BC Societies Act (Copy)
$5.00
Description
Client Name: ABC Society
Period Ended: December 31, 201X
Purpose
To document the audit considerations related to the organizations compliance with applicable laws and regulations – BC Societies Act (the “Act”)
Understanding the BC Societies Act
Acknowledging that it is not the Auditors responsibility to have a complete understanding of the BC Societies Act as that would be the responsibility of the entities legal counsel, we must acknowledge those sections of the Act that have either a direct or indirect effect on the organizations financial statements or the audit engagement. Below we have summarized those sections of the Act that we feel meet this responsibility.
Transition to the new BC Societies Act
[once transition has been successfully completed these section may be reduced to just identify when transition was completed]
The Act is effective November 28, 2016 and requires all Societies to transition prior to November 28, 2018. Irrespective of the final transition date, many of the provisions in the Act apply as of November 28, 2016 including the required note disclosures. Where a Society does not transition by November 28, 2018, it may be dissolved by the Registry.
Ongoing Compliance with BC Societies Act
- AGM is required to be held annual and should not be greater than 15 months after the prior year’s AGM (S 71)
- Financial statements must be presented at the AGM not later than 6 months after the year-end (S 72)
- Annual report is to be filed within 30 days after the AGM
- For a society which is not member funded
- must have at least 3 directors
- majority of which do not receive remuneration under contracts for services (S 40 / 41)
- Any remuneration for being a director must be permitted under the Societies bylaws
- Financial statement disclosures are required to include (S 36 / 37)
- remuneration paid to any directors
- remuneration paid to any employees / contractors who’s total compensation excesses $75,000 (top 10 maximum)
- details of any financial assistance provided, outside of the original course of the Society’s activities, including loans, guarantees or the provision of any type of security
- Financial statements shall not be published unless they have been approved by directors and signed by one or more directors to confirm approval obtained, and the engagement report is attached (S 38)
- No reference to audited financial statements is permitted if an audit was not completed (S 38)
- Auditors Report is required to state the financial statements fairly present, where prepared in accordance with generally accepted accounting principles (ASNFPO) and the financial statements were prepared on a basis consistent with the prior period (S 117)
- The Auditor is entitled to attend the AGM (S. 118)
Audit Procedures
Transition to the New Societies Act
The Society transitioned to the new Act on [date]. A copy of Society’s’ constitution and bylaws were obtained and filed [not where]. A copy of the confirmation of file from BC Registries was obtained [WP xx]
‘Or’
The Society has not yet transitioned to the new Act. Management and Board of Directors have been made aware of the requirement through discussion as well as written communication in the audit finalization communication and the management letter. [WP xy and xz]
Annual General Meeting
The 20×7 AGM was held on [date] which was evidenced by review of the minutes of the meeting
The annual report was filed on [date] which was evidence by review of the filed document [online verification annual report filed]
The AGM for 20×8 is scheduled for [date] which is within 6 months of the fiscal year end
[Name] for our firm will be attending the board meeting [AGM] to present our Auditors’ Report and answer any direct questions
Directors
The Society has more than 3 directors which was evidenced during preparation [or review] of the T3010
No directors received any compensation of which we are aware, the following sections include the procedures that were performed
- For related party transactions
- e-imbursement expenditure testing
- [other]
Disclosures – Remuneration
There was no remuneration for staff or contractors in excess of $75,000 noted [or the following individuals / contractors received total remuneration in excess of $75,000 – provide listing]
The following audit procedures were performed
- During payroll audit work total compensation of all staff was reviewed, any staff with salaries over $70,000 were specifically considered in relation to total compensation (bonuses, benefits, etc.)
- Inquired of management re: any employees / contractors (individual or corporate) with total annual contracts above $50,000 [management noted ….]
- Scanned suppliers listing with total payments during the year [Sage / Quickbooks reports]
- Remained aware of this requirement during all expenditure testing, no significant employees / contractors were noted
See Clear-Cut for sample disclosures
Disclosures – Financial assistance
The Society has not provided financial assistance, outside of the original course of the Society’s activities [or the following financial assistance has been provided by the Society]
The following audit procedures were performed
- Considered all loans / notes receivable and all grants or awards issued by the Society
- Inquired of management as to any loans, guarantees or security provided to any other organizations or individuals
- Remained aware of this requirement during all relevant audit testing, no transactions indicating financial assistance were noted
Auditors Report
The Auditors’ Report meets the requirements related to reporting on the fair presentation and the appropriate accounting framework. In order to report on the consistency in the application of the accounting policies an other matter paragraph related to other legal and regulatory requirements has been included.
See Clear-Cut for sample of Other Matter
