understanding hud audit and reporting issues for 2011 audits of supervised mortgagees a governmental...

Understanding HUD Audit and Reporting Issues for 2011 Audits

of Supervised Mortgagees

A Governmental Audit Quality Center Web EventJanuary 6, 2012

Governmental Audit Quality Center 2

Administrative Notes

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Administrative Notes

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Continuing Professional Education

To document your participation and obtain CPE, you must click “OK” on 75% of pop-up markers There will be a total of 8 pop-up markers during the event (i.e., about 1 every 15 minutes) At end of today’s presentation we will provide steps for obtaining your CPE certificateContact the Service Center for help with obtain CPE at 888.777.7077 or [email protected]

If you are not receiving CPE for this event, ignore the pop-up markers if they appear.

mailto:[email protected]


Presenters

Jean M. Joy, CPA Wolf & Company, P.C.

&Amanda Nelson, CPA

KPMG LLP


What We Will Cover

HUD Audit Requirements and Related Updates

GAGAS

Financial Statement Audit• Financial Statements and Supplementary Information• SAS 119, Supplementary Information in Relation to the Financial

Statements as a Whole

Compliance Audit• HUD OIG Handbook 2000.04,REV-2, Consolidated Audit Guide

for Audits of HUD Programs (HUD Audit Guide)

LASS Electronic Submission/Challenges

Annual Filing Requirements – Mortgagee Letter (ML) 2011-25

Resources


HUD Audit Requirements – Who? Who is Subject to the HUD Audit Requirements?

• Supervised and nonsupervised HUD approved mortgagees and lenders regardless of the number of loans made.

Loan Correspondents/TPOs Reminders• Loan correspondents are no longer approved participants in

FHA programs but will continue to have the opportunity to participate in FHA programs as third-party originators (TPOs) through sponsorship by FHA-approved mortgagees, as is currently the case, or through application to be approved as an FHA-approved mortgagee.

• FHA-approved mortgagees assume full responsibility to ensure that a TPO adheres to FHA’s loan origination and processing requirements.

• TPOs are not subject to annual recertification and reporting requirements of FHA.


HUD Audit Requirements – Where?

Where Can You Find Further Guidance on HUD Audit Requirements?•HUD Audit Guidehttp://www.hudoig.gov/reports/consolidated.php

•Various HUD Handbooks (e.g., 4060.1) as referenced through this presentation

•AICPA Governmental Audit Quality Center (GAQC) HUD information

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/default.aspx

http://www.hudoig.gov/reports/consolidated.php






HUD Audit Guide – Which Chapters Apply?

Auditors of supervised mortgagees need to refer to various chapters of the HUD Audit Guide, as appropriate Chapter 1 - General Audit Guidance (always applies) Chapter 2 - Reporting Requirements and Sample Reports

(always applies) Chapter 6 - Ginnie Mae Issuers of Mortgage-Backed Securities

Audit Guidance Chapter 7 - HUD-Approved Title II Nonsupervised Mortgagees

and Loan Correspondents Audit Guidance Chapter 8 - HUD-Approved Title I Nonsupervised Mortgagees

and Loan Correspondents Audit Guidance

Today’s presentation will focus on: Chapters 1, 2, and 7


HUD Audit Requirements – What?

What are the Audit Requirements?• HUD Title I and Title II approved lenders and

mortgagees are required to have an annual audit and submit their audited financial statements and compliance reports electronically through the Lender Assessment Subsystem (LASS) within 90 days of the end of their fiscal year

• The audit should be performed in accordance with Generally Accepted Government Auditing Standards (GAGAS) and Generally Accepted Auditing Standards (GAAS) or Public Company Accounting Oversight Board (PCAOB) Standards, as appropriate

Governmental Audit Quality Center

HUD Audit Requirements: Reports■ What are the required reports?

