INTRODUCTORY MATERIAL

• PREFACE
• PEER REVIEW OF THIS GUIDE
• HOW TO USE THE GUIDE
• ACKNOWLEDGMENTS
• ACKNOWLEDGMENT OF COPYRIGHTS
• ABOUT THE AUTHORS . . .
• LIST OF SUBSTANTIVE CHANGES AND ADDITIONS
  • IMPORTANT INFORMATION ABOUT YOUR PPC's GUIDE TO HUD AUDITS
  • LATE BREAKING NEWS ANNOUNCING THE ISSUANCE OF THE OMB CIRCULAR A-133 COMPLIANCE SUPPLEMENT ADDENDUM #1

CHAPTER 1: OVERVIEW

• 100 INTRODUCTION
• 101 TYPES OF MULTIFAMILY HOUSING PROGRAMS
  • Insured Loans
  • Coinsured Loans
  • Risk-sharing Programs
  • Direct Loans, Capital Advances, Flexible Subsidies and Grants
    • Section 202 Direct Loans.
    • Direct Loans under the Property Disposition Purchase Money Mortgage Program.
    • Capital Advance Programs.
    • Flexible Subsidies.
  • Grant Programs for Nonprofit Owners
  • Rental Subsidies
• 102 THE HUD ORGANIZATION
  • HUD Headquarters
    • Office of the Inspector General (OIG).
    • Office of Mortgage Insurance Accounting and Servicing Division.
    • Division of Elderly and Assisted Housing.
    • Office of the Secretary.
    • Office of Affordable Housing Preservation.
    • Real Estate Assessment Center.
    • Enforcement Center.
  • HUD Field Offices
  • Outsourcing
• 103 PARTICIPANTS IN HUD PROGRAMS
  • Project Owners
    • Form of Organization.
    • Profit-motivated Projects versus Limited Distribution or Nonprofit Projects.
  • Project versus Entity Expenses
  • Lenders
    • Private Sector Lenders.
    • Quasi-public Lenders.
  • State Housing Agencies and Indian Housing Authorities
  • Management Agents
• 104 AUDIT AND ACCOUNTING GUIDANCE APPLICABLE IN AUDITS OF HUD-ASSISTED ENTITIES
  • General Literature
    • GAAS and GAAP.
    • Developments in Authoritative Literature.
    • GAGAS and the Yellow Book.
    • Government Auditing Standards, 2007 Revision.
    • Single Audit Act and OMB Circular A-133.
    • PPC'S Government Documents Library.
    • AICPA Audit Guide.
  • Specific Literature
    • HUD Audit Guide.
    • July 2008 Revisions to the HUD Audit Guide.
    • Revisions Still in Progress.
    • HUD Handbook--Financial Operations and Accounting Procedures for Insured Multifamily Projects.
    • Other HUD Handbooks.
    • HUD Internet Sites.
• 105 ACCOUNTANTS' INVOLVEMENT WITH HUD CLIENTS
  • How Are Auditors Selected?
    • HUD Proposal for an Independent Public Accountant Roster.
  • Other Opportunities for Client Service
  • Considerations for the American Recovery and Reinvestment Act of 2009
    • Transparency and Accountability Requirements.
    • Recovery Act Implications for Auditors of Recovery Act Award Recipients.
    • Recovery Act Implications for Single Audits of Nonprofit HUD Entities.
    • Proposed Legislation and Other Considerations.
    • Where to Find More Information.
• 106 THE PPC AUDIT PROCESS
  • Practice Aids
• 107 ORGANIZATION AND SCOPE OF PPC'S GUIDE TO HUD AUDITS
  • Multifamily Housing Projects
  • Nonsupervised Mortgagees, Loan Correspondents, and Lenders
  • Low Income Housing Tax Credit Projects
  • Cost Certification Audits
  • State Housing Agencies, Public Housing Authorities, and Indian Housing Authorities
  • Practice Aids
    • PPC's Checkpoint Tools.
• APPENDIX 1A: HUD Information Internet Sites
• APPENDIX 1B: PPC'S Government Documents Library

CHAPTER 2: HUD MULTIFAMILY HOUSING: PROGRAM FEATURES, CONTRACTS, AND FORMS

• 200 INTRODUCTION
  • Considerations for the American Recovery and Reinvestment Act of 2009
• 201 MULTIFAMILY INSURANCE PROGRAMS
  • Summary of Program Provisions
  • Multifamily Accelerated Processing (MAP)
  • HUD Multifamily Insurance Programs
  • Section 207 Multifamily Rental Housing
  • Section 207 Manufactured Home Parks
  • Section 213 Cooperative Housing
  • Section 220 Mortgage Insurance for Urban Renewal Projects
  • Section 221 Multifamily Rental Housing for Low and Moderate Income Families
    • Below Market Interest Rate (BMIR) Financing.
  • Section 223(f) Insurance for the Purchase or Refinancing of Existing Projects
  • Section 223(a)(7) Insurance for the Refinancing of Existing Projects
  • Section 231 Mortgage Insurance for Housing for the Elderly and Handicapped
  • Section 232 Mortgage Insurance for Nursing Homes
  • Section 234(d) Mortgage Insurance for Condominiums
  • Section 236 Interest Reduction Program
  • Section 241(a) Supplemental Loans for Multifamily Projects
  • Section 242 Hospitals
  • Summary of HUD Programs
• 202 COINSURANCE PROGRAMS
  • Summary of HUD Programs
• 203 RISK-SHARING PROGRAM
• 204 DIRECT LOANS, CAPITAL ADVANCES, FLEXIBLE SUBSIDIES, AND GRANTS
  • Section 202 Direct Loans for Housing for the Elderly or Handicapped Persons
  • Capital Advance Programs
    • Section 202 Supportive Housing for the Elderly.
    • Section 811 Supportive Housing for Disabled Persons.
  • Flexible Subsidies
  • Grant Programs for Nonprofit Owners
    • Assisted-living Conversion Program (ALCP).
    • Emergency Capital Repair Program (ECRP).
  • Recovery Act Program
  • Summary of HUD Programs
• 205 RENT SUBSIDY PROGRAMS
  • Summary of Program Provisions
  • Section 8 Assistance Programs
    • Section 8 New Construction and Substantial Rehabilitation.
    • Section 8/Section 202.
    • Tenant-based Assistance under the Section 8 Certificate and Section 8 Voucher Programs.
    • Section 8 Project-based Certificate Program.
    • Section 8 Moderate Rehabilitation.
    • Section 8 Loan Management Set Aside Program.
    • Section 8 Property Disposition Program.
    • Mark-to-market Restructuring.
  • Rental Assistance Payments (RAP)
  • Rent Supplement
    • Project Rental Assistance for Section 202 and Section 811 Capital Advance Projects.
  • Recovery Act Program
  • Contract Extensions
  • Summary of HUD Programs
• 206 GENERAL CONTRACTS AND FORMS
  • The Regulatory Agreement
  • Affirmative Fair Housing Marketing Plan (Form HUD-935.2A)
  • Management Entity Profile (Form HUD-9832)
  • Management Certifications
    • Projects with Management Agents.
    • Projects without Management Agents.
  • Computation of Surplus Cash, Distributions, and Residual Receipts
    • Profit-motivated versus Limited Distribution and Nonprofit Projects.
    • Calculating Distributions.
    • Sample Computation.
  • Management Reviews
• 207 CONTRACTS, FORMS, AND PROCESSES UNIQUE TO RENT SUBSIDY PROJECTS
  • The Housing Assistance Payments (HAP) Contract
  • The Rental Housing Integrity Improvement Project
  • Tenant Rental Assistance Certification System (TRACS)
  • Rent Schedule--Low Rent Housing (Form HUD-92458)
  • Monthly Report of Excess Income (Form HUD-93104)
• 208 HUD CONTRACTS AND FORMS FINDING LIST AND GLOSSARY
• APPENDIX 2A: Summary of HUD Programs
• APPENDIX 2B: Contracts and Forms
  • APPENDIX 2B-1: Illustrative Affirmative Fair Housing Marketing Plan (Form HUD-935.2A)
  • APPENDIX 2B-2: Illustrative Project Owner's & Management Agent's Certification for Multifamily Housing Projects for Identity-of-interest or Independent Management Agents (Form HUD-9839-B)
  • APPENDIX 2B-3: Illustrative Computation of Surplus Cash, Distributions, and Residual Receipts for a Limited Distribution Owner
  • APPENDIX 2B-4: Illustrative Rent Schedule--Low Rent Housing (Form HUD-92458)
• APPENDIX 2C: HUD Contracts and Forms Finding List
• APPENDIX 2D: Glossary

