Session 8:
PPMS Application
©2016 ACA International
All Rights Reserved.
Page 343
Application Process
 Attend required Compliance seminar
 Choose from:
• Introduction to Collection Industry Compliance
• Advanced Compliance: Conducting a Risk
Assessment
• Advanced Compliance: Controls and Corrective
Actions
 Complete and return the application to
ACA
 PPMSTM Application
-
Please see end of this section for application
 ACA will then send you a copy of the
evaluation agreement
 Sign and return this agreement with the
appropriate fees
 Application Process Flowchart
 Please see end of this section for application
flowchart
©2016 ACA International
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Page 344
Evaluation Agreement
 The Agreement Covers the Following:
 Identifies the parties of the Evaluation
Agreement (e.g., ACA and the Agency
pursuing certification/subscription)
 Scope of the Agreement
-
Agency agrees to the PPMSTM criteria
Agency agrees to submit documentation to
evaluator
ACA agrees to ensure that evaluator will provide
evaluation services
 PPMSTM Fee
 Termination (i.e., either party can terminate
agreement)
-
Agency - decides to drop from the PPMSTM
program
ACA - Agency does not comply with PPMSTM
rules (e.g., does not submit documents, does not
pay fee, etc.)
 Confidentiality - Except required by law,
information submitted will be kept
confidential
 Legal Boiler Plate Clauses
©2016 ACA International
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Page 345
Relationship of ACA and
Evaluation Organization
 ACA
 Receives Applications, Evaluation
Agreement and PPMSTM Fees
 Evaluation Organization
CliftonLarsonAllen, LLP (Subcontracted to
ACA)
 Receives documentation from Agencies for
evaluation
 Maintains a register of certified agencies
 Performs administrative functions regarding
certification
-
©2016 ACA International
All Rights Reserved.
records
notifies agencies when submissions are required
answers questions
Page 346
Certification Level
Attend 1-day face-to-face or 3-day
online PPMSTM Training and one CCCO
Compliance seminar*
Agency meets
certification requirements
Submit application, evaluation
agreement and fees to ACA
Surveillances: submit partial
documentation for evaluation
Yes
Approved
Attested by a local CPA firm
(depends on certification cycle)
No
Re-certification:
submit full documentation
Submit documentation
and records to CliftonLarsonAllen, LLP
Follow-up questions if
information is lacking or incomplete
Evaluation of documentation and
records by CliftonLarsonAllen, LLP
Submit additional information
*Eligible CCCO compliance seminars include: Introduction to Collection Industry Compliance, Advanced
Compliance: Conducting a Risk Assessment, Advanced Compliance: Controls and Corrective Actions, OR, if
someone on your staff holds the CCCO designation that will satisfy the compliance requirement as well.
©2016 ACA International
All Rights Reserved.
Page 347
Submission
Requirements for Certification
 A copy of a certificate that an employee
attended ACA’s PPMSTM training.
 A copy of a certificate or proof that at least
one employee attended outside
professional practices training over the
last 12 months (i.e., training that supports
the ACA PPMSTM).
 A signed copy of minutes from the
Agency’s Management’s review of legal
changes and developments over the past
year.
 A signed copy of the title page and table
of contents from the Agency’s
Professional Practices Manual.
©2016 ACA International
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Page 348
Submission
Requirements for Certification
 A signed copy of the minutes from at least
one management review that has taken
place over the last three months.
 A signed statement that the Agency’s
Professional Practices Management
System complies with the ACA PPMSTM.
 A signed copy of the latest Management
Review Meeting. Management Review
Checklist (101-1)
 A signed copy of the non-conformance
trends (i.e., by element of the ACA
PPMSTM) over the last three months. Only
three months are required for initial
certification. Twelve months are required
for surveillance and recertification.
©2016 ACA International
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Page 349
Submission
Requirements for Certification
 Trend Analysis Form (Jan-June) (102-1) &
Trend Analysis Form (July-Dec) (102-2)
 A signed copy of the client issues log.
Client Issues Log (302-2)
 A signed copy of one completed
corrective action report from the last 3
months. Non-conformity &
Corrective/Preventive Action Report
(1201-1)
 A signed copy of the non-conformance
log. Non-conformity & Corrective Action
Log (1201-2)
©2016 ACA International
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Page 350
Submission
Requirements for Certification
 A signed copy of a list of the continuous
improvement projects that were worked
on over the last 3 months. Continuous
Improvement Log (1201-3)
 A signed copy of a status report of one of
the continuous improvement projects
listed. Continuous Improvement Status
Report (1201-4)
 A signed copy of the Internal Audit
Checklist (1503-1), covering the last 3
months.
©2016 ACA International
All Rights Reserved.
Page 351
Submission
Requirements for Certification
 A signed copy of the training course log
covering at least the last three months
showing training that has taken place over
the past three months, including but not
limited to, training on ACA’s Code of
Ethics for all of your employees. Training
Course Log (1603-1)
©2016 ACA International
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Page 352
Recommendations to Consider when
Submitting Documentation
 The Management Review Checklist (1011) should be supported by minutes of the
Management Review Meeting (i.e.,
minutes should cover topics discussed in
the meeting including any legal changes
and developments).
 The Continuous Improvement Log (12013) should support the continuous
improvement program (i.e., projects
should provide evidence that an agency is
working on problems to reduce Nonconformance Trends (102-1 & 102-2).
©2016 ACA International
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Page 353
Recommendations to Consider when
Submitting Documentation
 When the Internal Audit Checklist (15031) indicates that a category “Needs
Improvement” or is “Unsatisfactory,” the
issue should show up on the appropriate
logs (1201-2 & 1201-3). This provides
evidence that the quality management
system is working.
