National Equity Fund

Mini Audit in Lieu of Full Audit

NEF continuously strives to make the year-end reporting process more efficient for all parties involved. Based on feedback received, one of the major obstacles new Partnerships face is being able to prepare the cost certification as soon as possible in effort to submit the final audit by the submission deadline, if the Partnership places in service during the fourth quarter of the partnership’s first fiscal year.

In an effort to help ease this obstacle, NEF implemented a ONE-TIME mini-audit in lieu of a full financial audit option. A mini-audit is less in scope than a full financial audit as it is the performance of substantive procedures on material account balances of the Partnership in order to substantiate our investment recorded on the balance sheet at the fund-level. This great opportunity is only available to Partnerships that begin and completely place in service during the fourth quarter.

NEF will contact each mini-audit eligible Partnership directly via email. The Partnership will be asked to declare its election to participate in the mini audit program OR engage a NEF approved CPA to prepare a full financial audit by the submission deadline to avoid late reporting fees as provided for in the respective Limited Partnership Agreement/Operating Agreement. The late reporting fee will not be assessed for Partnerships electing the mini-audit option provided there is complete cooperation in submitting the mini-audit work papers and other documentation requested by the NEF Fund Auditor as well as the submission of the final cost certification and final tax return by the deadline.




The following mini-audit work papers, as they apply, should be uploaded via the CPA Portal as “Mini Audit Work Papers” by the submission deadline to allow sufficient time for the Partnership’s CPA to prepare and submit the Tax Return by the deadline.

  1. Partnership Trial Balance as of fiscal year end date (10/31/xx or 12/31/xx)
  2. Partnership General Ledger from Inception through the fiscal year end date (10/31/xx or 12/31/xx)
  3. Partnership Bank Statements & Reconciliations for all cash accounts as of the fiscal year end date (10/31/xx or 12/31/xx)
  4. Partnership Loan Statements (or Loan Agreements, if soft debt) for all loans as of the fiscal year end date (10/31/xx or 12/31/xx)
  5. Partnership Material Fixed Asset Additions
  6. Partnership Security Deposit listing as of the fiscal year end date (10/31/xx or 12/31/xx)
  7. Partnership Accounts Receivable and Other Receivable schedules as of the fiscal year end date (10/31/xx or 12/31/xx)
  8. Partnership Accounts Payable and Other Payable schedules as of the fiscal year end date (10/31/xx or 12/31/xx)
  9. Partnership Rent Roll as of the twelfth period (October or December)
  10. Partnership Insurance and Tax Invoices
  11. Partnership Legal Invoices
  12. Partnership Material Expenses
  13. Partnership GAAP Depreciation and Amortization Schedules as of the fiscal year end date (10/31/xx or 12/31/xx)
  14. Partnership Loan Closing Statement
  15. Partnership Final AIA document completed for the fiscal year ended
  16. Partnership First AIA document completed in the next fiscal year
  17. Additional documentation as deemed necessary

Tracey LeGrand will be the liaison between NEF’s Fund Auditor(s) and the Partnership to facilitate the mini-audit process. If you have questions or concerns regarding this process please contact Tracey rather than contacting the NEF Asset Manager. We are also available to discuss this option, questions and/or concerns you may have regarding this great opportunity, if needed.