Real Estate Assessment Center
Summary of Financial Reporting and
Auditing Guidance for HUD Multifamily
Program Participants and Independent
Auditors
Table of Contents
Real Estate Assessment Center........................................................................................... 1
Introduction: Background and Purpose of the Guide ................................................. 2
1.1
Background..................................................................................................... 2
1.2
Purpose............................................................................................................ 3
1.3
Scope............................................................................................................... 3
Accounting Requirements........................................................................................... 5
2.1
Background..................................................................................................... 5
2.2
Maintain Books and Records in Accordance with HUD Requirements......... 5
2.3
HUD Requires the Application of GAAP....................................................... 6
2.4
Maintain Records in Reasonable Condition for Audit.................................... 6
2.5
REAC Standard Chart of Accounts ................................................................ 6
2.6
Tenant Security Deposit Account ................................................................... 7
2.7
Replacement Reserve Account ....................................................................... 7
2.8
Residual Receipts Account ............................................................................. 7
2.9
Excess Rental Collections............................................................................... 8
Financial Reporting Requirements ........................................................................... 10
3.1
Background..........................................................................