PRINTER'S NO. 1706
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
1237
Session of
2015
INTRODUCED BY DEASY, MILLARD, D. COSTA, KORTZ, READSHAW AND
SCHEMEL, JUNE 5, 2015
REFERRED TO COMMITTEE ON STATE GOVERNMENT, JUNE 5, 2015
AN ACT
Amending the act of December 19, 1990 (P.L.1200, No.202),
entitled "An act providing for the registration and
regulation of solicitations by charitable organizations,
professional fundraisers and other solicitors; imposing
additional powers on the Department of State and the Office
of Attorney General; prescribing civil and criminal
penalties; and making a repeal," further providing for audit
of financial reports.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 5(f) of the act of December 19, 1990
(P.L.1200, No.202), known as the Solicitation of Funds for
Charitable Purposes Act, amended October 27, 2006 (P.L.1180,
No.121), is amended to read:
Section 5. Registration of charitable organizations; financial
reports; fees; failure to file.
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(f) Audit of certain financial reports.--
(1) The financial report of every charitable
organization which receives annual contributions of
[$300,000] $400,000 or more shall be audited by an
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independent certified public accountant or public accountant.
The department shall annually adjust the annual contribution
amount under this paragraph to reflect upward changes in the
Consumer Price Index for All Urban Consumers for the
Pennsylvania, New Jersey, Delaware and Maryland area for the
preceding 12 months. The department shall submit the adjusted
amounts to the Legislative Reference Bureau for publication
as a notice in the Pennsylvania Bulletin.
(2) Every charitable organization which receives annual
contributions of at least $100,000, but less than [$300,000]
$400,000, shall be required to have a review or audit of
their financial statements performed by an independent
certified public accountant or public accountant. The
department shall annually adjust the maximum annual
contribution amount under this paragraph to reflect upward
changes in the Consumer Price Index for All Urban Consumers
for the Pennsylvania, New Jersey, Delaware and Maryland area
for the preceding 12 months. The department shall submit the
adjusted amounts to the Legislative Reference Bureau for
publication as a notice in the Pennsylvania Bulletin.
(3) Every charitable organization which receives annual
contributions of at least $50,000, but less than $100,000,
shall be required to have a compilation, review or audit of
their financial statements performed by an independent
certified public accountant or public accountant. A
compilation, audit or review is optional for any charitable
organization which receives annual contributions of less than
$50,000.
(4) Audits shall be performed in accordance with
generally accepted auditing standards, including the
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Statements on Auditing Standards of the American Institute of
Certified Public Accountants, whereas reviews shall be
performed in accordance with the Statements on Standards for
Accounting and Review Services of the American Institute of
Certified Public Accountants.
* * *
Section 2. The amendment of section 5(f) of the act shall
apply to fiscal years beginning on or after the effective date
of this section.
Section 3. This act shall take effect in 60 days.
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