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Home My WebLink About01-27-15 TSHA Agenda packet Page 1 of 2 AGENDA BOARD OF DIRECTORS OF THE TEXAS STUDENT HOUSING AUTHORITY (AN INSTRUMENTALITY OF THE TOWN OF WESTLAKE) January 27, 2015 6:00 PM TEXAS STUDENT HOUSING OFFICE 3 VILLAGE CIRCLE, COUNCIL CHAMBERS WESTLAKE, TEXAS 76262 1. CALL TO ORDER 2. REVIEW AND APPROVE MINUTES FOR THE MEETING ON JUNE 17, 2014. 3. DISCUSS AND CONSIDER APPROVAL OF TSHA, CAMBRIDGE, TOWN LAKE, AND AUSTIN BALLPARK ANNUAL AUDITS FOR FY 2013-2014 PRESENTED BY WEAVER TIDWELL, L.L.P. 4. DISCUSSION REGARDING PENDING LITIGATION - TEXAS STUDENT HOUSING AUTHORITY v. BRAZOS COUNTY APPRAISAL DISTRICT AND APPRAISAL REVIEW BOARD FOR BRAZOS COUNTY APPRAISAL DISTRICT. 5. DISCUSS AND CONSIDER THE NUMBER OF SCHOLARSHIPS TO OFFER FOR THE 2015-2016 SCHOOL YEAR. 6. EXECUTIVE DIRECTORS REPORT 7. EXECUTIVE SESSION The Board will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.074(a)(1): Deliberation Regarding Personnel Matters – to deliberate the appointment, employment, evaluation, reassignment, duties, of a public officer or employee: Executive Director 8. RECONVENE MEETING Page 2 of 2 9. TAKE ANY ACTION, IF NEEDED, FROM EXECUTIVE SESSION ITEMS. 10. ADJOURN ANY ITEM ON THIS POSTED AGENDA COULD BE DISCUSSED IN EXECUTIVE SESSION AS LONG AS IT IS WITHIN ONE OF THE PERMITTED CATEGORIES UNDER SECTIONS 551.071 THROUGH 551.076 AND SECTION 551.087 OF THE TEXAS GOVERNMENT CODE. CERTIFICATION I certify that the above notice was posted at the Town Hall of the Town of Westlake, 3 Village Circle, Westlake, Texas, on January 21, 2015, by 5:00 p.m. under the Open Meetings Act, Chapter 551 of the Texas Government Code. _____________________________________ Kelly Edwards, Secretary If you plan to attend this public meeting and have a disability that requires special needs, please advise the Town Secretary 48 hours in advance at 817-490-5710 and reasonable accommodations will be made to assist you. TSHA Min 06/17/14 Page 1 of 3 MINUTES OF THE BOARD OF DIRECTORS OF THE TEXAS STUDENT HOUSING AUTHORITY (AN INSTRUMENTALITY OF THE TOWN OF WESTLAKE) June 17, 2014 PRESENT: President Jim Carter, Directors, Scott Bradley, Liz Garvin, Gregg Malone, and Tracy Schornack. George Ledak arrived at 6:12 p.m. ABSENT: OTHERS PRESENT: Executive Director Pete Ehrenberg and Secretary Kelly Edwards. 1. CALL TO ORDER President Carter called the meeting to order at 6:06 p.m. 2. REVIEW AND APPROVE MINUTES FOR THE MEETING ON JANUARY 21, 2014. MOTION: Director Bradley made a motion to approve the minutes. Director Malone seconded the motion. The motion carried by a vote of 5-0. 3. DISCUSS AND CONSIDER APPROVAL OF THE CAMBRIDGE ANNUAL BUDGET FOR FY 2014-2015. Executive Director Pete Ehrenberg provided an overview of the proposed budget. Discussion ensued regarding the status of the lawsuit to be heard or not heard by the Supreme Court, property taxes, and proposed amount for legal fees. TSHA Min 06/17/14 Page 2 of 3 MOTION: Director Garvin made a motion to approve the FY 2014-2015 budget for Cambridge. Director Schornack seconded the motion. The motion carried by a vote of 6-0. 4. DISCUSS AND CONSIDER APPROVAL OF THE TOWN LAKE, AUSTI N ANNUAL BUDGET FOR FY 2014-2015. Executive Director Pete Ehrenberg provided an overview of the proposed budget. Discussion ensued regarding the capital replacement funding and resurfacing of the pool. MOTION: Director Malone made a motion to approve the FY 2014-2015 budget for Town Lake. Director Schornack seconded the motion. The motion carried by a vote of 6-0. 5. DISCUSS AND CONSIDER APPROVAL OF THE BALLPARK, AUSTIN ANNUAL BUDGET FOR FY 2014-2015. Executive Director Pete Ehrenberg provided an overview of the proposed budget. Discussion ensued regarding scholarship options. Director Ehrenberg stated he would provide additional details during discussion for item 7. MOTION: Director Malone made a motion to approve the FY 2014-2015 budget for Ballpark. Director Schornack seconded the motion. The motion carried by a vote of 6-0. 