Standard 4: Compensated Board Members - Not more than one or 10% (whichever is greater) directly or indirectly compensated person(s) serving as voting member(s) of the board. Compensated members shall not serve as the board's chair or treasurer.
FINCA does not meet this Standard because:
- Three members out of the 16 member board of directors (19%) are compensated either directly or indirectly. The Chairman is indirectly compensated as the brother of a staff member. Two other board members are directly compensated as employees,.
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.
FINCA does not meet this Standard because:
- FINCA does not meet this Standard because its audited financial statements were not prepared in accordance with Generally Accepted Accounting Principles (GAAP). The audited financial statements for the year ended December 31, 2009 stated that FINCA adopted the International Financial Reporting Standards (IFRS) as the accounting basis related to its operations instead of accounting principles generally accepted in the United States of America.
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.
FINCA does not meet this Standard because, in the organization's 2009 audited financial statements, the detailed functional breakdown of expenses:
- Was not included. A detailed functional breakdown shows expenses by natural classification (e.g., salaries, travel, postage, etc.) and indicates what portion of these expenses was allocated to program, fund raising, and administrative activities).