What Do Auditors Look For?
Bank statements present a clear picture of the household's financial activity over time. During an affordable housing audit, these records are reviewed for the following purposes:
Even if employment verification letters and pay stubs are demonstrated, it should be noted that they are not enough without bank records. Some income—like gig work or cash payments—is usually revealed only through deposits.
What Happens if the Bank Statements Are Missing?
It should be recognized that a missing bank statement does not delay just one file. In most audits, particularly a tenant file audit, one incomplete document can be a real issue for the entire project. The consequences might be outlined as below:
Within this context, affordable housing providers usually necessitate applicants to present at least two to three months of statements from every account linked with household members.
What If the Tenant Has No Bank Account?
It is true that some households remain unbanked. When this is the case, auditors expect alternate forms of income as well as asset documentation—like money order receipts and letters explaining cash-on-hand, or a sworn statement. Such alternatives are accepted only when they are well-documented. Consistency in documentation is important as well.
What Is the Role of Construction Accounting Services?
Although construction accounting services do not intervene in tenant income reviews, they become vital when housing audits go beyond tenant files. Projects that leverage strong construction accounting methods typically pass the financial component of audits with ease. Once job costing in construction is tracked correctly, it lowers exposure during a HUD audit or when bonding in construction is evaluated. Contact Dimov Audit to schedule your initial consultation for affordable housing audit requirements.
