Professional Bondsman Financial Statement Reminder Memo

 

-M E M O R A N D U M-

 

 TO: Professional Bail Bondsmen

 FROM: John D Doak, Commissioner, Oklahoma Insurance Department

 DATE: July 18, 2012

 RE: Personal Financial Statements

 

 

The following are the requirements for your personal financial statement due September 30, 2012.* Attention to the details below will expedite the review of your personal financial statement. The Department suggests that you give a copy of this memorandum to your Certified Public Accountant or Public Accountant.

 

Briefly, 59 O.S. §1306 and §1309 require "an unqualified opinion" from a Certified Public Accountant or a licensed Public Accountant with a permit to practice. To express such an opinion the CPA/PA must conduct an audit. Compilations or review engagements will not satisfy this requirement. The personal financial statement shall be dated not earlier than ninety (90) days prior to September 30th.

 

Special attention should be given to:

 

1)                   Valuation of assets and liabilities must comply with the guidelines as promulgated by the AICPA in the publication entitled: Personal Financial Statements Guide issued by the Accounting Standards Division of the AICPA (SOP 82-1).

2)                   Valuation method(s) and date(s) must be disclosed in the Notes to the Financial Statements.

3)                   Encumbered funds held jointly by the Bondsman and OID must be a separate line item on the balance sheet.

4)                   Format of the Financial Statements, Notes, and Opinion must follow AICPA guidelines.

5)                   Current and deferred income tax information must be included.

6)                   Disclosures should include, but are not limited, to the following:

a)                   Contingent liability of bonds outstanding.

b)                   Amount of deposit held by state.

c)                   Pending litigation.

7)                   Jointly owned assets should be valued at 50 percent on individual statements. Notes to Financial Statement MUST disclose if prepared on individual or joint basis. Please refer to OAC Regulation 365:25-5-42.

8)                   The CPA or PA must disclose their license number and expiration date of their Oklahoma permit in a separate letter to accompany the financial statement.

9)                   If the CPA/PA preparing this financial statement did not prepare the previous statement, a letter from the former CPA/PA is required.

 

Please make sure that your CPA/PA has renewed his/her permit to practice. Do not mail your financial statement to the Financial Division. The financial statement must be mailed to the Bail Bond Division. If you have any questions, please contact:

 

Bail Bond Division

Oklahoma Insurance Department

3625 NW 56^th Street, Suite 100 

Oklahoma City, Oklahoma 73112

(405) 521-6610

 

 

*See Oklahoma Insurance Department bulletin dated 04-23-2012.

 

 

Professional Financial Statements and Property Documents

April 23, 2012

 

 

Governor Fallin approved Senate Bill 1127 on April 17, 2012. The bill amends 59 O.S. §1309(B) and (C) by changing the due date for financial statements and property documents from the last day of the birth month of the bondsman to September 30. SB1127 is effective November 1, 2012.

 

Bail bondsmen holding the professional and property lines of authority (LoA) may voluntarily submit their financial statement and property documents to the Oklahoma Insurance Department by September 30, 2012.

 

If not submitted by September 30, 2012, the financial statement and property documents are due the last day of the birth month of the bondsman.

 

If you choose not to file voluntarily in September 2012, DO NOT WAIT until September 2013. You must still file by the last day of your birth month.

 

Please submit to:

 

Bail Bond Division

Oklahoma Insurance Department

3625 NW 56^th Street, Ste 100

Oklahoma City OK 73112-4511 

 

If you have any questions, please contact the Bail Bond Division at (405) 521-6610 or bail.licensing@oid.ok.gov.  

 

 

 

04/23/2012