This letter transmits revisions to Ohio Administrative Code rule 5101:2-47-26.2 now entitled, Cost Report "Agreed Upon Procedures" engagement and to the "Agreed Upon Procedures" contained in Appendix A. These revisions were presented to Certified Public Accountants (CPAs) in regional training sessions conducted in October 2005. The changes are effective December 12, 2005.

An explanation of the rule and appendix revisions appears below:

OAC 5101:2-47-26.2 Cost Report "Agreed Upon Procedures" engagement sets forth the requirement for an annual audit of cost reports completed by public children services agencies, Title IV-E agencies, private child placing agencies (PCPA), and private non-custodial agencies (PNA). This rule is amended to retract all references to the term "audit" and replace with "Agreed Upon Procedures" engagement. Other revisions include the reorganization of content presented within the rule, some additions to the list of items to be submitted along with the "Agreed Upon Procedures" report, as well as some clearer language regarding confidentiality.

" Appendix A" of rule 5101:2-47-26.2 sets forth the procedures to be performed by CPAs to verify the accuracy of costs reported by private agencies. Changes to the "Agreed Upon Procedures" include retracting references to the term "audit", the addition and clarification of steps to be performed during the engagement, and some additions to the list of items to be submitted along with the "Agreed Upon Procedures" report.

INSTRUCTIONS:

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