Financial Assessment of Multifamily Housing (FASS-MF) Archive
- Schedule of the Status of Prior Audit Findings, Questioned Costs, and Recommendations
There will be a system release on May 30th to update the Schedule of the Status of Prior Audit Findings. Accounts S2800-005 (Previous Finding Reference Number) and S2800-030 (Report Period) will be eliminated. Account S2800-020 (Narrative) will be renamed to “Finding.” Account S2800-020 (Status) will be reconfigured to be a text field instead of a drop-down box. Active submissions with a status of Validated or CPA Attested will be reverted back to a draft status on May 30th and will need to be re-validated with the new account changes, so we encourage owners to make their final submissions before May 30th. Please note, these changes only affect profit-motivated/limited-distribution owners filing in accordance with IG2000.04.
- Clarification of Notice H2013-23
Housing Notice H2013-23 allows profit-motivated owners that receive less than $500,000 in combined federal financial assistance to file owner-certified financial statements in lieu of audited statements. The $500,000 threshold applies to owning entities and not to individual projects. If an owner owns more than one HUD assisted project then the federal awards threshold would apply to all Section 8 contracts and HUD mortgages owned by the entity. Combined federal financial assistance is calculated the same as it is for OMB A133 nonprofit audits. Instructions for the calculation can be found here.
- Schedule of the Status of Prior Audit Findings, Questioned Costs, and Recommendations
The revised IG2000.04 Audit Guide instructs auditors to report on the status of prior year audit findings and also to report on the status of audits, studies, or reviews conducted by HUD OIG, HUD management, a contract administrator or any other federal agency that directly relate to the current year audit. Unfortunately the current chart of accounts within FASSUB was not set up to capture anything other than prior year audit findings. Until FASSUB is modified to accept this additional level of reporting we ask that submitters populate the accounts within the schedule as follows when entering information about reports from other sources:
Acct. No. Account Title Populate as follows S2800-005 Previous Finding Reference Number List the calendar year in which the external report was issued: ex: 2013 S2800-010 Narrative Describe any findings and resolution actions. S2800-020 Status Populate with Cleared or Outstanding S2800-030 Reporting Period Populate with the first day of the fiscal year, ex: 01/01/2013 - Reminder for the Upcoming FASS-MF Submission Deadline April 2014
User IDs are disabled in Secure Systems after 90 days of inactivity. In addition, passwords expire every 90 days as well. With the large volume of financial statements expected for the deadline at the end of April, 2014, please ensure your ID and password work as soon as possible. If you need your ID activated or your password reset, please contact REAC’s Technical Assistance Center at 888-245-4860 or email REAC_TAC@hud.gov. Thank you.
- Revised Industry User Guide
The FASSUB system has been updated as of February 14, 2014 to allow profit-motivated and limited distribution owners receiving less than $500,000 in federal financial assistance to submit owner-certified financial statements. This is in accordance with Housing Notice H2013-23. Appendix B of the Industry User Guide has been updated with all of the account numbers and data definitions applicable to this new submission type.
- Office of Multifamily Housing (MFH) Provides Clarification of the 2011 Regulatory Agreement
MFH created a document that provides clarification to the definition of Surplus Cash contained in the 2011 HUD Regulatory Agreement. This document is available in our FASS-MF Library. This definition only applies to owners that signed the revised 2011 version of the HUD regulatory agreement.
- Housing Notice H2013-23
Housing Notice H2013-23 was issued on August 8, 2013. This notice allows profit-motivated and limited distribution owners that receive less than $500,000 in federal financial assistance to submit owner-certified financial statements instead of audited financial statements. The FASSUB system is scheduled to be updated on February 14, 2014 to accommodate these submissions. If you are submitting an owner-certified financial statement for a project that falls under these guidelines you will not be able to begin the submission process until after the new system release in February. A copy of Notice H2013-23 can be found on the HUD Multifamily website at: /program_offices/administration/hudclips/notices/hsg.
- FASSUB System Release on December 6, 2013
The Real Estate Assessment Center implemented a new release of the FASSUB system on December 6th. New accounts were added to the submission templates to be in compliance with revisions to the HUD Consolidated Audit Guides, Handbook IG2000.04. The revised IG2000.04 requires additional accounts to be added to the Schedule of Findings and Questioned Costs and eliminates two auditor reports (Auditor’s Report on Non-major Programs and the Auditor’s Report on Affirmative Fair Housing). To access the revised Consolidated Audit Guide please go to the following link: http://www.hudoig.gov/reports-publications/audit-guides/consolidated-audit-guides.
- Accounting Requirement for Housing Notice H-2012-14 - Housing Notice H-2012-14 was published on August 3rd of 2012. This notice requires certain owners to offset future Housing Assistance Payments with residual receipts. Below is a link to a FAQ document that addresses the suggested financial reporting methodology owners should use when reporting these transactions.
