The audit will be performed in accordance with the following standards: GAAS: Generally Accepted Auditing Standards established by the AICPA. • GAGAS (The Yellow Book): Government Auditing Standards issued by the Comptroller General of the United States. • 2 CFR Part 200 (Uniform Guidance): Specifically, Subpart F (Audit Requirements) regarding federal awards. • GASB: All applicable pronouncements of the Governmental Accounting Standards Board. • HUD Guidelines: The HUD Consolidated Audit Guide for Audits of HUD Programs (Handbook 2000.04) and any current HUD Notices. 2. Core Financial Statement Audit The selected firm will be required to: • Perform an audit of the PHA’s basic financial statements (Statement of Net Position, Statement of Revenues, Expenses and Changes in Net Position, and Statement of Cash Flows). • Express an opinion on the fair presentation of the financial statements in conformity with GAAP. • Review and evaluate the PHA’s internal control structure over financial reporting. 3. The "Single Audit" (Compliance Audit) Since most PHAs expend more than $750,000 in federal funds annually, a Single Audit is mandatory. The scope must include: • SEFA Review: Examination of the Schedule of Expenditures of Federal Awards. • Compliance Testing: Testing compliance with laws, regulations, and provisions of contracts/grant agreements relative to federal programs (e.g., Public Housing, Housing Choice Vouchers/Section 8, Capital Fund Program). • Internal Control Testing: Evaluating internal controls specifically related to major federal programs to ensure compliance with federal guidelines. 4. HUD-Specific Requirements • REAC Submission: The auditor must agree to read the PHA’s electronic submission to HUD’s Financial Assessment Subsystem (FASS-PH) via the REAC system. They must attest that the electronically submitted data agrees with the audited financial statements. • Component Units: If the PHA has component units (e.g., non-profits created for RAD conversion or development), the scope must include the audit or consolidation of these entities. • Agreed-Upon Procedures (AUP): If the PHA requires specific AUPs regarding REAC scoring or electronic submission validation, this should be listed. 5. Required Deliverables Specify exactly what documents the auditor must hand over upon completion: 1. Independent Auditor’s Report: On the financial statements. 2. Yellow Book Report: Report on Internal Control over Financial Reporting and on Compliance. 3. Single Audit Report: Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance. 4. Schedule of Findings and Questioned Costs: Detailing any material weaknesses or significant deficiencies. 5. Management Letter: A separate letter communicating non-material findings and recommendations for operational improvements. 6. Data Collection Form: Completion and certification of the Data Collection Form (SF-SAC) for the Federal Audit Clearinghouse.
