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APPENDIX 7

PHA/RMC/AME: FYE: Date:

INDICATOR #6. FINANCIAL MANAGEMENT

This indicator examines the amount of cash reserves available for

operations and, for PHA\'s that score below a grade C on cash

reserves, energy/utility consumption.

Information from the Certification Form/IBS:

1\. Amount of Cash Reserves: \$\_\_\_\_\_\_\_\_\_

2\. Total actual routine expenditures: \$\_\_\_\_\_\_\_\_\_

3\. Reserves as percent of expenditures: \_\_\_\_\_\_\_\_\_\_%

4\. Option A - energy/utility consumption expenses:

Energy consumption expenses: \$\_\_\_\_\_\_\_\_\_

Three years\' rolling base expense: \$\_\_\_\_\_\_\_\_\_

Increase/decrease: \_\_\_\_\_\_\_\_\_\_%

5\. Option B - energy audit:

a\. Has PHA completed or updated its energy

audit, within the past 5 years? \|\_\| Yes \|\_\| No

b\. Were all recommendations that were cost

effective implemented? \|\_\| Yes \|\_\| No

c\. Does PHA have a plan to implement all

cost effective recommendations? \|\_\| Yes \|\_\| No

d\. Is PHA on-schedule with its implementation

plan based on available funds? \|\_\| Yes \|\_\| No \|\_\| N/A

Sources: Accounting system; cash accounts receivables and

accounts payable; form HUD-52599; LOCCS; IP audit.

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APPENDIX 7

Component #1, Cash Reserves. This component examines the amount

of cash

reserves available for operations.

Verification Questions Yes No\* N/A

1\. Were the following accounts excluded from

cash reserves available for operation:

\|\_\| 2111, Vendors/contractors?

\|\_\| 2112, Contract retention?

\|\_\| 2113, Performance deposits?

\|\_\| 2114, Security deposits?

\|\_\| 2117, Payroll deduction/contributions?

\|\_\| 2118, Amounts due to HUD?

\|\_\| Accrued expenses (utilities, PILOT)?

\|\_\| Interfund accounts payable due to other

ACCS?

\|\_\| Other current obligations (describe)?

2\. Review LOCCS drawdowns; were moderni-

zation funds not disbursed at FYE

excluded from cash or investments?

3\. Are receivables included short-term

and collectable within 30 days of PHA\'s FYE?

4\. Receivables not classified as short-term

that are paid within 30 days should have

been classified as short-term. Were all

receivables classified correctly?

5\. Are routine expenses the same as line 520

of form HUD-52599?

6\. Were significant prior year expenditures

entered on line 620 of form HUD-52599 from

Account 6010 properly originated in the

prior year and not the FY being assessed?

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APPENDIX 7

Component #1, Continued:

Verification Questions, Continued

7\. Are expenses properly classified? \|\_\| Yes \|\_\| No

\|\_\| Routine maintenance expenditures

classified as non-routine? \|\_\| Yes \|\_\| No

\|\_\| Non-routine maintenance expenditures

classified as routine? \|\_\| Yes \|\_\| No

8\. If PHA transferred modernization funds

to pay operating expenditures, was the

amount limited to 10%? \|\_\| Yes \|\_\| No

9\. Did the most recent audit support the

accuracy of the PHA\'s records supporting

the PHMAP assessment? \|\_\| Yes \|\_\| No

10\. If modernization funds were transferred,

were these funds properly budgeted and

authorized? \|\_\| Yes \|\_\| No

11\. Is the cost allocation plan current and

satisfactory? \|\_\| Yes \|\_\| No

12\. Has the Management function for component #1

been assumed by an RMC/AME? \|\_\| Yes \|\_\| No

13\. Modification/exclusion requests:

\* All \"No\" answers should be explained below or attached.

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APPENDIX 7

Component #1, Continued:

Calculation of Cash Reserves

Current Assets:

1\. Balance of cash and investment accounts at FYE.

a\. General Fund Account 1111.1: \$\_\_\_\_\_\_\_\_\_

b\. Petty Cash Account 11117: \$\_\_\_\_\_\_\_\_\_

c\. Investments Account 1172: \$\_\_\_\_\_\_\_\_\_

d\. Other (describe): \$\_\_\_\_\_\_\_\_\_

2\. Add accounts receivable and advances that are due

for the period covered and can be collected within

the next 30 days.

a\. Tenants/homebuyers: \$\_\_\_\_\_\_\_\_\_

b\. HUD contributions receivable for operating

subsidy: \$\_\_\_\_\_\_\_\_\_

c\. Interfund accounts receivable due from

other ACCS: \$\_\_\_\_\_\_\_\_\_

d\. Other receivables (describe): \$\_\_\_\_\_\_\_\_\_

3\. Total current assets (add items 1 and 2). \$\_\_\_\_\_\_\_\_\_

Current Liabilities:

