Project-Based AccountingA strategy for Public Housing Agencies to Convert to HUD's New Project-Based Management System
HUD's new Proposed Rule on the Operating Funds makes two significant changes to the Public Housing Program. First, it introduces a new formula for determining Public Housing Operating Subsidies. Secondly, it redirects the focus of the Public Housing Program from an "Agency" focus to a focus on the operating and financial management performance at the "Property" level. The new Proposed Rule on the Operating Fund requires:
Property-based funding- Under this system, HUD will calculate and obligate the operating subsidy at the property level, rather than simply fund the agency as an entity. Each property will receive a formula-determined Project Expense Level (PEL), based on the unique property characteristics.
Property-based accounting- Public Housing Agencies (PHAs) will be required to submit year-end financial statements to HUD for each property (income and expense statement, and balance sheet). Also, PHAs will be required to utilize a new fee-for-service approach for the treatment of overhead costs and centrally provided property management services. Additionally, extensive adjustments to cost accounting systems will be required.
Property-based monitoring- HUD will monitor performance (fiscal, physical, management, and customer satisfaction) on a property-by-property basis.
How We Can Assist Public Housing Agency Managers and HUD
- Financial statements, program, and other audits
- Development and implementation of project-level cost accounting systems
- Preparation and migration to Project Based-Accounting
- Development of project-based budgets and strategies for cost recovery
- Development of compliant inventory and maintenance systems
- Staff training and development of policies and procedures
- Assistance with Capital Fund Financing Program and Section 8 Voucher management
- Assistance with a broad range of HUD-related issues
Some of Our Relevant HUD Experience
- Audit of HUD's Mark-to-Market Program
- Financial advisors to HUD's Capital Fund Financing Program
- Project-based Section 8 Billing Studies for HUD
- Monthly compliance reviews under HUD's Management and Marketing Program
- Compliance review of a PHA Moving to Work Program
- Financial management of a troubled PHA
- Accounting support to HUD's 4 HOCs