Title Page
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Property / Building Name
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Program Manager
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Registered Address
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Auditor
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Conducted on
FHA-Approved Lenders Audit Finding Reporting
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All material instances of noncompliance with any HUD requirement or regulation, significant deficiencies and material weaknesses in internal controls, instances of fraud or illegal acts, or contract violations that were disclosed during the audit process must be reported as findings in the audit report.
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All non-material instances of noncompliance, deficiencies in internal control, instances of fraud or illegal acts, or contract violations<br>relating to HUD programs disclosed during the audit process may be reported to management in a separate communication outside of the audit report.
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Noncompliance, deficiencies, or instances of violations, which were corrected during the audit process or after the fiscal year under audit or disclosed as a part of the audit process before the end of the fiscal year under audit and before the issuance of the audit report, must be included in the report as resolved findings or in a management letter, depending on their materiality, regardless of whether they were found to be material or immaterial FHA compliance issues.
Content of Finding
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Findings are to be presented in accordance with the standards and requirements of the Government Auditing Standards.
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A finding should be supported by sufficient, competent, and relevant evidence.
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A finding should be presented in a manner to promote adequate understanding of the matters reported and provide convincing<br>but fair presentations in proper perspective.
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Each finding is to be accompanied by a corrective action plan prepared by the lender.
Corrective Action in Process
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Many times when lenders are presented with draft findings, they will start to take action to correct the deficient condition. When this action is underway and the auditor has completed his or her fieldwork, the lender may include the action completed and the action remaining to be taken in the lender’s comments and in the corrective action plan.
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Regardless of whether the lender is in the process of correcting the finding, the auditor is to include the finding in the report with all<br>required elements.
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Test the documentation supporting the reviews and the reports of the TPOs and determine the accuracy and reliability of the reviews and reports.
Corrective Action Completed
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Many times when the lender is presented with draft findings, it will start to take action and complete that action, correcting the deficient condition before the completion of the fieldwork. When this action occurs, the finding is still to be included in the audit report with all required elements.
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The action taken or completed should be included in the lender’s comment section and should be validated by the auditor.
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The recommendation section should follow the lender’s comment section, and the auditor should indicate whether any of the information is inconsistent with or in conflict with the report’s findings.
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The auditor could include any additional recommendations he or she believes are necessary based on the testing of that action.
Completion
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Additional Comments
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Auditor Name and Signature
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Program Manager Name and Signature
