Ohio § 4133.08

§ 4133.08.

(A) An alternate employer organization shall maintain positive working capital at initial

or annual registration, as reflected in the financial statements submitted to the

bureau of workers' compensation.  If a deficit in working capital is reflected in the financial statements submitted

to the bureau, the alternate employer organization shall submit to the administrator

of workers' compensation 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 alternate employer organization that all wages, taxes, workers' compensation

premiums, and employee benefits have been paid by the alternate employer organization.  The letter of credit required under division (D)(1) of section 4133.07 of the Revised Code shall be held by a depository designated by the administrator and shall secure payment

by the alternate employer organization of all taxes, wages, benefits, or other entitlements

due or otherwise pertaining to worksite employees, if the alternate employer organization

does not make those payments when due. (B) An alternate employer organization shall prepare financial statements in accordance

with generally accepted accounting principles and submit them for registration and

registration renewal under section 4133.07 of the Revised Code .  The financial statements shall be audited by an independent alternate public accountant

authorized to practice in the jurisdiction in which that accountant is located. (1) The resulting report of the auditor shall not include either of the following: (a) A qualification or disclaimer of opinion as to adherence to generally accepted accounting

principles; (b) A statement expressing substantial doubt about the ability of the alternate employer

organization to continue as a going concern. (2) However, if an alternate employer organization does not have at least twelve months

of operating history on which to base financial statements, the financial statements

shall be reviewed by a certified public accountant. (3) Notwithstanding division (B)(1)(a) of this section, if an alternate employer organization

is a subsidiary or is related to a variable interest entity, the alternate employer

organization or alternate employer organization entity may submit financial statements

of the alternate employer organization. (C) The bureau shall deny initial or annual registration to an applicant that does not

meet the requirements of this section.