CHAPTER 3: ACCOUNTING CONSIDERATIONS AND FINANCIAL STATEMENT PRESENTATION

• 300 OVERVIEW OF ACCOUNTING GUIDANCE FOR HUD PROGRAMS
  • FASB Codification
    • Changes to This Guide for the Codification.
  • Accounting Literature Applicable to HUD Entities
    • Accounting Practices Prescribed by HUD.
  • Fair Value Accounting Considerations
    • Fair Value Measurements.
    • Recent Developments to Provide Further Guidance on Fair Value Measurements.
    • Pending Developments to Provide Further Guidance on Fair Value Measurements.
  • Applying the Accounting Literature to Nonprofit Organizations
  • Specific Accounting Guidance for Nonprofit Organizations
    • Accounting for Contributions Received.
    • Financial Statements of Not-for-Profit Organizations.
    • Accounting for Certain Investments Held by Not-for-Profit Organizations.
  • Project versus Entity Accounting and Financial Reporting
• 301 CASH AND CASH EQUIVALENTS, INCLUDING RESTRICTED DEPOSITS
  • Overview of Accounting Standards
  • Distinguishing between Cash, Cash Equivalents, and Investments
    • How Cash Is Defined.
    • Rules of Thumb.
  • Project Bank Accounts Required by HUD
    • Operating Account.
    • Tenant Security Deposit Account.
    • Replacement Reserve Account.
    • Residual Receipts Account.
  • Other Required Cash Accounts
    • Management Improvement and Operating Plan Account.
  • Balance Sheet Classification
  • Required Disclosures
    • Concentrations of Credit Risk.
    • Other Disclosures.
• 302 INVESTMENTS
  • Overview of Accounting Standards
    • Definitions.
    • What Accounting Standards Apply to Profit-motivated and Nonprofit Entities?
  • Investments of For Profit Entities
    • Accounting for Certain Investments in Debt and Equity Securities.
    • Other-than-temporary Impairment of Securities.
    • Should a Valuation Account Be Used to Record Unrealized Gains and Losses?
    • Balance Sheet Classification.
  • Investments of Nonprofit Organizations
    • Accounting for Certain Investments Held by Not-for-Profit Organizations.
    • Basis of Valuation of Investments.
    • Reporting Gains and Losses and Investment Income.
  • Required Disclosures
  • Derivatives
    • Accounting for Derivatives.
    • Disclosures about Derivative Instruments and Hedging Activities.
• 303 RENTAL REVENUE, OTHER INCOME, AND RECEIVABLES
  • Overview of Accounting Standards
  • Rental Income and Related Receivables
    • Sections 236 and 221(d)(3) BMIR Projects.
    • Rents and Subsidies Received in Advance.
    • Uncollectible Receivables.
    • Concentrations of Credit Risk.
  • Other Income
    • Nonprofit Entities.
  • Receivables from Project Owners, Officers, or Management Agents
• 304 PROPERTY, PREPAID EXPENSES, INTANGIBLES, AND OTHER ASSETS
  • Escrow Deposits
  • Prepaid Advertising
    • Required Disclosures.
  • Goodwill and Impairment of Goodwill--For-profit Entities
    • Acquisition of Goodwill.
    • Amortization of Goodwill.
    • Assessing the Impairment of Goodwill.
    • Frequency of Testing Goodwill for Impairment.
  • Goodwill and Impairment of Goodwill--Nonprofit Entities
  • Guidance on Accounting for Impairment of Assets with Long Lives
• 305 DEBT AND OTHER LIABILITIES
  • Mortgages Payable and HUD Loans and Advances
    • Flexible Subsidy Loans.
  • Section 202 and 811 Capital Advances
    • Minimum Capital Investments.
  • Tenant Security Deposits
  • Advances from Project Owners
  • Other Liabilities
  • Required Disclosures
• 306 PROJECT EQUITY
  • Residual Receipts--Equity versus Liability
  • Distributions to Project Owners
  • Expenditures from Funded Reserves
  • Supplementary Information Required by HUD
• 307 RISKS AND UNCERTAINTIES
  • Scope and Applicability
    • Scope.
    • Excluded Items.
  • Nature of Operations
  • Use of Estimates
  • Certain Significant Estimates
    • Existing Condition.
    • Reasonably Possible.
    • Near Term.
    • Material.
    • Disclosure Considerations for Estimates.
    • Known Information.
    • Example Disclosures.
  • Current Vulnerability Due to Concentrations
    • What Is a Concentration?
    • Criteria for Disclosure.
    • Severe Impact.
    • Group Concentrations.
    • Example Disclosures.
  • Summary of Disclosure Requirements
• 308 REAL ESTATE IMPAIRMENT
  • Real Estate to Be Disposed of versus to Be Held and Used
  • Real Estate to Be Disposed of by Sale
    • General Rule.
  • Real Estate to Be Held and Used
    • Signs of Possible Impairment.
    • Assessing Impairment.
    • Recognizing and Measuring Impairment.
    • Example of Impairment Accounting.
    • Depreciation.
  • Estimating Future Cash Flows
• 309 MARK-TO-MARKET RESTRUCTURING--SECTION 8 PROJECTS
  • Accounting Issues
  • Compliance Issues
  • Example Financial Statement Disclosures
• 310 FINANCIAL STATEMENT PRESENTATION
  • Financial Reporting Revisions
  • Financial Report Review Process
  • General Accounting Considerations
    • Basis of Accounting.
    • HUD Prescribed Chart of Accounts.
  • Considerations for Nonprofit Entities
    • Fund Accounting.
    • Financial Statements of Not-for-Profit Organizations.
    • Statement of Financial Position.
    • Statement of Activities.
    • Functional Expenses.
    • Statement of Cash Flows.
  • Balance Sheet Considerations
    • Classified Balance Sheets.
  • Project versus Entity Expenses
  • Statement of Cash Flows
    • Interest on Investments for Replacement Reserve and Residual Receipts Accounts.
  • Comprehensive Income
  • Reporting Comprehensive Income
    • Classifying Other Comprehensive Income.
    • Reclassification Adjustments.
    • Tax Effects Related to Other Comprehensive Income.
    • Financial Statement Presentation.
    • Interim Reporting.
  • Reporting Accumulated Comprehensive Income in the Balance Sheet
  • Notes to Financial Statements
    • Should the Management Fee Percentage Be Disclosed?
    • References to the Authoritative Literature.
  • Supplementary Information Required by HUD
• 311 UNIFORM FINANCIAL REPORTING STANDARDS
  • Background
  • HUD Regulations
    • Final Rule on Financial Reporting Standards.
    • Handbooks.
  • Scope and Applicability
  • Financial Statements
    • Cross-references to the FASB Codification.
  • Chart of Accounts
    • Terminology Changes in Response to SAS No. 112.
  • Supplementary Information
  • Electronic Submission of the Financial Report
    • Submission Deadline.
    • Retention Requirement.
  • REAC Assistance
  • Case Study on Electronic Submission of Financial Statements under Uniform Financial Reporting Standards
    • Step 1.
    • Step 2.
    • Step 3.
    • Step 4.
    • Step 5.
    • Step 6.
    • Step 7.
• APPENDIX 3A:
  • APPENDIX 3A-1: FASSUB Account Listing
• APPENDIX 3B: Illustrative Financial Statements--Nonprofit Entity with Section 202 Direct Loan (Major Program) and Section 8 (Nonmajor Program)
• APPENDIX 3C: Illustrative Financial Statements--for Profit Entity with Section 221(D)(4) Insured Loan (Major Program) and Section 8 (Major Program)

