Section 57.30. Contents of annual audited financial report.

  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.

History: EmR0927 : emerg. cr. eff. 10-10-09; CR 09-093 : cr. Register May 2010 No. 653 , eff. 6-1-10; correction in (2) (k) made under s. 13.92 (4) (b) 7. , Stats., Register May 2010 No. 653 .