N.J. Admin. Code § 10:60A-6.2

Current through Register Vol. 57, No. 1, January 6, 2025

Section 10:60A-6.2 - Financial statements

(a) A PMDC facility shall complete and provide audited financial statements covering a period of one calendar year to the Department no later than March 31 of the year next succeeding the calendar year for which the financial statement is prepared by the PMDC facility.

1. The reporting period covered by a PMDC facility's audited financial statements shall be 12 consecutive calendar months commencing January 1 and ending December 31.

2. If the Department does not receive a PMDC facility's audited financial statements by March 31 of the calendar year next succeeding the calendar year for which the audited financial statements are prepared, the Department shall send the PMDC facility a notice, by certified mail, return receipt requested, advising the PMDC facility that its failure to timely submit acceptable audited financial statements shall result in a suspension of payment of any inflation adjustment factor over the base rate in effect on that March 31.

i. The Department shall not implement an inflation adjustment factor until the first day of the month following submission by the PMDC facility of its audited financial statements to the Department, in a form acceptable to the Department.

3. The Department shall review the audited financial statements as filed by the PMDC facility.

i. The Department may contact PMDC facility staff, either by writing or telephonically, to request additional information from PMDC facility staff if the audited financial statements are incomplete or do not otherwise conform to the requirements of this section.

ii. If PMDC facility staff fails to provide such additional information to the Department, the audited financial statements shall be deemed by the Department as not filed until audited financial statements are filed with and accepted by the Department.

iii. The Department shall provide written notice to the Administrator that an acceptable form of the audited financial statements have not been filed and that the Department shall suspend payment of any inflation adjustment factor over the then effective base rate for the month that the notice is so provided and until the first day of the month following submission by the PMDC facility of audited financial statements to the Department, in a form acceptable to the Department.

(b) The audited financial statements of the PMDC facility shall be prepared:

1. By a certified public accountant licensed pursuant to N.J.A.C. 13:29;

2. In accordance with generally accepted auditing standards established by the American Institute of Certified Public Accountants.

3. Annually based on a calendar year beginning on January 1 and ending on the next following December 31 and submitted to the Department by PMDC facility staff at the time the PMDC facility staff submit the cost report; and

4. On an organization-wide basis, so that the audited financial statements fairly present the financial position and results of the PMDC facility's total operations and cash flow.

(c) The audited financial statements shall include the following:

1. An opinion prepared by the certified public accountant on the audited financial statements taken as a whole;

2. A balance sheet, income statement, sources and uses of funds and any notes for the PMDC facility for the reporting period covered by the audited financial statements;

3. If the PMDC facility is a subsidiary of a corporate parent, the balance sheet, income statement, sources and uses of funds and any notes for the corporate parent and a detailed cost allocation worksheet for the corporate parent and each of its subsidiaries, including the PMDC facility, containing an explanation of the cost allocation methodologies used by the corporate parent for the PMDC facility and all of its subsidiaries; and

4. A specific statement that all required tax returns have been filed by the PMDC facility and all applicable taxes (including, but not limited to, payroll taxes) have been paid.

N.J. Admin. Code § 10:60A-6.2

Recodified from 10:166-6.2 by 56 N.J.R. 262(a), effective 2/20/2024