 When a problem shows up on the Client
Issues Log (302-2) or the Non-conformity
& Corrective Action Log (1201-2), it would
be expected that the submitted Nonconformity & Corrective Action Report
(1201-1) would be traceable back to one
of these logs.
©2016 ACA International
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Page 354
Management Review Checklist
Required Form (101-1)
 Minimum Requirements*
 Forms Section (PPMS™ Sample Manual)
page 6
Management Review Checklist
Date
Agenda*
1
Financials
2
Management Policies and Objectives
3
Client Issues
4
Compliance Programs
5
Client Satisfaction
6
Continuous Improvements (Progress
of Projects)
Audit Results
7
8
9
Performance Measurements against
Goals
Legal Review
10
Information Security
Time
Location
Presented By
Date Completed
11
12
* Please submit either the minutes of the meeting or the presentations for 2 of the above subjects
listed on the agenda.
©2016 ACA International
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Page 355
Trend Analysis Forms
Required Forms (102-1) & (102-2)
 What do you do if a non-conformance falls
into a number of categories?
 Place the Non-conformance in the category it
most falls into
-
©2016 ACA International
All Rights Reserved.
Forms Section (PPMS™ Sample Manual) pages
7-8
Page 356
Trend Analysis - Management Review Issues
Year: _____
Totals
Feb.
March
April
May
June
1. Management Responsibility
2. Management System
3. Review of Client Issues
4. Document & Data Control
5. Purchasing
6. Control of Client & Customer Supplied
Data
7. Data Identification & Traceability
8. Process Control
9. Inspection & Testing
10. Inspection & Test Status
11. Identification of Non-conformity
12. Corrective Action, Preventive Action &
Continuous Improvement
13. Handling, Storage, Preservation & Del.
14. Management of Records/Data
15. Internal Management Audits
16. Training
17. Process & Client Satisfaction
Measurements
18. Information Management Systems and
Data Protection
Totals
* Other = minor non-conformity or preventive action
©2016 ACA International
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Page 357
*Other
Major Nonconformances
*Other
Major Nonconformances
*Other
Major Nonconformances
*Other
Major Nonconformances
*Other
Major Nonconformances
*Other
Major Nonconformances
*Other
Major Nonconformances
Element of the ACA’s PPMS™
Jan.
Client Issues Log
Required Form (302-2)
 We do not want a copy of the issue that is confidential between the client
and agency.
 Forms Section (PPMS™ Sample Manual)
page 19
CC Log #
Client Name or Client #
Received By
Date Received
*NCAR #
Date Closed
1
Metro Hospital
Mary
12/15/99
991215
1/20/2000
2
Local Mortgage Co.
Bob
2/20/2000
000220
2/27/2000
3
Student Loan Co.
Rod
3/18/2000
000318
4
©2016 ACA International
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Page 358
Non-conformity & Corrective
Action Report
Required Form (1201-1)
 Only one non-conformity is required
 Forms Section (PPMS™ Sample Manual)
page 29
Department: Operations
Corrective/Preventive Action #: 990301
Date opened Corrective/Preventive Action: 11/3/99
Targeted/Proposed Resolution Date: 12/03/99
1. Describe Nonconformity or Goal of Preventive Action:
Found ABC client supplied data was released to the operation’s center without having gone through the receiving
inspection checks per procedure 9.1.a
Written by: Mary Foundit
Supervisor’s Signature:
Date: 11/2/99
ACA Element #: 9.1.a
2. Action taken to contain nonconformity (i.e., if applicable) :
Removed data from call center and stopped calls on this contract.
Action taken by whom: Carla Smart
Date: 11/3/99
3. Team or individual assigned to solve problem or potential problem: Tom Helpful & Janet Follow-up
4. Root Cause of the problem or potential problem:
Lack of training. New procedure 9.1.a requires all new contracts to be reviewed by the contract administrator prior
to being released to operations. The operations manager found the data on the file server and thought it had
been released.
Date: 11/9/99
5. Corrective/Preventive Action recommended to solve problem:
Train all sales, operations, and contract personnel on new procedure 9.1.a Partition the server so that raw data
received from clients will be this section of the server. When data has been reviewed by the contract
administrator the data will be transferred to operations with an electronic release note. Modify procedure 9.1.a to
reflect this update.
Date: 11/14/99
6. Date Corrective/Preventive Action implemented: 11/14/99
7. Describe effectivity results (i.e., did the corrective/preventive action solve the problem):
Five new contracts have been received since implementing the modified procedure on 11/14/99. All Contracts
have been reviewed before release to operations.
Compliance Officer Signature:
Date Corrective/Preventive Action closed: 12/14/99
8. Date reviewed for trend analysis: 1/31/00
9. Comments: Categorized as a training and client review issue
©2016 ACA International
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Major NCN
Minor NCN
Page 359
Non-conformity & Corrective
Action Log
Required Form (1201-2)
 Forms Section (PPMS™ Sample Manual)
page 30
Corrective
Action
Number
Date
Opened
Assigned Team
or Individual
990301
11/3/99
Tom Helpful &
Janet Follow-up
©2016 ACA International
All Rights Reserved.
* Projected
Corrective
Action
Solution
Due Date
Date
Corrective
Action
Implemented
Date
Corrective
Action
Reviewed for
Effectivity
Date
Closed
Element of
the PPMS
(*Major NCN)
11/12/99
11/14/99
12/12/99
12/12/99
3
Page 360
Continuous Improvement Status Report
Required Form (1201-4)
 You do not need to fill out all five steps.
