| (a) Report required. A written report shall be prepared in
connection with any audit authorized or required pursuant to this subchapter.
(b) Contents of report. The written report must include a management
letter containing the following items, as applicable:
(1) the criteria selected to measure effectiveness and efficiency;
(2) internal controls;
(3) compliance with state or federal laws;
(4) conditions found by auditors and the effects of such conditions;
and
(5) any recommendations for improving operations or program
effectiveness.
(c) Required opinion. The report also must include an opinion
on fair presentation of financial statements when included as part of the
scope of the audit.
(d) Supplemental items to be reported. The auditing entity's
report should also include, to the extent necessary, each of the following
items:
(1) an analysis of the overall performance of the entity being
audited;
(2) an analysis of the audited entity's financial operations
and condition; and
(3) an analysis of receipts and expenditures made by each audited
entity.
(e) Filing requirements for audits. Copies of the auditing
entity's report shall be filed with the Commissioner of Insurance no later
than 30 days after the audits are presented to the board of directors of the
audited guaranty association. Any response to the report by the board of directors
must be submitted to the commissioner no later than the next meeting of the
board of directors.
(f) Audits excluded. This subchapter shall not apply to audits
made by the Office of the State Auditor.
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