(1) Each YCF shall:

(a) provide a sound financial plan to carry out its defined purposes and provide proper care for children;

(b) provide documentation of sufficient funds or resources for its first year of operation and be able to furnish evidence to that effect;

(c) maintain financial records of all receipts, disbursements, assets, and liabilities; and

(d) upon request by the department, have all accounts audited by an independent auditor who is not regularly employed by the YCF or a member of the YCF's board of directors.

(2) Financial responsibility for medical and dental treatment must be established prior to placement and must usually lie with the parent, guardian, custodian, and/or referring party of the child.

(3) The YCF must show proof that professional or general liability insurance is in effect for the protection of the YCF, staff, and youth.