Audit Requirements Questions

ID Status Date Public/Private Industry AHACPA Contact
#7496 Closed public Rural Development Les Sparks
Customer Reply

One of my clients will be selling/purchasing two USDA projects, and we are trying to determine what the audit requirements will be. Would you be able to help me out with this? We are wondering whether the USDA requires that two audits be performed in a year when a USDA project gets sold – one for the pre-sale activity, and another for the post-sale activity. Or would one full year audit suffice?

Both projects have a mortgage note payable to the USDA. One has 23 units and the other has 40 units.

Kathy Christensen

From Les Sparks:

Having gone through the Chapter 4 of the 3560 handbook today, I could not find any specific guidance issued by RD on the timing of reports in the situation s described. I assume that that the local field office would give guidance on what they want. They have never been as inclined to give this sort of guidance as HUD is. Bottom line is that I do not know how they handle purchase/sales transactions.

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