asset management update
DESCRIPTION
Asset Management Update. Julie Miles, Financial Analyst HUD-Kansas City, KS 913-551-5529. Agenda. New FDS New Proposed PHAS Asset Management Delay: PHAs With 250-400 Units. New FDS Format. AMP Level Financial Reporting - PowerPoint PPT PresentationTRANSCRIPT
Julie Miles, Financial AnalystHUD-Kansas City, KS
913-551-5529
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AgendaNew FDSNew Proposed PHASAsset Management Delay: PHAs With 250-
400 Units
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New FDS FormatAMP Level Financial ReportingOperating Fund and Capital Fund Reporting at AMP
Level vs. PHA Level1 Balance Sheet per AMP – Operating Fund & Capital Fund Combined
2 Income Statements per AMP – Operating Fund & Capital Fund Separate
New ColumnsAMP & COCC Columns Replace Low-Rent and CFP ColumnsElimination Column Subtracts Internal COCC/AMP
Transactions from Entity-Wide TotalsNew 5-Digit Line Number Format for Revenues &
Expenses3
New FDS Line Items & Detail LinksFDS Line Definition Guide October 2008
http://www.hud.gov/offices/reac/products/fass/fass_pdf/fds_ln_def_gd_2008.pdf
Fee Revenues & Fee Expenses Line ItemsExpense Line Items: Other Operating-Administrative,
Sewer, Insurance PremiumsMemo Accounts: Excess Cash & CFP Expenditure DataOrdinary Maintenance & Operations-Contract
Costs: Garbage & Trash Removal, Heating & Cooling, Snow Removal, Elevator Maintenance, Landscape & Grounds, Unit Turnaround, Electrical, Plumbing, Extermination, Janitorial, Routine Maintenance, Miscellaneous
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Transition Year Due DatesUnaudited – Normally Due 2 Months After FYE
6/30/08 , 9/30/08 & 12/31/08 Due 4/13/093/31/09 Due 6/30/09Federal Register Vol. 73, No. 163, 8/21/08 Docket FR-
5227-N-01Audited
Expect System to Be Open in AprilDue Dates Will Be Announced Once System OpenElectronically to REACPaper Copy to Field Office Financial Analyst
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New Proposed PHASStarting FYE 6/30/08First Year Transitional ScoresProposed Rule
http://www.hud.gov/offices/reac/products/phas/phasprule.pdf
First Year CFP Bonus Based on Previous PHAS Score
Scoring30 Physical Condition20 Financial Condition40 Management Operations10 CFP Management
No Resident Survey 6
Proposed Physical ConditionStill 30 pointsScored at AMP Level Instead of DevelopmentSame UPCS Inspection CriteriaFrequency Depends on AMP Score—Not PHA
Score
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Proposed Financial Condition20 pointsScored at AMP LevelMost Indicators Moved to Management
OperationsBased on Unaudited Financial Submission &
Adjusted for Audited Financial SubmissionPenalties
Significant Change Between Unaudited & Audited Financial Statements
Qualified, Adverse of Disclaimer of Audit OpinionAudit Findings
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Proposed Financial Condition (continued)3 Sub-Indicators
(1) Quick Ratio (QR) Formerly Current Ratio Current Assets ÷ Current Liabilities 9 points
(2) Months Expendable Net Assets Ratio (MENAR) Formerly Months Expendable Fund Balance (MEFB) (Current Assets - Current Liabilities) ÷ Average Monthly
Operating Expenses 9 points
(3) Debt Service Coverage Ratio (DSCR) Adjusted Operating Income ÷ Annual Debt Service If No Long-Term Debt, PHA Gets All Points 2 points 9
Proposed Management Operations40 pointsScored at AMP LevelScoring Adjustments – 1 Point Each
Physical Condition – Projects 28 Years & OlderNeighborhood Environment – 40% or More
Families Income Below Poverty Rate on Latest Census
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Proposed Management Operations (continued)HUD On-site Review Instead of PHA Self-
CertificationIncludes Items Previously Scored Under
Financial7 Sub-Indicators:
(1) General Appearance & Security 1.1 Appearance & Market Appeal (5 points) 1.2 Security (1 point)
(2) Follow-Up & Monitoring of Project Inspections 2.1 Exigent Health & Safety Deficiencies (not scored) 2.2 Lead-Based Paint Inspection Deficiencies (not scored)
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Proposed Management Operations (continued)7 Sub-Indicators (continued)
(3) Maintenance & Modernization 3.1 Unit Inspections (1 point) 3.2 Work Orders (3 points) 3.3 Preventive Maintenance (1 point) 3.4 Energy Conservation/Utility Consumption (1 point) 3.5 Modernization (not scored)
(4) Financial Management 4.1 Percentage of Accounts Payable (4 points) 4.2 Rent Collection (4 points) 4.3 Budget Management (not scored) 4.4 Procurement (not scored)
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Proposed Management Operations (continued)7 Sub-Indicators (continued)
(5) Leasing & Occupancy 5.1 Vacancy Rate (16 points) 5.2 Turnaround Time (2 points) 5.3 Occupancy Review (not scored)
(6) Tenant/Management Relations 6.1 Economic Self-Sufficiency (1 point) 6.2 Resident Involvement in Project Administration (1
point)(7) General Management Practices
7.1 Management Review Findings (not scored) 7.2 Other Prior Review Findings (not scored) 7.3 Insurance (not scored)
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Proposed CFP Management10 pointsScored at PHA-level, not AMPTime to Obligate & Expend CFP for Grants
with Fund Balances During Assessed Period
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Asset Management DelayPIH Notice 2008-162008 Appropriations Act
Section 225PHAs 250-400 PH UnitsElect to Delay AM Implementation 1 Year
Report FDS at PHA-Level, not AMP-Level Submit OpSub at AMP-Level, not PHA-Level
Excludes Stop-LossAssume Provision Will Continue in 2009
If Not Continued, Guidance Will Be Provided15