420-D:7 Annual Reports. –
I. Annually, 120 days after the end of each fiscal year, a provider shall submit a report to the commissioner relative to the financial condition of the provider together with any other information required by the commissioner. The commissioner may require more frequent reports of any provider, if the commissioner deems it necessary for proper review.
II. The report required under this section shall be in such form as the commissioner shall prescribe and shall include, but not be limited to, the following information:
(a) The most recent disclosure statement approved by the commissioner as required under RSA 420-D:4. If there are changes to the disclosure statement since the commissioner approved it, they must be submitted to the commissioner for approval.
(b) An annual financial statement with an explanation of the differences between previous financial estimates and actual figures for the year.
(c) An estimated financial statement for the new fiscal year with an estimate in case of major changes expected during the year. The commissioner shall adopt rules under RSA 541-A relative to the definition of major changes.
(d) Financial statements audited by an independent certified public accountant (the requirement of audited financial statements may be waived by the commissioner for cause), which shall contain for 2 or more annual periods, at a minimum, the following information:
(1) A statement of financial position.
(2) A statement of operations.
(3) A statement of changes in net assets.
(4) A statement of cash flows.
(5) The accountant's opinion.
(e) 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.
(f) Calculation of liquid reserves as defined in RSA 420-D:8, certified by the accountant.
(g) Management disclosure and analysis providing a summary of the provider's prior year business operations and activities based upon, strengths, weaknesses, opportunities and threats.
(h) Financial ratio table in 3 categories, margin, liquidity and capital structure, as follows:
(1) Capital expenditures as a percentage of depreciation ratio (CED).
(2) Unrestricted cash and investments to long-term debt ratio (CD).
(3) Days cash on hand ratio (DCOH).
(4) Debt service coverage ratio (DSCR).
(5) Debt service coverage ratio-revenue basis (DSCR-RB).
(6) Net operating margin (NOM).
(7) Operating ratio (OR).
(i) An actuarial report and statement of actuarial opinion for the first full fiscal year wherein the CCRC has been occupied by one or more residents and for every 5 years thereafter 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.
(1) The statement of actuarial opinion shall indicate 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.
(2) 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.
(3) The commissioner shall not require submission of an actuarial report from any facility which does not offer a contract in which all or part of the risk of uncertain future health care costs is borne by the facility and not the resident.
(j) Such other reasonable data, financial statements, and pertinent information as the Commissioner may request.
(k) Any projects that the provider, owner (related to the CCRC facility) or affiliate is considering which will have an impact on the facility or its finances in future years shall also be disclosed. Any proprietary material shall remain confidential.
III. The annual statement shall be sworn to in writing by the principal officer or chief financial officer of the provider as follows:
(a) If an individual owner, by the owner;
(b) If a limited liability company, by the manager;
(c) If a partnership, by all the partners;
(d) If an unincorporated association, by all its members or by all its officers and directors;
(e) If a trust or non-profit, by a trustee and the president; or
(f) If a corporation, by the president and the secretary.