&,7<2)32021$&$/,)251,$
+286,1*$87+25,7<
-81( $8',75(3257
Attachment No.2
&,7<2)32021$&$/,)251,$
+286,1*$87+25,7<
$8',75(3257
-81(
Attachment No.2
CITY OF POMONA, CALIFORNIA
HOUSING AUTHORITY
AUDIT REPORT
JUNE 30, 2021
TABLE OF CONTENTS
Page
Number
Independent Auditors Report .................................................................................................................. 1
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position .......................................................................................................... 4 Statement of Activities ................................................................................................................ 5
Fund Financial Statements:
Balance Sheet - Governmental Fund ......................................................................................... 6
Reconciliation of the Balance Sheet of Governmental Fund to the Statement of Net Position ................................................................................................ 7
Statement of Revenues, Expenditures and Changes in Fund Balances - Governmental Fund ................................................................................................. 8
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Fund
to the Statement of Activities ..................................................................................................... 9
Notes to Financial Statements ........................................................................................................ 10
Required Supplementary Information
Budgetary Comparison Schedules:
Housing Authority Fund....................................... ..................................................................... 29 Housing Successor Special Revenue Fund....................... ...................................................... 30
Notes to the Budgetary Comparison Schedule .............................................................................. 31
Schedule of Authority’s Proportionate Share of Pension Liability and Related Ratios .................. 32
Schedule of Plan Contributions - Pension ...................................................................................... 34
Schedule of Authority’s Proportionate Share of Net Other Post-Employment Benefits Liability and Related Ratios ............................................................................................................ 35
Schedule of Plan Contributions - Other Post-Employment Benefits Plan ...................................... 37
Attachment No.2
203 N. Brea Blvd., Suite 203
Brea, CA 92821 Lance, Soll & Lunghard, LLP Phone: 714.672.0022
,1'(3(1'(17$8',7256¶5(3257
7RWKH%RDUGRI'LUHFWRUV
RIWKH&LW\RI3RPRQD+RXVLQJ$XWKRULW\
3RPRQD&DOLIRUQLD
5HSRUWRQWKH)LQDQFLDO6WDWHPHQWV
Opinions
:H KDYH DXGLWHG WKH DFFRPSDQ\LQJ ILQDQFLDO VWDWHPHQWV RI WKH JRYHUQPHQWDO DFWLYLWLHV DQG HDFK PDMRU IXQG RI WKH &LW\ RI 3RPRQD +RXVLQJ $XWKRULW\
WKH +RXVLQJ $XWKR ULW\
D FRPSRQHQW XQLW RI WKH
&LW\RI3RPRQD&DOLIRUQLD
WKH&LW\
DVRIDQGIRUWKH\HDUHQGHG-XQHDQGWKHUHODWHGQRWHVWR WKHILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH'LVWULFW¶VEDVLFILQDQFLDOVWDWHPHQWVDVOLVWHGLQWKH WDEOHRIFRQWHQWV
,Q RXU RSLQLRQ WKH ILQDQFLDO VWDWHPHQWV UHIHUUHG WR DERYH SUHV HQW IDLUO\ LQ DOO PDWHULDO UHVSHFWV WKH UHVSHFWLYHILQDQFLDOSRVLWLRQRIWKHJRYHUQPHQWDODFWLYLWLHVDQ GHDFKPDMRUIXQGRIWKH+RXVLQJ$XWKRULW\ DVRI-XQHDQGWKHUHVSHFWLYHFKDQJHVLQILQDQFLDOSRVLWLRQIRUWKH\HDUWKHQHQGHGLQDFFRUGDQFH ZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD Basis for Opinions
:H FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI$PHULFD
*$$6
DQGWKHVWDQGDUGVDSSOLFDEOHWRILQDQFLDODXG LWVFRQWDLQHGLQ Government Auditing Standards, LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV 2XU UHVSRQVLELOLWLHV XQGHU WKRVH VWDQGDUGVDUHIXUWKHUGHVFULEHGLQWKH$XGLWRU¶V5HVSRQVLELOLWL HVIRUWKH$XGLWRIWKH)LQDQFLDO6WDWHPHQWV VHFWLRQRIRXUUHSRUW:HDUHUHTXLUHGWREHLQGHSHQGHQWRIWK H+RXVLQJ$XWKRULW\DQGWRPHHWRXURWKHU HWKLFDO UHVSRQVLELOLWLHV LQ DFFRUGDQFH ZLWK WKH UHOHYDQW HWKLFDO UHTXLUHPHQWV UHODWLQJ WR RXU DXGLWV :H EHOLHYHWKDWWKHDXGLWHYLGHQFHZHKDYHREWDLQHGLVVXIILFLHQW DQGDSSURSULDWHWRSURYLGHDEDVLVIRURXU DXGLWRSLQLRQ
Responsibilities of Management for the Financial Statements
0DQDJHPHQW LV UHVSRQVLEOH IRU WKH SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQ RI WKHVH ILQDQFLDO VWDWHPHQWV LQ DFFRUGDQFH ZLWK DFFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD DQG IRU WKH
GHVLJQ LPSOHPHQWDWLRQ DQG PDLQWHQDQFH RI LQWHUQDO FRQWURO UHO HYDQW WR WKH SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQRIILQDQFLDOVWDWHPHQWVWKDWDUHIUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURU
,QSUHSDULQJWKHILQDQFLDOVWDWHPHQWVPDQDJHPHQWLVUHTXLUHGWRHYDOXDWHZKHWKHUWKHUHDUHFRQGLWLRQVRU HYHQWVFRQVLGHUHGLQWKHDJJUHJDWHWKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH+RXVLQJ$XWKRULW\¶VDELOLW\WR FRQWLQXHDVDJRLQJFRQFHUQIRUWZHOYHPRQWKVEH\RQGWKHGDWHRIWKHILQDQFLDOVWDWHPHQWV Attachment No.2
7RWKH%RDUGRI'LUHFWRUV
RIWKH&LW\RI3RPRQD+RXVLQJ$XWKRULW\
3RPRQD&DOLIRUQLD
Auditor’s Responsibilities for the Audit of the Financial Statements
2XUREMHFWLYHVDUHWRREWDLQUHDVRQDEOHDVVXUDQFHDERXWZKHWKHU WKHILQDQFLDOVWDWHPHQWVDVDZKROHDUH IUHHIURPPDWHULDOPLVVWDWHPHQWZKHWKHUGXHWRIUDXGRUHUURUDQGWRLVVXHDQDXGLWRU¶VUHSRUWWKDWLQFOXGHV RXURSLQLRQ5HDVRQDEOHDVVXUDQFHLVDKLJKOHYHORIDVVXUDQFHEXWLVQRWDEVROXWHDVVXUDQFHDQGWKHUHIRUH LV QRW D JXDUDQWHH WKDW DQ DXGLW FRQGXFWHG LQ DFFRUGDQFH ZLWK WKH *$$6 DQGGovernment Auditing StandardsZLOODOZD\VGHWHFWDPDWHULDOPLVVWDWHPHQWZKHQLWH[LVWV7K HULVNRIQRWGHWHFWLQJDPDWHULDO PLVVWDWHPHQWUHVXOWLQJIURPIUDXGLVKLJKHUWKDQIRURQHUHVXOWLQJIURPHUURUDVIUDXGPD\LQYROYHFROOXVLRQ IRUJHU\ LQWHQWLRQDO RPLVVLRQV PLVUHSUHVHQWDWLRQV RU WKH RYHUULGH RI LQWHUQDO FRQWURO 0LVVWDWHPHQWV DUH FRQVLGHUHG PDWHULDO LI WKHUH LV D VXEVWDQWLDO OLNHOLKRRG WKDW LQGLYLGXDOO\ RU LQ WKH DJJUHJDWH WKH\ ZRXOG LQIOXHQFHWKHMXGJPHQWPDGHE\DUHDVRQDEOHXVHUEDVHGRQWKHILQDQFLDOVWDWHPHQWV
,QSHUIRUPLQJDQDXGLWLQDFFRUGDQFHZLWK*$$6DQGGovernment Auditing StandardsZH
x ([HUFLVHSURIHVVLRQDOMXGJPHQWDQGPDLQWDLQSURIHVVLRQDOVNHSW LFLVPWKURXJKRXWWKHDXGLW x ,GHQWLI\DQGDVVHVVWKHULVNVRIPDWHULDOPLVVWDWHPHQWRIWKH ILQDQFLDOVWDWHPHQWVZKHWKHUGXHWR IUDXGRUHUURUDQGGHVLJQDQGSHUIRUPDXGLWSURFHGXUHVUHVSRQVLYHWRWKRVHULVNV6XFKSURFHGXUHV LQFOXGHH[DPLQLQJRQDWHVWEDVLVHYLGHQFHUHJDUGLQJWKHDPRXQWVDQGGLVFORVXUHVLQWKHILQDQFLDO VWDWHPHQWV
x 2EWDLQDQXQGHUVWDQGLQJRILQWHUQDOFRQWUROUHOHYDQWWRWKHDXGLWLQRUGHUWRGHVLJQDXGLWSURFHGXUHV WKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHVEXWQRWIRUWKHSXUS RVHRIH[SUHVVLQJDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH+RXVLQJ$XWKRULW\¶VLQWHUQDOFRQWURO$FFRUGLQJO\QRVXFKRSLQLRQLVH[SUHVVHG x (YDOXDWH WKH DSSURSULDWHQHVV RI DFFRXQWLQJ SROLFLHV XVHG DQG WKH UHDVRQDEOHQHVV RI VLJQLILFDQW DFFRXQWLQJHVWLPDWHVPDGHE\PDQDJHPHQWDVZHOODVHYDOXDWHWK HRYHUDOOSUHVHQWDWLRQRIWKH ILQDQFLDOVWDWHPHQWV
x &RQFOXGHZKHWKHULQRXUMXGJPHQWWKHUHDUHFRQGLWLRQVRUHYH QWVFRQVLGHUHGLQWKHDJJUHJDWH WKDWUDLVHVXEVWDQWLDOGRXEWDERXWWKH+RXVLQJ$XWKRULW\¶VDELOLW\WRFRQWLQXHDVDJRLQJFRQFHUQIRU DUHDVRQDEOHSHULRGRIWLPH
:HDUHUHTXLUHGWRFRPPXQLFDWHZLWKWKRVHFKDUJHGZLWKJRYHUQDQFHUHJDUGLQJDPRQJRWKHUPDWWHUVWKH SODQQHGVFRSHDQGWLPLQJRIWKHDXGLWVLJQLILFDQWDXGLWILQGLQJVDQGFHUWDLQLQWHUQDOFRQWUROUHODWHGPDWWHUV WKDWZHLGHQWLILHGGXULQJWKHDXGLW
Other Reporting Responsibilities
Required Supplementary Information
$FFRXQWLQJ SULQFLSOHV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI $PHULFD UHTXLUH WKDW WKH %XGJHWDU\ &RPSDULVRQ6FKHGXOHVWKH6FKHGXOHRI3URSRUWLRQDWH6KDUHRI1HW3HQVLRQ/LDELOLW\DQG5HODWHG5DWLRV WKH 6FKHGXOH RI &RQWULEXWLRQV ± 3HQVLRQV WKH 6FKHGXOH RI 3URSR UWLRQDWH 6KDUH RI 7RWDO 2WKHU 3RVWHPSOR\PHQW %HQHILWV /LDELOLW\ DQG 5HODWHG 5DWLRV DQG 6FKHG XOH RI &RQWULEXWLRQV ±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¶VUHVSRQVHV WRRXULQTXLULHVWKHEDVLFILQDQFLDOVWDWHPHQWVDQGRWKHUNQR ZOHGJHZHREWDLQHGGXULQJRXUDXGLWRIWKH EDVLF ILQDQFLDO VWDWHPHQWV :H GR QRW H[SUHVV DQ RSLQLRQ RU SURYLGH DQ\ DVVXUDQFH RQ WKH LQIRUPDWLRQ EHFDXVHWKHOLPLWHGSURFHGXUHVGRQRWSURYLGHXVZLWKVXIILFLHQWHYLGHQFHWRH[SUHVVDQRSLQLRQRUSURYLGH DQ\DVVXUDQFH
2 Attachment No.2
7RWKH%RDUGRI'LUHFWRUV
RIWKH&LW\RI3RPRQD+RXVLQJ$XWKRULW\
3RPRQD&DOLIRUQLD
0DQDJHPHQWKDVRPLWWHGWKHPDQDJHPHQW¶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overnment Auditing Standards
,Q DFFRUGDQFH ZLWK Government Auditing Standards , ZH KDYH DOVR LVVXHG RXU UHSRUW GDWHG -DQXDU\RQRXUFRQVLGHUDWLRQRIWKH+RXVLQJ$XWKRULW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQG RQRXUWHVWVRILWVFRPSOLDQFHZLWKFHUWDLQSURYLVLRQVRIODZVUHJXODWLRQVFRQWUDFWVDQGJUDQWDJUHHPHQWV DQGRWKHUPDWWHUV7KHSXUSRVHRIWKDWUHSRUWLVVROHO\WRGHVFULEHWKHVFRSHRIRXUWHVWLQJRILQWHUQDOFRQWURO RYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFHDQGWKHUHVXOWVRIWKDWWHVWLQJDQGQRWWRSURYLGHDQRSLQLRQRQWKH HIIHFWLYHQHVVRIWKH$XWKRULW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJRURQFRPSOLDQFH7KDWUHSRUWLVDQ LQWHJUDOSDUWRIDQDXGLWSHUIRUPHGLQDFFRUGDQFHZLWK Government Auditing Standards LQFRQVLGHULQJ WKH$XWKRULW\¶VLQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJDQGFRPSOLDQFH
%UHD&DOLIRUQLD
-DQXDU\
3 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
STATEMENT OF NET POSITION
JUNE 30, 2021
Governmental
Activities
Assets:
Cash and investments 3,910,121$
Receivables (net):
Accounts 253,434
Notes and loans 10,665,819
Interest 6,840
Due from other governments 2,390,337
Land held for resale 4,490,541
Restricted assets:
Cash and investments 1,168,251
Capital assets, not being depreciated 15,135,969
Capital assets, net of depreciation 22,740
Total Assets 38,044,052
Deferred Outflows of Resources:
Deferred outflows of resources related to pension 459,100 Deferred outflows of resources related to other postemployment benefits 445,402 Total Deferred Outflows
of Resources 904,502
Liabilities:
Accounts payable 525,738
Payroll payable 58,380
Accrued liabilities 233,641
Unearned revenue 486,667
Deposits payable 32,046
Noncurrent liabilities:
Compensated absences, Due within one year 175,000
Compensated absences, Due in more than one year 156,320 Net pension liability 3,844,201
Total other postemployment benefits liability 3,372,383 Total Liabilities 8,884,376
Deferred Inflows of Resources:
Deferred inflows of resources related to pension 39,281 Deferred inflows of resources related to other postemployment benefits 47,076 Total Deferred Inflows
of Resources 86,357
Net Position:
Invested in capital assets 15,158,709
Restricted for:
Urban development 14,819,112
Total Net Position 29,977,821$
See Notes to Financial Statements.
