Audits for PHA-owned nonprofits

ID Status Date Public/Private Industry AHACPA Contact
#13170 Closed public PHA _General Support
Customer Reply

Our PHA recently formed a nonprofit, with the PHA being the sole member.  The board of the nonprofit is made up of PHA commissioners.  Right now this nonprofit’s only activity is one apartment building that we (the nonprofit) owns.  What type of audit requirements do we have for the nonprofit?  Our PHA receives about $11 million annually from HUD.

Les Sparks

Holly, in it most basic theory, the NFP is audited as part of the PHA audit.  Given what you have described, I would make a guess that the NFP will be a blended component unit.  This means it is a legally separate entity (has its own TIN). However, the nature of the relationship, it would be included in the AFS of the PHA.  It works the same way for the Uniform Guidance compliance audit also. In other words, the PHA audit would include the PHA and the NFP. Likewise any compliance would be in the same single audit. All Federal awards would be in one audit. The last consideration would be if the NFP had another program such as PBRA.  In that case HUD could require a separate multifamily audit.

 

 

Les Sparks

AHACPA

(801) 547-0809

 

From: AHACPA Support <[email protected]>
Sent: Monday, June 15, 2020 10:52 AM
To: [email protected]
Subject: Audits for PHA-owned nonprofits [NEW]

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