A. Financial Statement Audit: Opinion on the financial statements Report on internal control over financial reporting (no opinion is

issued) An opinion on supplementary information in relation to the financial

statements as a whole: consolidating schedules (if required), schedule of adjusted net worth, and Financial Data Templates

B. HUD Compliance Audit: Report on internal control over compliance with HUD

requirements (no opinion is issued) Report on compliance with applicable laws and regulations

related to HUD-assisted programs Major program (opinion is issued) Non major program

■ Refer to Chapter 2, Reporting Requirements and Sample Reports, of the HUD Audit Guide for more information

11


Update to Requirements: Small Lenders

ML 2011-25 (7/28/11): Alternative Reporting Requirements for Small Supervised Lenders and Clarification of Requirements for Supervised Lenders in Parent-Subsidiary Relationships FHA-approved supervised lenders that are regulated by the

FDIC, OTS, or NCUA whose consolidated assets do not meet the threshold (currently $500MM) required by those agencies for submitting audited F/S are not required to submit audited F/S to FHA, nor an audited computation of net worth. (Expires on April 7, 2012)

The Q4 Call Report that aligns with the supervised lender’s fiscal year-end is required to be submitted.


Update to Requirements: Small Lenders (continued) Small lenders are still required to submit an independent

auditor's report on: internal control as it relates to administering HUD-

assisted programs; andcompliance with specific requirements applicable to

major and non-major HUD programs. The auditors’ report on compliance for non-major

programs is a negative assurance report based on a financial statement audit and can only be issued when auditors are engaged to perform the financial statement audit.


Update to Requirements: Consolidated Lenders Per ML 2011-25, FHA-approved supervised lenders that

submit audited consolidated financial statements of a parent company are no longer required to submit internally prepared consolidating schedules.

Net worth and liquidity requirements must be met by the FHA-approved lender regardless of the lender’s financial reporting documentation.

Related FAQ


Update to Requirements: Adjusted Net Worth Requirements

New Net Worth Requirements – ML 2010-20 (June 2010):

Required effective 5/20/11 (for lenders w/FHA approval as of 5/20/10):- Small business - >$500K- Not a small business - >$1MM

A supervised lender is considered a small business if average assets are <$175MM.

Additional changes effective 5/20/13


Government Auditing Standards (GAGAS)


Overview of GAGAS Requirements (2007)

GAGAS are published by the Comptroller General of the United States

http://www.gao.gov/new.items/d07731g.pdf Terms GAGAS, GAS, and Yellow Book often used

interchangeably 2007 Revision of GAGAS to be used for 2011 audits

(see hyperlink above) As an FYI – GAO has issued a new 2011 Edition of

GAGAS that will not be effective until periods ending on or after 12/15/2012

17

http://www.gao.gov/new.items/d07731g.pdf


Overview of GAGAS Requirements (continued)

General standards - generally does not

incorporate AICPA standards(Chapter 3)

Field work standards - incorporates AICPA

standards(Chapter 4)

Reporting standards - incorporates AICPA

standards(Chapter 5)

Note: GAGAS can be used in conjunction with other auditing standards such as those issued by the PCAOB

18


General Standards – Independence

■ Overarching principles: Audit organizations must not Provide nonaudit services that involve performing

management functions or making management decisions

Audit their own work or provide nonaudit services in situations in which the nonaudit services are significant or material to the subject matter of the audits

■ Categories of nonaudit services■ Supplemental safeguards when providing nonaudit

services


General Standards – CPE

24-hour requirement topics• The government environment• Standards used in government

auditing• The specific or unique environment of

the audited entity

Remainder of the 80-hour requirement • Broad array of topics including

courses on firm’s audit methodology

80-hour total requirement

Auditors performing work under GAGAS should maintain their professional competence through CPE, as follows:

20


General Standards – CPE (continued)

■ All professionals working on an engagement where the report states that the engagement was conducted in accordance with GAGAS are required to meet the GAGAS CPE requirements, including:- Audit professionals- Internal specialists that are part of the engagement

team- Internal auditors and subcontractors

■ Consider the team member’s responsibilities when determining whether or not a certain course qualifies for GAGAS CPE

21


General Standards – CPE (continued)

■ Auditors who are only involved in performing field work but not involved in planning, directing, or reporting on the audit or attest engagement, and who charge less than 20% of their time annually to audits and attestations conducted in accordance with GAGAS should comply with the 24 hour requirement but are exempt from the remainder of the 80 hour requirement

■ Exemptions from all GAGAS CPE requirements:- Individuals performing support services, such as

administrative assistants- Interns- External specialists- Internal specialists who have a consultative role

22


Field Work Standards – Financial Audits

Auditor Communication•GAGAS broaden the parties included in the communication and the matters we communicate to those parties

Results of Previous Audits & Attestation

Engagements•Auditors are required to evaluate whether the audited entity has taken appropriate corrective action to address findings and recommendations from previous engagements

Violations of Provisions of Contracts or Grant

Agreements or From Abuse

•Auditors are required to design the audit to provide reasonable assurance of detecting material misstatements resulting from violations of provisions of contracts and grant agreements

23


Reporting Standards – Financial Audits

Report on internal control over financial

reporting

• Report significant deficiencies and material weaknesses in internal control

• At the financial statement level

Report on compliance with laws,

regulations, and provisions of

contracts and grant agreements

• Report all instances of fraud and illegal acts, unless inconsequential; and violations of provisions of contracts or grant agreements, and abuse that could have a material effect on the financial statements

• At the financial statement level

Report compliance with GAGAS Report views of responsible officials for findings

24


Reporting Standards – Financial Audits (continued)

• The specific laws, regulations, contracts, or internal control procedure, against which performance is compared or evaluatedCriteria

• The nature of the deficiencies, e.g., a regulation not being followed, a control procedure not followed Condition

• Why the condition exists Cause• What happened as a result of the conditionEffect• What the auditee should do to correct the conditionRecommendation

• Provided by managementViews of Responsible Officials

Elements of a Finding

25


Financial Statement Audit


Financial Statements and Supplementary Information

ScenarioLevel of financial

statements Audited

consolidating schedules

Financial Data Templates

Net worth schedule (in LASS)

Net worth schedule (audited)

Stand-alone bank Bank N/A Bank Bank Bank

Bank ≥ 40% of consolidated entity;

No guarantee by parent

Consolidated Not required(ML 2011-25) Consolidated Consolidated Bank

Bank <40% of consolidated entity; Guarantee by parent

ConsolidatedNot required(ML 2011-25) Consolidated Consolidated Bank

Bank <40% of consolidated entity;

No guarantee by parent

Consolidated Required Bank Bank Bank

Multiple banks, each <40% of

consolidated entity; No guarantee by

parent

Consolidated Required Each bank Each bank Each bank


SAS 119, Supplementary Information in Relation to the Financial Statements as a Whole

Effective for periods beginning on or after December 15, 2010

Addresses auditor’s responsibility when reporting on supplementary information (“SI”) in relation to financial statements as a whole

28


SAS 119, Supplementary Information in Relation to the Financial Statements as a Whole (continued)

Auditor should perform the following procedures: Inquire of management regarding the purpose of the SI

and the criteria to prepare the SI Determine if the form and content comply with the criteria Obtain an understanding of the methods used to prepare

the SI Reconcile the SI to the accounting records or financial

statements Inquire of management regarding significant

assumptions/interpretations Evaluate the appropriateness and completeness of the SI Obtain written representations from management

29


SAS 119, Supplementary Information in Relation to the Financial Statements as a Whole (continued)

Other considerations: Auditor has no responsibility for subsequent events Reporting

Adds language to the opinion: Responsibility of management Derived from, and relates directly to, the underlying

accounting records SAS includes examples of the opinion (both separate and

part of audit opinion) Auditor is precluded from expressing an opinion on SI

when the audited financial statements contain an adverse opinion or a disclaimer of opinion

30


A Word of Caution

HUD Audit Guide Illustrative Report, Example A, not yet updated for SAS 119 in-relation-to wording

AICPA will be working with HUD to assist them with updating report language for SAS 119 in the HUD illustration

In the meantime, look to SAS 119 to assist you in modifying in-relation-to wording

31


Compliance Audit


Compliance Audit – Applicable GuidanceAuditing Standard - AU 801, Compliance Audits (SAS 117)• http://www.aicpa.org/Research/Standards/AuditAttest/Download

ableDocuments/AU-00801.pdf

HUD Audit Guide (see slide 8 for hyperlink to access Guide)

AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits• Chapters 1-4 may be useful for the Government Auditing

Standards portion of the engagement• http://

www.cpa2biz.com/AST/AICPA_CPA2BIZ_Specials/MostPopularProductGroups/AuditAccountingGuides/PRD~PC-012743/PC-012743.jsp

http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-00801.pdf

http://www.aicpa.org/Research/Standards/AuditAttest/DownloadableDocuments/AU-00801.pdf

http://www.cpa2biz.com/AST/AICPA_CPA2BIZ_Specials/MostPopularProductGroups/AuditAccountingGuides/PRD~PC-012743/PC-012743.jsp




American Institute of CPAs

Compliance Audit

Materiality■ Establish and apply materiality levels for the compliance

audit based on the HUD audit requirement■ Consideration of materiality is in relation to the lender’s

HUD program activities taken as a whole

Materiality is affected by:■ The nature of the compliance requirements which may not

be quantifiable in monetary terms■ Qualitative considerations, such as the needs and

expectations of HUD

34


Compliance Audit (continued)

Performing Risk Assessment Procedures Obtain an understanding of the applicable HUD requirements and the

entity's internal control over compliance with HUD requirements Use the information obtained during risk assessment to determine the

nature, timing, and extent of the audit procedures for the HUD compliance audit

Example risk assessment procedures include Inquiring of management about whether there are findings and

recommendations in reports or other written communications resulting from other audits or external monitoring that directly relate to the objectives of the HUD compliance audit

Gaining an understanding of management's response to findings and recommendations that could have a material effect on the entity's compliance with HUD requirements (for example, taking corrective action)

35



Risk of Material Noncompliance

Inherent risk and control risk may be assessed separately or combined

Inherent Risk Control Risk Risk of Material Noncompliance

36



What did the client do to ensure that compliance was achieved?

Control

Was the compliance objective achieved?

Compliance

Tests of Controls vs. Tests of Compliance

37


HUD OIG Handbook 2000.04, REV-2, Consolidated Audit Guide for Audits of HUD Programs (HUD Audit Guide) - Chapter 1 – General Audit Guidance (April 2011 update)


HUD Audit Guide - Chapter 1 – General Audit GuidanceSome key elements in April 2011 transmittal letter include:

Paragraph 1 - 4 displays the value to be used in making major program determinations for each program covered by this guide. Update: Increased major program threshold from $300,000 to

$2,000,000 Paragraph 1 - 5 requires attribute sampling as the appropriate

sampling methodology. Minimum sample sizes are established and are mandatory to provide sufficient audit evidence and adequate audit coverage. Update: Made the attribute sampling requirements in Appendix A of

Chapter 1 applicable to all audits performed in accordance with the HUD Audit Guide


HUD Audit Guide - Chapter 1 – General Audit Guidance (continued)

Paragraph 1-5 (continued) The table below illustrates the minimum sample sizes in

Appendix A for testing compliance with HUD requirements. The minimum sample sizes assume no exceptions are expected.

For population ≤ 200, minimum sample sizes generally range from 5-20 items.

Importance/ Significance of the Attribute Being Tested

Confidence Level Tolerable Rate Minimum Sample Size for

Populations over 200

Low 90% 5% 50Low 90% 10% 25High 95% 5% 65High 95% 10% 35


HUD Audit Guide - Chapter 1 – General Audit Guidance (continued)

Paragraph 1-6 requires the auditor to telephonically contact the HUD OIG single audit coordinator if he/she becomes aware of fraud or illegal acts.

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.

Effective date: Chapter can be used upon issuance; requirements apply to audits of years ended on or after 9/30/11.


