REPORT TO THE OHIO DEPARTMENT OF TRANSPORTATION
Prepared by
Ray G. Stephens, Ohio Center for Professional Accountancy
December 13, 2007
It is understood that the requirements concerning the reports and attestations
currently required by the Department of Transportation (“ODOT”) under Administrative
Rules Sections 5501:2-3-02(B) and (C) were prepared prior to certain changes in auditing
and review standards that have occurred since the year 2000.
The issues to be addressed here are:
First, the currently required reports under Sections 5501:2-3-02(B) and (C) do not
address the differences between review or audit reports for (1) a single entity report, (2)
an entity where the only required consolidation is under Financial Accounting Standards
Board Interpretation 46(R) (“FIN 46R”), (3) an entity which is the parent entity under
Financial Accounting Standards Board Statement of Financial Accounting Standards No.
141 (“SFAS 141”), and (4) an entity which is a subsidiary entity under SFAS 141 or FIN
46R.
Second, the currently required reports do not provide for the different professional
requirements which apply to the (a) financial statements, (b) the consolidating financial
statement when required by ODOT, and (c) supplementary information beyond the
consolidating financial statement required by ODOT. The standards for consolidating
financial statements and other information in documents containing audited financial
statements were revised in 2002.
Third, the currently applicable review and auditing standards differ for different
types of entities. The currently applicable review standards also differ between issuers
(company’s required to provide information to the Securities and Exchange Commission
– in older terminology this was call publicly-held entities) and non-issuers (in older
terminology this was call non-public or privately-held entities). The reason is that issuers
always require an audit and reviews are only for interim statements for issuers. Thus,
issuers would not be able to provide review reports except on an interim basis. Interim
financial statements do not appear to be what is desired by ODOT, but the current
analysis provides for situations where ODOT allows interim statements. The currently
applicable auditing standards also differ between issuers (where the standards are set by
the Public Company Accounting Oversight Board (“PCAOB”)) and non-issuers (where
the standards are set by the Auditing Standards Board (“ASB”)). The standards were
exactly the same when the PCAOB came into existence in 2002 with the passage of the
Sarbanes-Oxley Act, but differences now exist as the two standard setters address
different issues both in the performance and reporting for audits and in applicable
independence standards. These differences are not such that there would be an impact
under Administrative Rules Sections 5501:2-3-02(B) and (C) except in the reports.
Page 1 of 18
Report to Ohio Department of Transportation
December 13, 2007
Page 2 of 18
Review Reports
A review report on the financial statements of a non-issuer1, a subsidiary of an
issuer which is not itself an issuer,2 or an issuer3 for either a single company or a
company whose only consolidation is only under FIN 46R does not require under
existing generally accepted accounting principles (GAAP) a consolidating statement. A
review report must contain the disclosures required by GAAP or provide a GAAP
exception, which should not be acceptable to the Ohio Department of Transportation.
GAAP requires a note to the financial statements which already provides the same
relevant information that would be available from a consolidating statement when the
consolidation is under FIN 46R.
GAAP requires that the only general purpose financial statement for a parent
company is the consolidated financial statement under SFAS 94. A review report on the
consolidated financial statements where consolidation is required by GAAP under SFAS
1414 does not require a consolidating statement under GAAP. Under review standards,
the consolidating financial statement required due to ODOT Administrative rules is
treated as supplementary financial information. However, the materiality for the
consolidating financial information is the materiality of the consolidated statement, not
the materiality of any consolidated entity.
A review report on a subsidiary included in a set of consolidated financial
statements under either SFAS 141 or FIN 46R can be prepared. The materiality for the
subsidiary is the materiality of the consolidated statements unless a separate reporting
engagement on the subsidiary exists. GAAP allows a separate financial statement for a
subsidiary to be prepared where the materiality of the subsidiary is used when a separate
review reporting engagement is undertaken.
A review report already contains the information in the second sentence of the
report pursuant to Section 5501:2-3-02(B) and while this is redundant, it should not
create an issue since it is already required by Statements of Standards for Accounting and
Review Services (“SSARS”) No. 1 codified as AR 100.35.
