IN THIS ISSUE:

• New Email Newsletter Provider - confirmation required  
• PHA Implementation of GASB Statements
• HUD OIG Releases Revision to Chapter 6 of The Audit Guide
• Analytical Review Project 2013  
• AHACPA Continuing Professional Education Courses 

• Assets are resources with present service capacity that the government presently controls.
• Liabilities are present obligations to sacrifice resources that the government has little or no discretion to avoid.
• A deferred outflow of resources is a consumption of net assets by the government that is applicable to a future reporting period.
• A deferred inflow of resources is an acquisition of net assets by the government that is applicable to a future reporting period.
• Net position is the residual of all other elements presented in a statement of financial position.  

The elements of the resource flows statements are defined as follows:

• An outflow of resources is a consumption of net assets by the government that is applicable to the reporting period.
• An inflow of resources is an acquisition of net assets by the government that is applicable to the reporting period.

Concepts Statement No. 4 also identified net position as the residual of all other elements presented in a statement of financial position. These requirements have not previously been implemented by PHAs as GASB Concept Statements do not establish GAAP.  

In June 2011, in an effort to clarify the issues identified in Concepts Statement No. 4 and to provide financial reporting guidance on the implementation of Concepts Statement No. 4, the GASB issued Statement No. 63 - Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position (GASB 63). GASB 63 is effective for periods beginning after December 15, 2011.  

In March 2012, GASB issued Statement No. 65 - Items Previously Reported as Assets and Liabilities (GASB 65). This statement provided clarifying guidance on either (a) classification of items that were previously reported as assets and liabilities as deferred outflows and inflows, or (b) recognize certain items that were previously reported as assets and liabilities as outflows of resources (expenses or expenditures) or inflows (revenues). GASB 65 is effective for periods beginning after December 15, 2012.  

Changes Required Immediately  

The statement requires that deferred outflows of resources are reported in a separate section following assets. The statement also requires the reporting of deferred inflows of resources in a separate section following liabilities. The total for deferred outflows of resources may be added to the total for assets, and the total for deferred inflows of resources may be added to the total for liabilities to provide subtotals.  

The Statement of Net Assets is replaced by a Statement of Net Position. However the format of the statement of Net Position may be presented in a balance sheet format. Regardless of format, the statement is named "The Statement of Net Position".  

To our knowledge, HUD has not developed a position on how the FDS templates will be required to be submitted. Such guidance is expected fairly soon. Despite, the lack of guidance for the FDS, we know that the basic financial statements will require the following changes:  

• The term Net Position will replace net assets
• The statement will be renamed Statement of Net Position
• PHA will be required to report net deferred inflows and outflows
• Net assets will be renamed net position  

Given the required implementation dates detailed in the standards, PHAs and their auditors need to be prepared to meet these requirements for the December 31, 2012 reporting period. The unaudited submissions already submitted were not affected as HUD had not made the required changes to the FDS. However, the audited basic financial statements will be required to be adjusted for these new statements.  

In 2005, 2007, 2009 & 2010 AHACPA undertook a project to collect Multifamily operating data from REAC filings submitted to HUD.  We collected operating data on approximately 1,000 entities each year.  That data was made available without charge to all who participated in the project.

We will be collecting that data again (for 2012 year-end Multifamily Submissions) in the next month.  Given the increase in procedures required by the Guide, we are very interested in obtaining data in relation to these increased procedures.  It is hoped that such data will be useful in discussions with HUD regarding future adjustments of the Guide. 

AHACPA will compile the data and provide summarized results by state, region and unit size.  Those that provide us data will receive the summary at no charge.  At no time will any confidential information such as name, tax ID number, or FHA contract number be entered into the database. All information collected will remain anonymous.  

Please watch for a follow-up email with information on how to participate in this project.

AHACPA is registered with the National Association of State Boards of Accountancy (NASBA) as a sponsor of continuing professional education on the National Registry of CPE Sponsors. State boards of accountancy have final authority on the acceptance of individual courses for CPE credit. Complaints regarding registered sponsors may be submitted to the National Registry of CPE Sponsors through its website: www.learningmarket.org