferred from OCHA with a carrying value of $1,021,297. Capital assets with a carrying value of $832,010 were then disposed of in the non‐cash sale to Sooner Haven, LLC (Note 6). CEC has entered into a construction contract with Red Oak Contractors, LLC for the rehabilitation of Yorktown Apartments in the amount of $1,714,329, including change orders. As of December 31, 2019 and 2018, $857,600 and $70,365, respectively, has been incurred in connection with the contract.

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Discretely Presented Component Units The following is a summary of property, structures and equipment for the years ended December 31, 2019 and 2018:


Non‐Depreciable Capital AssetsLand ‐$ ‐$ ‐$ ‐$ Construction in progress 15,959,498 8,479,062 ‐ 24,438,560


Depreciable Capital AssetsBuildings and improvements 5,543,674 4,273,670 ‐ 9,817,344 Furniture and equipment ‐ 118,686 118,686

Total depreciable 5,543,674 4,392,356 ‐ 9,936,030

Less Accumulated Depreciation (22,928) (125,844) ‐ (148,772)




Non‐Depreciable Capital AssetsLand ‐$ ‐$ ‐$ ‐$ Construction in progress 4,128,720 11,830,778 ‐ 15,959,498


Depreciable Capital AssetsBuildings and improvements ‐ 5,543,674 5,543,674

Total depreciable ‐ 5,543,674 ‐ 5,543,674

Less Accumulated Depreciation ‐ (22,928) ‐ (22,928)

Net Depreciable Capital Assets ‐ 5,520,746 ‐ 5,520,746


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During 2018, Sooner Haven, LLC has entered into a construction contract with Red Oak Contractors, LLC for the rehabilitation of a low‐income housing development in the amount of $14,763,633, including change orders. As of December 31, 2019, $7,555,390 has been incurred in connection with the contract.

Note 5 ‐ Long‐Term Debt Primary Government During 2018, CEC financed the purchase and renovation of Yorktown Apartments in part with a variable rate (5.5% at December 31, 2019) bridge loan with Mabrey Bank in an amount not to exceed $3,536,000. Unpaid principal and interest on the bridge loan is due at maturity, February 28, 2021. The bridge loan is secured by a mortgage and deed of trust on Yorktown Apartments. The outstanding balance of the bridge loan was $2,982,685 and $2,490,244 at December 31, 2019 and 2018, respectively. During 2018, CEC financed the purchase and renovation of Yorktown Apartments in part with a 0% promissory note with OCHA in the principal amount of $750,000. Annual payments of $25,000 are due one month after the conversion of the bridge loan with Mabrey bank (which is expected to occur in September 2020) through maturity, September 20, 2028. The loan is unsecured. The outstanding balance of the bridge loan was $750,000 at December 31, 2019 and 2018, respectively. For the years ended December 31, 2019 and 2018, the following changes occurred in long‐term debt:


Mortgage notes payable 3,240,244$ 492,441$ ‐$ 3,732,685$ ‐$


Mortgage notes payable ‐$ 3,240,244$ ‐$ 3,240,244$ ‐$

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The estimated debt requirements to maturity for the year ending December 31, 2019 are as follows:

Principal Interest Total

2020 ‐$ 177,000$ 177,000$ 2021 3,007,685 30,000 3,037,685 2022 25,000 ‐ 25,000 2023 25,000 ‐ 25,000 2024 25,000 ‐ 25,000 2025 ‐ 2028 650,000 ‐ 650,000

