The Ministry of Business, Innovation and Employment (MBIE), the new Government Ministry combining the previous Ministry of Economic Development, is now intending to release a further issues paper regarding their proposals to legislate that larger charities have their annual financial statements audited. This follows a wide range of feedback received by them on their earlier discussion paper released back in April 2012.
Much comment was received about the suggested turnover levels over which assurance would be mandatory. Hayes Knight Audit like many other industry experts felt the initially suggested thresholds were too low and would impose an unnecessary mandatory compliance burden.
It is expected that this next issues paper will be relatively short and contain concrete proposals for future legislation. Also expected is an increasing of the turnover thresholds. We understand this new issues paper will be released in early 2013. To read our earlier update on this proposed overhaul of charity auditing click here: