We Understand the Complexity

Managing a housing authority comes with a unique set of challenges. From navigating evolving HUD regulations and complex programs to operating with limited staff and overseeing multiple entities and audits—it’s a demanding role that requires focus, expertise, and resilience. At Smith Marion, we’ve worked with housing authorities for decades. We understand the pressures you face and are here to provide reliable, informed support. Whether it’s audit preparation, compliance guidance, or strategic planning, we’re ready to help you manage the details—so you can stay focused on serving your community.

PHA

SPECIFIC SUPPORT

Audit.

There’s no need to stress about your housing authority audit. Our team understands the complex requirements unique to public housing and brings years of experience delivering accurate, timely audits you can rely on. We go beyond the numbers—offering insights to strengthen your accounting procedures (within independence standards) and working with a flexible schedule that respects your time and responsibilities. At Smith Marion, we’re here to support your mission by making the audit process as smooth and efficient as possible.

Fee Accounting.

At Smith Marion, we know fee accounting plays a vital role in the success of housing authorities. Our team is well-versed in HUD requirements and delivers tailored support to meet your unique financial reporting needs. From budgeting to compliance, we provide accurate, timely service that helps you stay organized and confident. With us, you get more than a vendor—you get a knowledgeable partner committed to helping you strengthen your financial operations and serve your community.

Education.

Staying current in the ever-changing world of affordable housing can be challenging. That’s why Smith Marion offers customized training designed to keep your team informed and prepared. Whether it’s new HUD requirements or industry best practices, our education services are built around your needs—so you can stay ahead of changes and support your team with confidence.

Year End Close.

Year-End Close Closing out the fiscal year requires accuracy, organization, and attention to detail. At Smith Marion, we support housing authorities with a clear and structured year-end close process—reviewing general ledgers, providing adjusting and closing entries, and preparing audit-ready work papers. We also handle HUD-required FDS submissions to help maximize your FASS and MASS scores. With our experienced team on your side, you can move into your audit with confidence and clarity.

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.