-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TKl9vV/eHe1f9SRSN1Bde7i15ENc6VN67WmWNSeSbfES20t4HWzTWEHJcwpaxmyj sGQr4pdkFK9R4D3qKEqCCw== 0001084067-02-000005.txt : 20020414 0001084067-02-000005.hdr.sgml : 20020414 ACCESSION NUMBER: 0001084067-02-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20011231 FILED AS OF DATE: 20020213 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WNC HOUSING TAX CREDIT FUND V LP SERIES 4 CENTRAL INDEX KEY: 0000943906 STANDARD INDUSTRIAL CLASSIFICATION: OPERATORS OF APARTMENT BUILDINGS [6513] IRS NUMBER: 330707612 STATE OF INCORPORATION: CA FISCAL YEAR END: 0331 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-91136-01 FILM NUMBER: 02541803 BUSINESS ADDRESS: STREET 1: 3158 REDHILL AVE STREET 2: STE 120 CITY: COSTA MESTA STATE: CA ZIP: 92626 BUSINESS PHONE: 7146625565 MAIL ADDRESS: STREET 1: 3158 REDHILL AVE STE 120 STREET 2: 3158 REDHILL AVE STE 120 CITY: COSTA MESA STATE: CA ZIP: 92626 10-Q 1 n541201.txt QUARTERLY REPORT FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) |X| QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2001 OR |_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to ____________ Commission file number: 0-20057 WNC HOUSING TAX CREDIT FUND V, L.P., Series 4. California 33-0707612 State or other jurisdiction of (I.R.S. Employer incorporation or organization Identification No.) 3158 Redhill Avenue, Suite 120, Costa Mesa, CA 92626 (714) 662-5565 Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No X - ---- ------- WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) INDEX TO FORM 10-Q For the Three and Nine Months Ended December 31, 2001 PART I. FINANCIAL INFORMATION Item 1. Financial Statements Balance Sheets December 31, 2001 and March 31, 2001................................3 Statements of Operations For the Three and Nine Months Ended December 31, 2001 and 2000......4 Statement of Partners' Equity (Deficit) For the Nine Months Ended December 31, 2001.........................5 Statements of Cash Flows For the Nine Months Ended December 31, 2001 and 2000................6 Notes to Financial Statements .......................................7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations................................13 Item 3. Quantitative and Qualitative Disclosures About Market Risk.......15 PART II. OTHER INFORMATION Item 1. Legal Proceedings................................................15 Item 6. Exhibits and Reports on Form 8-K.................................15 Signatures ..............................................................16 2 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) BALANCE SHEETS
December 31, 2001 March 31, 2001 ---------------------- --------------------- (unaudited) ASSETS Cash and cash equivalents $ 1,237,427 $ 1,316,217 Due from affiliates (Note 3) 9,732 9,732 Investments in limited partnerships net (Note 2) 13,172,328 14,075,565 Other assets 1,408 574 ---------------------- --------------------- $ 14,420,895 $ 15,402,088 ====================== ===================== LIABILITIES AND PARTNERS' EQUITY (DEFICIT) Liabilities: Payables to limited partnerships (Note 4) $ 164,475 $ 257,889 Accrued fees and expenses due to General Partner and affiliates (Note 3) 21,682 1,664 ---------------------- --------------------- 186,157 259,553 ---------------------- --------------------- Partners' equity (deficit): General partner (76,713) (67,635) Limited partners (22,000 units issued and outstanding) 14,311,451 15,210,170 ---------------------- --------------------- Total Partners' equity 14,234,738 15,142,535 ---------------------- --------------------- $ 14,420,895 $ 15,402,088 ====================== =====================
See accompanying notes to financial statements 3 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) STATEMENTS OF OPERATIONS For the Three and Nine Months Ended December 31, 2001 and 2000 (unaudited)
2001 2000 ----------------------------------------- ----------------------------------------- Three Nine Three Nine Months Months Months Months ------------------ ------------------ ------------------- ------------------ Interest income $ 8,594 $ 41,060 $ 14,005 $ 66,149 ------------------ ------------------ ------------------- ------------------ Operating expenses: Amortization (Note 2) 14,891 44,673 14,891 44,673 Asset management fees (Note 3) 15,125 45,375 15,125 45,375 Legal and accounting 4,623 15,726 11,660 17,414 Other 3,323 10,435 3,526 8,241 ------------------ ------------------ ------------------- ------------------ Total operating expenses 37,962 116,209 45,202 115,703 ------------------ ------------------ ------------------- ------------------ Loss from operations (29,368) (75,149) (31,197) (49,554) Equity in losses of limited partnerships (277,550) (832,648) (284,339) (853,017) ------------------ ------------------ ------------------- ------------------ Net loss $ (306,918) $ (907,797) $ (315,536) $ (902,571) ================== ================== =================== ================== Net loss allocated to: General partner $ (3,069) $ (9,078) $ (3,155) $ (9,026) ================== ================== =================== ================== Limited partners $ (303,849) $ (898,719) $ (312,381) $ (893,545) ================== ================== =================== ================== Net loss per weighted limited partner units $ (14) $ (41) $ (14) $ (41) ================== ================== =================== ================== Outstanding weighted limited partner units 22,000 22,000 22,000 22,000 ================== ================== =================== ==================
