5101:2-47-26.1. Title IV-E agencies, private child placing agencies (PCPA), private noncustodial agencies (PNA), residential care facilities, substance use disorder (SUD) residential facilities and a qualified residential treatment program (QRTP): Title IV-E cost report filing requirements, record retention requirements and related party disclosure requirements

(A) As a condition for receiving a Title IV-E foster care reimbursement ceiling amount, each Title IV-E agency, PCPA, PNA, residential care facility, SUD residential facility, as defined in rule 5101:2-1-01 of the Administrative Code and a QRTP as defined in rule 5101:2-9-42 of the Administrative Code, shall file a Title IV-E JFS 02911 "Title IV-E Single Cost Report" including supplements and attachments as outlined in rule 5101:2-47.26.2 of the Administrative Code.

(B) To complete a JFS 02911 single cost report:

(1) A PCPA, PNA, QRTP, residential care facility, and SUD residential facility shall adhere to:

(a) The allowable and unallowable cost principles contained in the office of management and budget 2 C.F.R. Part 200 (2014) (www.gpo.gov/fdsys/granule/CFR-2014-title2-vo11/CFR-2014-title2-vo11-part200/content-detail.html).

(b) Section 501(c)(3) of the Internal Revenue Code for non-profit organizations (www.irs.gov/publications/index).

(2) A Title IV-E agency shall adhere to allowable and unallowable cost principles contained in the 2 C.F.R. Part 200 (2014) (www.gpo.gov/fdsys/granule/CFR-2014-title2-vo11/CFR-2014-title2-vo11-part200/content-detail.html).

(3) A Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility shall not use any costs specifically subsidized by other federal monies with the exception of federal funds authorized by federal law to be used to match other federal funds.

(4) A Title IV-E agency, PCPA, PNA,QRTP, residential care facility, or SUD residential facility shall use the straight line depreciation methodology to report depreciation.

(C) The JFS 02911 shall be completed for each cost reporting period, which is July first through June thirtieth, and submitted by December thirty-first, following the cost reporting period.

(D) For good cause and upon written request a Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility may request an extension of the cost report filing deadline. The written request shall be filed prior to the deadline and must include information explaining the facts and circumstances giving rise to the need for a cost report extension, projected timeline for filing the cost report and any other information the Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility would like to have considered.

(E) A Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility new to the Title IV-E program or an existing Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility having established a new Title IV-E service shall submit a JFS 02911 for a minimum of three full calendar months of operations in order to receive a Title IV-E reimbursement ceiling amount.

(F) Notwithstanding the three-year records retention period, a cost shall be supported by all relevant documentation related to the reported cost. Financial records, census records, client records and documentation of legal compliance with the administrative code requirements (all of which shall be made available upon request by the Ohio department of job and family services (ODJFS) , the Ohio office of the auditor of the state or the U.S. department of health and human services) supporting the cost reports or claims for services rendered to recipients shall be retained for the greater of three years after the cost report is filed, or if an audit has begun within the three year period records shall be retained three years after all appeal rights relating to the audit report are exhausted.

(G) When completing the JFS 02911 the Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility shall comply with the following requirements pertaining to related party transactions:

(1) Each Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility shall have a conflict of interest policy, to include at a minimum that the Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility shall not permit funds to be paid or committed to any corporation, firm, association, or business in which any of the members of the governing body of the agency, executive personnel or their immediate families have any direct or indirect financial interest, or which any of these persons serve as an officer or employee, unless the services or goods involved are provided at a competitive cost or under terms favorable to the Title IV-E agency,, PCPA, PNA, QRTP, residential care facility, or SUD residential facility.

(2) Adherence to the internal control procedures established by the agency's governing body, for the procurement of goods and services, so long as those procedures are consistent with this rule.

(3) Approval by the governing body of all transactions with any member of the governing body or relatives of the governing body.

(4) Documentation in the board minutes of all transactions between the agency and any member of the governing body or their relatives.

(5) All compensation paid to the board members or relatives of the board members shall be disclosed on the cost reports and is subject to a test of reasonableness.

(6) On the cost report, the Title IV-E agency, PCPA, PNA, QRTP, residential care facility, or SUD residential facility is required to disclose all party transactions as defined in paragraph (G)(1) of this rule and all loans to employees.

Effective: 10/29/2020
Five Year Review (FYR) Dates: 8/13/2020 and 10/29/2025
Promulgated Under: 119.03
Statutory Authority: 5103.03, 5101.141, 5101.145, 5153.166
Rule Amplifies: 5103.03, 5101.141, 5101.145, 5153.166
Prior Effective Dates: 04/15/1988 (Emer.), 07/11/1988, 09/01/1989 (Emer.), 11/30/1989, 05/01/1998, 09/01/2003, 07/01/2004, 09/01/2009, 06/01/2015, 05/01/2019