Concerned about your next audit?

Let us take the complexity out of the process.

Our team of experts specializes in audits for Housing Authorities and Non-Profits, ensuring compliance, transparency, and confidence in your financial health.

  • Ensure regulatory compliance
  • Gain peace of mind with accurate audit reporting
  • Focus on serving your community, while we handle the audit

We help you to avoid..

  • Surprise audit deficiencies or findings
  • Non-compliance with HUD or non-profit regulations
  • Financial misstatements
  • Delays in financial reporting
  • Stress during the audit process

Three Simple Steps

  1. Complete an Interest Form
  2. We Connect
  3. Receive a Timely, Low-Stress Audit

Partner with our audit professionals to ensure your Housing Authority or Non-Profit meets compliance standards without stress.

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We help you to avoid..

At Smith Marion, we specialize in providing audit services for Housing Authorities and Non-Profits. With our deep understanding of HUD regulations, OMB Uniform Guidance, and other non-profit compliance requirements, we offer comprehensive services that ensure accuracy, transparency, and compliance with all applicable regulations.

Whether you need an annual financial audit, a single audit, or reviewed financial statement, our team is dedicated to helping you identify risks, improve financial reporting, and meet regulatory expectations. We also offer guidance on how to improve your internal controls and financial processes to enhance your organization’s efficiency and long-term sustainability.

Here’s How to Get Started

  1. Fill Out the Interest Form
    Tell us about your organization, your goals, and the challenges you’re looking to solve.
  2. Connect
    A specialist will reach out to learn more about your situation and discuss how we can support your goals.
  3. Strengthen Your Organization’s Strategy and Performance
    Take the first step by completing the interest form. Our consulting team provides guidance on strategy, leadership, systems, and organizational performance so you can move forward with clarity and confidence.
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What Makes Smith Marion’s Audit Services Different?

At Smith Marion, we understand the unique challenges that Housing Authorities and Non-Profits face when it comes to audits. Compliance with HUD regulations, OMB Uniform Guidance, and other specific requirements can be overwhelming, but our team is here to help guide you through the process. With our deep expertise in these sectors, we provide audits that ensure compliance and financial transparency.

Managing audits independently can feel daunting, especially when considering regulatory complexities. That’s why we take a tailored approach to audit services, designed specifically to meet the needs of Housing Authorities and Non-Profits. Our experienced auditors work closely with your team to ensure a smooth, efficient audit process while minimizing disruptions to your operations.

Our specialized audit services include financial statement audits, single audits, and internal control assessments. Whether you’re a small non-profit or a large Housing Authority, we provide the expertise needed to stay compliant and secure.

We’re here to help you:

  • Ensure full compliance with HUD and non-profit regulations
  • Identify risks and improve internal controls
  • Deliver transparent, accurate financial reporting

Ready to simplify your audit process?

Start by scheduling a call and accessing our Audit Preparation Guide to see how we can assist you. Together, we’ll ensure your organization is audit-ready, compliant, and positioned for financial success.

NPO Audit FAQs

Selecting the right auditor is a critical decision for any nonprofit organization. Organizations should evaluate nonprofit audit experience, knowledge of nonprofit accounting standards, understanding of grant compliance, service approach, communication style, fee structure, and ability to meet deadlines. Nonprofits should request proposals, interview firms, and confirm the firm is a licensed CPA firm with current peer review reports available for review.

A nonprofit organization may consider switching auditors to obtain a fresh perspective, address service quality or timeliness concerns, improve communication, or obtain specialized nonprofit or grant compliance expertise. Regular evaluation of your nonprofit audit relationship ensures it continues to meet organizational needs.

A nonprofit audit may be required by state law, grant agreements, loan covenants, donor requirements, or regulatory agencies. Many nonprofits also voluntarily obtain audits to demonstrate transparency, financial stewardship, and accountability. If no external requirement exists, a nonprofit financial review may be sufficient.

A audit provides reasonable assurance and includes testing, confirmations, walkthroughs, and evaluation of internal controls. A review provides limited assurance and consists primarily of inquiry and analytical procedures.

The nonprofit audit process typically includes a planning phase and a fieldwork phase. The full process generally takes several weeks, depending on the nonprofit’s financial complexity, preparedness, and internal controls.

Nonprofit audit documentation typically includes bank reconciliations, general ledger detail, grant agreements, payroll records, board minutes, investment statements, invoices, receipts, financial policies, and internal control documentation.

Yes, auditors are required to communicate significant deficiencies, material weaknesses, material misstatements, and areas needing improvement to nonprofit management and governance.

No, auditors use sampling and risk-based procedures to focus on areas with the highest risk of error, fraud, or noncompliance.

Yes, auditors may prepare nonprofit financial statements as a non-attest service. Nonprofit management must review, understand, and accept responsibility for the financial statements.

Nonprofit management is responsible for maintaining accurate financial records, implementing internal controls, providing documentation, overseeing financial reporting, and signing the management representation letter.

The nonprofit board or finance committee oversees the audit process, communicates with the auditors, reviews findings, and approves the final nonprofit financial statements.

Nonprofit audit fees depend on organizational size, complexity, internal controls, reporting requirements, and compliance obligations.

Auditors are required to report suspected or confirmed fraud to nonprofit management and governance. Additional investigation and corrective action may be required.

A Single Audit is required when a nonprofit expends $750,000 in federal funds for fiscal years prior to September 30, 2025, and $1,000,000 for fiscal years ending on or after September 30, 2025. A Single Audit includes additional compliance testing under Uniform Guidance.

