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ASHLEY PLACE DEVELOPMENT IH LIMITED PARTNERSHIP
AUDITED FINANOAL STATEMENTS AND
INDEPENDENT AUDITORS* REPORT
DECEMBER 31,2009 AND 2008
Underprovisions of state law, this report is a public document. Acopy ofthe report has been submitted to the entity and other appropriate public officials. The report is available for public Inspection at the Baton Rouge office of the Legislative Auditor and, where appropriate, at the office of the paristji clerk of court.
Release Date imM
ASHLEY PLACE DEVELOPMENT ffl LIMITED PARTNERSHIP
AUDITED FINANCIAL STATEMENTS
AS OF AKD FOR THE YEARS ENDED DECEMBER 31,2009 AND 2008
TABLE OF CONTENTS
PAGE
INDEPENDENT AUDITORS' REPORT 1 -2
FINANCIAL STATEMENTS
BALANCE SHEETS 3-4
STATEMENTS OF OPERATIONS 5
STATEMENTS OF PARTNERS' EQUITY (DEnCIT) 6
STATEMENTS OF CASH FLOWS 7-8
NOTES TO FINANCIAL STATEMENTS 9-15
SUPPLEMENTAL DEFORMATION
SCHEDULE OF EXPENSES 16-17
INDEPENDENT AUDITORS* REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS 18-19
LITTLE & ASSOCIATES LLC CERTIFIED PUBUC ACCOUNTANTS
Vfm. TOtX) LfTTU. CPA CHARLES R. MARCHBANK8, JR., CPA
INDEPENDENT AUDITORS' REPORT
To the Partners Ashley Place Development III Limited Partnership Denham Springs, Louisiana
We have audited the accompanying balance sheets of Ashley Place Development III, Limited Partnership (the Partnership) as of December 31, 2009 and 2008 and the related statements of operations, partners' equity (deficit), and cash flows for the years then ended. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on ese financial statements based on our audits.
We conducted our audits in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Govemment Auditmg Standards, issued by the Comptroller General ofthe United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in tiie financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements refared to above present feirly, in all material respects, the financial position of Ashley Place Development III, Limited Partnership as of December 31, 2009 and 2008 and the results of its operations, changes in partners' equity (deficit), and cash flows for tiie years then ended in conformity with U.S. generally accepted accounting principles.
In accordance with Govemment Auditing Standards, we have also issued our report dated April 30, 2010, on our consideration of Ashley Place Development HI, Limited Partnership's intemal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of intemal control over financial reporting and compliance and the results of tiiat testing, and not to provide an opinion on the intemal control over financial reporting or on compliance. That report is an integral part of an audit perfonned in accordance with Govemment Auditing Standards and should be considered in assessing the results of our audit.
PHONE (318) 361-9600 • FAX (318) 361-9620 • 805 NORTH 31 " ^ STREET • MONROE. LA 71201
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental infomiation presented in the Schedule of Expenses is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplemental infomiation in the Schedule of Expenses for tiie years ended December 31,2009 and 2008 have been subjected to the auditing procedures applied in the audit of tiie basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic fmancial statements taken as a whole.
y ^ i 4 i > ^ a i ^ } j ^ Monroe, Louisiana April 30, 2010
ASHLEY PLACE DEVELOPMENT HI LIMITED PARTNERSHIP
BALANCE SHEETS DECEMBER31,
ASSETS
CURRENT ASSETS Cash and Cash Equivalents Accounts Receivable - Tenants
Total Current Assets
2009
$ 70.833 57
70,890
2008
RESTRICTED DEPOSITS AND FUNDED RESERVES Tenants' Security Deposits
Total Restricted Deposits and Funded Reserves 6,500 6.500
PROPERTY AND EQUIPMENT Buildings Site Improvements Fumiture and Fixtures
Total Buildings and Improvements Less: Accumulated Depreciation
Net Depreciable Assets Land
Total Property and Equipment
1,799,891 1.754,561
472,567 4.027.019 079,982)
3.847.037 259.766
4,106.803
1,799,891 1.678,439
472.567 3,950,897
-3,950,897
259,766 4.210,663
OTHER ASSETS Utility Deposits Permanent Loan Fees Syndication Costs Tax Credit Costs Less: Accumulated Amortization
Totiil Otiier Assets
Total Assets
102 6,635
42.000 19.805 (2.146) 66,396
$ 4.250,589
-6,635
42,000 19.805
(165) 68,275
$ 4.278,938
The accompanying notes are an inte^l part of these financial statements.
