SECTIONS 31500-31509

31500.  Each licensee shall adopt as its fiscal year the period fromJuly 1st to and including the following June 30th.31501.  Each licensee shall make and keep such books, accounts, andother records in such form and in such manner as the commissioner mayby regulation or order require. All records so required shall bekept at such place and shall be preserved for such time as thecommissioner may by regulation or order specify.31502.  No licensee shall, except with the prior approval of thecommissioner, enter or carry on its books or records any asset at avaluation exceeding the actual cost of such asset to such licensee.31503.  The commissioner may by order require a licensee to writedown any asset on its books and records to a valuation whichrepresents its then value.31504.  Each licensee shall, not more than 90 days after the closeof each of its fiscal years or within such longer period as thecommissioner may by regulation or order specify, file with thecommissioner an audit report containing: (a) Financial statements (including balance sheet, statement ofincome or loss, statement of changes in capital accounts, andstatement of changes in financial position or, in the case of alicensee which is a California nonprofit corporation, comparablefinancial statements) for or as of the end of such fiscal year,prepared with audit by an independent certified public accountant oran independent public accountant in accordance with generallyaccepted accounting principles; (b) Report, certificate, or opinion of such independent certifiedpublic accountant or independent public account, stating that suchfinancial statements were prepared in accordance with generallyaccepted accounting principles; and (c) Such other information as the commissioner may by regulationor order require.31506.  Each licensee, each director, officer, and employee of alicensee, and each parent and subsidiary of a licensee shall filewith the commissioner such reports as and when the commissioner mayby regulation or order require. In addition, each affiliate of alicensee (other than a parent or subsidiary of the licensee) shallfile with the commissioner such reports regarding transactionsbetween the affiliate and the licensee as and when the commissionermay require. Each report shall be in such form, shall contain suchinformation, shall be signed in such manner, and shall (if thecommissioner so requires by regulation or order) be verified in suchmanner, as the commissioner may by regulation or order require.31507.  (a) The commissioner shall examine each licensee not lessfrequently than once each calendar year. (b) (1) The commissioner may at any time examine any licensee orany parent or subsidiary of a licensee. (2) The commissioner may at any time examine any office of anylicensee within or outside of this state. (3) The commissioner may at any time examine any affiliate of alicensee (other than a parent or subsidiary of the licensee) but onlywith respect to matters relating to transactions between theaffiliate and the licensee. (c) The directors, officers, and employees of any licensee or ofany affiliate of a licensee being examined by the commissioner andany other person having custody of any of the books, accounts, orrecords of the licensee or affiliate shall exhibit to thecommissioner, on request, any or all of the books, accounts, andother records of the licensee or affiliate and shall otherwisefacilitate the examination so far as it may be in their power to doso. However, in the case of an examination of an affiliate of alicensee other than a parent or subsidiary of the licensee, onlybooks, accounts, and records of the affiliate that relate totransactions between the affiliate and the licensee shall be subjectto this subdivision. (d) The commissioner may, if in his or her opinion it is necessaryin the examination of any licensee or of any affiliate of alicensee, retain any certified public accountant, attorney,appraiser, or other person to assist him or her, and the licenseeshall pay, within 10 days after receipt of a statement from thecommissioner, the fees of that person.31508.  (a) No licensee shall, except with the prior approval of thecommissioner, cause or permit any other person to make or keep anyof its books, accounts, or other records. (b) In case any person other than a licensee makes or keeps any ofthe books, accounts, or other records of such licensee, theprovisions of this division and of any regulation or order issuedunder this division shall apply to such person with respect to theperformance of such services and with respect to such books,accounts, and other records to the same extent as if such person weresuch licensee. (c) In case any person other than an affiliate of a licensee makesor keeps any of the books, accounts, or other records of suchaffiliate or, in the case of an affiliate other than a parent orsubsidiary of the licensee, the books, accounts, and other records ofthe affiliate that relate to transactions between the affiliate andthe licensee, the provisions of this division and of any regulationor order issued under this division shall apply to such person withrespect to such books, accounts, and other records to the same extentas if such person were such affiliate.31509.  The commissioner may publish any report filed with him orher under this division or under any regulation or order issued underthis division.