See accompanying notes to financial statements 4 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) STATEMENT OF PARTNERS' EQUITY (DEFICIT) For the Nine Months Ended December 31, 2001 (unaudited)
General Limited Partner Partners Total ------------------- ----------------- --------------- Partners' equity (deficit) at March 31, 2001 $ (67,635) $ 15,210,170 $ 15,142,535 Net loss (9,078) (898,719) (907,797) ------------------- ----------------- --------------- Partners' equity (deficit) at December 31, 2001 $ (76,713) $ 14,311,451 $ 14,234,738 =================== ================= ===============
See accompanying notes to financial statements 5 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) STATEMENTS OF CASH FLOWS For the Nine Months Ended December 31, 2001 and 2000 (unaudited)
2001 2000 -------------------- ---------------------- Cash flows from operating activities: Net loss $ (907,797) $ (902,571) Adjustments to reconcile net loss to net cash provided by operating activities: Amortization 44,673 44,673 Equity in losses of limited partnerships 832,648 853,017 Other assets (834) - Accrued fees and expenses due to General Partner and affiliates 20,018 755 -------------------- ---------------------- Net cash used by operating activities (11,292) (4,126) -------------------- ---------------------- Cash flows from investing activities: Investment in limited partnerships (93,414) (416,901) Loans receivable - 2,348 Distributions from limited partnerships 25,916 1,200 -------------------- ---------------------- Net cash used in investing activities (67,498) (413,353) -------------------- ---------------------- Net decrease in cash and cash equivalents (78,790) (417,479) -------------------- ---------------------- Cash and cash equivalents, beginning of period 1,316,217 1,725,133 -------------------- ---------------------- Cash and cash equivalents, end of period $ 1,237,427 $ 1,307,654 ==================== ====================== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Taxes Paid $ 800 $ 800 ==================== ======================
See accompanying notes to financial statements 6 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) NOTES TO FINANCIAL STATEMENTS For the Three and Nine Months Ended December 31, 2001 (unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - --------------------------------------------------- General - ------- The accompanying condensed unaudited financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q for quarterly reports under Section 13 or 15 (d) of the Securities Exchange Act of 1934. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended December 31, 2001 are not necessarily indicative of the results that may be expected for the fiscal year ending March 31, 2002. For further information, refer to the financial statements and footnotes thereto included in the Partnership's annual report on Form 10-K for the fiscal year ended March 31, 2001. Organization - ------------ WNC Housing Tax Credit Fund V, L.P., Series 4, a California Limited Partnership (the "Partnership"), was formed on July 26, 1995 under the laws of the state of California, and commenced operations on July 1, 1996. The Partnership was formed to invest primarily in other limited partnerships and limited liability companies (the "Local Limited Partnerships") which own and operate multi-family housing complexes (the "Housing Complex") that are eligible for low income housing credits. The local general partners (the "Local General Partners") of each Local Limited Partnership retain responsibility for maintaining, operating and managing the Housing Complex. The Partnership shall continue in full force and effect until December 31, 2050 unless terminated prior to that date, pursuant to the partnership agreement or law. The general partner of the Partnership is WNC & Associates, Inc. ("WNC"). Wilfred N. Cooper, Sr., through the Cooper Revocable Trust, owns 93.65% of the outstanding stock of WNC. Wilfred N. Cooper, Jr., President of WNC, owns 3.01% of the outstanding stock of WNC. The business of the Partnership is conducted primarily through WNC as the Partnership has no employees of its own. The financial statements include only activity relating to the business of the Partnership, and do not give effect to the assets that the partners may have outside of their interest in the Partnership, or to any obligations, including income taxes, of the partner. The partnership agreement authorized the sale of up to 25,000 units at $1,000 per Unit ("Units"). The offering of Units concluded on July 11, 1997 at which time 22,000 Units representing subscriptions in the amount of $21,914,830, net of discount of $79,550 for volume purchases and $5,620 for