1. 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.

2. 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?

4. Are you prepared? USFR Chart of Accounts – Fund 525 or 526 General ledger or not? ‒Excel spreadsheet ‒Project or course codes?

5. 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)

6. 50% unencumbered contributions – Identify – Calculate – Reduce – Document, document, document Legislative Changes to ECTC

7. 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

8. Just a side note… Unspent, undesignated contributions – Site council of each individual school shall determine

9. 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 Being informed

10. 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

11. 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

12. 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

13. Thank you for your attendance! Annette MorenoTracy McLaughlin Pendergast Elementary School DistrictHeinfeld, Meech & Co., P.C. amoreno@pesd92.org tracym@heinfeldmeech.com