Private Organization Accreditation

HeartShare assist individuals with developmental disabilities through education, day, residential and recreation programs, case management, and health services, and provides foster care/adoption services, counseling, after school and energy assistance programs, and programs for people with HIV/AIDS.


Judy Kay, LCSW

Volunteer Roles: Peer Reviewer; Team Leader

In administration for 22 of 24 years at Child Saving Institute, a COA-accredited not-for-profit child welfare agency in Omaha, Nebraska. Retired approximately two years ago, I moved to Tucson, Arizona, where I advocate for children's rights as a Court Appointed Special Advocate (CASA) volunteer to three young children.
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The nonprofit organization’s financial accountability and viability are achieved through the application of sound financial management practices that accord with legal and regulatory requirements.

FIN 1: Governing Body Financial Responsibilities

The organization’s governing body or designated committee of the governing body, as appropriate: 
  1. approves the annual budget and any revisions to the budget; 
  2. reviews quarterly and annual financial statements/summaries provided by management; 
  3. reviews accounting policies and procedures;
  4. reviews recommendations of the organization’s auditors, and management’s response to the recommendations;
  5. annually evaluates the executive director’s management of the organization’s financial affairs; and
  6. reviews and approves the IRS Form 990.

Interpretation: An organization’s governing body is ultimately responsible for the financial health of the organization. Minutes of governing body and its committee meetings should reflect active oversight of the organization’s finances.  
In order to effectively and efficiently fulfill this fiduciary responsibility, governing bodies must regularly review the organization’s finances, and oversee the annual audit. Ideally, among its governing body committees, an organization should have both a finance committee and an audit committee. 
The Finance Committee monitors the organization’s financial status. This includes reviewing monthly financial reports, managing investments, and reviewing and approving the annual budget before it is presented to the governing body for approval. (See GOV 6.05, FIN 4, and FIN 5.) 
The Audit Committee is an independent oversight committee. The audit committee oversees the integrity of the organization’s financial management system and financial reporting, ensures the independence of the annual audit, and that internal controls are in place to prevent or detect financial mismanagement or fraud. Staff members, including the CEO and CFO, cannot sit on the audit committee. (See FIN 6.03)

Rating Indicators
The organization's practices reflect full implementation of the standard.
Practices are basically sound but there is room for improvement; e.g.,
  • Two of the elements are not fully addressed.
Practice requires significant improvement; e.g.,
  • Three elements are not fully addressed or one element is not addressed at all; or
  • An internal control manual is not present, but procedures loosely exist for some of the elements.
Four or more elements are not fully addressed, or at least two elements are not addressed at all.

Table of Evidence

Self-Study Evidence On-Site Evidence On-Site Activities
    • Operating budget for current fiscal year
    • See budget planning procedures (FIN 5) 
    • Governing Body minutes demonstrating financial oversight
    • Interview:
      1. Governing body members
      2. Board treasurer
      3. Audit and Finance committee members
      4. CEO/CFO
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