Cal. Code Regs. Tit. 22, § 54413 - Financial Reporting
(a)
The adult day health care provider shall maintain financial records on an
accrual basis and shall submit to the Department an annual audit performed by
an independent certified public accountant. All verified financial statements
shall be filed with the Department as soon as practical after the close of the
center's fiscal year, and in any event, within a period not to exceed 90 days
thereafter. The Department may grant exceptions to this time limit, for good
cause.
(b) The audit report
prepared by the independent certified public accountant shall include a table
of contents and at least the following:
(1) A
balance sheet reflecting the assets, liabilities and net worth of the adult day
health care provider at the close of the fiscal year under audit.
(2) A statement of income and expenses
reflecting all sources and amounts of income and expenses.
(3) A statement of changes in financial
position, reflecting the adult day health care provider's sources and
applications of funds and the net increase or decrease in working capital for
the fiscal year just ended.
(4) All
notes relating to the financial statements specified in (1), (2) and
(3).
(5) A statement that the audit
was conducted in accordance with generally accepted auditing standards and,
further where in the accountant's opinion, the financial statements fairly
present the financial position, results of operations and changes in financial
position in conformity with generally accepted accounting principles applied on
a consistent basis. If the accountant is unable to express an unqualified
opinion, this shall be stated in his report and the report shall specify the
reason or reasons.
(6) Financial
statements shall be public records.
(c) Upon the Department's written request,
the adult day health care provider shall authorize the accountant to allow
representatives of the Department to inspect any and all working papers
relating to the preparation of the audit report, including notes, computation,
work sheets and rough drafts at the accountant's place of business during
normal business hours. The accountant's costs of producing records for
inspection and the costs incurred in the reproduction of documents shall be
borne by the Department.
(d) When
delivery of adult day health care is dependent in part upon affiliates,
combined financial statements shall be prepared, and as a minimum disclose:
(1) The financial position of the provider
separate from the combined totals.
(2) Inter-entity adjustments and
eliminations.
(3) An independent
accountant's opinion in writing, indicating why combined statements are not
appropriate.
(e) A
quarterly report shall be submitted by the center to the Department. The report
shall include:
(1) A balance sheet.
(2) Revenue and expenses by cost center,
including but not limited to salaries and staff benefits by work
classification, equipment, contracts, consultation, training and travel. Cost
centers shall include:
(A) Medical and
nursing.
(B) Physical
therapy.
(C) Occupational
therapy.
(D) Speech
therapy.
(E) Psycho-social
services.
(F) Nutrition.
1. Transportation incidental to provision of
meals.
2. Nutritional
counseling.
(G)
Supportive services.
1. Recreation.
2. Art, music and dance therapy.
3. Services not included in other cost
centers.
(H)
Administration.
1. Office supplies and
equipment.
2. Postage.
3. Furniture.
4. Publications and printing.
5. Liability insurance.
6. Telephone, telegraph.
7. Reproduction.
8. Legal consultation.
9. Audit expenses.
10. Rent.
11. Utilities.
12. Maintenance.
(I) Space.
1. Rent or mortgage payment.
2. Facility insurance.
3. Utilities.
4. Housekeeping supplies and
equipment.
5. Maintenance supplies
and equipment.
6.
Repairs.
7. Facility license
fees.
8. Janitorial
service.
(J)
Transportation.
1. Insurance.
2. Parking fees.
3. Overnight storage fees.
4. Vehicle license fees.
5. Purchased transportation
services.
6. Vehicle
supplies.
7. Vehicle
maintenance.
8.
Amortization.
(2) Such financial records shall be filed
with the Department as soon as practical after the end of the licensee's fiscal
quarter and, in any event, within a period not to exceed 30 days
thereafter.
(f) Every
affiliated company shall:
(A) Furnish, upon
request, to the provider and to the Department financial reports relevant to
the disposition of funds paid to the affiliated company by the provider.
Reports shall be:
1. Prepared in accordance
with generally accepted accounting principles.
2. Provide all financial data required by
provider to fulfill its obligations to the Department for financial
reporting.
(B) Make all
books and records available for inspection by the Department and the United
States Department of Health, Education and Welfare for a term of at least four
years.
(g) Each adult day
health provider shall maintain adequate financial resources to carry out its
obligations. The level of such resources shall be determined for each provider
by the Department and shall include, but will not necessarily be limited to,
the following:
(1) Ability to meet current
obligations when due.
(2) Revenue
and expense trends.
Notes
Note: Authority cited: Chapter 1066, Statutes of 1977. Reference: Chapter 1066, Statutes of 1977.
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