HCV FORUM FASS HCV FORUM FASS Why FASS

HCV FORUM FASS

HCV FORUM FASS Why FASS is required § Part of HUD’s Monitoring and Oversight Responsibilities § Helps Assess Financial Health & Compliance § Identifies Possible Instances of Waste, Fraud, and Abuse § Helps in Risk Ranking of Portfolio § Only Financial Statement the PHA files since YES was eliminated for the VO program 2

HCV FORUM FASS Why FASS is required continued § Meets UFRS Requirements § GAAP-based System § Statements are based on Accrual basis instead of Cash basis § Electronic § In Form and Substance as prescribed by HUD 3

HCV FORUM FASS Submission Dates Fiscal Year End 12/31 03/31 06/30 09/30 Unaudited 02/28 05/31 08/31 11/30 Audited 09/30 12/31 03/31 06/30 4

HCV FORUM FASS Different Entity FYE vs. PIC FYE Reporting § If the PHA PIC FYE is different than the reporting entity – PIC must be updated § PHA should submit all change requests to their local FO § HUD may unilaterally make the change after that date 5

HCV FORUM FASS Program Specific Audit PHAs that are Part of a General Purpose Government that have Not Declared the HCV Programs as a Major Fund or PHAs that are Part of a Non-Profit § Contact HUD to determine if the PHA must have a program specific audit. § HUD may reimburse the cost of the program specific audit subject to funding availability. 6

HCV FORUM FASS Different Entity FYE vs. PIC FYE Reporting § Until FYE Change is Updated in PIC, PHA should procure a program specific audit and submit based on its FYE in PIC. § PHA should contact HUD prior to undertaking the audit. § HUD may reimburse the cost of this audit subject to funding availability 7

HCV FORUM FASS Separate PHA Numbers for Low-Rent and HCV programs § FASS requires entity wide reporting and allows PHAs to report under one PHA number § PHAs having multiple PHA numbers should include the other PHA numbers in the comments section of their submission § PHAs having multiple PHA numbers may request a consolidation of their PHAs numbers through their local field office. 8

HCV FORUM FASS Different Entity FYE vs. PIC FYE Reporting § If the FYE of the Primary Government Does Not End on a Quarter § PHA should not request a FYE Change § PHA must have a program specific audit § Program Specific Audit Costs may be reimbursed by HUD subject to funding availability. 9

HCV FORUM FASS Extension Request § Request Additional Time for an Unaudited Submission § Performed Electronically through FASS -PH § Request is Due 15 days prior to the Submission Due Date § Include Verifiable Justification 10

HCV FORUM FASS Waiver Request § Request Additional Time for an Audited Submission § Hard Copy Request § Request is Due 30 days prior to Submission Due Date § Include Verifiable Justification § PIH Assistant Secretary must approve 11

HCV FORUM FASS • Two sources of HCV Program Equity: HAP and Administrative Fee: • 2 new line items (memo accounts): Line 1117 Administrative Fee Equity & 1118 HAP Equity • Automatically populated based on revenue and expenses • PHA must complete Other Revenue and Other Expense for lines 1117 & 1118 12

HCV FORUM FASS Unaudited Submission Goal: Proper classification of accounting transactions and a fair reflection of PHA’s financial condition. Recommendation Description Accept No issues noted and all prior issues corrected Conditional Accept Issues noted, but deemed immaterial Reject Errors and/or issues noted, material 13

HCV FORUM FASS Sanctions for Late Filing § FASS-PH, VMS, & PIC 50058 § 10% penalty against a PHA’s Monthly Administrative Fee § Permanent Reduction § PIH Notice 2006 -3 § Sanctions commence with publication of new PIH Notice/Letter 14

HCV FORUM FASS Webcast Training November 6, 2007 Link http: //www. hud. gov/webcasts/index. cfm NOTE: New Start time at 1: 00 PM EST 15

HCV FORUM FASS Biggest problems include: • Negative Equity Balances • Failure to report all programs • Completion of the Equity Memo accounts A) Restricted Net Asset – HAP B) Administrative Fee Equity 16

HCV FORUM FASS QUESTIONS – • Any questions concerning this subject should be directed to the Housing Voucher Financial Management Division, Office of Public Housing and Voucher Programs E-mail address: • PIH_ Financial_ Management_ Division @hud. gov 17