4 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Governmental
Activities
Net (Expense)
Operating Capital Revenue
Charges for Contributions Contributions and Changes
Expenses Services and Grants and Grants in Net Position Functions/Programs
Primary Government:
Governmental Activities:
Urban development 22,310,525$ 18,786$ 22,453,695$ -$ 161,956$ Total Governmental Activities 22,310,525$ 18,786 $ 22,453,695$ - $ 161,956 General Revenues:
Interest and rentals 497,763
Miscellaneous 156,385
Total General Revenues 654,148
Change in Net Position 816,104
Net Position, Beginning of Year 29,161,717
Net Position, End of Year 29,977,821$
Program Revenues
See Notes to Financial Statements.
5 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2021
Housing Successor
Housing Authority Special Revenue
Fund Fund Total
Assets:
Cash and investments 699,903$ 3,210,218 $ 3,910,121$ Receivables (net):
Accounts 248,790 4,644 253,434 Notes and loans - 10,665,819 10,665,819 Interest 642 6,198 6,840 Due from other governments 2,390,337 - 2,390,337 Land held for resale - 4,490,541 4,490,541 Restricted assets:
Cash with fiscal agent 230,988 937,263 1,168,251 Total Assets 3,570,660$ 19,314,683$ 22,885,343$ Liabilities, Deferred Inflows
of Resources and Fund Balances:
Liabilities:
Accounts payable 511,140$ 14,598 $ 525,738$ Payroll payable 47,762 10,618 58,380 Accrued liabilities 233,641 - 233,641 Deposits payable 8,671 23,375 32,046 Unearned revenue 486,667 - 486,667 Total Liabilities 1,287,881 48,591 1,336,472 Deferred Inflows of Resources:
Unavailable revenues 1,077,598 1,869,332 2,946,930 Total Deferred Inflows of Resources 1,077,598 1,869,332 2,946,930 Fund Balances:
Restricted
Urban development 1,205,181 17,396,760 18,601,941 Total Fund Balances 1,205,181 17,396,760 18,601,941 Total Liabilities, Deferred Inflows
of Resources and Fund Balances: 3,570,660$ 19,314,683$ 22,885,343$ See Notes to Financial Statements.
6 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUND
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Fund Balances of Governmental Fund 18,601,941$
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets net of depreciation have not been included as financial resources in governmental fund activity. 15,158,709
Compensated absences that have not been included in the governmental activity (331,320) Net pension liability and related deferred outflows and inflows of resources are not due and payable in the current period; therefore, are not reported as government fund's liabilities. They are reported in Statement of Net Position:
Deferred outflows related to pension related items 459,100$ Net Pension liability (3,844,201)
Deferred inflows related to pension related items (39,281) (3,424,382) Total other postemployment benefits liability and related deferred outflows of resources are not due and payable in the current period; therefore, are not reported as government funds' liabilities. There are reported in the Statement of Net Position:
Deferred outflows related to other postemployment benefits related items 445,402 Net other postemployment benefits liability (3,372,383) Deferred inflows related to other postemployment benefits related items (47,076) (2,974,057) Revenues reported as unavailable revenues in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. 2,946,930
Net Position of Governmental Activities 29,977,821$
See Notes to Financial Statements.
7 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
YEAR ENDED JUNE 30, 2021
Housing Successor
Housing Authority Special Revenue
Fund Fund Total
Revenues:
Intergovernmental 21,738,094$ 35,630$ 21,773,724$ Charges for services - 18,786 18,786 Interest and rentals 129,440 368,323 497,763 Contributions - 182,425 182,425 Miscellaneous 2,204 154,181 156,385 Total Revenues 21,869,738 759,345 22,629,083 Expenditures:
Current:
Urban development 20,274,179 1,032,708 21,306,887 Capital outlay - 54,119 54,119 Total Expenditures 20,274,179 1,086,827 21,361,006 Net Change in Fund Balances 1,595,559 (327,482) 1,268,077 Fund Balance:
Beginning of year (390,378) 17,724,242 17,333,864 End of Year 1,205,181$ 17,396,760$ 18,601,941$ See Notes to Financial Statements.
8 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUND
TO THE STATEMENT OF ACTIVITIES
YEAR ENDED JUNE 30, 2021
Net Change in Fund Balances - Total Governmental Fund 1,268,077 $ Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures. However, in the Statement of Activities, the costs of those assets is allocated over their estimated useful lives as depreciation expense. This is the amount by which capital outlays exceeded depreciation in the current period:
Capital outlay 54,119$
Depreciation (6,912) 47,207
Other postemployment benefits expense adjustment, which is the net change in total other postemployment benefit liabilities and related deferred outflows and inflows of resources. (321,003)
Compensated absences expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (79,973)
Pension obligation expenses are expenditures in the governmental funds, but reduce the net pension liability in the statement of net position. (595,750) Revenues reported as unavailable revenue in the governmental funds and recognized in the Statement of Activities. These are included in the intergovernmental revenues in the governmental fund activity. 497,546
Change in Net Position of Governmental Activities 816,104$ See Notes to Financial Statements.
9 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
7KHILQDQFLDOVWDWHPHQWVRIWKH&LW\RI3RPRQD+RXVLQJ$XWKRULW \ WKH+RXVLQJ$XWKRULW\
D
FRPSRQHQWXQLWRIWKH&LW\RI3RPRQD&DOLIRUQLD
WKH&LW\
KDYHEHHQSUHSDUHGLQFRQIRUPLW\
ZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJSULQFLSOHV
*$$3
DVDSSOLHG WRJRYHUQPHQWDODJHQFLHV
7KH *RYHUQPHQWDO $FFRXQWLQJ 6WDQGDUGV %RDUGV
*$6%
LV WKH DFFHSWHG VWDQGDUG VHWWLQJ
ERG\IRUHVWDEOLVKLQJJRYHUQPHQWDODFFRXQWLQJDQGILQDQFLDOUHSRUWLQJSULQFLSOHV7KH+RXVLQJ $XWKRULW\¶VVLJQLILFDQWDFFRXQWLQJSROLFLHVDUHGHVFULEHGEHORZ
'HVFULSWLRQRIWKH5HSRUWLQJ(QWLW\
7KH &LW\ RI 3RPRQD +RXVLQJ $XWKRULW\
WKH +RXVLQJ $XWKRULW\
ZDV RUJDQL]HG LQ
XQGHUWKH&DOLIRUQLD+HDOWKDQG6DIHW\&RGH7KHREMHFWLYHVRI WKH+RXVLQJ$XWKRULW\DUH WRDLGORZLQFRPHIDPLOLHVLQREWDLQLQJGHFHQWVDIHDQGVDQLWD U\KRXVLQJWKURXJKIHGHUDO DVVLVWDQFHSURJUDPVDQGORZPRGHUDWHLQFRPHKRXVLQJSURJUDPV7KH+RXVLQJ$XWKRULW\ ZDVLQFOXGHGZLWKLQWKHVFRSHRIWKHUHSRUWLQJHQWLW\RIWKH&LW\EHFDXVHLWVJRYHUQLQJERG\ LVFRPSRVHGLQLWVHQWLUHW\RIFRXQFLOPHPEHUVRIWKH&LW\
$V SDUW RI WKH 6WDWH EXGJHW ELOO WKH &DOLIRUQLD /HJLVODWXUH HQDFWHG DQG WKH *RYHUQRU VLJQHG FRPSDQLRQ ELOOV $% ,; DQG $% ,; UHTXLUL QJ WKDW HDFK UHGHYHORSPHQW DJHQF\ EH GLVVROYHG XQOHVV WKH FRPPXQLW\ WKDW FUH DWHG LW HQDFWV DQ RUGLQDQFHFRPPLWWLQJLWWRPDNLQJFHUWDLQSD\PHQWV2Q'HFHPEHU WKH&DOLIRUQLD
6XSUHPH&RXUWXSKHOG$%,;LQYDOLGDWHG$%,;DQGH[WHQGHGDOOVWDWXWRU\GHDGOLQHV XQGHU $% ,; HVVHQWLDOO\ GLVVROYLQJDOO UHGHYHORSPHQW DJHQFLHV WKURXJKRXW WKH 6WDWH HIIHFWLYH)HEUXDU\$%,;SURYLGHGWKDWFLWLHVPXVWGHFLGHZKHWKHUWRUHWDLQWKH DIIRUGDEOHKRXVLQJIXQFWLRQRIWKH$JHQF\
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
WKH +RXVLQJ 6XFFHVVRU $JHQF\
WR WKH ORZ DQG
PRGHUDWHLQFRPHKRXVLQJIXQFWLRQVRIWKH$JHQF\
*$6%6WDWHPHQW1R The Financial Reporting Entity – Omnibus – An Amendment of GASB Statements No. 14 and No. 34GHILQHVWKHILQDQFLDOUHSRUWLQJHQWLW\DVWKHSULPDU\ JRYHUQPHQWDQGRUJDQL]DWLRQVIRUZKLFKWKHSULPDU\JRYHUQPHQWLVILQDQFLDOO\DFFRXQWDEOH )LQDQFLDODFFRXQWDELOLW\UHTXLUHVWKDW
