1. A. A licensee shall maintain complete and accurate accounts, books, and records as prescribed in this Article, and in accordance with generally accepted accounting practice.
2. B. A licensee shall operate on the annual budget approved by its governing board.
3. C. A licensee shall regularly record its financial transactions and maintain, for five years, its financial records including receipts, disbursements, assets, and liabilities.

4. D. A licensee shall have an annual, fiscal year-end, financial audit by an independent certified public accountant who shall conduct the audit in accordance with generally accepted auditing standards. The audit report shall include the following financial information:

   1. 1. Income statement,
   2. 2. Balance sheet,
   3. 3. Statement of cash flow,

   4. 4. A statement showing monies or other benefits the licensee has paid or transferred to any of the following:

      1. a. Business entities affiliated with the licensee,
      2. b. The licensee’s directors or officers,
      3. c. The licensee’s chief executive officer or program director,
      4. d. The family member of a person listed in subsections (D)(2)(e)(ii) or (iii), or
      5. e. Another agency.

Historical Note

Adopted effective July 1, 1997; filed with the Secretary of State’s Office May 15, 1997 (Supp. 97-2).