[§432:1-405]  Annual audit.  (a) Annually on or before June 1, or such later date as the commissioner uponrequest or for cause may specify, each domestic mutual benefit society shallfile an audit by a designated independent certified public accountant oraccounting firm of the financial statements reporting the financial conditionand the results of operations of the mutual benefit society.  The auditedfinancial statement may use either generally accepted accounting principles(GAAP) or statutory accounting principles (SAP).  If the generally acceptedaccounting principles method is used, a reconciliation of the financialstatement to the statutory accounting principles must be provided to thecommissioner.  The mutual benefit society, on an annual basis and prior to thecommencement of the audit, shall notify the commissioner in writing of the nameand address of the person or firm retained to conduct the annual audit.  Thecommissioner may disapprove the mutual benefit society's designation within fifteendays of receipt of the mutual benefit society's notice, and the mutual benefitsociety shall be required to designate another independent certified publicaccountant or accounting firm.

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