The remainder of the ODOT required “Report of Independent Accountant –
Review of Financial Statements” is a report on supplemental information under current
review standards. Rather than requiring the information within the ODOT wording, it is
suggested that ODOT require a separate review report on supplemental information to
cover any required consolidating statement and supplemental schedules. This would
1
The applicable standard is SSARS No. 1 as revised.
SSARS Interpretation No. 27 permits applying SSARS rather than SAS in this situation.
3
Auditing Codification Section AU 722 is applicable for reviews where the auditor performs the review.
This could be used for issuers if ODOT is willing to accept interim financial information.
4
This also applies to situations where consolidation includes subsidiary information where both SFAS 141
and FIN 46R consolidation is required.
2
Report to Ohio Department of Transportation
December 13, 2007
Page 3 of 18
eliminate any confusion about the accountant’s relationship, procedures performed, and
responsibility for the consolidating statement and other supplemental schedules that are
submitted as part of the Qualification Application. Further, it would not created wording
issues in the ODOT report if future changes in SSARS or SAS take place since these
would not create a change in the review reports but only in the report forwarded.
In effect, the ODOT review report would be a report by the independent accountant
forwarding the review report in the financial statements, indicating the type of entity
being reported, and a report by the independent accountant forwarding the review report
on the supplemental information. The review report on the supplementary information
would be restricted by the independent accountant to ODOT under SSARS Codification
AR 100.49 to 100.52 (especially the latter paragraph) and Auditing Codification Section
AU 532. Sample review reports are included in Appendix A for each of the two
situations below.
Situation 1
The suggested “Report of Independent Accountant – Review of Financial Statements” for
non-issuers or subsidiaries of issuers which are not issuers would read: 5
Our review report in accordance with Statements on Standards for Accounting
and Review Services dated ___________________ on the review of the
___________ financial statements of _______________ as of ________________
and for the _______________ then ended is included with this Qualification
Application.
The entity is (check applicable):
_____ Entity where no consolidation is required (includes entities which are
subisidiaries where a separate review engagement is performed).
_____ Entity where consolidation only under FASB Interpretation 46R is
required.
_____Entity where consolidation under SFAS 141 is required (includes entities
with both SFAS 141 and FIN 46R is required). A consolidating statement
is required.
_____ Entity is a subsidiary in a consolidated statement. A consolidating
statement is required.
Our review report in accordance with Statements on Standards for Accounting
and Review Services on the supplementary information on pages 15-20 of dated
________________ required for the purposes of the Qualification Application is
included with this Qualification Application.
5
This removes the two redundant sentences currently in the report by referring to SSARS in the body of the
report. It also adds a blank to allow inserting “consolidated” where applicable before financial statements.
Report to Ohio Department of Transportation
December 13, 2007
Page 4 of 18
Situation 2
The suggested “Report of Independent Accountant – Review of Financial Statements” for
issuers would read: 6
Our review report in accordance with Standards of the Public Company
Accounting Oversight Board dated ___________________ on the review of the
___________financial statements of _______________ as of ________________
and for the _______________ then ended is included with this Qualification
Application.
The entity is (check applicable):
_____ Entity where no consolidation is required (includes entities which are
subisidiaries where a separate review engagement is performed).
_____ Entity where consolidation only under FASB Interpretation 46R is
required.
_____Entity where consolidation under SFAS 141 is required (includes entities
with both SFAS 141 and FIN 46R is required). A consolidating statement
is required.
_____ Entity is a subsidiary in a consolidated statement. A consolidating
statement is required.
Our review report in accordance with Standards of the Public Company
Accounting Oversight Board on the supplementary information on pages 15-20 of
dated ________________ required for the purposes of the Qualification
Application is included with this Qualification Application.
