D.C. Mun. Regs. tit. 20, r. 20-6705

Current through Register Vol. 71, No. 36, September 6, 2024

Rule 20-6705 - FINANCIAL TEST OF SELF-INSURANCE: TEST B

6705.1

To meet financial Test B, the owner or a guarantor shall meet the federal financial test requirements set forth in 40 CFR § 264.147(f)(1), substituting the appropriate amount specified in § 6700.12(a) or (b) for the "amount of liability coverage" each time specified in the federal regulations.

6705.2

The fiscal year-end financial statements of the owner or guarantor seeking to meet financial Test B shall be examined by an independent certified public accountant and be accompanied by the accountant's report of the examination.

6705.3

The owner or guarantor seeking to meet financial Test B cannot have year-end financial statements that include an adverse auditor's opinion, a disclaimer of opinion, or a "going concern" qualification.

6705.4

The owner or guarantor seeking to meet financial Test B shall have a letter of assurance signed by the chief financial officer in the form specified by Appendix 67-2 (Financial Test of Self-Insurance).

6705.5

If the financial statements of the owner or guarantor seeking to meet financial Test B are not submitted annually to the U.S. Securities and Exchange Commission, the Energy Information Administration, or the Rural Utilities Service, the owner or guarantor shall obtain a special report by an independent certified public accountant stating the following:

(a) The certified public accountant has compared the data that the letter from the chie f financial officer specifies as having been derived from the latest year-end financial statements of the owner or guarantor with the amounts in the financial statements; and

(b) In connection with that comparison, no matters came to the attention of the certified public accountant that caused him or her to believe the specified data should be adjusted.

D.C. Mun. Regs. tit. 20, r. 20-6705

Final Rulemaking published at 43 DCR 2799 (May 24, 1996), incorporating text of Proposed Rulemaking published at 42 DCR 5765, 5774 (October 20, 1995); as amended by Final Rulemaking published at 46 DCR 7699 (October 1, 1999); amended by Final Rulemaking published at 67 DCR 1778 (2/21/2020)