If you would like to unsubscribe or update your email address, please click on the link at the bottom of the page.

Today, HUD released its long-awaited revision of Chapter 1 of the HUD Audit Guide.  This chapter is set to be effective for fiscal year ends ending on or after September 30, 2011.   The transmittal letter indicates the following major changes to the Guide:

1. Paragraph 1-2 allows this guide to be used as a program-specific audit guide for audits of not-for-profit sponsors or entities covered by A-133; however, the auditor is to follow A-133 reporting and major program determination requirements.
2. Paragraph 1-4 displays the value to be used in making major program determinations for each program covered by this guide.
3. Paragraph 1-5 requires attribute sampling as the appropriate sampling methodology for use in auditing all programs in all chapters of' this guide. Minimum sample sizes are established and are mandatory to provide sufficient audit evidence and adequate audit coverage.
4. Paragraph 1-6 requires the auditor, if he/she becomes aware of illegal acts or fraud that has occurred or is likely to occur, to telephonically contact the HUD OIG single audit coordinator to discuss his/her findings.
5. Paragraph 1 -7 requires information to be included in engagement letters for all audits of HUD programs so that the auditor and the client are in agreement and the client grants permission for the auditor to obtain information from the prior auditor and report fraud as provided for in the HUD audit guide. The following explains the information required in selected paragraphs:
   • Paragraph I -7A provides mandatory information that must be included in the engagement letter so that the auditor and the client are in agreement as to methodology to be used in conducting the audit, reporting requirements, reporting of fraud, key target dates, and access to working papers and auditee's documentation.
   • Paragraph l-7F provides that the current auditor should contact the prior auditor to gain an understanding of any unreported information that may have an effect on the current audit.
   • The remaining planning information in paragraph 1-7 was contained in the prior version of chapter 1 and is now separated into four sections, labeled B. Testing, C. Reporting, D. Management Representations, and E. Audit Documentation.
   • Paragraph 1-8 was added to provide the HUD contact points for each audit guide chapter that are to be notified should the auditor, performing an audit covered by the specific chapter, withdraw or be terminated from the engagement.
   • Paragraph 1-10 was added to advise auditors and clients that either HUD OIG or the Office of Public and Indian Housing's Real Estate Assessment Center can perform quality control reviews of audits conducted using this audit guide and the action(s) that can be taken if the reviewer finds the audit report and audit documentation to be substandard or contain major inadequacies.
6. Appendix A. Attribute Sampling, applies to all audits performed using this audit guide, provides the sampling methodology to be used. and establishes minimum sample sizes.

Additional AHACPA comments:

Two of the more impactful changes of this chapter are 1) - HUD has moved the appendix on sampling currently contained in chapter 3 to an appendix to the entire Guide.  This means that the minimum sampling requirements of that appendix are now applicable to all chapters of the Guide.  2) -  As mentioned above, paragraph 1-4 of the Guide established new materiality limits for the determination of major programs.  The following table contains the revised materiality amounts.

June 9, 2011 8:00 am - 5:00 pm

June 10, 2011 8:00 am - 3:10 pm

Planet Hollywood Resort

3667 Las Vegas Blvd, South

Las Vegas, NV 89109

For Public Housing Financial Personnel

Auditors, Fee Accountants, and Financial Managers

OBJECTIVE: To learn HUD accounting, audit, and electronic submission requirements and how to efficiently implement those requirements.

PREREQUISITES/ADVANCED PREPARATION: General HUD accounting or audit experience.  You do not need to print any course materials prior to your arrival.  All materials will be provided for you.

INSTRUCTIONAL METHOD: Group-Live with interactive discussion, guides and practice aids, case studies.

LENGTH/CPA CREDITS: 3 hours governmental auditing and 13 hours governmental accounting for a total of 16 hours CPE credit.

CANCELLATION POLICY: All cancellation requests must be received in writing (email or fax is fine).  Registration fees are fully refundable provided the request is received at least three weeks prior to the course (05/19/2011). Requests received after this date, but one week before the course (06/02/2011) will receive a refund less an administration fee of $75.  Due to financial obligations incurred by AHACPA no refunds will be issued on cancellation requests received after 06/02/2011.

SUBSTITUTIONS: If you are unable to attend a course you may substitute another individual or change locations without penalty.  The location change must be within the same calendar year.  For proper CPE credit and record keeping, you must notify us in advance of any substitution or change in location.

CONTACT INFORMATION: For more information regarding refund, complaint and/or program cancellation policies, please contact our office at 800-532-0809.