2022 Annual Audit - Comments & Problems

On Monday, October 16, I was finally able to inspect the 2022 Annual Audit.

The Audit was presented publicly to the Board at its June 6, 2023 board meeting, more than four months ago.

The Board might have received it before the end of April, with the Management Report (dated in April) that was mentioned by the Auditor on June 6th.

Comments:

The Auditor's name (Becca  Brendle, CPA) is not shown in the 2022 Annual Audit.

The Auditor's firm (Camp, Moring & Brendle, LLC) is not shown in the Audit.

The date of the Audit is not shown, only that it is for the year that ended 12/31/2022.

An important two-page letter from the auditing firm is included in the 2021 Annual Audit.

This important letter, bearing the name of the auditing firm and the auditor, is missing from the copy of the 2022 Annual Report given to me for inspection.

The letter is shown in the Table of Contents as Page 1. But it's not there!

While that letter is mostly boiler-plate, it is important. It contains the name of the Auditor and the name of the auditing firm. The real "meat" of the Audit is contained in the Management Report that accompanied the Audit. On June 6, 2023, Auditor Brendle mentioned a third document, in addition to the Management Report, but the HOA office has told the HOA's attorney that there is no third document. 

$1,845,285 Total Assets 12/31/22 (Audit)
$1,837,205 Total Assets (per CAMS statement)

$1,294,292 Total Assessments 12/31/22 (Audit)
$1,264,821 Total Assessments (per CAMS)

Did the Auditor catch that CAMS was basing the year's assessments (budget) on 2,475 homes ($1,262,250), instead of on 2.480 homes ($1,264,800)?
,
The 2022 Audit NOTE 2 Income Taxes discloses that in 2000 and 2022 the Association's income from nonexempt income was subject to tax. There was no tax (income) liability for 2022.

The 2021 Audit NOTE 2 Income Taxes disclosed that in 2019 and 2020 income from nonexempt income was subject to tax. There was no (income) tax liability for 2021.

The 2022 Audit states "Tax years 2020, 2021 and 2022 remain open with major tax jurisdictions."

The 2021 Audit states "Tax years 2019, 2020 and 2021 remain open with major tax jurisdictions."

Why are Tax Years 2020 and 2021 still open? Does "open" mean not filed yet or just the period of time during which IRS can question the return?

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