BILL ANALYSIS H.B. 2252 By: Ashby State Affairs Committee Report (Unamended) BACKGROUND AND PURPOSE Under current procedures, charities in Texas with budgets over $100,000 must undergo an official audit in order to qualify to receive contributions from the state employee charitable campaign. Some parties contend that a reasonable alternative for smaller organizations with budgets just over $100,000 would be an annual review by a certified public accountant as opposed to an official audit. These parties estimate that such a review could save a smaller charity thousands of dollars per year, allowing the organization to dedicate more dollars directly to its programs. Interested parties further assert that it is not uncommon for a smaller charitable organization to have such a review instead of an audit. H.B. 2252 seeks to ease the financial burden of an official audit for smaller charitable organizations wishing to participate in a state employee charitable campaign by raising the annual budget threshold above which an official audit is required as a condition of eligibility for such participation. RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution. ANALYSIS H.B. 2252 amends the Government Code to increase from $100,000 to $250,000 the threshold below which a charitable organization, to be eligible to participate in a state employee charitable campaign, must provide a completed IRS Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operation. The bill increases from $100,000 to $250,000 the annual budget threshold above which a charitable organization, to be eligible to participate in a state employee charitable campaign, must be audited annually in accordance with generally accepted auditing standards. EFFECTIVE DATE September 1, 2013.
BILL ANALYSIS
# BILL ANALYSIS
H.B. 2252
By: Ashby
State Affairs
Committee Report (Unamended)
H.B. 2252
By: Ashby
State Affairs
Committee Report (Unamended)
BACKGROUND AND PURPOSE Under current procedures, charities in Texas with budgets over $100,000 must undergo an official audit in order to qualify to receive contributions from the state employee charitable campaign. Some parties contend that a reasonable alternative for smaller organizations with budgets just over $100,000 would be an annual review by a certified public accountant as opposed to an official audit. These parties estimate that such a review could save a smaller charity thousands of dollars per year, allowing the organization to dedicate more dollars directly to its programs. Interested parties further assert that it is not uncommon for a smaller charitable organization to have such a review instead of an audit. H.B. 2252 seeks to ease the financial burden of an official audit for smaller charitable organizations wishing to participate in a state employee charitable campaign by raising the annual budget threshold above which an official audit is required as a condition of eligibility for such participation.
RULEMAKING AUTHORITY It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS H.B. 2252 amends the Government Code to increase from $100,000 to $250,000 the threshold below which a charitable organization, to be eligible to participate in a state employee charitable campaign, must provide a completed IRS Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operation. The bill increases from $100,000 to $250,000 the annual budget threshold above which a charitable organization, to be eligible to participate in a state employee charitable campaign, must be audited annually in accordance with generally accepted auditing standards.
EFFECTIVE DATE September 1, 2013.
BACKGROUND AND PURPOSE
Under current procedures, charities in Texas with budgets over $100,000 must undergo an official audit in order to qualify to receive contributions from the state employee charitable campaign. Some parties contend that a reasonable alternative for smaller organizations with budgets just over $100,000 would be an annual review by a certified public accountant as opposed to an official audit. These parties estimate that such a review could save a smaller charity thousands of dollars per year, allowing the organization to dedicate more dollars directly to its programs. Interested parties further assert that it is not uncommon for a smaller charitable organization to have such a review instead of an audit. H.B. 2252 seeks to ease the financial burden of an official audit for smaller charitable organizations wishing to participate in a state employee charitable campaign by raising the annual budget threshold above which an official audit is required as a condition of eligibility for such participation.
RULEMAKING AUTHORITY
It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.
ANALYSIS
H.B. 2252 amends the Government Code to increase from $100,000 to $250,000 the threshold below which a charitable organization, to be eligible to participate in a state employee charitable campaign, must provide a completed IRS Form 990 and an accountant's review that offers full and open disclosure of the organization's internal operation. The bill increases from $100,000 to $250,000 the annual budget threshold above which a charitable organization, to be eligible to participate in a state employee charitable campaign, must be audited annually in accordance with generally accepted auditing standards.
EFFECTIVE DATE
September 1, 2013.