WKHSULPDU\JRYHUQPH QWDQGWKHFRPSRQHQWXQLW
KDYHDILQDQFLDOEHQHILWRUEXUGHQUHODWLRQVKLSRU
PDQDJHPHQW
EHORZWKHOHYHORIWKH
HOHFWHGRIILFLDOV
RIWKHSULPDU\JRYHUQPHQWKDYHRSHUDWLRQDOUHVSRQVLELOLW\IRUWKHDFWLYLWLHV RIWKHFRPSRQHQWXQLW6LQFHPHPEHUVRI&LW\VWDIIDOVRVHUYHDVWKH%RDUGRI'LUHFWRUVRI WKH+RXVLQJ$XWKRULW\WKH&LW\LQHIIHFWKDVWKHDELOLW\WRLQIOXHQFHDQGFRQWURORSHUDWLRQV ,QDGGLWLRQWKH&LW\KDVRYHUVLJKWUHVSRQVLELOLW\IRUWKH+RXVLQJ$XWKRULW\$FFRUGLQJO\WKH ILQDQFLDO VWDWHPHQWV RI WKH +RXVLQJ $XWKRULW\ DUH LQFOXGHG LQ WKH &LW\¶V &RPSUHKHQVLYH $QQXDO)LQDQFLDO5HSRUW7KH+RXVLQJ$XWKRULW\KDVWKHVDPHILVFDO\HDUDVWKH&LW\7KH &RPSUHKHQVLYH $QQXDO )LQDQFLDO 5HSRUW RI WKH &LW\ FDQ EH REWDLQHG IURP WKH )LQDQFH 'HSDUWPHQWRIWKH&LW\
10 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
&RQWLQXHG
%DVLVRI$FFRXQWLQJDQG0HDVXUHPHQW)RFXV
7KHDFFRXQWVRIWKH+RXVLQJ$XWKRULW\DUHRUJDQL]HGRQWKHEDVLVRIIXQGVHDFKRIZKLFK LVFRQVLGHUHGDVHSDUDWHDFFRXQWLQJHQWLW\7KHRSHUDWLRQVRIHDFKIXQGDUHDFFRXQWHGIRU ZLWK D VHSDUDWH VHW RI VHOIEDODQFLQJ DFFRXQWV WKDW FRPSULVH LWV DVVHWV OLDELOLWLHV IXQG EDODQFH UHYHQXHV DQG H[SHQGLWXUHV DV DSSURSULDWH *RYHUQPHQW DO UHVRXUFHV DUH DOORFDWHGWRDQGDFFRXQWHGIRULQLQGLYLGXDOIXQGVEDVHGXSRQWKHSXUSRVHVIRUZKLFKWKH\ DUHWREHVSHQWDQGWKHPHDQVE\ZKLFKVSHQGLQJDFWLYLWLHVDUHFRQWUROOHG
*RYHUQPHQW:LGH)LQDQFLDO6WDWHPHQWV
7KH+RXVLQJ$XWKRULW\¶VJRYHUQPHQWZLGHILQDQFLDOVWDWHPHQWVLQFOXGHD6WDWHPHQWRI 1HW3RVLWLRQDQGD6WDWHPHQWRI$FWLYLWLHVDQG&KDQJHVLQ1HW3RVLWLRQ7KHVHILQDQFLDO VWDWHPHQWVSUHVHQWVXPPDULHVRIDFWLYLWLHVIRUWKH+RXVLQJ$XWKRULW\
7KHVHILQDQFLDOVWDWHPHQWVDUHSUHVHQWHGRQDQ “economic resources” PHDVXUHPHQW IRFXV DQG WKH DFFUXDO EDVLV RI DFFRXQWLQJ 7KH 6WDWHPHQW RI $FWLYLWLHV SUHVHQWV FKDQJHV LQ QHW SRVLWLRQ 8QGHU WKH DFFUXDO EDVLV RI DFFRXQWLQJ UHYHQXHV DUH UHFRJQL]HGLQWKHSHULRGLQZKLFKWKH\DUHHDUQHGZKLOHH[SHQVHVDUHUHFRJQL]HGLQ WKHSHULRGLQZKLFKWKHOLDELOLW\LVLQFXUUHG
*RYHUQPHQWDO)XQG)LQDQFLDO6WDWHPHQWV
*RYHUQPHQWDOIXQGILQDQFLDOVWDWHPHQWVLQFOXGHD%DODQFH6KHHW DQGD6WDWHPHQWRI 5HYHQXHV([SHQGLWXUHVDQG&KDQJHVLQ)XQG%DODQFHIRUDOOJRYHUQPHQWDOIXQGV$OO JRYHUQPHQWDOIXQGVDUHDFFRXQWHGIRUXVLQJWKHPRGLILHGDFFUXDOEDVLVRIDFFRXQWLQJ $FFRUGLQJO\ RQO\ FXUUHQW DVVHWV DQG FXUUHQW OLDELOLWLHV DUH LQFOXGHG RQ WKH EDODQFH VKHHWV 7KH 6WDWHPHQW RI 5HYHQXHV ([SHQGLWXUHV DQG &KDQJHV LQ)XQG %DODQFH SUHVHQWV LQFUHDVHV
UHYHQXHV DQG RWKHU ILQDQFLQJ VRXUFHV
DQG GHFUHDVHV
H[SHQGLWXUHVDQGRWKHUILQDQFLQJXVHV
LQQHWFXUUHQWDVVHWV
7KH+RXVLQJ$XWKRULW\UHSRUWVWKHIROORZLQJWZRPDMRUJRYHUQPHQWDOIXQGV
x 7KH +RXVLQJ $XWKRULW\ )XQG LV WKH PDLQ RSHUDWLQJ IXQG IRU WKH +RXVLQJ $XWKRULW\ DQG DFFRXQWV IRU DLG WR ORZLQFRPH IDPLOLHV LQ REWDLQLQJ GHFHQWVDIHDQGVDQLWDU\KRXVLQJWKURXJKIHGHUDODVVLVWDQFHSU RJUDPVDQG ORZPRGHUDWHLQFRPHKRXVLQJSURJUDPV
x 7KH+RXVLQJ6XFFHVVRU6SHFLDO5HYHQXHIXQGLVWRDFFRXQWIRUWKHORZDQG PRGHUDWHLQFRPHKRXVLQJIXQFWLRQVRIWKHIRUPHU5HGHYHORSPHQW$JHQF\
8QGHU WKH PRGLILHG DFFUXDO EDVLV RI DFFRXQWLQJ UHYHQXHV DUH UH FRJQL]HG LQ WKH DFFRXQWLQJ SHULRG LQ ZKLFK WKH\ EHFRPH ERWK PHDVXUDEOH DQG DYDLODEOH WR ILQDQFH H[SHQGLWXUHVRIWKHFXUUHQWSHULRG$FFRUGLQJO\UHYHQXHVDUHUHFRUGHGZKHQUHFHLYHG LQFDVKH[FHSWWKDWUHYHQXHVVXEMHFWWRDFFUXDO
JHQHUDOO\GD\VDIWHU\HDUHQG
DUH
UHFRJQL]HGZKHQGXH([SHQGLWXUHVDUHUHFRUGHGLQWKHDFFRXQWLQJSHULRGLQZKLFKWKH UHODWHGIXQGOLDELOLW\LVLQFXUUHG
8QDYDLODEOH UHYHQXH DULVHV ZKHQ SRWHQWLDO UHYHQXHV GR QRW PHHW ERWK WKH ³measurable´ DQG ³available´ FULWHULD IRU UHFRJQLWLRQ LQ WKH FXUUHQW SHULRG 8QHDUQHG UHYHQXHDULVHVZKHQWKHJRYHUQPHQWUHFHLYHVUHVRXUFHVEHIRUHLWKDVDOHJDOFODLP 11 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
&RQWLQXHG
WRWKHPDVZKHQJUDQWPRQLHVDUHUHFHLYHGSULRUWRLQFXUULQJTXDOLI\LQJH[SHQGLWXUHV ,Q VXEVHTXHQW SHULRGV ZKHQ ERWK UHYHQXH UHFRJQLWLRQ FULWHULD DUH PHW RU ZKHQ WKH JRYHUQPHQWKDVDOHJDOFODLPWRWKHUHVRXUFHVWKHXQDYDLODEOHUHYHQXHDQGXQHDUQHG UHYHQXHDUHUHPRYHGIURPWKHEDODQFHVKHHWDQGUHYHQXHLVUHFRJQL]HG
5HFRQFLOLDWLRQVRIWKH)XQG)LQDQFLDO6WDWHPHQWVWRWKH*RYHUQP HQW:LGH)LQDQFLDO 6WDWHPHQWVDUHSURYLGHGWRH[SODLQWKHGLIIHUHQFHVFUHDWHGE\WKHLQWHJUDWHGDSSURDFK RI*$6%6WDWHPHQW1R
&DVKDQG,QYHVWPHQWV
7KH +RXVLQJ $XWKRULW\¶V FDVK DQG LQYHVWPHQWV FRQVLVW RI FDVK DQG LQYHVWPHQWV SRROHG ZLWKWKH&LW\7KH+RXVLQJ$XWKRULW\FDVKEDODQFHLVSRROHGZLW KYDULRXVRWKHU&LW\IXQGV IRU GHSRVLW DQG LQYHVWPHQW SXUSRVHV 7KH VKDUH RI HDFK IXQG LQ WKH SRROHG FDVK LV VHSDUDWHO\PDLQWDLQHGDQGLQWHUHVWLQFRPHLVDSSRUWLRQHGWRWKHSDUWLFLSDWLQJIXQGVEDVHG RQWKHUHODWLRQVKLSVRIWKHLUDYHUDJHTXDUWHUHQGFDVKEDODQFHV WRWKHWRWDORIWKHSRROHG FDVKDQGLQYHVWPHQWV
3UHSDLG,WHPV
&HUWDLQSD\PHQWVWRYHQGRUVUHIOHFWFRVWVDSSOLFDEOHWRIXWXUHDFFRXQWLQJSHULRGVDQGDUH UHFRUGHGDVSUHSDLGLWHPVLQERWKJRYHUQPHQWZLGHDQGIXQGILQDQFLDOVWDWHPHQWV
/DQG+HOGIRU5HVDOH
/DQGSXUFKDVHGIRUUHVDOHLVFDSLWDOL]HGDVLQYHQWRU\DWDFTXLVLWLRQFRVWVRUQHWUHDOL]DEOH YDOXH
&DSLWDO$VVHWV
&DSLWDODVVHWVZKLFKLQFOXGHODQGFRQVWUXFWLRQLQSURJUHVVEXLOGLQJVDQGLPSURYHPHQWV LPSURYHPHQWV RWKHU WKDQ EXLOGLQJV PDFKLQHU\ DQG HTXLSPHQW DXW RV DQG WUXFNV HTXLSPHQW XQGHUFDSLWDOL]HG OHDVH DQG LQIUDVWUXFWXUH DVVHWV HJ URDGV EULGJHV WUDIILF
VLJQDOV DQG VLPLODU LWHPV
DUH UHSRUWHG LQ WKH *RYHUQPHQW:LGH )LQDQFLDO 6WDWHPHQWV 7KH +RXVLQJ $XWKRULW\¶V SROLF\ KDV VHW WKH FDSLWDOL]DWLRQ WKUHVKROG IRU UHSRUWLQJ FDSLWDO DVVHWVDWDQGFDSLWDOSURMHFWVDW
&DSLWDODVVHWVDUHYDOXHGDWKLVWRULFDOFRVWRUHVWLPDWHGKLVWR ULFDOFRVWLIDFWXDOKLVWRULFDO FRVWZDVQRWDYDLODEOH'RQDWHGDVVHWVDUHYDOXHGDWWKHLUHVWL PDWHGIDLUPDUNHWYDOXHRQ WKHGDWHGRQDWHG
'HSUHFLDWLRQLVUHFRUGHGRQDVWUDLJKWOLQHEDVLVRYHUHVWLPDWH GXVHIXOOLYHVRIWKHDVVHWV DVIROORZV
$VVHWV <HDUV
%XLOGLQJVDQGEXLOGLQJLPSURYHPHQWV
,PSURYHPHQWVRWKHUWKDQEXLOGLQJV
0DFKLQHU\DQGHTXLSPHQW
)XUQLWXUHDQGIL[WXUHV
$XWRVDQGWUXFNV
(TXLSPHQWXQGHUFDSLWDOL]HGOHDVH
,QIUDVWUXFWXUH
12 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
&RQWLQXHG
0DMRU RXWOD\V IRU FDSLWDO DVVHWV DQG LPSURYHPHQWV DUH FDSLWDOL]HG DV SURMHFWV DUH FRQVWUXFWHG
'HIHUUHG2XWIORZV,QIORZVRI5HVRXUFHV
,Q DGGLWLRQ WR DVVHWV WKH 6WDWHPHQW RI )LQDQFLDO 3RVLWLRQ DQGWKH *RYHUQPHQWDO )XQG %DODQFH6KHHWUHSRUWDVHSDUDWHVHFWLRQIRUGHIHUUHGRXWIORZVRIUHVRXUFHV7KLVVHSDUDWH ILQDQFLDOVWDWHPHQWHOHPHQWGHIHUUHGRXWIORZVRIUHVRXUFHVUHSUHVHQWVDFRQVXPSWLRQRI QHWSRVLWLRQRUIXQGEDODQFHWKDWDSSOLHVWRDIXWXUHSHULRGDQGVRZLOOQRWEHUHFRJQL]HGDV DQRXWIORZRIUHVRXUFHV
H[SHQVHH[SHQGLWXUH
XQWLOWKHQ7KHJRYHUQPHQWUHSRUWVGHIHUUHG
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
,Q DGGLWLRQ WR OLDELOLWLHV WKH 6WDWHPHQW RI )LQDQFLDO 3RVLWLRQ DQG *RYHUQPHQWDO )XQG %DODQFH6KHHWUHSRUWDVHSDUDWHVHFWLRQIRUGHIHUUHGLQIORZVRI UHVRXUFHV7KLVVHSDUDWH ILQDQFLDOVWDWHPHQWHOHPHQWGHIHUUHGLQIORZVRIUHVRXUFHVUHSUHVHQWVDQDFTXLVLWLRQRIQHW SRVLWLRQRUIXQGEDODQFHWKDWDSSOLHVWRDIXWXUHSHULRGDQGVRZLOOQRWEHUHFRJQL]HGDVDQ LQIORZRIUHVRXUFHV
UHYHQXH
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
/RQJ7HUP2EOLJDWLRQV
,Q WKH *RYHUQPHQW:LGH )LQDQFLDO 6WDWHPHQWV ORQJWHUP GHEW DQG RWKHU ORQJWHUP REOLJDWLRQVDUHUHSRUWHGDVOLDELOLWLHVLQWKHDSSOLFDEOHJRYHUQPHQWDODFWLYLWLHV
7KH)XQG)LQDQFLDO6WDWHPHQWVGRQRWSUHVHQWORQJWHUPGHEW$FFRUGLQJO\ORQJWHUPGHEW LV VKRZQ DVD UHFRQFLOLQJLWHP LQ WKH 5HFRQFLOLDWLRQRI WKH *RYHUQPHQWDO )XQG %DODQFH 6KHHWWRWKH*RYHUQPHQWDO:LGH6WDWHPHQWRI1HW3RVLWLRQ
&RPSHQVDWHG$EVHQFHV
,QJRYHUQPHQWDOIXQGVFRPSHQVDWHGDEVHQFHVDUHUHFRUGHGDVH[SHQGLWXUHVLQWKH\HDUV SDLGDVLWLVWKH&LW\¶VSROLF\WROLTXLGDWHDQ\XQSDLGFRPSHQ VDWHGDEVHQFHVDW-XQH IURPIXWXUHUHVRXUFHVUDWKHUWKDQFXUUHQWO\DYDLODEOHILQDQFLDOUHVRXUFHV
