Participants in insured multi-family housing programs must generally prepare annual financial reports in accordance with U.S. Department of Housing and Urban Development (HUD) guidelines and Generally Accepted Accounting Principles (GAAP). The reports must also be submitted to HUD electronically for evaluation within 90 days of the year end. We understand the complexities of these financial and regulatory issues and can provide you with our professional knowledge and experience.
Auditing and Financial Reporting
HUD requires an annual audit for profit motivated projects, as well as non-profit projects exceeding specific financial assistance thresholds. Such audits must be performed in accordance with generally accepted governmental auditing standards as required by HUD’s Consolidated Audit Guide for Audits of HUD Programs for for-profit entities and the Single Audit Act for non-profit entities. As such, the audit is not only financial, but also an audit of the owner’s compliance with federal laws and regulations and an assessment of the internal controls applied in administering the federal funds.
Other HUD Services
As construction of a project nears completion, HUD requires cost certification audits of the owner’s cut-off financial statements and a Mortgagor’s Certificate of Actual Costs that are submitted to HUD. In addition, the contractor must also submit an audited cost certification of the actual construction costs.
HUD requires the annual audited financial statements to be electronically submitted through the Real Estate Assessment Center (REAC). We can perform an agreed-upon procedure engagement to assist the client with this submission.
Our firm can assist you at all stages of project planning as well as consulting, preparation of the Surplus Cash schedule for owner distributions, auditing, accounting and regulatory compliance.