Have you lost track of your extra-curricular tax credit and auxiliary
operations dollars?
Prepared by: Annette Moreno, Pendergast Elementary School DistrictTracy 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)
• 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)
Legislative Changes to ECTC
Just a side note…
• Unspent, undesignated contributions– Site council of each individual school shall
determine
Arizona Department of RevenueGuidelines For The Public School Extracurricular Activity (ECA) Tax Credit – www.azdor.gov
State of Arizona Office of the Auditor GeneralFAQs, newsletters, USFR Memos – www.auditorgen.state.az.us
Being informed
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 Revenuewww.azdor.gov
Thank you for your attendance!
Annette Moreno Tracy McLaughlinPendergast Elementary School District Heinfeld, Meech & Co., [email protected]@heinfeldmeech.com