Texas Health and Safety Code 246.050 – Contents of Disclosure Statement: Financial Information
(a) The disclosure statement must:
(1) describe any provisions made or to be made to provide reserve funding or security to enable the provider to fully perform its obligations under a continuing care contract, including:
(A) the establishment of escrow accounts, trusts, or reserve funds and the manner in which those funds will be invested; and
(B) the name and experience of any individual in the direct employment of the provider who will make the investment decisions; and
(2) provide financial statements of the provider, including:
(A) a balance sheet as of the end of the most recent fiscal year; and
(B) income statements and a statement of cash flow for each of the three most recent fiscal years that the provider has been in existence.
(b) Financial statements required by Subsection (a)(2) must be prepared in accordance with generally accepted accounting principles and must be audited by an independent certified public accountant, who shall state in the audit report whether the financial statements were prepared in accordance with those principles.
Terms Used In Texas Health and Safety Code 246.050
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.