Financial Submissions Julie Miles Financial Analyst HUDKansas City
Financial Submissions Julie Miles, Financial Analyst HUD-Kansas City, KS 913 -551 -5529 1
Analysis �PHA Submits to HUD’s Real Estate Assessment Center (REAC) �REAC Financial Analyst Ensures Completeness of Submission & GAAP Compliance ◦ Accept ◦ Conditionally Accept ◦ Reject – 15 Days to Resubmit �REAC Generates FASS Score �Field Office Financial Analyst Analyzes FASS Score and FDS ◦ May Lead to Remote or On-site Review 2
Submission Requirements � 24 CFR 902. 33 �Financial Data Prepared in Accordance with Generally Accepted Accounting Principles (GAAP) �Submit Electronically to REAC 3
Submission Requirements �All PHAs Must Submit Unaudited Financial Data �Audits Required: ◦ By State Law ◦ By Federal Law if Expend $500 K+ Federal Funds (A-133) ◦ PHA Received Audit Add-on Operating Subsidy ◦ If PHA Receives Audit, It Must Be Submitted to HUD 4
Transition Year Due Dates �Unaudited – Normally Due 2 Months After FYE 6/30/08 , 9/30/08 & 12/31/08 Due 4/13/09 3/31/09 Due 6/30/09 Federal Register Vol. 73, No. 163, 8/21/08 Docket FR -5227 -N-01 �Audited Expect System to Be Open in April Due Dates Will Be Announced Once System Open Electronically to REAC Paper Copy to Field Office Financial Analyst 5
Guidance �PHA & Auditor User Guide 8. 2. 1. 0 �http: //www. hud. gov/offices/reac/products/fass/ pha_doc. cfm 6
PHA Info Page �PHA Code �PHA Name �Address �FYE �Submission Type 7
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Programs �Federal Program Catalog of Federal Domestic Assistance (CFDA) �State/Local Programs �Business Activities �Component Units 9
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Financial Data Schedule (FDS) �Balance Sheet �Revenue & Expense and Memo �Data Validation 11
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FDS Details 14
New FDS Format �AMP Level Financial Reporting �Operating Fund and Capital Fund Reporting at AMP Level vs. PHA Level ◦ 1 Balance Sheet per AMP – Operating Fund & Capital Fund Combined ◦ 2 Income Statements per AMP – Operating Fund & Capital Fund Separate �New Columns ◦ AMP & COCC Columns Replace Low-Rent and CFP Columns ◦ Elimination Column Subtracts Internal COCC/AMP Transactions from Entity-Wide Totals �New 5 -Digit Line Number Format for Revenues & Expenses 15
New FDS Line Items �FDS Line Definition Guide October 2008 ◦ http: //www. hud. gov/offices/reac/products/fass_pdf/fd s_ln_def_gd_2008. pdf �Fee Revenues & Expenses Line Items �Expense Line Items ◦ Other Operating-Administrative ◦ Sewer ◦ Insurance Premiums �Memo Accounts ◦ Excess Cash ◦ CFP Expenditure Data 16
New FDS Detail Links �Ordinary ◦ ◦ ◦ Maintenance & Operations-Contract Costs Garbage & Trash Removal Heating & Cooling Snow Removal Elevator Maintenance Landscape & Grounds Unit Turnaround Electrical Plumbing Extermination Janitorial Routing Maintenance Miscellaneous 17
Ordinary Maintenance & Operations – Contract Costs 18
New FDS Detail Links �Accounts Receivable HUD-Other Projects ◦ Op. Sub, CFP, Other �Accounts Payable-HUD PHA Programs ◦ Op. Sub, CFP, Other �Deferred Revenue ◦ Op. Sub, CFP, Other �Current Portion of Long-term Debt ◦ CFFP, Capital Projects/Mortgage Revenue �Long-term Debt ◦ CFFP, Capital Projects/Mortgage Revenue 19
Accounts Receivable – HUD Other Projects 20
Current Portion of Long-term Debt 21
New FDS—PHA Level Program $ Total S 8 Rural Thousands COCC Elim. AMPs HCV Housing Assets $10, 100 $300 $750 $400 $11, 500 Liabilities $4, 850 $200 $250 $300 $5, 550 Equity $5, 250 $100 $500 $100 $5, 950 Revenue Expenses Net Income $1, 730 $1, 000 $1, 360 $990 $370 $10 $575 $560 $15 $270 -$250 $240 -$250 $3, 325 $2, 900 $425 22
New FDS—AMP Level Asset Management Projects $ Thousands Project Other 1 2 3 AMP Assets $3, 434 $3, 254 $3, 130 $282 Liabilities $1, 649 $1, 522 $1, 503 $176 Equity $1, 785 $1, 732 $1, 627 Revenue $588 $527 $536 Expenses $462 $429 $421 Net Income $126 $98 $115 Total $10, 100 $4, 850 $106 $5, 250 $78 $47 $1, 730 $1, 360 $31 $370 23
Data Collection Form (DCF) �General Info ◦ FYE ◦ Auditor Info �Financial Statement Info ◦ Expected Outcome of Audit �Federal Program Expenditures 24
DCF General Info 25
DCF Financial Statement Info 26
DCF Federal Program Expenditures 27
Comments 28
LOCCS/HUDCAPS Reconciliation 29
Late Reason 30
Additional Info for Audits �Management Discussion & Analysis (MD&A) – required since FYE 6/30/04 �Entity-wide Financial Statements �Notes to the Financial Statements �Financial Data Schedule �Findings �Corrective Action Plan 31
Notes & Findings (Audits Only) 32
Material Difference (Audits Only) 33
Need More Time? �Unaudited Extension ◦ Request electronically through FASS-PH ◦ At least 15 days prior to due date ◦ Must include verifiable justification �Audited Waiver ◦ Hard-copy request to Director of REAC ◦ At least 30 days prior to due date ◦ Must include verifiable justification 34
Unusual Circumstances Request 35
Late Submissions…Oops! �Unaudited ◦ Low Rent �FASS Score Reduced 1 Point Every 15 days Late �Late Presumptive Failure (LPF) After 3 Months Late �Reduces FASS Score to Zero, Designates PHA Financial Substandard/ Troubled & Requires Memorandum of Agreement (MOA)* ◦ Section 8 �Monthly Admin Fee Permanently Reduced 10% Each Month Until Submitted per PIH Notice 2006 -3 �Audited ◦ Low Rent �Late Presumptive Failure (LPF) Day After Due ◦ Section 8 �Monthly Admin Fee Permanently Reduced 10% Each Month Until Submitted per PIH Notice 2006 -3 36
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