Audit of RD properties

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ID Status Date Public/Private Industry AHACPA Contact
#17891 Closed public Rural Development _General Support
Customer Reply

I’ve not performed an audit on a RD property. A local auditor is no longer performing audits due to wanting to exit Peer review requirements. Do you have a good resource / checklists of items I should be asking for/reviewing prior to accepting engagement. I do have the The property has been in RD for several years and property management has over 20 years experience with RD. Supposedly books are very clean.
Les Sparks

Kevin, I would approach this with same perspective of a HUD audit. Here are the primary differences.

  1. RD services all 515 mortgages with no bank involved in the loan.
  2. Loan payments are deducted by RD from the subsidy to be received.
  3. Distributions are limited to the lower of the established note amount or surplus cash – and it is a slightly different calculation.
  4. There is no tenant file testing – ever!
  5. Client is required to submit annual budgets which RD monitors assiduously.
  6. No REAC submission process.
  7. Audit Guide is based on HUD but has some changes.

 

In reality, there are not too many additional things to look for outside of what I have mentioned. Feel free to reach out for anything you may need.

 

Here is link to anything you might need to start.

 

https://ahacpa.sharefile.com/d-se2f230d4ef4748cc89f91b69fdc92987

 

Les Sparks
AHACPA | 459 N 300 W #10 | Kaysville, UT 84037 | Phone: 801-547-0809
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From: AHACPA Support <support@ahacpa.org>
Sent: Tuesday, February 7, 2023 2:35 PM
To: les@ahacpa.org
Subject: Audit of RD properties [NEW]

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