This note is not part of the order, but is intended to indicate its general effect.
This order, which comes into force on the 28th day after the date of its notification in the Gazette, relates to the obligation of a friendly society registered under the Friendly Societies and Credit Unions Act 1982 (the Act), and of a branch of a friendly society, to appoint a qualified auditor to audit its accounts and statement of financial position for a financial year. Currently, under section 62 of the Act, a registered society or branch is not required to appoint an auditor if the following 2 conditions are met:
the receipts and payments of the society or branch for the preceding financial year do not, in aggregate, exceed $20,000; and
the value of its assets at the end of the relevant financial year does not, in aggregate, exceed $20,000.
In the case of a registered branch, there is also no obligation to appoint an auditor if the first condition and certain other conditions relating to the transfer of assets are met. These conditions also include a $20,000 threshold.
The order increases the figure of $20,000 specified in section 62, in each case, to $50,000.
The order does not increase the audit threshold for credit unions. That remains at $20,000 in section 122 of the Act.
Date of notification in Gazette: 2 September 2010.
This order is administered by the Ministry of Economic Development.