Accessing older Attorney General Opinions:
Q: How can I obtain Attorney General’s Opinions that are older than the ones listed on the Attorney General’s web site?
A: All Attorney General’s Opinions are maintained by the Solicitor General’s Office of the Attorney General’s Office. The old Opinions not listed on the web site will be emailed to you upon request. Simply call (602) 542-3333.
Using District Monies for Student Awards:
Q: Is there official guidance available regarding districts giving awards to individual students for meeting certain goals?
A: Districts should refer to Arizona Attorney General Opinion No. I87-123 which addresses this issue. The conclusion of this opinion is that the use of M&O funds or auxiliary operations funds to students who achieve perfect attendance or achieve honor roll status is not permissible. However use of student activity funds for this purpose is permissible if the awards can be demonstrated to further an educational objective. The full opinion can be downloaded at: faq document - ag opinion 87-123.pdf
Paying Coaches from Instruction Code
Q: Is it acceptable to pay coaches from the instruction code?
A: Yes, as they are 'instructing' the students on athletics, including after-school programs. However, the District should be aware of issues that may arise with paying an athletic director or other similar position from the instruction code, as those positions may be performing administrative duties.
1099's:
Q: Who should receive a 1099? What payments should be reported in a 1099?
A: Non-employees and unincorporated businesses providing $600 or more in calendar year services to a government should receive Form 1099-MISC. In general, only payments for services should be reported on a 1099. Remember to issue vendors Copy B of form 1099 by January 31. Also, for paper filing, issue Copy A, along with transmittal Form 1096 to the IRS by Feb. 28.
Interest Income:
Q: Must the $100 of interest income earned by federal grant funds be retained in the grant fund where it was earned?
A: No. According to EDGAR 80.21(i), the $100 of interest may be expended for administrative expenses.
Audit Service Charges for Annual Financial Report (AFR):
Q: For our AFR, what portion of our audit fees should be charged to audit services associated with financial & compliance audits (account code 6350) and what portion should be charged to audits related to Federal programs (account cost 6330)?
A: The District will have to estimate the percentage to charge to the Federal programs for audit services. There are a couple methods for making this estimation. One way is to determine the percentage of federal expenditures to total expenditures and allocating that percentage of the audit to the federal grants.
To determine which federal grants were audited in the year, you can look at the Single Audit Reporting Package, Summary of Auditors' Results.
Alternatively, you can look at the expenditures of just those programs to the total funds expended by the District and allocate the percentage of that calculation to the audit fees.
Intergovernmental Agreements (IGA's):
Q: The USFR Chart of Accounts lists fund 955 as the fund that accounts for revenues and expenditures associated with an Intergovernmental Agreement (IGA) when a district is the fiscal agent. Where should revenues and expenditures associated with an Intergovernmental Agreements (IGA) be recorded when a district is NOT the fiscal agent?
A: Revenues and expenditures associated with an IGA when a district is not the fiscal agent should be recorded in a Special Projects Fund, depending on the funding source. The following funds should be used:
050 - accounts for city, town or county-funded projects
300-399 - accounts for other federally funded projects
465-400 - accounts for other state-funded projects
The recording of these funds becomes particularly important since the Auditor General’s calculation of ‘dollars in the classroom’ does not include the 955 IGA Fund.
Instructional Improvement Programs:
Q: ARS 15-979 E 2 says Instructional Improvement Funds may be used for "instructional improvement programs including programs to develop minimum reading skills for students by the end of third grade". Does this limit instructional programs to just reading programs?
A: No. According to Chuck Essigs, the reading program reference in the statute is only given as an example.
Bank Accounts:
Q: Is collateral required for school districts' deposits in bank accounts? (i.e. deposits not with the County Treasurer)
A: Although no specific ARS exists, we suggest the district adhere to ARS Section 35-323, to collateralize deposits in excess of $100,000.
Student Awards:
Q: Can a district make awards to students who achieve perfect attendance?
