It follows a consultation on tentative proposals last year which indicated concerns that the requirements captured too many charities and that these charities were not resourced to meet the new demands.

Under the new 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.

The Minister of Commerce Craig Foss says these revised requirements would apply to 3,150 of the 25,000 registered charities.

Submissions close 17 May 2013.

Source

• Scoop
• Image: Teara

"We don't want a few organisations damaging the reputation of all New Zealand charities," says Foss. "Charities make a valuable contribution to society and it's important to get the balance right. They must be transparent and accountable but not subject to too much interference.

"The changes under consideration will only affect the largest 20 per cent of charities in New Zealand and leave smaller charities unaffected," says Mr Foss.

A higher level of transparency and accountability is being called for.

Registered charities are currently required to include financial statements in their annual return when it is lodged with the Charities Commission, but there is no requirement for the financial statements to be independently audited or reviewed.

Charities that spend more than $300,000 a year would have their financial statements audited, and charities spending between $200,000 and $300,000 would be required to complete an audit or assurance engagement.

Interested parties have until 20 July 2012 to make submissions.

Source

• New Zealand Herald
• Scoop
• Law Society
• Image: Stuff.co.nz - Datamail