[§432:1-405]  Annual audit.  (a) 
Annually on or before June 1, or such later date as the commissioner upon
request or for cause may specify, each domestic mutual benefit society shall
file an audit by a designated independent certified public accountant or
accounting firm of the financial statements reporting the financial condition
and the results of operations of the mutual benefit society.  The audited
financial statement may use either generally accepted accounting principles
(GAAP) or statutory accounting principles (SAP).  If the generally accepted
accounting principles method is used, a reconciliation of the financial
statement to the statutory accounting principles must be provided to the
commissioner.  The mutual benefit society, on an annual basis and prior to the
commencement of the audit, shall notify the commissioner in writing of the name
and address of the person or firm retained to conduct the annual audit.  The
commissioner may disapprove the mutual benefit society's designation within fifteen
days of receipt of the mutual benefit society's notice, and the mutual benefit
society shall be required to designate another independent certified public
accountant or accounting firm.



(b)  The commissioner may suspend or revoke the
certificate of compliance of any mutual benefit society that fails to file any
of the documents required in subsection (a).  In lieu of or in addition to
suspension or revocation of the certificate of compliance of any mutual benefit
society, the commissioner may impose on the mutual benefit society a penalty in
the amount of not less than $100 and not more than $500 for each day of
delinquency. [L 1995, c 110, §1]