3
ASHLEY PLACE DEVELOPMENT IH LIMITED PARTNERSHIP
BALANCE SHEETS DECEMBER 31,
LIABE.ITIES AND PARTNERS' EQUITY (DEFICIT)
2009 2008 CURRENT LIABILITIES
Accrued Interest Payable Constmction Costs Payable Development Coste Payable LISC Bridge Loan Payable Constmction Loan Payable Developer Fee Payable Deferred Rent Revenue
Total eminent Liabilities
DEPOSITS Tenant Security Deposits 6,500
Total Deposits 6.500
$ 1,900 -
10,000 -
2,600,652 319,553
622 2,932,727
S 21,310 611,151
38,290 1,416,400 1.803.607
319,553 -
4,210,311
The accompanying notes are an integral part of these financial statements.
4
LONG-TERM LIABILITIES Deferred Developer Fee Payable 93,929 93,929 Asset Management Fee Payable 3,615 Partnership Management Fees Payable 12,000 Special Services Fee Payable 7,140
Total Long-Teim Liabilities 116,684 93,929
Totol Liabilities 3,055.911 4,304.240
PARTNERS' EQUITY(DEFIC1T)
Partners' Equity (Deficit) 1,194,678 (25,302) Total Partners' Equity (Deficit) 1,194,678 (25,302)
Total Liabilities and Partners'Equity $ 4,250,589 $ 4,278.938
ASHLEY PLACE DEVELOPMENT 111 LIMITED PARTNERSHIP
STATEMENTS OF OPERATIONS FOR THE YEARS ENDED DECEMBER 31,
REVENUE Rents Late Fees, Forfeited Deposits, etc.
Total Revenue
2009
145,238 1,035
146,273
2008
EXPENSES Administrative Utilities Maintenance Insurance Management Fees Interest Depreciation and Amortization
Total Expenses
Net Operating Income (Loss)
OTHER EXPENSES Organization Expense Asset Management Fees Partnership Management Fees Special Services Fee
Total Other Expenses
25,863 11,802 16.332 13,135 10,566
129.901 181.963 389,562
(243.289)
19.437 -• -
800 -
165 20.402
(20,402)
5,000
Net Income (Loss)
3,615 12,000 7,140
22.755
$ (266,044) $
-
5,000
(25,402)
Tlie accompanying notes are an integral part of tiiese financial statements.
