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2� 1 ��43� shal� be provided o�dema.r�d. A�� anrival-financial reports furnish�d t� HUI]req�ired herein shall be furn�shed in accordance with 24 �.F.R. 5.841 and other Pragra�. �b�igatio�s, and shall �nc�ude a certifica��on �n content and form�rescribec�by HUD and cer�xf�ed by B�rrawer. �b� In addition, except as.otherw�se provided in this Section 2�, annual financial reports s�al� be aud�ted in accordance with�enerally Accepted Auditing Standards (�AAS� and �avernment Auditing Standards (GA�), and certified by a certified pub�ic accauntant��censed or certif�e�by a regu�atary authority�f a state or other political subdivisinn af the United States, which auth�r�ty makes such certified public accauntant subj ect to regulations, disc�plinary measures, or c�des of eth�cs prescribed by IaW. Suc�i certified public accountant must ha�e no bus�ness relationship with B�rrow�r other than for the provision of tax cansulting and return pr�paration and auditing services. (c� Any Non-Pr�fit Borrower sha�l submit aud�ted ar�nual financ�a� repar�s, as applicab�e, pursuant to federa� not�ce (e.g., �ff ce of Management and Budget �ircular A-�3 3�. H�wever, notWithstanding any additional time provided for Non-Profit Borrowers ta submit audited annual financial reports, su�h Borrowers shall sti�l be required to submzt unaudited annual financial reports pursuant to Section 2�(a�, except that, for Borrowers that elect to submit their required audited annual financial reports early ��.e. within the time specified in Section ��(a}}, the requirement to submit unaudited annual f�nar�cial reports shali be wa�v�d. (d� If B�rrower fa�ls t� submit an�annual financial report required by this Section Z� within n�nety (9�} days of the required due date, HUD, at its so�e el�ctian, and w�thout relieving Borrawer of its requir�ment t� fi�e such report, may thereafter�xamine, or cause to be examined at Borrow�r's ex�ense, the boo�s and records of Borrower and the Project for purposes of preparing a report of the operatians of the Project f�r HUD's use. (e} Auditing costs and tax return preparation c�sts may b� charged as Reasonable �perating Expenses only to the extent they are required of B�rraw�r�tself by state law, the Internal Revenu� Service �"IRS"}, the Se�ur�t�es and Excha.r�ge �ommission, or HUD. Neither IRS audit costs nor costs �f tax return preparat��n for partners, members, shareholders, Principals or Affi��ates of Borrower are considered R�as�nab�e �perating Expenses. IV. PR�JECT MANA�EMENT. �1. PRESERVATI�N, MANAGEMENT AND MAINTENANCE �]F THE M�RT�A�EI] PR�PERTY. Borrower(a} shal� not c�mmit ar permit Waste, (b} shall not a�and�n the Mortgaged Property, (c} shall rest�re or repa�r promptly, or cause to be restored or repaired promptly, in a good and Wor�man�ike manner, any damaged part of the Pr�j ect to the equ�valent�f xts original candit�on, or such ath�r condition as HUD may appr�ve in writing, Whether�r not litigation�r insurance proceeds or condemnation awards are ava�lab�e t� cov�r any costs of such restoration or repair, and �d} shall keep, ar cause to b�k�pt, the Praject in de�ent, safe, sanitary condition and good repair, including the replacement of Personalty and F�xtures W�th items �f equal �r better function and qua�ity. �bligatians �a� through (d� of this Sect�on 2� are abso�ute and unconditional and are not limited by any conditions precedent and Pre�ious versi�ns obsolete Page'�6 of 3fi form HUD-9246fi-�RGF �061��4}