Rural Development audits

ID Status Date Public/Private Industry AHACPA Contact
#11921 Closed public Rural Development Les Sparks
Customer Reply

Our firm signed up for the AHACPA membership today (The ZLC Group, CPAs, LLC. We audit five partnerships that each have one RD section 515 project.

We have a few questions regarding the most recent changes to RD audits. Is there a specific RD section 515 audit guide/resource that we can access with our membership?

The projects that we audit have either 24 or 25 units. Each year we would test tenant files/certifications for 4 or 5 tenants for each project. We tested for tenant eligibility and that the proper documentation was in the file for income/expenses, current lease etc.

We have been reading through a few sources that state that testing of tenant files is not required. Can you provide some guidance on this and well as any resources for new RD audit guidelines including new engagement letter examples.

Would both the section 515 loan and the section 515 rental assistance be considered one major program?   Is there a resource available for the required audit procedures for the direct and material compliance requirements?

Thanks for your time.

Les Sparks

Richard, welcome to AHACPA. 


We have a lot of resources to assist you.  They have just recently issued their 2019 audit Guide (see attached).  It is a close comparison to the HUD Guide.


The issuance of the Guide is the latest in a long line of changes for the year that culminated in a new chapter 4 handbook.


I am also attaching our comments on the 2019 financial statement presentation that RD issued.


The general guidance is that RD does NOT require any tenant file testing.


We have other tools that are available, it all depends on what you are looking for.


Les Sparks


(801) 547-0809


From: AHACPA Support <>
Sent: Thursday, December 12, 2019 5:04 PM
Subject: Rural Development audits

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