Increased Charities Reporting

New auditing and review requirements have been announced that will apply to charities with annual exenditure of $500,000 or more.

Currently all registered charities are required to attach financial statements to their annual returns. 

New requirements announced this week will provide that charities with annual expenditure of $500,000 or more will need to have their financial statements reviewed by a qualified accountant.

Charities with annual expenditure of more than $1m will have to have their financial statements audited.

The new requirments will be legislated for in the Accounting Infrastructure Reform Bill,  which will amend the Charities Act. “

The Department of Internal Affairs, which administers registered charities will start monitoring the financial reports lodged by registered charities from 2016.

It is estimated that approximately 2700 charities (about 11% of registered charities) will be affected by the new review and audit requirements. 

For more information see www.med.govt.nz/business/business-law/financial-reporting-framework-review/audit-and-assurance-for-registered-charities

Also see: http://www.nzica.com/News/Archive/2013/October/Achievers-and-underdogs-the-changing-nature-of-charitable-funding.aspx