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TO AMEND SECTION 33-56-60, AS AMENDED, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO REPORTING OF FINANCIAL ACTIVITIES BY A CHARITABLE ORGANIZATION SOLICITING FUNDS IN THIS STATE, SO AS TO REQUIRE AN AUDITED FINANCIAL STATEMENT FROM AN ORGANIZATION WHOSE ANNUAL GROSS SUPPORT AND REVENUE IS MORE THAN FIVE HUNDRED THOUSAND DOLLARS AND TO REQUIRE A REVIEW REPORT FROM A CERTIFIED PUBLIC ACCOUNTANT FROM AN ORGANIZATION WHOSE ANNUAL GROSS SUPPORT AND REVENUE IS MORE THAN TWO HUNDRED THOUSAND DOLLARS BUT NOT MORE THAN FIVE HUNDRED THOUSAND DOLLARS.
Be it enacted by the General Assembly of the State of South Carolina:
SECTION 1. Section 33-56-60(D) of the 1976 Code, as last amended by Act 336 of 2000, is further amended to read:
"(D)(1) A charitable organization that received more than five hundred thousand dollars in gross support and revenue during the fiscal year covered by its annual financial report must submit a complete audited financial statement certified to be true by the organization's chief executive officer together with its annual financial report. For purposes of this section, gross support and revenue does not include gains or losses from the sale of a capital asset. The audited financial statement must be prepared in accordance with generally accepted accounting principles and reporting practices as prescribed by the American Institute of Certified Public Accountants, or its successor organization, and must be examined by an independent certified public accountant in accordance with generally accepted auditing standards for the purpose of expressing an opinion on it.
(2) A charitable organization that received more than two hundred thousand dollars, but not more than five hundred thousand dollars in gross support and revenue during the fiscal year covered by its annual financial report, must submit a financial statement, instead of an audited financial statement, accompanied by an independent certified public accountant's review report as that report is defined by the American Institute of Certified Public Accountants. This report must be certified to be true by the organization's chief executive officer.
(E) An organization which that fails to file a timely annual financial report or audited financial statement required by this section:
(1) may be enjoined from further solicitation of funds in this State in an action brought by the Secretary of State and;
(2) is ineligible to renew its registration as a charitable organization until the required financial reports or statements are filed with the Secretary of State. An organization which fails to file a timely annual financial report required by this section; and
(3) may be assessed by the Secretary of State administrative fines of ten dollars for each day of noncompliance for each delinquent report or statement, not to exceed two thousand dollars for each separate violation."
SECTION 2. This act takes effect upon approval by the Governor and applies to reports filed for fiscal years beginning on or after January 1, 2006.
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