dealer discounts, had been accepted. The General Partner has a 1% interest in operating profits and losses, taxable income and losses and in cash available for distribution from the Partnership and tax credits. The limited partners will be allocated the remaining 99% of these items in proportion to their respective investments. After the limited partners have received proceeds from a sale or refinancing equal to their capital contributions and their return on investment (as defined in the Partnership Agreement) and the General Partner has received proceeds equal to its capital contribution and a subordinated disposition fee (as described in Note 3) from the remainder, any additional sale or refinancing proceeds will be distributed 90% to the limited partners (in proportion to their respective investments) and 10% to the General Partner. 7 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) NOTES TO FINANCIAL STATEMENTS - CONTINUED For the Three and Nine Months Ended December 31, 2001 (unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued - -------------------------------------------------------------- Risks and Uncertainties - ----------------------- The Partnership's investments in Local Limited Partnerships are subject to the risks incident to the management and ownership of low-income housing and to the management and ownership of multi-unit residential real estate. Some of these risks are that the low income housing credit could be recaptured and that neither the Partnership's investments nor the Housing Complexes owned by the Local Limited Partnerships will be readily marketable. To the extent the Housing Complexes receive government financing or operating subsidies, they may be subject to one or more of the following risks: difficulties in obtaining tenants for the Housing Complexes; difficulties in obtaining rent increases; limitations on cash distributions; limitations on sales or refinancing of Housing Complexes; limitations on transfers of Local Limited Partnership Interests; limitations on removal of Local General Partners; limitations on subsidy programs; and possible changes in applicable regulations. The Housing Complexes are or will be subject to mortgage indebtedness. If a Local Limited Partnership does not make its mortgage payments, the lender could foreclose resulting in a loss of the Housing Complex and low income housing credits. As a limited partner of the Local Limited Partnerships, the Partnership will have very limited rights with respect to management of the Local Limited Partnerships, and will rely totally on the Local General Partners of the Local Limited Partnerships for management of the Local Limited Partnerships. The value of the Partnership's investments will be subject to changes in national and local economic conditions, including unemployment conditions, which could adversely impact vacancy levels, rental payment defaults and operating expenses. This, in turn, could substantially increase the risk of operating losses for the Housing Complexes and the Partnership. In addition, each Local Limited Partnership is subject to risks relating to environmental hazards and natural disasters which might be uninsurable. Because the Partnership's operations will depend on these and other factors beyond the control of the General Partner and the Local General Partners, there can be no assurance that the anticipated low income housing credits will be available to Limited Partners. In addition, Limited Partners are subject to risks in that the rules governing the low income housing credit are complicated, and the use of credits can be limited. The only material benefit from an investment in Units may be the low income housing credits. There are limits on the transferability of Units, and it is unlikely that a market for Units will develop. All of management decisions will be made by the General Partner. Method of Accounting For Investments in Limited Partnerships - ------------------------------------------------------------ The Partnership accounts for its investments in limited partnerships using the equity method of accounting, whereby the Partnership adjusts its investment balance for its share of the Local Limited Partnership's results of operations and for any distributions received. The accounting policies of the Local Limited Partnerships are consistent with those of the Partnership. Costs incurred by the Partnership in acquiring the investments are capitalized as part of the investment account and are being amortized over 30 years (see Note 2). Offering Expenses - ----------------- Offering expenses consist of underwriting commissions, legal fees, printing, filing and recordation fees, and other costs incurred with selling limited partnership interests in the Partnership. The General Partner is obligated to pay all offering and organization costs in excess of 14.5% (including sales commissions) of the total offering proceeds. Offering expenses are reflected as a reduction of limited partners' capital and amounted to $2,960,328 at the end of all periods presented. 