The Board of Administration has approved an updated Assurance Policy (was formally known as the Audit Policy). This has moved away from looking at operating revenue to basing the decision making based upon operating expenditure.
The Board of Administration agreed to adopt the Independent Assurance Policy for any entity that reports to the Conference of the Methodist Church of New Zealand for financial years ending on or after 1 January 2015 and therefore it will apply for most Methodist entities this year.
The policy has been developed to line up with the legal requirements of registered charities also.
In general, look at the constitution first to see what it provides for, look at funding agreements with funding providers, refer to the policy document and then what the Law provides but (subject to what i have just said) if the operating expenditure of the entity is lower than $500,000 over the last two financial years, then you will not be required to have an audit or review (but you can still have one if you so choose).
Click on the link below to download a copy of the new policy document.
Any questions or comment about this issue, please let me know.
Peter van Hout