WHO IS ACCREDITED?

Private Organization Accreditation

Germaine Lawrence is a residential treatment center for girls ages 12-18 with complex behavioral, psychological and learning challenges.   Girls live at our programs while receiving special education, individual, family and group therapy; psychiatric and primary medical care; and a wide variety of therapeutic activities and interventions.
read more >>

ORGANIZATION TESTIMONIAL

Joint Base Charleston School Age Program

Paula B. Matthews, School Age Program Coordinator

Preparing for our after school accreditation was an awesome and very valuable learning experience for the Child and Youth Professionals at Charleston Air Force Base. Becoming familiar with and understanding the After School standards was a breeze because of the training webinars and the great customer service we received from all of the COA staff. Thank you for supporting our military families.
read more>>

Purpose

The for-profit organization ensures accountability through effective administration and management, and sound financial management practices that are in accord with legal and regulatory requirements.

FOC
CA-AFM 8: Financial Accountability

The organization is accountable for the management and performance of its finances to stakeholders and applicable regulatory bodies. 

Update:

  • Revised Rating Indicators - 06/15/17
Rating Indicators
1
The organization's practices fully meet the standard, as indicated by full implementation of the practices outlined in the CA-AFM 8 Practice standards.
2
Practices are basically sound but there is room for improvement, as noted in the ratings for the CA-AFM 8 Practice standards.
3
Practice requires significant improvement, as noted in the ratings for the CA-AFM 8 Practice standards; and/or
  • CA-AFM 8.01 received a rating of 3 or 4. 
4
Implementation of the standard is minimal or there is no evidence of implementation at all, as noted in the ratings for the CA-AFM 8 Practice standards. 

Table of Evidence

Self-Study Evidence On-Site Evidence On-Site Activities
    • Audit and management letter
    • Written certification by executives and financial officers
No On-Site Evidence
    • Interview:
      1. Owner
      2. CEO or designee
      3. CFO

  • CA-AFM 8.01

    The organization receives an audit of its financial statements that is conducted within 180 days of the end of each fiscal year by an independent, certified public accountant. 

    Update:

    • Revised Standard - 06/14/17
      The interpretation was revised and a research note was added to clarify COA's requirements for a financial statement review. 

    Interpretation: There are three levels of financial statement services offered by CPAs: audits, reviews, and compilations, each of which should conducted by an independent CPA. In order to receive a 2 rating, the organization must conduct either the audit or review. Each results in a formal written report. An organization that is pursuing reaccreditation can receive a 2 rating if it has completed a review of financial statements or an audit for the most recent auditable year but did not conduct an audit for any or all of the intervening years since their last accreditation. All new applicant organizations must have an audit or a review of financial statements from their most recent auditable year in order to receive a 2 rating. 

    Research Note: Best practices in the financial industry indicates that an independent auditor, who is a certified public accountant (CPA) or chartered accountant (CA), examines the financial records and business transactions of a company with which s/he is not affiliated to avoid conflicts of interest and to ensure the integrity of the services performed. Following an audit or review the CPA provides a formal report that indicates their findings.

    An audit provides the highest level of assurance on an organization’s financial statements.  An audit provides assurance that an organization’s financial statements are free of material misstatement and are fairly presented based upon the application of generally accepted accounting principles.  An audit includes:

    • confirmation with outside parties
    • testing selected transactions by examining supporting documents
    • completing physical inspections and observations
    • considering and evaluating the internal control system of the organization  
    Following an audit the CPA issues a formal report that expresses an opinion on whether the financial statements are presented fairly, in all material aspects, in accordance with the applicable financial reporting framework; and indicate any significant or material weaknesses in the internal control. 

    A review provides limited assurance on an organization’s financial statements. During a review, inquiries and analytical procedures present a reasonable basis for expressing limited assurance that no material modifications to the financial statements are necessary; they are in conformity with generally accepted accounting principles. Following a review engagement, the CPA will issue a formal report that includes a conclusion as to whether, based on the review, he is aware of any material modifications that should be made to the financial statements in order for them to be in accordance with the applicable financial reporting framework.

    A compilation provides no assurance on an organization’s financial statements and does not meet the requirements of the standard. 

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    Organizations seeking reaccreditation have completed audits for each intervening year since their last accreditation.
    2
    Practices are basically sound but there is room for improvement; e.g.,
    • The organization undergoing reaccreditation completed an audit or a review of financial statements for the most recent auditable fiscal year; however it did not conduct an audit one for any or all of the intervening years since their last accreditation.
    • The organization completed the audit or review of financial statements; however, it was not completed within eight months of the end of the fiscal year within eight months of the end of the budget year, but the organization implemented procedures to ensure timely completion for future audits.
    3
    Practice requires significant improvement, e.g., 
    • The audit for the most recent auditable year is scheduled but has not been completed;
    • The most recent audit was completed more than eight months after the end of the fiscal year; or
    • A financial statement review by an independent CPA has not been completed for the most recent fiscal year.
    4
    An audit for the most recent auditable year not been completed nor has one been scheduled.
    • A financial statement review by an independent CPA has not been completed for the most recent fiscal year nor has it been scheduled.

  • CA-AFM 8.02

    The organization acts upon recommendations in the management letter, if any.

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement; e.g., 
    • The organization is actively working to address recommendations.
    • The board of directors and/or the owner and/or financial officer take action or have an action plan in place based on the findings of the financial statement review, as needed.
    3
    Practice requires significant improvement; e.g.,
    • Some of the recommendations in the management letter have been acted on, but others have not been addressed.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all; e.g.,
    • No steps have been taken to act on serious recommendations contained in the management letter.
    • Some of the recommendations in the findings of the financial statement review have been acted on but others have not been addressed by the board of directors and/or the owner and/or the financial officer.

  • CA-AFM 8.03

    The owner and financial officers confirm in writing that, to the best of their knowledge, financial statements are accurate and fairly represent the financial condition and operations of the organization.  

    Rating Indicators
    1
    The organization's practices reflect full implementation of the standard.
    2
    Practices are basically sound but there is room for improvement.
    3
    Practice requires significant improvement.
    4
    Implementation of the standard is minimal or there is no evidence of implementation at all.
Copyright © 2017 Council on Accreditation. All Rights Reserved.  Privacy Policy and Terms of Use