| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7104 | Closed | public | Multifamily | Les Sparks |
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I have a prospective client that performs the surplus cash calculation on 1/1 based on the a/p aging at that date so it is an unadjusted a/p number. When the accounts are reconciled and the books are formally closed, the a/p number is much larger since more invoices will obviously be received by then. The calculation needs adjusted for this final a/p number correct? I don’t see anything in the guidelines that cover when the calculation has to be performed but it’s been my experience that most clients don’t make the distributions until our audit is completed and so they reflect final balances. |
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From Les Sparks: The surplus cash calculation (SCC) is performed by the client anytime after year end. However, it must be verified by the audit team and match the audited numbers. Now most audits automatically include all accounts payable in the calculation, however, HUD Only requires those that are to be made within 30 days. I will leave it to you to make that distinction if needed. Nevertheless you are entirely correct. Audited numbers are final number so the client’s calculation must be adjusted. |