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The materials for the June 2011 PHA Conference have been posted, including the Q & A Session.  Audio/Video clips of the Q & A session are also available on YouTube.

1. Declarations of Trust: (Video Answer)
• Clients no having them and basically saying that HUD should have this.
• Resisting the finding - what to do and how to remedy - what's the process of getting this done?
2. Cancelled Checks: (Video Answer)
• Banks are now eliminating cancelled checks.  Have you seen this?  What do you think we should do?  Do you even care?
3. ARRA Funds: (Video Answer)
• For ARRA Funds, we've tested Type A programs with ARRA funds for 2 years traight.  No findings.  In year 3 can we use some common sense and not classify this same program as high risk?
4.  
5. Restricted net assets - what is included: (Video Answer)
• We received an unaudited rejection because cash - tenant security deposits (line 114) are in entity wide restricted net assets.  Statement says there is a liability offsetting this, so it should not be included.  Can you discuss correct treatment?
6. Is there any guidance or general industry standard for determining the current portion of accrued compensated absences? (Video Answer)
7. Should a representation letter be obtained from a fee accountant for small PHAs where the fee accountant may be the only person who understands the accounting and financial statement issues? (Video Answer)
8. Is there any requirement for minimum samples sizes? (Video Answer)
• Sample Size Tables 
9. Why are so many independent tax credit LLCs being shown as discretely presented component units? (Video Answer)
10. Why is past 2003 HCV admin. Equity not shown as "restricted" net assets? (Video Answer)
11. What communications are required to a predecessor auditor when material prior period adjustments are made? (Video Answer)
12. Have the independence rules changes with respect to auditors who prepare the financial statements? (Video Answer)
13. FDS Line Items (Video Answer)
• In your presentation you talked about he HAP portability Expanse line item going against admin.
• I know the bad debt expense line item gets split 50/50 to HAP & Admin
• Are there any other FDS Line Item expense/Income that are split or go against what you would not expect?
14. REAC: (Video Answer)
• Why is an unaudited submission required if there will be an audited submission? If there is only one submission required it will save HUD and PHAs money and time. Multifamily only has one submission.
15. REAC: (Video Answer)
• Do the REAC reviewers read the notes to the financial statements? Multiple rejection comments could be answered by reading the notes to the financial statements.
16. REAC: (Video Answer)
• Is there a summary/analysis of all submissions/ratios available for comparison purposes for individual PHAs?
17. REAC: (Video Answer)
• A PHA has long term interfund advance between state/local & business-type-non federal.  Should this be reported on 144?  During the session someone asked this, but it was not answered and turned back to federal program discussion.
18. In business type activities, Non-HUD program - long term loan was forgiven and recognized as revenue, what REAC line item would this be reported on? (Video Answer)
19. REAC: (Video Answer)
• Capital Asset Acquisition - Line 11610 - 11660 - Does this include all capital purchases in low rent or just the ones with Capital Funds?  Also, if items purchased with Capital Funds, but not capitalized due to not meeting capitalization threshold, would they be reported here?
20. Management Fees: (Video Answer)
• We have several mixed-finance properties, the closing documents restrict the property management fee to 9% of revenue.  This number calculates to an amount that is less than we can earn using the HUD property management fee plus bookkeeping fee.  We are not allowed to charge a bookkeeping fee to the mixed finance property.
• We are holding 5% of operating subsidy (only transferring 95% from the AMP to the partnership) and are using the 5% difference to pay the difference in the fees.
• Is this an acceptable practice?
21. Where on the FDS should Public Housing FSS Escrow Payments be posted? (Income Statement) (Video Answer)
22. Property Owned by PH - Used for other funds: (Video Answer)
• If you have a truck, for example, owned by PH that is being used for other programs can you reimburse PH for that use?
• If yes, would a reasonable method be actual miles used x IRS mileage rate or should the truck be parked when not in use?
• If we can charge other programs, would that be other income to the PH? And would that be federal or non federal dollars?
• Can each fund using it pay for part of it? According to our F.A. HUD doesn't want several funds to own/split ownership between funds, one fund owns it and the other funds pay their portion to the fund that owns it.
23. REAC - Capital Fund: (Video Answer)
• What are the appropriate revenue lines and how is it determined - 706 vs 706.1?
• What transfer out lines should be used? Transfer to Low Rent.
24. In Section 5 Ron Urlaub stated that mixed finance properties will not receive financial not management scores on PHAS. Does this mean that they will only be scored on physical and/or capital fund? - We have several that were inspected and received scores. (Video Answer)
• How will this affect the PHAs overall score?
25. Due from/Due To: (Video Answer)
• REAC is rejecting FDS submissions when balances in Due From/Due To accounts are not moved to "cash".  Unless you have a "pooled" cash approach, all due from/to's cannot be eliminated or moved to Cash.  Auditor's  do not like an "off-balance sheet" reclass of due from/to cash, as this becomes a bank reconciliation issue.
26. Findings: (Video Answer)
• Are findings resolved by HUD, Area REAC Offices or both?