Large charity organisations' books will face greater scrutiny under new accounting requirements that aim to increase transparency.
Charities with annual spending of $500,000 or more will be required to have their financial statements reviewed by an accountant and those that spend more than $1 million will be audited, under new accounting requirements announced by the government today.
The rules are aimed at increasing accountability in the charity sector, Commerce Minister Craig Foss said.
"These changes will improve the quality of financial reporting among charities and result in greater confidence that financial statements are reliable."
The new requirements are part of the Accounting Infrastructure Reform Bill amendment to the Charities Act which is set to be introduced later this year.
The Department of Internal Affairs will start monitoring large charities’ financial reports from 2016.
The changes were expected to affect approximately 2700 charities - or about 11 per cent of the total - Voluntary Sector Minister Jo Goodhew said
Foss said smaller charities were excluded from the new rules as they could determine themselves whether to initiate a review or audit, and because the cost of engaging an accountant was high for voluntary organisations.
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