5
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I
ASHLEY PLACE DEVELOPMENT III LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31,
2009 2008 Cash Flows From Operating Activities: Net Income (Loss) Adjustments to Reconcile Net Income (Loss) to Net Cash
Provided (Used) by Operating Activities: Depreciation and Amortization (Increase) Decrease in Accounts Receivable - Tenants (Increase) Decrease in Utility Deposits Increase (Decrease) in Accrued Interest Payable Increase (Decrease) in Deferred Rent Increase (Decrease) in Asset Mana^ment Fees Payable Increase (Decrease) in Partnership Management Fees Payable Increase (Decrease) in Special Services Fee Payable
Total Adjustments Net Cash Provided (Used) by Operating Activities
Cash Flows From Investing Activities: Acquisition/Addition of Property and Equipment
Net Cash Provided (Used) by Investing Activities
Cash Flows From Financing Activities: Proceeds fixjro Pre-Equity/Bridge Loan Proceeds fix)m Construction Loan Pay ofF of Bridge Loan Debt Payment of Constmction Osts Payable Payment of Development Costs Payable Payment of Pemianent Loan Fees Payment of Syndication Costs Payment of Tax Credit Costs Contributions from Limited Partner Contributions from General Partner
Net Cash Provided (Used) by Financing Activities
Net Increase (Decrease) m Cash and Cash Equivalents 70,833
Cash and Cash Equivalents at Beginning of Year
$ (266,044)
181.963 (57)
(102) (19,410)
622 3,615
12,000 7.140
185,771 (80,273)
(76.122) (76.122)
_
797.045 (1,416,400)
(611.151) (28,290)
---
1,486,024 -
227,228
$ (25,402)
165 ' -
2U10 ----
21,475 (3,927)
(3.147,740) (3,147,740)
1.416,400 1,803,607
---
(6.635) (42,000) (19.805)
-100
3.151,667
CASH AND CASH EQUIVALENTS AT END OF YEAR $ 70,833
The accompanying notes are an integral part of these fmancial statements.
7
ASHLEY PLACE DEVELOPMENT III LIMITED PARTNERSHIP
STATEMENTS OF CASH FLOWS (CONTINUED) FOR THE YEARS ENDED DECEMBER 31.
2009 2008 Supplemental Disclosures of Cash Flow Information:
Cash Paid During the Year for:
Interest $ 149,311
Noncash Investing/Financing Activities;
Property and Equipment acquired through the incurrence ofa Developer Fee Payable _$ - $ 413,482
Property and Equipment acquired through tiie incun^nce of Constmction and Development Costs Payable $ - $ 649,441
The accompanying notes are an integral part of these fmancial statements.
8
ASHLEY PLACE DEVELOPMENT IH LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2009 AND 2008
NOTE A - ORGANIZATION
Ashley Place Development III, Limited Partnership (the "Partnership*") was organized in 2007 to develop, constmct, own, maintain, and operate a 28-unit rental housing apartment complex for persons of low and moderate income. The apartment complex is to be located in Denham Springs, Louisiana. AU units ofthe apartment complex are to be rented under the requirements of Section 42 ofthe Intemal Revenue Code (low income housing tax credit) which will regulate the use of the apaitment complex as to occupant eligibility and unit gross rent, among other requirem^its. The major activities and operations of tiie Partnership are govemed by ^ e Amended and Restated Limited Partnership Agreement (the Partnership Agreement) and are subject to the administrative directives, mles, and regulations of federal and state regulatory agencies, including but not limited to. the state housing finance agency. Such administrative directives, mles, and regulations are subject to ^ange by federal and state agmcies.
NOTE B - SUMMARY OF SlGNfflCANT ACCOUNTING POUCIES
A summary of the significant accounting policies consistentiy applied in the preparation of tiie accompanying financial statements follows.
Basis of Accounting
The financial statements of the Partnership are prepared on the accrual basis of accounting and in accordance witii accounting principles generally accepted in the United States of America.
Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions tiiat affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from tilose estimates.
Collateralization Policv for Financial Instmments
The Partnership does not require collateral to support financial instruments subject to credit risk.
Capitalization and Depreciation
Land, buildings, improvements, and equipment are recorded at cost. Improvements are c^italized, while expenditures for maintenance and repairs are charged to expense as incuned. Upon disposal of depreciable property, the )propriate property accounts are reduced by the related costs and accumulated depreciation. The resulting gains and losses are reflected in the statement of operations.
Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over tiieir estimated lives using tiie straight-line method. The estimated service life of the assets for depreciation purposes may be different than their actual economic useful lives.
ASHLEY PLACE DEVELOPMENT m LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31.2009 AND 2008
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Tenants* Security Deposits
Tenants' security deposits are held in a separate bank account in the name of tiie project. At December 31,2009 this account was funded in an amount equal to the security deposit liability.
