(1)
Definitions of terms found in Iowa Code chapter 523D and this
chapter. The definitions in Iowa Code chapter 523D are incorporated by
this reference. In addition, the following definition shall apply to this
chapter and shall provide clarification and additional context to Iowa Code
chapter 523D.
"Certified financial statements, " as used
in this chapter and in Iowa Code section
523D3(1)."i, " means financial statements audited and certified by a
certified public accountant in accordance with generally accepted auditing
standards.
(2)
Definitions of terms used in Iowa Code chapter 523D. The
following terms, which are used in Iowa Code chapter 523D, are defined here to
provide clarification and additional context.
"Actuarial forecast," as used in Iowa Code
section
523D5(1)."f" means an analysis which is performed by a qualified
actuary or an individual who has demonstrated to the satisfaction of the
commissioner the necessary experience and educational background. Such analysis
shall be in accordance with generally accepted actuarial principles and
practices and shall include a statement of actuarial opinion, an actuarial
balance sheet, a cash flow projection, and a statement of applicable actuarial
methodology, formulas, and assumptions. "Qualified actuary" means an individual
who is a member of the American Academy of Actuaries.
"Financial institution, " as used in Iowa
Code section
523D5(4).,
means: a state or federally insured bank, savings bank, savings and loan
association, or credit union; or a trust company authorized to do business in
the state of Iowa.
"Statement of financial feasibility, " as
used in Iowa Code section
523D5(1)."d, " means a financial forecast, as defined by the American
Institute of Certified Public Accountants (AICPA), of the revenues, expenses,
working capital needs, and other financial requirements for the new or expanded
facility or an alternative financial study in a form acceptable to the
insurance division. The forecast period should include the development or
expansion period and extend for five fiscal years from the date of initial
occupancy. Unless waived by the commissioner, the statement of financial
feasibility shall include a cash flow forecast with underlying assumptions and
be presented in accordance with AICPA guidelines. The financial analysis shall
be prepared by either a qualified actuary, a certified public accountant, or an
individual who has demonstrated to the satisfaction of the commissioner the
necessary experience and educational background. "Qualified actuary" means an
individual who is a member of the American Academy of Actuaries. "Certified
public accountant" means a person who is licensed as a certified public
accountant under Iowa Code chapter 542 or under the laws of another
state.
"Statement of the market feasibility" as
used in Iowa Code section 523D. 5(1)"e, " means an analysis of
the market conditions which:
1.
Identifies and evaluates the potential market, including a demographic and
economic profile of the population in the facility's market area;
2. Identifies the existing or proposed
facilities or similar businesses offering similar services in the potential
market area, including, if available, the occupancy rate for existing
facilities for the last three years; and
3. Identifies the name and address of the
person who prepared the feasibility study and the experience of the person in
preparing similar studies or otherwise consulting in the field of continuing
care or related health care fields.
Notes
Iowa Admin. Code r. 191-102.2
Rescinded by
IAB
November 25, 2015/Volume XXXVIII, Number 11, effective
12/30/2015
Adopted by
IAB
November 23, 2016/Volume XXXIX, Number 11, effective
12/28/2016