Audit reports
An audit report on the financial statements for either a single company or a
company whose only consolidation is only under FIN 46R does not require under
existing generally accepted accounting principles (GAAP) a consolidating statement. An
audit report must contain the disclosures required by GAAP or provide a GAAP
exception, which should not be acceptable to the Ohio Department of Transportation.
GAAP requires a note to the financial statements which already provides the same
relevant information that would be available from a consolidating statement when the
consolidation is under FIN 46R.
6
This presumes that ODOT would accept interim statements for issuers. It also means that the independent
accountant would issue a review report under the auditing standard of the Public Company Accounting
Oversight Board rather than simply performing the interim statement review. This removes the two
redundant sentences currently in the report by referring to applicable auditing standards in the body of the
report.
Report to Ohio Department of Transportation
December 13, 2007
Page 5 of 18
GAAP requires that the only general purpose financial statement for a parent
company is the consolidated financial statement under SFAS 94. An audit report on the
consolidated financial statements where consolidation is under SFAS 1417 does not
require a consolidating statement. Under auditing standards, the consolidating financial
statement required due to ODOT Administrative rules is treated as a special type of
supplementary financial information under Auditing Codification AU 551.18-19 (adopted
as interim standards by the PCAOB). However, the materiality for the consolidating
financial information is the materiality of the consolidated statement, not the materiality
of any consolidated entity unless an additional engagement is undertaken in accordance
with Auditing Codification AU 551.20.
An audit report on a subsidiary included in a set of consolidated financial
statements under either SFAS 141 or FIN 46R can be prepared. The materiality for the
subsidiary is the materiality of the consolidated statements unless a separate reporting
engagement on the subsidiary exists (Auditing Codification AU 551.18-.20).
The other supplementary information required by ODOT in the Qualification
Application is covered under Auditing Codification AU 550.07 with reporting contained
in AU 551.14 with a particular modification that would make it clear that only analytical
procedures and inquiry were performed very similar to the wording in AU 551.15.
Suggested wording would be:
The supplementary information on pages 15-20 is not a required part of the basic
financial statements but is supplementary information prepared by management
and required by the Ohio Department of Transportation. We have applied certain
limited procedures, which consisted of analytical review and inquiries of
management, regarding the methods of measurement and presentation of the
supplementary information. We are not aware of any material modifications that
should be made thereto for such information to be in conformity with accounting
principles generally acceptable in the United States of America when considered
in relation to the Balance Sheet taken as a whole. However, we did not audit the
supplementary information and express no opinion on it.
The paragraph on the consolidating information from AU 551.19, when applicable,
would be added to the audit report. The review report would be a restricted use report by
the auditor under AU 532.
The changes here clearly separate standards for audits from standards for reviews
and state clearly the responsibility of the auditor in accordance with applicable standards.
In effect, the ODOT audit report would be a report by the independent accountant
forwarding the review report in the financial statements, indicating the type of entity
7
This also applies to situations where consolidation includes subsidiary information where both SFAS 141
and FIN 46R consolidation is required.
Report to Ohio Department of Transportation
December 13, 2007
Page 6 of 18
being reported, and a report by the independent accountant forwarding the review report
on the supplemental information. The review report on the supplementary information
would be restricted by the independent accountant to ODOT under Auditing Codification
Section AU 532 (adopted as interim standards by the PCAOB). Sample audit and review
reports are included in Appendix B for each of the two situations below.
Situation 3
The suggested “Report of Independent Accountant – Audit of Financial Statements” for
non-issuers would read:
Our audit report in accordance with Statements on Auditing Standards dated
___________________ on the audit of the ___________financial statements of
_______________ as of ________________ and for the _______________ then
ended is included with this Qualification Application.
The entity is (check applicable):
_____ Entity where no consolidation is required (includes entities which are
subisidiaries where a separate review engagement is performed).
_____ Entity where consolidation only under FASB Interpretation 46R is
required.
_____Entity where consolidation under SFAS 141 is required (includes entities
with both SFAS 141 and FIN 46R is required). A consolidating statement
is required.
_____ Entity is a subsidiary in a consolidated statement. A consolidating
statement is required.