Rental Income and Deferred Rents
Rental income is recognized as rentals become due. Rental payments received in advance are deferred until eamed. All leases between the Partnership and tbe tenants of tiie property are operating leases.
Tenant rent charges for the current month are due on the first ofthe month. Tenants who are evicted or move out are charged with damages and cleaning fees, if applicable. Tenant receivable consists of amounts due for rental income, other traant charges and charges for damages and cleaning fees in excess of forfeited security deposite. The Partnership does not accme interest on the tenant receivable balances.
The Partnership uses the direct write-off method to provide for uncollectible accounts. Use of this method does not result in a material difference fi^m the valuation method required by accounting principles generally accepted in tiie United States of America.
Amortization
Upon commencement of permanent financing, mortgage costs will be being amortized over the term of the mortgage loan using the straight-line method. Tax credit costs are being amortized over the tax credit p^iod often years using the straight-line method.
Lease-Up/Marketing Reserve
In accordance witii the Partnership Agreement, the General Partner will establish the Lease-Up/Marketing Reserve account, which shall be funded, until the beginning of the Operating Deficit Guaranty Period. The development budget for tiie Project shall contain a lino item for the Lease-Up/Marketing Reserve. Disbursements to be charged to the Leasc-Up/Marketing will require the written approval ofthe General Partner and the Asset Manager. As of December 31,2009, this account has not been funded.
Operating Reserve
In accordance with the Partnership Agreement, the General Partner will establish the Operating Reserve account, which shall be funded, out of equity proceeds at the time of payment ofthe Second Instalbnent. The General Partner shall also be obligated, to the extent funds are available, to replenish the Operating Reserve Account up to the Operating Reserve Target Amount out of Cash Flow or die proceeds of sales or refinancmg in accordance with Section 5.1 & 5.2. As of December 31,2009, this account has not been funded.
Replacement Reserve
In accordance with tiie Partnership Agreement, the General Partner will establish the Replacement Reserve account, which shall be funded, at the time of payment ofthe Second Installment, in tiie amount of $300 per unit per year less such amount as shall be required to be set aside for such purpose by any
10
ASHLEY PLACE DEVELOPMENT HI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2009 AND 2008
NOTE B - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Replacement Reserve ^Continued)
Lender. Withdrawals from this account in excess of $3,000 in the aggregate in any given month will require the written approval of the General Partner and the Asset Manager. As of December 31, 2009, tills account has not been funded.
Real Estate Tax Reserve
In accordance with tiie Partno'ship Agreement, the (jeneral Partner will establish the Real Estate Tax Reserve account, which shall be fimded, out ofthe equity proceeds at the time of payment ofthe Second Instellment, in the initial amount of $15,000. A& of December 31, 2009, this account has not been funded.
Income Taxes
No provision or benefit for income taxes has been included in these financial statements since taxable income or loss passes through to, and is reportable by, the partners individually.
SFASNo.144
Statement of Financial Accounting Standards (SFAS) No. 144 requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recovoable. Application of SFAS No. 144 has not materially affected the partnership's reported earnings, financial condition or cash flows.
NOTE C - CASH AND CASH EQUIVALENTS
For purposes ofthe statements of cash flows, cash and cash equivalraits represent uruvstricted cash and all highly liquid and unrestricted debt instruments purchased with a maturity of three months or less. The Partnership has various escrow accounts with Interstate Titie Company. Inc. 'Hie accounts are insured by the Federal Deposit Insurance Corporation up to $250,000.
NOTE D- PARTNERS AND CAPITAL CONTRIBUTIONS
The Partnership has a General Partner, (Denham Springs Community GP, LLC), and a Limited Partner (NEF Assignment Corporation). The Partnership records capital contributions as received. During 2009, the Limited Partner contributed capital in the amount of $ 1,486,024. For the years ending December 31, 2009 and 2008, tiie General Partner contributed capital in the amount of $-0- and $100, respectively.