8 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) NOTES TO FINANCIAL STATEMENTS - CONTINUED For the Three and Nine Months Ended December 31, 2001 (unaudited) NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES, continued - --------------------------------------------------------------- Use of Estimates - ---------------- The preparation of financial statements, which are in conformity with generally accepted accounting principles, require management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the 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 materially differ from those estimates. Cash and Cash Equivalents - ------------------------- The Partnership considers all highly liquid investments with remaining maturity of three months or less when purchased to be cash equivalents. As of December 31 and March 31, 2001, the Partnership had cash equivalents of $0 and $840,000 respectively. Concentration of Credit Risk - ---------------------------- At December 31, 2001 and March 31, 2001, the Partnership maintained cash balances at a certain financial institution in excess of the federally insured maximum. Net Loss Per Limited Partner Unit - --------------------------------- Net loss per limited partner unit is calculated pursuant to Statement of Financial Accounting Standards No. 128, Earnings Per Share. Net loss per unit includes no dilution and is computed by dividing loss available to limited partners by the weighted average number of units outstanding during the period. Calculation of diluted net income per unit is not required. Reporting Comprehensive Income - ------------------------------ In June 1997, the FASB issued Statement of Financial Accounting Standards ("SFAS") No. 130, Reporting Comprehensive Income. This statement establishes standards for reporting the components of comprehensive income and requires that all items that are required to be recognized under accounting standards as components of comprehensive income be included in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income includes net income as well as certain items that are reported directly within a separate component of partners' equity and bypass net income. The Partnership adopted the provisions of this statement in 1998. For the years presented, the Partnership has no elements of other comprehensive income, as defined by SFAS No. 130. 9 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) NOTES TO FINANCIAL STATEMENTS - CONTINUED For the Three and Nine Months Ended December 31, 2001 (unaudited) NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS - -------------------------------------------- As of December 31 and March 31, 2001, the Partnership has acquired limited partnership interests in 14 Local Limited Partnerships, each of which owns one Housing Complex consisting of an aggregate of 785 apartment units. As of December 31 and March 31, 2001, all construction or rehabilitation of the Housing Complexes was completed. The respective Local General Partners of the Local Limited Partnerships manages the day-to-day operations of the entities. Significant Local-Limited Partnership business decisions require approval from the Partnership. The Partnership, as a limited partner, is generally entitled to 99%, as specified in the Local Limited Partnership agreements, of the operating profits and losses, taxable income and losses and tax credits of the Local Limited Partnerships, except for one of the investments in which it is entitled to 49.5% of such amounts. Equity in losses of the Local Limited Partnerships is recognized in the financial statements until the related investment account is reduced to a zero balance. Losses incurred after the investment account is reduced to zero are not recognized. If the Local Limited Partnerships report net income in future years, the Partnership will resume applying the equity method only after its share of such net income equals the share of net losses not recognized during the period(s) the equity method was suspended. Distributions received by limited partners are accounted for as a reduction of the investment balance. Distributions received after the investment has reached zero are recognized as income. As of December 31 and March 31, 2001, no investment recorded in Local Limited Partnerships reached zero balance. The following is a summary of the equity method activity of the investment in Local Limited Partnerships for the periods presented below:
For the Nine months Ended For the Year Ended December 31, 2001 March 31, 2001 ------------------------------ ------------------------ Investment per balance sheet, beginning of period $ 14,075,565 $ 15,243,007 Tax credit adjustment - 2,151 Equity in losses of limited partnerships (832,648) (1,103,435) Distributions received from limited partnerships (25,916) (6,594) Amortization of capitalized acquisition fees and costs (44,673) (59,564) ------------------------------ ------------------------ Investment per balance sheet, end of period $ 13,172,328 $ 14,075,565 ============================== ========================