CHAPTER 4: PRE-ENGAGEMENT ACTIVITIES AND AUDIT PLANNING

• 400 INTRODUCTION AND AUTHORITATIVE LITERATURE
  • Authoritative Literature
    • Generally Accepted Auditing Standards.
    • Pre-engagement Activities.
    • Preliminary Planning.
    • Literature Specific to HUD Entities.
    • Should Nonprofit Recipients of HUD Assistance Follow the HUD Audit Guide or OMB Circular A-133?
• 401 OTHER AUDITOR RESPONSIBILITIES AND REQUIREMENTS
  • Categories of Professional Requirements
  • Ethical Principles
  • Independence
    • Independence Requirements under GAAS.
    • GAO Independence Requirements.
    • HUD Independence Requirements.
  • Professional Judgment
    • Documentation.
  • Competence and Continuing Education
    • GAAS Requirements.
    • Government Auditing Standards Requirements.
  • GAO Quality Control and Assurance Requirements
    • Requirement to Make Peer Review Report Publicly Available.
  • REAC's Quality Assurance Process for Reliance on Independent Auditors
    • Selection Process.
    • Quality Review Types.
    • HUD Review of Auditors' Workpapers.
• 402 CLIENT ACCEPTANCE AND CONTINUANCE
  • Risk-based Perspective
  • Ability to Accept the Engagement
    • Licensing Considerations.
  • Management Integrity
  • Use of Third-Party Service Providers
  • Level of Service
• 403 DOCUMENTING THE ENGAGEMENT ACCEPTANCE OR CONTINUANCE DECISION
  • Annual Evaluation for Continuing Engagement
• 404 ESTABLISHING THE TERMS OF THE ENGAGEMENT
  • Considerations for Documenting the Terms of the Engagement
    • Indemnification Clauses.
    • Communications Required by Government Auditing Standards.
    • Communications Required by the HUD Audit Guide.
    • Electronic Submission.
    • Audit Fee Considerations.
    • Management Agent Considerations.
    • Sample Engagement Letters.
• 405 AUDIT PLANNING
  • Objectives of Audit Planning
    • Requesting Information from the Client.
  • The Sequence of Audit Planning
  • Risk Assessment Process
    • Procedures Performed.
    • Understanding Obtained.
    • Decisions and Judgments Made.
    • Summary of Risk Assessment Process.
  • Performing Risk Assessment Procedures
    • Assessing Risk of Noncompliance.
    • Types of Risk Assessment Procedures.
    • Nature, Timing, and Extent--General Considerations.
    • Gathering Other Information Needed to Identify Fraud Risks.
    • Using the Results of Risk Assessment Procedures Performed in Prior Periods.
  • Inquiries of Management and Others
    • Matters and Parties of Inquiry.
    • Additional Government Auditing Standards Requirements.
    • Fraud-related Inquiries.
    • Documentation.
  • Preliminary Analytical Procedures
    • Documentation.
  • Observation and Inspection
    • Documentation.
  • Discussion among the Engagement Team
    • Matters to Be Discussed.
    • Effect on Significant Audit Areas.
    • Who Should Attend the Discussion?
    • When Should the Discussion Occur?
    • Documentation.
• 406 UNDERSTANDING THE ENTITY AND ITS ENVIRONMENT
  • Components of the Understanding
    • Documentation.
    • Purpose of This Section.
  • Industry, Regulatory, and Other External Factors
    • Risk Assessment Procedures and Factors to Consider.
  • Nature of the Entity
    • Operating Characteristics.
    • Organizational Structure and Personnel.
    • Audit Committees.
    • HUD Correspondence.
    • Identifying Programs under Which the Owner Receives Assistance.
    • Identifying Major and Nonmajor Programs.
    • Related Parties.
    • Risk Assessment Procedures and Factors to Consider.
  • Objectives, Strategies, and Related Business Risks
    • Risk Assessment Procedures and Factors to Consider.
  • Measurement and Review of the Entity's Financial Performance
    • Risk Assessment Procedures and Factors to Consider.
  • Selection and Application of Accounting Policies
    • Risk Assessment Procedures.
  • Fraud Risk Factors
    • Examples of Fraud Risk Factors.
    • Auditor's Considerations of Fraud Risk Factors.
    • Presumption of Revenue Recognition as a Fraud Risk.
    • Consideration of Material Noncompliance Due to Fraud.
    • Auditor's Response to Fraud Risk Factors.
• 407 THE UNDERSTANDING OF INTERNAL CONTROL
  • Components of Internal Control
  • Nature of the Auditor's Understanding
  • Extent of the Auditor's Understanding
  • Understanding Controls Related to Significant Risks
  • Using the Results of the Understanding of Internal Control
  • Considering Control Objectives and Key Controls
    • Key Controls.
  • Effect of Information Technology (IT) on Internal Control
    • Considering IT Risks.
    • Other Considerations.
    • Considering Whether Specialized IT Skills Are Needed to Understand Internal Control.
  • Documentation
  • Control Environment
    • What Is the Control Environment?
    • Risk Assessment Procedures and Factors to Consider.
    • Documentation of the Control Environment.
  • Risk Assessment
    • The Entity's Fraud Risk Assessment and Monitoring.
    • Risk Assessment Procedures and Factors to Consider.
    • Documentation of the Client's Risk Assessment Process.
  • Information and Communication
    • Information System.
    • Communication.
    • Documentation of the Understanding of Information and Communication.
  • Monitoring
    • Documentation of the Client's Monitoring Process.
  • Control Activities
    • Obtaining an Understanding of Control Activities.
    • Documentation of Control Activities.
  • Understanding Controls Related to Significant Risks
  • Test of Controls
  • Internal Controls, Service Organizations, Management Agents, and Audit Strategy
    • HUD-assisted Projects with a Management Agent.
  • Understanding of Controls over HUD Programs
• 408 AUDIT PLANNING DECISIONS AND JUDGMENTS
  • Audit Risk and Materiality are Considered Together
  • Determining Materiality at the Financial Statement Level
    • Government Auditing Standards Requirements.
    • Quantifying Planning Materiality.
    • Benchmarks.
    • Selecting a Percentage.
    • Determining Materiality for Particular Items of Lesser Amounts.
    • Reconsider Materiality Throughout the Audit.
  • Determining Tolerable Misstatement
    • Determining Individually Significant Dollar Items.
    • Trivial Misstatements.
  • Assessing Risks of Material Misstatement at the Financial Statement Level
    • Responding to Risks at the Financial Statement Level.
    • The Audit Risk Model.
    • Risk of Material Misstatement.
    • Relevant Assertions.
  • Assessing the Risk of Material Misstatement at the Relevant Assertion Level
    • Determining Significant Audit Areas.
    • Documenting Audit Risk Considerations.
  • Risks in Audits of HUD-assisted Projects
  • Assessment of Audit Risk in a HUD Audit
    • Components of Audit Risk.
    • Documenting the Risk of Material Noncompliance Assessment.
  • Determining Materiality in the Compliance Audit of HUD Programs
    • Materiality for Purposes of Assessing Compliance with Specific Requirements.
    • Determining Materiality for the Compliance Audit.
    • Determining Tolerable Noncompliance.
    • Determining Individually Significant Amounts.
    • Using Tolerable Noncompliance.
  • Establishing an Overall Audit Strategy
    • Timing of Developing the Audit Strategy.
    • Overall Timing of the Engagement.
    • Communicating with Those Charged with Governance.
    • Documentation.
• 409 AUDIT SAMPLING
  • Determining Audit Sampling Applications
  • Sampling Approaches and Methods
    • Balance Testing.
    • Transaction Testing.
  • Designing Tests of Transactions Using Audit Sampling
    • Planning.
    • Sample Selection.
    • Evaluation.
  • Documentation of Transaction Testing
• 410 DETAILED AUDIT PLANS AND WORKPAPERS--ORGANIZATION AND STRUCTURE
  • Overall Aspects of Audit Programs
    • Assertions.
    • Audit Objectives.
    • Audit Procedures.
  • Determining the Audit Approach
    • Limited Procedures Approach.
    • Basic and Extended Approaches.
    • Documenting the Response.
  • Compliance Audit Programs
    • For-profit HUD Entities.
    • Nonprofit HUD Entities.
  • Audit Documentation
    • Support for Auditor's Report.
    • Basic Requirements for Content.
    • Government Auditing Standards Requirements for Access to Audit Documentation.
    • Common Documentation Deficiencies.
  • Other Audit Documentation Considerations
    • Retention.
    • Ensuring the Integrity of Workpapers.
  • Loss of Client Records or Audit Documentation
    • GAO Guidance for Situations in Which the Client's Records or Supporting Documents Are Lost or Destroyed.
    • GAO Guidance for Situations in Which the Auditor's Documentation Is Lost or Destroyed.
    • AICPA Guidance.
• 411 SPECIAL PLANNING CONSIDERATIONS IN INITIAL ENGAGEMENTS
  • Audit of a Previously Audited HUD Project
  • Audits of Financial Statements Previously Audited (Reaudits)
    • Communications with the Predecessor Auditor.
    • Reliance on the Work of the Predecessor.
    • Providing Access to Workpapers in a Reaudit Situation.
• 412 ENGAGEMENT ADMINISTRATION FORMS AND AUDIT PROGRAMS

CHAPTER 5: PERFORMING SUBSTANTIVE PROCEDURES

• 500 INTRODUCTION
  • Introduction
  • Authoritative Literature
  • Substantive Procedures Required in Every Audit
    • Considering the Sufficiency and Appropriateness of Audit Evidence.
  • Choosing between Analytical Procedures and Substantive Tests of Details
• 501 TESTS OF DETAILS
  • Confusion about Tests of Details of Transactions
  • Required Documentation
• 502 SUBSTANTIVE ANALYTICAL PROCEDURES
  • What Are Analytical Procedures?
  • Designing Analytical Procedures
    • Precision of Expectation.
    • Evaluating the Results of Analytical Procedures.
  • Limitations of Analytical Procedures
  • Required Documentation
  • Practice Aids
• 503 PERFORMING SUBSTANTIVE AUDIT PROCEDURES FOR HUD ENTITIES
  • General Considerations
  • Cash and Cash Equivalents
    • Confirmation of Accounts.
    • Commingled Cash.
    • Uninsured Balances.
    • Practice Aids.
  • Prepaids, Deferred Charges, Intangibles, and Other Assets
  • Receivables and Revenue
    • Receivables Confirmation.
    • Revenues.
  • Investments and Derivatives
    • Investments.
    • Derivatives.
  • Property
    • Depreciation.
  • Accounts Payable, Accrued Liabilities, and Other Liabilities
    • Accounts Payable and Accruals.
    • Search for Unrecorded Liabilities.
  • Debt and Related Liabilities and Capital Advances
  • Income Taxes
  • Equity
    • Replacement Reserves.
    • Residual Receipts.
    • Distributions.
  • Evaluating Impairment
  • Income, Operating Expenses, and Major Repair and Replacement Expenditures
    • Operating Expenses.
    • Repair and Replacement Expenditures.
    • Payroll and Related Liabilities.