11
ASHLEY PLACE DEVELOPMENT lU LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2009 AND 2008
NOTE E-DEBT
Pre-Developm«it Loan
The Partnership entered into a pre-development loan agreement with Local Initiatives Support Corporation on December 21, 2007. The maximum loan amount that can be dravm is $1,503,454. Interest on the loan is based on a default rate of 5% per annum in excess of the rate of interest otherv^se payable under the note. At December 31, 2008, the interest rate was 7%. The Partnership is to make monthly payments of interest only and the loan matures on May I, 2009. The loan is primarily collateralized by a mortgage on real property and a security agreement on the first installment of non-developer fee equity. As of December 31,2009, the pre-development loan was paid in full.
Constmction Loan
The Partnership entered into a constmction loan agreement with Bank of America on December 27,2007. The maximum loan amount that can be drawn is $2,891,616. Interest on the loan is based on a 30 day LIBOR, floating. At December 31, 2009. tiie interest rate was 2.63%. The Partnership is to make monthly payments of interest only and the loan nuitures on December 27, 2009. The loan is primarily collateralized by a mortgage on real propoty and a security agreement. As of Decemtwr 31, 2009 and 2008. tiie balance on tiie constmction loan was $2,600,652 and $1,803,607.
NOTE F - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES
Transactions with related parties are as follows:
Development Fee
As provided in the Development Services Agreement, the Partnership shall pay the Developer Fee in the amount of $520,000 to Denham Springs Housing Authority, an affiliate of the General Partner, and Denham Springs Community Development Corporation, the General Partaer, for services rendered for overseeing the constmction and development of tiie complex. As of December 31, 2009 and 2008, the Partnership owed $413,482, in developer fees for both years. Of this amount, $93,929 is considered deferred developer fees.
Partoership Management Fee
The Partnership shall pay to the General Partner a Partnership Management Fee annually, on a cumulative basis, in the amount of $12,000 to compensate the General Partner for managing the Partnership's operations and assets and coordinating the preparation of the required Stote Housing Finance Agency, federal, state, and local tax and other required filings and financial reports. As of December 31,2009 and 2008, Partnership Management fees totaled $12,000 and $-0-, respectively.
Asset Management Fee
The Partnership shall pay die Asset Management Fee annually to die Asset Manager, an affiliate of tiie Limited Partner, for property management oversight, tax credit compliance monitoring, and related services in the amount of $3,500, to be increased annually by 3.0%, on a cumulative basis. The Asset Manager will not incur any liability to tiie General Partner or tiie Partnership as a result of tiie Asset
12
ASHLEY PLACE DEVELOPMENT III LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2009 AND 2008
NOTE F - TRANSACTIONS WITH AFFILIATES AND RELATED PARTIES (CONTINUED)
Asset Management Fee f Continued)
Manager's performance of or failure to perform its asset management services. Tht Asset Manager owes no duty to the General Partoer or the Partnership and may only be terminated by the Limited Partner. As of December 31.2009 and 2008, Asset Management fees totaled $3,615 and $-0-, respectively.
Special Services Fee
The Partnership shall pay the Services Manager (Ashley Residential Snvices, Inc.) a Services Fee in the amount of $7,000, increasing by 2.0% annually and in the priority specified in §5.1(a)(viii) of tiie Partnership Agreement for the provision of services to tenants of the Project As of December 31,2009 and 2008, a Special Services Fee was incurred and accmed in the amoimt of $7,140 and $-0-, respectively.
Disposition Fee
The Partnership shall pay the Asset Manager a Disposition Fee equal to 1% ofthe gross sales price out of the net sales proceeds at the time of closing ofthe sale of tiie Project or the Limited Partner's interest in the Project.
