N.H. Admin. Code § Ins 1804.01

Current through Register No. 45, November 7, 2024

Section Ins 1804.01 - Annual Reports

(a) Each CCRC who uses the calendar year as its fiscal year shall submit a report on or before May 1 of each year, detailing its fiscal status as of the close of business on December 31 of the just completed calendar year.

(b) Each CCRC who uses an annual period other than the calendar year as its fiscal year shall submit a report detailing its financial status as of the close of business on the last day of its fiscal year within 120 days after the close of the fiscal year.

(c) CCRCs holding one or more certificates of authority shall file separate annual statements for each certificate held.

(d) The annual report required from each CCRC pursuant to this section shall include the following:

(1) The most recent disclosure statement of the CCRC as required under RSA 420-D:4;

(2) Financial statements audited by an independent certified public accountant, which shall contain for 2 or more annual periods, at a minimum, the following information:

a. A balance sheet;

b. A statement of income and expenses;

c. A statement of equity or fund balances;

d. A statement of changes in financial position;

e. The accountant's opinion; and

f. All notes to the financial statements considered customary or necessary to full disclosure and adequate understanding of the financial statements, the financial condition of the facility, and the operation;

(3) For the first full fiscal year wherein the CCRC has been occupied by one or more residents and for every 5 years thereafter, an actuarial report, including a balance sheet and statement of operations, prepared in accordance with the "Actuarial Standard of Practice No. 3, Practices Relating to Continuing Care Retirement Communities" adopted July, 1994 by the American Academy of Actuaries' Actuarial Standards Board; and

(4) If applicable, a statement of entrance fee escrow account balances which shall include the following:

a. The date on which the just completed fiscal year ended;

b. The name of the provider;

c. The city or town in which the provider is located;

d. The escrow account balances as of the beginning of the fiscal year;

e. The escrow payments received during the fiscal year;

f. Interest credited to account balances;

g. Payments made to residents, prospective residents or beneficiaries;

h. Interest released to the provider;

i. Entrance fees earned; and

j. The escrow account balances as of the end of the fiscal year.

(e) Upon written notice to the CCRC, the commissioner shall require the CCRC to submit any one or more of the financial statements listed under (d) above on a more frequent basis than annually, when any of the following conditions apply:

(1) The annual reports for the most recently completed fiscal year show that the CCRC operated a loss greater than 5 percent of the monthly maintenance fees received;

(2) The annual reports for the most recently completed fiscal year showed a total surplus equal to less than 10 percent of total assets;

(3) The annual reports for the most recently completed fiscal year estimated a loss for the succeeding year greater than 5 percent of the estimated monthly maintenance fee revenues;

(4) The annual reports for the most recently completed fiscal year showed a decrease in assets of more than 5 percent or an increase in liabilities of more than 10 percent; and

(5) An audit conducted by the commissioner results in a change in surplus of 25 percent or more.

(f) Upon written notice to the CCRC, the commissioner shall require the CCRC to submit any journals, ledgers or other records which serve as back-up material for any one or more of the financial statements listed under (d) above. The commissioner shall make such requests whenever it is necessary to verify the accuracy of the financial statements included as part of the CCRCs annual report.

(g) To be considered complete upon submission, the financial statements listed under (d) above shall include complete answers to all general interrogatories and all notes to the financial statements which are considered customary or necessary to full disclosure and adequate understanding of the financial statements, the financial condition of the CCRC, and the operation of the CCRC.

(h) The financial statements required by (d) (3) above shall be accompanied by a statement of actuarial opinion indicating whether the data and assumptions used are appropriate, whether the methods employed are consistent with sound actuarial principles and practices and whether provisions have been made for all actuarial liabilities and related statement items which ought to be established.

(i) The actuarial opinion shall also contain appropriate comment on the CCRCs perceived ability to operate the CCRC as a going concern and the impact of any actuarial deficit. If the actuary is unable to form a needed opinion, or if the opinion is adverse or qualified, the statement of actuarial opinion shall specifically state the reason. The actuarial opinion shall be rendered by a qualified actuary as defined in Ins 901.02.

N.H. Admin. Code § Ins 1804.01

#7014, eff 7-1-99; amd by #7994, eff 12-1-03; ss by #8991, eff 10-1-07

Amended by Volume XXXV Number 45, Filed November 12, 2015, Proposed by #10944, Effective 10/8/2015, Expires 10/8/2025.