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Negative HAP Equity

Sep 12, 2016 11:51AM MDT

I have a single program PHA in Illinois that administers only Section 8 Housing Choice Voucher Program.

Based on the income and expenses throughout the year, the PHA would technically have a negative HAP equity as of 12/31/15. In preparing the REAC submission, the negative HAP equity causes a validation error on the FDS balance sheet, but not on the FDS income statement.

Based on that, and other audit procedures performed, it is obvious the PHA used admin funds to support HAP payments. Here is my questions:

How should this be reported on the REAC submission? Would it be considered and admin expense and hap revenue on the FDS line 11170 and 11180?

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Les Sparks AHACPA Sep 13, 2016

Patrick, in your case, HUD wants you to show the transfer to HAP from Admin. I am attaching some slides that are very new and just added to our PHA training program. You are going to have to do something to remove the negative HAP equity. I think the slides you need start on about slide 50. There is a detailed discussion there on your choices.

Les

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Kathy Christensen AHACPA Sep 13, 2016

Patrick,

Here is the link to the PHA Training Slides.

Kathy

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