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Have you lost track of your extra-curricular tax credit and auxiliary operations dollars?. Prepared by: Annette Moreno, Pendergast Elementary School District Tracy McLaughlin, Heinfeld, Meech & Co., P.C. Extra-curricular Tax Credit.
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Have you lost track of your extra-curricular tax credit and auxiliary operations dollars? Prepared by: Annette Moreno, Pendergast Elementary School District Tracy McLaughlin, Heinfeld, Meech & Co., P.C.
Extra-curricular Tax Credit • In accordance with A.R.S. § 15-342(24) and § 43-1089.01(G)(2): • 1. Is the activity sponsored by the district/school? • 2. Is the activity for enrolled students? • 3. Is the activity optional? • 4. Is the activity non-credit? • 5. Does the activity supplement the district/school’s educational program? • 6. Does the district/school charge a fee for participation in the activity? • 7. Is the activity fee paid directly to the district/school? • 8. Was the fee for this activity adopted by the Governing Board at a public meeting after notice to all parents of enrolled students? • 9. Has the Governing Board authorized the principal to waive all or part of the activity fee if it creates an economic hardship for a student?
Are you prepared? • USFR Chart of Accounts • Fund 525 or 526 • General ledger or not? • Excel spreadsheet • Project or course codes?
Legislative Changes to ECTC • First Regular Session 2011 • HB 2031 • 50% unencumbered contributions prior to December 31, 2010 • Short-term capital items • Only for SY 2012 and 2013 ARS §43-1089.01(F)
Legislative Changes to ECTC • 50% unencumbered contributions • Identify • Calculate • Reduce • Document, document, document
Legislative Changes to ECTC • Unspent designated contributions • Reclassified • Following year, • Specific purpose or program discontinued, OR • Specific purpose or program defunct for two (2) consecutive fiscal years ARS §43-1089.01(E)
Just a side note… • Unspent, undesignated contributions • Site council of each individual school shall determine
Being informed Arizona Department of Revenue • Guidelines For The Public School Extracurricular Activity (ECA) Tax Credit – www.azdor.gov State of Arizona Office of the Auditor General • FAQs, newsletters, USFR Memos – www.auditorgen.state.az.us
Annual Financial Report • FY 2010 • Fund 525 and 526 - Page 9 Section H added • Function/Object detail required • FY 2011 and thereafter • Transaction activity detail by fund, program, function, object and unit required • Record in Accounting Records • Directly or by • Summary Journal Entries • Detail included in Audit File
Summary Journal Entries • Revenue • Credit Object 1790, Debit Cash Object 0102 • Expenditure • Debit proper Fund, program, function, object, unit • Credit Cash Object 0102 • Art Club supplies at Pendergast School: • Debit: 526.100.1000.6611.112.802.0000 • Credit: 526.000.0000.0102.000.000.0000 • Course code 802 is a specific activity - Art
When In Doubt • Refer back to your resource • State of Arizona Office of the Auditor General www.auditorgen.state.az.us • Arizona Department of Revenue www.azdor.gov
Thank you for your attendance! Annette Moreno Tracy McLaughlin Pendergast Elementary School District Heinfeld, Meech & Co., P.C. amoreno@pesd92.orgtracym@heinfeldmeech.com