DOZ provides annual audit services to over 4,100 entities that own affordable housing communities financed in part with capital contributions received from the sale of Low Income Housing Tax Credits (LIHTC). Our firm has become well known and respected nationally for its expertise relative to the LIHTC program. Affordable housing is our primary area of focus, and we understand the nuances of these complex transactions. Our professionals regularly attend industry conferences and events, and stay up to date on best practices and the ever-changing regulatory environment in which our clients operate. We are particularly experienced with the unique accounting and auditing concepts associated with LIHTC engagements, including:

• Compliance with entity formation documents (guarantees, cash flow uses, entity fees, etc.)
• Loan or grant documents (use restrictions, cash flow restrictions, etc.)
• Initial lease-up
• Development capitalization
• Compliance with provisions of Section 42 of the Internal Revenue Code
• Many of the operating entities we audit are financed with tax-exempt private activity bonds and the 4% LIHTC, which may include the use of highly complex derivative instruments.

DOZ specializes in audits performed in accordance with the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and for not-for-profit entities, the Single Audit Act Amendments of 1996, and the provisions of OMB Uniform Guidance. DOZ provides annual audit services to over 1,500 entities as required by the Single Audit Act Amendments of 1996, the provisions of OMB Uniform Guidance, and HUD. DOZ is experienced with for-profit and not-for-profit entities receiving all types of HUD assistance, including:

• Direct loans or grants under Sections 202 and 811 of the National Housing Act (NHA)
• Mortgages insured by HUD pursuant to Sections 221(d)3, 221(d)4, 223(a)7, 223(f), 231, 232 and 236 of the NHA
• Section 8 rental assistance for direct loan and insured properties, or project rental assistance contracts for properties that received Section 202 or 811 capital advances
• Interest credit agreements related to Section 236 mortgages before and after decoupling.

Our significant experience results in a staff that is well versed in the requirements of the Consolidated Audit Guide for Audits of HUD Programs (the Guide). We have created a streamlined audit approach that meets the Guide’s requirements but results in effective and efficient audits for our clients. DOZ professionals have also offered free seminars in various cities educating management agents on the latest revisions to the Guide and other periodic HUD changes.

In addition to this, and the affordable housing experience noted above, we have significant experience with ancillary community development programs in which not-for-profit organizations operate. Some of these programs include: 

• Affordable Housing Program Conditional Grants
• Affordable Housing Trust Fund Program Funding
• Community Development Block Grants
• Grants from the Department of Veterans Affairs, Department of Energy, and the Department of Health and Human Services
• Emergency Shelter Grants Programs
• Green Retrofit Program for Multifamily Housing Grants
• Housing Opportunities for Persons with AIDS
• HOME Investments Partnership Program Funds
• Neighborhood Stabilization Program Grants
• Section 4 Capacity Building for Community Development and Affordable Housing Grants
• Service Coordinator Cost Reimbursement Grants.

DOZ provides annual audit services to long-term care facilities that receive assistance from HUD. We use our extensive understanding of the long-term care industry to address the unique needs of our clients. Facility owners and operators will benefit from our access to financial institutions and understanding of the current lending market. We help our clients obtain financing assistance through a number of different HUD programs, including the HUD Section 232 Program. Some of DOZ’s services include:

• Annual financial statement audits
• Internal control reviews
• Lease agreement reviews
• Lessee compliance audits
• Property and business valuations

DOZ provides audit services to approximately 350 entities that receive assistance from the U.S. Department of Agriculture, Rural Development, and over 100 entities that receive assistance from numerous state agencies. These entities utilize a variety of RD programs including loans and/or rental assistance in accordance with Sections 505, 515, 521, and 538. DOZ’s experience in servicing properties in all 50 states has provided our staff with extensive experience with nearly every state Housing Financing Agency, Housing & Community Development Authority, Mortgage Finance Agency, Housing and Economic Development Authority and other lending and financing agencies. We are adept at working through agency audit guides and helping clients format and prepare financial statements that satisfy the various demands and requirements of federal, state, and local agencies and investors. Our staff is able to work directly with these agencies and investors to resolve questions or concerns to ease the burden on our clients.

DOZ commonly provides accounting services to construction and development companies as a result of our extensive experience in affordable housing. These entities are focused on developing and constructing affordable housing communities utilizing government assistance in some form through the equity generated from LIHTC, HTC, or rental and/or debt assistance through an aforementioned government agency. DOZ works with our clients to plan and monitor the requirements of the respective programs on each deal, along with maximizing the benefits to all parties.

