Standard 1: Oversight of Operations and Staff - Organizations shall have a board of directors that provides adequate oversight of the charity's operations and its staff. Indication of adequate oversight includes, but is not limited to, regularly scheduled appraisals of the CEO's performance, evidence of disbursement controls such as board approval of the budget, fund raising practices, establishment of a conflict of interest policy, and establishment of accounting procedures sufficient to safeguard charity finances.
The Foundation does not meet this Standard because its board of directors does not:
- Review the performance of the chief executive officer at least once every two years.
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.
The Foundation does not meet this Standard because, in the organization's financial statements, the detailed functional breakdown of expenses:
- Did not include a complete detailed functional breakdown of program expenses by natural classification (e.g., office space, travel, postage, supplies, etc.).