WNC Housing Tax Credit Fund VI LP Series 7 – ‘10-K’ for 3/31/02 – EX-21

On:  Friday, 8/16/02, at 7:09pm ET   ·   As of:  8/19/02   ·   For:  3/31/02   ·   Accession #:  1084067-2-69   ·   File #:  0-32395

in

this entire Filing. an “Entity” Search.

Show

Documents searched

and

each “hit”. the 1st “hit”.

↓↑Hints

Annual Report   —   Form 10-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 10-K        Annual Report                                         42    202K 
 2: EX-21       Stroud Housing Financial Statements                   11     34K 

EX-21   —   Stroud Housing Financial Statements

EX-21
1st Page of 11
TOC
↑Top
Previous
Next
↓Bottom
Just 1st
 
  Financial Statements

OF

STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

DECEMBER 31, 2001 and 2000

EX-21
2nd Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 2nd
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

DECEMBER 31, 2001 and 2000

 Table of Contents

                                                            Page

Independent Accountant's Report                                     1           
Balance Sheets                                                      2-3         
Statements of Operations                                            4           
Statements of Changes in Partners' Capital                          5           
Statements of Cash Flows                                            6           
Notes to Financial Statements                                       7-10        

 -1-

EX-21
3rd Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 3rd
THOMAS HANKINS
CERTIFIED PUBLIC ACCOUNTANT 
2917 Old Greeawood Rd., Suite 7 
Fort Smith,AR 72903 

Phone:(479) 646-6730                                          Fax:(479) 646-2659
--------------------------------------------------------------------------------

 INDEPENDENT ACCOUNTANT'S REPORT
----------------------------

Partners                                                                        
Stroud Housing Associates,                                                      
A Limited Partnership                                                           

I have audited the accompanying  balance sheets of STROUD HOUSING ASSOCIATES,  A
LIMITED PARTNERSHIP as of December 31, 2001, and 2000 and the related statements
of  operations,  changes in partners'  capital and cash flows for the years then
ended.  These financial  statements are the  responsibility of the Partnership's
management.  My  responsibility  is to express  an  opinion  on these  financial
statements based on my audit.                                                   

I conducted my audit in accordance with generally  accepted auditing  standards.
Those standards  require that I plan and perform the audit 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 the 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.
I believe that my audit provides a reasonable basis for my opinion.             

In my opinion, the financial statements referred to above present fairly, in all
material  respects,  the  financial  position of STROUD  HOUSING  ASSOCIATES,  A
LIMITED  PARTNERSHIP  as of December 31,  2001  and 2000, and the results of its
operations  and its cash  flows for the years then  ended,  in  conformity  with
generally accepted accounting principles.                                       

                         /S/Thomas Hankins

February 15, 2002                                                               
Fort Smith, Arkansas                                                            

EX-21
4th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 4th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

BALANCE SHEETS

DECEMBER 31, 2001 and 2000

                                                                [Download Table]


                                       ASSETS                                    
                                       ------                                    
                                                           2001             2000 
                                                           ----             ---- 
                                                                                 
CURRENT ASSETS                                                                   
    Cash                                       $            544 $          1,834 
    Accounts Receivable                                                          
        Rent                                              1,603            2,101 
        Due from ERC Companies                          496,000          496,000 
        Security deposits                                     0              100 
    Prepaid expenses                                      2,955                0 
                                                 ---------------  ---------------
        TOTAL CURRENT ASSETS                            501,102          500,035 
                                                 ---------------  ---------------

RESTRICTED DEPOSITS                                                              
    Tenant security deposit fund                          1,869            3,581 
                                                 ---------------  ---------------

PROPERTY, At Cost                                                                
    Land                                                 46,000           46,000 
    Buildings                                         1,318,841        1,318,841 
    Furniture and equipment                             100,123          100,123 
    Improvements                                        226,313          226,313 
                                                 ---------------  ---------------
                                                      1,691,277        1,691,277 
    Less:  accumulated depreciation                     120,900           52,817 
                                                 ---------------  ---------------
                                                      1,570,377        1,638,460 
                                                 ---------------  ---------------

