Current Premiership clubs, as well as those vying for promotion from League One, have known since last summer they must be in a position to meet the minimum ground facilities criteria by 31 May, 2006.
For those clubs who fail any section of the audit, but still want a place in the Premiership, there will be a meeting set-up with the WRU to discuss how their standards can be raised to the required level in time for next season.
If a club agrees to carry out the necessary work then they will be subject to on-going progress checks during the summer to determine whether or not they meet the standards required to participate in the Premier Division next season. If they do not, then they will drop down into Division 1.
"We have been working hand in hand with the clubs in raising standards across the board in the Principality Premiership. We worked together to devise the criteria and the time-scale was agreed together almost a year ago," explained WRU chief executive Steve Lewis.
"We have undertaken facility and financial audits at all Premiership clubs and the results have now been sent to them. The Division 1 clubs will receive their reports next week.
"We now have all the information we need to make our judgments as to whether clubs have clearly passed, passed with conditions attached or failed. For those who have clearly failed, and who cannot use the extra time to match up, then they will lose their place in the Premiership next season and be relegated to Division 1 regardless of their finishing position.
"The same applies to teams in Division 1 who might qualify for promotion. They will only be able to achieve promotion if they meet the criteria.
"I has been extremely heartening to note that the standard of submissions, documents supplied and facilities works already carried out by the clubs has been beyond all expectations. The personnel within the clubs have worked tirelessly with the audit team to achieve the necessary standards and the exercise has already made a big difference.
"Everybody is in agreement that the size of the Premiership needs to be reduced to increase the quality of the rugby in the division. That's why the numbers will be reduced from 16 to 14 next season and from 14 to 12 for the 2007-08 season.
"Improving standards in the Premiership is about more, much more than merely analysing the end of season playing statistics. We want to promote a quality product played in a quality environment. The aim is to heighten the competitiveness on the field, attract more fans to watch because of improved facilities and hopefully increase the sponsorship potential.
"The Premiership is fundamental to the sustainability of the professional game in Wales. It has a huge role to play in bridging the gap between the community and professional games.
"Being a semi-professional rugby club is not about short term success on the playing field. It is about having a clear purpose, sound structures, standards and procedures and about sustainability. Clubs at this level need to have a clear understanding of their role in the overall scheme of professional and regional rugby in Wales."