3,732,685$ 207,000$ 3,939,685$


Discretely Presented Component Units Bonds Payable JHJ, LP is financing the construction of the assisted living facility in part with variable rate (6.5% at December 31, 2019) Series 2017 Multifamily Housing Revenue Bonds issued by Oklahoma Housing Finance Agency in the amount of $16,000,000. The bonds payable are secured by a deed of trust on all property and equipment. Monthly interest only payments are due through the Stabilization Date, as defined in the Bond Indenture, when the construction bonds are expected to be converted into permanent financing. The bonds have a maturity date of September 1, 2034, at which time unpaid principal and interest is due and payable. The outstanding balance of the bonds payable was $15,981,908 and $16,000,000 at December 31, 2019 and 2018, respectively. During 2019 and 2018, JHJ, LP incurred interest of $1,066,613 and $949,000, respectively, on the bonds, which has been capitalized and included in construction in progress (Note 4). Sooner Haven, LLC (Sooner Haven) is financing the construction and rehabilitation of the project in part with 2.35% Series 2018 Collateralized Revenue Bonds issued by Oklahoma Housing Finance Agency in the amount of $12,500,000. The bonds payable are secured by a deed of trust on all property and equipment. Interest only payments are due each April 1 and October 1 beginning October 1, 2018 through maturity. The bonds have an initial mandatory tender date of October 1, 2020 and a maturity date of October 1, 2021, at which time unpaid principal and interest is due and payable. The outstanding balance of construction bonds payable was $12,500,000 as of December 31, 2019 and 2018 (excluding unamortized debt issuance costs of $225,914 as of December 31, 2019 and $350,461 as of December 31, 2018). During 2019 and 2018, Sooner Haven incurred interest of $296,967 and $55,252, respectively, on the bonds, which has been capitalized and included in construction in progress (Note 4), net of interest earned on bond proceeds held in escrow of $174,000 and $32,213, respectively. As of December 31, 2019 and 2018, accrued interest on the bonds was $74,219 and $55,252, respectively.

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Mortgage Notes Payable Sooner Haven has entered into a loan agreement in the principal amount of $8,991,000 with Lancaster Pollard Mortgage Company, LLC that is insured by HUD under Section 221(d)(4) of the National Housing Act (HUD Loan). The HUD Loan is evidenced by a promissory note and is secured by property and equipment. The HUD Loan has a rehabilitation term of 14 months and a permanent term of 40 years. Interest accrues at 4.8% per year plus a mortgage insurance premium of 0.25%. Monthly installments of interest only are due and payable during the rehabilitation period. Beginning January 1, 2020 monthly installments of principal and interest are due and payable in an amount sufficient to fully amortize the HUD Loan over the remaining term ($42,170 pursuant to the promissory note). The HUD loan matures December 1, 2059, at which time any unpaid principal and interest is due and payable. Pursuant to the terms of the HUD Loan agreement, the principal balance may not be prepaid prior to January 1, 2020. Prepayments made after January 1, 2020 through December 1, 2030 are subject to prepayment premiums. As of December 31, 2019 and 2018, outstanding principal on the HUD Loan was $3,377,517 and $899,726, respectively, (excluding unamortized debt issuance costs of $320,266 as of December 31, 2019 and $321,658 as of December 31, 2018). For the year ended December 31, 2019 and for the period October 23, 2018 to December 31, 2018, Sooner Haven incurred interest of $69,599 and $8,158, respectively, on the HUD Loan, which has been capitalized and included in construction in progress (Note 4). As of December 31, 2019 and 2018, accrued interest on the HUD Loan was $11,711 and $0, respectively. On October 1, 2018, Sooner Haven entered into a loan agreement in the principal sum of $5,400,000 with CEC (the “Seller Loan”). The Seller Loan is evidenced by a promissory note and secured by the property and equipment. The Seller Loan accrues interest at a fixed rate of 3.06% per year, compounded annually. The Seller Loan matures December 1, 2059, at which time unpaid principal and interest is due and payable. The Seller Loan is payable from surplus cash, as defined in the operating agreement, and represents the second mortgage on the property. Sooner Haven has the option at any time to prepay all or any portion of the entire unpaid principal balance of the Seller Loan and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, outstanding principal on the Seller Loan was $5,400,000. For the year ended December 31, 2019 and for the period beginning October 23, 2018 and ending December 31, 2018, interest expense was $165,240 and $41,310, respectively. As of December 31, 2019 and 2018, accrued interest on the Seller Loan was $206,550 and $41,310, respectively. In connection with the Seller Loan, CEC, as landlord, and Sooner Haven executed a ground lease agreement (Note 7). The principal sum of the Seller Loan represents amounts owed by Sooner Haven to CEC under the Ground Lease and the bill of sale for Sooner Haven’s acquisition of the improvements of the project. On October 1, 2018, Sooner Haven entered into a loan agreement in the principal sum of $2,551,022 with OCHA (the “OCHA Loan”). The OCHA Loan is evidenced by a promissory note and secured by the property and equipment. The OCHA Loan accrues interest at a fixed rate of 2% per year, compounded annually. The OCHA Loan matures December 1, 2059, at which time any outstanding principal and interest is due and payable. The OCHA Loan is payable from surplus cash, as defined in the operating agreement, and represents the third mortgage on the property. Sooner Haven has the option at any time to prepay all or any portion of the entire unpaid principal balance of the OCHA Loan and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, outstanding principal on the OCHA Loan (Note 6) was $2,551,022 and $0, respectively. For the year ended December 31, 2019 and for the period October 23, 2018 to December 31, 2018, Sooner Haven incurred interest of $32,635 and $0, respectively, on the OCHA Loan, which has been capitalized and included in construction in progress (Note 4). As of December 31, 2019 and 2018, accrued interest on the OCHA Loan was $32,635 and $0, respectively.

