| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7295 | Closed | public | Multifamily | Les Sparks |
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If an owner took distributions in excess of surplus cash based on the mid year calc, but then refunded the money back to project operating cash after realizing it was not allowable before the end of the year, should the amount refunded by the owner be shown separately from distributions to owner in the statement of changes in members’ equity, or would a “net distributions to members” be appropriate? |
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From Les Sparks: I would net them. It might still be a finding, albeit a corrected one. I guess it depends on the circumstances. However, I would still net. From client: If the owner refunded money back to project operating cash by the end of 2016, therefore “correcting” the over distribution of surplus cash in the same period it was taken, would they still need to submit a corrective action plan as a result of reporting it as a finding? From Les: That is correct. At that point it becomes a corrected findings and no CAP is required. |