 If you can do the project in three steps
versus seven steps, that is fine.
 Forms Section (PPMS™ Sample Manual)
page 32
Assigned Team or Individual: Terry Riley
File Locator ID: CI 990910
Date Continuous Improvement Started: 9/10/99
ACA Element #: 8
A. Briefly Describe Continuous Improvement Project: Garnishment process takes a lot of time to print forms (9 forms for ea ch
garnishment) and sort forms. Will simplify process to reduce cost and mistakes.
Written by: Terry Riley
Date: 9/10/99
B. Key Status Milestones, if any (example – planning stage, training, pilot program, implementation, etc.):
1. Survey software companies
2. Select new software
3. Beta test software & train employees
4. Run pilot test
5. Implement new process
Written by: Terry Riley
1. First Milestones - Describe what was accomplished:
Date: 9/12/99
Scheduled Completion Date:
Three software companies demonstrated their software at our agency. Compared results
and made Recommendation.
Written by: Terry Riley
2. Second Milestones - Describe what was accomplished:
Date Completed: 9/21/99
Scheduled Completion Date:
Selected and purchased XYZ Software
Written by: Terry Riley
3. Third Milestones - Describe what was accomplished:
Date Completed: 9/25/99
Scheduled Completion Date:
Beta test software & trained employees
Written by: Terry Riley
©2016 ACA International
All Rights Reserved.
Date Completed: 10/1/99
Page 361
Continuous Improvement
Project Log
Required Form (1201-3)
 You should show at least one project per
year
 Forms Section (PPMS™ Sample Manual)
page 31
Description of Continuous
Improvement Project
Assigned Team or
Individual
File Locator
ID
Date Project
started
Date Project
Completed
Garnishment Process
Terry Riley
990910
9/10/99
10/19/99
Judgement Process
Bob Jones
001101
1/11/00
Still Open
You should show at least
one project per year
©2016 ACA International
All Rights Reserved.
Page 362
Internal Audit Checklist
Required Form (1503-1)
 Comments section must be filled in:
(satisfactory, needs improvement,
unsatisfactory, NA, Etc.)
 Forms Section (PPMS™ Sample Manual)
pages 42-50
Element
#
Requirement
Compliance Check
Recommended Records
{*element requires record(s) or
document}
Comments
{Satisfactory}
{Needs
Improvement}
{Unsatisfactory}
{NA}
If needs
improvement or
unsatisfactory must
indicate corrective
action # or
continuous
improvement file ID
1 - Management Responsibility
1.a
Management
Policy
1
Management must develop
a policy statement.
1.
2.
Verify that the
management policy exists
& is documented.
Is the policy relevant (e.g.,
if the policy includes client
satisfaction, how is it being
supported).
*
Documented Management Policy
1.b
Organization
2
The organization must
have the resources and
the proper delegation of
responsibility and authority
to carry out its
management policy.
Review company manual,
procedures & job descriptions
(i.e., if available) to verify
responsibilities & authority of
personnel.
1.
2.
1.c
Management
Review
3
Senior management must
annually compare its
performance to its
management policy.
1.
*
Management review records (i.e., the records should show
participation, & agenda covered).
©2016 ACA International
All Rights Reserved.
Examine management
review records
Organization charts
Assignments of
responsibilities & authority
listed in company manual,
procedures & job
descriptions.
Page 363
Training Course Log
Required Form (1603-1)
 Record for training
 A blank log is not acceptable
 Forms Section (PPMS™ Sample Manual)
page 54
Description of Training Course
©2016 ACA International
All Rights Reserved.
Date
No. of People in
Attendance
Length of
Course (hrs.)
Page 364
Certification Process
Attesting Procedures
 On-site Attestation by Independent CPA (for
certification and re-certification only)
 Will follow a procedure.
 Will compare file documents/records with log sheets to
see if they agree.
 May take a random sample of some
documents/records that are shown on the log sheet.
These would be copied but not evaluated by CPA.
 Sign a statement that the log sheets are an accurate
representation of the records in the file.
 Submit requested documentation to independent
evaluation firm.
 Records that will be looked at:
-
Management Review Record
-
Continuous Improvements
-
Completed Non-conformity & Corrective Action Reports
-
Training Log, including verification that all employees have
been trained on ACA’s Code of Ethics
 The whole process should take approximately 2
hours.
©2016 ACA International
All Rights Reserved.
Page 365
Certification Process
Attesting Procedures
 The independent CPA assembles the
required certification logs and records that
need to be submitted to the evaluation
organization.
 The following attestation was performed
by the CPA:
 That there are Professional Practice
Management Procedures to support all 18
elements in the ACA PPMSTM.
 That there are reports, minutes or records
supporting the Management Review
Checklist (101-1).
 That there are reports, minutes or records
supporting the continuous improvement
program(s) listed in the Continuous
Improvement Project Log (1201-3) (sample
minimum 1).
©2016 ACA International
All Rights Reserved.
Page 366
Certification Process
Attesting Procedures
 That there are reports, minutes, or records
supporting that there was a review of legal
changes and developments.
 That there are completed Non-conformity &
Corrective/Preventive Action Reports (12011) (i.e., all items filled in – sample minimum
3) supporting the Non-conformance Log
(1201-2).
 That there are Training Sign-in Sheets
(1602-1) (sample minimum 3) including but
not limited to, training on ACA’s Code of
Ethics, to support the Training Course Log
(1603-1).
