Standard 12: Detailed Functional Breakdown of Expenses - Include in the financial statements a breakdown of expenses (e.g., salaries, travel, postage, etc.) that shows what portion of these expenses was allocated to program, fund raising, and administrative activities. If the charity has more than one major program category, the schedule should provide a breakdown for each category.
South Suburban Humane Society does not meet this Standard because, in the organization's financial statements, the detailed functional breakdown of expenses:
- Only included one program service category. It did not include a detailed breakdown of expenses for each of its major program activities.
- Did not include a breakdown of program service expenses.
- Did not include a breakdown of fund raising expenses.
- Did not include a breakdown of administrative expenses.
Standard 13: Accuracy of Expenses in Financial Statements - Accurately report the charity's expenses, including any joint cost allocations, in its financial statements. For example, audited or unaudited statements which inaccurately claim zero fund raising expenses or otherwise understate the amount a charity spends on fund raising, and/or overstate the amount it spends on programs will not meet this standard.
South Suburban Humane Society does not meet this Standard because its audited financial statements for the fiscal year ended September 30, 2013:
- Reports the organization had no administrative expenses.