The U.S. Government Accountability Office (GAO) today issued a new revision of Generally Accepted Government Auditing Standards, also known as the “Yellow Book.” Last revised in 2011, the Yellow Book is designed to help government auditors at the federal, state, and local levels produce high-quality audits that reflect competence, integrity, objectivity, and independence.
On June 2, 2013, the GAQC issued its comment letter on the Office of Management and Budget (OMB) Proposed Rule, Reform of Federal Policies Relating to Grants and Cooperative Agreements: Cost Principles and Administrative Requirements (Proposed Rule), and the related, Proposed OMB Uniform Guidance: Cost Principles, Audit, and Administrative Requirements for Federal Awards (Proposed Guidance). GAQC Alert #211.
In GAQC Alert #221, we informed you about the OMB proposed changes to the DCF and guidance that was being developed for situations when 2013 single audits are completed prior to the final 2013 DCF being available.
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.
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.
With a new property, be sure the property is completely registered in the HUD system well before the financial statement reporting time deadline.
On section 8 housing, be sure you have reviewed all your tenant files for accuracy before your auditor asks to see them.
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 Wilson & Associates.
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.
Have a dedicated Company Officer work with the external auditor and answer all questions in a timely fashion.