- NEWS ALERT: HUD has updated the Internet Explorer Browser from 6.0 to 7.0. If you are experiencing difficulties logging into Secure Systems please use the following web links:
/program_offices/public_indian_housing/reac/reac_securityUser's Quick Reference Manual
If further assistance is needed, do contact the Technical Assistance Center, on toll-free 888-245-4860. Thank you! - Attention All Users
The following are changes that were made to the industry user guide for the April 27, 2012 release:
- Account S3600-015 was added to appendixes E and appendix F.
- Account S3600-020 was renamed from Reportable Conditions Indicator to Significant Deficiencies.
- The Editing and Business rules for account 5120 were changed.
- The account definition/reporting reference for accounts 5300 and 6900 was changed.
- Management Letters
Chapter 1 of the latest Office of Inspector General Audit Consolidated Audit Guide for Audits of HUD Programs (Handbook IG2000.04, Rev. 2, Chg. 10, pg. 1-2) states:
Any management letter must be submitted directly to the HUD office providing
funding/services to the auditee as part of the reporting process. When reporting through an
electronic system is available, such management letter should be included in the filing.
The FASS-MF system currently does not have an account/data field specifically designated to transmit the management letter. Until REAC is able to modify the system and create a new account, submitters are asked to transmit the management letter in one of the following accounts:
S2200-040 Comments on Internal Controls
S2300-040 Comments on Noncompliance (major programs)
S2400-040 Comments on Noncompliance (non-major programs)
These accounts are part of the schedules for Report on Internal Controls, Report on Compliance – Major Programs, and Report on Compliance – Non-major Programs respectively. The submitter should use the account most applicable to the issues discussed in the letter (e.g. if the letter primarily discusses compliance issues related to major programs then it should be submitted in account S2300-040).
- To all Independent Users:
This is to forewarn you that you may experience issues when logging into the HUD Secure System due to lack of activity on your account. HUD technical staff is working to resolve this issue over next quarter and you will receive follow-up notification on that. To avoid delay in
meeting the next quarterly filing deadline, please contact your Coordinator to ensure well in advance that you have the right roles and actions assigned to your Independent UserID and your UserID is active under the HUD Secure System. If you have any questions,
please contact us at 1-888-245-4860 or send us an email at REAC_TAC@hud.gov.
- Attention: Industry User Guide for the Financial Assessment Subsystem - FASS-FHA for Profit Motivated /Limited, Distribution Entity that is other than a Cooperative Corporation
- Attention: Industry User Guide for the Financial Assessment Subsystem - FASS-FHA for a Non-Profit Entity that is other than a Cooperative Corporation
- Reporting Requirements for Cooperative Owners The Office of Asset Management has determined that all HUD insured and/or assisted cooperatives must submit financial statements audited in accordance with OMB Circular A-133 for the fiscal year ending 12/31/09 and thereafter. On December 31, 2009 the Office of Asset Management ran a production utility that changed the mortgagor type of all cooperative owners to a nonprofit. Beginning January 1, 2010 cooperative owners were no longer be able to file audits under the Inspector General's Consolidated Audit Guide IG2000.04. Audits for cooperative owners must now be filed under OMB Circular A-133. Here is a link to the Housing memorandum: Clarification of Filing Requirements for Audited Annual Financial Statements for HUD Insured/Assisted Cooperatives.
- On December 31, 2009 the Office of Asset Management will run a production utility that will change the mortgagor type of all cooperative owners to a nonprofit. Beginning January 1, 2010 cooperative owners will no longer be able to file audits under the Inspector General's Consolidated Audit Guide IG2000.04. Audits for cooperative owners will have to be filed under OMB Circular A-133.
- Clarification of Filing Requirements for Audited Annual Financial Statements for HUD Insured/Assisted Cooperatives.
- The Verification screen in FASSUB requires submitters to verify certain critical information that is pulled from HUD's IREMS database (e.g. reporting period, mortgagor type, tax identification number, etc.). It is very important that this information be checked for accuracy and that any errors be corrected before a draft submission template is created. If financial statements are submitted with inaccurate reporting periods or other incorrect information then we must archive them and the owner must resubmit. If there are errors in ownership information the owner must correct these errors in the Active Partners Performance System (APPS). Instructions are available at http://www.hud.gov/offices/hsg/mfh/apps/appsmfhm.cfm.
If there are errors in the reporting period you should contact your local project manager.
- Passwords for secure systems expire in 90 days if they are not used. Don't wait till the last Minute! Please test your password and if it needs to be reset contact the REAC Technical Assistance Center via email at REAC_TAC@hud.gov.
- Disappearing Accounts
- Accounting Guidance for M2M Projects
- Office of Asset Management Memorandum Concerning Leased Nursing Homes
- User IDs Disabled after 90 Days of Inactivity
- Secure Systems - Multiple Users Now Prohibited from Using Same ID
- Terminology Changes in Response to SAS 112
- REAC recently changed the name of two accounts
- Updated Guidance for Changes in Owner Fiscal Year End
- Technical Assistance Available via Email
FASS-MF has been notified that during peak submission periods callers often experience lengthy hold periods when contacting REAC Technical Assistance Center (TAC). To circumvent this issue, we recommend sending your questions to the TAC via email at REAC_TAC@hud.gov. TAC representatives contact customers directly by email or phone. When emailing TAC please specify in the subject line that you are inquiring about a FASS-MF reporting problem.