10 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) NOTES TO FINANCIAL STATEMENTS - CONTINUED For the Three and Nine Months Ended December 31, 2001 (unaudited) NOTE 2 - INVESTMENTS IN LIMITED PARTNERSHIPS, continued - -------------------------------------------------------- Selected financial information for the nine months ended December 31, 2001 and 2000 from the combined condensed financial statements of the limited partnerships in which the partnership has invested is as follows:
2001 2000 ------------------- ------------------ Revenues $ 2,354,000 $ 2,037,000 ------------------- ------------------ Expenses: Interest expense 715,000 732,000 Depreciation and amortization 949,000 841,000 Operating expenses 1,588,000 1,353,000 ------------------- ------------------ Total Expenses 3,252,000 2,926,000 ------------------- ------------------ Net loss $ (898,000) $ (889,000) =================== ================== Net loss allocable to the Partnership $ (833,000) $ (853,000) =================== ================== Net loss recognized by the Partnership $ (833,000) $ (853,000) =================== ==================
Certain Local Limited Partnerships have incurred significant operating losses and have working capital deficiencies. In the event these Local Limited Partnerships continue to incur significant operating losses, additional capital contributions by the Partnership and/or the Local General Partner may be required to sustain the operations of such Local Limited Partnerships. If additional capital contributions are not made when they are required, the Partnership's investment in certain of such Local Limited Partnerships could be impaired and the loss and recapture of the related tax credits could occur. NOTE 3- RELATED PARTY TRANSACTIONS - ---------------------------------- As of December 31 and March 31, 2001, $9,732 and $9,732 due from affiliates consists of certain advances to certain Local Limited Partnership for operations. Under the terms of the Partnership Agreement, the Partnership has paid or is obligated to the General Partner or their affiliates for the following items: (a) Annual Asset Management fee. An annual asset management fee of the greater of (i) $2,000 per multi-family housing complex or (ii) 0.275% of Gross Proceeds. The base fee amount will be adjusted annually based on changes in the Consumer Price Index. However, in no event will the annual asset management fee exceed 0.2% of Invested Assets. "Invested Assets" means the sum of the Partnership's Investment in Local Limited Partnerships and the Partnership's allocable share of the amount of indebtedness related to the Housing complexes. Asset management fees of $15,125 and $45,375 were incurred for each of the three and nine months ended December 31, 2001 and 2000, respectively. The Partnership paid the General Partner or its affiliates $25,208 and $45,375 of these fees during the nine months ended December 31, 2001 and 2000, respectively. 11 WNC HOUSING TAX CREDIT FUND V, L.P., SERIES 4 (A California Limited Partnership) NOTES TO FINANCIAL STATEMENTS - CONTINUED For the Three and Nine Months Ended December 31, 2001 (unaudited) NOTE 3- RELATED PARTY TRANSACTIONS, continued - --------------------------------------------- (b) A subordinated disposition fee in an amount equal to 1% of the sales price of real estate sold. Payment of this fee is subordinated to the limited partners receiving a preferred return of 14% through December 31, 2006 and 6% thereafter (as defined in the Partnership Agreement) and is payable only if the General partner or its affiliates render services in the sales effort. Accrued fees and advances due to affiliates of the General Partner included in the balance sheet consist of the following at:
December 31, 2001 March 31, 2001 ---------------------- ------------------------- Asset management fees payable $ 21,603 $ 1,436 Advances by the General Partner or affiliates 79 228 ---------------------- ------------------------- Total $ 21,682 $ 1,664 ====================== =========================
NOTE 4 - PAYABLES TO LIMITED PARTNERSHIPS - ----------------------------------------- Payables to limited partnerships represent amounts, which are due at various times based on conditions specified in the Local Limited Partnership agreements. These contributions are payable in installments and are generally due upon the limited partnerships achieving certain development and operating benchmarks (generally within two years of the Partnership's initial investment). NOTE 5 - INCOME TAXES - --------------------- No provision for income taxes has been made as the liability for income taxes is an obligation of the partners of the Partnership. 