Pennsylvania Act 2006-121 — SOLICITATION OF FUNDS FOR CHARITABLE PURPOSES ACT - AUDIT OF CERTAIN FINANCIAL REPORTS

Act text

SOLICITATION OF FUNDS FOR CHARITABLE PURPOSES ACT - AUDIT OF CERTAIN
                            FINANCIAL REPORTS
                 Act of Oct. 27, 2006, P.L. 1180, No. 121             Cl. 10
                             Session of 2006
                               No. 2006-121

     HB 632

                                  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 certain 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 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.
        * * *
        Section 2.  The amendment of section 5(f) of the act shall
     apply to financial reports covering a period which concludes
     after the effective date of this section.
        Section 3.  This act shall take effect in 60 days.

     APPROVED--The 27th day of October, A. D. 2006.

     EDWARD G. RENDELL