863-049-0055 Annual Report and Financial Statements (1) An escrow agent must submit to the Agency by March 31 of each year an Annual Report for the previous calendar year consisting of the following: (a) A schedule of the amount of trust funds received and disbursed each month on collection escrows and the amount of trust funds received and disbursed each month on closing escrows. The schedule must include the beginning balance and the ending balance of each such account and be prepared based upon the individual escrow ledgers for such accounts; (b) A list of closing escrows that have been open for more than twelve months as of December 31 of the previous year, showing the escrow number, date opened, names of principals, the escrow ledger balance, and a statement of the reason the escrow has remained open for more than one year; (c) The amount of clients' trust funds received and disbursed each month by the escrow agent while acting as a trustee under a trust deed pursuant to ORS 86.705 to 86.795. The schedule must include the beginning balance and the ending balance for each account. The schedule must be prepared from the outstanding individual escrow ledgers for such accounts; (d) An executed general authorization to inspect all clients' trust accounts set up as required by ORS 696.578(1) on an Agency-approved form; (e) A list of outstanding checks as of December 31 of the previous year, listed by check number, issue date, payee, and amount, for all escrow trust accounts; and (f) Any other information the Agency deems necessary to administer the provisions of ORS 696.505 to 696.590. (2) An escrow agent must submit to the Agency, not later than 150 days after the end of the agent’s tax or accounting year, a set of the agent’s financial statements as follows: (a) The financial statements must be prepared in accordance with generally accepted accounting principals by a certified public accountant or other qualified person approved by the Agency. (b) The person preparing the financial statements must provide a statement of the type of the presentation made and include all appropriate notes to the financial statement. (c) The financial statements must include the following: (A) A balance sheet as of the agent’s year end; (B) Statement of profit and loss; (C) Statement of cash flows; (D) Statement of retained earnings; and (E) Any other changes in capital accounts for the year then ended. (d) As part of the report submitted under this rule, the escrow agent must authorize the Commissioner or the Commissioner's authorized representative to examine and verify any asset or liability shown on the balance sheet. The authorization must be in writing and submitted to the Agency with the report. (3) The Commissioner may grant an extension of time, to be determined by the Commissioner, for filing reports submitted under sections (2) or (3) of this rule if the agent so requests in writing and provides sufficient reason why the agent cannot file the reports by the specified date. (4) The reports required by this rule must be signed by the escrow agent or appropriate corporate officer of the escrow agent attesting to the accuracy of the information contained in the report. Statutory/Other Authority: ORS 696.541 Statutes/Other Implemented: ORS 696.534 History: REA 26-2018, minor correction filed 01/05/2018, effective 01/05/2018 REA 1-2009, f. 12-15-09, cert. ef. 1-1-10