| ID | Status | Date | Public/Private | Industry | AHACPA Contact |
|---|---|---|---|---|---|
| #7506 | Closed | public | FHA Lender |
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Could you please help me with HUD audit requirement questions below. Thank you! Background: my client [Redacted Lender Name] obtained HUD Lender approval in 11/8/2016. The audited financial statements used for the application dated 4/30/2016. My questions: 1. Does Infinity have HUD audit and LEAP filing requirement for 12/31/2016? 2. Does HUD require the audit to cover certain period, such as 12 month or the months after the application financial statements, 8 months in this case from 5/1/2016-12/31/2016? Or HUD accepts both, either 12 month or 8 month in this case? |
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From Mike Olsen: If [Redacted Lender Name] is a 12/31 year end for HUD, then the answer to your question is Yes, you do have a HUD audit and LEAP filing requirement for 12/31/2016. HUD requires that all periods be audited from the date of the audit used for approval. Because the audited financial statements used for approval were 4/30/2016, your must submit an audit from 5/1/2016 to 12/31/2016. Also, because their approval date was 11/8/2016, this audit will need to be a yellow book audit and include a Report on Internal Controls and also a Report on Compliance with Major Programs, along with the other reporting requirements. In addition, you will need to include a paragraph on Supplemental Data in your Auditors report and reference, at a minimum, the Computation of Adjusted Net Worth. If [Redacted Lender Name] is a 4/30 year end for HUD, then you would prepare an audit form 5/1/2016 to 4/30/2017. |