Current through all regulations passed and filed through September 16, 2024
(A) An AEO, a PEO, or a PEO reporting entity
shall prepare financial statements in accordance with generally accepted
accounting principles and submit them electronically for registration and
registration renewal pursuant to sections
4125.05 and
4133.08 of the Revised Code.
(1) The financial statements shall be audited
by an independent certified public accountant authorized to practice in the
jurisdiction in which that accountant is located.
(a) The resulting report of the auditor
is not
to include either of the following:
(i) A qualification or disclaimer of opinion
as to adherence to generally accepted accounting principles;
or
(ii) A statement expressing substantial doubt
about the ability of the AEO, the PEO, or the PEO reporting entity to continue
as a going concern.
(b)
If an AEO or a PEO does not have at least twelve months of operating history on
which to base financial statements, the financial statements
are to
be reviewed by a certified public accountant.
(2) A PEO reporting entity may submit a
combined or consolidated financial statement for its member PEOs to satisfy
this paragraph. If the
combined or consolidated financial statement includes entities that are not
PEOs or that are not in the PEO reporting entity, the controlling entity of the
PEO reporting entity that is submitting the consolidated or combined financial
statement shall guarantee that the PEOs of the PEO reporting entity have
completely satisfied paragraph (B) of this
rule.
(B) An AEO, a PEO,
or a PEO reporting entity
is obligated to maintain positive working capital
at initial or annual registration, as reflected in the financial statements
submitted to the bureau of workers' compensation
under paragraph (A)(2)(j) of rule
4123-17-15.2 of the
Administrative Code. If a deficit in working capital is reflected in the
financial statements submitted to the bureau, the AEO, the PEO, or the PEO
reporting entity shall:
(1) Submit to the
bureau a quarterly financial statement for each calendar quarter during which
there is a deficit in working capital, accompanied by an attestation of the
chief executive officer, president, or other individual who serves as the
controlling person of the AEO, the PEO, or the PEO reporting entity that all
wages, taxes, workers' compensation premiums, and employee benefits have been
paid by the AEO, the PEO, or members of the PEO reporting entity.
(2) Obtain a bond, irrevocable letter of
credit, or securities with a minimum market value in an amount sufficient to
cover the deficit in working capital. Such security
is to be held
by a depository designated by the administrator of
workers' compensation to secure payment by the AEO, the PEO, or the PEO
reporting entity of all taxes, wages, benefits, or other entitlements due or
otherwise pertaining to shared employees, if the AEO, the PEO, or the PEO
reporting entity does not make those payments when due.
