Finding Text
2024-2 – Management and Maintenance of Financial and Accounting Records Statement of Condition Management is required to maintain the accounting books and records in accordance with generally accepted accounting principles and HUD regulations. During the period November 1, 2024 through December 31, 2024, we were unable to obtain sufficient accounting records maintained in accordance with generally accepted accounting principles and HUD regulations as well as sufficient appropriate audit evidence to enable us to express an opinion on the financial statements. Criteria Management is required to maintain the accounting books and records in accordance with generally accepted accounting principles and HUD regulations. Effect Failure to properly/adequately maintain accounting records is a violation of HUD regulations and resulted in a disclaimer of opinion for the 2024 audit. Cause The Board transitioned the management of the property over to a new management agent beginning November 1, 2024 and the new management agent did not provide or maintain the accounting records in accordance with generally accepted accounting principles and HUD regulations. Recommendation The Board and management should hire an accountant with HUD experience to help correct the books and records in order to comply with HUD regulations and to conform with generally accepted accounting principles. Management/Owner Response The Board agrees with the findings is taking action to correct the findings and implement the recommendations.