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.
NLEC does not meet this Standard because its board of directors does not:
- Have an approved conflict of interest policy. The organization has informed the BBB that employees and board members do sign a conflict of interest form and that a board approved policy is being crafted.
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.
NLEC does not meet this Standard because:
- 4 member(s) out of the 14 member board of directors (28.5%) is/are compensated either directly or indirectly.
- The paid chief executive officer also serves as the chair of the board of directors.
- The chair of the board is compensated either directly or indirectly.
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 $500,000, these statements should be audited in accordance with generally accepted auditing standards. For charities whose annual gross income is less than $500,000, a review by a certified public accountant is sufficient to meet this standard. For charities whose annual gross income is less than $250,000, an internally produced, complete financial statement is sufficient to meet this standard.
NLEC does not meet this Standard because:
- It states it does not have audited financial statements for the past fiscal year.
Standard 14: Budget - Have a board-approved annual budget for its current fiscal year, outlining projected expenses for major program activities, fund raising, and administration.
NLEC does not meet this Standard because, when the organization provided budget information, it indicated that the budget:
- Included total projected program service expenses, however, did not break these expenses down by major program category.