4\. Liabilities payable within 30 days after FYE.

a\. Account 2111, Vendors/contractors: \$\_\_\_\_\_\_\_\_\_

b\. Account 2112, Contract retention: \$\_\_\_\_\_\_\_\_\_

c\. Account 2113, Performance deposits: \$\_\_\_\_\_\_\_\_\_

d\. Account 2114, Security deposits: \$\_\_\_\_\_\_\_\_\_

e\. Account 2117, Payroll deductions and

contributions: \$\_\_\_\_\_\_\_\_\_

f\. Account 2118, amounts due to HUD for

subsidy adjustment/residual receipts: \$\_\_\_\_\_\_\_\_\_

g\. Accrued expenses (utilities, PILOT): \$\_\_\_\_\_\_\_\_\_

h\. Interfund accounts payable due to

other ACCS: \$\_\_\_\_\_\_\_\_\_

i\. Other current obligations (describe): \$\_\_\_\_\_\_\_\_\_

5\. Total current liabilities (add items 4a-4i). \$\_\_\_\_\_\_\_\_\_

6\. Available cash (line 3 minus line 5). \$\_\_\_\_\_\_\_\_\_

7\. Total routine expenses (line 520, form
HUD-52599).\$\_\_\_\_\_\_\_\_\_

8\. Cash reserves divided by the total actual

routine expenses (line 6 divided by line 7). \$\_\_\_\_\_\_\_\_\_

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APPENDIX 7

Component #2, Option A. Annual Energy/Utility Consumption Expenses. This

option examines whether there are any increase in a PHA\'s
energy/utility

consumption expenses.

Verification Questions

1\. Total energy/utility cost in FY

for which adjustment is requested

(form HUD-52722B, line 13, column 3): \$\_\_\_\_\_\_\_\_\_

2\. Cost of estimated energy/utility

consumption at average rate (form HUD-52722B,

line 17, column 3): \$\_\_\_\_\_\_\_\_\_

3\. Costs of actual energy/utility consumption

divided by costs of estimated energy/utility

consumption (line 1 divided by line 2): \$\_\_\_\_\_\_\_\_\_

4\. Subtract 1.00 from line 3 and multiply by

100 to calculate the percentage of increase

or decrease.

For example: If line 3 equals 1.02, then 1.02 minus 1.00

equals .02 x 100 equals a 2% increase; or if line 3 equals

.98, then .98 minus 1.00 equals (.02) x 100 equals a 2%

decrease.

5\. Are consumption expenses consistent with

those shown on form HUD-52599 for:

\|\_\| Current year? \|\_\| Yes \|\_\| No

\|\_\| Three year rolling base years (derived from

State/Area files)? \|\_\| Yes \|\_\| No

6\. Review source documents; is the PHA\'s PHMAP

documentation supported by bills? \|\_\| Yes \|\_\| No\_

7\. Has the Management function for component #2,

option A, been assumed by an RMC/AME? \|\_\| Yes \|\_\| No

8\. Modification/exclusion requests:

\* All \"No\" answers should be explained below or attached.

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APPENDIX 7

Component #2. Option B. Energy Audit. This option examines

whether a PHA has conducted or updated its energy audit and has

implemented, or is in the process of implementing, all of the

cost effective recommendations.

Verification Questions Yes No\* N/A

1\. Does PHA have an energy audit on file

for each development?

\|\_\| Originated within the last five years?

\|\_\| Update within the last five years?

2\. Have cost effective energy conservation

measures (ECMS) been identified?

3\. Did PHA determine what is cost effective

and apply that standard to the ECMS?

4\. Have all cost effective ECMs been:

\|\_\| Implemented?

\|\_\| Scheduled?

5\. If all ECMs have not been implemented,

is the implementation plan on-schedule

and being followed?

6\. Has the Management function for component

#2, option B, been assumed by an RMC/AME?

7\. Modification/exclusion requests:

\* All \"No\" answers should be explained below or attached.

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APPENDIX 7

Indicator #6 Continued:

Summary

Component #1 Cash Reserves:

Initial Grade: \_\_\_\_\_ Component Grade: \_\_\_\_\_

Component #2A, Energy/Utility Consumption Expenses:

Initial Grade: \_\_\_\_\_ Component Grade: \_\_\_\_\_

Component #2B, Energy Audit:

Initial Grade: \_\_\_\_\_ Component Grade: \_\_\_\_\_

Overall Indicator:

Initial Grade: \_\_\_\_\_ Component Grade: \_\_\_\_\_

Reviewer:

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