Yes, this is true.
If you have education expenses and room and board for your daughter in an amount which is greater or equal to the distribution reported on form 1099-Q, then you don't need to report that form 1099-Q on your tax return. You have to do the calculation yourself and keep that calculation, and the form 1099-Q in your tax records.
On form 1099-Q, instructions to the recipient read: "Nontaxable distributions from CESAs and QTPs are not required to be reported on your income tax return. You must determine the taxability of any distribution."