§ 9771.81. Financial Statements.
8 CA ADC § 9771.81Barclays Official California Code of Regulations
8 CCR § 9771.81
§ 9771.81. Financial Statements.
(a) Whenever pursuant to these rules or pursuant to an order or request of the Administrative Director under the Code a financial statement or other report is required to be audited or be accompanied by the opinion of a certified public accountant, such accountant shall be independent of the licensee, determined in accordance with Section 602.02 of Financial Reporting Release No. 1 issued by the Securities and Exchange Commission (Securities Act Release 6395, April 15, 1982).
(c) Except as provided in subsection (d), financial statements of an organization required pursuant to these rules must be on a combining basis with an affiliate, if the organization or such affiliate is substantially dependent upon the other for the provision of workers' compensation health care, management or other services. An affiliate will normally be required to be combined, regardless of its form of organization, if the following conditions exist:
(2) the affiliate is operating under an authority granted by a governmental agency pursuant to which the affiliate is required to submit periodic financial reports in a form prescribed by such governmental agency that cannot practicably be reformatted into the form prescribed by these rules (such as an insurance company).
(e) When combined financial statements are required by this section, the independent accountant's report or opinion must cover all the entities included in the combined financial statements. If the accountant's report or opinion makes reference to the fact that a part of the examination was performed by another auditor, the organization shall also file the individual financial statements and report or opinion issued by the other auditor.
Credits
Note: Authority cited: Stats. 1997, Ch. 346, Section 5. Reference: Sections 4600.3, 4500.5 and 4600.6, Labor Code.
History
1. New section filed 4-15-98; operative 4-15-98. Submitted to OAL for printing only pursuant to Stats. 1997, Ch. 346, Section 5 (Register 98, No. 16).
This database is current through 6/21/24 Register 2024, No. 25.
Cal. Admin. Code tit. 8, § 9771.81, 8 CA ADC § 9771.81
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