13 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
&RQWLQXHG
3HQVLRQ3ODQ2EOLJDWLRQV
)RU SXUSRVHV RI PHDVXULQJ WKH QHW SHQVLRQ OLDELOLW\ GHIHUUHG RXWIORZV DQG LQIORZV RI UHVRXUFHVUHODWHGWRSHQVLRQVDQGSHQVLRQH[SHQVHLQIRUPDWLRQ DERXWWKHILGXFLDU\QHW SRVLWLRQDQGDGGLWLRQVWRGHGXFWLRQVIURPWKHILGXFLDU\QHWSRVLWLRQKDYHEHHQGHWHUPLQHG RQWKHVDPHEDVLVDVWKH\DUHUHSRUWHGE\WKH&DO3(56)LQDQFLDO2IILFH)RUWKLVSXUSRVH EHQHILW SD\PHQWV
LQFOXGLQJ UHIXQGV RI HPSOR\HH FRQWULEXWLRQV
DUH UHFRJQL]HG ZKHQ
FXUUHQWO\GXHDQGSD\DEOHLQDFFRUGDQFHZLWKWKHEHQHILWWHUPV,QYHVWPHQWVDUHUHSRUWHG DWIDLUYDOXH
7KHIROORZLQJWLPHIUDPHVDUHXVHGIRUSHQVLRQUHSRUWLQJ
&DO3(56
9DOXDWLRQ'DWH -XQH
0HDVXUHPHQW'DWH -XQH
0HDVXUHPHQW3HULRG -XO\
WR-XQH
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
DFWLYHLQDFWLYHDQGUHWLUHG
DVRIWKHEHJLQQLQJRIWKHPHDVXUHPHQWSHULRG
2WKHU3RVW(PSOR\PHQW%HQHILWV
“OPEB”)
)RUWKHSXUSRVHRIPHDVXULQJWKH7RWDO23(%OLDELOLW\GHIHUUHGRXWIORZVRIUHVRXUFHVDQG GHIHUUHGLQIORZVRIUHVRXUFHVUHODWHGWR23(%DQG23(%H[SHQVHLQIRUPDWLRQDERXWWKH ILGXFLDU\ QHW SRVLWLRQ RI WKH &LW\¶V 23(% 3ODQ DQG DGGLWLRQV WR GHGXFWLRQV IURP WKH 23(%3ODQ¶VILGXFLDU\QHWSRVLWLRQKDYHEHHQGHWHUPLQHGRQWKH VDPHEDVLVDVWKH\DUH UHSRUWHGE\WKH3ODQ)RUWKLVSXUSRVHWKH23(%3ODQUHFRJQL]HVEHQHILWSD\PHQWVZKHQ GXHDQGSD\DEOHLQDFFRUGDQFHZLWKWKHEHQHILWWHUPV
7KHIROORZLQJWLPHIUDPHVDUHUHSRUWHG23(%UHSRUWLQJ
9DOXDWLRQ'DWH 'HFHPEHU
0HDVXUHPHQW'DWH 'HFHPEHU
0HDVXUHPHQW3HULRG -DQXDU\WR'HFHPEHU
*DLQV DQG ORVVHV UHODWHG WR FKDQJHV LQ WRWDO 23(% OLDELOLW\ DUH UHFRJQL]HG LQ 23(% H[SHQVHV\VWHPDWLFDOO\RYHUWLPH7KHILUVWDPRUWL]HGDPRXQWVD UHUHFRJQL]HGLQ23(% H[SHQVHIRUWKH\HDUWKHJDLQRUORVVRFFXUV7KHUHPDLQLQJDPRXQWVDUHFDWHJRUL]HGDV GHIHUUHG RXWIORZV DQG GHIHUUHG LQIORZV RI UHVRXUFHV UHODWHG WR 23(% DQG DUH WR EH UHFRJQL]HGLQIXWXUH23(%H[SHQVH7KHJDLQVDQGORVVHVDUHDPRUWL]HGRQDVWUDLJKWOLQH EDVLVRYHUWKHDYHUDJHH[SHFWHGUHPDLQLQJVHUYLFHOLYHVRIDOOPHPEHUV 14 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
&RQWLQXHG
1HW3RVLWLRQ
,QWKH*RYHUQPHQW:LGH)LQDQFLDO6WDWHPHQWVQHWSRVLWLRQDUHFODVVLILHGDVIROORZV
1HW ,QYHVWPHQW LQ &DSLWDO $VVHWV ± 7KLV DPRXQW FRQVLVWV RI FDSLWDO DVVHWV QHW RI DFFXPXODWHGGHSUHFLDWLRQ
5HVWULFWHG 1HW 3RVLWLRQ ± 7KLV DPRXQW LV UHVWULFWHG E\ H[WHUQDO FUHGLWRUV JUDQWRUV FRQWULEXWRUVRUODZVRUUHJXODWLRQVRIRWKHUJRYHUQPHQWV
8QUHVWULFWHG 1HW 3RVLWLRQ ± 7KLV DPRXQW LV DOO QHW SRVLWLRQ WKDW GRHV QRW PHHW WKH GHILQLWLRQRI³QHWLQYHVWPHQWLQFDSLWDODVVHWV´RU³UHVWULFWHGQHWSRVLWLRQ´
:KHQH[SHQVHVDUHLQFXUUHGIRUSXUSRVHVIRUZKLFKERWKUHVWULFWHGDQXQUHVWULFWHGQHW SRVLWLRQDUHDYDLODEOHWKH+RXVLQJ$XWKRULW\¶VSROLF\LVWRDSSO\UHVWULFWHGQHWSRVLWLRQ ILUVWWKHQXQUHVWULFWHGQHWSRVLWLRQDVWKH\DUHQHHGHG
)XQG%DODQFH
,Q WKH IXQG ILQDQFLDO VWDWHPHQWV JRYHUQPHQW IXQGV UHSRUW WKH I ROORZLQJ IXQG EDODQFH
FODVVLILFDWLRQ
1RQVSHQGDEOH)XQG%DODQFH±7KLVLQFOXGHVDPRXQWVWKDWFDQQRWEHVSHQWEHFDXVH WKH\DUHHLWKHU
D
QRWLQVSHQGDEOHIRUPRU
E
OHJDOO\RUFRQ WUDFWXDOO\UHTXLUHGWREH
PDLQWDLQHGLQWDFW
5HVWULFWHG)XQG%DODQFH±7KLVLQFOXGHVDPRXQWVWKDWDUHFRQVWU DLQHGRQWKHXVHRI UHVRXUFHVE\HLWKHU
D
H[WHUQDOFUHGLWRUVJUDQWRUVFRQWULEXWRUVRUODZVRIUHJXODWLRQV RI RWKHU JRYHUQPHQWV RU
E
E\ ODZ WKURXJK FRQVWLWXWLRQDO SURYL VLRQV RU HQDEOLQJ OHJLVODWLRQ
&RPPLWWHG)XQG%DODQFH±7KLVLQFOXGHVDPRXQWVWKDWFDQRQO\EHXVHGIRUVSHFLILF SXUSRVHVSXUVXDQWWRFRQVWUDLQWVLPSRVHGE\IRUPDODFWLRQRIWKHJRYHUQPHQW¶VKLJKHVW DXWKRULW\
$VVLJQHG )XQG %DODQFH ± 7KLV LQFOXGHV DPRXQWV WKDW DUH FRQVWUDL QHG E\ WKH JRYHUQPHQW¶V LQWHQW WR EH XVHG IRU VSHFLILF SXUSRVHV EXW DUH QHLWKHU UHVWULFWHG QRU FRPPLWWHG 7KH JRYHUQLQJ ERDUG E\ 5HVROXWLRQ 1R $ JDYHWKH DXWKRULW\ WR DVVLJQDPRXQWVIRUVSHFLILFSXUSRVHVWRWKH)LQDQFH'LUHFWRU
8QDVVLJQHG)XQG%DODQFH±7KLVLQFOXGHVWKHUHVLGXDODPRXQWVWK DWKDYHQRWEHHQ UHVWULFWHGFRPPLWWHGRUDVVLJQHGWRVSHFLILFSXUSRVHV
:KHQ DQ H[SHQGLWXUH LV LQFXUUHG IRU SXUSRVHV IRU ZKLFK ERWK UHVWULFWHG DQG FRPPLWWHG DVVLJQHGRUXQDVVLJQHGIXQGEDODQFHVDUHDYDLODEOHWKH+RXVLQ J$XWKRULW\¶VSROLF\LVWR DSSO\UHVWULFWHGIXQGEDODQFHILUVW)XUWKHUZKHQWKHFRPSRQHQWVRIFRPPLWWHGDVVLJQHG RUXQDVVLJQHGIXQGEDODQFHFDQEHXVHGIRUWKHVDPHSXUSRVHWKH+RXVLQJ$XWKRULW\XVHV FRPPLWWHGDVVLJQHGRUXQDVVLJQHGUHVRXUFHVLQWKHIROORZLQJRUGHU FRPPLWWHGDVVLJQHG
DQGXQDVVLJQHG
15 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
6XPPDU\RI6LJQLILFDQW$FFRXQWLQJ3ROLFLHV
&RQWLQXHG
8VHRI(VWLPDWHV
7KHSUHSDUDWLRQRIILQDQFLDOVWDWHPHQWVLQFRQIRUPLW\ZLWKJHQH UDOO\DFFHSWHGDFFRXQWLQJ SULQFLSOHV UHTXLUHV PDQDJHPHQW WR PDNH HVWLPDWHV DQG DVVXPSWLRQV 7KHVH HVWLPDWHV DQGDVVXPSWLRQVDIIHFWWKHUHSRUWHGDPRXQWVRIDVVHWVDQGOLDELOLWLHVDQGWKHGLVFORVXUHRI FRQWLQJHQW DVVHWV DQG OLDELOLWLHV ,Q DGGLWLRQ HVWLPDWHV DIIHF W WKH UHSRUWHG DPRXQW RI H[SHQGLWXUHV$FWXDOUHVXOWVFRXOGGLIIHUIURPWKHVHHVWLPDWHVDQGDVVXPSWLRQV
1RWH
&DVKDQG,QYHVWPHQWV
7KHIROORZLQJLVDVXPPDU\RIFDVKDQGLQYHVWPHQWVDW-XQH
8QUHVWULFWHG
&DVKDQGLQYHVWPHQWV
5HVWULFWHG
&DVK
,QYHVWPHQWZLWKILVFDODJHQW
7RWDO5HVWULFWHG
7RWDOFDVKDQGLQYHVWPHQWV
&DVKDQGLQYHVWPHQWVFRQVLVWHGRIWKHIROORZLQJDW-XQH
&DVK
&DVKKHOGLQWUXVW
3RROHGFDVKZLWKWKH&LW\RI3RPRQD
,QYHV WP HQWV
0RQH\PDUNHWIXQGV
7RWDOFDVKDQGLQYHVWPHQWV
'HSRVLWV
&DVKLVGHSRVLWHGLQWKH&LW\¶VLQWHUQDOLQYHVWPHQWSRRO7KH+ RXVLQJ$XWKRULW\GRHVQRW RZQVSHFLILFDOO\LGHQWLILDEOHVHFXULWLHVLQWKH&LW\¶VSRRO7KHSRROHGFDVKLVFRQVLGHUHGDV FDVK VLQFH WKH +RXVLQJ $XWKRULW\ LV DEOH WR ZLWKGUDZ DW DQ\ WLPH ZLWKRXW SULRUQRWLFH RU SHQDOW\ ,W KDV JHQHUDO FKDUDFWHULVWLF RI GHPDQG GHSRVLW DFFRXQWV ,QWHUHVW LQFRPH LV DOORFDWHGEDVHGRQDYHUDJHFDVKEDODQFHV,QYHVWPHQWSROLFLHVDQGDVVRFLDWHGULVNIDFWRUV DSSOLFDEOHWRWKH+RXVLQJ$XWKRULW\DUHWKRVHRIWKH&LW\DQGDUHLQFOXGHGLQWKH&LW\¶VEDVLF ILQDQFLDOVWDWHPHQWV
,QYHVWPHQW$XWKRUL]HGE\'HEW$JUHHPHQW
,QYHVWPHQWVRIGHEWSURFHHGVKHOGE\ERQGWUXVWHHDUHJRYHUQHGE\SURYLVLRQVRIWKHGHEW DJUHHPHQWVUDWKHUWKDQWKHJHQHUDOSURYLVLRQVRIWKH&DOLIRUQLD*RYHUQPHQW&RGHRUWKH &LW\¶VLQYHVWPHQWSROLF\,QYHVWPHQWVDXWKRUL]HGIRUIXQGVKHOG E\ERQGWUXVWHHLQFOXGH )HGHUDO 6HFXULWLHV )HGHUDO $JHQF\ 6HFXULWLHV 86 *RYHUQPHQW6SRQVRUHG (QWHUSULVH 6HFXULWLHV0RQH\0DUNHW)XQGV&HUWLILFDWHRI'HSRVLW&ROODWHUDOL]HGE\)HGHUDORU)HGHUDO $JHQF\6HFXULWLHVRU)XOO\,QVXUHGE\)HGHUDO'HSRVLW,QVXUDQFH&RUSRUDWLRQ,QYHVWPHQW $JUHHPHQWV&RPPHUFLDO3DSHU%RQGVRU1RWHVXVHGE\DQ\VWDWHRUPXQLFLSDOLW\IHGHUDO IXQGVRUEDQNHUVDFFHSWDQFHVZLWKPD[LPXPWHUPRIRQH\HDUUHS XUFKDVHDJUHHPHQWV SUHUHIXQGHGPXQLFLSDOERQGVUDWHG³$DD´/RFDO$JHQF\
16 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
&DVKDQG,QYHVWPHQWV
&RQWLQXHG
,QYHVWPHQW)XQGRIWKH6WDWHRI&DOLIRUQLDDQGDQ\RWKHULQYHV WPHQWVSHUPLWWHGLQZULWLQJ E\WKH,QVXUHU7KHUHZHUHQROLPLWDWLRQVRQWKHPD[LPXPDPRXQWWKDWFDQEHLQYHVWHGLQ RQH LVVXHU PD[LPXP SHUFHQWDJH DOORZHG RU WKH PD[LPXP PDWXULW\RI DQ LQYHVWPHQW H[FHSWQRWHGRWKHUZLVH
5LVN'LVFORVXUHV
,QWHUHVW5DWH5LVN
$VDPHDQVRIOLPLWLQJLWVH[SRVXUHWRIDLUYDOXHORVVHVDULVLQJIURPULVLQJLQWHUHVWUDWHV WKH &LW\¶V LQYHVWPHQW SROLF\
3ROLF\
OLPLWV LQYHVWPHQWV WR D PD[LPXP PDWXULW\ RI
ILYH\HDUV$VRI-XQHWKH+RXVLQJ$XWKRULW\¶VLQYHVWPHQWVLQPRQH\PDUNHW IXQGVKDVDPDWXULW\RIOHVVWKDQRQH\HDU
&UHGLW5LVN
*HQHUDOO\ FUHGLW ULVN LV WKH ULVN WKDW DQ LVVXHU RI DQ LQYHVWP HQW ZLOO QRW IXOILOO LWV REOLJDWLRQVWRWKHKROGHURIWKHLQYHVWPHQW7KLVLVPHDVXUHGE \WKHDVVLJQPHQWRID UDWLQJE\DQDWLRQDOO\UHFRJQL]HGVWDWLVWLFDOUDWLQJRUJDQL]DWL RQ$W-XQHWKH +RXVLQJ $XWKRULW\¶V LQYHVWPHQWV LQ PRQH\ PDUNHW IXQGV ZHUH UDWH G $$$ E\ 6WDQGDUGV 3RRUV
)DLU9DOXH+LHUDUFK\
7KH$XWKRULW\FDWHJRUL]HVLWVIDLUYDOXHPHDVXUHPHQWVZLWKLQWK HIDLUYDOXHKLHUDUFK\ HVWDEOLVKHG E\ JHQHUDOO\ DFFHSWHG DFFRXQWLQJ SULQFLSOHV 7KH KLHUDUFK\ LV EDVHG RQ WKH YDOXDWLRQ LQSXWV XVHG WR PHDVXUH WKH IDLU YDOXH RI WKH DVVHW /HYHO LQSXWV DUH TXRWHGSULFHVLQDFWLYHPDUNHWVIRULGHQWLFDODVVHWV
