Cost Reports – General Requirements

Section 900 TITLE 89: SOCIAL SERVICES CHAPTER V: ILLINOIS PURCHASED CARE REVIEW BOARD PART 900 ILLINOIS PURCHASED CARE REVIEW BOARD SECTION 900.320 COST REPORTS – GENERAL REQUIREMENTS Section 900.320  Cost Reports – General Requirements a)         The Board shall require the annual filing of an attested cost report on such financial schedules as the Board may prescribe.  Attested cost reports shall convey information on those items of cost defined as nonallowable in Section 900.321, as well as those defined as allowable in Section 900.322, and shall attribute allowable costs to special education, related services, or room and board. The time period covered by this report must correspond with the provider's fiscal year.  Whenever possible, the Board will accept cost reports filed with other State agencies as fulfilling this requirement.  Cost reports submitted to the Board for purposes of determining allowable costs for nonpublic providers must be accompanied by a certified audit for the most recently ended fiscal year unless the Board waives this requirement.  The cost report submitted to the Board by public providers will be referenced against an audit or annual financial report submitted to the State Board of Education, and shall also include an attestation by the public provider's chief administrator, chief financial officer, or other appropriate administrator that states that the costs included are accurate and specifically attributed to the public provider's program, for the period being reviewed for the purpose of determining the reasonability of the cost report. b)         The Board may waive the requirement for a certified audit and/or for a cost report when it deems either of these to be unnecessary; for example, if: 1)         the number of pupils placed with a provider by Illinois school districts totals fewer than six, except that until August 31, 2023, the Board may waive the requirement for a certified audit and/or for a cost report when it deems the number of pupils placed with a provider by Illinois school districts totals twelve or fewer; 2)         the rate for an out-of-state provider is not negotiable according to law or rules in that state; 3)         the provider's annual operating budget is very low; or 4)         the provider is providing emergency and student-specific placements pursuant to 23 Ill. Adm. Code 226.330(g) or (i). c)         Unless prior arrangements for an extension of the deadline are made with the Board due to extenuating circumstances (such as unexpected loss of key personnel, inadvertent destruction of records due to fire or flooding, bankruptcy, etc.), this report must be filed by the latter of either January 15 or 90 days after the end of the provider's fiscal year, except that a public provider may file its report by June 25, 2025 for a rate during the 2024-2025 school year and by November 15, 2025 for a rate during the 2025-2026 school year. d)         Financial data for nonpublic providers must be reported using the accrual basis for accounting, unless prior arrangements are made with the Board. Financial data for public providers must be reported consistently with the method of accounting in the last submitted annual financial report or audit, unless prior arrangements are made with the Board. e)         The Board may request such additional financial information as is necessary to fulfill its duties.  Circumstances that would cause the Board to request additional information include, but are not limited to, substantial revisions in the provider's program or substantial changes in the population served by the provider.  This may include requiring a provider to submit a certified financial statement if the Board determines that such a statement is needed. f)         Providers shall cooperate in audits undertaken to verify the truth, accuracy, and completeness of reported costs.