6. DISCUSS AND CONSIDER APPROVAL OF THE TSHA ANNUAL BUDGET FOR FY 2014-2015. Executive Director Pete Ehrenberg provided an overview of the proposed budget. Discussion ensued regarding the type of expenses that would be paid out of the contingency fund and the asset manage fee. MOTION: Director Garvin made a motion to approve the FY 2014-2015 budget for the Authority. Director Bradley seconded the motion. The motion carried by a vote of 6-0. MOTION: Director Bradley made a motion to amend the Authority budget to reflect the asset management fee paid from Emet Captial. Director Garvin seconded the motion. Director Garvin seconded the motion. The motion carried by a vote of 6-0. TSHA Min 06/17/14 Page 3 of 3 7. DISCUSS AND CONSIDER APPROVAL AUTHORIZING THE EXECUTIVE DIRECTOR TO SIGN DOCUMENTS RELATED TO THE PENDING FORECLOSURE FOR THE BALLPARK, AUSTIN PROPERTY. Executive Ehrenberg provided an overview of the proposed agreement. Discussion regarding options for students to continue the current scholarships at Ballpark, considering students currently at Ballpark the first opportunity to move to the Town Lake property, MOTION: Director Bradley made a motion to approve and authorize the Executive Director to execute the termination agreement with Austin Ballpark Lender, LLC. Director Ledak seconded the motion. The motion carried by a vote of 6-0. 8. EXECUTIVE DIRECTOR’S REPORT Executive Director Ehrenberg provided the occupancy rates for the properties and information regarding the pool resurfacing project. 9. ADJOURN President Carter asked for a motion to adjourn. MOTION: Director Schornack made a motion to adjourn the meeting. Director Garvin seconded the motion. The motion carried by a vote of 6-0. There being no further business before the board, President Carter declared the meeting adjourned at 6:44 p.m. THE TEXAS STUDENT HOUSING AUTHORITY BOARD OF DIRECTORS ON JANUARY 27, 2015. ATTEST __________________________________ Jim Carter, President _______________________________ Kelly Edwards, Secretary 3. DISCUSS AND CONSIDER APPROVAL OF TSHA, CAMBRIDGE, TOWN LAKE, AND AUSTIN BALLPARK ANNUAL AUDITS FOR FY 2013-2014 PRESENTED BY WEAVER TIDWELL, L.L.P. THE AUDITOR WILL HAVE A PRESENTATION FOR EACH AUDIT AND COPIES WILL BE DISTRIBUTED AT THE MEETING Texas Student Housing Authority Item # 3 4. DISCUSSION REGARDING PENDING LITIGATION - TEXAS STUDENT HOUSING AUTHORITY v. BRAZOS COUNTY APPRAISAL DISTRICT AND APPRAISAL REVIEW BOARD FOR BRAZOS COUNTY APPRAISAL DISTRICT. Texas Student Housing Authority Item # 4 5. DISCUSS AND CONSIDER THE NUMBER OF SCHOLARSHIPS TO OFFER FOR THE 2015-2016 SCHOOL YEAR. Texas Student Housing Authority Item # 5 Texas Student Housing Authority Item # 6 Executive Director’s Report The Board will conduct a closed session pursuant to Texas Government Code, annotated, Chapter 551, Subchapter D for the following: a. Section 551.074(a)(1): Deliberation Regarding Personnel Matters – to deliberate the appointment, employment, evaluation, reassignment, duties, of a public officer or employee: Executive Director Texas Student Housing Authority Item # 7 Executive Session Texas Student Housing Authority Item # 8 Reconvene Meeting Texas Student Housing Authority Item # 9 Necessary Action Texas Student Housing Authority Item # 10 - Adjournment � jjjj11 Texas Stud Housing Ei Board Meeting January 27, 2015 weaver)oo- Assurance•Tax•Advisory -, �j �� u �IjuvuvU � uvUVUUUUUUUUUUJJJJJJJJJJJJJJJJJ -; Overview • Introduction • Audit Process • Required Communications • Audit Results • Financial Highlights • New Accounting Pronouncements • Questions weaver>o-- Assurance•Tax•Advisory 01, 010 16 �`w7 s. J j j j j j J ,-, "Im I kA ve ie .� U V U U V U V k—) 0 0 U U U U � U U U U U U U U U U U U U _) U �_JVU � JVVjjjJ �; The Firm of Texas weaver Assurance-Tax•Advisory Weaver os ,she largest independent accounting firm in 7 exas and Me S®uthwes-'L We are conMOenfly named a top firm ire 'n,he s�a e and nationaHy. #4 Largest Tarrant County Accounting Firms I Fort Worth Business Press #8 Largest North Texas Accounting Firms I Dallas Business Journal #7 Largest Austin Accounting Firms I Austin Business Journal #14 Largest Houston-Area Public Accounting Firms I Houston Business Journal #5 Largest San Antonio Accounting Firms I San Antonio Business Journal 2014 Top 50 Firms I INSIDE Public Accounting 2014 BEST of the BEST Firm I INSIDE Public Accounting •„"I[��rwbrc : :�EUc Texas 5 Engagement Leadership weaver>o-- Assurance•Tax•Advisory We know your questions don't end when the audit does, so the team leadership remains available to you throughout the year. Jerry Gai6ther Partner, Assurance Services .john DeBurrc Senior Manager, Assurance Services 5 .. UUUUVUUUUUUUUUUUUUUUUUUUUUUJJ UJUJJJJJJJJJJ �: Engagement Team weaver)oo- Assurance•Tax•Advisory N �., �, uUVUVUVUUUUUUUUUU �J �JUU �J �JUU �JU �JUV � U � �J �J � � � � J � ��, _� �. Engagement Timeline weaver)oo- Assurance•Tax-Advisory Continuous Communication M -) " k-) � �Ij � �j �_) U U U U U v U V U U U U U U U U U U J J U J J J J J J J J J J J J J J Audit Process weaver Assurance•Tax-Advisory • The audit was performed in accordance with Generally Accepted Auditing Standards (GARS). • The audit process was a risk-based approach in which we identified potential areas of risk that could lead to material misstatement of the financial statements. We tailored our audit programs and resources to specifically address the following areas of risk: • Revenue recognition and related receivables • Payables, accrued liabilities, and expenditures • Long-term debt and compliance with covenants 0 RELATIOn,AnALysis 3� ?A M Ilk. FLOLJ np PERFORM Ti j STAnDARDS assnA�TSE)iTenrnionn �_ S STIq PRESEnTED CPS AUNT D uuc�hrLy � "REPORT SUFFIClEfiT�^� ePD'•��z�o^5;�;., , > ASSESS �QySA`n�1�Lv.. ApECU 6 Audit Process weaver)000- Assurance•Tax•Advisory Interim fieWvvork and risk assessment were performed in September 2014. Procedures included: • Walkthrough of accounting controls over significant transaction cycles: • Cash receipts • Purchasing and accounts payable • Test of internal controls: • Cash disbursements free _.' UUUVUVUVUUUUUUUUUUUUUUUUUUUUUUUJJJJJJJJJJJ ,' Audit Process weaver)opo- Assurance•Tax•Advisory Final fieldwork- performed in October 2014. • Testing of significant accounting balances using a combination of vouching of material transactions, sampling transactions and applying analytical procedures. • Assisting with the preparation of the financial statements J �/ -/ `/ �j �-) �-, ',..... 1` �-) -/ l v v v u v V V V U U U U U \/ U U U U \! U U U U U U U U U \J U U --' uuUUU-) UUU UUuJJJJJJJJJJJJJJJJJJJJJ �; Required Communications to Those in Charge of Governance Auditor's responsibility under generally accepted auditing standards (GRAS) weaver>o--• The financial statements are the responsibility of the Authority/Projects. Our audit was designed in accordance with GAAS in the U.S. and provide for reasonable rather than absolute assurance that the financial statements are free of material misstatement. Our responsibility is to express an opinion about whether the financial statements prepared by management with your oversight are fairly presented , in all material respects, in conformity with U.S. generally accepted accounting principles. Our audit of the financial statements does not relieve you or management of your responsibilities. The audit of the fiscal year 2014 financial statements has been substantially completed and we will issue unmodified opinions, with an emphasis paragraph regarding going concern. 13 1 � � � `J "I-) \IJvuvUU `-) UUUUUUUUUUUUUUUUUUUUJJJJJJJJJJ �, Required Communications to Those in Charge of Governance weaver Assurance•Tax•Advisory Unusual transactions and The significant accounting policies used by the Authority / Projects are described in Note 2 to the the adoption of new basic financial statements. accounting principles New GASB pronouncements implemented in 2014 included GASB Statement No. 65, "Items Previously Reported as Assets and Liabilities". As a result, bond issuance costs are no longer reported as assets in the statement of net position, requiring reductions of beginning net position of $2,145,311 (Ballpark Austin); $605,372 (Ridge at North Texas); and $601 ,573 (Town Lake Austin). We noted no transactions entered into by the entities during the year for which there is a lack of authoritative guidance or consensus. 