 Attesting Report
 Please see end of this section for a copy of
the attesting report.
©2016 ACA International
All Rights Reserved.
Page 367
Evaluator Organization’s
Certification Process
 Evaluation of documents and records
(Compliance & Adequacy Test)
 Will follow a procedure approved by the
PPMSTM Committee
 Evaluation Organization will review samples
of submitted documents to see if they meet
certification requirements
-
Has an annual internal audit taken place that
covered all elements of the ACA PPMSTM?
Has an annual Management Review taken
place?
Etc.
 If information is missing or is lacking, the
agency will be given 30 days to provide
further information
 Agencies may appeal decisions of the
evaluation organization
 Certificates will be issued to agencies that
comply with the ACA PPMSTM Program
©2016 ACA International
All Rights Reserved.
Page 368
Evaluator Organization’s
Certification Process
 Major Non-conformance




May be a long standing minor non-conformance from a
previous evaluation
A collection of similar non-conformances indicating a
widespread problem
Detrimental to the service delivered to the client
A failure of significant deficiency in the management system
governed by the ACA PPMSTM
 Minor Non-conformance

A non-conformance that is not the severity indicated above
Agency Name:
Address:
Agency Contact Person:
Evaluator:
File Locator ID: C NCN # (Yr./Month/Seq. #): NCN Clause of the PPMS:
A. DESCRIPTION OF NONCONFORMANCE:
Severity:  Major (needs to answered in 90 days)
 Minor (needs to answered by next submission)
Nonconformance - an observation that indicates policy or practice contrary to the evaluation criteria.
Major Nonconformance
- May be a long-standing minor nonconformance from previous evaluations, or a collection of similar minor
nonconformances indicating a widespread problem.
- Established as detrimental to the service delivered to the client.
- A failure or significant deficiency in a significant part of the management system governed by the AC A
PPMS.
Minor Nonconformance
A nonconformance that is not of the severity indicated by the definition of a major nonconformance, above,
but which must be actioned.
Agencies are expected to respond to the nonconformance in 30 days. If the corrective action takes longer than 30
days to correct, the agency must still respond in 30 days with a corrective action plan and expected closeout date.
Evaluators Signature:
Date:
Agency Authorized Signature:
Date:
©2016 ACA International
All Rights Reserved.
Page 369
Surveillance Requirements
 Surveillance Submission Requirements to
Maintain Certification Level PPMSTM
Status (Second, Third and Fourth Years)
 A signed copy of the latest Management
Review Meeting including minutes of the
meeting. Management Review Checklist
(101-1)
 A signed copy of a list of the continuous
improvement projects that were worked on
over the last 12 months. Continuous
Improvement Project Log (1201-3)
 A signed copy of the non-conformance
trends (i.e., by element of the ACA PPMSTM
Elements) over the last 12 months. Trend
Analysis Forms (102-1 & 102-2)
 A signed copy of minutes from the Agency’s
Management’s review of legal changes and
developments over the past year.
©2016 ACA International
All Rights Reserved.
Page 370
Surveillance Requirements
 A signed copy of the Internal Audit Checklist
covering the last 12 months. Internal Audit
Checklist (1503-1)
 A signed copy of the client issues log covering
the last 12 months. Client Issues Log (302-2)
 A signed copy of the non-conformance log
covering the last 12 months. Non-conformity &
Corrective Action Log (1201-2)
 A signed copy of the training course log covering
at least the last 12 months showing training that
has taken place over the past 12 months,
including but not limited to, training on ACA’s
Code of Ethics for all of your employees. Training
Course Log (1603-1)
 An agency will be notified approximately 11
to 14 months after certification regarding the
submission of surveillance records.
 For re-certification, records should be
submitted 30 days prior to expiration of
certification certificate.
©2016 ACA International
All Rights Reserved.
Page 371
Subscription Level
Attend 1-day face-to-face or 3-day
online PPMSTM Training and one CCCO
Compliance seminar*
Setup & maintain a documented
PPMSTM Manual
that agrees with the ACA PPMSTM
Documentation and
Compliance Requirements:
Yes
Submit application, evaluation
agreement and fees to ACA
Increases each year in the
program
Approved
No
Submits required
documentation and records to
CliftonLarsonAllen, LLP
Follow-up questions if
information is lacking or incomplete
Evaluation of documentation and
records by CliftonLarsonAllen, LLP
Submit additional information
*Eligible CCCO compliance seminars include: Introduction to Collection Industry Compliance, Advanced
Compliance: Conducting a Risk Assessment, Advanced Compliance: Controls and Corrective Actions, OR, if
someone on your staff holds the CCCO designation that will satisfy the compliance requirement as well.
©2016 ACA International
All Rights Reserved.
Page 372
First Year Submission Requirements*
for Subscription
 *All documentation and information
provided must cover the previous 3
months.
 A copy of a certificate that an employee
attended ACA’s PPMS™ training.
 A signed copy of the client issues log. Client
Issues Log (302-2)
 A signed copy of one completed corrective
action report from the last 3 months. Nonconformity & Corrective/Preventive Action
Report (1201-1)
 A signed copy of the non-conformance log.
Non-conformity & Corrective Action Log
(1201-2)
©2016 ACA International
All Rights Reserved.
Page 373
Second Year Submission
Requirements* for Subscription
 *All documentation and information provided
must cover the previous 12 months unless
otherwise noted.
 All documentation that was submitted in year
one.
