61G7-5.0033. Consolidated and Combined Financial Statements

(1) All reviewed or audited financial statements submitted to the Department by Florida licensed employee leasing companies shall be presented in accordance with accounting principles generally accepted in the United States of America (Formerly referred to as (GAAP)), as required by Section 468.525(3)(d), F.S.

(2) An employee leasing company or an employee leasing company group that is a subsidiary or a member of another entity that may otherwise be included in the consolidated financial statements of a parent or a controlling entity, may submit individual reviewed or audited financial statements to satisfy the filing requirements of Section 468.525(3)(e), F.S.

(3) An employee leasing company or an employee leasing company group may be included in the consolidated financial statements of a licensed or non-licensed parent or controlling entity to meet the requirements of Section 468.525(3)(e), F.S., as applicable, so long as there are Board-approved cross guarantees between the parent or controlling entity and all Florida-licensed employee leasing companies included in such statements.

(4) A Florida-licensed employee leasing company, employee leasing company group, employee leasing company groups, or any combination thereof, may submit combined audited or reviewed financial statements to meet the requirements of Section 468.525(3)(e), F.S. as applicable, so long as the combined financial statements are prepared in accordance with GAAP, as referenced above, there is accounting net worth and positive working capital demonstrated in the combined financial statements, and there are Board-approved cross-guarantees among all entities covered in the combined financial statements. Non-Florida licensed employee leasing companies and other entities may be included in the combined financial statements as long they are under common control and their operations are integral to the operations of the Florida-licensed employee leasing company, companies, group or groups, or are integral to the operations of a Non-Florida employee leasing company, companies, group, or groups. Other entities may not be included in combined financial statements. The notes to the combined financial statements must describe the ownership or management control relationships, and the nature and scope of the operations of each entity included in the combined financial statements, to clearly demonstrate that the operations of all included entities are integral to the operations of employee leasing business.

(5) Cross guarantees must be submitted, either at the time of initial application for licensure on a form prescribed by the Department in Rule 61-35.013, F.A.C., or as part of any consolidated or combined financial statement submissions by using Board Form DBPR EL-4518, Board Approved Cross Guarantee Form, incorporated by Rule 61G7-10.002, F.A.C.

Rulemaking Authority 468.522 FS. Law Implemented 468.525(2)(c), (3)(e), 468.526 FS. History-New 5-26-96, Amended 9-5-04, 11-9-06, 8-1-11, 2-8-16, 2-28-18, 7-4-22.