MN HF143

Removes mandatory annual financial audits for organizations with gross receipts over $750,000 and makes audits discretionary based on compliance violations, effective July 1, 2021.

Commissioner may require audits for organizations with less than $750,000 in annual gross receipts only if they fail to timely file tax returns, pay taxes/fees, file fraudulent returns, ignore corrective actions, or otherwise violate gambling regulations.

Requires all organizations licensed under chapter 349 to perform annual certified inventory and cash count at fiscal year end and submit report to commissioner within 30 days.

Modifies charitable organization revenue calculation for audit threshold purposes by allowing organizations conducting lawful gambling to subtract prizes actually paid from gross receipts when computing revenue under the $750,000 threshold.

All audits must be performed by independent accountants licensed under chapter 326A, with standards prescribed by the commissioner and consistent with American Institute of Certified Public Accountants standards.