PRINTER'S NO. 705
No. 632 Session of 2005
INTRODUCED BY HERSHEY, SCHRODER, HENNESSEY, ARMSTRONG, BAKER,
BALDWIN, BARRAR, BASTIAN, BELARDI, BROWNE, CAPPELLI,
CREIGHTON, DALEY, DENLINGER, FORCIER, GEIST, GEORGE,
GINGRICH, HARHART, HARPER, HERMAN, HUTCHINSON, M. KELLER,
LEACH, LEH, MAJOR, McGILL, McILHATTAN, R. MILLER, S. MILLER,
PALLONE, PHILLIPS, PICKETT, READSHAW, ROHRER, SATHER,
SCAVELLO, SEMMEL, SOLOBAY, STERN, THOMAS, WANSACZ, WATSON,
WILT AND YOUNGBLOOD, FEBRUARY 16, 2005
REFERRED TO COMMITTEE ON FINANCE, FEBRUARY 16, 2005
AN ACT
1 Amending the act of December 19, 1990 (P.L.1200, No.202),
2 entitled "An act providing for the registration and
3 regulation of solicitations by charitable organizations,
4 professional fundraisers and other solicitors; imposing
5 additional powers on the Department of State and the Office
6 of Attorney General; prescribing civil and criminal
7 penalties; and making a repeal," further providing for audit
8 of certain financial reports.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 5(f) of the act of December 19, 1990
12 (P.L.1200, No.202), known as the Solicitation of Funds for
13 Charitable Purposes Act, amended June 22, 2001 (P.L.588, No.45),
14 is amended to read:
15 Section 5. Registration of charitable organizations; financial
16 reports; fees; failure to file.
17 * * *
18 (f) Audit of certain financial reports.--The financial
1 report of every charitable organization which receives annual
2 contributions of $125,000 or more, except for any charitable
3 organization described in section 6(a)(3) which receives
4 contributions less than $300,000, shall be audited by an
5 independent certified public accountant or public accountant.
6 Except for the charitable organizations described in section
7 6(a)(3), every charitable organization which receives annual
8 contributions of at least $50,000, but less than $125,000, shall
9 be required to have a review or audit of their financial
10 statements performed by an independent certified public
11 accountant or public accountant. An audit or review is optional
12 for any charitable organization which receives annual
13 contributions of less than $50,000 or for any charitable
14 organization described in section 6(a)(3) which receives annual
15 contributions of less than [$125,000] $300,000. Audits shall be
16 performed in accordance with the Statements on Auditing
17 Standards of the American Institute of Certified Public
18 Accountants, whereas reviews shall be performed in accordance
19 with the Statements on Standards for Accounting and Review
20 Services of the American Institute of Certified Public
21 Accountants.
22 * * *
23 Section 2. This act shall take effect in 60 days.
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