John C. Todd II, P.C.
Certified Public Accountants
 
21630 North 19th Avenue, Suite B-5, Phoenix, AZ 85027  |  (623) 581-8117  |  cpas@jctodd2cpa.com
The Audit Trail - Preparing our clients for the curves ahead
 
Issue 8 - May 13, 2010
In this issue:
 
  • Charter School Payments Reminder!
  • Time and Effort Logs - Are They ALWAYS Required?
  • Newest Addition to John C. Todd II, P.C.
 
Greetings!
 
We are the industry leader in the field of Arizona Charter School Audits, and as part of our continuing commitment to you, our goal is to keep you well informed, out of trouble, and ahead of the curve. 
 
For more information, please visit our website at: www.jctodd2cpa.com.

Charter School Payments Reminder!
 
Are You Prepared for the Change?
 

Charter Payment ReminderLast October we reminded you in The Audit Trail of Arizona Department of Education's revised charter payment schedule.  The 12th and last payment for FY2010 is June 1, 2010 and will be comprised of additional ARRA Stabilization monies for non-profit charter schools.  The first payment for FY 2011 is August 1, 2010. 

 

DON'T FORGET, there will be NO payments in July!

 
Time and Effort Logs
 
Are They ALWAYS Required?
 

Time and Effort Logs - Are They ALWAYS Required?John Todd presented a course for the Arizona Charter School Association's Business Conference Friday, April 30, 2010 at the Wigwam Resort in Litchfield Park entitled "Everything You Never Wanted to Know, But Should Know, About Single Audits".

 

As advertised in the conference brochure cash was paid to the participants - $1 for each question, $5 if John couldn't answer the question, and $100 for the best question.  The winning question was:

 

"If ARRA Stabilization monies received by an AZ school effectively temporarily replace the state monies due to the school and the ARRA Stabilization monies received are used solely for salaries and benefits, would activity logs be required to support employees' salaries split only between state monies and ARRA Stabilization monies?"

 

For that question alone, Ryan Hackmann from Carpe Diem Collegiate High School in Yuma received $106 because the answer was unknown!  No, he will not receive a 1099, because the amount is below the minimum amount for reporting.

 

Rich Rasa from the USDOE Office of Inspector General referred us to Auditor-Guidance issued by USDOE December 24, 2009.  On page 9 it states:

 

"Because the SFSF program does not support specific cost objectives or activities, an individual whose salary is paid in whole or part with SFSF funds is not required to maintain separate time distribution records. An individual whose salary is supported with both SFSF funds and State funds is not required to maintain records documenting the amount of time spent on SFSF activities because there are no specific "SFSF activities."

 

THEREFORE, TIME AND EFFORT LOGS ARE NOT NECESSARY FOR ARRA STABILIZATION MONIES.  HOWEVER, WE BELIEVE TIME AND EFFORT LOGS WOULD STILL BE REQUIRED FOR ARRA TITLE I AND ARRA IDEA MONIES.

 

If John C. Todd II, P.C. is not your auditor, have this information available for your auditors if you are subject to a single audit this year.  Once again, we have you ahead of the curve!

 

Addition to John C. Todd II, P.C.
 
We Welcome Our Newest Team Member!
  

Addition to John C. Todd II, P.C.John C. Todd II, P.C. would like to introduce Melanie Matthews, CA (Canadian Chartered Accountant) as the newest member of our audit team.  Melanie graduated from Saunder School of Business with a degree in accounting in 2004 and has 5 years of audit experience with a large firm in Vancouver, British Columbia, Canada.  Welcome Melanie!!!

 
 
 
 
To view past issues of The Audit Trail visit our Newsletter Archive!
 
If you have questions regarding these topics or any others, please contact our office via e-mail at cpas@jctodd2cpa.com or by phone at 623-581-8117.
 
Sincerely,
 
JOHN C. TODD II, P.C.
 
GAQC Member