Section 247.34. Audit, review, and verification of the financial statements.

(1) A bidder applying for an overall financial rating of     greater than

$2,000,000.00, in addition to completing the financial statement portions of the prequalification application, shall submit a copy of its most recent audited financial statement as of the close of the bidder's fiscal year, which date shall be the same fiscal year date stated on the prequalification  application.  At  a

minimum, the audited financial statement shall include all of    the    following that reflect the accounting theory and practice employed by the bidder:

(a)  An independent certified public accountant's audit report.

(b)   A balance sheet.

(c)   An income statement.

(d)  A statement of cash flows.

(e)   Appropriate notes.If the certified public accountant cannot express  an  opinion as to the overall fairness of the financial statement, the bidder's prequalification for work may be limited  to  $2,000,000.00.  If  an  opinion  contains qualifications which are material in the judgment of the prequalification committee, the items may be disallowed for prequalification purposes.

(2)   An overall financial rating of $2,000,000.00 or less does not require submittal of an audited financial statement. Instead, a bidder may provide either a compilation report, or a review report prepared by an independent certified public accountant. With approval of the department, a bidder may provide a bank account balance verification prepared by the bidder's bank or banks, accounts receivable balance confirmations prepared by specified debtors, or a subsequent receipts verification letter prepared by a certified public accountant. The determination of which report, or combination of reports, to be provided will be made solely by the department based upon the circumstances surrounding each request.

(3)   A bidder shall immediately notify the department of any significant change in the information provided by the bidder to obtain prequalification.

(4)   The information included as part of the prequalification application shall be sworn to before a notary public by an authorized officer, owner, or partner of the bidder.

(5)     A newly formed organization requesting prequalification shall submit its opening  balance  sheet  for  an  initial  prequalification   rating.   Thereafter, the financial statement shall cover  the same  period  as  its established fiscal year.

(6)   A bidder who changes its fiscal year shall submit an explanation for the change and the department shall review the explanation submitted. The department may request additional information if considered necessary. The prequalification committee may deny or limit prequalification for any of the following reasons:

(a)  If no explanation is submitted.

(b)   If the additional information submitted is inadequate.

(c)   If the change is determined by the department to impair the bidder's suitability for its prequalification.

(7)  The department may request clarification and verification of any information submitted and, if necessary, examine the bidder's  records  and accounts.

(8)    An independent certified public accountant under these rules shall not be a person otherwise employed by, or serving as an officer or director of, the bidder.

History: 1979 AC; 2002 AACS; 2009 AACS.