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For the years ended December 31, 2019 and 2018, the following changes occurred in long‐term debt:


Bonds payable 28,149,539$ 124,547$ (18,902)$ 28,255,184$ 105,028$ Mortgage notes payable 5,978,068 5,030,205 ‐ 11,008,273 28,205

34,127,607$ 5,154,752$ (18,902)$ 39,263,457$ 133,233$


Bonds payable 16,000,000$ 12,149,539$ ‐$ 28,149,539$ 25,210$ Mortgage notes payable ‐ 5,978,068 ‐ 5,978,068 ‐

16,000,000$ 18,127,607$ ‐$ 34,127,607$ 25,210$

The estimated debt requirements to maturity for the year ending December 31, 2019 are as follows:

Amount

2020 133,233$ 2021 12,642,111 2022 151,090 2023 160,648 2024 170,368

Thereafter 26,006,007

39,263,457$


Note 6 ‐ Related Party Transactions Developer Fees During 2017, CEC entered into a development service agreement in the amount of $1,900,000 in connection with the development and construction of JHJ, LP. No developer fees were earned from JHJ, LP during 2019 or 2018. The remaining developer fees of $1,709,000 are expected to be earned and received upon meeting certain criteria as specified in the agreement.

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During 2018, CEC entered into a development service agreement in the amount of $1,250,000 in connection with the development and construction of Sooner Haven, LLC. No developer fees were earned or received during 2019. During 2018, CEC earned $625,000 in developer fees, of which $125,000 was received. As of December 31, 2019 and 2018, CEC is owed $500,000 for developer fees earned and unpaid. The remaining developer fees of $625,000 are expected to be earned and received upon meeting certain criteria as specified in the agreement. Notes Receivable, Interest Receivable, Interest Income, and Sale of Capital Assets During 2018, CEC sold capital assets with a carrying value of $832,010 to Sooner Haven, LLC for $4,800,000. CEC recognized a gain on sale in the amount of $3,967,990 in 2018. The sale was financed with a $5,400,000 promissory note (Note 5). The note receivable is secured by the capital assets. Interest on the note accrues at a fixed rate of 3.06% per year, compounded annually. Principal and interest payments on the note receivable are based on surplus cash, as defined in the operating agreement for Sooner Haven, LLC. Any unpaid principal and interest is due at maturity, December 1, 2059. Sooner Haven, LLC has the option at any time to prepay all or any portion of the entire unpaid principal balance of the note payable and all accrued interest at any time, without charge or penalty. As of December 31, 2019 and 2018, the outstanding principal balance of the note receivable was $5,400,000. For the year ended December 31, 2019 and for the period beginning October 23, 2018 and ending December 31, 2018, CEC earned interest income of $165,240 and $41,310, respectively, on the note receivable. As of December 31, 2019 and 2018, CEC was owed accrued interest $206,550 and $41,310, respectively, on the note receivable. Due to Oklahoma City Housing Authority As of December 31, 2019 and 2018, CEC owed $130,892 and $468,711, respectively, to OCHA for property management fees, disbursements related to CEC’s operations, and other advances. The advances bear no interest, are unsecured, and are due upon demand. As of December 31, 2019 and 2018, Sooner Haven, LLC owed $25,157 and $27,003, respectively, to OCHA for property management fees, disbursements related to Sooner Haven, LLC’s operations, and other advances. The advances bear no interest, are unsecured, and are due upon demand. As of December 31, 2019 and 2018, CEC owed Sooner Haven, LLC $26,841 and $0, respectively, for advances. The advances bear no interest, are unsecured, and are due upon demand. Transfers from Oklahoma City Housing Authority (OCHA) During 2018, OCHA transferred capital assets with a carrying value of $1,021,297 to CEC (Note 4). Management Fees OCHA provides management, administrative and accounting services to CEC for a management fee. During 2019 and 2018, CEC incurred management fee expense of $56,871 and $107,830, respectively, to OCHA.