In many instances, our services typically entail advising clients on accounting for consolidation of all of their entities. As is common in the affordable housing industry, our clients can have numerous consolidating variable interest entities in their portfolio which require a technical review of the company’s operations and the interests in lower-tier entities to ensure proper reporting treatment. As with any engagement, due to our experience and expertise with all levels of the affordable housing industry, DOZ is able to look at the operational aspects of our clients’ businesses to offer best practices advice in areas where opportunities can be capitalized across their portfolio.

DOZ has significant experience providing audit and tax services to not-for-profit organizations. Notably, DOZ prepares tax returns for and consults with over 600 exempt organizations. DOZ commonly works with not-for-profits engaged in various community development endeavors. Many of our initial not-for-profit clients came through referrals from organizations that oversaw the day-to-day operations of affordable housing projects.

Not-for-profit organizations face challenges similar to those of any other business. Some of the challenges include identifying the best use of resources available, remaining financially viable while operational costs continue to increase and revenues decrease. Not-for-profit organizations must also address a whole host of unique regulatory concerns.

We have the experience and technical expertise to identify and address the higher risk processes of your organization, such as the financial statement close process and eliminations, compliance with grant and funding documents, and consolidation of affordable housing entities.

DOZ has considerable experience auditing organizations receiving funding from various sources. A sample of some of the additional programs for which DOZ has experience is as follows:

• Affordable Housing Program Conditional Grants
• Affordable Housing Trust Fund Program
• Community Development Block Grants
• Department of Veterans Affairs – Homeless Providers Grant and Per Diem Programs
• Department of Energy – Weatherization Assistance Program Grant (Recovery Act Funded)
• Department of Health and Human Services – Communities Putting Prevention to Work Initiative Funding (Recovery Act Funded)
• Emergency Shelter Grants Programs
• Green Retrofit Program for Multifamily Housing Grants (Recovery Act Funded)
• Housing Opportunities for Persons with AIDS
• HOME Investments Partnership Program Funds
• Neighborhood Stabilization Program Grants (Recovery Act Funded)
• Section 4 Capacity Building for Community Development and Affordable Housing Grants
• Service Coordinator Cost Reimbursement Grants
• Supportive Housing for the Elderly
• Tax Credit Assistance Program (Recovery Act Funded)
• United Way of Central Indiana Engagement Center Awareness Campaign
• United Way of Central Indiana Homeless Prevention & Awareness, Outreach Training

DOZ’s experience in providing audit and accounting services is not limited to the single-asset entities that own affordable housing; we also provide these same services to the organizations across the country that own, manage, and/or develop the housing projects through their subsidiaries, offering a holistic approach to an organization’s accounting needs and providing economies of scale and efficiencies within the accounting process.

At the corporate level, we can provide the following reporting services:

• Audits of management companies
• Audits of development companies
• Audits of other corporate level entities

We are particularly adept at audit, tax, and advisory services for organizations that were created to:

• Expand affordable housing opportunities,
• Provide community development opportunities and/or services,
• Hold varying ownership interests in affordable housing in separate legal entities (limited liability company or partnerships),
• Require the review and application of consolidation and variable interest entity guidance, and in the case of consolidation, the elimination of material intercompany transactions,
• Provide management, asset, and/or development services to affordable housing entities; and
• Require financial statements that meet the needs of the Board of Directors and other stakeholders.

DOZ provides audit and consulting services to over 150 syndicated funds that have been formed to invest in properties that are eligible for the LIHTC and/or Historic Tax Credits (HTC). These are both single and multi-investor funds, and may require the consolidation of dozens of properties or adherence to equity method accounting principles. The partners in these funds include national, regional, and local banks, insurance companies, and various non-financial corporations. The funds audited by DOZ have invested approximately $2 billion in 700 operating entities.

DOZ understands that investor reporting deadlines are critical, and regularly adapts our requested documents and scheduled procedures as needed in the event lower tier audited financial statements or other information is not available in a timely manner. Engagements are planned to avoid surprises and missed due dates, and staff works to coordinate follow up to ensure receipt of lower tier audited financial statements, lower tier tax returns, and component auditor and peer review letters. 

Employee benefit plans are a vital part of today’s economic environment and provide many benefits to employers and their employees. Employers are under intense pressure as additional regulatory and reporting requirements must be followed for employee benefit plan audits. DOZ can help you maintain compliance with those requirements and do so at a competitive price. Some of DOZ’s services include:

• Defined contribution plan limited scope audits
• 401(k)
• 403(b)
• Form 5500 preparation