Section 1384 Of Article 6. Operation And Renewal Requirements And Procedures From California Health And Safety Code >> Division 2. >> Chapter 2.2. >> Article 6.
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. (a) Within 90 days after receipt of a request from the
director, a plan or other person subject to this chapter shall submit
to the director an audit report containing audited financial
statements covering the 12-calendar months next preceding the month
of receipt of the request, or another period as the director may
require.
(b) On or before 105 days after the date of a notice of surrender
or order of revocation, a plan shall file with the director a closing
audit report containing audited financial statements. The reporting
period for the closing audit report shall be the 12-month period
preceding the date of the notice of surrender or order of revocation,
or for another period as the director may specify. This report shall
include other relevant information as specified by rule of the
director. The director shall not consent to a surrender and an order
of revocation shall not be considered final until the closing audit
report has been filed with the director and all concerns raised by
the director therefrom have been resolved by the plan, as determined
by the director. For good cause, the director may waive the
requirement of a closing audit report.
(c) Except as otherwise provided in this subdivision, each plan
shall submit financial statements prepared as of the close of its
fiscal year within 120 days after the close of the fiscal year. The
financial statements referred to in this subdivision and in
subdivisions (a) and (b) of this section shall be accompanied by a
report, certificate, or opinion of an independent certified public
accountant or independent public accountant. The audits shall be
conducted in accordance with generally accepted auditing standards
and the rules and regulations of the director. However, financial
statements from public entities or political subdivisions of the
state whose audits are conducted by a county grand jury shall be
submitted within 180 days after the close of the fiscal year and need
not include a report, certificate, or opinion by an independent
certified public accountant or an independent public accountant, and
the audit shall be conducted in accordance with governmental auditing
standards.
(d) A plan, solicitor, or solicitor firm shall make any special
reports to the director as the director may from time to time
require.
(e) For good cause and upon written request, the director may
extend the time for compliance with subdivisions (a), (b), and (h) of
this section.
(f) A plan, solicitor, or solicitor firm shall, when requested by
the director, for good cause, submit its unaudited financial
statement, prepared in accordance with generally accepted accounting
principles and consisting of at least a balance sheet and statement
of income as of the date and for the period specified by the
director. The director may require the submission of these reports on
a monthly or other periodic basis.
(g) If the report, certificate, or opinion of the independent
accountant referred to in subdivision (c) is in any way qualified,
the director may require the plan to take any action as the director
deems appropriate to permit an independent accountant to remove the
qualification from the report, certificate, or opinion.
(h) The director may reject any financial statement, report,
certificate, or opinion filed pursuant to this section by notifying
the plan, solicitor, or solicitor firm required to make this filing
of its rejection and the cause thereof. Within 30 days after the
receipt of the notice, the person shall correct the deficiency, and
the failure so to do shall be deemed a violation of this chapter. The
director shall retain a copy of all filings so rejected.
(i) The director may make rules and regulations specifying the
form and content of the reports and financial statements referred to
in this section, and may require that these reports and financial
statements be verified by the plan or other person subject to this
chapter in a manner as the director may prescribe.