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Note 7 ‐ Leases The Authority, through CEC, has entered into a ground lease agreement with Oklahoma City Housing Associates, L.P., an unrelated party. The term of the lease commenced on September 20, 2017 and shall terminate 65 years after the commencement date. A single payment of $680,251 was made by Oklahoma City Housing Associates, L.P. and received by CEC on the commencement date and was recorded as unearned revenue by CEC. The unearned land lease revenue for CEC is being amortized over the 65‐year term of the lease. During 2018, CEC entered into a ground lease with Sooner Haven, LLC, pursuant to which Sooner Haven agreed to rehabilitate the existing property for use as a Section 8 low income housing tax credit project under the Rental Assistance Demonstration (RAD) program administered by HUD. The ground lease commenced on October 1, 2018 and will terminate 65 years after the commencement date. The Company has the option to renew the ground lease for 2 successive 10‐year periods following the lease term. The rent for the first year of the lease term is $600,000, due and payable in accordance with the terms of the Seller Loan (Note 5). Thereafter, annual rent payments of $10 are required for the remainder of the lease. The first‐year rent payment of $600,000 was recorded as unearned revenue by CEC in 2018 and is being amortized over the 65‐year term of the lease. During 2017, CEC entered into a land lease agreement with JHJ, LP to lease the land on which the project is being built. The term of the lease commenced on September 20, 2017 and shall terminate 55 years after the commencement date. A single payment of $802,822 was made by JHJ, LP and received by CEC on the commencement date and was recorded as unearned revenue in 2017 by CEC and prepaid land lease by JHJ, LP. The unearned land lease revenue for CEC and the prepaid land lease for JHJ, LP is being amortized over the 55‐year term of the lease. As of December 31, 2019 and 2018, unearned revenue from the land leases was $2,037,108 and $1,388,225, respectively. Future amortization of the unearned land leases are as follows

OKC Housing Sooner Haven JHJYear ended December 31, Associates Amount Amount Total

2020 10,465$ 9,231$ 14,597$ 34,293$ 10,465 9,231 14,597 34,293 10,465 9,231 14,597 34,293 10,465 9,231 14,597 34,293 10,465 9,231 14,597 34,293

Thereafter 622,692 542,308 700,643 1,865,643

675,017$ 588,463$ 773,628$ 2,037,108$

2021202220232024

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Note 8 ‐ Commitments and Contingencies The activities of CEC are currently funded in large part by HUD Section 8 tenant assistance payments and other government grants, and future operations of CEC are reliant on continuation of this funding. Amounts received or receivable from HUD and other government agencies are subject to audit and adjustment by HUD and other government agencies. Any disallowed expenses may constitute a liability of CEC and other government agencies. The amount of expenses which may be disallowed, if any, cannot be determined at this time, although the CEC expects such amounts to be immaterial. As the general partner in JHJ, LP, CEC has certain rights and obligations under the partnership agreement, including guarantees relating to operating and construction guarantees. As the managing member in Sooner Haven, LLC, CEC has certain rights and obligations under the operating agreement, including guarantees relating to operating and construction guarantees.

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Other Information December 31, 2019



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Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government

Auditing Standards To the Board of Directors Community Enhancement Corporation Oklahoma City, Oklahoma We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued, issued by the Comptroller General of the United States, the financial statements and the discretely presented component unit of Community Enhancement Corporation (“CEC”), which comprise the statement of net position as of December 31, 2019, and the related statements of revenues, expenses and changes in net position, and cash flows for the year then ended, and the related notes to the financial statements, and have issued our report thereon dated March 17, 2021. We did not audit the financial statements of Sooner Haven, LLC. This report does not include the results of the other auditors’ testing of internal control over financial reporting or compliance and other matters that are reported on separately by those auditors. Internal Control over Financial Reporting In planning and performing our audit of the financial statements, we considered CEC's internal control over financial reporting (“internal control”) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of CEC's internal control. Accordingly, we do not express an opinion on the effectiveness of CEC's internal control. Our consideration of internal control over financial reporting was for the limited purpose described in the preceding paragraph and was not designed to identify all deficiencies in internal control over financial reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. However, as described in the accompanying schedule of findings and responses, we identified certain deficiencies in internal control that we consider to be material weaknesses and significant deficiencies.



