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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2013 - 2014
Regular Session
MEMORANDUM
| Posted: | July 22, 2013 10:55 AM |
|---|---|
| From: | Senator Michael J. Stack |
| To: | All Senate members |
| Subject: | Changes to Auditing requirements under Charitable Purposes Act |
| In the near future, I plan on introducing legislation that would amend 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 certain financial reports. My legislation would remove the requirement that a charity that raises $300,000 or less receive a review or audit of their financial statement by a CPA if the charity does not have any full or part time employees. This would also apply for those charities do not pay any salaries or benefits to any contractor or consultants. This will help small non-profits that only have volunteers. It would make the following changes: 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 June 22, 2001 (P.L.588, No.45), is amended to read: Section 5. Registration of charitable organizations; financial reports; fees; failure to file. * * * (f) Audit of certain financial reports.--The financial report of every charitable organization which receives annual contributions of [$125,000] $300,000 or more shall be audited by an independent certified public accountant or public accountant. [Except for the charitable organizations described in section 6(a)(3), every] Every charitable organization which receives annual contributions of at least $100,000, but less than $300,000, shall be required to have a review or audit of their financial statements performed by an independent certified public accountant or public accountant. Every charitable organization which receives annual contributions of at least $50,000, but less than [$125,000] $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. [An] A compilation, audit or review is optional for any charitable organization which receives annual contributions of less than $50,000 [or for any charitable organization described in section 6(a)(3) which receives annual contributions of less than $125,000]. Audits shall be performed in accordance with generally accepted auditing standards, including the 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. If you have any additional questions on this legislation, please contact my Harrisburg office for details. |
Introduced as SB1286