This bill amends the audit requirements for consumers' cooperative associations by significantly increasing the financial thresholds that determine the type of audit or review required. Specifically, the bill raises the threshold for an annual audit or review from $100,000 to $1,000,000 for associations with annual business amounts. For associations with annual business between $1,000,000 and $2,000,000, an audit or review is mandated, while those with business exceeding $2,000,000 must undergo a full audit. The previous thresholds of $100,000 and $250,000 have been deleted and replaced with the new figures.

Additionally, the bill stipulates that if an association's annual business is less than $1,000,000, a committee of three members elected at the annual meeting may conduct the audit instead of requiring a qualified independent accountant. The bill also maintains the requirement for a full report of the audit to be presented at the annual meeting, detailing transactions with members and nonmembers, as well as the association's financial status. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 301-A:30