Ariz. Admin. Code § 21-9-222

Current through Register Vol. 31, No. 2, January 10, 2025

Section R21-9-222 - Annual Financial Audit

A. An adoption agency shall obtain an annual, fiscal year-end, financial audit by an independent certified public accountant. The accountant shall conduct the audit in accordance with generally accepted auditing standards.

B. The adoption agency shall obtain from the auditor a written audit report that shall include the following financial information:

1. Income statement,

2. Balance sheet,

3. Statement of cash flows,

4. Statement of monies or other benefits the adoption agency has paid or transferred to other business entities or individuals affiliated with the adoption agency, and

5. A record of any financial transactions between the adoption agency and any other adoption agency.

C. Notwithstanding subsections (A) and (B), for adoption agencies with an annual income of less than $250,000, rather than submit the financial audit required in subsections (A) and (B), the adoption agency shall:

1. Provide verifiable information that allows OLR to evaluate the adoption agency's financial stability.

2. Maintain acceptable documentation that includes:

a. Annual fiscal audit;

b. Six month current bank statement;

c. Statements from lines of credit; and

d. The previous year's tax return.

D. OLR may request additional information that would allow OLR to evaluate the adoption agency's financial stability.

Ariz. Admin. Code § R21-9-222

New section made by exempt rulemaking at 21 A.A.R. 3524, effective 1/24/2016.