We at AHACPA are frequently asked if supplemental information must be included in the hard copy financial statements. The list of items which make up a properly formatted set of financial statements comes from several different sources. The quick list of items required are:
- Independent Auditor’s Report & Independent Auditor’s Report on the Supplemental Information
- Balance sheet
- Statement of profit and loss
- Statement of changes in partner’s capital
- Statement of cash flows
- Footnotes to the basic financial statements, including descriptions of accounting policies.
- Supplemental Information:
- Balance Sheet Data
- Profit & Loss Data
- Equity Data
- Cash Flow Data
- Notes
- Auditor’s Reports (not needed for owner-certified submissions)
- Findings & Prior Audits
- Reserve Accounts Data
- Surplus Cash & Fixed Asset Data
- Nursing Home / Assisted Living Data
- Federal Awards (Non-Profit only)
- Certification
- Other required auditor’s reports depending on entity type (profit motivated or non-profit)
Continue reading if you would like more detailed information on the source of the above listed items.
1 – Guidance from HUD Audit Guide Chapter 3
- Independent Auditor’s Report
- Independent Auditor’s Report on the Supplemental Information
- Supplemental information includes REAC Financial Data Templates [aka FASS Templates]
- Balance sheet.
- Statement of profit and loss.
- Statement of changes in partner’s capital.
- Statement of cash flows.
- Footnotes to the basic financial statements, including descriptions of accounting policies.
- Must adhere to UFRS
2 – Guidance from Guidelines on Reporting and Attestation Requirements of Uniform Financial Reporting Standards (UFRS)
- FASS Templates +
- The financial data templates must be produced in hard copy and reported on as information supplementary to the financial statements, before they are submitted (emphasis added)
- The financial data templates are defined in the appendices of the Industry User Guide
3 – List of FASS Templates from the Appendices of the Industry User Guide. These FASS Templates include the HUD Chart of Account numbers.
- Balance Sheet Data
- Profit & Loss Data
- Equity Data
- Cash Flow Data
- Notes
- Auditor’s Reports (not needed for owner-certified submissions)
- Findings & Prior Audits
- Reserve Accounts Data
- Surplus Cash & Fixed Asset Data
- Nursing Home / Assisted Living Data
- Federal Awards (Non-Profit only)
- Certification
4 – As further confirmation that supplemental information is necessary in the hard copy financial statements, see the following Agreed-Upon Procedures as listed in REAC:
Profit-Motivated Audited Entities
PROCEDURE | UFRS RULE INFORMATION | HARD COPY DOCUMENTS |
1. | Balance Sheet, Revenue and Expense and Cash Flow data (account numbers 1120 to 7100T and the S1200 series) | Financial Data Templates (i.e. Supplemental Schedules) |
2. | Surplus Cash (S1300 series accounts) Note: Cooperatives are exempt from submitting surplus cash accounts. | Financial Data Templates (i.e., Computation of Surplus Cash, Distributions and Residual Receipts – (Annual)) |
3. | Footnotes (S3100 series of accounts) | Footnotes to Audited Basic Financial Statements |
4. | Type of opinion on the Financial Statement and Compliance (account number S2100-020, S2300-020) | Auditor’s Reports on the Financial Statements and Compliance |
5. | Type of opinion on Financial Data Templates (i.e. Supplemental Data) (account S2100-100) | Auditor’s Supplemental Report on Financial Data Templates |
6. | Audit findings narrative (S2700 series of accounts) | Schedule of Findings and Questioned Costs |
Non-Profit Audited Entities
PROCEDURE | UFRS RULE INFORMATION | HARD COPY DOCUMENTS |
1. | Balance Sheet, Revenue and Expense and Cash Flow data (account numbers 1120 to 7100T and the S1200 series) | Financial Data Templates (i.e. Supplemental Schedules) |
2. | Surplus Cash (S1300 series accounts) Note: Cooperatives are exempt from submitting surplus cash accounts. | Financial Data Templates (i.e. Computation of Surplus Cash, Distributions, and Residual Receipts (Annual)) |
3. | Footnotes(S3100 series of accounts) | Footnotes to Audited Basic Financial Statements |
4. | Type of opinion on the Financial Statement and auditor reports(S3400, S3500 and S3600 series of Accounts) | Auditor’s Reports on the Financial Statements, Compliance and Internal Control |
5. | Type of opinion on Financial Data Templates (i.e. Supplemental Data) (account S3400100) | Auditor’s Supplemental Report on Financial Data Templates |
6. | Audit findings narrative (S3800 series of accounts) | Schedule of Findings and Questioned Costs |
7. | General information (S3300, S3700 and S3800 series of accounts) | Schedule of Findings and Questioned Costs and Federal Awards Data |