August 2024 CT

PROCEDURE REPORTS... from page 14.

So where do these procedures come from? It is the board of the association that provides the accountant with the list of procedures or calculations they would like to have performed and based on those procedures the accountant will calculate an amount that may be due from the developer. The report is then used as part of the transition negotiation process. As we all know, board members are volun teers that are not experts in this field.

“It is the attorney that guides the board as to what procedures they would have the accountant perform.”

This is where the association’s attorney is critical. It is the attorney that guides the board as to what procedures they would have the accountant perform. The accountant should be very careful to remain independent during this process and not give any opinions to the board as to what procedures should or should not be performed. The accountant can give a list of the most common procedures done but not make any decision on them. This is even more critical if the accoun tant is also the association’s auditor. Attestation standards that all CPA firms are required to abide by, do not allow it. One recommendation is to have the whole process done through the association’s attorney so as to

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AUGUST 2024