 A signed copy of the training course log
covering at least the last 12 months showing
training that has taken place over the past 12
months, including but not limited to, training
on ACA’s Code of Ethics for all of your
employees. Training Course Log (1603-1)
 A copy of a certificate or proof that at least
one employee attended outside professional
practices training over the last 12 months
(i.e., training that supports the ACA PPMS™).
 A signed copy of the non-conformance trends
(i.e., by element of the ACA PPMS™) over the
last 12 months. Trend Analysis Form (JanJune) (102-1) & Trend Analysis Form
(July-Dec) (102-2)
©2016 ACA International
All Rights Reserved.
Page 374
Third Year Submission
Requirements* for Subscription
 *All documentation and information
provided must cover the previous 12
months unless otherwise noted.
 All documentation that was submitted in
years one and two.
 A signed copy of a list of the continuous
improvement projects that were worked
on over the last 12 months. Continuous
Improvement Log (1201-3)
 A status report of one of the continuous
improvement projects listed. Continuous
Improvement Status Report (1201-4)
©2016 ACA International
All Rights Reserved.
Page 375
Fourth Year Submission
Requirements* for Subscription (cont.)
 *All documentation and information
provided must cover the previous 12
months unless otherwise noted.
 All documentation that was submitted in
years one, two and three.
 A signed copy of minutes from the
Agency's Management's review of legal
changes and developments over the past
year.
 A signed copy of the latest Management
Review Meeting. Management Review
Checklist (101-1)
©2016 ACA International
All Rights Reserved.
Page 376
Submission Requirements* for
Subscription (Years 5+)
 *All documentation and information
provided must cover the previous 12
months unless otherwise noted.
 All documentation that was submitted in
years one, two, three and four.
 A signed copy of the title page and table
of contents from the Agency's
Professional Practices Manual.
 A signed copy of the minutes from at least
one management review that has taken
place over the last 12 months.
 A signed statement that the Agency's
Professional Practices Management
System complies with the ACA PPMS™.
 A signed copy of the Internal Audit
Checklist (CF 1503-1), covering the last
12 months.
©2016 ACA International
All Rights Reserved.
Page 377
Evaluator Organization’s
Subscription Process
 Evaluation of documents and records
 Will follow a procedure approved by the
PPMSTM Committee.
 Will review samples of submitted documents
to see if they meet subscription
requirements.
-
Depends on number of years in the program
Is periodic training provided to employees?
Etc.
 If information is missing or is lacking, the
agency will be given a chance to provide
further information.
 Agencies may appeal decisions of the
evaluation firm.
 Certificates will be issued to agencies that
comply with the ACA Subscription
Requirements.
 Subscribed agencies will be allowed to use
the PPMSTM Subscribed logo.
©2016 ACA International
All Rights Reserved.
Page 378
Evaluator Organization’s
Subscription Process
 Compliance Test *
 Compliance with all the requirements in the
Subscription Submission Requirements,
including the proper information, timeliness,
proper format (i.e., where templates are
provided).
-
*No Adequacy Test is performed in subscription
 Non-conformances
 Closed out Non-conformance(s) from last
submission
©2016 ACA International
All Rights Reserved.
Page 379
Evaluator Organization’s
Subscription Process
 Non-conformance Note
 The difference between a non-conformance
for Certification and Subscription is how it is
evaluated.
Agency Name:
File Locator ID: S -
Address:
Agency Contact Person:
NCN # (Yr./Month/Seq. #): NCN -
Evaluator:
Clause of the Standard:
A. Description of Nonconformance:
Severity: ___Major (needs to answered in 90 days)
___Minor (needs to answered by next submission)
Nonconformance - an observation that indicates policy or practice contrary to the evaluation criteria.
 Major Nonconformance
- A long-standing minor nonconformance from previous evaluations
- Established as detrimental to the service delivered to the client
 Minor Nonconformance – a nonconformance that is not of the severity indicated by the definition of a major nonconformance, above,
but which must be actioned.
Agencies are expected to respond to the nonconformance in 30 days. If the corrective action takes longer than 30 days to correct,
the agency must still respond in 30 days with a corrective action plan and expected closeout date.
Evaluators Signature:
Date:
Agency Authorized Signature:
Date:
Corrective Action Follow-up (evaluator use only):
___Proper documentation has been submitted and satisfies the nonconformance(s)
Date:
___Proper documentation has been submitted, but further action is required to close the
nonconformance(s)
Date:
___Evidence/records have been received and satisfies the nonconformance(s)
Date:
Corrective Action Reviewed by:
Date:
©2016 ACA International
All Rights Reserved.
Page 380
PPMSTM Certification Fees
 Initial Certification Fees (See Note 1)
 Required Fees - $1,390 (ACA Member Rate)
-
(These fees do not include internal costs incurred by the
agency.)
 Optional Fees
-
Local Audit/CPA Fee (estimated) (See Note 3) - $300
Corrective Action Evaluations for major non-conformances
(per evaluation) - $200 (See Note 2)
 Note 1: Contact ACA for multi-site fees.
 Note 2: If the Evaluator determines that the
Agency’s PPMSTM is not compliant, additional
fees for special evaluations may be required.
 Note 3: Submittals and evaluations will be
conducted annually. A CPA is needed for
certification and recertification only. The fee to
the CPA will be paid directly to the CPA by the
agency. It’s estimated that a CPA will need about
two hours to gather this information.
 Surveillance and Re-certification Fees

Please see the end of this section for a copy of the fees
 These fees are an approximation and are subject
to change.
©2016 ACA International
All Rights Reserved.
Page 381
PPMSTM Subscription Fees
 Initial Subscription Fees (See Note 1)
 Required Fees - $695 (ACA Member Rate)
-
(These fees do not include internal costs incurred
by the agency.)
