Date Published: August 2015
No. PRA Program Guidelines do not require that Owners conduct an A-133 audit. Note however, that if the Owner is a nonprofit organization and has expenses of $750,000 or more per year, the entity may be subject to an A-133 audit. However, this would be as a result of Office of Management and Budget Requirements, not HUD PRA Program requirements. See more on the Office of Federal Financial Management Single Audit web page.
The PRA Program does require the following regarding financial oversight of the Owner. The Cooperative Agreement, Section XVI b, states:
“Fraud Monitoring. Grantee is solely responsible for the administration, management and oversight of the Grant and the program as described in this Agreement, including monitoring Owners of Eligible Multifamily Properties. Grantee shall monitor Owners to ensure that program and audit requirements are met as delineated in 24 CFR part 85.”
The Rental Assistance Contract, Part II states:
“2.6 FINANCIAL REQUIREMENTS.
The Grantee is required to submit to HUD audited annual financial statements that comply with the requirements of OMB Circular A-133. The Grantee shall establish control measures with the Owner to meet the Grantee's financial requirements. The Owner agrees to the Grantee's control measures."