There are certain questions you should ask when looking for a LIHTC auditor
Finding the right LIHTC auditor is more than just Googling the term online. Let’s consider the answer to some questions that one should ask before deciding on an auditor or firm.
- What’s the difference between an LIHTC and a standard Housing Authority?
- Do you need two different auditors for both your LIHTC concerns and HA concerns, or can you find an auditor who understands how to successfully navigate both worlds?
- What type of LIHTC audit do you have?
The difference between an LIHTC and a standard Housing Authority
Low Income Housing Tax Credits (LIHTC) are a for-profit entity with a 12/31 year-end meanwhile a standard Housing Authority is a quasi-government entity that can have a fiscal year-end of any quarter approved by HUD.
Using one or several auditors for both your LIHTC and HA concerns
The question is, Do you need two different auditors for both your LIHTC concerns and HA concerns, or can you find an auditor who understands how to successfully navigate both worlds?
In short: No, you don’t need two different auditors. There are firms that exist that understand both Low Income Housing Tax Credits and Housing Authority audits. There are firms that exist that generally will have a significant amount of clients and audits in both of these areas.
Understanding which type of LIHTC audit you have
LIHTC audits can come in many forms so it’s important for you to know which type of LIHTC audit you have. Consider the following scenarios to help you better understand the type of audit you have:
- Do you have a straight run-of-the-mill LIHTC with nothing but outside investors?
- Do you have RAD convert LIHTC with PRBA or PBV mixed into the formula?
- Do you have a LIHTC with RAD and HOME funds all mixed together to make one super fun audit (that’s accounting sarcasm)?
- Will the new entity be a discretely presented component unit?
Thinking about the questions to these answers will help you determine if your Housing Authority auditor has the experience to take on the additional audit or if you should consider splitting the audits up.
So, do you want to have two auditors or just one auditor? At SMCo, our team of expert auditors are happy to walk you through your options.
Don’t want to wait? Give Chad Porter a call at our Brentwood office in Tennessee! You can reach him at (951) 415-7284 or drop him an email at firstname.lastname@example.org.