141.510 Certification and renewal of certification of an account-granting
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/ky/141-510A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
organization -- Application -- Required information -- Department
certification. (See LRC Note below)
(1)An organization that seeks to become an AGO shall apply for initial certification or
renewal of certification from the department.
(2)An application for initial certification as an AGO shall include:
(a)A copy of the AGO’s incorporation documents;
(b)A copy of the AGO’s Internal Revenue Service determination letter as a
Section 501(c)(3) not-for-profit organization;
(c)A description of the methodology the AGO will use to evaluate whether a
student is eligible to establish an EOA;
(d)A description of the application process the AGO will use for parents and
eligible students;
(e)A description of the methodology the AGO will use to establish, fund, and
manage EOAs;
(f)A description of the process the AGO will use to approve education service
providers;
(g)A description of how the AGO will inform parents of approved education
service providers; and
(h)A description of the AGO’s procedures for crediting refunds from an
education service provider back to a student’s EOA.
(3)An application for renewal of certification as an AGO shall include:
(a)The AGO’s completed Internal Revenue Service Form 990, submitted no later
than November 30 of the year before the academic year that the AGO intends
to fund EOAs;
(b)A copy of any audit that may be required by the department; and
(c)1. An annual report that includes:
a. The number of applications the AGO received during the previous
academic year, by county and by grade level;
b. The name and address of all students that received EOA funds
from the AGO during the previous academic year;
c. When the AGO is an intermediary organization, the name and
address of all AGOs that received funds from the intermediary
organization during the last fiscal year;
d. The total number of EOAs the AGO maintains;
e. The amount of funds the AGO:
i.. Received to fund EOAs during the last fiscal year;
ii. Distributed into EOAs during the last fiscal year;
iii. Has remaining after the distribution into EOAs and any
obligations to fund EOAs in the future;
iv. Spent on administrative expenses and an accounting thereof
during the last fiscal year; and
v. Spent on fees to private financial management firms or other
organizations to maintain records and process transactions of
the EOAs;
f. When the AGO is an intermediary organization, the amount of
funds the intermediary organization:
i. Received to distribute to AGOs during the last fiscal year;
ii. Distributed to each AGO during the last fiscal year;
iii. Has remaining after the distribution into AGOs and any
obligations to distribute to AGOs in the future;
iv. Spent on administrative expenses and an accounting thereof
during the last fiscal year; and
v. Spent on fees to private financial management firms or other
organizations to maintain records and process transactions;
g. A list of the AGO’s approved education service providers; and
h. A description of how the AGO has complied with the operational
requirements and responsibilities of KRS 141.500 to 141.528.
2. The annual report shall also:
a. Comply with uniform financial accounting standards;
b. Be attested to by an independent certified public accountant in
accordance with procedures promulgated by the department; and
c. Be free of material misstatements or exceptions.
(4)The department shall only certify an AGO or renew an AGO’s certification if the
organization meets the requirements established by KRS 141.500 to 141.528. The
department shall issue initial certifications within sixty
(60)days of receiving the
application and renew certifications within thirty
(30)days of receiving the
application.
(5)Upon application for renewal, an AGO shall demonstrate that:
(a)It is an intermediary organization that collects contributions exclusively for
the use by AGOs; or
(b)It includes two
(2)or more education service providers in its EOA program
and has awarded at least fifty
(50)EOAs aggregating a minimum of two
hundred thousand dollars ($200,000) in the previous year and is expected to
award at least fifty
(50)EOAs aggregating a minimum of two hundred
thousand dollars ($200,000) in the succeeding year.