14 �- �- �- � �_ �- �_ �-_ � �-_ �-' �,JU �.JU' 000UUUUULJLJ �-) 000J -JUJU. -)J J �J � � � � vJJ � Required Communications to ' Those in Charge of Governance Fraud and illegal acts Material weakness in internal control Other information contained in documents containing audited financial statements Management judgments and accounting estimates weaver)000- Assurance•Tax•Advisory No fraud, irregularities, or illegal acts were noted. No material weaknesses noted. We provided an "in relation to opinion" on supplementary information accompanying the financial statements. We performed limited procedures on the MD&A . We did not provide any assurance on this information. Management's estimates of allowances for uncollectible receivables and estimated useful lives for capital assets were evaluated and determined to be reasonable in relation to the financial statements as a whole. 15 -) U �,� UU � � �-) j UUUUUUUUUUUUVUUU UUUUUUUUUUUUUU ..JUUU `: Required Communications to Those in Charge of Governance Difficulties encountered Management representations Management consultations Auditor independence weave r Assurance•Tax•Advisory We encountered no significant difficulties. We requested certain representations from management that will be included in the management representation letter. We are not aware of management consulting with other accountants for a second opinion. No independence issues noted. 0 .) v � � � �_) �_) UvU U UUUUUUUUUUUUUUJUUUJJJJJJJJJJJJJJ �; Required Communications to Those in Charge of Governance Audit adjustments Other material written communications between Weaver and Tidwell, L.L.P., and the Texas Student Housing Entities. K Ad weave r Assurance•Tax•Advisory Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are trivial, and communicate them to the appropriate level of management. There were no uncorrected misstatements to report. Significant audit adjustments included entries to record current year depreciation on capital assets and to record current year interest accruals on long-term debt. Nothing to note. - - � �� vv � �,� � v � v � v � U �..� vUVUVUUVUV000VUVV � v � � � J �..; �, _ - w/ •iµ . , . . 4., e., �: '+.� 0 Iv � uu �-) u � vuvUVUUUUUUUUUUUUUUUUUU U U U J �-JUUVVjJJj � �, Audit Results • We will issue the Independent Auditor's Reports on each entity's financial statements - Unmodified opinion, with an emphasis paragraph regarding going concern • We will issue our management report addressing the following issues: - Segregate duties over Authority cash disbursements - Maintain supporting documentation for disbursements - Review old account balances weave r Assurance•Tax•Advisory to �_ UUUUU �J �.JLJLJ �JIJULJIJLJ �J �J �.J �JIJIJ �JU �JUUUI� U � � UVU � � � � � � .� �, i Y. W 0 �r - �-A •' _4. `ARE`- . . .w., L .� AW iL �� vv � v � vuvuvUVUVUUVVUVVVVjjjJjj � Financial Highlights weave r Assurance•Tax•Advisory Comparison of Operating Revenues and Expense $6,000,000 $5,000,000 $4,000,000 - $3,000,000 $2,000,000 Revenues $1,000,000 ® Expenses $_ — Texas Ballpark Cambridge Ridge at Town Lake Student Austin North Austin Housing Texas Authority 21 ) �� -) �-) �� U UUUUUUUUUUUUUUUVUUUUUUUUUUUUUUUUUUUUU �. Financial Hi ghlights weaver Assurance-Tax-Advisory Comparison of Operating Revenues - FYI and FYI $7,000,000 $6,000,000 $5,000,000 $4,000,000 _ $3,000,000 $2,000,000 2014 $1,000,000 ■ 2013 $- Texas Ballpark Cambridge Ridge at Town Lake Student Austin North Austin Housing Texas Authority 22 J U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U U V U V U U U U U U � Financial Highlights weaver Assurance•Tax•Advisory ooMPCIF'wn o Operating Expenses -FYI 4 and FYI $5,000,000 $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 2014 $2,000,000 ❑ 2013 $1,500,000 $1,000,000 $500,000 Texas Student Ballpark Austin Cambridge Ridge at North Town Lake Austin Housing Authority Texas 23 -,)U U000UUU � uvuvUUUUUUUUUU � UU� jvUUVUVUVUjJjjv ,, F i0 n ancial Highlights weaver Assurance•Tax•Advisory Comparison of Operating Income to DeCz)) G $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Ballpark Cambridge Ridge at Town Lake Austin North Texas Austin Operating Inc ❑ Debt Service 0 U u U U U U v U U U U J J J J J J J J J J J J J J J J We appreciate the opportunity to work with Texas Student Housing and look forward to our continued relationship. weave r Assurance•Tax•Advisory �-, k, u �-, �-. �, uuuuuuuuuuuuuuuuuuuuuu �-) uUV �-) uJViiiii i