16 Del. Admin. Code § 3325-7.0

Current through Register Vol. 28, No. 3, September 1, 2024

Section 3325-7.0 - Audited Financial Disclosure Requirement

7.1 When DHSS determines that financial conditions exist which threaten the health or safety of a resident(s) in a facility, DHSS may require the facility to submit certified in-house financial statements within 15 days of request and an audited financial report prepared by an accountant within 60 days. The foregoing time frames may be extended by DHSS upon written request.

7.2 Conditions which may prompt DHSS to require audited financial disclosure include but are not limited to:

7.2.1 Substandard Quality of Care.

7.2.2 A material adverse change to the facility's financial position.

7.2.3 Facility/Equipment maintenance inadequacies.

7.2.4 Repeated or frequent payroll interruptions or shortages.

7.2.5 Confirmed delinquencies on invoices from suppliers or attendant court actions.

7.2.6 Personnel shortages (understaffing and /or under-qualification of staff).

7.2.7 Delinquent tax payments.

7.2.8 Bankruptcy, reorganization or closure.

7.3 Audits may initially be transmitted to DHSS by electronic means. The electronic submission must be followed by an original, bound, signed audit, prepared by an accountant.

7.4 Contents of an Audited Financial Report:

7.4.1 The audited financial report shall indicate the current financial position of the facility and the results of its operations, cash flows and changes in capital. The report shall conform to GAAP practices. It shall include:

7.4.1.1 Report of accountant;

7.4.1.2 Balance sheet reporting assets, liabilities, and capital;

7.4.1.3 Statement of operations;

7.4.1.4 Statement of cash flows;

7.4.1.5 Statement of changes in capital; and

7.4.1.6 Notes to financial statements. These notes shall be those required by GAAP.

16 Del. Admin. Code § 3325-7.0

23 DE Reg. 45( 7/1/2019) (final)