Section 153.270 - HHS audits of State-operated reinsurance programs(a)Audits. HHS or its designee may conduct a financial and programmatic audit of a State-operated reinsurance program to assess compliance with the requirements of this subpart or subpart B of this part. A State that establishes a reinsurance program must ensure that its applicable reinsurance entity and any relevant contractors, subcontractors, or agents cooperate with any audit under this section.(b)Action on audit findings. If an audit results in a finding of material weakness or significant deficiency with respect to compliance with any requirement of this subpart or subpart B, the State must ensure that the applicable reinsurance entity:(1) Within 60 calendar days of the issuance of the final audit report, provides a written corrective action plan to HHS for approval;(2) Implements that plan; and(3) Provides to HHS written documentation of the corrective actions once taken. 79 FR 13835 , Mar. 11, 2014