Violation

California Code § 87213Financial Plan & Reporting

How CCLD inspectors cite this regulation, what providers do to stay clear of it, and where it appears in the public record.

Type A, seriousAffects rcfe116 facilities cited in the last 90 days

ℹ️ Educational reference based on public CCLD inspection records. Not legal or compliance advice. Verify requirements with official sources. Full disclaimer →

Regulation text

What California Code § 87213 actually says

California Code § 87213

The licensee shall have a financial plan that conforms to the requirements of Section 87155, Application for License, and that assures sufficient resources to meet operating costs for care of residents; shall maintain adequate financial records; and shall submit such financial reports as may be required upon the written request of the licensing agency. Such request shall explain the need for disclosure. The licensing agency reserves the right to reject any financial report and to request additional information or examination, including interim financial statements. NOTE: Authority cited: Section 1569.30, Health and Safety Code. Reference: Sections 1569.1, 1569.2 and 1569.15, Health and Safety Code.

From the field

What providers tell us about this citation

Based on community experience, not official guidance.

Orange County accounts for 20 of the 125 citations under this regulation, more than any other region in California. LPAs review your financial documentation when complaints allege instability or during annual inspections. If you cannot produce a current financial plan within 48 hours of a written request, CCLD will issue a Type A citation. Keep your financial plan updated quarterly and stored where your administrator can access it immediately.

By the numbers

116^*CCLD: facilities cited in the last 90 days
18^*CCLD: counties where this citation appeared
--^*CCLD: rank among most-common citations
Trajectory: Steady

116 facilities were cited for this in the last 90 days. See if yours is one of them.

Check a facility

What other providers do

Common practices to stay clear of Financial Plan & Reporting

Common practices shared by providers. Confirm requirements with your licensing analyst.

Common practices

Maintain a financial plan conforming to Title 22, Section 87155 that shows sufficient resources for resident care
Keep adequate financial records available for CCLD review upon written request
Submit financial reports promptly when the licensing agency requests them in writing
Update the financial plan whenever there are material changes to operations or financial condition

What to avoid

Operating without a formal financial plan that covers projected resident care costs
Failing to respond to a CCLD written request for financial reports within the required timeframe
Submitting incomplete or inconsistent financial records that do not match operational realities
Not updating the financial plan after a change in ownership, occupancy rates, or service levels

Regional record

Where this citation appeared in the past 90 days

Citation counts and rates by California county, drawn from CCLD inspection records.

Regional citations for Financial Plan & Reporting, last 90 days
County	Citations	Facilities	Citation rate
Orange	20	--	--
Butte	4	--	--
San Joaquin	3	--	--
Sonoma	2	--	--
Sacramento	2	--	--
Napa	1	--	--
Madera	1	--	--
Shasta	1	--	--
Alameda	1	--	--
Ventura	1	--	--

SOURCE

*CCLD: California Community Care Licensing Divisionviolation_citations2026-05-30Updated weekly

FAQ

Frequently asked questions

Answers based on public CCLD data and regulation text. May not reflect recent changes.

What is a financial plan violation under Title 22 § 87213?

Title 22, Section 87213 requires every California RCFE licensee to maintain a financial plan demonstrating sufficient resources to meet operating costs for resident care. A violation occurs when your facility lacks an adequate financial plan, fails to keep proper financial records, or does not submit required reports when CCLD requests them. This regulation protects residents by ensuring the community can sustain operations and care without interruption.

How common are financial plan violations in California assisted living?

According to public CCLD inspection records, 46 California RCFEs received 125 citations under Section 87213 across 18 counties. Orange County led with 20 citations, far more than any other region. These are classified as Type A citations because financial instability can create direct and immediate risk to residents if care services are disrupted. This is one of the more frequently cited regulations in the financial operations category.

What happens if an RCFE is cited for financial plan noncompliance?

CCLD issues a Type A citation when your financial plan does not meet Section 87213 requirements, because insufficient resources pose a direct risk to resident care. The citation requires a plan of correction, and Type A citations carry higher civil penalties than Type B. CCLD may also request additional financial documentation or interim statements. Your facility will receive an unannounced follow-up inspection to confirm compliance with the corrected plan.

How do I fix or prevent a financial plan citation?

Review your financial plan against Title 22, Section 87155 to confirm it demonstrates sufficient resources for at least six months of operations. Maintain organized financial records including bank statements, expense reports, and revenue documentation so you can produce them within 48 hours of a CCLD request. Update your financial plan whenever there is a material change in operations or ownership. Schedule a quarterly review to catch gaps before an LPA does.

Does a financial plan violation affect my RCFE license?

Yes. Under Health and Safety Code sections 1569.1 and 1569.2, CCLD evaluates your financial capacity as part of your license. Repeated failures to maintain an adequate financial plan or to respond to reporting requests can result in conditions on your license, including restrictions on new admissions. In serious cases where financial instability threatens resident welfare, CCLD can initiate suspension or revocation proceedings against your facility.

Related violations

Other citations in this regulation family

This information is educational and does not constitute legal advice. Consult a licensed residential care compliance consultant for guidance specific to your facility. Citation data is sourced from California Community Care Licensing Division public records and is refreshed regularly.

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