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A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. We consider the deficiency described in the accompanying schedule of findings and responses as finding 2019‐001 to be a material weakness. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. We consider the deficiency described in the accompanying schedule of findings and responses as item 2019‐002 to be a significant deficiency. Compliance and Other Matters As part of obtaining reasonable assurance about whether CEC’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and, accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Entity’s Response to Finding CEC’s response to the finding identified in our audit is described in the accompanying schedule of findings and responses. CEC’s response was not subjected to the auditing procedures applied in the audit of the financial statements and, accordingly, we express no opinion on it. Purpose of This Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of CEC’s internal control or compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering CEC’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose.


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Community Enhancement Corporation Schedule of Findings and Responses


Findings – Financial Statement Audit 2019‐001 Adjusting Journal Entries, Preparation of Financial Statements, and Account Reconciliations

Material Weakness in Internal Control over Financial Reporting

Criteria: A good system of internal control contemplates an adequate system for recording and processing adjusting journal entries significant to the financial statements and internally preparing the CEC’s financial statements and accompanying notes to the financial statements.

Condition: As part of our audit, we proposed material audit adjustments to the financial statements that were not detected by management.

Cause: Failure to properly reconcile general ledger accounts to subsidiary records and posting all transactions and entries prior to the audit. Effect: The control deficiency could result in a misstatement to the financial statements that would not be prevented or detected.

Recommendation: We recommend that all necessary adjustments and transactions are recorded by management prior to our audit.


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Community Enhancement Corporation Schedule of Findings and Responses


2019‐002 Journal Entries

Significant Deficiency in Internal Control over Financial Reporting

Criteria: A good system of internal control restricts activities and access to technology to authorized users commensurate with their job responsibilities and to protect the organization’s assets.

Condition: During our audit, we inquired of accounting staff who indicated that there are no restrictions on who can initiate and post journal entries in the general ledger.

Cause: Due an oversight by management.

Effect: Improper journal entries could be posted, which could lead to errors in the financial statements or misappropriation of assets.

Recommendation: We recommend that CEC review their IT controls and restrict access to only those individuals authorized to initiate journal entries.


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1

March 17, 2021

To the Audit Committee Community Enhancement Corporation Oklahoma City, Oklahoma

We have audited the financial statements of Community Enhancement Corporation (“CEC”) as of and for the year ended December 31, 2019, and have issued our report thereon dated March 17, 2021. Professional standards require that we advise you of the following matters relating to our audit.

Our Responsibility in Relation to the Financial Statement Audit

As communicated in our letter dated March 13, 2020 our responsibility, as described by professional standards, is to form and express opinions about whether the financial statements that have been prepared by management with your oversight are presented fairly, in all material respects, in accordance with accounting principles generally accepted in the United States of America. Our audit of the financial statements does not relieve you or management of its respective responsibilities.

Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain reasonable, rather than absolute, assurance about whether the financial statements are free of material misstatement. An audit of financial statements includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, as part of our audit, we considered the internal control of CEC solely for the purpose of determining our audit procedures and not to provide any assurance concerning such internal control.

We are also responsible for communicating significant matters related to the audit that are, in our professional judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not required to design procedures for the purpose of identifying other matters to communicate to you.

Planned Scope and Timing of the Audit

We conducted our audit consistent with the planned scope and timing we previously communicated to you.



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Compliance with All Ethics Requirements Regarding Independence

The engagement team, others in our firm, as appropriate, and our firm, have complied with all relevant ethical requirements regarding independence.

Qualitative Aspects of the Entity’s Significant Accounting Practices

Significant Accounting Policies

Management has the responsibility to select and use appropriate accounting policies. A summary of the significant accounting policies adopted by CEC is included in Note 1 to the financial statements. There have been no initial selection of accounting policies and no changes in significant accounting policies or their application during 2019. No matters have come to our attention that would require us, under professional standards, to inform you about (1) the methods used to account for significant unusual transactions and (2) the effect of significant accounting policies in controversial or emerging areas for which there is a lack of authoritative guidance or consensus.

Significant Accounting Estimates

Accounting estimates are an integral part of the financial statements prepared by management and are based on management’s current judgments. Those judgments are normally based on knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ markedly from management’s current judgments. There were no estimates affecting the financial statements that are considered significant estimates.

Financial Statement Disclosures

Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their significance to financial statement users. The most sensitive disclosures affecting the financial statements are:

Note 5 ‐ Long‐term debt – includes the detail of the long‐term debt of CEC and itsdiscretely presented component units including future maturities for cash flow,interest rate, due date, and security.

Note 6 ‐ Related party transactions – includes the detail of transactions conductedwith related parties.

