UUnder the Reform and Integrity Act of 2022 ( RIA ), the U . S . Citizenship and Immigration Services ( USCIS ) must audit each designated Regional Center at least once every five years . i Stakeholders in the EB-5 space have been navigating the audit process and aiming to identify trends that Regional Centers are seeing . This article will discuss various aspects of Regional Center audits and the standards that USCIS adheres to when conducting an audit . Something important to keep
|
in mind is that the Reform and Integrity Act is equally novel to auditors as it is to regional centers undergoing an audit . Additionally , Regional Center models vary , posing challenges for the auditors to think objectively about each Regional Center they visit . Regional Centers can help mitigate this challenge by clearly documenting and explaining their unique business models and internal processes , ensuring auditors understand how their operations align with regulatory requirements . |
Auditing Standards Applicable to EB-5 Regional Center Audits
As of April 23 , 2024 , USCIS began applying Generally Accepted Government Auditing Standards ( GAGAS ), also known as the Yellow Book , to plan and perform Regional Center audits . ii USCIS announced that it would generally use GAGAS , and such general application of these standards does not remove an officer ’ s discretion in considering the audit results in making adjudicatory decisions .
|
The Government Accountability Office (“ GAO ”) is responsible for producing these standards , and to date , the 2018 Yellow Book is the effective version until the implementation of the 2024 Yellow Book , for periods beginning on or after Dec . 15 , 2025 . Early implementation of the 2024 Yellow Book is permitted . iii
The 2024 revision of GAGAS contains major changes from and supersedes the 2018 version . USCIS has not announced which version it is using while conducting Regional Center
|