CHAPTER 6: CONCLUDING THE AUDIT

• 600 INTRODUCTION
• 601 COMMITMENTS AND CONTINGENCIES
  • Audit Procedures
  • Legal Representation Letter
    • Content of the Letter.
    • Evaluating Lawyers' Responses.
  • Environmental Remediation Liabilities
    • Accounting Standards.
    • Audit Procedures.
    • Auditing the Estimated Liability.
    • Applicability to HUD Project Owners.
  • Risks and Uncertainties
    • Certain Significant Estimates.
    • Current Vulnerability Resulting from Certain Concentrations.
    • Wording the Disclosure.
    • Reporting Issues.
• 602 ACCOUNTING ESTIMATES AND FAIR VALUE
  • Auditing Accounting Estimates
  • Auditing Fair Value Measurements and Disclosures
    • Accounting and Disclosure Requirements.
    • Auditing Fair Value Measurements and Disclosures.
• 603 SUBSEQUENT EVENTS REVIEW
  • FASB Pronouncement on Subsequent Events
  • Timing
    • Subsequent Events Occurring after the Date of the Report.
• 604 RELATED PARTIES
  • Audit Procedures
    • Related-party Transactions and Fraud.
  • Disclosures
• 605 GOING CONCERN CONSIDERATIONS
  • Conditions and Events
  • Audit Procedures
  • Documentation Requirements
  • Proposed SFAS on Going Concern
  • Practice Aids
• 606 MANAGEMENT REPRESENTATION LETTER
  • Content of the Letter
  • Audit Adjustments
  • Materiality
  • Signatures and Date on the Letter
  • Periods Covered by the Letter
  • Illustrative Letters
    • Updating Letters.
• 607 CONSIDERING THE ACCUMULATED RESULTS OF AUDIT PROCEDURES
  • Reevaluating Risk Assessments
  • Evaluating the Existence of Fraud
    • Fraud Risk Assessment Is a Cumulative Process.
    • Required Procedures.
  • Evaluating Significant Unusual Transactions
  • Considering the Application of Significant Accounting Principles for Bias
  • Documentation Requirements
• 608 ANALYTICAL PROCEDURES
  • Purposes of Analytical Procedures
• 609 REVIEW OF WORKPAPERS
  • Engagement Quality Control Review
    • Establishing Criteria for Engagement Quality Control Reviews.
    • Engagement Quality Control Reviewers.
    • Performing Engagement Quality Control Reviews.
    • Documenting Engagement Quality Control Review.
  • Timing of Review of Workpapers
• 610 SUMMARIZATION AND EVALUATION
  • Categories for Evaluation
  • Audit Differences
    • Known and Likely Misstatements.
    • Communication of Misstatements to Management.
  • Evaluating Audit Differences
    • Trivial Misstatements.
    • Evaluating Estimates.
    • Different Levels for Different Amounts, Subtotals, or Totals.
    • Overall Evaluation.
  • Evaluating Results of Compliance Tests
    • Projecting Questioned Costs and Expanding Test Work.
    • Considering the Effect of Noncompliance on the Financial Statements.
    • Summarizing Noncompliance Findings.
    • Evaluating Noncompliance Materiality.
  • Evaluating the Existence of Fraud
  • Documentation Requirements
    • Summary of Audit Differences.
  • Evaluating Overall Materiality
  • Consultation on Technical Issues and Differences of Opinion
• 611 DRAFTING FINANCIAL STATEMENTS AND THE AUDITOR'S REPORT
  • Financial Statements
    • Government Auditing Standards Requirements.
  • Notes to the Financial Statements
  • Auditor's Reports
  • Report Release Date
• 612 AUDITOR'S REPORT ON FINANCIAL STATEMENTS PREPARED AS PART OF A COST CERTIFICATION AUDIT OF A HUD-ASSISTED PROJECT
• 613 CLIENT COMMUNICATIONS
  • Communicating Internal Control Related Matters
    • Definitions.
    • Examples of Deficiencies.
    • Identifying Control Deficiencies.
    • Evaluating Control Deficiencies.
    • Aggregation of Deficiencies.
    • Mitigating Effects of Compensating Controls.
    • Qualitative Considerations.
    • Prudent Official Test.
    • Control Deficiency Evaluation and Aggregation Worksheet.
    • Control Deficiency Comment and Management Point Development Worksheet.
    • Can the Auditor Draft the Financial Statements?
    • Communication Requirements.
    • Reporting When There Are No Significant Deficiencies.
    • Reporting When There Are No Material Weaknesses.
    • Responsibilities under the Yellow Book.
    • Illustrative Communications.
  • Communication with Those Charged with Governance
    • Responsibilities under GAAS.
    • Planned Scope and Timing of Audit.
    • Significant Audit Findings.
    • Documentation of Communications.
  • Fraud and Illegal Acts
    • Communications about Possible Fraud or Illegal Acts.
  • Communication about the Entity's Ability to Continue as a Going Concern
• 614 ENGAGEMENT SUMMARY MEMORANDUM (ESM)
• 615 WORKPAPER FINALIZATION AND RETENTION
• 616 AUDIT PROGRAM

CHAPTER 7: AUDITING COMPLIANCE WITH LAWS AND REGULATIONS

• 700 INTRODUCTION
  • Tests of Compliance
  • Tests of Controls over Compliance
  • Sampling
  • Authoritative Literature
  • July 2008 Revisions to the HUD Audit Guide
  • Types of Projects Subject to the Compliance Requirements in Chapter 3 of Consolidated Audit Guide for Audits of HUD Programs
  • Should Nonprofit Recipients of HUD Assistance Follow the HUD Audit Guide or OMB Circular A-133?
  • Determination of Major Programs
    • For-profit Entities.
    • Nonprofit Entities.
• 701 THE CURRENT COMPLIANCE ENVIRONMENT
  • Concerns with Substandard Audits
    • HUD Office of Inspector General.
    • Findings on Sampling from the Single Audit Quality Study.
    • Deficiencies in HUD Audits.
  • Creative Compensation Arrangements Involving Identity-of-interest Entities
  • Increased Participation in HUD Programs by Nonprofit Entities
  • Trend Toward Greater CPA Involvement in the Detection of Noncompliance
  • Program Fraud Alerts
  • Executive Order 13166, "Improving Access to Services for Persons With Limited English Proficiency"
  • Legislative Change Affecting Multifamily Housing Programs
  • Considerations for the American Recovery and Reinvestment Act of 2009
    • Program-specific Requirements.
    • Recovery Act Reporting Requirements.
    • Internal Control Considerations.
    • Further Recovery Act Developments.
• 702 BASIC CONCEPTS OF COMPLIANCE AUDITING
  • Responsibility for Laws and Regulations in All Audits
  • Responsibility for Laws and Regulations and Other Matters under Government Auditing Standards
    • Abuse.
    • Auditors' Responsibilities Relating to Abuse.
    • Material Abuse Relating to the Financial Statements or Other Financial Data.
    • Abuse Relating to Federal Awards.
    • Reporting Fraud, Illegal Acts, Violations of Provisions of Contract or Grant Agreements, or Abuse.
    • Other Considerations.
    • Presentation of Findings.
  • Responsibilities Under the HUD Audit Guide
    • Responsibility Related to Major Programs.
    • Responsibility Related to Nonmajor Programs.
    • Responsibility Related to Fair Housing and Non-Discrimination Requirements.
  • Tests of Compliance versus Other Audit Tests
  • Transaction-related versus Program-related Requirements
    • Transaction-related Requirements.
    • Program-related Requirements.
  • Relationship of Compliance Tests to Internal Controls
  • Relating Compliance Audit Procedures to Financial Audit Procedures
• 703 IDENTIFYING COMPLIANCE REQUIREMENTS
  • Consolidated Audit Guide for Audits of HUD Programs
  • Enabling Statutes, Appropriations Acts, and Implementing Regulations
  • Contracts and Agreements
  • HUD Handbooks and Interim Notices
    • Update of HUD Handbook 4350.3.
  • Identifying the Requirements of Funding Sources Other Than HUD
• 704 TESTS OF CONTROLS OVER HUD PROGRAMS
  • Gaining an Understanding of Internal Control and Assessing Control Risk
  • Tests of Controls Pertinent to HUD Programs
  • When to Test Controls
  • Performing Tests of the Operating Effectiveness of Controls
  • Multi-purpose Tests
  • Sampling in Tests of Controls
• 705 AUDITING COMPLIANCE REQUIREMENTS
  • Selecting Transactions to Test
  • Group Project-based Sampling
    • Applicable Compliance Areas.
    • Conditions for Use.
    • Group Project-based Sample Selection.
    • Documentation Requirements.
    • Impact on HUD Reporting Requirements.
  • Auditing Compliance with Laws and Regulations
• 706 A WORD ABOUT THE HUD AUDIT GUIDE'S COMPLIANCE REQUIREMENTS AND SUGGESTED AUDIT PROCEDURES
• 707 SPECIFIC COMPLIANCE REQUIREMENTS APPLICABLE TO HUD-ASSISTED PROJECTS
  • Specific Compliance Requirements
  • Federal Financial Reports
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Fair Housing and Non-Discrimination
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Mortgage Status
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Replacement Reserve
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Residual Receipts
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Distributions to Owners
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Equity Skimming
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Cash Receipts
    • Compliance Requirements.
    • Compliance Audit Procedures.
  • Cash Disbursements
    • Compliance Audit Procedures.
  • Tenant Application, Eligibility, and Recertification
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Units Leased to Extremely Low-income Families
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Tenant Security Deposits
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Management Functions
    • Compliance Requirement.
    • Compliance Procedures.
  • Unauthorized Change of Ownership/Acquisition of Liabilities
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Unauthorized Loans of Project Funds
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Excess Income
    • Compliance Requirement.
    • Compliance Audit Procedures.
  • Leased Nursing Homes
    • Compliance Audit Procedures.
  • Mark-to-Market Program (M2M)
    • Compliance Audit Procedures.
  • Section 236 Decoupling Projects
    • Compliance Audit Procedures.
• 708 EVALUATING RESULTS OF COMPLIANCE TESTS
  • Evaluating the Results of Nonsampling Tests of Controls
  • Evaluating the Results of Control Tests Using Sampling
  • Evaluating the Results of Tests of Compliance with Program Requirements
  • Evaluating the Results of Compliance Tests Using Sampling
• 709 REPORTING ON COMPLIANCE
• 710 REPORTING QUESTIONED COSTS
• 711 REPORTING ILLEGAL ACTS
• 712 AUDIT SAMPLING IN TESTS OF CONTROLS OVER COMPLIANCE
  • Objective of the Tests
  • Purpose of the Tests
  • Multi-purpose Tests
  • Identifying Controls
  • Defining the Population
  • Determining the Sample Size
  • Practical Guidance on Sample Size
  • Selecting the Sample
  • Other Considerations in Control Testing
  • Evaluating Sample Results of Tests of Controls
  • Documenting Samples for Tests of Controls
• 713 AUDIT SAMPLING IN SUBSTANTIVE TESTS OF COMPLIANCE WITH LAWS AND REGULATIONS
  • Compliance Testing of For-profit HUD Entities
    • Required Use of Attribute Sampling.
  • Determining the Test Objective and Defining the Population
  • Determining Sample Size
    • Minimum Sample Sizes.
    • Workpaper Documentation.
  • Evaluating the Sample Results of Substantive Tests of Compliance
    • Projecting the Noncompliance.
  • Considering Sampling Risk
    • Unacceptable Sampling Risk.
  • Considering Qualitative Characteristics
  • Evaluating Sample Results
  • Documenting the Substantive Sampling Application

