This bill amends the annual 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 association's annual business from less than $100,000 to less than $500,000, allowing for a committee of three elected members to conduct the audit instead of requiring a qualified independent accountant. Additionally, the range for mandatory audits is adjusted from between $100,000 and $250,000 to between $500,000 and $2,000,000, while the requirement for a full audit remains for associations with annual business exceeding $2,000,000.

The changes in the bill include the deletion of the previous financial thresholds and their replacement with the new amounts, which are intended to reduce the audit burden on smaller associations. The bill also stipulates that a full report of the audit must 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