The Rural Housing Service (RHS) is revising its existing regulations regarding financial reporting to establish risk thresholds, align requirements with HUD and reduce program operating costs to RD and its borrowers. This rule is effective November 24, 2017 and is optional in FY-2018 and will be mandatory in FY-2019. Additional highlights of the rule include:
- Removes RD requirements for an engagement that examines record using agreed upon procedures (AUPs) established by RD as part of the annual financial reporting requirements
- Non-profit borrowers that receive less than $750,000 in assistance and for-profit borrowers that receive less than $500,000 in assistance are not considered to be high-risk. These owners will submit owner certified prescribed forms using the accrual method of accounting.