/HYHOLQSXWVDUHVLJQLILFDQWRWKHU
REVHUYDEOHLQSXWV
/HYHOLQSXWVDUHVLJQLILFDQWXQREVHUYDEOHLQSXWV
7KH $XWKRULW\¶V LQYHVWPHQWV DUH SRROHG ZLWK WKH &LW\ RI 3RPRQD 7 K H I D L U Y D O X H KLHUDUFK\LVGLVFORVHGRQWKH&LW\¶V&RPSUHKHQVLYH$QQXDO)LQDQFLDO5HSRUW
&XVWRGLDO&UHGLW5LVN
)RUDQLQYHVWPHQWFXVWRGLDOFUHGLWULVNLVWKHULVNWKDWLQWKHHYHQWRIWKHIDLOXUHRIWKH FRXQWHUSDUW\ WKH +RXVLQJ $XWKRULW\ ZLOO QRW EH DEOH WR UHFRYHU WKH YDOXH RI LWV LQYHVWPHQWVRUFROODWHUDOVHFXULWLHVWKDWDUHLQWKHSRVVHVVLRQ RIDQRXWVLGHSDUW7KH +RXVLQJ$XWKRULW\¶VLQYHVWPHQWVLQPRQH\PDUNHWIXQGVDUHKHOGE\ILVFDODJHQW
1RWH
1RWHVDQG/RDQV5HFHLYDEOH
$W-XQHWKH+RXVLQJ$XWKRULW\¶VQHWORDQVUHFHLYDEOHFRQVLVWHGRIWKHIROORZLQJ
%DODQFH %DODQFH /RDQV
-XO\ $GGLWLRQV 'HOHWLRQV -XQH $OORZ DQFH 5HFHLYDEOH 1HW 'HI HUUHG+RPH,PSURYHPHQW/RDQV
6KLHOGRI )DLWK
)LUVW7LP H+RP H%X\HU3 URJUDP V
+ROW$YH+RXVLQJ3 DUWQHUV/3 /RDQV 1HLJKERUKRRGLQ3 URJUHVV+RPH
,PSURYHPHQW/RDQV
7RWDOORDQUHFHLYDEOHV
17 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
1RWHVDQG/RDQV5HFHLYDEOH
&RQWLQXHG
D 'HIHUUHG+RPH,PSURYHPHQW/RDQV
7KH +RXVLQJ ,PSURYHPHQW ORDQV IXQGV IRU +HDOWK 6DIHW\ 5HSDLUV DQG ([WHULRU +RPH ,PSURYHPHQWV'XULQJWKHWHUPRIWKHORDQDSRUWLRQRIWKHORDQVKDOOEHIRUJLYHQHDFKIXOO \HDUSURYLGHGWKDWWKHRZQHULVLQJRRGVWDQGLQJDQGFRPSOLHVZ LWKDOORIWKHFRYHQDQWV FRQGLWLRQVDQGUHVWULFWLRQV7KHRXWVWDQGLQJEDODQFHDW-XQHZDV
E 6KLHOGRI)DLWK
7KHORDQEHWZHHQWKH&LW\DQG6KLHOGRI)DLWK(FRQRPLF'HYHORSPHQW&RUSRUDWLRQZDVIRU DGHYHORSPHQWSURMHFWZKHUH6KLHOGRI)DLWKSXUFKDVHGSURSHUWLHVDQGGHYHORSHGWKHPIRU /RZDQG0RGHUDWHLQFRPHSHUVRQVDQGIDPLOLHV7KHSULQFLSDOEDODQFHRIWKHORDQDPRXQWV WRZLWKVLPSOHDQQXDOLQWHUHVWUDWH7KHORDQPDWXUHV\HDUVIURPWKH &HUWLILFDWHRI2FFXSDQF\GDWHPDWXULQJRQ$XJXVW7KH RXWVWDQGLQJEDODQFHDW -XQHZDV
F )LUVW7LPH+RPH%X\HU3URJUDP
7KH 3URJUDP LV D VHFRQG VLOHQW PRUWJDJH ORDQ SURJUDP GHVLJQHG W R DVVLVW TXDOLILHG ORZLQFRPHLQGLYLGXDOVZLWKWKHSXUFKDVHRIWKHLUILUVWKRPH3URJUDPDVVLVWDQFHLVOLPLWHG WR
LQFOXVLYHRIDSSOLFDEOHSURJUDPIHHV
RUWKHOHVVHUDPRXQW
ZLWK]HURSHUFHQW
LQWHUHVW
QHFHVVDU\ WR SURYLGH WKH ³JDS´ DVVLVWDQFH UHTXLUHG WR PHHW WKH 3URJUDP¶V IURQWHQGUDWLRUHTXLUHPHQWVRIWRZKLFKHYHULVORZHU 7KHRXWVWDQGLQJEDODQFH DW-XQHZDV
G +ROW$YH+RXVLQJ3DUWQHUV/3/RDQV
7KHORDQEHWZHHQWKH&LW\RI3RPRQDDQG+ROW$YHQXH+RXVLQJ3DUWQHUV/3ZDVWRDFTXLUH SURSHUW\DQGFRQVWUXFWDUHVLGHQWLDOKRXVLQJSURMHFWFRQVLVWLQJ RIUHVLGHQWLDOXQLWVWKDW TXDOLW\ IRU ORZ LQFRPH SHUVRQV DQG IDPLOLHV 7KH SULQFLSDO DPRX QW RI WKH ORDQ ZDV
ZLWKVLPSOHLQWHUHVWDWWKHUDWHRISHUDQQXP$OOSULQFLSDODQGLQWHUHVWVKDOO EHGXHLQIXOORQWKHGDWHWKDWLVILIW\\HDUVIURPWKHGDWHRIUHFRUGDWLRQRIWKHFHUWLILFDWHRI FRPSOHWLRQ7KHRXWVWDQGLQJEDODQFHDW-XQHZDV
H 1HLJKERUKRRGLQ3URJUHVV+RPH,PSURYHPHQW/RDQV
7KH1HLJKERUKRRGLQ3URJUHVV+RPH,PSURYHPHQW/RDQVLVIXQGHGW KURXJKWKHIRUPHU $JHQF\¶V 6XEVWDQWLDO 5HKDELOLWDWLRQ /RDQ 3URJUDP ,W SURYLGHG G HIHUUHG ORDQV XS WR DQGEHDUWRLQWHUHVWUDWHVGHSHQGLQJRQIXQGLQJDQGLQFRPH5HSD\PHQW RI WKH ORDQ LV GXH DW WKH WLPH RI WLWOH FKDQJH UHVDOH UHILQDQ FH ZLWK FDVK RXW RU QRQFRPSOLDQFH ZLWK WKH SURJUDP UHTXLUHPHQWV
'HSHQGLQJ RQ IXQGLQJ VRXUFH VRPH
ORDQVPXVWEHUHSDLGDWWKHHQGRIWKLUW\
\HDUVIURPWKHGDWHRIH[HFXWLRQRIWKHORDQ
GRFXPHQWV
7KHVHORDQVDUHQRWDFRQYHQWLRQDOHTXLW\ORDQRUHTXLW\OLQHRIFUHGLW)XQGLQJ PXVWEHXVHGWRFRUUHFWFRGHYLRODWLRQVRUGHIHUUHGPDLQWHQDQFHZKLFKPD\FDXVHFRGH YLRODWLRQVLQWKHQHDUIXWXUH7KHRXWVWDQGLQJEDODQFHDVRI-XQHZDV
1RWH
$GYDQFHVWR6XFFHVVRU$JHQF\
2Q-XO\
$VVHPEO\%LOO$%ZDVSDVVHGVKLIWLQJIRUP HU5HGHYHORSPHQW$JHQF\ IXQGVDQGHVWDEOLVKLQJD6XSSOHPHQWDO(GXFDWLRQDO5HYHQXH$XJPHQWDWLRQ)XQG 6(5$)
,W
ZDVD³EXGJHWWUDLOHUELOO´WKDWZDVSDUWRIWKH6WDWH¶VOHJLVODWLRQWREDODQFHWKHLUEXGJHW 18 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
$GYDQFHVWR6XFFHVVRU$JHQF\
&RQWLQXHG
7KH IRUPHU 5HGHYHORSPHQW $JHQF\ RI WKH &LW\ RI 3RPRQD¶V VKDUH RI 6(5$) REOLJDWLRQ IRU )LVFDO <HDU
ZDV DQG PLOOLRQ LQ )LVFDO <HDU +HDOWK DQG 6DIHW\&RGH6HFWLRQ
F
SURYLGHVWKDWDUHGHYHORSPHQWDJHQ F\ZKLFKPDNHVDILQGLQJ WKDWLQVXIILFLHQWPRQLHVDUHDYDLODEOHWRIXQGLWV6(5$)REOLJD WLRQLQ)LVFDO<HDUV RU
PD\ERUURZIXQGVIURPLWV/RZDQG0RGHUDWH,QFRPH+RXVLQJ)XQGWRPDNHWKHIXOO 6(5$)SD\PHQW2Q0D\&LW\&RXQFLODXWKRUL]HGDORDQRIIURPWKH/RZ 0RG)XQGWRPDNHWKHIXOO6(5$)SD\PHQW'XULQJWKHILVFDO\HDUWKH6XFFHVVRU$JHQF\¶V RXWVWDQGLQJEDODQFHRQWKHQRWHZDVSDLGLQIXOO
1RWH
/DQG+HOGIRU5HVDOH
/DQG KHOG IRU UHVDOH RI
LQ WKH +RXVLQJ $XWKRULW\ )XQG LV UHFRUGHG DW FRVW DV RI -XQH
1RWH
&DSLWDO$VVHWV
&DSLWDODVVHWDFWLYLW\IRUWKH\HDUHQGHG-XQHZDVDVIROORZV
%DODQFH
-XO\ $GGLWLRQV 'HOHWLRQV
%DODQFH
-XQH
1RQGHSUHFLDEOHDVVHWV
/DQG
+RXVLQJ$XWKRULW\
&RQVWUXFWLRQLQ3URJUHVV
+RXVLQJ6XFFHVVRU
7RWDOQRQGHSUHFLDEOHDVVHWV
'HSUHFLDEOHDVVHWV
%XLOGLQJVDQGEXLOGLQJLPSURYHPHQWV
+RXVLQJ$XWKRULW\ 0DFKLQHU\DQGHTXLSPHQW
+RXVLQJ$XWKRULW\ +RXVLQJ6XFFHVVRU )XUQLWXUHDQGIL[WXUHV
+RXVLQJ$XWKRULW\ +RXVLQJ6XFFHVVRU $XWRVDQGWUXFNV
+RXVLQJ$XWKRULW\
+RXVLQJ6XFFHVVRU
7RWDOGHSUHFLDEOHDVVHWV /HVVDFFXPXODWHGGHSUHFLDWLRQ
%XLOGLQJVDQGEXLOGLQJLPSURYHPHQWV
+RXVLQJ$XWKRULW\
0DFKLQHU\DQGHTXLSPHQW
+RXVLQJ$XWKRULW\
+RXVLQJ6XFFHVVRU
)XUQLWXUHDQGIL[WXUHV
+RXVLQJ$XWKRULW\
+RXVLQJ6XFFHVVRU
$XWRVDQGWUXFNV
+RXVLQJ$XWKRULW\
+RXVLQJ6XFFHVVRU
7RWDODFFXPXODWHGGHSUHFLDWLRQ
7RWDOGHSUHFLDEOHDVVHWVQHW
7RWDOFDSLWDODVVHWV
19 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
&DSLWDO$VVHWV
&RQWLQXHG
'HSUHFLDWLRQH[SHQVHIRUFDSLWDODVVHWVIRUWKH\HDUHQGHG-XQHZDVDVIROORZV
8UEDQGHYHORSPHQW+RXVLQJ$XWKRULW\
7RWDOGHSUHFLDWLRQH[SHQVHJRYHUQPHQWDODFWLYLWLHV
1RWH
&RPSHQVDWHG$EVHQFHV
7KH IROORZLQJ LV D VXPPDU\ RI FKDQJHV LQ FRPSHQVDWHG DEVHQFHV I RU WKH \HDU HQGHG -XQH
%DODQFH %DODQFH 'XHLQ
-XQH $GGLWLRQV 'HOHWLRQV -XQH 2QH<HDU
1RWH
1HW3HQVLRQ/LDELOLWLHV
D *HQHUDO,QIRUPDWLRQDERXWWKH3HQVLRQ3ODQ
3ODQ'HVFULSWLRQ
7KH +RXVLQJ $XWKRULW\ FRQWULEXWHV WKURXJK WKH &LW\ RI 3RPRQD WR WKH &DOLIRUQLD 3XEOLF (PSOR\HHV¶5HWLUHPHQW6\VWHP
³&DO3(56´
DQDJHQWPXOWLSOHHPSOR\HUSXEOLFHPSOR\HH
GHILQHGEHQHILWSHQVLRQSODQ&DO3(56DFWVDVDFRPPRQLQYHVWPH QWDQGDGPLQLVWUDWLYH DJHQWIRUSDUWLFLSDWLQJSXEOLFHQWLWLHVZLWKLQWKH6WDWHRI&DO LIRUQLD%HQHILWSURYLVLRQVDQG DOORWKHUUHTXLUHPHQWVDUHHVWDEOLVKHGE\VWDWHVWDWXHDQG&LW\RUGLQDQFH$IXOOGHVFULSWLRQ RI WKH SHQVLRQ SODQ UHJDUGLQJ QXPEHU RI HPSOR\HHV FRYHUHG EHQH ILW SURYLVLRQV DVVXPSWLRQV
IRUIXQGLQJEXWQRWDFFRXQWLQJSXUSRVHV
DQGPHP EHUVKLSLQIRUPDWLRQDUH
OLVWHGLQWKHDQQXDODFWXDULDOYDOXDWLRQUHSRUW7KLVUHSRUWDQ G&DO3(56¶DXGLWHGILQDQFLDO VWDWHPHQWVDUHSXEOLFO\DYDLODEOHUHSRUWVWKDWFDQEHREWDLQHGDW&DO3(56¶ZHEVLWHXQGHU )RUPVDQG3XEOLFDWLRQV
%HQHILWV3URYLGHG
&DO3(56 SURYLGHV UHWLUHPHQW DQG GLVDELOLW\ EHQHILWV DQQXDO FRVWRIOLYLQJ DGMXVWPHQWV DQG GHDWK EHQHILWV WR SODQ PHPEHUV DQG EHQHILFLDULHV $ FODVVLF &DO3(56 PHPEHU EHFRPHVHOLJLEOHIRUVHUYLFHUHWLUHPHQWXSRQDWWDLQPHQWRIDJH ZLWKDWOHDVW\HDUVRI FUHGLWHG VHUYLFH &DOLIRUQLD 3XEOLF (PSOR\HHV¶ 3HQVLRQ 5HIRUP $ FW ³3(35$´
PLVFHOODQHRXVPHPEHUVEHFRPHHOLJLEOHIRUVHUYLFHUHWLUHPHQWXSRQDWWDLQPHQWRIDJH ZLWKDWOHDVW\HDUVRIVHUYLFH7KHVHUYLFHUHWLUHPHQWEHQHILWLVDPRQWKO\DOORZDQFHHTXDO WR WKH SURGXFW RI WKH EHQHILW IDFWRU \HDUV RI VHUYLFH DQG ILQDO FRPSHQVDWLRQ 7KH ILQDO FRPSHQVDWLRQ LV WKH PRQWKO\ DYHUDJH RI WKH PHPEHU¶V KLJKHVW RU FRQVHFXWLYH PRQWKV¶ IXOOWLPH HTXLYDOHQW PRQWKO\ SD\ 5HWLUHPHQW EHQHILWV IRU FODVVLF PLVFHOODQHRXV HPSOR\HHV DUH FDOFXODWHG DV SHUFHQW RI DYHUDJH ILQDO PRQWK V FRPSHQVDWLRQ 5HWLUHPHQWEHQHILWIRU3(35$PLVFHOODQHRXVHPSOR\HHVDUHFDOFXODWHGDVSHUFHQWRIWKH DYHUDJHILQDOPRQWKVFRPSHQVDWLRQ
$QHPSOR\HH
VEHQHILFLDU\PD\UHFHLYHWKHEDVLFGHDWKEHQHILWL IWKHHPSOR\HHEHFRPHV GHFHDVHGZKLOHDFWLYHO\HPSOR\HG7KHHPSOR\HHPXVWEHDFWLYHO\HPSOR\HGZLWKWKH&LW\ WR EH HOLJLEOH IRU WKLV EHQHILW $Q HPSOR\HH