 Optional Fees
-
Corrective Action Evaluations for major nonconformances (per evaluation) - $200 (See Note
2)
 Note 1: There is no multi-site discount in
the subscription level.
 Note 2: If the Evaluator determines that
the Agency’s PPMSTM is not compliant,
additional fees for special evaluations may
be required.
 Surveillance Fees
 Please see the end of this section for the fees
 These fees are an approximation and are
subject to change.
©2016 ACA International
All Rights Reserved.
Page 382
Professional Practices Management System Application Process
PPMS™ Application Process*




Complete and return the application to ACA International.
ACA will then send you a copy of the evaluation agreement. Sign and return this agreement with the appropriate fees.
Once the application, evaluation agreement and fees are received, you will be asked to send the required documentation directly to
CliftonLarsonAllen, LLP. Please don’t send any documentation to CliftonLarsonAllen, LLP until you have received notification from
ACA that your application process is complete.
To achieve certification, various record logs need to be attested to by an independent CPA. Attested means the records that support
various logs are on file. It does not mean an evaluation was made to express an opinion. An independent CPA means a Certified
Public Accountant that is not involved with or has influence over the agency’s business (i.e., the CPA cannot be an employee of the
agency). The independent CPA shall sign and submit a letter/report supplied by ACA stating their independence and that they
followed the prescribed procedures required by the ACA PPMS™ Committee. Agencies shall select and compensate the CPA of their
choice for services rendered.
* If you are applying for multi-site certification, please contact ACA International for additional requirements.
Required documentation needed for Certification to be sent to CliftonLarsonAllen, LLP:
















A copy of a certificate that an employee attended ACA’s PPMS™ training.
A copy of a certificate or proof that at least one employee attended outside professional practices training over the last 12 months
(i.e., training that supports the ACA PPMS™).
A signed copy of minutes from the Agency’s Management’s review of legal changes and developments over the past year.
A signed copy of the title page and table of contents from the Agency’s Professional Practices Manual.
A signed copy of Training Course Log (1603-1). Please be sure that your log includes ACA’s Code of Ethics training for all of your
employees.
A signed copy of the minutes of at least one management review that has taken place over the last 12 months.
A signed statement that the Agency’s management system complies with the ACA PPMS™.
A signed copy of Management Review Checklist (101-1) - (including minutes of one meeting).
A signed copy of Trend Analysis Form (102-1) (Jan-June).
A signed copy of Trend Analysis Form (102-2) (July - Dec).
A signed copy of Client Issues Log (302-2).
A signed copy of Non-conformity & Corrective Action Report (1201-1).
A signed copy of Non-conformity & Corrective Action Log (1201-2).
A signed copy of Continuous Improvement Log (1201-3).
A signed copy of Continuous Improvement Status Report (1201-4).
A signed copy of Internal Audit Checklist (1503-1).
Required documentation needed for Subscription to be sent to CliftonLarsonAllen, LLP:
Initial Pre-Evaluation Submission Requirements* to Achieve Subscription Level PPMS Status
*All documentation and information provided must cover the previous 3 months.
1. A copy of a certificate that an employee attended ACA’s PPMS™ training.
2. A signed copy of the client issues log. Client Issues Log (302-2)
3. A signed copy of one completed corrective action report from the last 3 months. Non-conformity & Corrective/Preventive
Action Report (1201-1)
4. A signed copy of the non-conformance log. Non-conformity & Corrective Action Log (1201-2)
Second Year Pre-Evaluation Submission Requirements to Maintain Subscription Level PPMS Status*
*All documentation and information provided must cover the previous 12 months unless otherwise noted.
1. All documentation that was submitted in year one.
2. A signed copy of a training course log covering at least the last 12 months (CF 1603-1).
3. A copy of a certificate or proof that at least one employee attended outside professional practices training over the last 12
months (i.e., training that supports the ACA PPMS™).
4. A signed copy of the non-conformance trends (i.e., by element of the ACA PPMS™) over the last 12 months. Trend
Analysis Form (Jan-June) (102-1) & Trend Analysis Form (July-Dec) (102-2)
Third Year Pre-Evaluation Submission Requirements to Maintain Subscription Level PPMS Status*
*All documentation and information provided must cover the previous 12 months unless otherwise noted.
©2016 ACA International
All Rights Reserved.
Page 383
1.
2.
3.
All documentation that was submitted in years one and two.
A signed copy of a list of the continuous improvement projects that were worked on over the last 12 months. Continuous
Improvement Log (1201-3)
A status report of one of the continuous improvement projects listed. Continuous Improvement Status Report (1201-4)
Fourth Year Pre-Evaluation Submission Requirements to Maintain Subscription Level PPMS Status*
*All documentation and information provided must cover the previous 12 months unless otherwise noted.
1. All documentation that was submitted in years one, two and three.
2. A signed copy of minutes from the Agency's Management's review of legal changes and developments over the past
year.
3. A signed copy of the latest Management Review Meeting. Management Review Checklist (101-1)
Pre-Evaluation Submission Requirements to Maintain Subscription Level PPMS Status for each consecutive year following the
fourth year of Subscription Level PPMS Status*
*All documentation and information provided must cover the previous 12 months.
