1. (1) Each TNInvestco shall submit to ECD its annual audited financial statements (the “Annual Audit Report”), together with an examination review of follow-on capital, jobs data, and pacing requirement compliance (the “Examination Review”), prepared in accordance with all relevant statutory and programmatic requirements, including T.C.A. § 4-28-110(a)(4), the “Updated Program Policies” memorandum dated February 27, 2013, and the “2014 Guidelines for Preparing Schedules” memorandum dated November 13, 2014, as they may be revised from time to time, as well as any other applicable process memoranda issued by ECD or the Office of the Comptroller of the Treasury. A TNInvestco shall:

   1. (a) Cure any disclaimer, adverse or qualified opinion, finding, material weakness, significant deficiency, or other deficiency relating to the internal controls, accounting standards, and financial statements and notes of the TNInvestco (“Audit and Control Deficiencies”) identified in the Annual Audit Report within forty-five (45) Days after the date ECD notifies the TNInvestco;
   2. (b) Cure any disclaimer, adverse or qualified opinion, material noncompliance, error, omission, deviation from relevant policies and procedures, or other deficiency relating to the pacing requirements schedule, jobs and follow-on capital schedule, and schedule of investments (“Schedule and Compliance Deficiencies”) identified in the Examination Review within forty-five (45) Days after the date ECD notifies the TNInvestco;
   3. (c) Cure any additional Audit and Control Deficiencies identified by ECD or the Office of the Comptroller of the Treasury within forty-five (45) Days after the date ECD notifies the TNInvestco; and
   4. (d) Cure any additional Schedule and Compliance Deficiencies identified by ECD or the Office of the Comptroller of the Treasury within forty-five (45) Days after the date ECD notifies the TNInvestco.
2. (2) In each event of noncompliance with a subparagraph of this rule, a penalty of $1,000 per Day shall be assessed until the noncompliance is cured. Penalties assessed pursuant to subparagraph (1)(b) of this rule shall not exceed a maximum of $1,000 per Day per schedule. Penalties assessed pursuant to subparagraph (1)(d) of this rule shall not exceed a maximum of $1,000 per Day per schedule. Notwithstanding the foregoing, if the noncompliance results in the assessment of a mandatory penalty of $10,000 pursuant to T.C.A. § 4-28-111(b), an additional penalty shall not be assessed pursuant to this rule for the noncompliance.

Authority: T.C.A. §§ 4-28-110; 4-28-111; and 4-28-113. Administrative History: New rule filed September 4, 2015; effective December 3, 2015.