September 2009 Developments - 69

HOAs HOAs Governing Your Timeshare (cont) fraud. In addition to inquiries, the auditor is required to communicate with those charged with governance, all fraud regarding senior management, including fraud causing material misstatements. (SAS 99) • The auditor is required to communicate, in writing to management and those charged with governance, any internal control weaknesses causing signiﬁcant deﬁciencies or material weaknesses. (SAS 112) • The auditor is required to disclose—in the audit report and in the notes to the ﬁnancial statements—that there is doubt about the association’s ability to continue as a going concern, if applicable. (SAS 59) While SAS 114 does not require that the communication be in writing, it must be documented properly if communicated verbally. Given the importance of the matter as well as the intent of the Standard, I would recommend that this communication be in writing to ensure a thorough understanding by all of the parties involved in the audit process. Operations Operations Operations From Disaster Comes (cont) After approval by the board and Hilton Grand Vacations, the plan immediately began bringing more efﬁciency to the decision-making process and keeping everyone well informed of the resort’s progress. New dates for rehabilitating damaged units and resuming exterior repairs that had been underway when the storm struck were added, with all parties clearly understanding the timeline. This allowed for an aggressive schedule for returning to normalcy at The Surf Club. This strategic plan worked so well that with the current board, we have not only expanded its scope with additional projects but also extended the timeline out for three years. As items change or new dates are added, we update this timeline as our core document, and the board reviews and approves the updated plan. In previous years, such coordination required gathering multiple spreadsheets and documents. Now we’re able to quickly refer to a single timeline, saving time and energy while improving our operations. For all the damage it left behind at our peaceful 44-unit resort, at least Hurricane Wilma resulted in the development of this extremely valuable planning tool for The Surf Club. Bill Chandler is the board president of The Surf Club of Marco and on the ARDA HOA Outreach Committee. Sharry Luneke is the current resort manager of The Surf Club of Marco. Her e-mail is sluneke@hgvc.com. Additional Info & Resources To learn more about the SAS114 (Statement of Auditing Standards), check out: • The American Institute of Certiﬁed Public Accountants Web site: www. aicpa.org • Practitioners Publishing Company (PPC)’s Guide to Homeowners’ Associations: www.ppc.thomson.com Steven M. Brettholtz, CPA, is president of Myers, Brettholtz & Company, PA. His e-mail is Steve.Brettholtz@MBCOPA.com. September 2009 • Developments 69

September 2009 Developments

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