12 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations Forward Looking Statements With the exception of the discussion regarding historical information, "Management's Discussion and Analysis of Financial Condition and Results of operations" and other discussions elsewhere in this Form 10-Q contain forward looking statements. Such statements are based on current expectations subject to uncertainties and other factors, which may involve known and unknown risks that could cause actual results of operations to differ materially from those projected or implied. Further, certain forward-looking statements are based upon assumptions about future events, which may not prove to be accurate. Risks and uncertainties inherent in forward-looking statements include, but are not limited to our future cash flows and ability to obtain sufficient financing, level of operating expenses, conditions in the low income housing tax credit property market and the economy in general, as well as legal proceedings. Historical results are not necessarily indicative of the operating results for any future period. Subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by cautionary statements in this Form 10-Q and in other reports we filed with the Securities and Exchange Commission. The following discussion should be read in conjunction with the Financial Statements and the Notes thereto included elsewhere in this filing. The following discussion and analysis compares the results of operations for the nine months ended December 31, 2001 and 2000, and should be read in conjunction with the condensed financial statements and accompanying notes included within this report. Financial Condition The Partnership's assets at December 31, 2001 consisted primarily of $1,237,000 in cash and aggregate investments in the fourteen Local Limited Partnerships of $13,172,000. Liabilities at December 31, 2001 consisted primarily of $164,000 of note payables to limited partnerships and $22,000 of accrued asset management fees and reimbursements due to the General Partner and affiliates at December 31, 2001. Results of Operations Three Months Ended December 31, 2001 Compared to Three Months Ended December 31, 2000. The Partnership's net loss for the three months ended December 31, 2001 was $(307,000), reflecting a decrease of $9,000 from the $(316,000) of net loss for the three months ended December 31, 2000. The decrease in net loss is primarily due to a decrease of equity in losses from limited partnerships, which decreased by approximately $7,000 to approximately $(277,000) for the three months ended December 31, 2001 from $(284,000) for the three months ended December 31, 2000. In addition, loss from operations decreased by $3,000 to $(29,000), for the three months ended December 31, 2001 from $(31,000) for the three months ended December 31, 2000, due to a reduction in interest income and decreases in legal and accounting fees for the three months ended December 31, 2001. Nine Months Ended December 31, 2001 Compared to Nine Months Ended December 31, 2000. The Partnership's net loss for the nine months ended December 31, 2001 was $(908,000), reflecting an increase of $5,000 from the $(903,000) of net loss experienced for the nine months ended December 31, 2000. The increase in net loss is due to loss from operations, which increased by $25,000 to $(75,000), for the nine months ended December 31, 2001 from $(50,000) for the nine months ended December 31, 2000, primarily due to a reduction in interest income from $66,000 for the nine months ended December 31, 2000 to $41,000 for the nine months ended December 31, 2001. This increase was offset by the decrease of equity in loss from limited partnerships, which decreased by $20,000 to $(833,000) for the nine months ended December 31, 2001 from $(853,000) for the nine months ended December 31, 2000. 13 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, continued Cash Flows Nine Months Ended December 31, 2001 Compared to Nine Months Ended December 31, 2000. Net cash decline during the nine months ended December 31, 2001 was $(79,000) compared to cash decline for the nine months ended December 31, 2000 of $(417,000). The change of $338,000 was due primarily to a decrease in capital contributions paid to Local Limited Partnerships of $324,000 to $(93,000) for the nine months ended December 31, 2001 from $(417,000) for the nine months ended December 31, 2000. The decrease in capital contributions was offset by a loan receivable paid of $2,000 and an increase in distributions to Limited Partnership of $25,000, to $26,000 for the nine months ended December 31, 2001 from $1,000 for the nine months ended December 31, 2000. In addition to the decrease in capital contributions, increase in cash used by operating activities of $7,000 from $(4,000) used in the nine months ended December 31, 2000 compared to $(11,000) used by the nine months ended December 31, 2001. The Partnership expects its future cash flows, together with its net available assets at December 31, 2001, to be sufficient to meet all currently foreseeable future cash requirements. 14 Item 3. Quantitative and Qualitative Disclosures About Market Risks NOT APPLICABLE Part II. Other Information Item 1. Legal Proceedings NONE Item 6. Exhibits and Reports on Form 8-K NONE 15 Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. WNC HOUSING TAX CREDIT FUND V, L.P. Series 4 By: WNC & Associates, Inc. General Partner of the Registrant By: /s/Wilfred N. Cooper, Jr. ------------------------- Wilfred N. Cooper, Jr., President Chief Operating Officer of WNC & Associates, Inc. Date: February 8, 2002 By: /s/ Thomas J. Riha ------------------ Thomas J. Riha, Vice President Chief Financial Officer of WNC & Associates, Inc. Date: February 8, 2002 -----END PRIVACY-ENHANCED MESSAGE-----