5 Colo. Code Regs. § 1002-66-G
Wording for Financial Test Letter from a Public Company
A financial test letter from a public company must be worded as follows, except that instructions in brackets are to be replaced with the relevant information and the brackets deleted.
Director
Colorado Department of Public Health and Environment
Environmental Agriculture Program
OE-B2
4300 Cherry Creek Drive South
Denver, CO 80246-1530
Re: [Applicant or Permittee Name]
[Permit No.]
Dear Sir or Madam:
I am the chief financial officer of [Applicant or Permittee Name]. This letter is in support of [Applicant or Permittee Name]'s use of the financial test to demonstrate financial assurance for closure costs, in accordance with subsection 61.13 of the Colorado Water Quality Control Commission's (Commission's) Colorado Discharge Permit System Regulations (5 CCR 1002-61) and section 66.10 of the Commission's Financial Assurance Criteria Regulations (5 CCR 1002-66).
[Applicant or Permittee Name] is the owner or operator of the following housed commercial swine feeding operation facilities in Colorado under [permit number(s)] for which all or a portion of financial assurance for closure costs is demonstrated through the financial test: [list facilities]
The following information is applicable to the above facilities:
1. The total closure cost for the facilities (per the approved Financial Assurance Plan) is:
$ _________
2. The closure costs covered by this financial test instrument are: $ _________
In support hereof, enclosed are [Applicant or Permittee Name]'s recent annual independently audited financial statements and a copy of the independent certified public accountant's report on examination of the permittee or applicant's financial statements for the latest completed fiscal year, as required by subsection 66.10 . [If applicable, state the following, "As allowed by subsection 66.10 , [Applicant or Permittee Name] appropriately incorporated the value of breeding swine into the value of the current assets."] Based on the financial statements, the following statement's are true and [Applicant or Permittee Name] meets the requirements of subsection 66.10(1)(b)-(c):
3. The current assets (which can include the value of breeding swine)/current liabilities ratio is at least 1.2.
4. Tangible net worth is greater than or equal to 2.0 times the amount of line 2, above.
5. Assets located in the U.S. are equal to or greater than the amount of line 2, above.
The fiscal year of [Applicant or Permittee Name] ends on [month, day].
I declare that the statements, financial values, and other facts stated herein are true and correct. I acknowledge that making a false, fictitious, or fraudulent statement in the letter is punishable under the criminal laws of Colorado as perjury under section 18-8-503, C.R.S.
[Signature]
[Name]
[Title] [Date] Enc: Fiscal year [Year] Financial Statements
5 CCR 1002-66-G