Chapter 7 – HUD-Approved Title II Non-supervised Mortgagees and Loan Correspondents Audit Guidance (April 2007)

Programs Related to Single-family and Multi-family Homes

[Currently under revision by HUD]


HUD Audit Guide - Chapter 7

■ Compliance Requirements:

Maintaining a quality control plan;

Maintaining branch operations;

Loan origination;

Loan settlement;

Loan servicing;

Escrow accounts;

Section 235 assistance payments;

Federal financial and activity reports;

Kickbacks; and,

Mortgagee approval requirements (including maintaining an acceptable adjusted net worth)

43


HUD Audit Guide - Chapter 7 (continued)

■ Example HUD Compliance Procedures – Chapter 7 Quality Control Plan – Each mortgagee is required to establish and

maintain a written quality control plan.• Obtain a copy of the quality control plan and compare to HUD

Handbook 4060.1 requirements• For example, sample size and loan selection requirements

• Determine procedures are in place to ensure that all employees involved in origination and servicing understand quality control policies and procedures

• Assess competence of quality control reviewers• Determine corrective actions for all deficiencies were promptly

initiated• Determine whether employees were notified of any deficiencies

and provided instructions to prevent reoccurrence

44



Branch Office Operations – Each branch office must be registered by HUD. The mortgagee is fully responsible to HUD for the actions of its branch offices. Brach office Facilities and Staffing Requirements can be found in HUD Handbook 4060, Chapter 2.• Determine whether all branches are registered with HUD

• Only branches that the audited entity uses to conduct FHA related mortgage operations are required to be registered with HUD

• Determine whether the branch is a true branch and is not a subsidiary, independent contractor or separate entity

• Mortgagee Letter 2011-34 rescinded the “ branch office facilities” requirements

Update: Mortgagee Letter 2011-34 –Paragraphs 2.11.A through 2.11.D and 3.2.A.9 of Handbook 4060.1 related to office facilities requirements have been rescinded

45



Loan Origination – Loans should be originated with the same care that would be exercised in originating a non-insured loan entirely dependent on the property as security to protect investment.

• Applicant’s personal information should be submitted directly to the HUD registrant and not passed through any interested party (e.g., realtor)

• For a sample of loans, review loan files to obtain evidence that applicant’s information was verified as required by HUD Handbook 4000.2

• For a sample of rejected loans, determine whether the rejection was made based on established criteria and the reason was provided to the applicant

FOLLOW THE NEW SAMPLING GUIDANCE

46



Loan Settlement – HUD has specified the types and amounts of additional charges and fees. Up-front mortgage insurance premiums should be remitted to HUD promptly.

Select a sample of HUD loans settled during the audit period and perform the following:• Test the mathematical accuracy of Form HUD-1• Review appropriateness of fees and charges

collected• Review supporting data to establish escrow accounts• Examine canceled checks to ensure the mortgagee

remitted mortgage insurance premiums to HUD

47



Loan Servicing - Loan servicing procedures are to be followed consistently and should not vary. The lender should have an organized means of periodically identifying the payment status of delinquent loans.• For a sample of delinquent and defaulted loans, determine whether

loan file documentation reflects the delinquent status• Review evidence that mortgagee made a reasonable effort to

communicate with mortgagor and determine the cause of default• Review procedures for handling partial payments• Determine compliance with HUD’s Loss Mitigation program and

Foreclosure Relief Program• Determine procedures for paying mortgagee insurance premiums

to HUD• Test insurance claim amounts on a sample basis

48



Section 235 Assistance Payments – HUD sends assistance payments to the mortgagee; mortgagee must meet other continuing eligibility criteria; the mortgagee must secure re-certifications of income, family composition and other items.

Instances of mortgages under this program should be rare!

49



Federal Financial and Activity Reports – Mortgagees are required to ensure that financial status, single-family default monitoring and reports required under the Home Mortgage Disclosure Act (HMDA) contain reliable data and are presented in accordance with the terms of the agreement between the entity and HUD.• Understand the process of preparing financial and activity reports• For a sample of reports, determine if the reports were prepared in

accordance with HUD instructions• Trace significant data to supporting documentation on a sample

basis• Review significant adjustments to general ledger balances affected

by HUD-assisted program activity

REPORTS REQUIRED TO BE FILED BY MORTGAGEES CAN BE FOUND IN HUD HANDBOOK 4330.1, CHAPTER 7, 41552.1

CHAPTER 3, AND ML 95-3

50



Kickbacks – kickbacks and similar payments are prohibited.♦ On a sample basis, test whether disbursements are

supported by invoices and were not for an unreasonable amount

♦ Determine whether any fees or compensation paid are prohibited by the Real Estate Settlement Procedures Act