A: No. According to Attorney General's opinion I90-072, a school district governing board lacks the authority to make awards to individual students achieving perfect attendance because the laws do not authorize awards for compliance with mandatory school attendance laws. However, the AG's opinion goes on to say that a governing board is not so limited in promoting academic achievement. Governing boards may make nominal awards as a special recognition of academic achievement, provided the amount is limited to its value as a token acknowledgement of the pupil's accomplishment.
Migrant Education:
Q: If a school district receives Migrant Education funding, must the district offer participation to the private schools within the district's boundaries?
A: The Arizona Department of Education (ADE) may have indicated to some districts that since ADE allows private schools to apply directly for Migrant funding, this provision would replace the districts' requirement to contact private schools and offer the opportunity to participate. However, according to the U.S. Office of Migrant Education, districts receiving Migrant funding are required to offer private schools the opportunity to participate, regardless of the direct funding possibility.
Educational Foundation:
Q: Can a district provide bookkeeping services for a district's educational foundation?
A: A district cannot provide services to outside organizations free of charge, without violation of the Arizona gift of public monies clause.
Supplanting:
Q: A district wants to charge OT/PT and Speech Therapists' salaries to the M&O Special Ed Program, instead of the IDEA grant, and teachers' salaries to the IDEA grant instead of Special Ed., where they were charged the previous year. Is this supplanting?
A: The rules on supplanting for the IDEA grant do not require a position by position review. As long as the district expends more in the current year on special education from local sources than in the previous year, the supplanting test has been met.
Allowable Transfers:
The indirect cost transfer from the Food Service Fund to the Indirect Cost Fund is not listed in the allowable transfers section of the USFR chart of accounts. Does this mean this type of transfer is not allowable?
This type of transfer is definitely allowable, and is not listed in the USFR Chart of Accounts (Section III-F)due to an oversight. However, according to the Office of the Auditor General, this transfer will be added to the list in the next revision to the chart of accounts.
Depreciation:
Q: When developing depreciation policies for a new reporting model (GASB Statement No. 34) can a government have different useful lives for its buildings?
A: Yes. One should use all available historical information to develop its useful life policies to provide for more accurate financial information. An example would be different useful lives for brick and mortar buildings as opposed to wood frame construction.
Excess Monies in the Unemployment Insurance Fund:
Q: What can be done if a school district has accumulated excess monies in the unemployment insurance fund over the past several years, to the point where some of the money in the fund will never be needed to pay annual claims?
A: According to the ARS 15-1104 and USFR III-F-3, when the Governing Board determines that monies accumulated are in excess of insurance needs, the excess can be transferred to M&O or Unrestricted Capital Outlay to reduce taxes.
Surplus Property:
Q: Can a school district donate all surplus property to a nonprofit organization?
A: No. A.R.S.15-342(18) only allows for the donation of surplus or outdated learning materials to nonprofit community organizations, where the governing board determines that the anticipated cost of selling the learning materials equals or exceeds the estimated market value of the materials.
Documentation for Employees in a Title I Schoolwide Program School:
Q: What documentation is needed for employees working in a Title I schoolwide program school?
A: Background: Under OMB Circular A-87, charges for wages and salaries of employees who work solely for one Federal grant must be supported by semi-annual certifications that the employees worked solely on that program. If employees work in multiple Federal programs or work in a Federal program and state funded programs, a distribution of their salaries or wages must be supported by monthly personnel activity reports or equivalent documentation. Answer: Federal education funds that are combined in a schoolwide program school lose their identity as specific program funds. Therefore, neither personnel activity reports for time distribution nor periodic certifications are required. A district must still keep in mind the standards for general payroll documentation described in Circular OMB A-87, Attachment B..11.a, b and c. However, records described in OMB Circular A-87, Attachment B.11.h.(3) or (4), (5), & (6), respectively, would be necessary if there are employees in the schoolwide program who are paid, in whole or in part, by Federal programs that have NOT been combined in the schoolwide program.
