| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7828 | Closed | public | PHA | Les Sparks |
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In my years of auditing in Public Housing for myself and other firms we have never accrued the audit fee for the year under audit.A colleague of mine said that was right and it is a HUD regulation. If this is correct can you direct me to the HUD regulation where I can show the fee accountant where accrual of this fee is not allowed. |
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From Les Sparks: The good thing about my job is that I get to learn all of the things HUD regulates… This is not one of them. There a lot of people who, in the interest of reducing residual receipts deposits, find new and creative ways to reduce surplus cash. I have to assume this to be the case. If this appears to be against normal accounting rules, it is. As a rule, I do not mind if the client accrues audit fees for the 2016 year by 12/31/2016. However, they cannot pay and expense 2015 audit fees in 2016 and then accrue 2016 fees. Only one set of fees for each 12-month period. Just common sense. HUD has said nothing about this particular item. HUD only indicates that you should include as a liability in surplus cash any liabilities payable within 30 days after year end. Anything else is just a dream/fantasy. I hope this helps. |