- Disappearing Accounts
In recent months FASSUB users have been experiencing instances in which accounts disappear after the user adds the supporting detail. After researching this problem we have concluded that these anomalies occur most frequently when several details are added at once and saved in masse rather than adding and saving the details one at a time. While we realize that it takes a little longer to add and save details one at a time, we encourage users to do it this way in order to avoid validation problems and the potential loss of data. When accounts disappear it requires us to archive the submission and the user must start over.
- Accounting Guidance for M2M Projects
The Office of Assisted Housing Preservation (OAHP) has developed an interactive Excel Spreadsheet which summarizes accounting guidance specific to Mark-to-Market (M2M) and Demonstration projects. The spreadsheet (along with all of the OAHP accounting letters) are available at the following site: http://www.hud.gov/offices/hsg/omhar/mhrowner.cfm The spreadsheet can be accessed via the link entitled, "Excel Workbook."
- Office of Asset Management Memorandum Concerning Leased Nursing Homes
On January 11, 2008 the Office of Asset Management issued a memorandum concerning financial statements for leased nursing homes. The memorandum states that due to technical problems lessee financial statements will not be required to be submitted electronically for the December 31, 2007 fiscal year. Lessees with a regulatory requirement to submit financial statements must submit them in hard copy format to their local Multifamily Program Center. Financial statements for lessors must continue to be submitted electronically. For additional information please contact your local Multifamily Program Center.
- User IDs Disabled after 90 Days of Inactivity
Starting November 1, 2007 Secure Systems is implementing a policy that all user IDs will be disabled after 90 days of inactivity. All users must log on at least once every 90 days to avoid having their IDs disabled. If your account is disabled please contact the Technical Assistance Center at 888-245-4860 to reactivate it.
- Secure Systems - Multiple Users Now Prohibited from Using Same ID
Beginning December 09, 2007 you will no longer be allowed multiple logins into Secure Systems. This means if you are logged into FASSUB and attempt a login using the same ID on a different computer, your first login session will be terminated.
- Terminology Changes in Response to SAS 112
In response to SAS No. 112, the names of accounts S2200-020, S3500-020 and S3600-020 will be changed from 'Reportable Conditions Indicator' to 'Significant Deficiencies Indicator.' These changes are scheduled to occur in early February.
- REAC recently changed the name of two accounts
in an effort to improve financial reporting. The name of account 1200 - 'Miscellaneous Prepaid Expenses' was changed to 'Prepaid Expenses.' This account should be used to report prepaid taxes, insurance, mortgage insurance premiums, or any other prepaid expenses. The name of account 1520 - 'Intangible Assets' was changed to 'Deferred Financing Costs.' This account should be used to report amortizable fees/expenses incurred in the construction or refinance of a project.
- Updated Guidance
for Changes in Owner Fiscal Year End The guidance below supercedes previous guidance sent March 6, 2006.
Changes in an owner's fiscal year end must be coordinated between the local project manager and REAC. When you call into the REAC Technical Assistance Center (TAC) on 1-888-245-4860, advise the TAC generalist to collaborate the call down to the Business Center of FASS-MF. At this point there is no basis for a generalist to refer the caller to the MF Systems Helpdesk (e.g., TAC should not refer you to the MF Systems Helpdesk). Failure to coordinate these changes with REAC will result in erroneous annual financial statement (AFS) reporting periods. The FASS-MF team in REAC must modify the 'From' date on the first AFS after a change of fiscal year. FASS-MF in REAC must also override overdue tracking to prevent an erroneous referral to the Departmental Enforcement Center. Please understand that FASS-MF has a window of 30 days from the date of the e-mail flag, to do an override. If the 30-day window is missed, the owner will be referred to the DEC as a non-filer.
- Transfers of Ownership - Financial Reporting
In a transfer of ownership, the old owner's (seller's) audit should cover the period from the beginning of the fiscal year through the day before the transfer. In most states ownership is legally transferred on the date the deed is signed. The new owner (buyer) is responsible for reporting from the date of the transfer through the end of the new owner's fiscal year.
Under no circumstances should the seller's audit 'zero out' fixed assets, cash, or reserve accounts because the seller is responsible for reporting up to the day before the transfer. For additional information, please refer to the Office of Asset Management Memorandum dated 6/22/04 listed below under 'Important Update' and click on 'read more.
- FASS-MF offers a new M2M Link
to OAHP (Office of Affordable Housing Preservation), formerly OMHAR. This site provides Q & A on accounting and auditing issues unique to Mark-to-Market (M2M) properties, an e-mail address for specific questions, and other useful information. Please click the link: http://www.hud.gov/offices/hsg/omhar/mhrowner.cfm
- Asset Management Update
The Office of Asset Management has updated the 'Submission and Review Requirements and REMS Critical Data Fields for Annual Financial Statements (AFS). Read More...