Text Box: A bill that would give certain small businesses another year to comply with Section 404 of the Sarbanes-Oxley Act is idling in a House subcommittee. HR 2727 would require the SEC to allow non-accelerated filers to delay providing management’s sign-off on internal controls for financial reporting until Dec. 15, 2008. The bill has the backing of 51 sponsors. The measure joins others that aim to mitigate the affect of the act on small businesses. This means that all reports filed after December 15,2007 will be subject to the audit provisions of Section 404.The SEC staff has indicated that they will look at the costs incurred by small companies required to file next year. It is expected that some small companies will choose to move to the pink sheets where SOX is not applicable. It is also possible that a new administration will review such costs in 2009. For free SOX research, visit www.Section404.org the site of our colleagues Lord & Benoit. We continue to believe that associations should voluntarily undertake a SOX review and would be pleased to discuss the concept with you. Corporate governance principles apply equally to associations and in a few states are specifically required or implied..

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Sarbanes Oxley Update