| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #12362 | Closed | public | Multifamily | _General Support |
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I believe I remember hearing in a training session that the Federal Financial Reports section of the HUD audit program does not include the annual audited financial statements – only other required reports. Three out of the five suggested steps are specifically limited to reports other than the annual financial statements. But does that mean that if their only reporting requirement is the annual financial statement, then the entire section is not applicable? Would we leave it out of the specific requirements listed in the engagement letter and on the letter attached to the financial statements? |
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Debby, I personally do not believe that the Federal Financial Report (FFR) section includes the annual financial statements. You may ask “Why?” My answer is that the entire first section of the Audit Guide (Chapters 1 and 3) discuss the annual reporting requirements in much greater detail than what you would expect to get out of the FFR section. With all of that detail why bring it up again as an audit procedure.
You are correct about the monthly accounting reports. They do cover that many questions. What else remains after those reports? Well, anything related to Section 236 or several other programs. However, I do not believe that it applies to the annual report.
Les Sparks AHACPA (801) 547-0809
From: AHACPA Support <support@ahacpa.org> |
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Thank you.
From: AHACPA Support [mailto:support@ahacpa.org] Sent: Monday, February 10, 2020 1:54 PM |
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I’m sorry, one more question then – would you list it in the list of specific requirements in the Report on Compliance for Each Major HUD Program?
And should we be listing Fair Housing in that letter too? There used to be a separate report, which there isn’t anymore, however we do some testing in that area.
From: AHACPA Support [mailto:support@ahacpa.org] Sent: Monday, February 10, 2020 1:54 PM |
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Okay, we should never be listing Fair Housing in the major program report. There is no way we should ever give an opinion on that. That is why we always had a separate Fair Housing. Now that the report has gone away, we still do not add the section back to the compliance report.
If we believe that there area no FFRs required, I would not add it to the report. Make sure the w/p’s indicate that our assessment is that no reports were identified.
Les Sparks AHACPA (801) 547-0809
From: AHACPA Support <support@ahacpa.org> |