CHAPTER 8: AUDITOR'S REPORTS AND OTHER COMMUNICATIONS

• 800 INTRODUCTION
  • What This Chapter Covers
    • Auditor's Reports.
    • Client-prepared Communications.
  • Authoritative Literature
    • General.
    • Specific--For-profit Entities.
    • Specific--Nonprofit Entities.
  • References to Country of Origin
  • Dating of Auditors' Reports
  • Addressing the Report
• 801 STANDARD REPORT ON BASIC GAAP FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION REQUIRED BY HUD FOR FOR-PROFIT ENTITIES
  • References to Government Auditing Standards
  • References to Separately Issued Internal Control and Compliance Reports
  • Communicating Significant Matters
  • Confidential or Sensitive Information
  • Reporting on Restated Financial Statements
    • GAAS Requirements.
    • Government Auditing Standards Requirements.
  • Standard Report
  • Comparative Financial Statements
    • Basic Financial Statements.
    • Supplementary Information.
    • Standard Report on Comparative Financial Statements.
• 802 MODIFICATIONS OF THE STANDARD REPORT
  • GAAP Departures
  • Scope Limitations
  • Going Concern Uncertainties
    • Assessment of Audit Procedures.
    • Conditions and Events.
    • Consideration of Management Plans.
    • Procedures When There Is Substantial Doubt.
    • Reporting When There Are Going Concern Uncertainties.
  • Required Supplementary Information Omitted
• 803 CASH AND INCOME TAX BASIS FINANCIAL STATEMENTS
  • Standard Report on Cash Basis Financial Statements
  • Standard Report on Tax Basis Financial Statements
• 804 REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
  • Introduction
    • Combined Report on Internal Control.
    • HUD and Yellow Book Internal Control Reports versus AICPA Reporting Standards.
  • Reporting on Internal Control
    • GAO Interim Guidance on Reporting on Internal Control over Financial Reporting under SAS No. 115.
    • Considerations for Implementing SAS No. 115 in HUD Audits.
  • Reporting Views of Responsible Officials
  • Reporting on Other Matters
  • What Are Considered to Be "Significant Deficiencies" in HUD Audit Engagements?
  • Material Weaknesses
  • Report with No Significant Deficiencies or Material Weaknesses
  • Report with Significant Deficiencies but No Material Weaknesses
  • Report with Significant Deficiencies When Some Are Material Weaknesses
  • Report with Significant Deficiencies--Entity Has No Major Programs
• 805 REPORTS ON COMPLIANCE WITH LAWS AND REGULATIONS FOR FOR-PROFIT ENTITIES
  • Reports on Compliance Required by the Consolidated Audit Guide for Audits of HUD Programs
  • Reports on Compliance with Specific Requirements Applicable to Major HUD Programs
    • Examples of Major Programs.
    • Projects That Receive Assistance under Both Section 8 and a HUD Loan Program.
    • Unqualified Opinion on Compliance with Specific Requirements Applicable to Major HUD Programs.
    • Opinion on Compliance with Specific Requirements Applicable to Major HUD Programs Qualified because of a Scope Limitation.
    • Disclaimer of Opinion on Compliance with Specific Requirements Applicable to Major HUD Programs because of a Scope Limitation.
    • Qualified Opinion because of Material Noncompliance with Specific Requirements Applicable to Major HUD Programs.
    • Adverse Opinion because of Material Noncompliance with Specific Requirements Applicable to Major HUD Programs.
  • Reports on Compliance with Specific Requirements Applicable to Nonmajor HUD Program Transactions
  • Reports on Compliance with Requirements Applicable to Fair Housing and Non-Discrimination
    • Report on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--No Material Noncompliance Identified.
    • Report on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--Material Noncompliance Identified.
    • Report on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--Scope Limitation.
  • Reports on Compliance with Laws and Regulations Required by the GAO's Government Auditing Standards
    • Satisfying the Yellow Book's Compliance Reporting Requirements.
• 806 SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR FOR-PROFIT ENTITIES
  • Findings
    • Reporting Requirement.
  • References to HUD Handbooks
  • Questioned Costs
    • Material and Immaterial Questioned Costs.
• 807 AUDITEE'S COMMENTS ON AUDIT RESOLUTION MATTERS RELATING TO HUD PROGRAMS FOR FOR-PROFIT ENTITIES
• 808 REPORTING ILLEGAL ACTS AND ABUSE
• 809 MANAGEMENT LETTERS
• 810 CORRECTIVE ACTION PLAN FOR FOR-PROFIT ENTITIES
• 811 CERTIFICATIONS OF FINANCIAL STATEMENTS BY PROJECT OWNERS AND MANAGING AGENTS
  • Project Owner and Management Agent Certifications
  • Project Owner's Certification
  • Management Agent's Certification
• 812 SUBMITTING THE FINANCIAL REPORT TO HUD
  • Electronic Submission Process
    • Submission Deadline.
    • Overview.
    • Registration.
    • Submission Identification.
    • Data Entry.
    • Validation.
    • Certification by an Independent CPA and Submission.
  • Attestation Engagement Standards
    • Conditions for Engagement Acceptance.
    • Engagement Letters.
    • CPA's Responsibilities.
    • Materiality.
    • Representation Letter.
    • Documentation.
    • Yellow Book Attestation Standards.
    • Yellow Book Attestation Field Work Standards.
    • Yellow Book Attestation Reporting Standards.
    • Agreed-upon Procedure Report.
  • Transmittal Letter Accompanying the Financial Report
  • Organizing the Contents of the Financial Report
• 813 AUDITOR'S REPORT ON FINANCIAL STATEMENTS PREPARED AS PART OF A COST CERTIFICATION AUDIT
  • HUD Audit Guide
  • Practice Aid
  • Should the Mortgagor's Certificate of Actual Cost Be Presented as a Basic Financial Statement or as Additional Information?
  • Reporting on Regulatory Basis Financial Statements
  • Reporting on Regulatory Basis Financial Statements Prepared as Part of a Cost Certification Audit
• 814 HUD AUDITS OF NONPROFIT ENTITIES
  • Should Nonprofit Recipients of HUD Assistance Follow the HUD Audit Guide or OMB Circular A-133?
  • Audit Threshold
    • Federal Awards Expended.
    • Program-specific Audits.
  • Cognizant/Oversight Agency for Audit
  • Major Program Determination
    • American Recovery and Reinvestment Act of 2009.
    • Single Audit Risk-based Approach.
    • American Recovery and Reinvestment Act Consideration.
    • Percentage of Coverage Audited Rule and Low-risk Auditee Exception.
  • Internal Control Considerations
  • Compliance Requirements
    • Updates.
    • Programs Included in the Compliance Supplement.
    • Programs Not Included in the Compliance Supplement.
    • American Recovery and Reinvestment Act of 2009 Consideration.
  • Major versus Nonmajor Program Testing
  • Auditor's Reports
    • SAS Nos. 112 and 115 Considerations for Single Audits.
    • AICPA Report Examples.
    • GAS/A-133 AICPA Audit Guide.
    • Standard Report on Financial Statements.
    • Report on Internal Control over Financial Reporting and on Compliance and Other Matters.
    • OMB Circular A-133 Report on Major Program Compliance and Internal Control over Compliance.
  • Schedule of Findings and Questioned Costs
    • What Is Included in the Schedule of Findings and Questioned Costs?
    • Findings Relating to the Financial Statements.
    • Findings Relating to Both the Financial Statements and Federal Awards.
    • Findings Required to Be Reported.
    • Preparing the Schedule.
    • Views of Responsible Officials.
  • Financial Statements and Schedules
  • Report Submission
    • Due Date.
    • Data Collection Form.
    • Reporting Package.
    • HUD Reporting Package.
• 815 APPLICABILITY OF CHAPTER 8 OF THIS GUIDE TO NONSUPERVISED MORTGAGEES, LOAN CORRESPONDENTS, AND LENDERS
• APPENDIX 8A: Reports on Financial Statements--For-profit Entity
  • APPENDIX 8A-1: Standard Report on the Financial Statements and Supplementary Information for a Single Year--For-profit Entity
  • APPENDIX 8A-2: Standard Report on Comparative Financial Statements and Supplementary Information for the Current Year--For-profit Entity
• APPENDIX 8B: Reporting GAAP Departures and Other Report Modifications
  • APPENDIX 8B-1: Report Modified for a GAAP Departure
  • APPENDIX 8B-2: Report Modified for a Going Concern Uncertainty
• APPENDIX 8C: Reports on Other Comprehensive Bases of Accounting
  • APPENDIX 8C-1: Standard Report on Cash Basis Financial Statements
  • APPENDIX 8C-2: Standard Report on Tax Basis Financial Statements
• APPENDIX 8D: Reports on Internal Control over Financial Reporting and Internal Control over Compliance--For-profit Entity
  • APPENDIX 8D-1: Combined Internal Control Report with No Significant Deficiencies or Material Weaknesses--For-profit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8D-2: Combined Internal Control Report with Significant Deficiencies But No Material Weaknesses--For-profit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8D-3: Combined Internal Control Report with Significant Deficiencies When Some are Material Weaknesses--For-profit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8D-4: Combined Internal Control Report with Significant Deficiencies But No Material Weaknesses--No Major Programs--For-profit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8D-5: Combined Internal Control Report with No Significant Deficiencies or Material Weaknesses--For-profit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8D-6: Combined Internal Control Report with Significant Deficiencies But No Material Weaknesses--For-profit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8D-7: Combined Internal Control Report with Significant Deficiencies When Some are Material Weaknesses--For-profit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8D-8: Combined Internal Control Report with Significant Deficiencies But No Material Weaknesses-No Major Programs--For-profit Entity (used after the implementation of SAS No. 115)
• APPENDIX 8E: Reports on Compliance with Specific Requirements Applicable to Major HUD Programs--For-profit Entity
  • APPENDIX 8E-1: Unqualified Opinion on Compliance with Specific Requirements Applicable to Major HUD Programs--For-profit Entity
  • APPENDIX 8E-2: Qualified Opinion on Compliance with Specific Requirements Applicable to Major HUD Programs because of a Scope Limitation--For-profit Entity
  • APPENDIX 8E-3: Disclaimer of Opinion on Compliance with Specific Requirements Applicable to Major HUD Programs because of a Scope Limitation--For-profit Entity
  • APPENDIX 8E-4: Qualified Opinion because of Material Noncompliance with Specific Requirements Applicable to Major HUD Programs--For-profit Entity
  • APPENDIX 8E-5: Adverse Opinion because of Material Noncompliance with Specific Requirements Applicable to Major HUD Programs--For-profit Entity
• APPENDIX 8F: Report on Compliance with Specific Requirements Applicable to Nonmajor HUD Programs--For-profit Entity
  • APPENDIX 8F-1: Report on Compliance with Specific Requirements Applicable to Nonmajor HUD Programs--For-profit Entity
• APPENDIX 8G: Reports on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--For-profit Entity
  • APPENDIX 8G-1: Report on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--No Material Noncompliance--For-profit Entity
  • APPENDIX 8G-2: Report on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--Material Noncompliance--For-profit Entity
  • APPENDIX 8G-3: Report on Compliance with Specific Requirements Applicable to Fair Housing and Non-Discrimination--Scope Limitation--For-profit Entity
• APPENDIX 8H: Report on Compliance with Laws and Regulations Required by Government Auditing Standards--For-profit Entity
  • APPENDIX 8H-1: Report on Compliance with Laws and Regulations Required by Government Auditing Standards--For-profit Entity
• APPENDIX 8I: Reports on Agreed-upon Procedures for Electronic Submission
  • APPENDIX 8I-1: Reports on Agreed-upon Procedures for Electronic Submission--For-profit Entity
  • APPENDIX 8I-2: Reports on Agreed-upon Procedures for Electronic Submission--Nonprofit Entity
• APPENDIX 8J: Report on Cost Certification Audit
  • APPENDIX 8J-1: Report on Cost Certification Audit
• APPENDIX 8K: Report on Financial Statements--Nonprofit Entity
  • APPENDIX 8K-1: Report on Financial Statements--Nonprofit Entity
• APPENDIX 8L: Reports on Internal Control over Financial Reporting and on Compliance and Other Matters in Accordance with Government Auditing Standards--Nonprofit Entity
  • APPENDIX 8L-1: Government Auditing Standards Report on Internal Control over Financial Reporting and Compliance and Other Matters--with No Reportable Noncompliance and No Significant Deficiencies or Material Weaknesses--Nonprofit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8L-2: Government Auditing Standards Report on Internal Control over Financial Reporting and Compliance and Other Matters--with Reportable Noncompliance and Significant Deficiencies But No Material Weaknesses--Nonprofit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8L-3: Government Auditing Standards Report on Internal Control over Financial Reporting and Compliance and Other Matters--with Reportable Noncompliance and Significant Deficiencies with Material Weaknesses--Nonprofit Entity (used for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8L-4: Government Auditing Standards Report on Internal Control Over Financial Reporting and Compliance and Other Matters--with No Material Weaknesses, Significant Deficiencies, or Reportable Instances of Noncompliance or Other Matters Identified--Nonprofit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8L-5: Government Auditing Standards Report on Internal Control over Financial Reporting and Compliance and Other Matters--with Significant Deficiencies and Reportable Instances of Noncompliance, and Other Matters Identified, But No Material Weaknesses Identified--Nonprofit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8L-6: Government Auditing Standards Report on Internal Control over Financial Reporting and Compliance and Other Matters--with Material Weaknesses, Significant Deficiencies, and Reportable Instances of Noncompliance, and Other Matters Identified--Nonprofit Entity (used after the implementation of SAS No. 115)
• APPENDIX 8M: Reports on Compliance with Specific Requirements Applicable to Major Programs and Internal Control over Compliance Required by OMB Circular A-133--Nonprofit Entity
  • APPENDIX 8M-1: OMB Circular A-133 Report on Major Program Compliance and Internal Control--Unqualified Compliance Opinion and No Significant Deficiencies or Material Weaknesses--Nonprofit Entity (use for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8M-2: OMB Circular A-133 Report on Major Program Compliance and Internal Control--Qualified Compliance Opinion and Significant Deficiencies But No Material Weaknesses--Nonprofit Entity (use for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8M-3: OMB Circular A-133 Report on Major Program Compliance and Internal Control--Qualified Compliance Opinion and Significant Deficiencies with Material Weaknesses--Nonprofit Entity (use for years ending before December 15, 2009--before the implementation of SAS No. 115)
  • APPENDIX 8M-4: OMB Circular A-133 Report on Major Program Compliance and Internal Control--Unqualified Compliance Opinion and No Significant Deficiencies or Material Weaknesses--Nonprofit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8M-5: OMB Circular A-133 Report on Major Program Compliance and Internal Control--Qualified Compliance Opinion and Significant Deficiencies But No Material Weaknesses--Nonprofit Entity (used after the implementation of SAS No. 115)
  • APPENDIX 8M-6: OMB Circular A-133 Report on Major Program Compliance and Internal Control--Qualified Compliance Opinion and Significant Deficiencies with Material Weaknesses--Nonprofit Entity (used after the implementation of SAS No. 115)

