1. (a) An annual financial report required under AS 44.33.065(e) for obtaining state financial assistance must be compiled by an independent certified public accountant and must be prepared in accordance with generally accepted accounting principles. The report must include

   1. (1) a consolidated statement of financial position, a statement of activities, and a cash flow statement; those items must include notes to the financial statements;
   2. (2) a report on the extent to which the qualified regional seafood development association achieved the economic development goals proposed under 3 AAC 149.010(b)(3); and
   3. (3) each letter, if any, from the independent certified public accountant to management or the board of directors recommending improvements to the regional seafood development association's accounting or financial practices.
2. (b) If a qualified regional seafood development association has applied for, but has not yet received, a determination by the United States Internal Revenue Service that the association is exempt under 26 U.S.C. 501(c) from paying federal income tax, the department will withhold from any state financial assistance provided under AS 44.33.065(d) an amount equal to 40 percent of the total seafood development taxes collected under AS 43.76.350 - 43.76.399 within the seafood development regions represented by the association. The department will continue withholding under this subsection until the department receives a copy of the determination by the United States Internal Revenue Service that the association is exempt under 26 U.S.C. 501(c) from paying federal income tax.

(Eff. 2/24/2005, Register 173)

Authority: AS 44.33.065