Our review report in accordance with Standards on Auditing Standards on the
supplementary information on pages 15-20 of dated ________________ required
for the purposes of the Qualification Application is included with this
Qualification Application.
Report to Ohio Department of Transportation
December 13, 2007
Page 7 of 18
Situation 4
The suggested “Report of Independent Accountant – Audit of Financial Statements” for
issuers would read:
Our audit report in accordance with Standards of the Public Company Accounting
Oversight Board dated ___________________ on the audit of the
___________financial statements of _______________ as of ________________
and for the _______________ then ended is included with this Qualification
Application.
The entity is (check applicable):
_____ Entity where no consolidation is required (includes entities which are
subisidiaries where a separate review engagement is performed).
_____ Entity where consolidation only under FASB Interpretation 46R is
required.
_____Entity where consolidation under SFAS 141 is required (includes entities
with both SFAS 141 and FIN 46R is required). A consolidating statement
is required.
_____ Entity is a subsidiary in a consolidated statement. A consolidating
statement is required.
Our review report in accordance with Standards of the Public Company
Accounting Oversight Board on the supplementary information on pages 15-20 of
dated ________________ required for the purposes of the Qualification
Application is included with this Qualification Application.
Summary
This report to the Ohio Department of Transportation provides reporting standards
to meet the Ohio Department of Transportation Administrative Rules that meet the
current standards for review and audit reports affecting certified public accountants. This
report was prepared by the Ohio Center for Professional Accountancy at the request of
the Accountancy Board of Ohio. Personnel of the Accountancy Board of Ohio and the
Ohio Center for Professional Accountancy stand ready to meet with the Ohio Department
of Transportation concerning issues raised in this report and suggested changes in the
Ohio Department of Transportation reports for the Qualification Questionnaire and
reports thereunder.
Report to Ohio Department of Transportation
December 13, 2007
Page 8 of 18
APPENDIX A
Situation 1
Language for Report on Financial Statements:
Board of Directors
Company Name
Address
We have reviewed the accompanying balance sheet of ________________ as of
__________________, and the related statements of income and retained earnings and
cash flows for the year then ended, in accordance with Statements on Standards for
Accounting and Review Services issued by the American Institute of Certified Public
Accountants. All information included in these financial statements is the representation
of the management of ________________________.
A review consists principally of inquiries of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made
to the accompanying financial statements in order for them to be in conformity with
generally accepted accounting principles.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 9 of 18
Appendix A (continued)
Situation 1 (continued)
Language for Report on Supplementary Information required by ODOT where no
consolidating financial statement is included:
Board of Directors
Company Name
Address
Our report on our review of the basic financial statements of ________________ for
___________________ and for the __________ then ended has been included with the
material submitted with this Qualification Application. That review was made for the
purpose of expressing limited assurance that there are no material modifications that
should be made to the financial statements in order for them to be in conformity with
generally accepted accounting principles. The information included on pages 15-20 of the
Qualification Application is presented only for supplementary analysis purposes. Such
information has been subjected to the inquiry and analytical procedures applied in the
review of the basic financial statements, and we are not aware of any material
modifications that should be made thereto.
This report is intended solely for the information and use of the board of directors of
________________________ and the Ohio Department of Transportation and should not
be used for any other purpose. The restriction is not intended to limit the distribution of
this report, which is a matter of public record.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 10 of 18
Appendix A (continued)
Situation 1 (continued)
Language for Report on Supplementary Information required by ODOT where
consolidating financial statement is included:
Board of Directors
Company Name
Address
Our report on our review of the basic financial statements of ________________ for
___________________ and for the __________ then ended has been included with the
material submitted with this Qualification Application. That review was made for the
purpose of expressing limited assurance that there are no material modifications that
should be made to the financial statements in order for them to be in conformity with
generally accepted accounting principles. The consolidating financial statements and the
information included on pages 15-20 of the Qualification Application is presented only
for supplementary analysis purposes. Such information has been subjected to the inquiry
and analytical procedures applied in the review of the basic financial statements, and we
are not aware of any material modifications that should be made thereto.
