Given the complexity and specialized nature required for HUD audits, it is necessary to use a firm with HUD audit experience. Here’s what to expect during our HUD audit process:
Planning and Risk Assessment
Our HUD audit process begins with a thorough planning phase. We invest time in understanding your project and its unique operating environment. This involves reviewing regulatory agreements, Housing Assistance Payments (HAP) contracts, and other relevant documentation. We engage with management and key personnel to gain a comprehensive understanding of your operations. During this stage, we also document and test internal controls and compliance protocols according to government auditing standards. Risk analysis is conducted to identify high-risk areas, ensuring our audit focuses on the most critical aspects of your project.
Fieldwork
Fieldwork is where we perform detailed tests and analyses. This includes reviewing source documents, making inquiries, and verifying compliance with HUD regulations and requirements. Our team adapts to your accounting software, allowing us to efficiently complete our work, often electronically. Based on the outcome of the planning phase, this stage ensures that the necessary financial data and compliance requirements have been examined.
Draft Reports and Approval
Upon completing our audit procedures and internal reviews, we prepare draft reports per government auditing standards. These drafts include the audit report, a governance letter, and if necessary, a management comment letter. These documents are submitted to your management team for review. Next, we request that your management sign a representation letter indicating their approval.
Completion
Once we receive all necessary approvals, we provide copies of the final report and accompanying letters to your management team. We also attest that the financial reports submitted to HUD through the REAC align with the audited financial statements. If required, we coordinate final communications with investor partners and state agencies on your behalf. Our team ensures all files are completed in accordance with auditing standards and record retention policies.
Specialized HUD Accounting Services
Our HUD-related services include:
- Accounting and Assurance: We provide financial statement preparation, compliance audits and financial statement audits, and detailed financial reviews.
- Tax Planning and Return Preparation: We assist with tax planning strategies and prepare all necessary tax returns, ensuring compliance with federal, state, and local tax authorities.
- Electronic Submission: We handle the electronic submission of financial and compliance data to HUD’s REAC, adhering to the 90-day post-year-end deadline.
- Regulatory Compliance: Our team stays current with the latest HUD regulations.
Reach out to us for more information or to schedule a consultation.