Film & TV Tax Credit Program 2.0
Tax Credit Program 2.0
Audit Procedures – Agreed Upon Procedures
An Agreed Upon Procedures Report (AUP) must be performed by a Certified Public Accountant (CPA) who meets specific qualifications. Only CPAs who have attended a CPA Orientation Seminar 2.0 are able to conduct AUPs. Applicants are unable to engage the same CPA/Accountant who performed any production accounting and/or post-production accounting for the approved project.
- An Agreed Upon Procedures Report (AUP) must be performed by a Certified Public Accountant (CPA) who meets specific legal qualifications and has attended the CFC’s orientation seminar for Program 2.0.
- There is no competitive process with respect to CPAs who may perform Agreed Upon Procedures for CFC tax credit program companies.
- Applicants are advised to discuss with prospective CPAs the firm’s experience and volume of audits performed in the past for the California Film and Television Tax Credit Program.
- Approved Applicants may not engage the same accounting firm and/or CPA who performed any production accounting and/or post-production accounting for the approved project.
- The CFC does not endorse nor recommend any of the companies listed and makes no claims as to the type or quality of service these companies provide; the listing below is provided as a courtesy to our applicants.
- Approved Applicants shall select from the CFC list a CPA who has met the legal qualifications and attended a CPA Orientation Seminar 2.0.
- Applicants shall email the Tax Credit Program at CFC Incentive Program and inform the CFC to change the project’s online portal status to Phase 4 once the CPA initiates the audit process.
- AUPs and all final documentation must be submitted in the format specified on the Final Documentation Checklist. Paper copies must be submitted in a soft cover press binder with labeled tabs.
Certified Public Accountants
- Certified Public Accountants must meet the following requirements to perform Agreed Upon Procedures for Program 2.0: Active California license to perform attest services or proof of valid out of state accounting firm registration for the firm practicing attest services; current peer review of “pass”; attendance at a Program 2.0 CPA Orientation Meeting. CPAs who meet these requirements may request Agreed Upon Procedures documents, exhibits and appendices by emailing the CFC Incentive Program.
- When requesting AUP materials, please specify the fiscal year of the Credit Allocation Letter issuance, as there are different sets of AUPs and attachments for projects with Credit Allocation Letters prior to July 1, 2016 and on or after July 1, 2016. The AUP for F/Y 2016/17, which begins July 1, 2016, is currently under review and will not be available until April 2016.
- AUPs and all final documentation must be submitted in the format specified on the Final Documentation Checklist. CPAs must utilize the AUP format and include findings immediately after the stated procedure. Paper copies must be submitted in a soft cover press binder with labeled tabs. Do not submit AUPs until all final documentation requirements are complete.
CPAs engaged to perform an AUP will need to access all program documents on the applicant’s portal. The CPA must first set up an account at the Online Application Portal, after which the CPA should inform the client to add the CPA as a user to the their portal account. Once added as a user, the CPA can access the application, and all uploaded files, including the Exhibit B – Jobs Ratio Calculator.
- The CFC conducted a CPA Orientation Meeting for Program 2.0 in February of 2016 and will not be holding another CPA Orientation Meeting for Program 2.0 until further notice.
- Tax Credit Certificates will not be issued until July 1, 2016.