A letter from the Lake Limerick Board of Directors – Audit Status Update – September 2023
Audit Status Update | September 2023
Dear Lake Limerick Members,
In 2022, the membership voted in favor of completing an audit. It was a milestone for our community. Prior to the 2022 vote, an audit has not occurred in over a decade.
Like the community, the Board of Directors is committed and eager for the completion of the audit. We look forward to learning and sharing the results.
Here are the answers to some questions we’ve heard about the process.
What is an audit?
An audit is an on-site fiscal verification activity. Our HOA’s financial records will be examined for compliance and if funds are being appropriately accounted, declared, and documented.
Who does the audit?
Lake Limerick will contract with a Certified Public Accounting (CPA) firm that provides an external, independent analysis of the organization’s internal financial controls and financial position. It is best practice to have an external auditor or fiscal entity perform an organization’s audit. This protects against bias or internal conflict of interest.
What can an audit tell us?
An audit provides reasonable assurance of our HOA’s financial position and integrity. It will verify if we are in compliance with regulations and protect us by revealing if we have risk of fraudulent financial practices.
Why is it taking so long?
Audits occur in three main phases: prep, fieldwork, and reporting.
The prep phase has required intensive effort by Lake Limerick staff and volunteers (Board Treasurer). This is due in large part to not having an audit in the last decade. Our accounting works for day-to-day operations, but it has not been streamlined to support preparing for an audit. In the last two months, we were also simultaneously preparing our taxes, had a fiscal employee move on, and preparing the HOA’s Operating and Reserves Budget (included with your ballot). Our diligence in the prep phase did take time and was a requirement from any outside entity before they take over. The good news is that our bookkeeping system and controls are better prepared for future audits. We still believe that an accounting firm will be selected soon, and our hope is the results will follow on a reasonable schedule.
| Status | Action |
| Complete | Ledger consolidation across our fiscal platforms. |
| Complete | End-of-year fiscal activities; business financial statements finalized and filed. |
| Complete | Taxes prepared and filed |
| In-process | LLCC to submit financials to accounting firms to obtain quotes for work. |
| Not yet started | Review quotes from auditing and accounting firms; make selection. |
| Not yet started | Audit fieldwork to commence |
| Not yet started | Audit report received by Lake Limerick |
Will the results be shared with the community?
Yes. The auditor’s report will be shared with the community.
We trust that an audit will reveal concerns, risks, or opportunities. In fact, we rely on the audit to identify needed improvements or issues to address. We hope that our fiscal management practices will be confirmed as sufficient, however we are prepared to learn from, and resolve, any findings.
Audit updates are reported at every monthly Board of Directors Meeting. Meeting notes and upcoming meeting dates can be found at https://lakelimerick.com/.
Sincerely,
LLCC Board of Directors
