Changes to Illinois Charitable Audit Requirements

Published On: June 1st, 2023Categories: Accounting, Auditing Standards, Not-for-Profits


HB1197 has passed both houses in Illinois and is on the desk of the Governor to sign. This bill will change the Illinois Charitable Audit Requirements.

The Illinois Attorney General has required an audit for charitable organizations with revenue over $300,000 for many years. This bill will increase the threshold to $500,000 and will require reviewed financial statements for organizations with revenue from $300,000-$500,000. This bill will go into effect on January 1, 2024.

Once signed in law, there will need to be further clarification on the effect date. It is still to be determined if that means all audits performed after January 1, 2024 will fall under the new bill, or if it will apply for all fiscal years ending on or after January 1, 2024.

We will keep you up to date as we obtain further details on the proposed bill. View the entire bill HB1197 here.

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About the Author: Cheryden Juergensen

Cheryden Juergensen, CPA, has been with Eccezion since 2002, earning Partner status in 2013. An audit specialist with nearly 20 years of experience, she researches new auditing standards and implementation, and serves as the firm’s quality control partner, ensuring that the team follows proper procedures in all financial statements. “I work with our non-profits and governmental clients, but also several small businesses,” she explains.