Standard 11: Financial Statements - Make available to all, on request, complete annual financial statements prepared in accordance with generally accepted accounting principles. When total annual gross income exceeds $250,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $250,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $100,000, an internally produced, complete financial statement is sufficient to meet this standard.
Adams & Brown Counties Economic Opportunities does not meet this standard because the charity’s audited financial statements were not completed in conformity with GAAP (generally accepted accounting principles).
According to the charity’s audited financial statements for the year ended December 31, 2009, “the financial statements of ABCAP have been prepared on the same basis of accounting as it uses for reporting on its federal Form 990, Return of Organization Exempt from Income Tax, with the Internal Revenue Service. This comprehensive basis of accounting other than accounting principles generally accepted in the United Statements of American (U.S. GAAP). The primary difference between this basis and U.S. GAAP are that assets, liabilities, revenues, and expenses of commonly controlled entities are not combined within these financial statements; capital assets purchased with grant funds are charged to expense in the year of acquisition, rather than capitalized and depreciated over their useful lives certain items of revenue are recognized when received rather than when earned; and no in-kind services are recognized as income or 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.
Despite evidence of fundraising efforts, the charity reported zero fundraising expenses in its audited financial statements for the year ended December 31, 2009.
Standard 16: Annual Report - Have an annual report available to all, on request, that includes: (a) the organization's mission statement, (b) a summary of the past year's program service accomplishments, (c) a roster of the officers and members of the board of directors, (d) financial information that includes (i) total income in the past fiscal year, (ii) expenses in the same program, fund raising and administrative categories as in the financial statements, and (iii) ending net assets.
Despite written requests, BBB was not provided with the charity's most recent annual report.