Upcoming Changes to HUD's Non-Profit Chart of Accounts
In August of 2016 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-14 regarding the presentation of financial statements for nonprofit entities. The ASU is effective for annual financial statements issued for fiscal years beginning after December 15, 2017. For simplicity reasons FASSUB will be modified to make the new standard effective for all nonprofit owners with fiscal years ending December 31, 2018 and thereafter. The main provisions of this guidance as they pertain to REAC financial statement submissions are as follows:
- Reduces the classes of net assets from three to two. Nonprofits will report amounts for net assets with donor restrictions, and net assets without donor restrictions. Classification of net assets with temporary restrictions will be eliminated. The impact to multifamily reporting will generally be limited to thse entities who were reporting Section 202/811 as temporarily restricted net assets. Owners will now be required to determine in which category of net assets amounts will be presented.
- Nonprofits may elect to present the cash flow on either the direct or indirect methods. HUD’s handbooks require the direct method. However, REAC has elected to exercise the option to eliminate the indirect reconciliation on the direct method cash flow. Accordingly, the REAC template will remain on the direct method, but the schedule will end after the determination of cash.
- For-Profit entities will retain the full direct method cash flow.
ASU 2016-14 also increases requirements for nonprofits to disclose expenses by both their natural and functional classifications in one of the following locations:
- On the face of the statement of activities
- In the notes to financial statements, or
- As a separate financial statement (data schedule)
REAC has determined that the FASSUB template will NOT be modified to collect this data. Rather, in REAC, the data will only be includable in a footnote. In general, there is no specific guidance issued on the classification. In multifamily, the majority of the costs are program services. The general decisions will reside in the administrative costs.
The full text of ASU 2016-14 can be found here.
A release date for the system modifications has not been determined yet but it is anticipated that this will occur before the end of the calendar year.
Proposed changes to Balance Sheet
Proposed changes to Profit & Loss
Proposed changes to Equity
Proposed changes to Cash Flow
Details of these changes will be discussed at the Multifamily Conference. See below for course information.
Multifamily conference Info & Registration
20th Annual Multifamily Conference
December 4th & 5th, 2018
December 4th: 8:00 am - 5:00 pm
December 5th: 8:00 am - 3:10 pm
16 CPE Credit Hours
Speakers:
Christopher R. Bailey, CPA, Principal, Tidwell Group
Peter B Bell, CPA, Peter B. Bell, CPA, LLC
Toni Diprizio, CPA, Partner, Plante Moran
Sean I. Hutton, CPA, Audit Team Manager, Tidwell Group
Carole McNees, CPA, Partner, Plante Moran
Les Sparks, President, AHACPA
Course Fee: $650 ($600 for AHACPA Members)
Register by November 11th November 19th for a $50 early-registration discount
The Cosmopolitan of Las Vegas
3708 Las Vegas Blvd South Las Vegas, NV 89109
Click here to register online.
Click here for a printable registration form (use this when registering more than one person at the same time)
FHA Lender Update
December 3rd, 2018: 8:30 AM - 4:30 PM
8 CPE Credit Hours
Speakers:
Mike Olsen, CFO, AHACPA
Andrew Schell, CPA/CFF, CMB, Managing Partner – MBS
Les Sparks, President, AHACPA
Monique White-Chiselom, Supervisory Auditor, HUD-FHA
Course Fee: $395 ($345 for AHACPA Members)
The Cosmopolitan of Las Vegas
3708 Las Vegas Blvd South Las Vegas, NV 89109
Click here to register online.
Click here for a printable registration form (use this when registering more than one person at the same time)
Inaugural Multifamily Update Webinar
Join us for AHACPA's inaugural Multifamily Update Webinar.
Session 1: November 20, 2018 10:00 AM Mountain Time. Limited to 100 participants, only 20 spots still available.
Highlights & Learning Objectives:
- Provide an update on the implementation of Yellowbook/AICPA Independence requirements for HUD Audits
- Instruct Participants on Changes to GAAP requirements for Multifamily Non-profits.
- General update on audit strategies and efficiencies for HUD multifamily Audits
Register for Session 1 or call 801-547-0809 or email info@ahacpa.org
Course Fee
We are offering a special inaugural rate of $100 for 4 CPE Credits
CPE Credit
This Internet-Based Multifamily Update Course is eligible for 4 hours Auditing (Governmental) CPE Credits
CPE credits will be provided in accordance with the standards for the National Registry of CPE Sponsors. CPE Credits are granted based on a 50-minute hour.
CPE Credit Information
Objective: To learn HUD accounting, auditing, and electronic submission requirements and how to efficiently implement those requirements.
Prerequisites / Advanced Preparation: General HUD accounting or audit experience. You do not need to print any course materials prior to your arrival. All materials will be provided for you.
Instructional Method: Group-Live with interactive discussion and Group Internet Based
Length / CPE Credits: One-day Update Courses provide up to 8 hours CPE credit (4 hours governmental accounting and 4 hours governmental auditing). Two-day Conferences provide up to 16 hours CPE credit (8 hours governmental accounting and 8 hours governmental auditing).
Cancellation Policy: All cancellation requests must be received in writing (email or fax is fine). Registration fees are fully refundable provided the request is received at least three weeks prior to the course. Requests received after this date, but one week before the course will receive a refund less an administration fee of $50 for Update Courses and $75 for Conferences. Due to financial obligations incurred by AHACPA, no refunds will be issued for cancellation requests received less than a week before the course.
Substitutions: If you are unable to attend a course you may substitute another individual or change locations without penalty. The location change must be within the same calendar year. For proper CPE credit and record keeping, you must notify us in advance of any substitution or change in location.
Contact Information: For more information regarding refund, complaint, and/or program cancellation policies, please contact our office at 801-547-0809.