NOTE G - PARTNERSHIP PROFITS AND LOSSES AND DISTRIBUTIONS
All profits and losses, other tiian from certain transactions detailed in the Partnership Agreement, are allocated .01% to the General Partner and 99.99% to the Lunited Partner. Distributable cash flow is defined in The Partnership Agreement as tiie excess of operating revenues over tiie sum of operating expenses and debt service.
Distributable cash flow is payable annually as follows:
(1) to the Limited Partner to the extent of any amount which the Limited Partner is entitled to receive to satisty any Credit Reduction Payment requu«d pursuant to Section 6.9;
(2) to the Operating Reserve Account until such time as such account is equal to the Operating Reserve Target Amount;
(3) to the payment of any accmed and payable Asset Management Fees to the Asset Manager;
(4) to the Sponsor to pay any unpaid balance on the Deferred Development Fee;
(5) to the Real Estate Tax Reserve Account until such time as such account is equal to the Real Estate Tax Reserve Target Amount;
(6) to pay any accraed and unpaid interest and unpaid principal on loans made by the Limited Partner;
13
ASHLEY PLACE DEVELOPMENT III LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2009 AND 2008
NOTE G - PARTNERSHIP PROFITS AND LOSSES AND DISTRIBUTIONS (CONTINUED)
(7) to repay any accraed and unpaid interest and unpaid principal on loan made by the General Partner,
(8) to the General Partner to pay any accraed and payable Partoership Management Fee, on a cumulative basis; and
(9) to the Services Manager to pay any accraed and payable Services Fee. on a cumulative basis.
NOTE H - CONTINGENCY
The apartment complex's low-income housing tax credits are contingent on the ability ofthe Partnership to maintain compliance with Section 42 of the Intemal Revenue Code. Failure to maintain compliance with occupant eligibility, and/or unit gross rent, or to correct noncompliance within a specified time period could result in recapture of previously taken credits plus interest.
NOTE I - TAXABLE INCOME (LOSS)
A reconciliation of financial statement net loss to taxable loss of the Parbiership for the years ended December 31,2009 and 2008, is as follows:
2009 2008
Financial Statement Net Loss $(266,044) $ (25.402) Adjustments:
Excess Depreciation for Income Tax Purposes Over Financial Reporting Purposes (25,872) (2,070.552)
Otiier-Timing Differences (1.000) 4,917
Taxable Loss Shovra on Tax Retom $ (292,916) $(2,091,037)
NOTE J - ADVERTISING
In 2009 and 2008, the Partnership incurred advertising costs of $-0- and $3,388. These costs are expenses as incurred.
NOTE K - RECLASSIFICATIONS
Ortain accounts in the prior year's financial statements have been reclassified to conform to the current year's financial statements' presentation.
NOTE L - SUBSEQUENT EVENTS
The Partnership has evaluated subsequent events through April 30, 2010, the date which the financial statements were available for issue.
