Area Resources for Community and Human Services (ARCHS) once again has important news about its financial and programmatic success as a new year approaches.

The news is especially welcome in the recent climate both locally and nationally of increased public scrutiny shining more light on not-for-profit accountability and transparency practices.

For the past 11 fiscal years (2002-2012) ARCHS’ financial statements have earned unqualified or “clean,” audits from independent auditors.

ARCHS’ FY2012 (July 1, 2011-June 30, 2012) audit was reviewed and approved by ARCHS’ Board of Directors at their December 12, 2012 meeting.

Issuance of an “unqualified opinion” means an auditor, upon review of an organization’s financial statements and accompanying notes, concluded that the financial statements and accompanying notes are presented fairly, conform to generally accepted accounting principles and fairly represent the true financial picture of the organization.

The FY2012 audit also highlighted that ARCHS’ “administrative overhead” costs are only 15 percent, substantially below the national average of 25 percent as calculated by the national United Way and other groups. This means that ARCHS is able to directly allocate at least 85 cents out of every dollar it manages to provide vital education and social service programs with a focus on early childhood, K-12, and family and community education. The remaining 15 cents provide necessary program support services that help manage and evaluate the programs to assure their long-term success.

"The audit opinion is more than an approval of accounting controls and principles. It assures our federal, state, private, and philanthropic funders that ARCHS is responsibly and properly managing, spending, and reporting the funds entrusted to us to serve the region’s most vulnerable residents,” says Wendell E. Kimbrough, ARCHS’ Chief Executive Officer. “Each month, ARCHS’ staff visits each program we fund and support, to provided a real time “audit” of how things are going, and if there are any issues, find ways to make improvements.