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CITY OF ORANGE HOUSING SUCCESSOR
ORANGE, CALIFORNIA
Financial Statements
For the Year Ended June 30, 2023
Table of Contents
Page
Numb
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INDEPENDENT
AUDITORS’ REPORT
Financial Audit ..................................................................................................................................................... 1 Compliance Audit ................................................................................................................................................ 4
BASIC FINANCIAL STATEMENTS
Government-Wide Financial Statements:
Statement of Net Position .................................................................................................................................. 7 Statement of Activities ......................................................................................................................................... 8 Fund Financial Statements:
Balance Sheet – Governmental Funds ............................................................................................................. 9 Reconciliation of the Balances Sheet of Governmental Funds to the Statement of Net Position...................................................................................................................... 10 State of Revenues, Expenditures and Changes in Fund
Balances governmental Funds ........................................................................................................................ 11 Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities .......................................................... 12 Notes to the Financial Statements .................................................................................................................... 13
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule ...................................................................................................................... 18 Notes to the Required Supplementary Information ........................................................................................... 19
OTHER SUPPLEMENTARY INFORMATION
Computation of Low- and Moderate-Income Housing Funds Excess/Surplus .................................................. 20 ()RXUWK6WUHHW6XLWH
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Opinion
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Basis for Opinion
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6 CITY OF ORANGE
Housing Successor
Statement of Net Position
Governmental
Activities
ASSETS
Cash and investments 3,057,633$
Receivables (net of uncollectibles):
Accounts 1,001
Accrued interest 11,454
Notes and loans 14,240,247
Total assets 17,310,335
DEFERRED OUTFLOWS OF RESOURCES
Pension-related 24,321
OPEB-related 2,658
Total deferred outflows of resources 26,979
LIABILITIES
Accounts payable 10,575
Noncurrent liabilities:
Due in more than one year:
Net pension liability 20,610
Net OPEB liability 11,173
Total liabilities 42,358
DEFERRED INFLOWS OF RESOURCES
Pension-related 2,313
OPEB-related 3,413
Total deferred inflows of resources 5,726
NET POSITION
Restricted for housing 17,289,230
Total net position 17,289,230$
June 30, 2023
See accompanying notes to the financial statements.
7 CITY OF ORANGE
HOUSING SUCCESSOR
Statement of Activities
For the Year Ended June 30, 2023
Operating Capital
Charges for Contributions Contributions Governmental
Expenses Services and Grants and Grants Activities
Functions/Programs:
Primary government:
Governmental activities:
General government 21,600$ -$ 1,250,000$ -$ 1,228,400$ Community development 115,491 - - - (115,491) Economic development 5,919,405 - - - (5,919,405) Total governmental activities 6,056,496 - 1,250,000 - (4,806,496) General revenues and transfers:
General revenues:
Use of money and property 650,408
Total general revenues and transfers 650,408
Change in net position (4,156,088)
Net position-beginning 21,445,318
Net position-ending 17,289,230$
Program Revenues
Net (Expenses)
Revenues and
Changes in Net
Position
See accompanying notes to the financial statements.
8 CITY OF ORANGE
HOUSING SUCCESSOR
Balance Sheet
Governmental Fund
June 30, 2023
ASSETS
Cash and investments 3,057,633$
Receivables (net of allowance for uncollectible):
Accounts 1,001
Accrued interest 11,454
Notes and loans 14,240,247
Total assets 17,310,335$
LIABILITIES
Accounts payable 10,575$
Total liabilities 10,575
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 1,250,000
Total deferred inflows of resources 1,250,000
FUND BALANCE
Restricted for housing 16,049,760
Total fund balance 16,049,760
Total liabilities, deferred inflows of resources,
and fund balance 17,310,335$
See accompanying notes to financial statements.
9 HOUSING SUCCESSOR
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2023
Amounts reported for governmental activities in the Statement of Net Position are different because:
Total fund balances - governmental funds 16,049,760$
Deferred outflows-pension related 24,321
Deferred outflows-OPEB related 2,658
Deferred inflows-pension related (2,313)
Deferred inflows-OPEB related (3,413)
Total deferred outflows and inflows related to postretirement benefits 21,253 Long-term receivables 1,250,000
Total other long-term assets 1,250,000
Net pension liability (20,610)
Net OPEB liability (11,173)
Total long-term liabilities (31,783)
Net position of governmental activities 17,289,230$
Long-term liabilities that are not due and payable in the current period, and therefore, are not reported in the funds.
