This bill amends the audit requirements for consumers' cooperative associations by 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 less than $100,000 to less than $1,000,000. For associations with annual business between $1,000,000 and $2,000,000, an audit or review is mandated, while those with annual business exceeding $2,000,000 must undergo a full audit. Additionally, the previous thresholds of $250,000 for audits and reviews have been removed, reflecting a significant increase in the financial limits.

The bill also stipulates that audits must be conducted by qualified independent accountants who are not affiliated with the association as officers or directors. A committee of three members elected at the annual membership meeting may conduct the audit for associations with annual business below the new threshold of $1,000,000. The full report of the audit must be presented at the association's annual meeting, detailing transactions with members and nonmembers, as well as the balance sheet and income and expenses. The act is set to take effect 60 days after its passage.

Statutes affected:
Introduced: 301-A:30
Version adopted by both bodies: 301-A:30
CHAPTERED FINAL VERSION: 301-A:30