Pursuant to IDAPA 18.01.25.011.07 a licensed title
agent acting as an escrow agent shall submit to the Department not less often than December 31 of every third year an audit by an
independent public accountant of its escrow transactions, a verification of open escrows and whether the escrow agent’s records are
maintained in a manner to permit such audit. The audit report shall include:
- A balance sheet as of the close of the audit period, which will be June 30th of the particular year.
- A list of all bank accounts of the escrow agent containing escrow funds showing the name, address and account number.
- A list of any closing escrows which have been open for more than one (1) year at the end of the audit period.
- A list of the number of confirmations requested, number of discrepancies and approximate percentage of escrow accounts verified.
- A statement that the escrow agent has complied with the rules of the Director as to escrow accounts listing any exceptions.
As an alternative, the escrow agent may submit, with the prior approval of the Department, a signed certification of review, in a
standard format as approved by the Director, by its underwriter that it has been subjected to an escrow review performed by the title
insurer. The scope of the escrow review shall include a limited review of escrow transactions and files. This signed certification must
be received no later than December 31 of every third year. If the certification is not deemed adequate by the Director, he may require an
escrow audit by an independent public accountant.
The Department has created this information sheet to ensure that
the escrow audits are more consistent, contain the required information, and to assist the title agent and auditor in the preparation
of the audit.
All escrow audit reports and documentation should be sent to:
Phone: 208-334-4321, FAX: 208-334-4398
Idaho Department of Insurance
700 W. State Street, 3rd Floor
P.O. Box 83720
Boise, Idaho; 83720-0043
If sent by email, a portable document format (pdf) is required.
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