CHAPTER 9: COMPLIANCE AUDITS OF NONSUPERVISED MORTGAGEES, LOAN CORRESPONDENTS, AND LENDERS

• 900 INTRODUCTION
  • Scope of This Chapter
  • Nonsupervised Mortgagees versus Supervised Mortgagees
  • Loan Correspondents
  • Title II Program Participants
  • Title I Program Participants
  • FHA Approved Mortgagees
  • Definitions
  • Audit Planning Consideration
  • Reporting Considerations
    • General Reporting Considerations.
    • Electronic Submission.
    • A Word of Caution for Title I Clients.
    • Applicability of Chapter 8 of this Guide to Nonsupervised Mortgagees, Loan Correspondents, and Lenders.
  • Regulatory Developments
  • FHA/HUD Violations
• 901 IDENTIFYING COMPLIANCE REQUIREMENTS
  • HUD Audit Guide
    • Title II Loan Correspondents.
  • Statutes and Implementing Regulations
  • HUD Handbooks
    • Multifamily Programs.
    • Single Family Programs.
    • Title I Programs.
  • Mortgagee Letters
  • Title I Letters
• 902 A WORD ABOUT THE HUD AUDIT GUIDE'S COMPLIANCE REQUIREMENTS AND SUGGESTED PROCEDURES
• 903 SPECIFIC REQUIREMENTS APPLICABLE TO TITLE II NONSUPERVISED MORTGAGEES AND LOAN CORRESPONDENTS
  • Quality Control Plan
    • Auditor Considerations.
  • Sponsor Responsibility over Title II Loan Correspondents
  • Branch Office Operations
  • Loan Origination
    • Loan Underwriting--Single Family Loans.
  • Loan Settlement
  • Loan Servicing
    • Delinquent and Defaulted Loans.
    • Unallowable Charges.
    • Mortgage Insurance Premiums.
    • Insurance Claims.
    • Home Equity Conversions Mortgages.
  • Escrow Accounts
  • Section 235 Assistance Payments
  • Federal Financial and Activity Reports
  • Kickbacks
  • Mortgagee Approval Requirements
    • Minimum Net Worth Requirement.
    • Liquid Asset Requirement.
    • FHA Approved Lenders.
    • Fidelity Bond Coverage and Errors and Omissions Coverage.
• 904 SPECIFIC REQUIREMENTS APPLICABLE TO TITLE I NONSUPERVISED LENDERS AND LOAN CORRESPONDENTS
  • HUD Handbooks
  • Specific Requirements Applicable to Title I Nonsupervised Lenders and Loan Correspondents
  • Loan Origination
  • Loan Disbursement
    • Borrower Eligibility and Use of Loan Proceeds.
    • Loan Documentation.
  • Eligible Fees and Charges

