This letter transmits a new Title IV-E program rule entitled Public Children Service Agencies, Title IV-agencies, Private Child Placing Agencies (PCPA), Private Noncustodial Agencies (PNA): Audits of Financial Statements and Cost Reports that has been developed for public and private agencies that file cost reports with Ohio Department of Job and Family Services (ODJFS). Also included in this transmittal is "Appendix A" of the rule which contains the "Agreed Upon Procedures" that must be utilized by Certified Public Accounts when verifying the accuracy of private agency cost reports. This rule will become effective on January 1, 2004.

This rule sets forth the agreed upon procedures requirements for cost reports.

• For PCSAs or other public Title IV-E agencies that file a cost report, an annual audit of its cost report will be conducted by ODJFS.
• For PCPAs and PNAs who file an cost report, an agreed upon procedures engagement shall be performed by a certified public accountant. The agreed upon procedures to be applied are found in Appendix A of this rule.
• ODJFS will conduct quality control reviews of the independent audit reports that it receives.

For questions about this letter, please contact the OCF Helpdesk by phone at 1-866-886-3537 Option 4 or by email at HELP-DESK-OCF@odjfs.state.oh.us.

INSTRUCTIONS

The following chart depicts what materials are to be removed from or inserted into the Family, Children and Adult Services Manual (FCASM).