This report is intended solely for the information and use of the board of directors of
________________________ and the Ohio Department of Transportation and should not
be used for any other purpose. The restriction is not intended to limit the distribution of
this report, which is a matter of public record.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 11 of 18
Appendix A (continued)
Situation 2
Language for Report on Financial Statements:
Board of Directors
Company Name
Address
We have reviewed the accompanying balance sheet of ________________ as of
__________________, and the related statements of income and retained earnings and
cash flows for the year then ended, in accordance with Standards of the Public Company
Accounting Oversight Board (United States). All information included in these financial
statements is the representation of the management of ___________________.
A review consists principally of inquiries of Company personnel and analytical
procedures applied to financial data. It is substantially less in scope than an audit in
accordance with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should be made
to the accompanying financial statements in order for them to be in conformity with
generally accepted accounting principles.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 12 of 18
Appendix A (continued)
Situation 2 (continued)
Language for Report on Supplementary Information required where consolidated
financial statements are not included:
Board of Directors
Company Name
Address
Our report on our review of the basic financial statements of ________________ for
___________________ and for the __________ then ended has been included with the
material submitted with this Qualification Application. That review was made for the
purpose of expressing limited assurance that there are no material modifications that
should be made to the financial statements in order for them to be in conformity with
generally accepted accounting principles. The supplementary information on pages 15-20
is not a required part of the basic financial statements but is supplementary information
prepared by management and required by the Ohio Department of Transportation. We
have applied certain limited procedures, which consisted of analytical review and
inquiries of management, regarding the methods of measurement and presentation of the
supplementary information. We are not aware of any material modifications that should
be made thereto for such information to be in conformity with accounting principles
generally acceptable in the United States of America when considered in relation to the
Balance Sheet taken as a whole. However, we did not audit the supplementary
information and express no opinion on it.
This report is intended solely for the information and use of the board of directors of
________________________ and the Ohio Department of Transportation and should not
be used for any other purpose. The restriction is not intended to limit the distribution of
this report, which is a matter of public record.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 13 of 18
Appendix A (continued)
Situation 2 (continued)
Language for Report on Supplementary Information required where consolidated
financial statements are included:
Board of Directors, Company Name, and Address
Our report on our review of the basic financial statements of ________________ for
___________________ and for the __________ then ended has been included with the
material submitted with this Qualification Application. That review was made for the
purpose of expressing limited assurance that there are no material modifications that
should be made to the financial statements in order for them to be in conformity with
generally accepted accounting principles.
The consolidating information is presented for purposes of additional analysis of the
financial statements rather to present the financial position, results of operations, and cash
flows of the individual companies. We have applied certain limited procedures, which
consisted of analytical review and inquiries of management, regarding the methods of
measurement and presentation of the consolidating information. We are not aware of any
material modifications that should be made thereto for such information to be in
conformity with accounting principles generally acceptable in the United States of
America when considered in relation to the consolidated financial statements taken as a
whole. However, we did not audit the supplementary information and express no opinion
on it.
The supplementary information on pages 15-20 is not a required part of the basic
financial statements but is supplementary information prepared by management and
required by the Ohio Department of Transportation. We have applied certain limited
procedures, which consisted of analytical review and inquiries of management, regarding
the methods of measurement and presentation of the supplementary information. We are
not aware of any material modifications that should be made thereto for such information
to be in conformity with accounting principles generally acceptable in the United States
of America when considered in relation to the Balance Sheet taken as a whole. However,
we did not audit the supplementary information and express no opinion on it.
This report is intended solely for the information and use of the board of directors of
________________________ and the Ohio Department of Transportation and should not
be used for any other purpose. The restriction is not intended to limit the distribution of
this report, which is a matter of public record.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 14 of 18
APPENDIX B
Situation 3
Language for report on financial statements where consolidating financial information is
not included:
Board of Directors
Company Name
Address
We have audited the accompanying balance sheets of __________ as ___________, and
the related statements of income, retained earnings, and cash flows for the years then
ended. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our
audit.
