Section 1792.5 Of Article 6. Reporting And Reserve Requirements From California Health And Safety Code >> Division 2. >> Chapter 10. >> Article 6.
1792.5
. (a) The provider shall compute its liquid reserve
requirement as of the end of the provider's most recent fiscal
yearend based on its audited financial statements for that period
and, at the time it files its annual report, shall file a form
acceptable to the department certifying all of the following:
(1) The amount the provider is required to hold as a liquid
reserve, including the amounts required for the debt service reserve
and the operating expense reserve.
(2) The qualifying assets, and their respective values, the
provider has designated for its debt service reserve and for its
operating expense reserve.
(3) The amount of any deficiency or surplus for the provider's
debt service reserve and the provider's operating expense reserve.
(b) For the purpose of calculating the amount held by the provider
to satisfy its liquid reserve requirement, all qualifying assets
used to satisfy the liquid reserve requirements shall be valued at
their fair market value as of the end of the provider's most recently
completed fiscal year. Restricted assets that have guaranteed values
and are designated as qualifying assets under paragraph (6) or (7)
of subdivision (a) of Section 1792.2 may be valued at their
guaranteed values.