School Tuition Organizations (STOs)

As you may know, the annual reporting requirements for School Tuition Organizations (STOs) have significantly changed. All STOs that receive donations from individuals or corporations where an income tax credit is taken are now required to engage a Certified Public Accountant (CPA) to perform an annual audit or a review of their financial statements, depending on the total amount of donations received in the previous fiscal year, and an evaluation of compliance over certain fiscal requirements.

Listed below are some key highlights of the new regulations:

Any STO that wishes to receive donations from individuals or corporations for the purpose of taking an income tax credit must be certified by the Arizona Department of Revenue (ADOR). No donations can be accepted until the STO appears on the appropriate list as a certified STO.
STOs receiving $1,000,000 or more in total donations in the previous fiscal year must provide for a financial audit of the organization by September 30 of each year. The audit must be conducted according to generally accepted auditing standards, and must be performed by an independent CPA.
STOs receiving less than $1,000,000 in total donations in the previous fiscal year must provide for a financial review of the organization by September 30 of each year. The review must be conducted in accordance with the standards for accounting and review services, and must be performed by an independent CPA.

Our professionals are up-to-date on this new legislation, and have received extensive training concerning the issues and requirements mandatory to keep STOs in compliance with the Arizona Department of Revenue. We have worked with many organizations all across Southern Arizona – helping them comply with their financial reporting requirements, and achieve their financial objectives.

Please feel free to give us a call or submit a question below if we can be of any assistance in your upcoming audit/review, or if you need further explanation with regard to your new annual reporting requirements.

For more information, you can also visit the Arizona Department of Revenue website at:

http://www.azdor.gov/taxcredits/schooltaxcreditsforindividuals.aspx

http://www.azdor.gov/TaxCredits/CorporateTuitionTaxCredits.aspx

How can we serve you today?

Fill in the form and we'll contact you shortly. Items marked by an asterisk (*) are required.