V VXUYLYRU ZKR LV HOLJLEOH IRU DQ\ RWKHU
SUHUHWLUHPHQWGHDWKEHQHILWPD\FKRRVHWRUHFHLYHWKDWGHDWKEHQHILWLQVWHDGRIWKLVEDVLF 20 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
1HW3HQVLRQ/LDELOLWLHV
&RQWLQXHG
GHDWK EHQHILW 7KH EDVLF GHDWK EHQHILW LV D OXPS VXP LQ WKH DPRXQW RI WKH HPSOR\HH V
DFFXPXODWHGFRQWULEXWLRQVZKHUHLQWHUHVWLVFXUUHQWO\FUHGLWHGDWSHUFHQWSHU\HDUSOXV DOXPSVXPLQWKHDPRXQWRIRQHPRQWK
VVDODU\IRUHDFKFRPSOHWHG\HDURIFXUUHQWVHUYLFH
XSWRDPD[LPXPRIVL[PRQWKV
VDODU\)RUSXUSRVHVRIWKLVEHQHILWRQHPRQWK
VVDODU\LV
GHILQHG DV WKH PHPEHU
V DYHUDJH PRQWKO\ IXOOWLPH UDWH RI FRPSHQVDWLRQ GXULQJ WKH PRQWKVSUHFHGLQJGHDWK8SRQWKHGHDWKRIDUHWLUHHDRQHWLPHOXPSVXPSD\PHQWRI ZLOOEHPDGHWRWKHUHWLUHH¶VGHVLJQDWHGVXUYLYRU
V
RUWRWKHUHWLUHH¶VHVWDWH
E *HQHUDO,QIRUPDWLRQDERXWWKH3HQVLRQ3ODQ
&RQWLQXHG
%HQHILWWHUPVSURYLGHIRUDQQXDOFRVWRIOLYLQJDGMXVWPHQWVWRHDFKHPSOR\HH¶VUHWLUHPHQW DOORZDQFH%HJLQQLQJWKHVHFRQGFDOHQGDU\HDUDIWHUWKH\HDURIUHWLUHPHQWUHWLUHPHQWDQG VXUYLYRUDOORZDQFHVZLOOEHDQQXDOO\DGMXVWHGRQDFRPSRXQGEDVLVE\SHUFHQW
7LHU
7LHU
3(35$
3ULRUWR$XJXVW
2QRU$IWHU
$XJXVWWR
-DQXDU\
2QRUDIWHU
-DQXDU\
# # #
\HDUVVHUY LFH \HDUVVHUY LFH \HDUVVHUY LFH
0RQWKO\IRU/LIH 0RQWKO\IRU/LIH 0RQWKO\IRU/LIH
0LQLPXP\HDUV 0LQLPXP\HDUV 0LQLPXP\HDUV
\HDUV
UHVSHFWLYHO\
\HDUV
UHVSHFWLYHO\
\HDUV
UHVSHFWLYHO\
UDWHV
UDWHV
3ODQLVFORVHGWRQHZHQWUDQWV
%HQHILWYHVWLQJVFKHGXOH
%HQHILWIRUPXOD
+LUH'DWH
0LVFHOODQHRXV3ODQ
%HQHILWSD\PHQWV
0RQWKO\EHQHILWVDVDRI
HOLJLEOHFRPSHQVDWLRQ
5HTXLUHGHPSOR\HHFRQWULEXWLRQ
5HTXLUHGHPSOR\HUFRQWULEXWLRQ
5HWLUHPHQWDJH
(PSOR\HHV&RYHUHGE\%HQHILW7HUPV
3OHDVH UHIHU WR WKH &LW\¶V &RPSUHKHQVLYH $QQXDO )LQDQFLDO 5HSRU W IRU QXPEHUV RI HPSOR\HHVFRYHUHGE\EHQHILWWHUPVDW-XQH
YDOXDWLRQGDWH
&RQWULEXWLRQV
6HFWLRQ
F
RIWKH&DOLIRUQLD3XEOLF(PSOR\HHV¶5HWLUHPHQW /DZ
³3(5/´
UHTXLUHV
WKDWWKHHPSOR\HUFRQWULEXWLRQUDWHVIRUDOOSXEOLFHPSOR\HUVE HGHWHUPLQHGRQDQDQQXDO EDVLVE\WKHDFWXDU\DQGVKDOOEHHIIHFWLYHRQWKH-XO\IROORZLQJQRWLFHRIDFKDQJHLQWKH UDWH 7KH WRWDO SODQ FRQWULEXWLRQV DUH GHWHUPLQHG WKURXJK &DO3( 56¶ DQQXDO DFWXDULDO YDOXDWLRQSURFHVV7KHDFWXDULDOO\GHWHUPLQHGUDWHLVWKHHVWLPDWHGDPRXQWQHFHVVDU\WR ILQDQFH WKH FRVWV RI EHQHILWV HDUQHG E\ HPSOR\HHV GXULQJ WKH \HDU ZLWK DQ DGGLWLRQDO DPRXQWWRILQDQFHDQ\XQIXQGHGDFFUXHGOLDELOLW\7KHHPSOR\HU LVUHTXLUHGWRFRQWULEXWH WKH GLIIHUHQFH EHWZHHQ WKH DFWXDULDOO\ GHWHUPLQHG UDWH DQG WKH FRQWULEXWLRQ UDWH RI HPSOR\HHV
)RUWKH\HDUHQGHG-XQHWKH+RXVLQJ$XWKRULW\¶VHPSOR\HUFRQWULEXWLRQVZHUH
21 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
1HW3HQVLRQ/LDELOLWLHV
&RQWLQXHG
F 1HW3HQVLRQ/LDELOLW\
$FWXDULDO0HWKRGVDQG$VVXPSWLRQV8VHGWR'HWHUPLQH7RWDO3HQVLRQ/LDELOLW\
)RU WKH PHDVXUHPHQW SHULRG HQGHG -XQH WKH WRWDO SHQVL RQ OLDELOLW\ ZDV GHWHUPLQHGE\UROOLQJIRUZDUGWKH-XQH
WRWDOSHQVLRQOLDELOLW\7KH-XQH
WRWDOSHQVLRQOLDELOLWLHVZHUHEDVHGRQWKHIROORZLQJDFWXDULDOPHWKRGVDQGDVVXPSWLRQV
9DOXDWLRQ'DWH -XQH
0HDVXUHPHQW'DWH -XQH
$FWXDULDO&RVW0HWKRG (QWU\$JH1RUPDO&RVW0HWKRG
'LVFRXQW5DWH
QHWRIDGPLQLVWUDWLYHH[SHQVHV
,QIODWLRQ
3URMHFWHG6DODU\,QFUHDVHV 9DULHVE\(QWU\$JHDQG6HUY LFH 0RUWDOLW\5DWH7DEOH
'HULY HGXVLQJ&DO3(56¶0HPEHUVKLS'DWD IRUDOO)XQGV 3RVW5HWLUHPHQW%HQHILW
,QFUHDVH
&RQWUDFW &2/$ XS WR XQWLO 3XUFKDVLQJ 3RZHU 3URWHFWLRQ $OORZDQFH)ORRURQ3XUFKDVLQJ3RZHUDSSOLHVWKHUHDIWHU $FWXDULDO$VVXPSWLRQV
7KH PRUWDOLW\ WDEOH XVHG ZDV GHY HORSHG EDVHG RQ &DO3(56VSHFLILF GDWD 7KH WDEOH LQFOXGHV \ HDUV RI PRUWDOLW\ LPSURY HPHQWV XVLQJ WKH 6RFLHW\ RI $ FWXDULHV 6FDOH RI VFDO H 0 3 )RU PRUH GHWDLOV RQ
WKLV WDEOH SOHDVH UHIHU WR WKH 'HFHPEHU H[ SHULHQFH VWXG\ UHSRUW EDV HG RQ &DO3(56 GHPRJUDSKLF
GDWDIURP
WR
WKDWFDQEHIRXQGRQWKH&DO3(56ZHEV LW H
&KDQJHRI$VVXPSWLRQV
,QGHPRJUDSKLFDVVXPSWLRQVDQGLQIODWLRQUDWHZHUHFKDQJHGLQDFFRUGDQFHWRWKH &DO3(56([SHULHQFH6WXG\DQG5HYLHZRI$FWXDULDO$VVXPSWLRQV'HFHPEHU7KHUH ZHUHQRFKDQJHVLQGLVFRXQWUDWH
/RQJ7HUP([SHFWHG5DWHRI5HWXUQ
7KHORQJWHUPH[SHFWHGUDWHRIUHWXUQRQSHQVLRQSODQLQYHVWPHQWVZDVGHWHUPLQHGXVLQJ DEXLOGLQJEORFNPHWKRGLQZKLFKH[SHFWHGIXWXUHUHDOUDWHVRI UHWXUQ H[SHFWHGUHWXUQV
QHWRISHQVLRQSODQLQYHVWPHQWH[SHQVHDQGLQIODWLRQ
DUHGHYHORSHGIRUHDFKPDMRUDVVHW
FODVV
,Q GHWHUPLQLQJ WKH ORQJWHUP H[SHFWHG UDWH RI UHWXUQ &DO3(56 WRRN LQWR DFFRXQW ERWK VKRUWWHUPDQGORQJWHUPPDUNHWUHWXUQH[SHFWDWLRQVDVZHOODVWKHH[SHFWHGSHQVLRQIXQG FDVKIORZV8VLQJKLVWRULFDOUHWXUQVRIDOORIWKHIXQGV¶DVVHW FODVVHVH[SHFWHGFRPSRXQG
JHRPHWULF
UHWXUQVZHUHFDOFXODWHGRYHUWKHVKRUWWHUP
ILUVW \HDUV
DQGWKHORQJWHUP
\HDUV
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
22 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
1HW3HQVLRQ/LDELOLWLHV
&RQWLQXHG
/RQJ7HUP([SHFWHG5DWHRI5HWXUQ
&RQWLQXHG
$VVHW&ODVV
$VVXPHG$VVHW
$OORFDWLRQ
5HDO5HWXUQ
<HDUV
5HDO5HWXUQ
<HDUV
*OREDO(TXLW\
)L[HG,QFRPH
,QIODWLRQ$VVHWV
3ULY DWH(TXLW\
5HDO(VWDWH
/LTXLGLW\
7 RWDO
,Q WKH 6\VWHP
V &$)5 )L[HG ,QFRPH LV LQFOXGHG LQ *OREDO 'HEW 6 HFXULWLHV /LTXLGLW\ LV LQFOXGHG LQ
6KRUWWHUP,QYHVWPHQWV
,QIODWLRQ$VVHWVDUHLQFOXGHGLQERWK*OREDO(TXLW\6HFXULWLHVDQG*OREDO'HEW6HFXULWLHV
$QH[SHFWHGLQIODWLRQRIXVHGIRUWKLVSHULRG
$QH[SHFWHGLQIODWLRQRI
XVHGIRUWKLVSHULRG
'LVFRXQW5DWH
7KH GLVFRXQW UDWH XVHG WR PHDVXUH WKH WRWDO SHQVLRQ OLDELOLW\ ZDV SHUFHQW 7KH SURMHFWLRQRIFDVKIORZVXVHGWRGHWHUPLQHWKHGLVFRXQWUDWHDVVXPHGWKDWFRQWULEXWLRQV IURP SODQ PHPEHUV ZLOO EH PDGH DW WKH FXUUHQW PHPEHU FRQWULEXWL RQ UDWHV DQG WKDW FRQWULEXWLRQV IURP HPSOR\HUV ZLOO EH PDGH DW VWDWXWRULO\ UHTXLU HG UDWHV DFWXDULDOO\ GHWHUPLQHG%DVHGRQWKRVHDVVXPSWLRQVWKH3ODQ¶VILGXFLDU\QH WSRVLWLRQZDVSURMHFWHG WR EH DYDLODEOH WR PDNH DOO SURMHFWHG IXWXUH EHQHILW SD\PHQWV RI FXUUHQW SODQ PHPEHUV 7KHUHIRUH WKH ORQJWHUP H[SHFWHG UDWHRI UHWXUQ RQ SODQ LQYHVWPHQWV ZDV DSSOLHG WR DOO SHULRGVRISURMHFWHGEHQHILWSD\PHQWVWRGHWHUPLQHWKHWRWDOSHQVLRQOLDELOLW\
G &KDQJHVLQWKH1HW3HQVLRQ/LDELOLW\
3URSRUWLRQDWH6KDUHRI1HW3HQVLRQ/LDELOLW\
7KH +RXVLQJ $XWKRULW\ SURSRUWLRQDWH VKDUH RI QHW SHQVLRQ OLDELO LW\ RI WKH &LW\¶V PLVFHOODQHRXVSODQLVGHWHUPLQHGE\WKH&LW\¶V&DO3(56ILVFDO\HDUFRQWULEXWLRQ PDGHE\WKH+RXVLQJ$XWKRULW\RYHUWKHWRWDOPLVFHOODQHRXVSODQFRQWULEXWLRQ7KHIROORZLQJ WDEOHVKRZVWKH+RXVLQJ$XWKRULW\¶VSURSRUWLRQDWHVKDUHRIWKH &LW\¶VPLVFHOODQHRXVSODQ QHWSHQVLRQOLDELOLW\RYHUWKHPHDVXUHPHQWSHULRGVHQGHG-XQH
7RWDO3HQVLRQ
/LDELOLW\
D
3ODQ)LGXFLDU\
1HW3RVLWLRQ
E
1HW3HQVLRQ
/LDELOLW\
F
D
E
%DODQFHDW-XQH
0HDVXUHPHQW'DWH
%DODQFHDW-XQH
0HDVXUHPHQW'DWH
1HW&KDQJHGXULQJ
0LVFHOODQHRXV3ODQ
7KH+RXVLQJ$XWKRULW\¶VSURSRUWLRQDWHVKDUHVRIWKHQHWSHQVLRQOLDELOLWLHVDUHDVIROORZV
0HDVXUHPHQW'DWH
-XQH
-XQH
&KDQJH,QFUHDVH
'HFUHDVH
23 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 30, 2021
Note 8: Net Pension Liabilities (Continued)
Sensitivity of the Net Pension Liability to Changes in the Discount Rate
The following presents the Housing Authority’s proportionate sh are of the net pension liability of the plans as of the measurement date, calculated u sing the discount rate of
7.15%, as well as what the net pension liability would be if it were calculated using a discount rate that is 1 percentage-point lower (6.15%) or 1 percentage-point higher (8.15%) than the current rate:
Measurement Date
Discount Rate
-1% (6.15%)
Current Discount
Rate (7.15%)
Discount Rate
+1% (8.15%)
June 30, 2019 5,699,081$ 3,844,201 $ 2,307,130 $ Plan's Net Pension Liability
Pension Plan Fiduciary Net Position
Detailed information about the plan’s fiduciary net position is available in the City of Pomona Miscellaneous Plan GASB 68 Accounting Valuation Report.
