| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
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| #17566 | Closed | public | Multifamily | Les Sparks |
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Good afternoon. We picked up a HUD audit with a 223(f) program. Their tenants receive Section 8 tenant-based subsidies through a Housing Authority. Does this require any additional audit procedures such as tenant file testing? The amount is material (roughly 25% of total rent) but I only see requirements for project-based subsidies, not tenant-based. |
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James, subsidy received from the PHA is known as voucher subsidy. This is not considered a federal award for purposes of testing as the PHA performs all eligibility procedures related to tenants. They include the subsidy on their SEFA. HUD addresses this in only one place. I have included it below.
This is from the Submission Requirements memo.
The owner may opt to submit the audited financial statement within 90 days after the end of the fiscal year. By submitting the audited AFS within 90 days the owner can eliminate the additional step of submitting an owner-certified AFS. Combined federal assistance is calculated at the owning entity level and is comprised of: The outstanding balance of all FHA-insured and HUD-held mortgages and any direct loans (including the original principal amount received under the 202/811 capital advance program) Section 8 assistance or other project-based rental assistance received during the audit year Grant funds received during the year, including flexible subsidy, drug-elimination, and service coordinator Section 236 Interest Reduction Payments All other Federal assistance received during the audit year
Note: Tenant-based assistance (e.g. vouchers, certificates, Medicare/Medicaid) is not included when calculating combined federal assistance.
Les Sparks
From: AHACPA Support <support@ahacpa.org> |