Cheryl Moore, C.E.O.cmoore@incentivecomplianceservice

s.com

Bringing Incentives to the Bottom Line

Incentive Compliance Services

Insure our clients realize the benefits of their negotiated incentives through proven service solutions. Advance growth, employment and development of businesses and communities.

OUR COMMITMENT

• Companies today often run lean and resources are limited.

Incentive grants are not communicated to staff so they can follow through.

Internal assignment of incentive contracts is not considered – who is responsible?

There is not usually the expertise on staff to coordinate all the elements of compliance.

Deadlines are missed or reports are not filed.

• Failure to meet performance commitments, i.e., capital investment and hiring requirements.

• Attrition/Change in Staff (hand-off is fumbled).

IMPORTANCE OF COMPLIANCE

Why Incentive Benefits Are Often Not Realized

Next Steps After Incentive Agreement Has Been Executed

• List all requirements under the Agreement(s).

• Create t imeline of tasks, due dates, and responsible party.

• Identify/notify internal compliance team.

• Assign tasks and set milestones.

• Establish base date for baseline calculat ions

• Collect documentation.

• Calculate the eligible incentive amounts.

• File compliance reports with state and local jurisdictions, then follow up.

REALIZATION OF INCENTIVE BENEFITS

INTERNAL RESOURCES FOR COMPLIANCE

Data Sources and Compliance Burdencan fall into these Departments:

• Accounting/Treasury

• Human Resource

• Payroll

• Real Estate

• Operations

• Tax

• Legal

Step 1: Assign a Point of Contact

Step 2: Establish a Project Leader who will communicate up the chain

We work with your staff to obtain whatever information is necessary

Most Common Incentive Compliance Reports

• Cumulative capital expenditure tracking.

• Maintenance of baseline jobs.

• Net new jobs and/or retained jobs.

• Average wages for net new and/or retained.

• Qualif ied wages for net new and/or retained.

• Calculation of wage-based benefit.

• Qualif ied training expense.

COMPLIANCE REPORTS

Review all incentive agreements to:

• Determine commitment deadlines.

• Determine compliance due dates.

• Confirm legal entity.

• Quantify/evaluate discrepancies.

• Alert all stakeholders (internally first).

COMPLIANCE REPORTING – INITIAL YEAR

• Review prior year compliance computations and reports.

• Collect current period raw data for reporting.

• Uti l ize a compliance model to capture raw data.

• Review information request responses for completeness or fol low-up.

• Document any changes in methodology from previously-f i led compliance reports.

• Confirm cumulative benefits realized – follow up if necessary (confirm cash received or proof of credits issued).

• Compute the maximum benefit al lowable.

• Provide updated information for tax return & financial statement report ing.

• Manage credit and incentive audits.

• Review prior audit results for impact to current calculations.

• Be aware of credit period extensions.

COMPLIANCE REPORTING – YEARS 2+

Consider Corporate Restructuring Impacts on:

• Existing incentive agreements

• Agreements and/or tax returns that may need to be amended or bifurcated (can impact all states)

• Portability of incentive benefits

• Possible breach of original incentive agreement

COMPLIANCE REPORTING

HOW WE CAN HELP ANY SELECTION OR COMBINATION OF THE

FOLLOWING:

Turnkey Solution –

Full Incentive

Compliance Service

Set up Compliance Process and Hand off to Your

Staff

Customized Closing

Book

In addition to setting up your processes, we will mentor your staff. We will prepare initial year filings for each new project and transition work-papers and processes to your staff for use in preparing subsequent year compliance reports.

We will develop a custom Closing Book for the incentives secured. The Closing Book details the steps necessary to compile data, maintain, report and submit all requirements to the government entity that granted the incentive. This book also contains a comprehensive timeline, which details when and to whom reports are due, through the last day of the negotiated contract.

Working with your staff, following an approved statement of work, we will prepare information requests, collect information, manage data into reporting formats and review final drafts of the required filings for your review. We will provide filing instructions or will submit approved and executed documents to the appropriate jurisdictions on the your behalf.

Our team is proficient in compliance in several states, including, but not l imited to:

Kentucky Florida

Missouri Texas

South Carolina Louisiana

Let our team use its’ experience and expert ise to help you collect the incentives you deserve.

We look forward to working with you and your staff and growing your bottom line.

THANK YOU

Cheryl Moore, C.E.O.859-905-0620cmoore@incentivecomplianceservices.comwww.incentivecomplianceservices.com

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