CHAPTER 10: LOW-INCOME HOUSING TAX CREDIT PROJECTS

• 1000 INTRODUCTION
  • Current Developments in Recently Enacted Legislation
    • The American Recovery and Reinvestment Act of 2009.
    • Tax Credit Assistance Program (TCAP).
    • H.R. 5140, Economic Stimulus Act of 2008.
    • H.R. 3221, American Housing Rescue and Foreclosure Prevention Act.
    • H.R. 3648, Mortgage Forgiveness Debt Relief Act (Debt Relief Act).
    • H.R. 4440, Gulf Opportunity (GO) Zone Act of 2005 (GO Zone Act).
    • Notice 2007-66, Relief From Certain Low-Income Housing Credit Requirements Due to Katrina.
    • Revenue Procedure 2007-54.
• 1001 PROGRAM OVERVIEW AND ADMINISTRATION
  • Legal Authorization
  • Participants
  • Credit Allocations and Bond Projects
• 1002 PROJECT REQUIREMENTS AND TAX CREDIT CALCULATION
  • Minimum Project Requirements
  • Tax Credit Calculation
  • LIHTC Resources
  • Additional Requirements
    • TCAP Compliance.
    • HOME Program.
    • Exchange of "Unused" Tax Credits.
    • Additional State Agency Requirements.
• 1003 ROLES FOR AUDITORS IN THE LIHTC PROGRAM
  • Attest Services for Financial Projections
  • Cost Certifications
  • Ten-percent Carryover Certifications
  • Attest Service for the 50% Test
  • Partnership Tax Return
  • Cash Flow Verification
• 1004 COMPLIANCE ISSUES RELATED TO THE INITIAL COMPLETION OF THE LIHTC PROJECT
  • Key Threshold Tests for Bond Cap Projects
    • Minimum Expenditure Test--IRC Section 147(d).
    • The 95% Good Costs/Bad Costs Test--IRC Section 142(a).
    • 50% Test--IRC Section 42(h)(4)(B).
  • Other Key Threshold Tests
    • Residential Rental Property Test--IRC Section 168(e)(2).
    • Minimum Rehabilitation Expenditures Test--IRC Section 42(e)(3).
  • Eligible Basis of Project
    • Land.
    • Demolition.
    • Legal Costs.
    • Existing Improvements and Property and Equipment.
    • Rehabilitation.
    • Relocation Expenses.
    • New Construction Costs.
    • Architectural Fees for Design and Supervision.
    • Construction Interest, Loan, and Related Costs.
    • Permanent Financing.
    • Legal Fees.
    • Reserves.
    • Other Costs.
    • Developer Fees.
  • Adjustments to Eligible Basis
  • State Agency Regulatory Cost Constraints
    • Maximum Development Cost Per Housing Unit Limitation.
    • Developer Fee Limitation.
    • Limitations on Builder Overhead, Profit, and General Requirements.
• 1005 ONGOING COMPLIANCE RESPONSIBILITIES
  • Project Owner Responsibilities
    • Certifications.
    • Record Retention.
  • States' Project Monitoring Responsibility
  • Financial Statement Auditor's Responsibility
• APPENDIX 10A: Cost Certification Audit Report
• APPENDIX 10B: Carryover Allocation Basis Agreed-upon Procedures Report
• APPENDIX 10C: Private Activity Bonds Agreed-upon Procedures Report

AUDIT PROGRAMS--CORE (HUD-AP)

• HUD-AP-1: Audit Program for General Planning Procedures
  • Other Audit Procedures for General Planning Procedures
• HUD-AP-2: Audit Program for General Auditing and Completion Procedures
  • Other Audit Procedures for General Auditing and Completion Procedures
• HUD-AP-3: Audit Program for Minutes, Contracts, Laws, and Regulations
• HUD-AP-4: Audit Program for Cash and Restricted Deposits (Including Interest-bearing Deposits)
• HUD-AP-5: Audit Program for Investments and Derivatives
  • Other Audit Procedures for Investments and Derivatives
• HUD-AP-6: Audit Program for Prepaids, Deferred Charges, Intangibles, and Other Assets
  • Other Audit Procedures for Prepaids, Deferred Charges, Intangibles, and Other Assets
• HUD-AP-7: Audit Program for Receivables and Revenues
  • Other Audit Procedures for Receivables and Revenues
• HUD-AP-8: Audit Program for Property
  • Other Audit Procedures for Property
• HUD-AP-9: Audit Program for Accounts Payable, Accrued Liabilities, and Other Liabilities
  • Other Audit Procedures for Accounts Payable, Accrued Liabilities, and Other Liabilities
• HUD-AP-10: Audit Program for Debt and Related Liabilities and Capital Advances
  • Other Audit Procedures for Debt and Related Liabilities and Capital Advances
• HUD-AP-11: Audit Program for Income Taxes
• HUD-AP-12: Audit Program for Equity
  • Other Audit Procedures for Equity
• HUD-AP-13: Audit Program for Income, Operating Expenses, and Major Repair and Replacement Expenditures
• HUD-AP-14: For-profit Audit Program--Compliance
• HUD-AP-15: Nonprofit Audit Program--Compliance Requirements for Section 202 and Section 811 Programs
• HUD-AP-16: Nonprofit Audit Program--Compliance Requirements for Section 8 Project-based Cluster Programs
• HUD-AP-17: Nonprofit Audit Program--Federal Award Programs Not Included in the Compliance Supplement

AUDIT FIRM POLICIES (HUD-FP)

