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S 10090

Relates to adult care facility financial statements

2025 Regular Session Introduced by Shelley Mayer

Most facilities must submit a SSARS-based independent review of their financial statements, replacing the default opinion for most, with a small-facility (nine beds or fewer) exemp

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Bill Summary · S 10090

Summary of Bill S. 10090 (2025-2026) – Relates to adult care facility financial statements (New York)

Purpose and intent

  • The bill amends the Social Services Law to change the filing and certification requirements for adult care facility financial statements.
  • The core change is to require an independent review (rather than an opinion) of the facility’s financial statements, performed in accordance with standards for accounting and review services, for facilities that meet certain size criteria. An opinion by an independent licensed accountant remains possible but is not the default requirement.
  • Purpose: to establish a standardized level of assurance on financial statements submitted by adult care facilities, while allowing flexibility for smaller facilities.

Key provisions and changes

  • Section 1 – Certification/Review Requirements:
    • The closing paragraph of subsection 4(a) of Section 461-e of the Social Services Law is amended.
    • The financial statement for an adult care facility must be accompanied by:
    • A review performed in accordance with the Statements on Standards for Accounting and Review Services (SSARS), conducted by an independent licensed accountant.
    • The statement must clearly indicate that the financial statement represents the financial operations and position of the facility.
    • Exception for small facilities: facilities with a capacity of nine beds or fewer are not required to have the independent review.
    • Departmental discretion retained: the Department of Social Services (or its successor) can require an audit opinion (signed by an independent licensed accountant) if it determines such an opinion is required and necessary, even for facilities above the size threshold.
  • Section 2 – Effective Date:
    • The act takes effect immediately upon enactment.

Who/what is affected

  • Affected entities: adult care facilities regulated under New York Social Services Law, specifically those required to file financial statements with the state.
  • Impacted parties:
    • Independent accountants engaged to prepare or review the facilities’ financial statements.
    • Facility operators and administrators, who must obtain and present the appropriate level of professional assurance (a SSARS review, or potentially an audit opinion if mandated by the department).
    • The New York Department of Social Services, which retains authority to require an audit opinion in certain circumstances.

Procedural and timeline aspects

  • The act is introduced April 28, 2026, and immediately takes effect upon enactment.
  • Current practice change: moving from requiring an opinion (traditional audit) to requiring a SSARS-based review for most facilities, with an exception for very small facilities (nine beds or fewer).
  • The department retains power to override the default by requiring an audit opinion when deemed necessary.

Practical implications

  • For facilities larger than nine beds:
    • Most will submit a financial statement accompanied by a SSARS-based review by an independent licensed accountant.
    • This elevates assurance from a simple compilation or no assurance to a formal review, aiding transparency and potential oversight.
  • For facilities with nine beds or fewer:
    • No independent review is required by default, reducing compliance burden.
  • For the Department of Social Services:
    • Maintains discretion to require an audit opinion if it determines it is necessary, preserving the option for higher scrutiny in specific cases.

Overall takeaway

S. 10090 modernizes the assurance level for adult care facility financial statements by standardizing on independent reviews for most facilities, with a small-facility exemption and continuing department oversight authority to demand higher assurance when warranted.

Compiled from official sources — confirm details with the bill’s official record.

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