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My housing authority has several different programs with different year-ends. What period should my financial statements cover?

April 26, 2017authority cover different ends financial statements HOUSING period Programs year

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My housing authority has several different programs with different year-ends. What period should my financial statements cover?

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While it is true that programs can have different reporting requirements based on different year-ends, the housing authority itself has only one fiscal year end. The financial statements should be based on the fiscal year end of the housing authority. The AICPA Audit and Accounting Guide “Audits of State and Local Governmental Units” addresses this issue specifically in the Statement of Position 98-3 (SOP 98-3). SOP 98-3 states that an audit performed in accordance with Circular A-133 should cover the auditee’s financial transactions for its fiscal year, which is not necessarily the same period of some of the programs being funded. Thus, the audit might include only a part of the transactions of a federal award, because some transactions may not occur within the period of the audit. Component units of the housing authority might be the only exception to the rule. Both GAAP Flyer 3 and GASB 14 address this issue.