e. Pension Expense and Deferred Outflows and Inflows of Resourc es Related to Pensions
For the measurement period ending June 30, 2021, the City incur red a pension expense of $595,750.
As of measurement date of June 30, 2020, the City has deferred outflows and deferred inflows of resources related to pensions as follows:
Deferred outflows
of resources
Deferred inflows of
resources
370,105$ - $
- 39,281
88,995 -
Total 459,100$ 39,281$
Pension contribution after measurement date
Difference between expected and actual experiences
Net difference between projected and actual earnings
on pension plan investments
Miscellaneous Plan
The amounts above are net of outflows recognized in the 2020-21 measurement period expense.
The expected average remaining service lifetime (“EARSL”) is ca lculated by dividing the total future service years by the total number of plan participants (active, inactive, and retired). The EARSL for the miscellaneous plan and safety plan for the 2019-20 measurement period in 2.0 and 2.8 years, which was obtained by dividing the total service years of 3,540 and 1,660 (the sum of remaining service lifetimes of the active employees) by 1,774 and 591 (the total number of participants: active, ina ctive, and retired), respectively.
24 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
1HW3HQVLRQ/LDELOLWLHV
&RQWLQXHG
7KH
UHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWRSHQVLRQUHVXOWLQJIURP WKH &LW\¶V FRQWULEXWLRQV VXEVHTXHQW WR WKH PHDVXUHPHQW GDWH GXU LQJ WKH \HDU HQGHG -XQH ZLOO EH UHFRJQL]HG DV D UHGXFWLRQ RI WKH QHW SHQVLRQ OLDELOLW\ LQ WKH \HDU HQGLQJ-XQH2WKHUDPRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVDQGGHIHUUHGLQIORZV RIUHVRXUFHVUHODWHGWRSHQVLRQVZLOOEHUHFRJQL]HGLQIXWXUHSHQVLRQH[SHQVHDVIROORZV
<HDU(QGLQJ
-XQH 0LVFHOODQHRXV
7KHUHDIWHU
7RWDO
'HIHUUHGRI
2XWIORZV
,QIORZV
RI
5HVRXUFHV
1RWH
2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%
D *HQHUDO,QIRUPDWLRQ$ERXW3XEOLF(PSOR\HHV¶0HGLFDODQG+RVS LWDO&DUH3URJUDP
³3(0+&$´
3ODQ
³23(%´
3ODQ'HVFULSWLRQ
7KH+RXVLQJ$XWKRULW\SDUWLFLSDWHVLQWKH&LW\¶&DO3(56+HDOWK 3ODQ7KH&LW\SURYLGHV HOLJLEOHUHWLUHHVDFRQWULEXWLRQEDVHGRQWKH³XQHTXDOPHWKRG´XQGHUWKH3XEOLF(PSOR\HHV¶ 0HGLFDODQG+RVSLWDO&DUH3URJUDP
3(0+&$
FRQWULEXWLRQUHTXLUHPHQWVIRUSDUWLFLSDWLQJ
HPSOR\HUV8QGHUWKH³XQHTXDOPHWKRG´WKH&LW\¶VFRQWULEXWLRQ IRUWKHUHWLUHHLVHTXDOWR RIWKHDFWLYHFRQWULEXWLRQDIWHU\HDUVRISDUWLFLSDWLRQ LQ3(0+&$(OLJLELOLW\IRU FRQWLQXLQJPHGLFDOFRYHUDJHUHTXLUHVUHWLUHPHQWIURPWKH&LW\ RQRUDIWHUDJHZLWKDW
OHDVW\HDUVRI&DO3(56VHUYLFH
DQGFRPPHQFHPHQWRIWKH&DO3( 56SHQVLRQEHQHILW
5HWLUHPHQWXQGHUGLVDELOLW\GRHVQRWKDYHDQDJHUHTXLUHPHQW
(PSOR\HHV RI WKH &LW\ ZKR UHWLUH WKURXJK &DO3(56 WKHLU VSRXVHV DQG HOLJLEOH GHSHQGHQWVPD\UHFHLYHKHDOWKSODQFRYHUDJHWKURXJK3(0&+$3OD Q WKH³3ODQ´
7KH
3ODQ LV D VLQJOH HPSOR\HU GHILQHG EHQHILW SODQ ZKLFK SURYLGHV WKH UHWLUHHV D PRQWKO\ PHGLFDOFRQWULEXWLRQWKDWLVQRWWRH[FHHGWKHFRVWRIWKHSODQVHOHFWHGZLWKWKHPD[LPXP FRQWULEXWLRQOLPLWHGIRULQGLYLGXDOUHWLUHHVEDVHGRQEDUJDLQLQJJURXSVDVOLVWHGEHORZ
%HQHILW
3RPRQD&LW\&RXQFLO0HPEHUV
3RPRQD([HFXWLYH0DQDJHPHQW*URXS
3RPRQD0LG0DQDJHPHQW&RQILGHQWLDO(PSOR\HHV
$VVRFLDWLRQ
3RPRQD&LW\(PSOR\HHV
$VVRFLDWLRQ
3RPRQD3ROLFH0DQDJHUV
$VVRFLDWLRQ
3RPRQD3ROLFH2IILFHUV
$VVRFLDWLRQ
)LUHILJKWHUV
3UH0HUJHUZLWK/RV$QJHOHV&RXQW\)LUH'LVWULFW
%DUJDLQLQJ*URXS
&RQWULEXWLRQV
7KH&LW\FXUUHQWO\ILQDQFHVEHQHILWVRQDSD\DV\RXJREDVLV 25 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%
&RQWLQXHG
E 7RWDO23(%/LDELOLW\
$FWXDULDO$VVXPSWLRQV
7KHWRWDO23(%OLDELOLW\LQWKH'HFHPEHUDFWXDULDOYDOXDWLRQZDVGHWHUPLQHGXVLQJ WKHIROORZLQJDFWXDULDODVVXPSWLRQVDSSOLHGWRDOOSHULRGVLQF OXGHGLQWKHPHDVXUHPHQW XQOHVVRWKHUZLVHVSHFLILHG
'LVFRXQW5DWH
,QIODWLRQ
3DUWLFLSDQW5DWH
0HGLFDO7UHQG5DWHV
+02
DQG
332
LVXOWLPDWHLQDQGEH\RQG
1$$VRIWKHY DOXDWLRQGDWHWKHUHDUHQR*$6%HOLJLEOHSODQDVVHWV 1RW$SSOLFDEOH
,QY HVWPHQW5DWHRI5HWXUQ
6SRXVH&RY HUDJH
3UHUHWLUHPHQW 7XUQRY HU 0RUWDOLW\ 5DWH
'LVDELOLW\5DWH5HWLUHPHQW$JH
RIIXWXUHUHWLUHHV
IRU6DIHW\
DUHDVVXPHGWRHOHFWFRY HUDJHIRUWKHVSRXVH
0DOH VSRXVHV DUH DVVXPHG WR EH \HDUV ROGHU WKDQ WKH IHPDOH VSRXVHV $FWXDO VSRXVHDJHLVXVHGIRUFXUUHQWUHWLUHHV
3UH5HWLUHPHQW
&RQVLVWHQW ZLWK WKH PRVW UHFHQW &DO3(56 SHQVLRQ SODQ Y DO XDWLRQ 3RVW5HWLUHPHQW
&RQVLVWHQWZLWKWKHPRVWUHFHQW&DO3(56SHQVLR QSODQY DOXDWLRQ
RI IXWXUH UHWLUHHV DUH DVVXPHG WR HOHFW PHGLFDO FRY HUDJH DW UHWLUHPHQW WKURXJK WKH &DO3(56 +HDOWK 3ODQ DQG WR FRQWLQXH FRY HUDJH WKURXJK WKH &DO3(56 +HDOW K 3ODQ EH\RQG 0HGLFDUH HOLJDELOLW\ DJH $FWXDO FRY HUDJH LV XVHG IRU FXUUHQW UHWLUHHV )RU FXUUHQW UHWLUHHV XQGHU DJH DQG FXUUHQWO\ ZDLY LQJ FRY HUDJH DUH DVVXPHG WRHOHFWFRYHUDJHDWDJH
(QWU\$JH1RUPDO$FWXDULDO&RVW0HWKRG
$FWXDULDO$VVXPSWLRQ
6DODU\,QFUHDVHV
&RVWRI/LYLQJ
SHUDQQXP
DVRI'HFHPEHU
SHUDQQXPLQDJJUHJDWH
&KDQJHRI$VVXPSWLRQ
,QWKHDFFRXQWLQJGLVFRXQWUDWHFKDQJHVIURPWRIURPWKHPHDVXUHPHQW GDWH 'HFHPEHU
WR WKH PHDVXUHPHQW GDWH 'HFHPEHU ,Q WKH
DFFRXQWLQJ GLVFRXQW UDWH FKDQJHV IURP WR IURP WKH P HDVXUHPHQW GDWH 'HFHPEHUWRWKHPHDVXUHPHQWGDWH'HFHPEHU
'LVFRXQW5DWH
SHUDQQXP7KLVGLVFRXQWUDWHLVWKHDYHUDJHURXQGHGWREDVLVSRLQWVRIWKHUDQJH RI±\HDUPXQLFLSDOERQGUDWHLQGLFHV
6 30XQLFLSDO%RQG <HDU+LJK*UDGH5DWH
,QGH[%RQG%\HU%RQG*2LQGH[)LGHOLW\*2$$<HDU%RQG,QGH[
F &KDQJHLQWKH7RWDO23(%/LDELOLW\
3URSRUWLRQDWH6KDUHRI7RWDO23(%/LDELOLW\
7KH+RXVLQJ$XWKRULW\SURSRUWLRQDWHVKDUHRI7RWDO23(%OLDELOL W\RIWKH&LW\¶V3(0+&$ SODQLVGHWHUPLQHGE\WKH&LW\¶VILVFDO\HDUFRQWULEX WLRQPDGHE\WKH+RXVLQJ $XWKRULW\RYHUWKHWRWDO3(0&$SODQFRQWULEXWLRQ7KHIROORZLQJWDEOHVKRZVWKH+RXVLQJ $XWKRULW\¶VSURSRUWLRQDWHVKDUHRIWKH&LW\¶V3(0+&$SODQ7RWDO 23(%OLDELOLW\RYHUWKH PHDVXUHPHQWSHULRGHQGHG'HFHPEHU
26 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%
&RQWLQXHG
7RWDO23(%
/LDELOLW\
D
3ODQ)LGXFLDU\
1HW3RVLWLRQ
E
7RWDO23(%
/LDELOLW\
F
D
E
23(%
%DODQFHDW-DQXDU\
%DODQFHDW'HFHPEHU
0HDVXUHPHQW'DWH
1HW&KDQJHV
,QFUHDVH
'HFUHDVH
7KH +RXVLQJ $XWKRULW\¶V SURSRUWLRQDWHVKDUH RI WKH7RWDO 23(% OLDELOLWLHV LV DW WKH PHDVXUHPHQWGDWHRI'HFHPEHU
0HDVXUHPHQW'DWH
-XQH
-XQH
&KDQJH,QFUHDVH
'HFUHDVH
6HQVLWLYLW\RIWKH7RWDO23(%/LDELOLW\WR&KDQJHVLQWKH'LVFRXQW5DWH
7KHIROORZLQJSUHVHQWVWKHWRWDO23(%OLDELOLW\RIWKH&LW\DV ZHOODVZKDWWKH&LW\¶VWRWDO 23(%OLDELOLW\ZRXOGEHLILWZHUHFDOFXODWHGXVLQJDGLVFRXQWUDWHWKDWLVSHUFHQWDJHSRLQW ORZHU
SHUFHQW
RUSHUFHQWDJHSRLQWKLJKHU
SHUFHQW
WKDQWKHFXUUHQWGLVFRXQW
UDWH
'LVFRXQW5DWH
&XUUHQW'LVFRXQW
5DWH
'LVFRXQW5DWH
3ODQ
V1HW23(%/LDELOLW\
$VVHW
6HQVLWLYLW\RIWKH7RWDO23(%/LDELOLW\WR&KDQJHVLQWKH+HDOWK&DUH&RVW7UHQG5DWHV
7KHIROORZLQJSUHVHQWVWKHWRWDO23(%OLDELOLW\RIWKH&LW\DV ZHOODVZKDWWKH&LW\¶VWRWDO 23(% OLDELOLW\ ZRXOG EH LI LW ZHUH FDOFXODWHG XVLQJ KHDOWKFDUHF R V W W U H Q G U D W H V W K D W D U H SHUFHQWDJHSRLQW ORZHU
± +02 RU 332 GHFUHDVLQJ WR RU
SHUFHQWDJHSRLQWKLJKHU
+02RU332GHFUHDVLQ JWR
WKDQWKH
FXUUHQWKHDOWKFDUHFRVWWUHQGUDWHV
+02
332
GHFUHDVLQJWR
+02332
&XUUHQW+HDOWKFDUH&RVW
7UHQG5DWHV
+02332
GHFUHDVLQJWR
+02332
+02
332
GHFUHDVLQJWR
+02332
3ODQ
V1HW23(%/LDELOLW\
$VVHW
27 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
127(672),1$1&,$/67$7(0(176
&217,18('
-81(
1RWH
2WKHU3RVW(PSOR\PHQW%HQHILWV
23(%
&RQWLQXHG
G 23(%([SHQVHDQG'HIHUUHG2XWIORZRI5HVRXUFHV5HODWHGWR23(%
)RU WKH ILVFDO \HDU HQGHG -XQH WKH &LW\ UHFRJQL]HG 23(% H[SHQVHV LQ WKH DPRXQWRI$W-XQHWKH&LW\UHSRUWHGGHIHUUH GRXWIORZVRIUHVRXUFHV UHODWHGWR23(%IURPWKHIROORZLQJVRXUFHV
'HIHUUHGRXWIORZV
RIUHVRXUFHV
'HIHUUHGLQIORZV
RI5HVRXUFHV
7 RWDO
3HQVLRQFRQWULEXWLRQDIWHUPHDVXUHPHQWGDWH
'LIIHUHQFHVEHWZHHQH[SHFWHGDQGDFWXDOH[SHULHQFH
&KDQJHVRIDVVXPSWLRQV
7KH DPRXQWV DERYH DUH QHW RI RXWIORZV UHFRJQL]HG LQ WKH PHDVXUHPHQW SHULRG H[SHQVH
7KH
UHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHG WR23(%UHVXOWLQJIURP WKH&LW\¶VFRQWULEXWLRQVVXEVHTXHQWWRWKHPHDVXUHPHQWGDWHGXU LQJWKH\HDUHQGHG-XQH ZLOOEHUHFRJQL]HGDVDUHGXFWLRQRIWKH7RWDO23(%O LDELOLW\LQWKH\HDUHQGLQJ -XQH2WKHUDPRXQWVUHSRUWHGDVGHIHUUHGRXWIORZVRIUHVRXUFHVUHODWHGWR23(% ZLOOEHUHFRJQL]HGLQIXWXUH23(%H[SHQVHDVIROORZV
<HDU(QGLQJ
-XQH
'HIHUUHG
2XWIORZV
,QIORZV
RI5HVRXUFHV
7KHUHDIWHU
7RWDO
1RWH
6HOI,QVXUDQFH3URJUDP
7KH 6HOI,QVXUDQFH ,QWHUQDO 6HUYLFH )XQG LV SDUW RI WKH &LW\¶V VHOILQVXUDQFH SURJUDP IRU XQHPSOR\PHQWLQVXUDQFHZRUNHUV¶FRPSHQVDWLRQDQGJHQHUDOOLDEL OLW\7KH&LW\LVDPHPEHU RI WKH &DOLIRUQLD 6WDWH $VVRFLDWLRQ RI &RXQWLHV ([FHVV ,QVXUDQF H $XWKRULW\ &6$&(,$