♦ Consider whether fees paid or other type of payments, observed during the review of loan origination and loan settlement documents, represent kickbacks

♦ Determine if other suggested procedures in the HUD Audit Guide are applicable to your circumstances

51



Mortgagee Approval Requirements – A mortgagee should have and maintain required adjusted net worth in eligible assets.• Test whether the levels of adjusted net worth, liquid

assets, fidelity bond coverage and errors and omissions bond coverage meet the applicable requirements of HUD Handbook 4060.1 and ML 2010-20

.

52


LASS Electronic Submission


LASS Electronic Submission

See HUD Audit Guide Chapter 7 (7-4B and 7-4C) for LASS electronic submission requirement

Not Relevant for small supervised lenders

LASS collects the following information:

1. Financial Data Template (FDT) – Data from the balance sheet, operations and

equity statement, cash flow statement, net worth statement, and liquidity statement


LASS Electronic Submission (continued)


2. Data Collection Form (DCF) – Basic information regarding the lender’s

recertification such as fiscal year end data, audit period covered, lender and auditor information, and the type and details of the audit opinions and findings

Signed audit opinion report, internal control report, and compliance reports must be attached as portable documents in a PDF file format




3. Notes and Findings – Collection of the lender’s footnotes

accompanying the financial statements, and if applicable, the schedule of findings and questioned costs and lender’s corrective action plan.

These documents must be attached as portable documents in a PDF file format.



Single Family Housing Lender Assessment Subsystem (LASS) User's Manual (updated as of October 2009)

Section 5.10 – For Independent Public Accountants, Completing Agreed-upon Procedures (Online)

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/lass/lass_usermanual





The responsibility for the electronic submission rests with the lender.

To assure the accuracy and completeness of the data within LASS, auditors are required to perform a separate agreed-upon procedure engagement. In general, the auditor must compare the electronic

data in LASS to the hard copy of the basic financial statements, footnotes, audit reports, and FDT.

This procedure should be performed under AICPA SSAE No. 10.



To assure the accuracy and completeness of the data within LASS, auditors are required to perform a separate agreed-upon procedure engagement.

To perform these procedures, auditors must register

with HUD’s Secure Connection system for a user ID and password, as well as obtain a Unique Independent Public Accountant (IPA) Identifier (UII).

For further information about obtaining a user ID, passwords, and UII, refer to the LASS User Manual


LASS Challenges

The LASS template has not been formatted for a supervised lender.

Supervised lenders and many independent auditors are not familiar with the LASS template.

New requirements include submitting the Q4 Call Report; should be labeled to indicate that it is not subject to audit or agreed-upon procedures.

Auditors are required to issue an agreed-upon procedure report related to LASS template data (embedded in LASS and issued in hard copy).

As a result of the above, significant amounts of time are expended by supervised lenders and their auditors.

60


LASS Challenges (continued)

Key issues to consider when trying to format the LASS FDT for supervised mortgagees:

Several changes to GAAP have evolved since the LASS template was formatted.

The FDT reflects a classified balance sheet; assets and liabilities are classified as either current or non-current.

The primary liabilities of a supervised generally include deposits and borrowings, for which the FDT does not include specific line items. As a result, “other assets” and “other liabilities” will be significant (current/long-term?).

61



Cash Flow DataFDT is based on changes in current and non-current

assets and liabilities. The cash flow data also does not reflect certain

significant sources and uses of cash flows for a supervised mortgage.

Many cash flow auto-fills do not correspond to a GAAP presentation.

To the extent that a supervised mortgagee’s assets, liabilities or cash flows do not fit a specifically identified line item in the FDT, a supervised mortgagee is required to make judgments as to how to report such assets, liabilities or cash flows.