Note 7 – Leases – includes the details of the leases that CEC has entered into withOklahoma City Housing Associates, LP, Sooner Haven, LLC, and JHJ, LP.

Notes 4 and 8 ‐ Commitments and contingencies – includes the details of variouscommitments and contingencies for CEC and its discretely presented componentunits.

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Significant Difficulties Encountered during the Audit

Although we received full cooperation from management and believe that we were given direct and unrestricted access to CEC's staff and management, we experienced significant difficulties in performing and completing the audit due to the failure of CEC's accounting personnel to provide the requested audit schedules accurately and timely to us, as well as timely responding to our inquiries. The failure to provide us the needed information accurately and timely resulted in major delays and additional audit time.

Uncorrected and Corrected Misstatements

For purposes of this communication, professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that we believe are trivial, and communicate them to the appropriate level of management. Further, professional standards require us to also communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account balances or disclosures, and the financial statements as a whole and each applicable opinion unit.

The misstatements that we identified as a result of our audit procedures are summarized on the attached schedule and were brought to the attention of, and corrected by, management.

The following summarizes uncorrected financial statement misstatements whose effects in the current and prior periods, as determined by management, are immaterial, both individually and in the aggregate, to the financial statements taken as a whole and each applicable opinion unit.

Overstatement of 2019 depreciation expense due to an understatement in 2018 ‐ $127,431 Understatement of 2019 interest expense due to an overstatement in 2018 ‐ $34,795

The effect of these uncorrected misstatements, including the effect of the reversal of prior year uncorrected misstatements as of and for the year ended December 31, 2019, is an overstatement of 2019 depreciation expense for $127,431, an understatement of interest expense for $34,795, and an understatement of change in net position for $92,636. Net position as of December 31, 2019 is properly stated.

Disagreements with Management

For purposes of this letter, professional standards define a disagreement with management as a matter, whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could be significant to the financial statements or the auditor’s report. No such disagreements arose during the course of the audit.

Representations Requested from Management

We have requested certain written representations from management that are included in the management representation letter dated March 17, 2021.

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Management’s Consultations with Other Accountants

In some cases, management may decide to consult with other accountants about auditing and accounting matters. Management informed us that, and to our knowledge, there were no consultations with other accountants regarding auditing and accounting matters.

Other Significant Matters, Findings, or Issues

In the normal course of our professional association with CEC, we generally discuss a variety of matters, including the application of accounting principles and auditing standards, operating and regulatory conditions affecting the entity, and operating plans and strategies that may affect the risks of material misstatement. None of the matters discussed resulted in a condition to our retention as CEC’s auditors.

This report is intended solely for the information and use of CEC’s Audit Committee, Board of Directors, and management of CEC and is not intended to be and should not be used by anyone other than these specified parties.

Bismarck, North Dakota

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Client: 146775 - Oklahoma City Housing Authority