7KURXJK &6$&(,$ WKH &LW\ KDV D SURJUDP OLPLW RI PLOOLRQ GROODUV ZLWK D VHOILQVXUHG UHWHQWLRQ RI PLOOLRQ IRU LWV H[FHVV OLDELOLW\ SURJUDP DQG ZRUNHUV¶ FRPSHQVDWLRQ SURJUDP $GGLWLRQDOO\ WKH &LW\ SXUFKDVHV FDWDVWURSKLF H[FHVV OLDELOLW\ FRYHUDJH WKDW SURYLGHV DQ DGGLWLRQDOPLOOLRQLQFRYHUDJH
1RWH
&RPPLWPHQWVDQG&RQWLQJHQFLHV
$V RI -XQH LQ WKH RSLQLRQ RI WKH +RXVLQJ $XWKRULW\ PDQDJHPHQW WKHUH ZDV QR RXWVWDQGLQJ PDWWHU WKDW ZRXOG KDYH D VLJQLILFDQW HIIHFW RQ WKH ILQDQFLDO SRVLWLRQ RI WKH +RXVLQJ$XWKRULW\
28 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
BUDGETARY COMPARISON SCHEDULE
HOUSING AUTHORITY FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 (390,378)$ (390,378) $ (390,378) $ -$ Resources (Inflows):
Intergovernmental 18,607,376 19,231,747 21,738,094 2,506,347 Interest and rentals 143,610 143,610 129,440 (14,170) Miscellaneous 11,259 11,259 2,204 (9,055) Amounts Available for Appropriations 18,371,867 18,996,238 21,479,360 2,483,122 Charges to Appropriations (Outflows):
Urban development 18,876,254 19,431,288 20,274,179 (842,891) Total Charges to Appropriations 18,876,254 19,431,288 20,274,179 (842,891) Budgetary Fund Balance, June 30 (504,387)$ (435,050)$ 1,205,181$ 1,640,231$ 29 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
BUDGETARY COMPARISON SCHEDULE
HOUSING SUCCESSOR SPECIAL REVENUE FUND
YEAR ENDED JUNE 30, 2021
Variance with
Final Budget
Budget Amounts Actual Positive
Original Final Amounts (Negative)
Budgetary Fund Balance, July 1 17,724,242$ 17,724,242 $ 17,724,242 $ -$ Resources (Inflows):
Intergovernmental - 200,000 35,630 (164,370) Charges for services 1,000 1,000 18,786 17,786 Interest and rentals 288,584 288,584 368,323 79,739 Contributions - - 182,425 182,425 Miscellaneous 47,500 47,500 154,181 106,681 Amounts Available for Appropriations 18,061,326 18,261,326 18,483,587 222,261 Charges to Appropriations (Outflows):
Urban development 967,030 1,192,264 1,032,708 159,556 Capital outlay 366,254 366,254 54,119 312,135 Total Charges to Appropriations 1,333,284 1,558,518 1,086,827 471,691 Budgetary Fund Balance, June 30 16,728,042$ 16,702,808$ 17,396,760$ 693,952$ 30 Attachment No.2
&,7<2)32021$+286,1*$87+25,7<
5(48,5('6833/(0(17$5<,1)250$7,21
-81(
%XGJHWDU\,QIRUPDWLRQ
7KH+RXVLQJ$XWKRULW\DGRSWVDQDQQXDOEXGJHWRQDEDVLVFRQVLVWHQWZLWKJHQHUDOO\DFFHSWHGDFFRXQWLQJ SULQFLSOHVLQWKH8QLWHV6WDWHVDQGXWLOL]HVDQHQFXPEUDQFHV\VWHPDVDPDQDJHPHQWFRQWUROWHFKQLTXHWR DVVLVWLQFRQWUROOLQJH[SHQGLWXUHVDQGHQIRUFLQJUHYHQXHSURYLVLRQV 31 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
SCHEDULE OF AUTHORITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY AND RELATED RATIOS AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
Measurement Period 2015 2016 2017 2018
Proportion of the Net Pension Liability 4. 2100% 4.4500% 4.5600% 4.3800% Proportionate Share of the Net Pension Liability 2, 143,691$ 2,944,443 $ 3,379,128 $ 3,181,555 $ Covered Payroll 1,029,336$ 1,220,184$ 1,209,304$ 1,811,656$ Proportionate Share of the Net Pension Liability as
Percentage of Covered-Employee Payroll 208.26% 241.31% 279.43% 175.62% Plan Fiduciary Net Position as a Percentage of the Total Pension Liability 80.06% 74.95% 74.90% 75.15%
Notes to Schedule:
Benefit Changes: There were no changes in benefit terms.
Changes of Assumption: Non in 2020 or 2019, there were no changes. In 2018, demographic assumptions and inflation rate were changed in accordance to the CalPERS Experience Study and Review of Actuarial Assumptions December 2017. There were no changes in discount rate in 2018. In 2017, the accounting discount rate reduced from 7.65 percent to 7.15 percent. In 2016, there were no changes. In 2015, amounts reported reflect an adjustment of the discount rate from 7.5 percent (net of administrative expense) to
7.65 percent (without a reduction for pension plan administrative expense.) In 2014, amounts reported were based on the 7.5 percent discount rate.
32 Attachment No.2
2019 2020
4.0700% 4.0700%
3,156,889$ 3,844,201 $
1,857,129$ 1,483,710 $
169.99% 259.09%
80.06% 80.06%
33 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
SCHEDULE OF AUTHORITY'S PLAN CONTRIBUTIONS - PENSION
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2014-2015 2015-2016 2016-2017 2017-2018
Actuarially Determined Contribution 158,304$ 209,422$ 229,743$ 258,452$ Contribution in Relation to the Actuarially Determined Contribution (158,304) (209,422) (229,743) (258,452) Contribution Deficiency (Excess) -$ - $ - $ -$ Covered-Employee Payroll 1,029,336$ 1,220,184$ 1,209,304$ 1,811,656$ Contributions as a Percentage of Covered-Employee Payroll 15.38% 17.16% 19.00% 14.27% Note to Schedule:
Valuation Date: June 30, 2019
Methods and assumptions used to determine contribution rates:
Actuarial Cost Method Entry Age Normal Cost Method
Amortization method Level percentage of payroll, closed Asset valuation method Direct rate smoothing
Inflation
Payroll Growth
Projected Salary Increases
Investment Rate of Return 7.00% (net of administrative expenses) Retirement Age
Mortality
(1) Historical information is required only for measurement for which GASB 68 is applicable. Additional years of information will be presented as it becomes available.
The mortality table used was developed based on CalPERS' specific data. The table includes 15 years of mortality improvements using 90 percent of Society of Actuaries' Scale 2016. For more details on this table, please refer to the 2017 experience study report.
2.50%
2.75%
Varies by Entry Age and Service
All other actuarial assumptions used in the June 30, 2019 valuation were based on the results of an actuarial experience study for the period from 1997 to 2015, including updates to salary increase, mortality and retirement rates. The Experience Study report may be accessed on the CalPERS website at www.calpers.ca.gov under Forms and Publications. 34 Attachment No.2
2018-2019 2019-2020 2020-2021
280,947$ 329,267$ 370,105$
(280,947) (329, 267) (370, 105)
-$ - $ -$
1,857,129$ 1,483,710 $ 1,520,127 $
15.13% 22.19% 24.35%
35 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019 2020 2021
Measurement Period June 30, 2017 June 30, 2018 June 30, 2019 June 3 0, 2020 Plan's proportion of the Total OPEB Liability 3.0600 % 2.9500% 2.8000% 3.1074% Plan's proportion share of the Total OPEB Liability 2,957,583 $ 2,715,755 $ 2,827,610 $ 3,372,383 $ Plan's Covered-Employee Payroll 1,618,640$ 1,811,656$ 1,857,129$ 1,483,710$ Plan's Proportion Share of the Total OPEB Liability as a Percentage of its Covered-Employee Payroll 182.72% 149.90% 152.26% 227.29% Plan's Proportion Share of the Fiduciary Net Position as a Percentage of the Plan's Total OPEB Liability 0.00% 0.00% 0.00% 0.00% (1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Fiscal Year 2018 was the first year of implementation. Future years' information will be displayed up to 10 years as information becomes available.
SCHEDULE OF AUTHORITY'S PROPORTIONATE SHARE OF NET OTHER POST-EMPLOYMEN T ENEFITS LIABILITY AND
RELATED RATIOS
36 Attachment No.2
CITY OF POMONA HOUSING AUTHORITY
SCHEDULE OF AUTHORITY'S PLAN CONTRIBUTIONS - OTHER POST-EMPLOYMENT BENEFITS PLAN AS OF JUNE 30, FOR THE LAST TEN FISCAL YEARS (1)
2018 2019 2020 2021
119,682$ 108,899$ 66,696$ 65,329$
(119,682) (108,899) (66,696) (65,329)
-$ - $ - $ - $ 1,811,656$ 1,857,129 $ 1,483,710 $ 1,520,127 $
6.61% 5.86% 4.50% 4.30%
Notes to Schedule:
Methods and assumptions used to determine contributions:
Actuarial Cost Method
Amortization Method
Asset Valuation Method
Discount rate
Inflation
Payroll growth 3.0% per
annum, in
aggregate
Individual salary growth N/A
Retirement age Consistent with the most recent CalPERS pension plan valuation.
Mortality Consistent with the most recent CalPERS pension plan valuation.
Medical Trend Rates 6.0% (HMO) and 6.5% (PPO) to ultimate 5% in 2023 and beyond.
Entry Age Normal, level percent of payroll
Market Value
3.80%
2.75%
Level percent of pay
(1) Historical information is required only for the measurement periods for which GASB 75 is applicable. Additional years of information will be presented as it becomes available.
Contribution in Relation to the Actuarially Determined Contributions Contribution Deficiency (Excess)
Covered-employee payroll
Contributions as a percentage of covered-employee payroll Actuarially Determined Contribution
37 Attachment No.2