62



HUD Financial Data Template Line Definitions Guide

Find at: http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12651.pdf

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12651.pdf

http://portal.hud.gov/hudportal/documents/huddoc?id=DOC_12651.pdf


Annual Filing Requirements - ML 2011-25


Annual Filing Requirements - ML 2011-25 Due to logistical issues relating to filing electronically on LASS without financial statements or an agreed-upon procedures report, HUD will accept manual filing from small supervised lenders:• Two copies of each report must be submitted.• Cover letter with FHA lender/mortgagee ID number that claims the

exemption for supervised lenders under the April 7, 2011 waiver must be included.

• FHA lender/mortgagee ID number must be written on the upper right-hand corner of each separate document.

• All lenders must pay the annual fee and submit the annual certification online via the FHA Connection.

• Lender's recertification will be considered "submitted" from the date of receipt of mailed reports by FHA's Office of Lender Activities and Program Compliance.

• HUD is revisiting the manual process in early January 2012.

65


Annual Filing Requirements – ML 2011-25 (continued)

• Mail to (USPS):Office of Lender Activities and Program Compliance

Attention: Jason Boldin

490 L'Enfant Plaza East, S.W.

Suite 3214

Washington D.C. 20024

• Courier address:Office of Lender Activities and Program Compliance

Attention: Jason Boldin

451 7th Street, S.W.

Room B-133 – P3214

Washington D.C. 20024


Resources


RESOURCES

HUD.GOV

GAO Government Auditing Standards (The Yellow Book) http://www.gao.gov/yellowbook

AICPA Standards (http://www.aicpa.org/Research/Standards/Pages/default.aspx)

AICPA Audit Guide, Government Auditing Standards and Circular A-133 Audits

AICPA Governmental Audit Quality Center (GAQC)• Main page: www.aicpa.org/GAQC• HUD Information Page:


http://www.gao.gov/yellowbook

http://www.gao.gov/yellowbook

http://www.aicpa.org/Research/Standards/Pages/default.aspx






http://www.aicpa.org/GAQC




What You Will Find on GAQC HUD Information Page

AICPA GAQC• HUD Information• GAQC Alerts, Web Events. Links to Illustrative Audit Reports, an

d Other Resources

• HUD News (Current and Archive) • HUD Consolidated Audit Guide • Illustrative HUD Audit Reports • Submission and Audit Requirements for PHAs and Multifamily P

rogram Participants

• HUD Offices Relevant to HUD Audits and Related Background on FASS and LASS

• AICPA HUD Related CPE • Directory of Helpful Web Sites

http://www.aicpa.org/INTERESTAREAS/GOVERNMENTALAUDITQUALITY/RESOURCES/HUDINFORMATION/Pages/default.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationGAQCAlerts.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationGAQCAlerts.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationNews.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationHUDConsolidatedAuditGuide.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/IllustrativeAuditorsReports/Pages/USDepartmentofHousingandUrbanDevelopment(HUD)ReportIllustrations.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/SubmissionforPHAsandMultifamilyPrograms.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/SubmissionforPHAsandMultifamilyPrograms.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationHUDOfficesRelevanttoHUDAudits.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationHUDOfficesRelevanttoHUDAudits.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationAICPAHUDRelatedCPE.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/HUDInformation/Pages/HUDInformationDirectoryofHelpfulWebSites.aspx


Archived GAQC Web Event

To help you learn more about the Yellow Book in more detail (open to the public)• The 2007 Yellow Book: What a Beginner Needs to

Understand• This archived Web event will be helpful to staff working on for-

profit audits and dealing with a Yellow Book audit requirement for the first time and other staff working on governmental or not-for-profit organization audits that are new to the Yellow Book or want a refresher.

• No CPE available for viewing the archive

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/Pages/The2007YellowBookWhataBeginnerNeedstoUnderstand%E2%80%93MemberWebEvent.aspx

http://www.aicpa.org/InterestAreas/GovernmentalAuditQuality/Resources/Pages/The2007YellowBookWhataBeginnerNeedstoUnderstand%E2%80%93MemberWebEvent.aspx


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understanding hud audit and reporting issues for 2011 audits of supervised mortgagees a governmental...

Documents

understanding hud audit

consolidated audit guide

fhaapproved mortgagees

aicpa service center

fha programs

approved participants

processing requirements

presentation slides