Practitioners who provide services to clients with Canada Mortgage and Housing Corporation (“CMHC”) operating agreements are likely aware of the Agency for Co-operative Housing (the “Agency”). The Agency is the administrator of federal co-operative housing program and operates under contract with CMHC in several provinces, including British Columbia.
You can link to the Agency’s website here.
Annual Information Return
The Agency regularly requests auditors to complete an Annual Information Return (“AIR”). The purpose of the AIR is for the Agency to collect financial data to risk rate housing co-operatives and to monitor their compliance with their CMHC operating agreements. The AIR is due four months after the co-ops fiscal year and summarises the information in the financial statements in a standardized format. This allows the Agency to conduct, on an electronic basis, various tests to determine the degree of financial risk a co-op represents.
A downloadable Q&A about the AIR for auditors is available here.
Reporting on the AIR
The Agency provides a sample accountant’s report under CPA Handbook Section 9100 Reports on the results of applying specified auditing procedures to financial information other than financial statements to assist with reporting. In addition, the Agency provides the list of specified auditing procedures to be performed. Practitioners should be mindful that in conducting specified auditing procedures they must ensure they are meeting the performance and documentation requirements of Section 9100 and their own firm policies and procedures.
CPABC offers a professional development course on performing engagements in accordance with Section 9100.