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LRM

ARCHS and LRM: 10 Years of “Audited” Financial and Program Success

Area Resources for Community and Human Services (ARCHS) begins the new year with important news about its financial and programmatic success and stability. Leveraged Resources Management, Inc. (LRM) is a wholly -owned subsidiary of ARCHS.

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 ten fiscal years (2002-2011) ARCHS’ financial statements have earned unqualified or “clean,” audits from independent auditors.

ARCHS’ FY11 (July 1, 2010-June 30, 2011) audit was reviewed and approved by ARCHS’ Board of Directors at their December 20, 2011 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 FY11 audit also highlighted that ARCHS’ “administrative overhead” costs are only 11.2 percent, substantially below the national average of 25 percent as calculated by the national United Way. This means that ARCHS is able to directly allocate at least 89 cents out of every dollar it manages to provide vital social services with a focus on early childhood, K-12 and family and community education. The remaining 11 cents provide necessary support services that help oversee and monitor the programs and assure their long-term success.

ARCHS' LRM Achieving National Certification

As ARCHS’ Leveraged Resources Management’s (LRM) financial services expand to more nonprofits in St. Louis, so does the trust it has in its relationship with clients to provide the best services possible.

LRM  is taking a big step to strengthen client relationships by voluntarily submitting its financial bookkeeping records for Statement on Auditing Standards (SAS 70)/Statement on Auditing Standards for Attestation Engagements (SSAE 16) certification. LRM has already earned Type 1 certification, and is looking to achieve Type 2 certification within a year.

The achievement done to ensure clients of quality service makes LRM the only finance bookkeeping agency in the St. Louis region with SAS70/SSAE 16 certification.

“This will give reasonable assurance that our clients’ data is secure,” said LRM President Terry Blake. “The data is reviewed quarterly to make sure it and the policies are followed accordingly. Obtaining the SAS 70/SSAE 16 is a completely voluntary measure, yet we believe it is necessary to maintain a healthy relationship between a service provider and their funder.”

LRM achieved Type 1 certification on June 30, 2011. The process to earn Type 2 certification has begun and is expected to be issued within a year. Type 2 certification requires auditors to look at LRM’s records quarterly

ARCHS' LRM Achieving National Certification

As ARCHS’ Leveraged Resources Management’s (LRM) financial services expand to more nonprofits in St. Louis, so does the trust it has in its relationship with clients to provide the best services possible.

LRM  is taking a big step to strengthen client relationships by voluntarily submitting its financial bookkeeping records for Statement on Auditing Standards (SAS 70)/Statement on Auditing Standards for Attestation Engagements (SSAE 16) certification. LRM has already earned Type 1 certification, and is looking to achieve Type 2 certification within a year.

The achievement done to ensure clients of quality service makes LRM the only finance bookkeeping agency in the St. Louis region with SAS70/SSAE 16 certification.

“This will give reasonable assurance that our clients’ data is secure,” said LRM President Terry Blake. “The data is reviewed quarterly to make sure it and the policies are followed accordingly. Obtaining the SAS 70/SSAE 16 is a completely voluntary measure, yet we believe it is necessary to maintain a healthy relationship between a service provider and their funder.”

LRM achieved Type 1 certification on June 30, 2011. The process to earn Type 2 certification has begun and is expected to be issued within a year. Type 2 certification requires auditors to look at LRM’s records quarterly.


“Type 1 certification evaluates the design and effectiveness of a service provider’s controls and then confirms that these controls have been place in operation as of a specific date. Type 2 tests and confirms the effectiveness of the controls,” said Tom Helm, audit supervisor with Huber, Ring, Helm and Co. P.C. “Certification is a greater level of assurance of the services an organization provides. It makes sure that the controls in place are actually effective.”

Throughout certification, the American Institute of Certified Public Accountants (AICPA) will review LRM’S financial service and bookkeeping data quarterly to make sure there is adequate control and safeguards in place for the client’s records. Section 404 of the Sarbanes-Oxley Act of 2002 outlines the strict standards that ensure businesses are fairly handling their clients data, and maintaining a transparent relationship.

LRM provides financial and bookkeeping services for 23 clients. With this many clients the SAS 70 gives LRM credibility over other accounting service providers in the St. Louis area. 

“We are excited to bring this new level of confidence to the table for our clients,” Blake said. “LRM wants to seize every opportunity to display the unyielding dedication to serve clients to the best of our ability. The SAS 70/SSAE 16 undoubtedly will strengthen relationships with clients.”

St. Louis Maternal Child & Family Health Coalition

MCFHC staff at the Standing Up for Mothers and Babies Awards Dinner in late SeptemberLRM SPOTLIGHT: It is difficult to find an organization that has such an important foundation beneath its vision and mission like St. Louis Maternal, Child & Family Health Coalition (MCFHC). The vision of MCFHC is that all women and children in the St. Louis community are healthy by improving birth outcomes, promoting healthy families and building healthy communities through uniting and mobilizing the region.

MCFHC, which is an ARCHS’ Leveraged Resources Management (LRM) client, provides a vehicle for systematically examining and addressing issues related to health care for women and children, in the context of family. The function is to promote and share best practice strategies and to increase coordination and communication between community agencies, and other coalitions and health care systems.

Through this effort, the community can provide better programs and services, particularly for at-risk and low-income women and infants in the St. Louis area.

Crime Victim Advocacy Center

cvacLRM SPOTLIGHT: A sea of flickering candles lit up the steps of the Solders’ Memorial on Chestnut Street on a September 25 evening. It was not a political or one of St. Louis’ many great organizations holding a benefit. Rather, it was the Crime Victim Advocacy Center of St. Louis’ (CVAC) National Day of Remembrance for Murder Victims. It was CVAC’s day to give victim’s a voice, even if it was of a silent tone.

CVAC is the only agency in the region that provides immediate response from a social service base to victims of any crime, whether it is non-violent or violent. The organization provides resources, counseling, advocacy and referral for victims of crime and their families.

“In a best case scenario, we restore victims to safety and health and help stop the exasperation of future issues in general, but in particular to the crime that person experiences,” said Julie Lawson, Executive Director of CVAC.

The need for CVAC’s services is well documented in the region. The fact that in 2009, more than 103,000 serious crimes were reported in the St. Louis area could not be a bigger testament to that statement.