We conducted our audits in accordance with auditing standards generally accepted in the
United States of America. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of ____________ as of ______________, and the results
of its operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 15 of 18
Appendix B
Situation 3 (continued)
Language for report on financial statements where consolidating financial information is
included:
Board of Directors
Company Name
Address
We have audited the accompanying balance sheets of __________ as ___________, and
the related statements of income, retained earnings, and cash flows for the years then
ended. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our
audit.
We conducted our audits in accordance with auditing standards generally accepted in the
United States of America. These standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of ____________ as of ______________, and the results
of its operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
Our audit was conducted for the purpose of forming an opinion on the consolidated
financial statements taken a whole. The consolidating information is presented for
purposes of additional analysis of the financial statements of the consolidated financial
statements rather than to present the financial position, results of operations, and cash
flows of the individual companies. The consolidated information has been subjected to
the auditing procedures applied in the audit of the consolidated financial statements, and
in our opinion, is fairly stated in all material respects in relation to the consolidated
financial statements taken as a whole.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 16 of 18
Appendix B (continued)
Situation 4
Language for report on financial statements where consolidating financial information is
not included:
Board of Directors
Company Name
Address
We have audited the accompanying balance sheets of __________ as ___________, and
the related statements of income, retained earnings, and cash flows for the years then
ended. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our
audit.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of ____________ as of ______________, and the results
of its operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 17 of 18
Appendix B
Situation 4 (continued)
Language for report on financial statements where consolidating financial information is
included:
Board of Directors
Company Name
Address
We have audited the accompanying balance sheets of __________ as ___________, and
the related statements of income, retained earnings, and cash flows for the years then
ended. These financial statements are the responsibility of the Company’s management.
Our responsibility is to express an opinion on these financial statements based on our
audit.
We conducted our audits in accordance with standards of the Public Company
Accounting Oversight Board (United States). These standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements
are free of material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation. We
believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material
respects, the financial position of ____________ as of ______________, and the results
of its operations and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
Our audit was conducted for the purpose of forming an opinion on the consolidated
financial statements taken a whole. The consolidating information is presented for
purposes of additional analysis of the financial statements of the consolidated financial
statements rather than to present the financial position, results of operations, and cash
flows of the individual companies. The consolidated information has been subjected to
the auditing procedures applied in the audit of the consolidated financial statements, and
in our opinion, is fairly stated in all material respects in relation to the consolidated
financial statements taken as a whole.
/s/Independent Accountant
Date
Report to Ohio Department of Transportation
December 13, 2007
Page 18 of 18
Appendix B (continued)
Situations 3 and 4
Language for Report on Supplementary Information:8
Board of Directors
Company Name
Address
Our report on our audit of the basic financial statements of ________________ for
___________________ and for the __________ then ended has been included with the
material submitted with this Qualification Application. Our audit was conduced for the
purpose of forming an opinion on the financial statements taken as a whole. The
supplementary information on pages 15-20 is not a required part of the basic financial
statements but is supplementary information prepared by management and required by
the Ohio Department of Transportation. We have applied certain limited procedures,
which consisted of analytical review and inquiries of management, regarding the methods
of measurement and presentation of the supplementary information. We are not aware of
any material modifications that should be made thereto for such information to be in
conformity with accounting principles generally acceptable in the United States of
America when considered in relation to the Balance Sheet taken as a whole. However,
we did not audit the supplementary information and express no opinion on it.
This report is intended solely for the information and use of the board of directors of
________________________ and the Ohio Department of Transportation and should not
be used for any other purpose. The restriction is not intended to limit the distribution of
this report, which is a matter of public record.
/s/Independent Accountant
Date
8
Note that consolidating information, which is supplementary information for review reports, is covered in
the audit report rather than in the review report. Thus, the same supplementary review report will work for
all audited entities.