As an owner, developer or management agent of an affordable housing project funded by federal monies, the U.S. Department of Housing and Urban Development (HUD) may require you to complete an audit or compilation on the project. MarksNelson is experienced in working with programs like these, and we understand the complex compliance and reporting requirements of the granting agency, especially in the current era of increased oversight.
Here's how it works:
Planning – We spend a great deal of time getting to know you and your project. We learn about the operating and compliance environment, review regulatory, HAP, and other pertinent agreements, and make inquiries of management and others within the business. During the planning stage, we also document and test internal controls and compliance in accordance with government auditing standards as well as perform analysis of risk so that we focus on the high-risk areas of the audit.
Fieldwork – During fieldwork, we perform tests and analyses at the organization’s office, reviewing the appropriate source documents and making additional inquiries as necessary. Depending on your company’s accounting software, we may complete our work electronically.
Draft reports – When the audit procedures are complete and the work has been reviewed, drafts of the report prepared in accordance with government auditing standards, governance letter, and, if appropriate, management comment letter are submitted to management for review. To indicate approval, we ask that company management sign a representation letter.
Final reports and wrap-up – When all approvals are received, we provide copies of the final report and letters to company management. We will also attest that the financial reports submitted to HUD through their Real Estate Assessment Center (REAC) agree with the financial reports that contain our audit opinion. We coordinate, if necessary, final communications with investor partners and the state agencies on the client’s behalf. We complete our files in accordance with auditing standards and record retention policies.