Don’t Lose Your Right to do Business with The US GovernmentJanuary 31, 2012
HUD Compliance rules and regulations you need to know.
Compliance with the rules and regulations will not only keep you out of trouble, it might also keep you in business. The U.S. Department of Housing and Urban Development (HUD) recently suspended a Philadelphia company from doing business with the US Government. The Philadelphia Company ran afoul of the regulations as they withdrew over $300,000 from the reserves along with several other actions that led to their immediate suspension.
There are several things you can do that will help you do business with the US Government:
- Financial Review Process
- Year end is the perfect time to review your compliance and make sure your financial house is in good order. As part of a good financial review process we recommend that you put together a list of reporting and compliance requirements (i.e. Insurance, Bonding, Debt to Equity, Net worth, Liquidity, Deposits, etc.) and review it at various times during the year.
Be aware of important deadlines
- December year-end—a number of compliance issues are fast approaching. The HUD Annual Financial Statement (AFS) is due 90 days after year-end.
- December fiscal year—the March 31st deadline is fast approaching.
- In addition to other year-end requirements, the surplus cash deposit is due 90 days after fiscal year-end.
Keep up with changes
- HUD has also made some changes to the electronic input forms for the Lender Assessment SubSystem which will affect the supplemental information in your financial statements.
KLR has experience with HUD programs, FHA Fillings, REAC Fillings, all agreed upon procedures and electronic submissions. We also have extensive cost certification and Section 811 experience and are familiar with all related compliance requirements. If you have worked with any of these programs and want to share your experiences, please comment below. If you have specific questions and would like to discuss, please email me at SRoss@Kahnlitwin.com.
Like this blog? You can find related information for your business on the KLR Business Blog.