1. All documentation that was submitted in years one, two, three and four.
2. A signed copy of the title page and table of contents from the Agency's Professional Practices Manual.
3. A signed copy of the minutes from at least one management review that has taken place over the last 12 months.
4. A signed statement that the Agency's Professional Practices Management System complies with the ACA PPMS™.
5. A signed copy of the Internal Audit Checklist (CF 1503-1), covering the last 12 months.
Recommendations to Consider when Submitting Documentation:




The Management Review Checklist (101-1) should be supported by minutes of the Management Review Meeting (i.e., minutes should
cover topics discussed in the meeting including any legal changes and developments).
The Continuous Improvement Log (1201-3) should support the continuous improvement program (i.e., projects should provide
evidence that an agency is working on problems to reduce Non-conformance Trends (102-1 & 102-2).
When the Internal Audit Checklist (1503-1) indicates that a category “Needs Improvement” or is “Unsatisfactory”, the issue should
show up on the appropriate logs (1201-2 & 1201-3). This provides evidence that the quality management system is working.
When a problem shows up on the Client Issues Log (302-2) or the Non-conformity & Corrective Action Log (1201-2), it would be
expected that the submitted Non-conformity & Corrective Action Report (1201-1) would be traceable back to one of these logs.
©2016 ACA International
All Rights Reserved.
Page 384
PPMS™ Application - Part 1
Company Information (Primary Location):
______________________________________________________________________________
(Agency’s Full Legal Name)
(ACA Membership #, if applicable)
______________________________________________________________________________
(Location Address)
______________________________________________________________________________
(City, State, Zip)
______________________________________________________________________________
(PPMS™ Contact)
______________________________________________________________________________
(Contact’s Title)
______________________________________________________________________________
(Telephone Number)
(Fax Number)
______________________________________________________________________________
(E-mail Address)
Please Select Level of PPMS™:
____ Subscription
____ Number of Sites
____ Certification
____ Number of Sites
If this application is for multi-sites, please provide the above company information for each additional site. (Label as “Attachment A”)
Acknowledgment:
We apply for certification/subscription (please circle) and for all rights and privileges associated with that designation.
We certify that we have read and agree to abide by ACA International’s Code of Ethics and other materials which are a part of the
application for Professional Practices Management System; and that the information we have submitted in this application is true and
accurate to the best of our knowledge, information and belief.
This voluntary activity is separate and distinct from membership in ACA. It carries with it the advantages and acceptance by credit
grantors and others in our industry.
Dated __________________________________________________
Signature _____________________________________________________________________________________________________
(Principal of Agency & Title)
Print Name and Title of Principal __________________________________________________________________________________
©2016 ACA International
All Rights Reserved.
Page 385
PPMS™ Certification Fees
Example of Certification Schedule: Initial or first year fees are required at the time the evaluation agreement is signed. If on
January 1, 2012 certification is achieved then surveillance fees are due on January 1, 2013; January 1, 2014 and January 1,
2015. Recertification would then occur on January 1, 2016. Following a recertification year, there will be three surveillance years
before recertification occurs again.
Initial Certification Fees (Year 1) (See Note 1)
Required Fees
Certification PPMS™ Fee
Required Training Registration Fee
Required Compliance Seminar Fee
Total Fees
ACA Member Rates Non Member Rates
$1,390
$2,780
$399
$624
$125
$218
$1,914*
$3,622*
Optional Fees
Corrective Action Evaluations for major Non-conformances
$200
(Optional See Note 2) (per evaluation)
Local Audit/CPA Fee (estimated) (See Note 3)
$300
Surveillance Fees (Year 2, 3 and 4)
Required Fees
Approximate Certification PPMS™ Fee (See Note 4)
$695*~
(~ This fee is required for each year of the three surveillance years.)
Optional Yearly Fees
Corrective Action Evaluations for major Non-conformances
(Optional See Note 2) (per evaluation)
Re-certification Fees (Year 5)
Required Fees
Approximate Re-certification PPMS™ Fee (See Note 4)
Optional Fees
Corrective Action Evaluations for major Non-conformances
(Optional See Note 2) (per evaluation)
Local Audit/CPA Fee (estimated)
(See Note 3)
$400
$300
$1390*~
$200
$400
$1390*
$2780*
$200
$400
$300
$300
(*These fees do not include internal costs incurred by the agency.)
Note 1: Contact ACA for multi-site fees.
Note 2: Additional fees for special evaluations (e.g., to verify corrective action or due to changes in the professional practices
management system, which the client has reported as having an effect on its subscription or certification, etc.) are not included
in the fee quoted above. Corrective Actions are only required when an agency receives a major non-conformance during an
evaluation review. See Section 1.7, Definition of Major Non-conformances. Major non-conformances need to be corrected in
90 days (i.e., therefore requiring more work to evaluate). If it is a minor non-conformance they have a year to submit evidence
of corrective action (this can be done with their annual submission).
Note 3: Submittals and evaluations will be conducted annually. A CPA is needed for certification and recertification only. The
fee to the CPA will be paid directly to the CPA by the agency. It’s estimated that a CPA will need about two hours to gather
this information.
Note 4: These fees are an approximation and are subject to change.
©2016 ACA International
All Rights Reserved.
Page 386
PPMS™ Subscription Fees
Example of Subscription Schedule: Initial or first year fees are required at the time the evaluation agreement is signed. If on
January 1, 2000 subscription is achieved then surveillance fees are due on January 1 of each subsequent year that you remain
in the program.
