s.13Review of financial statements
13
Section 13Part 5 — FINANCIAL STATEMENTS AND ANNUAL RETURNS

Review of financial statements

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A non-profit organisation with a gross annual income in excess of two hundred and fifty thousand dollars and which remits thirty per cent or more of that gross annual income outside of the Islands shall have its financial statements reviewed in accordance with internationally accepted standards on review engagements or such other review engagement standards as may be prescribed.
A review required under subsection (1) shall be conducted by an independent —
duly qualified accountant who, neither for profit nor reward, undertakes to perform the review; or
licenced accountant.
Notwithstanding subsection (1), the Registrar may, where the Registrar considers it necessary to do so, require that the financial statements of a non-profit organisation registered under this Law be reviewed in accordance with subsections (1) and (2).
A person who has been retained to review the financial statements under this section shall —
have a right of access to all books, financial statements and documents relating to the non-profit organisation which are in the possession or control of a controller or to which a controller has access;
be entitled to require from a controller of a non-profit organisation, past or present officer or employee of the non-profit organisation such information and explanation as the first-mentioned person thinks necessary for the performance of that person's duties; and
make an internationally accepted report about the financial statements of the non-profit organisation and submit a copy of that report to the controller of the non-profit organisation.
Where a review of the financial statements of a non-profit organisation is required under this section, a controller of a non-profit organisation shall ensure that the report resulting from a review of the financial statements is submitted to the Registrar within nine months of the end of the financial year.
The Registrar may approve a written request by a controller of a non-profit organisation to extend the period for submitting a report on the review of financial statements by three months where the initial nine month period provided under subsection (5) has expired.
The expenses of a review, including the remuneration of the person conducting the review, shall be paid by the non-profit organisation.
The Registrar shall, at the request of the Attorney General, provide the Attorney General with a copy of a review report prepared on a non-profit organisation.
The financial statements relating to a non-profit organisation shall be preserved by the non-profit organisation for a period of at least five years from the end of the financial year unless the non-profit organisation ceases to exist.
In this section, the "gross annual income" of a non-profit organisation includes —
income received from the provision of goods and services;
rental income;
interest on other income derived from investments;
receipt of donations and money; and
the award of grants.

Defined Terms

gross annual income

Referenced By