A few weeks ago the NY State Legislature was working on a bill to increase regulation of nonprofits. Basically the bill was designed to reduce the amount of fraud being inflicted upon nonprofits, mostly in my opinion, by a flurry of State Legislators. Well, it should come as no surprise then that the accountants in the State are endorsing this effort. Afterall, with regulation comes larger needs for documentation and who more appropriate than the accountants to help. Did I say self-serving? Never thought of the word.
Anyway, here's the press release from the Accounting Society:
NY CPAs applaud state Legislature’s approval of Non-Profit Reform
NEW YORK – (June 27, 2013) The New York
State Society of Certified Public Accountants (NYSSCPA) has endorsed the
decision of the state Legislature to enact a new non-profit governance reform
bill to prevent fraud and improve public trust
Statement from NYSSCPA President J. Michael Kirkland:
"The passage of the Nonprofit Revitalization Act brings a 21st century
refresh to the rules and regulations that govern not-for-profit organizations in
New York State.
This legislation allows this vital sector to operate more efficiently, improve
operational transparency and increase accountability to the public. Most
notably, the revenue threshold limits that trigger required audits have been
raised to be more in line with the current size and scope of organizations that
require such oversight and provide relief to smaller organizations.
This proposal is a welcomed step for all of the state’s nonprofits, many of which for years have experienced the frustration of navigating a system governed by archaic rules and regulations that drain resources from mission-critical programs, especially those providing critical social services to New Yorkers hardest hit by the recent recession.
The NYSSCPA looks forward to working with legislators and state officials in the future to further improve not-for-profit organization laws."
The Nonprofit Revitalization Act of 2013 – which was approved by both the New York State Assembly and Senate on Friday, June 21 - is now awaiting N.Y. Governor Andrew Cuomo’s signature to become law. The bill represents the largest overhaul of New York nonprofit law since 1970.
Many of the NYSSCPA’s 29,000 members provide services within the state’s nonprofit sector as auditors hired by these organizations, professional staff members, or through volunteer service on their boards of directors.