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!