                                               $      2,073,348 $      2,142,076 
                                                 ===============  ===============

    CURRENT LIABILITIES                                                          
        Short-term note payable                $      1,096,000 $      1,096,000 
        Accrued expenses                                 67,348                0 
        Due to ERC Companies                          1,087,897        1,062,365 
                                                 ---------------  ---------------
            TOTAL CURRENT LIABILITIES                                            
                                                      2,251,245        2,158,365 
                                                 ---------------  ---------------

    RESTRICTED DEPOSITS                                                          
        Security deposits                                 1,869            3,681 
                                                 ---------------  ---------------

    LONG-TERM DEBT                                      150,000          150,000 
                                                 ---------------  ---------------

    PARTNERS' CAPITAL                                  (329,766)        (169,970)
                                                 ---------------  ---------------

                                               $      2,073,348 $      2,142,076 
                                                 ===============  ===============

See Notes to Financial Statement
-2- 

EX-21
5th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 5th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

STATEMENTS OF OPERATIONS

YEARS ENDED DECEMBER 31, 2001 and 2000

                                                                [Download Table]


                                             2001             2000 
                                             ----             ---- 
                                                                   
INCOME                                                             
    Rental                       $        115,550 $         52,847 
    Other                                   2,921              767 
                                   ---------------  ---------------
                                          118,471           53,614 
                                   ---------------  ---------------
OPERATING EXPENSES                                                 
    Advertising                             1,963            3,884 
    Bad debt expense                          640              385 
    Depreciation                           68,083           52,817 
    Insurance - employee health             4,145            1,460 
    Insurance - other                       4,313           16,967 
    Office expense                          5,436           24,612 
    Other expense                               0            5,151 
    Payroll tax                             1,694            2,229 
    Professional fees                       4,616           10,055 
    Property management                     6,396            1,145 
    Real estate tax                         7,370           35,448 
    Repairs and maintenance                26,130           19,484 
    Salaries                               22,592           16,674 
    Telephone                               3,849            6,237 
    Training                                3,522            4,904 
    Utilities                              17,379           26,129 
                                   ---------------  ---------------
                                          178,128          227,581 
                                   ---------------  ---------------

LOSS FROM OPERATIONS                      (59,657)        (173,967)
                                   ---------------  ---------------

OTHER INCOME (EXPENSE)                                             
    Interest expense                     (115,767)               0 
    Other income                           15,628            3,903 
                                   ---------------  ---------------
                                   ---------------  ---------------
                                         (100,139)           3,903 
                                   ---------------  ---------------

NET LOSS                         $       (159,796)$       (170,064)
                                   ===============  ===============

 See Notes to Financial Statements
 -3-

EX-21
6th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 6th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

 STATEMENTS OF CHANGE IN PARTNERS' CAPITAL

YEARS ENDED DECEMBER 31, 2001 and 2000

                                                        [Enlarge/Download Table]


                                  GENERAL              LIMITED                           
                                  PARTNER              PARTNERS              TOTAL       
                             ------------------    -----------------    -----------------

                                                                                         
BALANCE,                                                                                 
     JANUARY 1, 2000      $                  0  $                 0  $                 0 

CAPITAL CONTRIBUTIONS                       94              944,897              944,991 

LESS SUBSCRIPTIONS                                                                       
     RECEIVABLE                               -            (944,897)            (944,897)

NET LOSS FOR YEAR ENDING                                                                 
     DECEMBER 31, 2000                     (17)            (170,047)            (170,064)
                             ------------------    -----------------    -----------------

                                            77             (170,047)            (169,970)

NET LOSS FOR YEAR ENDING                                                                 
     DECEMBER 31, 2001                     (16)            (159,780)            (159,796)
                             ------------------    -----------------    -----------------

                          $                 61  $          (329,827) $          (329,766)
                             ==================    =================    =================

 See Notes to Financial Statements
-4- 

EX-21
7th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 7th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2001 and 2000

                                                        [Enlarge/Download Table]


                                                                2001             2000 
                                                                ----             ---- 
                                                                                      
