31A-40-305 - Financial statements required for licensing. - Utah Statutes

31A-40-305. Financial statements required for licensing.
(1) (a) A person that files a financial statement with an application for an initial licenseunder Section 31A-40-302 shall file the professional employer organization's most recent audit asof the day the application is filed, except that the financial statement may not be older than 10months from the day on which the application is filed.
(b) A person that files a financial statement to renew a license shall file the most recentfinancial statement of the professional employer organization as of the day the application forrenewal is filed with the commission.
(c) (i) The person filing an application may apply for an extension with the commissionerif the request for an extension is accompanied by a letter from the person conducting the audit forthe financial statement stating:
(A) the reason for the delay; and
(B) the anticipated date on which the audit will be completed.
(ii) If a person complies with Subsection (1)(c)(i), the commissioner may grant anextension up to 30 days from the day on which the financial statement is due under this section.
(d) A professional employer organization may file a combined or consolidated financialstatement if:
(i) the professional employer organization is owned by or in common control withanother person; and
(ii) the combined or consolidated financial statement clearly identifies the following ofthe professional employer organization:
(A) its working capital;
(B) its assets; and
(C) its liabilities.
(2) A financial statement required by this chapter shall be:
(a) prepared in accordance with generally accepted accounting principles;
(b) audited by an independent certified public accountant licensed to practice in thejurisdiction in which the person conducting the audit is located; and
(c) without qualification as to the going concern status of the professional employerorganization.
(3) Notwithstanding the other provisions of this section, the commissioner shall license aprofessional employer organization that does not have sufficient operating history to have anaudited financial statement on the basis of at least 12 months if:
(a) the professional employer organization complies with the other requirements forlicensure, including Section 31A-40-205; and
(b) the person filing the application for license files a financial statement that is reviewedby a certified public accountant.

Enacted by Chapter 318, 2008 General Session