NaCCRA members are working on a set of Model Laws designed for two purposes. First, to improve the business and financial practices of CCRC management. Second, to elevate the financial soundness of the entire continuing-care industry, to make sure that prospective residents can rely on the representations made to them during the marketing process.
Matching and consistency principles are fundamental to sound accounting. However, CCRC accounting—as established by the guidelines of the American Institute of Certified Public Accountants and codified by the Financial Accounting Standards Board—departs from these fundamentals. This departure is material since it distorts the recurring fee adjustment calculations. NaCCRA advocates a return to more principled accounting and auditing standards.