Instructions for the Auditor

The independent certified public accountant may elect to add a paragraph to the opinion on the basic financial statements. Or, the independent certified public accountant may issue a separate report on the supplementary information. In either case, an opinion must be expressed on the Cost and Revenue schedules of the CFR. An example of an acceptable opinion follows:

• Our audit was performed for the purpose of forming an opinion on the basic financial statements of XYZ, taken as a whole. The accompanying supplemental information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

The manner and extent to which the independent certified public accountant performs particular procedures to support their opinion on the CFR are determined by the independent certified public accountant using his or her professional judgment, but those procedures must include at least the following:

• Obtaining DCFS Rules (89 Illinois Administrative Code Sections 356, 357, 360 and 434). Available here. Obtaining DCFS instructions for preparing the CFR Schedule of Program Costs and Revenue and comparing the classifications used therein to those allowed by the instructions.

• Agreeing the total expense amounts detailed in the CFR Schedule of Program Costs to the provider’s GAAP based financial statements.

• Agreeing the total revenue amounts detailed in the CFR Schedule of Program Revenue to the provider’s GAAP based financial statements and to the program that the revenue was received for.

• Reviewing the methodology used to allocate costs among programs for reasonableness ensuring that the methodology was consistently followed. Agreeing allocated amounts to the general ledger and applicable payroll records.

• Read 89 Illinois Administrative Code 356.60 (Disallowable Costs and Reduced Reimbursement) and the CFR instructions to ensure that those costs are included on Line 47 of the CFR and a detailed list of those costs are included either in a separate attachment or through the use of the on-line CFR.

• Mathematically checking all footings and cross footings on the CFR Schedule of Program Costs and Revenues.