Engagement: AA 19 - Oklahoma City Housing Authority

Period Ending: 12/31/2019

Trial Balance: 3.00a - CEC TB

Workpaper: 1a.01a - CEC AU 260 Letter Attachment

Account Description W/P Ref Debit Credit

AA1.00

2802-01-000 Owners Contribution 45,000.00

2610-0000 Mortgage Payable 45,000.00

Total 45,000.00 45,000.00

CC1.00

2290-04-000 Deferred Land Lease 11,538.00

3800-00-000 Amortized Lease Income - JHJ 11,538.00

Total 11,538.00 11,538.00

3f.06

1205-00-000 Interest Receivable - Sooner Haven 206,550.00

2806-0000 Prior Year RE 41,310.00

3700-00-000 Interest Income - Sooner Haven 165,240.00

Total 206,550.00 206,550.00

OO.00a

6121-00-000 Other Non-Operating Revenue 680,251.00

2290-04-000 Deferred Land Lease 675,018.00

3620-10-000 Lease Income 5,233.00

Total 680,251.00 680,251.00

K1.01a

1400-52-000 Accum Depreciation - Modernization 1,220.00

1400-55-000 Accum Depreciation - Struct/Eqpt 1,380,175.00

4800-10-000 Depreciation Expense 373,706.00

1400-51-000 Accum Depreciation 1,755,101.00

Total 1,755,101.00 1,755,101.00

CC1.00

2131-00-000 Accrued Interest Payable 34,795.00

5610-00-000 Interest on Notes & Bonds Payable 34,795.00

Total 34,795.00 34,795.00

K1.03/AA1.00

1400-11-000 Construction in Progress 1,054,366.00

4190-13-000 Miscellaneous - Admin 1,300.00

1639-0000 Structural 248,652.00

2111-30-000EB A/P - Yorktown Construction 314,573.00

2610-0000 Mortgage Payable 492,441.00

Total 1,055,666.00 1,055,666.00

LL1.00

1111-06-001 Cash - Operating 34,409.00

2806-0000 Prior Year RE 13,291,618.00


2802-01-000 Owners Contribution 113,992.00

CLIENT POST: To reduce Mabrey Loan accrued interest to $0


Adjusting Journal Entries JE # 15CLIENT POST: To adjust equity to actual


Adjusting Journal Entries

Adjusting Journal Entries JE # 3CLIENT POST: To adjust mortgage balance to actual

Adjusting Journal Entries JE # 5CLIENT POST: To adjust deferred land lease balance to actual

Adjusting Journal Entries JE # 6CLIENT POST: To record Sooner Haven interest receivable and interest revenue

CLIENT POST: To record FY19 Yorktown Construction Activity

CLIENT POST: To move new ground lease to deferred revenue

Adjusting Journal Entries JE # 11CLIENT POST: To adjust CY depreciation expense


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2806-00-000 Ret Earnings - Undesignated Fund Balance 13,247,252.00

Total 13,361,244.00 13,361,244.00

F1.01

7000-00-001EB Predevelopment Costs - Write Off 92,514.49

1129-00-004 Lincoln Inn - A/R - Misc 3,845.00

1129-90-001 JHJ A/R - Misc 55,721.00

1129-90-002 Yorktown A/R - Misc 5,332.00

1129-90-003 Greenwood A/R - Misc 11,943.49

1129-90-104 Sooner Haven A/R - Misc 15,673.00

Total 92,514.49 92,514.49

B1.00

1135-30-000 A/R-OHFA (CEC) 50059 164,762.00

3110-10-000 Dwelling Rent 47,336.00

1122-00-000 A/R - Tenants 212,098.00

Total 212,098.00 212,098.00

PP1.00

1211-02-000 Prepaid Property Insurance 40,985.00

2111-10-000 A/P - Vendors & Contractors 35,026.00

2111-20-000EB A/P - Other 19,621.00

4510-02-000 Property Insurance 40,985.00

4510-02-000 Property Insurance 8,759.00

6910-00000 Ad Valorem Taxes (PEC) 45,888.00

Total 95,632.00 95,632.00

F1.01


1129-90-000 A/R - Misc 193,643.74

Total 193,643.74 193,643.74

F1.01


1290-30-000 Deferred Charges - Miscellaneous 224,990.71

Total 224,990.71 224,990.71

B.00

4140-00-000 Staff Training 30.16




4190-04-000 Office Supplies 144.17



4190-04-000 Office Supplies 1,745.68

4190-12-000 Telephone 227.84

4190-12-000 Telephone 88.35

4190-12-000 Telephone 70.37

4190-12-000 Telephone 2,497.50



4190-13-000 Miscellaneous - Admin 1.21

4190-13-000 Miscellaneous - Admin 236.76

4190-15-000 Court Costs 202.14

4210-00-020 Tenant Services Salaries 10,490.23



Adjusting Journal Entries JE # 19To adjust tenant AR to actual

Adjusting Journal Entries JE # 18CLIENT POST: To write off predevelopment costs per Ian.

Adjusting Journal Entries JE # 20To adjust insurance expense to actual

Adjusting Journal Entries JE # 21To write off predevelopment costs per Ian.


Adjusting Journal Entries JE # 23To reverse "Reclass 2019 Expense" entries that should not have been recorded

To write off predevelopment costs, per Ian.

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4222-01-020 FICA - Tenant Services 740.07




