Utah Code 51-2a-201.5. Accounting reports required — Reporting to state auditor — Registration as a limited purpose entity

51-2a-201.5. Accounting reports required — Reporting to state auditor — Registration as a limited purpose entity.

(1)

As used in this section:

Terms Used In Utah Code 51-2a-201.5

Audit: means an examination that:

(a)	is performed in accordance with generally accepted government auditing standards, or for a nonprofit corporation or a governmental nonprofit corporation, in accordance with generally accepted auditing standards; and

(b)

conforms to the uniform classification of accounts established or approved by the state auditor or any other classification of accounts established by any federal government agency. See Utah Code 51-2a-102

Compilation: means information presented in the form of financial statements presented in conformity with generally accepted accounting principles that are the representation of management without the accountant undertaking to express any assurances on the statements. See Utah Code 51-2a-102

Contract: A legal written agreement that becomes binding when signed.

Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.

Fiscal report: means providing information detailing revenues and expenditures of all funds in a format prescribed by the state auditor. See Utah Code 51-2a-102

Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.

Governing board: means :

(a)	the governing board of each political subdivision;

(b)	the governing board of each interlocal organization having the power to tax or to expend public funds;

(c)	the governing board of any local mental health authority established under the authority of Title 26B, Chapter 5, Health Care - Substance Use and Mental Health;

(d)	the governing board of any substance abuse authority established under the authority of Title 26B, Chapter 5, Health Care - Substance Use and Mental Health;

(e)	the governing board of any area agency established under the authority of 1;

(f)

the board of directors of any nonprofit corporation that receives an amount of money requiring an accounting report under Section 51-2a-201. See Utah Code 51-2a-102

Review: means performing inquiry and analytical procedures that provide the accountant with a reasonable basis for expressing limited assurance that there are no material modifications that should be made to the financial statements for them to be in conformity with generally accepted accounting principles. See Utah Code 51-2a-102

State: when applied to the different parts of the United States, includes a state, district, or territory of the United States. See Utah Code 68-3-12.5

(a)

(i)	“Federal pass through money” means federal money received by a nonprofit corporation through a subaward or contract from the state or a political subdivision.

(ii)	“Federal pass through money” does not include federal money received by a nonprofit corporation as payment for goods or services purchased by the state or political subdivision from the nonprofit corporation.

(b)

(i)	“Local money” means money that is owned, held, or administered by a political subdivision of the state that is derived from fee or tax revenues.

(ii)

“Local money” does not include:

(A)	money received by a nonprofit corporation as payment for goods or services purchased from the nonprofit corporation; or

(B)	contributions or donations received by the political subdivision.

(c)

(i)	“State money” means money that is owned, held, or administered by a state agency and derived from state fee or tax revenues.

(ii)

“State money” does not include:

(A)	money received by a nonprofit corporation as payment for goods or services purchased from the nonprofit corporation; or

(B)	contributions or donations received by the state agency.

(2)

(a)	The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is $1,000,000 or more shall cause an audit to be made of its accounts by an independent certified public accountant.

(b)	The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is at least $350,000 but less than $1,000,000 shall cause a review to be made of its accounts by an independent certified public accountant.

(c)	The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is at least $100,000 but less than $350,000 shall cause a compilation to be made of its accounts by an independent certified public accountant.

(d)	The governing board of a nonprofit corporation whose revenues or expenditures of federal pass through money, state money, and local money is less than $100,000 but greater than $25,000 shall cause a fiscal report to be made in a format prescribed by the state auditor.

(3)	A nonprofit corporation described in Section 51-2a-102 shall provide the state auditor a copy of an accounting report prepared under this section within six months of the end of the nonprofit corporation’s fiscal year.

(4)

(a)

A state agency that disburses federal pass through money or state money to a nonprofit corporation shall enter into a written agreement with the nonprofit corporation that requires the nonprofit corporation to annually disclose whether:

(i)	the nonprofit corporation met or exceeded the dollar amounts listed in Subsection (2) in the previous fiscal year of the nonprofit corporation; or

(ii)	the nonprofit corporation anticipates meeting or exceeding the dollar amounts listed in Subsection (2) in the fiscal year the money is disbursed.

(b)	If the nonprofit corporation discloses to the state agency that the nonprofit corporation meets or exceeds the dollar amounts as described in Subsection (4)(a), the state agency shall notify the state auditor.

(5)	This section does not apply to a nonprofit corporation that is a charter school created under Title 53G, Chapter 5, Charter Schools. A charter school is subject to the requirements of Section 53G-5-404.

(6)	A nonprofit corporation is exempt from Section 51-2a-201.

(7)

(a)

Each nonprofit corporation that receives an amount of money requiring an accounting report under this section shall register in accordance with Section 67-1a-15 within six months of the end of the nonprofit corporation’s fiscal year and maintain the nonprofit corporation’s registration as a limited purpose entity each year that the nonprofit corporation is required to prepare an account report under this section.

(b)	A nonprofit corporation described in Subsection (7)(a) that fails to comply with Subsection (7)(a) or Section 67-1a-15 is subject to enforcement by the state auditor, in accordance with Section 67-3-1.

Amended by Chapter 30, 2020 General Session

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