Initial Subscription Fees (See Note 1)
Required Fees
ACA Member Rates Non Member Rates
Subscription PPMS™ Fee
$695
$1,390
Required Training Registration Fee
$399
$624
Required Compliance Seminar Fee
$125
$218
Total Fees
$1,219*
$2,232*
Optional Fees
Corrective Action Evaluations for major Non-conformances (per evaluation)
(Optional See Note 2)
Yearly Surveillance Fees
Required Yearly Fees
Approximate Subscription PPMS™ Fee (See Note 3)
$200
ACA Member Rates
$545*
Optional Yearly Fees
Corrective Action Evaluations for major Non-conformances (per evaluation)
(Optional See Note 2)
$400
Non Member Rates
$1,090*
$200
$400
(*These fees do not include internal costs incurred by the agency.)
Note 1: There is no multi-site discount in the subscription level.
Note 2: Additional fees for special evaluations (e.g., to verify corrective action or due to changes in the professional practices
management system, which the client has reported as having an effect on its subscription or certification, etc.) are not included
in the fee quoted above. Corrective Actions are only required when an agency receives a major non-conformance during an
evaluation review. See Section 1.7, Definition of Major Non-conformances. Major non-conformances need to be corrected in
90 days (i.e., therefore requiring more work to evaluate). If it is a minor non-conformance they have a year to submit evidence
of corrective action (this can be done with their annual submission).
Note 3: These fees are an approximation and are subject to change
©2016 ACA International
All Rights Reserved.
Page 387
PPMS™ Process Flowchart
Start Process
Complete Application
Process
(See Note 1)
Gather Information: ACA
FastFax or on
ACA On-Line
Interested in
Achieving PPMS
Attend 1-Day face-to-face or
3-day online PPMS Training
Seminar and Compliance
Teleseminar
(Additional Fee Required)
Implement PPMS
Satisfy Pre-Evaluation
Submission
Requirements
(See Note 2)
CliftonLarsonAllen will
follow-up with Applicant
and take Corrective
Action
No
Approved by
CliftonLarsonAllen
Yes
ACA will grant
certification/subscription
and send certificate
Note 1 - Application Process
Request application from
ACA. Complete and return
the application to ACA. ACA
will then send you a copy of
the evaluation agreement.
Sign and return this
agreement with the
appropriate fees.
Note 2 - CPA
If an agency chooses the
certification level, the agency
will need to hire a CPA to
attest to documentation sent
to CliftonLarsonAllen, LLP.
Agency may begin to use PPMS
status designation
(certification/subscription)
©2016 ACA International
All Rights Reserved.
Page 388
Attesting Report
Independent CPA Report on Applying Agreed upon Procedures to Non-financial Information
TO:
ACA Professional Practices Management System Committee and Evaluation Authority
RE:
Engagement for «Company»
I/We have performed the procedures enumerated below, which were prescribed by the ACA Professional Practices
Management System Committee and agreed to by «Company». The purpose of this engagement is to attest that records,
minutes or procedures were available at «Company» as prescribed in the below procedures as of ___________________
(Insert Date).
This agreed-upon procedures engagement was performed in accordance with standards established by the
American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the
specified users of the report. Consequently, I/we make no representation regarding the sufficiency of the procedures described
below either for the purpose for which this report has been requested or for any other purpose.
The procedures followed were: (1) The independent third party assembled the required certification logs and records that
need to be submitted to the evaluation organization. (2) The following attestation was performed by the independent third party:
That there are Professional Practice Management Procedures to support all 18 elements in the ACA PPMS™. That there are
reports, minutes or records supporting the Management Review Checklist. That there are reports, minutes or records supporting
the continuous improvement program(s) listed in the Continuous Improvement Project Log. A minimum of 1 sample document
required. That there are reports, minutes, or records supporting that the Agency’s Management reviewed legal changes and
developments over the past year. That there is at least one completed Non-conformity & Corrective/Preventive Action Report
supporting the Non-conformance Log. That there is a Training Course Log showing training that has taken place over the past
three months including training on ACA’s Code of Ethics. That there is proof that at least one employee has attended outside
professional training other than ACA’s Foundational Training on PPMS™, over the last 12 months. That an Element 18 checklist
has been completed and a network diagram exists.
My/Our findings are as follows:
Description Of Item Attested To
Yes Or
No
Sample
Size Taken
# Of Sample
That
Support
Finding
That there are Professional Practice Management Procedures to support all 18 elements in the
ACA PPMS™.
That there are reports, minutes or records supporting the Management Review Checklist.
That there are reports, minutes or records supporting the continuous improvement program(s)
listed in the Continuous Improvement Project Log. A minimum of 1 sample document required.
That there are reports, minutes, or records supporting that the Agency’s Management reviewed
legal changes and developments over the past year.
That there is at least one completed Non-conformity & Corrective/Preventive Action Report
supporting the Non-conformance Log.
That there are records supporting the Training Course Log showing training that has taken place
over the past three months, including but not limited to, a Training Sign-In Sheet initialed by each
employee who has attended the ACA International’s Code of Ethics training.
That there is proof that at least one employee has attended outside professional training other
than ACA’s Foundational Training on PPMS™, over the last 12 months.
If a multi-site agency, did all sites use the same Professional Practices Manual?
If a multi-site agency, did you review logs for all sites?
Comments (if any):
I/We was/were not engaged to, and did not, perform an examination, the objective of which would be the expression of an
opinion on the above findings. Accordingly, I/we do not express such an opinion. Had I/we performed additional procedures,
other matters might have come to my/our attention that would have been reported to you.
©2016 ACA International
All Rights Reserved.
Page 389
This report is intended solely for the use of the ACA Professional Practices Management System Committee and Evaluation
Authority and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of
the procedures for their purposes.
Representative of CPA Firm
©2016 ACA International
All Rights Reserved.
Date
Page 390