Required Compliance is accomplished in three phases:
Utilizing Tax Credit financing requires that Clients keep careful records of all project costs and activities, and prepare and submit regular reports to CDE’s and Investors during the compliance period. Plymouth Soundings can:
- Provide oversight and guidance on accounting process and internal controls necessary for future operations;
- Provide guidance in segregating operations costs and assigning costs to proper entities during the compliance period;
- Provide guidance in establishing and segregating separate budgets for the multiple entities created in the Tax Credit financing process including the unique cost items related to the Tax Credit financing that must be considered;
- Assist in establishing schedules of required ongoing payments, standard cash flow protocols for moving cash through entities to fund operations, reports to be created and submitted, and periodic entries that must be made at the various entities during the compliance period, and;
- Provide assistance during first year of operations including preparation for first year audit under new entity structure.
Post Completion Operations Period
- Periodic review of operations reports, compliance reports, and terms of any subsequent anticipated changes in financings, operations scope, or related ownerships for compliance with Tax Credit requirements;
- Acting as a resource for onsite accountants providing guidance on the accounting and/or tax treatment of various transactions;
- Provide information for transaction structure, entity relationship, roles, and document requirements for audits and tax returns, including deadlines for same to the Certified Independent Accountants performing these services;
- Review notes in the draft financial statements that discuss the financing;
- Continue acting as liaison for the Client with investors and CDE’s.
Compliance Period Wind Down
- Define with related team members and Client possible wind down strategies, related organization changes and accounting implications;
- Coordination of the process with the team members;
- Working with Client accountant and tax advisors on related issues;
- Oversee final compliance reports, related audits and tax filings.
You bring an entirely comprehensive knowledge of the accounting entries and transactions necessary to maintain the integrity of the non-profit and all of the other corporate entities.