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201302390 16 17. BOOKS MAINTAINED BY MANAGEMENT AGENTS. The books and records of the Project maintained by management agents and Affiliates shall be maintained in accordance with Program Obligations and shall be open and available to inspection by HUD, after reasonable prior notice, during normal office hours, at the Project or another mutually agreeable location. Every contract executed on behalf of the Project with any management agent or Affiliate shall include the provision that the books and records of the Project shall be properly maintained and open to inspection during normal business hours by HUD at the Project or another mutually agreeable location. Upon the termination of a contract with management agent and /or Affiliates, the books and records of the Project maintained by the management agent and /or Affiliates shall remain with Borrower. 18.ANNUAL FINANCIAL STATEMENT. Within ninety (90) days, or such period established in writing by HUD, following the end of each fiscal year, Borrower shall furnish HUD and Lender with a complete annual financial report based upon an examination of the books and records of Borrower prepared in accordance with GAAP, audited in accordance with Generally Accepted Auditing Standards ( "GAAS ") and Government Auditing Standards ( "GAS ") and any additional requirements of HUD unless the report is waived in writing by HUD. If Borrower fails to submit the annual financial report within ninety (90) days of said due date, HUD may thereafter hire a certified public accountant to prepare the report at the expense of Borrower. The report shall include a certification in content and form prescribed by HUD and certified by Borrower. The report shall be prepared and certified by a certified public accountant who is licensed or certified by a regulatory authority of a state or other political subdivision of the United States, which authority makes the certified public accountant subject to regulations, disciplinary measures, or codes of ethics prescribed by law. The certified public accountant must have no business relationship with Borrower except for the performance of the audit and tax preparation unless HUD expressly authorizes other relationships. Auditing costs and tax preparation costs may be charged as an authorized expense to the Mortgaged Property only to the extent they are required of Borrower itself by state law, the Internal Revenue Service ( "IRS "), the Securities and Exchange Commission, or HUD. Neither IRS audit costs nor costs of tax preparation for Borrower's partners, members, shareholders, or other persons receiving Distributions from Borrower may be charged to the Mortgaged Property as a Project expense. Non - profit Borrowers are to follow audit requirements specified in OMB Circular A -133, as revised. IV. PROJECT MANAGEMENT 19. PRESERVATION, MANAGEMENT AND MAINTENANCE OF THE MORTGAGED PROPERTY. Borrower (a) shall not commit Waste, (b) shall not abandon the Mortgaged Property, (c) shall restore or repair promptly, in a good and workmanlike Previous editions are obsolete; Regulatory Agreement HUD- 92466M (Rev. 04/11) Replaces form HUD -92466 (11/02)