The annual audited financial report required under s.
Ins 57.26 shall comply with all of the following:
(1) Report the financial position of the care
management organization as of the end of the most recent calendar year and the
results of its operations, cash flows and changes in net assets for that year
in conformity with generally accepted accounting principles.
(2) Include all of the following:
(a) The report of the independent certified
public accountant.
(b) A balance
sheet reporting assets, liabilities, and net assets.
(c) A statement of operations.
(d) A statement of cash flows.
(e) A statement of changes in net
assets.
(f) A report on the
internal control environment of the CMO.
(g) A report describing the system of cost
allocation for shared overhead and direct services between programs or lines of
business.
(h) A supplemental
financial report that demonstrates the financial position and segregated
reserves of the CMO business for each state program contract where the
organization serves members under multiple Medicaid managed care contracts or
other lines of business. The report shall be in columnar format for the various
programs as required.
(i)
Management letter as issued or written assurance that a management letter was
not issued with the audit report.
(j) Management responses and corrective
action plan for each audit issue identified in the audit report or in the
management letter.
(k) Notes to
financial statements. These notes shall be those required by generally accepted
accounting principles. The notes shall include a reconciliation of differences,
if any, between the audited financial statements and the annual statement filed
pursuant to s.
Ins 57.40 with a written description of the nature of
these differences.
(3)
The financial statement shall be comparative, presenting the amounts as of
December 31 of the current year and the amounts as of the immediately preceding
December 31, except in the first year in which a care management organization
is required to file an audited financial report, the comparative data may be
omitted.