Audited nonprofit financial statements form the foundation for Form 990 preparation and impact multiple disclosures and governance reporting sections.

Nonprofit organizations may provide additional documentation or explanation when they disagree with an audit finding. Federal programs may require a formal corrective action plan.

Issuance depends on timely fieldwork completion, resolution of questions, and nonprofit management review and approval.

Yes, a nonprofit audit identifies opportunities to strengthen internal controls, financial processes, and risk management practices.

Auditors are required to reassess risk annually, even when nonprofit operations appear unchanged.

The management letter provides recommendations for improving internal controls, governance practices, and operational processes within the nonprofit organization.

Nonprofits should maintain timely reconciliations, organize documentation, update financial policies, address prior recommendations, and strengthen internal controls throughout the year.

Yes, auditors may provide technical guidance, accounting education, compliance support, and best-practice recommendations throughout the year while maintaining independence requirements.

Nonprofit auditors may provide education, technical guidance, best-practice recommendations, and compliance insight. They may explain standards, discuss accounting options, review draft schedules, and advise on internal controls.

Auditors cannot make management decisions, approve journal entries, prepare source documents, operate financial systems, or assume responsibility for internal controls.

Yes, auditors can explain requirements and review conclusions, but nonprofit management must make decisions, select assumptions, design processes, and execute implementation.

Auditors may propose adjustments and explain proper accounting treatment, but nonprofit management is responsible for preparing and recording entries.

Yes, auditors must communicate all non-attest services and the safeguards applied to maintain independence to those charged with governance.

Routine questions are typically part of ongoing service. Larger advisory projects may require additional fees, which are communicated in advance.

No, independence is maintained when auditors avoid management decisions, ensure nonprofit management retains responsibility, and apply appropriate safeguards.

Nonprofits should contact their engagement partner or manager. Complex matters may require scheduled meetings and supporting documentation.

Yes, early communication helps ensure proper nonprofit accounting treatment and reduces year-end corrections and compliance risks.

Significant accounting decisions and judgments should be communicated to nonprofit governance. Routine clarifications generally do not require board involvement.

HUD & Housing Authority Audit FAQs

GAS stands for Government Auditing Standards. These standards govern audits of government entities and organizations receiving government funds and require enhanced rigor in ethics, independence, professional judgment, and accountability beyond Generally Accepted Auditing Standards (GAAS).

A Yellow Book audit refers to an audit conducted in accordance with Government Auditing Standards (GAGAS), issued by the U.S. Government Accountability Office (GAO). These standards strengthen accountability, transparency, and oversight of public funds for government entities and organizations that receive federal funding.

Yellow Book audits are required when organizations meet federal expenditure thresholds triggering a Single Audit, when mandated by local, state, or federal law or regulation, when required by grant agreements, or when specified by funding agencies.

A Yellow Book audit must be performed by an independent external audit organization, typically a licensed CPA firm or qualified government audit office. The firm must comply with Government Auditing Standards, maintain strict independence, undergo peer review, meet CPE requirements, and document competence, independence, and due professional care.

Housing Authority REAC unaudited submissions are due two months after year-end. Audited submissions are due nine months after year-end. Federal Audit Clearinghouse submissions are due nine months after year-end or 30 days after receipt of the audit report. Some state agencies may require earlier submission deadlines.

A Single Audit is required under Uniform Guidance for entities that expend $750,000 in federal awards for fiscal years prior to September 30, 2025, and $1,000,000 for fiscal years ending on or after September 30, 2025.

Common causes include differences between FDS and VMS balances, incorrect HAP or port-in expenses, audit expense discrepancies, pension and OPEB reporting differences, missing or incorrect UML and UMA numbers, and significant interfund balances.

Common findings include lack of waiting list documentation, interfund balances related to public housing operations, missing inspections on move-in dates, and failure to follow procurement policies.

Common findings include failure to follow HQS inspection timelines, improper abatement of landlord payments, inadequate documentation of rent reasonableness, and missing waiting list documentation at voucher issuance.

Common findings include unsupported CFP draws, improper cash management practices, failure to follow procurement policies, and failure to submit HUD Form 53001 within required timelines.

Smith Marion completes the full FDS submission process, including data entry, validation, compliance review, certification, and submission to REAC in accordance with HUD requirements.

Yes. Smith Marion provides comprehensive support for HUD QA reviews, including issue analysis, documentation review, compliance validation, and preparation of formal written responses supported by reconciliations and documentation.

Federal Audit Clearinghouse submissions are due nine months after fiscal year-end or 30 days after receipt of the audit report, whichever occurs first.

The Rental Assistance Demonstration (RAD) program allows public housing authorities to convert public housing to long-term project-based Section 8 contracts, enabling asset preservation, financial stability, and improved housing quality for residents.

RAD enables access to private capital for rehabilitation, long-term Section 8 contract stability, preservation of housing units, improved living conditions, strong resident protections, and long-term financial sustainability for PHAs.

PBRA (Project-Based Rental Assistance) is administered directly by HUD through Multifamily Housing, while PBV (Project-Based Vouchers) is administered by local PHAs through the Housing Choice Voucher program under PIH. The programs differ in administration, funding flow, rent setting, unit caps, contract terms, and operational control.

The Moving to Work (MTW) demonstration program allows participating agencies flexibility in how they use Section 8 and Section 9 funding while maintaining statutory protections, compliance requirements, and resident protections.

Contact Us

Let’s connect to discuss how we can support your business goals and help you navigate your financial journey with confidence.