CITY OF ORANGE
Differences between expected and actual experiences, assumption changes and net differences between projected and actual earnings, and contributions subsequent to the measurement date for the postretirement benefits (pension and OPEB) are recognized as deferred outflows of resources and deferred inflows of resources on theStatement of Net Position.
Other long-term assets that are not available to pay for current period expenditures and, therefore, are either labeled unavailable or not reported in the funds.
See accompanying notes to the financial statements.
10 CITY OF ORANGE
HOUSING SUCCESSOR
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Fund
For the Year Ended June 30, 2023
REVENUES
Use of money and property 650,408$
Total revenues 650,408
EXPENDITURES
Current:
General government 21,600
Community development 115,491
Economic development 5,980,421
Total expenditures 6,117,512
Net change in fund balances (5,467,104)
Fund balance-beginning 21,516,864
Fund balance-ending 16,049,760$
See accompanying notes to financial statements.
11 HOUSING SUCCESSOR
Reconciliation of the Statement of Revenues, Expenses and Changes in Fund Balances of Governmental Funds to the Statement of Activities For the Year Ended June 30, 2023
Amounts reported for governmental activities in the Statement of Activities are different because:
Net change in fund balances - total governmental funds: (5,467,104)$ Earned but unavailable other revenues 1,250,000 $
Total adjustment 1,250,000
Changes in pension liabilities and related deferred outflows and inflows of resources (66,616) Changes in OPEB liabilities and related deferred outflows and i nflows of resources 127,632 Total adjustment 61,016
Change in net position of governmental activities (4,156,088) $ Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in the governmental funds.
CITY OF ORANGE
Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds.
See accompanying notes to the financial statements.
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17 Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
REVENUES
Use of money and property 85,341$ 1,384,503$ 650,408$ (734,095)$ Total revenues 85,341 1,384,503 650,408 (734,095)
EXPENDITURES
Current:
General government 26,981 16,981 21,600 (4,619) Community development 55,017 134,941 115,491 19,450 Economic development 48,078 624,078 5,980,421 (5,356,343) Total expenditures 130,076 776,000 6,117,512 (5,341,512) Net change in fund balance (44,735)$ 608,503$ (5,467,104) (6,075,607)$ Fund balance-beginning 21,516,864
Fund balance-ending 16,049,760$
CITY OF ORANGE
Housing Successor
Budgetary Comparison Schedule
For the Year Ended June 30, 2023
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19 CITY OF ORANGE HOUSING SUCCESSOR
Computation of Low-and Moderate- Income Housing Funds
Excess/Surplus
Opening Fund Balance 16,049,760$
Less Unavailable Amounts:
Loans receivable (14,240,247)
(14,240,247)
Available Housing Successor Funds 1,809,513
Limitation (greater of $1,000,000 or four years deposits) Aggregate amount deposited for last four years:
2022-2023 650,408$
2021-2022 81,742
2020-2021 1,030,623
2019-2020 707,554
Total 2,470,327$
Base Limitation 1,000,000$
Greater amount 2,470,327
Computed Excess/Surplus None A
A. No Excess Surplus was developed for fiscal year ended June 30, 2023. According to HSC 34176.1(d) if a housing successor has an excess surplus, the housing successor shall encumber theexcess surplus for the purposes as described in 34176.1 paragraph (3) of subdivision (a), or transfer these funds pursuant to 34176.1 paragraph (2), within three fiscal years, currently by June 30, 2025. If the housing successor fails to comply within this subdivision, the housing successor, within 90 days of the end of the third fiscal year, shall transfer any excess surplus to the Department of Housing and CommunityDevelopment for expenditure pursuant to the Multifamily Housing Program or the Joe Serna Jr. Farmworker Housing Grant Program.
Low and Moderate
All Project Area
July 1, 2023
Housing Funds
20