CASH FLOWS FROM OPERATING ACTIVITIES                                                  
    Net loss                                        $       (159,796)$       (170,064)
    Items not requiring cash:                                                         
        Depreciation                                          68,083           52,817 
    Changes in:                                                                       
        Accounts receivable                                      598         (498,201)
        Prepaid expenses                                      (2,955)               0 
        Tenant security deposit fund                           1,712           (3,581)
        Due to ERC Companies                                  25,532        1,062,365 
        Accrued expenses                                      67,348                  
        Restricted deposits held                              (1,812)           3,681 
                                                      ---------------  ---------------
            NET CASH PROVIDED BY (USED FOR)                                           
                 OPERATING ACTIVITIES                         (1,290)         447,017 
                                                      ---------------  ---------------

    CASH FLOWS FROM INVESTING ACTIVITIES                                              
        Purchase of property and equipment                         0       (1,691,277)
                                                      ---------------  ---------------
            NET CASH USED FOR INVESTING ACTIVITIES                 0       (1,691,277)
                                                      ---------------  ---------------

    CASH FLOWS FROM FINANCING ACTIVITIES                                              
        Additions to short-term debt                               0        1,096,000 
        Additions to long-term debt                                0          150,000 
        Capital contributions                                      0               94 
                                                      ---------------  ---------------
            NET CASH PROVIDED BY                                                      
                 FINANCING ACTIVITIES                              0        1,246,094 
                                                      ---------------  ---------------

                 NET INCREASE (DECREASE) IN CASH              (1,290)           1,834 

            CASH AT BEGINNING OF PERIOD                        1,834                0 
                                                      ---------------  ---------------

            CASH AT END OF PERIOD                   $            544 $          1,834 
                                                      ===============  ===============

 See Notes to Financial Statements
 -6-

EX-21
8th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 8th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

 NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2001 and 2000

NOTE A - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES         

Nature of Operations                                        
--------------------                                        

          Stroud  Housing  Associates,  a  Limited  Partnership  is an  Oklahoma
          Limited   Partnership  which  was  organized  in  1998  as  a  limited
          partnership to develop, construct, own, maintain and operate a 36 unit
          rental  housing  project for persons of low and moderate  income.  The
          rental  units  are  located  in the  City  of  Stroud,  Oklahoma.  The
 Partnership has one general partner and two limited partners.

          Operating  profits and losses and tax credits are allocated  99.99% to
          the limited partners and .01% to the general  partner.  Profit or loss
          and cash  distributions  from sales of property  will be  allocated as
formulated in the partnership agreement.                    

Property                                                    
--------                                                    

          Property  is  recorded  at  cost  which  includes  a fee  paid  to the
          project's developer who is also a member of the general partner and is
          depreciated  over the estimated  useful life of 5 to 40 years.  Annual
      depreciation is computed primarily using the straight-line method.

Use of Estimates                                            
----------------                                            

          The  preparation of financial  statements in conformity with generally
          accepted  accounting  principles requires management to make estimates
          and  assumptions  that  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 those estimates.                                       

Income Taxes                                                
------------                                                

          No  provision  for  income  taxes  has been  made in  these  financial
          statements,  as income taxes are a liability  of the  partners  rather
than of the Partnership.                                    

 -7-

EX-21
9th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 9th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

 NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2001 and 2000

                                                        [Enlarge/Download Table]


NOTE B - SHORT-TERM NOTE PAYABLE                                                             
                                                                  2001             2000      
                                                                  ----             ----      
                                                                                             

        Note payable, First National Bank of Fort Smith,                                     
        due in full February 15, 2002, bearing a variable                                    
        interest rate (1/2% below New York prime rate),                                      
        secured by land and buildings, convertible to                                        
        permanent term loan upon maturity                  $      1,096,000 $      1,096,000 
                                                             ===============  ===============

NOTE C - LONG-TERM DEBT                                                                      

Long-term debt consists of the following:                                                    
                                                                  2001             2000      
                                                                  ----             ----      
        Note payable, NHS/ERC Housing Company, LLC                                           
        with interest accrued at 5.98%, and paid at 1%                                       
        per annum, secured by land and buildings,                                            
        principal and unpaid accrued interest due in                                         
        full December 31, 2034                             $        150,000 $        150,000 
                                                             ===============  ===============

