How to save time and money
There are a number of things that you can do to save money and prepare for your annual audit.
- 1. Be sure your accounting records are in good shape and all Balance Sheet accounts are supported by backup documentation. Your accounting staff can create what is called a lead sheet for all Balance Sheet accounts. A lead sheet details all account activities, including attachments that support all major entries. I would recommend you have a qualified accountant do this step as it can save you money if done right. Be sure you give your accountant full access to the general ledger and books or record.
- 2. Be sure any Section 8 project has its required DUNS number. You obtain this number from Dun & Bradstreet for each physical location of your business for U.S. Government Contracts.
- 3. For Section 8 Housing, be sure you hire a competent Property Manager who is familiar with Section 8 housing and the voucher subsidy system. Good Property Managers familiar with Section 8 housing will have competent staff who are trained with filing voucher subsidy requests, plus handling all the complicated paperwork necessary for a Section 8 housing project.
- 4. Be sure you have read your Regulatory Agreement and understand it. Too many clients neglect this step and find themselves in serious trouble for not adhering to all the agreements they have made with HUD. If you have any questions about your agreement, please contact my office.
- 5. Be sure you respond to any requests from the Contract Administrator in a timely fashion, as these can overwhelm an onsite Property Manager who is not experienced in Section 8 housing.
- 6. Be sure any HUD physical inspection exceptions are handled in a timely fashion.
- 7. Have a dedicated Company Officer work with the external auditor and answer all questions in a timely fashion.
- 8. Use HUD Chart of Accounts when you can.
- 9. Comply with all HUD document requirements in a timely fashion. An example would be Repair and Replacement requests.
- 10. Get all audit work papers “audit ready” for your accountant by the first week of February, as the Financial Statements need to be filed with REAC by March 31 or March 30 if in a leap year.
- 11. Make sure all REAC access to your financial statement file is obtained well before the REAC financial statement filing deadline date, as the process can be time-consuming.
- 12. Get your REAC filing started early because most Financial Statements are filed the week before the filing deadline.
- 13. With a new property, be sure the property is completely registered in the HUD system well before the financial statement reporting time deadlines.
- 14. On Section 8 Housing, be sure you have reviewed all your tenant files for accuracy before your auditor asks to see them.
- 15. For the lender client, be sure you have reviewed all your loan files.
- 16. For a lender client, make sure you are familiar with the Quality Control changes.
- 17. For lender clients, make sure you are familiar with the HUD Audit Guide Chapter 7 FHA-Approved Lenders Audit Guidance.
If you have any questions, please contact Gregory K. Wilson, CPA
