(a) (1) A provider shall compute operating reserves for each facility as of the end of the facility’s most recent fiscal year.
(2) When a provider files an application for a renewal certificate of registration, the provider shall show compliance with operating reserve requirements by including with the application:
(i) a letter to the Department from a certified public accountant that states the amount set aside; or
(ii) a certified financial statement that states the amount set aside.
(b) A provider may apply toward the operating reserves required by § 10-420(b) of this subtitle any reserves, except debt service reserves, that are maintained under applicable financing document requirements if the reserves are available to the provider to meet the facility’s operating expenses.
(c) For the purpose of computing a provider’s operating reserves, investments held to the credit of the reserves shall be calculated at their market value as of the end of the provider’s most recent fiscal year for which a certified financial statement is available.
Structure Maryland Statutes
Title 10 - Department of Aging
Section 10-419 - "Net Operating Expenses" Defined
Section 10-420 - Operating Reserves -- in General
Section 10-421 - Operating Reserves -- Computation
Section 10-422 - Operating Reserves -- Drawing Funds From Reserves
Section 10-423 - Operating Reserves -- Unconverted Facilities
Section 10-424 - Disclosure Statements -- in General
Section 10-425 - Disclosure Statements -- Contents
Section 10-426 - Annual Meeting
Section 10-427 - Subscriber Input
Section 10-428 - Internal Grievance Procedure