NOTE D - RELATED PARTY TRANSACTIONS                           

        The Partnership's general partner is NHS/ERC Housing Company, LLC. ERC
        Properties,  Inc. is a member of NHS/ERC  Housing  Company,  LLC.  ERC
        Properties,  Inc., ERC Development Group, LLC, ERC Construction Group,
        LLC, and ERC Management  Group, LLC,  hereinafter  referred to as "ERC
        Companies"  are  controlled  through  common  ownership,  and  provide
        general   contracting   and  other   services  and  functions  to  the
Partnership.                                                  

 -8-

EX-21
10th Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 10th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP
 D/B/A GARLAND SQUARE APARTMENTS

 NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2001 and 2000

NOTE D - RELATED PARTY TRANSACTIONS (CONTINUED)             

Management Fees                                             
---------------                                             

          The Partnership paid ERC Companies $34,826 in 2001 and $21,507 in 2000
          for  reimbursements  and  services  rendered  in  connection  with the
leasing and operation of the project.                       

Development Fee                                             
---------------                                             

          The  Partnership  incurred a development  fee of $208,148 , payable to
          ERC Companies for services  rendered to the partnership for overseeing
          the  construction  of  the  project.  The  development  fee  has  been
          capitalized  into the basis of the building and is included in "Due to
ERC Companies" on the balance sheet.                        

Note Payable                                                
------------                                                

          The general partner,  NHS/ERC Housing  Company,  LLC, is the lender to
          the Partnership of a note bearing interest at 5.98%.  Interest is paid
          annually.  The total  principal  of $150,000,  and any unpaid  accrued
interest will become due in full on December 31, 2034.      

-9- 

EX-21
Last Page of 11
TOC
1st
Previous
Next
↓Bottom
Just 11th
STROUD HOUSING ASSOCIATES,
 A LIMITED PARTNERSHIP

 NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2001 and 2000

                                                        [Enlarge/Download Table]


NOTE E - OTHER INFORMATION                                                                                

Security Deposit Fund                                                                                     

Security deposits collected from tenants are held in a separate bank account.  The status                 
of the account at December 31, 2000 is:                                                                   
                                                                               2001             2000      
                                                                               ----             ----      
                                                                                                          
        Tenant security deposit fund                                    $          1,869 $          3,581 
        Accounts receivable - security deposits                                        0              100 
        Security deposits                                                         (1,869)          (3,681)
                                                                          ---------------  ---------------

                                                                        $              0 $              0 
                                                                          ===============  ===============

Interest Cost                                                                                             

The Partnership capitalized interest cost as a component of the cost of construction in                   
progress.  The following is a summary of interest cost incurred:                                          
                                                                               2001             2000      
                                                                               ----             ----      
        Interest cost capitalized                                       $              0 $         81,679 
        Interest cost expensed                                                   115,767                0 
                                                                          ---------------  ---------------

        Total interest cost incurred                                    $        115,767 $         81,679 
                                                                          ===============  ===============

NOTE F - ADDITIONAL CASH FLOW INFORMATION                                                                 

Noncash Investing and Financing Activities                                                                
                                                                               2001             2000      
                                                                               ----             ----      
Limited partner capital contributions                                   $              0 $        944,897 
Subscriptions receivable                                                               0         (944,897)
                                                                          ---------------  ---------------
                                                                        $              0 $              0 
                                                                          ===============  ===============

Additional Cash Payment Information                                                                       

Interest paid                                                           $         48,419 $         81,679 
                                                                          ===============  ===============

-10-

Dates Referenced Herein   and   Documents Incorporated by Reference

				Referenced-On Page
This ‘10-K’ Filing		Date		First		Last			Other Filings
		12/31/34		9		10
Filed as of:		8/19/02
Filed on:		8/16/02
For Period End:		3/31/02							NT 10-K
		2/15/02		3		9			NT 10-Q
		12/31/01		1		11			10-Q,  NT 10-Q
		12/31/00		1		11			10-Q,  NT 10-Q
		1/1/00		6
									List all Filings