4222-02-020 H/L/D - Tenant Services 2,172.68

4222-02-020 H/L/D - Tenant Services 1,158.95

4222-02-020 H/L/D - Tenant Services 297.50

4222-02-020 H/L/D - Tenant Services 405.82

4222-03-020 Retirement - Tenant Services 2.23




4222-04-020 SUI - Tenant Services 15.09


4310-00-000 Water 1,286.47

4310-00-000 Water 747.06

4310-00-000 Water 129.91

4310-00-000 Water 726.12

4320-00-000 Electricity 137.05

4320-00-000 Electricity 466.42

4330-00-000 Gas 1,877.10

4330-00-000 Gas 985.52

4330-00-000 Gas 151.05

4330-00-000 Gas 431.13

4390-00-000 Other Utilities 1,117.42

4390-00-000 Other Utilities 488.77



4410-00-030 Maintenance Salaries 7,770.71




4420-01-000 Paint 20.99

4420-01-000 Paint 20.99

4420-01-000 Paint 9.43

4420-01-000 Paint 2,997.16

4420-02-000 Screens 31.44

4420-04-000 Plumbing - Materials 145.29



4420-04-000 Plumbing - Materials 3,471.41

4420-05-000 Electrical Materials 165.06

4420-05-000 Electrical Materials 46.57

4420-05-000 Electrical Materials 1,295.54

4420-06-000 Lumber & Hardware 154.17

4420-06-000 Lumber & Hardware 140.24

4420-06-000 Lumber & Hardware 2,467.58

4420-06-000 Lumber & Hardware 3,148.02

4420-07-000 Cleaning Supplies 107.91

4420-07-000 Cleaning Supplies 1,246.90

4420-08-000 Shades 14.40

4420-08-000 Shades 1,102.82

4420-09-000 Range & Refrigerator Supplies 71.72

4420-09-000 Range & Refrigerator Supplies 1,253.58



4420-10-000 Gasoline & Oil - Materials 183.21



4420-11-000 Lawn Materials 504.42

4420-11-000 Lawn Materials 3,898.70

4420-12-000 Vehicle Supplies 143.67

4420-13-000 Pest Control - Materials 261.16

4420-14-000 Miscellaneous - Materials 7.62

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4420-16-000 HVAC Parts 1,035.42

4420-16-000 HVAC Parts 2.91

4420-16-000 HVAC Parts 126.94

4420-16-000 HVAC Parts 731.40

4430-01-000 Maintenance Agreements - Equipment 180.12




4430-03-000 Vehicle Mileage 0.52




4430-04-000 HVAC Repair - Contracts 7,330.00

4430-04-000 HVAC Repair - Contracts 160.00

4430-04-000 HVAC Repair - Contracts 600.00

4430-04-000 HVAC Repair - Contracts 7,780.00

4430-08-000 Landscaping & Grounds 3,805.24




4430-10-000 Plumbing - Contracts 4,643.50




4430-11-000 Electrical Contracts 240.00

4430-11-000 Electrical Contracts 1,200.00



4430-12-000 Extermination - Contracts 1,258.70

4430-12-000 Extermination - Contracts 1,202.90

4430-12-000 Extermination - Contracts 85.80

4430-12-000 Extermination - Contracts 530.80

4430-13-000 Carpet Replacement 1,810.00

4430-14-000 Janitorial - Contracts 600.00

4430-15-000 Miscellaneous - Contracts 5,680.00

4430-15-000 Miscellaneous - Contracts 390.00



4430-17-000 Contract Labor 4,103.89

4430-18-000 Leased Vehicles 425.56




4431-00-000 Garbage & Trash Removal - Contracts 1,650.34

4431-00-000 Garbage & Trash Removal - Contracts 475.65



4433-01-000 FICA - Maintenance 581.06




4433-02-000 H/L/D - Maintenance 405.42

4433-02-000 H/L/D - Maintenance 164.53

4433-02-000 H/L/D - Maintenance 109.06

4433-02-000 H/L/D - Maintenance 135.16

4433-04-000 SUI - Maintenance 72.70




4470-01-000 Security Uniform Allowances 5.45




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4470-04-000 Security Misc Maint Materials 78.35




4510-01-000 Workers Comp Insurance 98.40




1129-90-000 A/R - Misc 61,217.45

1129-90-000 A/R - Misc 28,579.99

1129-90-000 A/R - Misc 20,299.71

1129-90-000 A/R - Misc 65,346.20

4182-02-010 H/L/D - Admin 94.58

4182-02-010 H/L/D - Admin 37.57

4182-02-010 H/L/D - Admin 32.33



Total 175,617.34 175,617.34

F1.01


1129-90-000 A/R - Misc 81,365.02

Total 81,365.02 81,365.02

Total Adjusting Journal Entries 18,226,006.30 18,226,006.30

Total All Journal Entries 18,226,006.30 18,226,006.30

Adjusting Journal Entries JE # 24To write off duplicate predevelopment costs identified by Trish.

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BOC_Agenda_3-24-2021.pdf - Oklahoma City Housing Authority

Documents

Transcript of BOC_Agenda_3-24-2021.pdf - Oklahoma City Housing Authority