• HUD-FP-1: Audit Team Members

AUDIT CHECKLISTS AND PRACTICE AIDS

Application of Practice Aids to Engagements

• HUD-CX-1: Planning and Preliminary Engagement Activities
  • HUD-CX-1.1: Engagement Acceptance Form
  • HUD-CX-1.2: Engagement Continuance Form
  • HUD-CX-1.3: ET Interpretation 101-3 Documentation Form
  • HUD-CX-1.4: Effect of Nonaudit Services on Independence--Government Auditing Standards
  • HUD-CX-1.5: Effect of Personal and External Impairments on Independence--Government Auditing Standards
  • HUD-CX-1.6: Continuing Professional Education Documentation Form
  • HUD-CX-1.7: For-profit Entity Compliance Audit Determination and Planning Worksheet
  • HUD-CX-1.8: Nonprofit Single Audit and Major Program Determination Worksheet
  • HUD-CX-1.9: Nonprofit Low-risk Federal Program Determination Worksheet
  • HUD-CX-1.10: Nonprofit High-risk Federal Program Determination Worksheet
• HUD-CX-2: Planning Materiality
  • HUD-CX-2.1: Financial Statement Materiality Worksheet for Planning Purposes
  • HUD-CX-2.2: Nonprofit Planning Materiality--Federal Award Programs
• HUD-CX-3: Understanding the Entity and Identifying Risks
  • HUD-CX-3.1: Understanding the Entity and Identifying Risks
  • HUD-CX-3.2: Engagement Team Discussion
  • HUD-CX-3.3: Fraud Risk Inquiries Form
  • HUD-CX-3.4: Audit Inquiries Summary Form
• HUD-CX-4: Understanding Internal Control
  • HUD-CX-4.1: Understanding the Design and Implementation of Internal Control
  • HUD-CX-4.2: Financial Reporting System Documentation Form
    • HUD-CX-4.2.1: Financial Reporting System Documentation Form--Significant Transaction Classes
    • HUD-CX-4.2.2: Financial Reporting System Documentation Form--IT Environment and General Computer Controls
  • HUD-CX-4.3: Walkthrough Documentation Table
  • HUD-CX-4.4: Compliance Requirements Control Matrix--For-profit Entities
  • HUD-CX-4.5: Compliance Requirements Control Matrix--Nonprofit Entities
• HUD-CX-5: Activities and Entry-level Control Forms
  • HUD-CX-5.1: Entity-level Control Form for Control Environment
  • HUD-CX-5.2: Entity-level Control Form for Risk Assessment
  • HUD-CX-5.3: Entity-level Control Form for Information and Communication
  • HUD-CX-5.4: Entity-level Control Form for Monitoring
  • HUD-CX-5.5: Control Activities Form for General Computer Controls
  • HUD-CX-5.6: Control Activities Form for Financial Close and Reporting
  • HUD-CX-5.7: Control Activities Form for Cash and Restricted Deposits (Including Interest-bearing Deposits)
  • HUD-CX-5.8: Control Activities Form for Investments and Derivatives
  • HUD-CX-5.9: Control Activities Form for Prepaids, Deferred Charges, Intangibles, and Other Assets
  • HUD-CX-5.10: Control Activities Form for Receivables and Revenues
  • HUD-CX-5.11: Control Activities Form for Property
  • HUD-CX-5.12: Control Activities Form for Accounts Payable, Accrued Liabilities, and Other Liabilities
  • HUD-CX-5.13: Control Activities Form for Debt and Related Liabilities and Capital Advances
  • HUD-CX-5.14: Control Activities Form for Income Taxes
  • HUD-CX-5.15: Control Activities Form for Equity
  • HUD-CX-5.16: Control Activities Form for Income, Operating Expenses, and Major Repair and Replacement Expenditures
  • HUD-CX-5.17: Common Control Objectives by Audit Area and Transaction Class
  • HUD-CX-5.18: Compliance Control Activities Form--For-profit Entities
• HUD-CX-6: Identifying Risk
  • HUD-CX-6.1: Entity Risk Factors
  • HUD-CX-6.2: Fraud Risk Factors
• HUD-CX-7: Risk Assessment
  • HUD-CX-7.1: Risk Assessment Summary Form
  • HUD-CX-7.2: Inherent Risk Assessment Form
  • HUD-CX-7.3: Risk of Material Noncompliance Assessment Form--Federal Award Programs
  • HUD-CX-7.4: Inherent Risk Assessment Form--Compliance Requirements
• HUD-CX-8: Planning Substantive Procedures
  • HUD-CX-8.1: Planning Worksheet to Determine Extent of Substantive Procedures
  • HUD-CX-8.2: Sampling Planning and Evaluation Form--Substantive Procedures
  • HUD-CX-8.3: Sampling Worksheet for Testing Account Coding and Classification
  • HUD-CX-8.4: Sampling Form for Group Project-based Samples
  • HUD-CX-8.5: Sampling Worksheet for Compliance Testing
• HUD-CX-9: Analytical Procedures
  • HUD-CX-9.1: Substantive Analytical Procedures Worksheet
  • HUD-CX-9.2: Ratio Analysis Worksheet
• HUD-CX-10: Tests of Controls
  • HUD-CX-10.1: Test of Controls Form--Account Balance or Transaction Class
  • HUD-CX-10.2: Tests of Controls Sampling Planning and Evaluation Form--Account Balance or Transaction Class
  • HUD-CX-10.3: Test of Controls Form--Compliance Controls
  • HUD-CX-10.4: Tests of Controls Sampling Planning and Evaluation Form--Compliance Controls
• HUD-CX-11: Other Checklists for Performing Further Audit Procedures
  • HUD-CX-11.1: Confirmation Summary Form
  • HUD-CX-11.2: Accounts Receivable Statistics Form
  • HUD-CX-11.3: Data Extraction Software Analysis Documentation Form
  • HUD-CX-11.4: Cost Certification Audit Checklist
• HUD-CX-12: Evaluating Audit Differences
  • HUD-CX-12.1: Closing Entry and Audit Adjustment Form
  • HUD-CX-12.2: Audit Difference Evaluation Form
  • HUD-CX-12.3: Noncompliance Evaluation Form by Program
• HUD-CX-13: Disclosure Requirements for Financial Statements of Nonpublic Businesses
  • HUD-CX-13.1: Disclosure Requirements for Financial Statements of Nonpublic Businesses (Long-form Disclosure Checklist)
  • HUD-CX-13.2: Nonprofit Organization Disclosure Checklist
  • HUD-CX-13.3: Additional Disclosures for HUD-assisted Entities
• HUD-CX-14: Review and Wrap-up
  • HUD-CX-14.1: Supervision, Review, and Approval Form--For-profit Entities
  • HUD-CX-14.2: Supervision, Review, and Approval Form--Nonprofit Entities
  • HUD-CX-14.3: Audit Documentation Checklist
• HUD-CX-15: Internal Control Related Matters
  • HUD-CX-15.1: Control Deficiency Evaluation and Aggregation Worksheet
  • HUD-CX-15.2: Control Deficiency Comment and Management Point Development Worksheet
  • HUD-CX-15.3: Audit Finding Development Worksheet--Federal Award Programs
• HUD-CX-16: Other Checklists for Concluding the Audit
  • HUD-CX-16.1: Going Concern Checklist
  • HUD-CX-16.2: Accounting and Engagement Issues
• HUD-CX-17: Engagement Administration
  • HUD-CX-17.1: Client Billing Information
  • HUD-CX-17.2: Engagement Status Report
  • HUD-CX-17.3: Audit Time Summary
  • HUD-CX-17.4: Confirmation and Correspondence Control
  • HUD-CX-17.5: Checklist of Records Requested from Client

AUDIT CONFIRMATION AND CORRESPONDENCE LETTERS--HUD-CL

• HUD-CL-1: Engagement Letters
  • HUD-CL-1.1: Audit Engagement Letter--For-profit Entities
  • HUD-CL-1.2: Audit Engagement Letter--Nonprofit Entities
  • HUD-CL-1.3: Agreed-upon Procedure Engagement Letter--For-profit Entities
  • HUD-CL-1.4: Agreed-upon Procedure Engagement Letter--Nonprofit Entities
  • HUD-CL-1.5: Resignation Letter--Drafting Form
• HUD-CL-2: Legal Letters
  • HUD-CL-2.1: Request for Legal Representation--Lawyer Is Requested to Provide Information
  • HUD-CL-2.2: Request for Legal Representation--Lawyer Is Requested to Confirm Information Provided by Client
• HUD-CL-3: Management Representations
  • HUD-CL-3.1: Management Representation Letter--For-profit Entities
  • HUD-CL-3.2: Management Representation Letter--Nonprofit Entities
  • HUD-CL-3.3: Summary of Audit Differences
  • HUD-CL-3.4: Updating Management Representation Letter
  • HUD-CL-3.5: Agreed-upon Procedure Representation Letter--For-profit Entities
  • HUD-CL-3.6: Agreed-upon Procedure Representation Letter--Nonprofit Entities
• HUD-CL-4: Internal Control Communications--Not Used
• HUD-CL-5: Communications with Those Charged with Governance
  • HUD-CL-5.1: Communication with Those Charged with Governance during Planning
  • HUD-CL-5.2: Communication with Those Charged with Governance at or Near the Conclusion of the Audit
• HUD-CL-6: Cash Confirmations and Letters
  • HUD-CL-6.1: Standard Form to Confirm Account Balance Information with Financial Institutions
  • HUD-CL-6.2: Request for Subsequent Bank Statements
  • HUD-CL-6.3: Receipt for Cash Counted by Auditor
  • HUD-CL-6.4: Confirmation of Authorized Signatories
  • HUD-CL-6.5: Confirmation of Escrow Accounts Maintained by Financial Institutions in Connection with Section 202 Direct Loan Projects and Sections 202 and 811 Capital Advance Projects
• HUD-CL-7: Receivables Confirmations and Letters
  • HUD-CL-7.1: Positive Accounts Receivable Confirmation Request--without a Statement
  • HUD-CL-7.2: Confirmation of Note Receivable
• HUD-CL-8: Investments and Securities Confirmations and Letters
  • HUD-CL-8.1: Receipt for Securities Counted by Auditor
  • HUD-CL-8.2: Confirmation of Securities Held by Brokers
  • HUD-CL-8.3: Confirmation of Securities Held by a Third Party
• HUD-CL-9: Inventory Confirmations and Letters--Not Used
• HUD-CL-10: Payables and Debt Confirmations and Letters
  • HUD-CL-10.1: Accounts Payable Confirmation
  • HUD-CL-10.2: Note Payable Confirmation (to Parties Other Than Banks or HUD)
  • HUD-CL-10.3: Confirmation of Debt for Which No Written Loan Agreement Exists
  • HUD-CL-10.4: Confirmation of Mortgage Debt--Mortgages Held by Financial Institutions
  • HUD-CL-10.5: Confirmation of Mortgage Debt--Section 202 Direct Loans and Sections 202 and 811 Capital Advances
  • HUD-CL-10.6: Confirmation of Mortgage Debt--HUD-held Mortgages
  • HUD-CL-10.7: Confirmation of Flexible Subsidy Loans
  • HUD-CL-10.8: Confirmation of Line of Credit
  • HUD-CL-10.9: Confirmation of Compensating Balances
  • HUD-CL-10.10: Confirmation of Contingent Liabilities with Financial Institutions
• HUD-CL-11: Benefit Plan Confirmations and Letters--Not Used
• HUD-CL-12: Other Confirmations and Letters
  • HUD-CL-12.1: Standard Confirmation Inquiry for Life Insurance Policies
  • HUD-CL-12.2: Confirmation of Insurance Coverage (Except Life Insurance)
  • HUD-CL-12.3: Confirmation of Lease Agreement
  • HUD-CL-12.4: Related Party Confirmation
  • HUD-CL-12.5: External Peer Review Report Transmittal Letter
  • HUD-CL-12.6: Data Request Letter
• HUD-CL-13: Predecessor/Successor Communications
  • HUD-CL-13.1: Request for Predecessor Auditor to Release Information to Successor Auditor
  • HUD-CL-13.2: Letter Granting Successor Auditors Access to Workpapers
  • HUD-CL-13.3: Client Consent and Acknowledgement Letter
  • HUD-CL-13.4: Communication with Predecessor Auditor Prior to Final Engagement Acceptance
• HUD-CL-14: Principal and Other Auditor Communications
  • HUD-CL-14.1: Request for Representations from Other Auditor
  • HUD-CL-14.2: Inquiry of Principal Auditor by Other Auditor
  • HUD-CL-14.3: Principal Auditor's Response to Inquiries from Other Auditor
  • HUD-CL-14.4: Letter from Principal Auditor to Other Auditors Regarding Related Parties

Continuing Professional Education

CPE & Training Solutions

INDEX