Not-For-Profit SARBOX Awareness Up: Study
NU Online News Service, Nov. 17, 9:39 a.m. EST?A survey of not-for-profit industries released yesterday found that awareness of the corporate disclosure and accounting provisions of the Sarbanes-Oxley Act of 2002 has surged over the past year.[@@]
According to the second annual Grant Thornton Board Governance Survey for Not-for-Profit Organizations, 83 percent of survey respondents said they are "very" or "somewhat" familiar with the act, compared to 56 percent in 2003.
The survey, which includes responses from more than 700 chief executive officers, chief financial offices and board executives of not-for-profit entities, also found that these organizations are not only aware of the act, but many are also taking action because of it.
Almost half (48 percent) of survey respondents have made changes to their corporate governance policies as a result of Sarbanes-Oxley, the survey found.
"This increased awareness and action is, no doubt, the result of board members, governmental entities and other constituencies requiring enhancements in governance, operational and fiscal matters," said Frank Kurre, managing partner of Grant Thornton's National not-for-profit practice in Chicago.
The number of not-for-profit organizations with an audit committee is also on the rise; 84 percent of survey respondents cite having an audit committee within their organization, compared to 77 percent in 2003.
Only 15 percent of survey respondents, however, reported making any changes to the makeup of their audit committee post-Sarbanes-Oxley, according to the survey.
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