Revised proposals on auditing for charities

Commerce Minister Craig Foss has today released a second discussion document on measures to improve financial accountability in the charities sector.

The discussion document lays out audit and assurance requirements for large and medium-sized charities. It follows a consultation on tentative proposals last year.

“The consultation showed widespread support for improved auditing and assurance of financial statements and agreement that these measures would increase accountability in the charities sector.

“However, concerns were raised that the requirements captured too many charities and that these charities were not resourced to meet the new demands.

“These concerns have been taken into account in this discussion document and I look forward to hearing feedback on the revised proposals,” says Mr Foss.

Under the proposals, charities with operating expenditure of $1 million or more would be required to have an audit completed. Those with operating expenditure of $400,000 to $1 million could voluntarily obtain an audit or a review.

“These revised requirements would apply to 3,150 of the 25,000 registered charities,” says Mr Foss.

MBIE is also taking part in the External Reporting Board’s financial reporting roadshow, which will take place between March and May and is targeted at the charities sector.

Submissions close 17 May 2013.

For further information, visit http://www.med.govt.nz/business/business-law/financial-reporting-framework-review/consultation-on-audit-and-assurance-for-registered-charities