| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7875 | Closed | public | FHA Lender |
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Have a new client that has GNMA reporting requirements and is looking at having to do a custodial review on site in New York. We have always gotten a single auditor report that did the on site work in the past. The custodian BYN Mellon says they have not arranged single auditor reports for their GNMA clients so far but may in 2017 for 2016. My client need it for 2015. Are other auditors in you experience actually sending someone across the country to do this? Seems crazy. Do you think GNMA would allow a one year extension of 3 year requirement to wait for BYN Mellon to do single auditor report in 2017 for 2016. Do you have any contacts in GNMA / HUD who are friendly I might ask? Do you know of any auditors in NY who might perform this service for us? |
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From Mike Olsen: In discussions I have had with other CPA’s, if they do not receive a single auditor report on their custodians, they are sending someone to the custodians to perform the on-site review. As you know, this review is required to be performed every 3 years, generally starting with the 1st year of the audit engagement. It is allowed to hire another CPA in the area of the custodial and have them perform the on-site review for you. Depending on where the securities of your client are being held, I may be able to help you find a CPA in the area to perform the review, if you do not want to do it yourself. If that is the case, please let me know where the location is. My understanding is that BNY Mellon has at least 2 locations and maybe more where securities are held. As far as GNMA allowing a one year extension, I am not sure about that. I am not even sure how closely GNMA monitors that review. Nothing is sent into GNMA with the audit to show that the on-site review was done, other than you audit report. |