CHAPTER 31

(SB 1)

Audit requirements for certain nonprofit corporations revised.

         ENTITLED, An Act to  eliminate the requirement that certain nonprofit corporations file an annual report with the Department of Legislative Audit and to provide for Department of Legislative Audit approval of single audits of certain nonprofit corporations.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF SOUTH DAKOTA:

     Section  1.  That § 4-11-2.1 be amended to read as follows:

     4-11-2.1.   All Any charitable or nonprofit corporation receiving federal funds through the state or its political subdivisions, that is required to be audited in accordance with the Federal Single Audit Act Amendments of 1996 Public Law 104-156 (31 U.S.C. sections 7501 to 7507) as amended to January 1, 2003, shall comply with the provisions of §  4-11-7, except for the restrictions on payment for the audit, when hiring a public accountant to perform the audit. The auditor-general may examine all financial records, related to funds provided by the state or its political subdivisions, of any charitable or nonprofit corporations receiving appropriated funds from the state or its political subdivisions either directly or through a state agency shall be required to file an annual financial report disclosing the receipt and disbursement of all appropriated funds with the Department of Legislative Audit in form and contents as prescribed by the auditor-general. The auditor-general shall be authorized to examine all books, accounts, and reports of such corporations relating to the receipt and disbursement of appropriated funds, if he deems it corporation if deemed necessary and in the public interest that they be examined by the auditor-general .

     Signed February 18, 2003.

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