Charities Amendment Act 2014

1: Title
This Act is the Charities Amendment Act 2014.
2: Commencement
1: This Act comes into force on a date appointed by the Governor-General by Order in Council; and 1 or more orders may be made bringing different provisions into force on different dates.
2: To the extent that it has not previously been brought into force under subsection (1), the rest of this Act comes into force on 1 April 2017. Section 2(1) brought into force 1 April 2015 Charities Amendment Act 2014 Commencement Order 2014
3: Principal Act
This Act amends the Charities Act 2005 principal Act OIC LI 2014/352 2015-04-01 Charities Act 2005
4: New section 6A inserted (Transitional, savings, and related provisions)
After section 6
6A: Transitional, savings, and related provisions
The transitional, savings, and related provisions set out in Schedule 1AA have effect according to their terms.
5: New sections 42C to 42F inserted
After section 42B
42C: When financial statements must be audited or reviewed
1: This section applies to—
a: every charitable entity that is large; and
b: every charitable entity that is of medium size.
2: Every charitable entity to which this section applies ( A
a: audited by a qualified auditor if A is large in respect of the accounting period to which the financial statements relate:
b: audited or reviewed by a qualified auditor if A is of medium size in respect of the accounting period to which the financial statements relate.
3: If financial statements are prepared on a consolidated basis in respect of a single entity under section 46(1A)(a),—
a: the parent entity must ensure that the financial statements of the single entity that accompany an annual return under section 41 are—
i: audited by a qualified auditor if the single entity is large in respect of the accounting period to which the financial statements relate:
ii: audited or reviewed by a qualified auditor if the single entity is of medium size in respect of the accounting period to which the financial statements relate; and
b: for the purposes of paragraph (a) subsection (1) sections 42D(1) and 42F
42D: Meaning of large and medium size
1: In section 42C
a: a charitable entity is large
b: a charitable entity is of medium size
i: it is not large under paragraph (a)
ii: in each of the 2 preceding accounting periods of the entity, the total operating expenditure of the entity and all entities it controls (if any) is $500,000 or more:
c: qualified auditor
2: A financial reporting standard (within the meaning of the Financial Reporting Act 2013), or a part of such a standard, that is expressed as applying for the purposes of subsection (1)(a) or (b)
42E: Offence relating to audit or review
If a charitable entity fails to comply with section 42C
42F: Audit or review must be carried out in accordance with auditing and assurance standards
1: An auditor must, in carrying out an audit or a review of the financial statements of a charitable entity, comply with all applicable auditing and assurance standards.
2: The auditor's report must comply with the requirements of all applicable auditing and assurance standards.
3: This section does not apply in respect of a charitable entity that is a public entity (within the meaning of the Public Audit Act 2001).
4: In this section, applicable auditing and assurance standards
6: Section 46 amended (Board or chief executive may treat parent entity and 1 or more other entities as forming part of single entity on certain terms and conditions)
Before section 46(2)
1C: If terms and conditions referred to in subsection (1A) relate to the financial statements of an entity, those terms and conditions must be treated as including a requirement for the financial statements to disclose, in the statement of accounting policies section, a brief description of the terms and conditions that apply under subsection (1A).
7: New Schedule inserted
Before Schedule 1 Schedule 1AA Schedule