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.
SP does not meet this Standard because:
- The paid chief executive officer also serves as the chair of the board of directors.
- 3 out of 22 (14%) board members are compensated directly.
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.
SP does not meet this Standard because:
- The organization's functional breakdown of expenses did not include all of its major program categories.
In response to this finding, the charity stated, in part: ". . . we follow all generally accepted accounting principles in our financial statements."
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.
SP does not meet this standard because the most recent annual report did not include:
- Total income.
- Total expenses for each program in the same categories that appear in the organization’s financial statements.
- Total fund raising expenses.
- Total administrative expenses.
- Total end of year net assets.