14
ASHLEY PLACE DEVELOPMENT HI LIMITED PARTNERSHIP
NOTES TO FINANCIAL STATEMENTS DECEMBER 31,2009 AND 2008
NOTE M - PRIOR PERIOD ADJUSTMENT
The Financial Statements have been restated for 2008 to reflect additional construction costs incurred in 2008 and other changes reflected in the cost certification, but not reflected in the prior year's financial statements. The accounts affected are as follows:
2008
Land
Building
Furniture and Equipment
Site Improvements
Pemt Loan Fees
Total Assets
Development Costs Payable
Total Liabilities
Accounting Expense
Net Loss
Before Restatement
S 219,418
$ 3.127,968
S 129.000
$ 733,953
$ 5,675 _
$ 4,277,674
S 32,322
$ 4,277,674
$ 10.000
$ 20,698
After Restatemmt
$ 259,766
$ 1,799,891
$ 472,567
$ 1.678.439
$ 6,635
$ 4,278.938
$ 38,290
S 4,278.938
$ 14,704
$ 25,402
1
$
Adjustment
40.348
$(1328.077)
S
s $
$
$
$
s $
343.567
944.486
960
1,264
5,968
1,264
4,704
4.704
15
SUPPLEMENTARY INFORMATION
ASHLEY PLACE DEVELOPMENT IH LIMITED PARTNERSHIP
SCHEDULE OF EXPENSES FOR THE YEARS ENDED DECEMBER 31,
2009 2008 ADMINISTRATIVE
Manager Salaries Manager Unit Advertising Office Expense Bank Charges Legal Accounting and Auditing Bad Debt Expense Telephone Other Administrative Expenses
Total Administrative
UTILITIES Electricity Water and Sewer Trash Ck)llection
Total Utilities
MAINTENANCE AND REPAIRS Supplies Repairs Payroll Contracts Grounds Pest Control
Totel Maintenance and Repairs
INSURANCE Liability Insurance Flood Insurance Workman's Compensation
Totel Insurance
$
$
$
$
$
$
$
$
9,268 2.787
281 1.209
20. 200
5,500 605
1,082 4,911
25,863
1,748 8,182 1,872
11,802
1,089 94
4.262 1.287 8,900
700 16.332
7,243 5,542
350 13,135
$
$
$
$
$
$
£
$
833 -
3,388 -
-
-
15,054 -
-
162 19,437
-
-
-
-
-
-
-
-
-
-
-
-
16
ASHLEY PLACE DEVELOPMENT m LIMITED PARTNERSHIP SCHEDULE OF EXPENSES
FOR THE YEARS ENDED DECEMBER 31.
2009 2008 INTEREST EXPENSE
Interest Expense $ 129,901 Total Interest Expense $ 129,901
17
LITTLE & ASSOCIATES LLC CERTIFIED PUBLIC ACCOUNTANTS
Wm. TODD LITTLE. CPA CHARLES R. MARCHBANKS, JR., CPA
Independent Auditors' Report on Intemal Control Over Financial Reporting and on Compliance and Other Matters
Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
To the Partners Ashley Place Development III Limited Partnership Denham Springs, Louisiana
We have audited the financial statements of Ashley Place Development HI, Limited Partnership as of and for the year ended December 31. 2009, and have issued our report thereon dated April 30,2010. We conducted our audit in accordance with U.S. generally accepted auditing standards and the standards applicable to financial audits contained in Government Auditmg Standards^ issued by the Comptroller General ofthe United States.
Intemal Control Over Financial Reporting
In planning and performing our audit, we considered Ashley Place HI LP*s intemal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinion on the financial statements, but not for the purpose of expressing an opinion on tiie effectiveness of Ashley Place III LP*s internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of Ashley Place III LP*s internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control docs not allow management or employees, in the normal course of performing their assigned fimctions, to prevent, or detect and correct misstatements on a timely basis. A material weaJotess is a deficiency, or combination of deficiencies in intemal control, such that there is reasonable possibility that a material misstatement ofthe entity's financial statements will not be prevented, 01 detected and corrected on a timely basis.
Our consideration of internal control over financial reporting was for the limited puipose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over financial reporting that might be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined above.
18
PHONE (316) 361-9600 • FAX <Sie) 361-9620 • B05 NORTH 3 1 " STREET • MONROE, LA71201
Compliance and Other Matters
As part of obtaining reasonable assurance about whether Ashley Place Development Ett, Limited Partnership's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material efifect on the detennination of financial statement amoimts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards.
This report is intended solely for the information and use ofthe Partners and the management of Ashley Place Development HI. Limited Partnership, and the Louisiana Legislative Auditor, and is not intended to be and should not be used by anyone other than these specified parties. Under Louisiana Revised Statute 24:513, this report is distributed by the Legislative Auditor as a public document.
; t ^ ^ ^ / ^ . a f i s t i t ^ ^ ( ^
Monroe, Louisiana April 30,2010
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