Leech Lake Financial Services Inc

Nonprofit profile at a glance

EIN
462579700
IRS 990 coverage
2016–2023
Forms available
Form 990 2023, Form 990-EZ 2014
Location
Cass Lake, MN, USA
Phone
2183393940
Rating
73
Verdict
SUPPORTED
Rating confidence
Moderate
Sector
Human Service Organizations

Official website

Reported finances

Revenue
$789,469
Expenses
$878,081
Assets
$1,732,951
Liabilities
$1,145,499

Source: IRS Form 990. Selected filing: tax year 2023. Amounts in USD.

Leadership & pay

9 people listed

Executive titles in this filing

  • ROB AITKEN (EXECUTIVE DIRECTOR)

Highest reported compensation

  • ROB AITKEN (EXECUTIVE DIRECTOR): $90,374 total reported compensation
  • PAM SPONG (OPERATIONS & FINANCE MANAGER): $88,705 total reported compensation

Source: IRS Form 990. Selected filing: tax year 2023. Names and roles reflect this filing, not necessarily current officeholders.

Overview

Mission

To promote economic development by providing safe, affordable loans and financial training.

What it reported doing in 2023

The loan programs provided more than 200 loans to individuals and business who normally wouldn't qualify for a conventional loan. The program also provides financial training.

Operating model

Revenue model
Mixed. Its operating money came from several sources; no one source provided a clear majority.
Distribution model
Direct operator. The filing allocates 98% of reported program-service expenses outside its grant, affiliate-payment, and member-benefit lines. This expense classification does not rule out separately announced grant awards.

The verdict

SUPPORTED - The filed numbers largely add up and most voting board members are independent. Some filing-based governance responses are negative or unanswered and expenses are high relative to revenue.

Rating breakdown

  • Financial Efficiency: 57
  • Transparency & Controls: 94
  • Accountability: 77
  • Sustainability: 30
  • Growth: 100

Detailed rating inputs

Financial Efficiency

  • Mission deployment rate: 67%; rating input score 67
  • Program expense ratio: 60.2%; rating input score 60
  • Fundraising efficiency: Limited

Transparency & Controls

  • Consistency checks: 100%; rating input score 100; 63rd percentile among comparable filings
  • Pay-setting controls: Limited
  • Foreign activity oversight: Limited
  • Grant itemization coverage: 100%; rating input score 100; 76th percentile among comparable filings
  • Major donor itemization: Yes; rating input score 100
  • Related-party transparency: Limited

Accountability

  • Independent voting board: 100%; rating input score 100; 63rd percentile among comparable filings
  • Governance controls: 4 of 9 controls in place; rating input score 44
    • Conflict-of-interest policy: Pass
    • Whistleblower policy: Fail
    • Document-retention policy: Fail
    • CEO compensation review process: Fail
    • Other executive compensation review process: Fail
    • Form 990 shared with the board: Pass
    • Board meeting minutes documented: Pass
    • Audit committee oversight: Fail
    • Independent financial-statement audit: Pass

Sustainability

  • Operating margin: -11.2%; rating input score 17; 17th percentile among comparable filings
  • Total-asset coverage ratio: 1.97; rating input score 64; 64th percentile among comparable filings
  • Liabilities to assets ratio: 0.66; rating input score 12; 12th percentile among comparable filings
  • Officer compensation ratio: 20.4%; rating input score 14; 14th percentile among comparable filings

Growth

  • Program expense growth: 9.5% per year; rating input score 100; 62nd percentile among comparable filings
  • Revenue growth: 15.8% per year; rating input score 100; 80th percentile among comparable filings
  • Asset growth: 16.7% per year; rating input score 100; 75th percentile among comparable filings

Details

  • Where the money goes: 67% of revenue deployed · 60.2% of spending went to programs
  • Governance: 7 of 7 board members independent · 4 of 9 filing controls reported
  • Programs: 2 filed program accomplishments · $529K in reported program spending
  • Leadership: top reported pay $90K · 9 people listed
  • Consistency: 30 of 30 current checks pass
  • Schedules: 6 filed schedules · includes major donors and grants
  • Filing history: 7 filing years from 2016 to 2023
  • Contacts: How to reach this organization
  • Money network: 2 filed money-flow records
  • Grant readiness: Federal tax and exclusion status, award history, and grant-maker relationships.
  • People: Everyone the filings name, and which of them the filings identify by more than a name.

Key Signals

Signals prioritize questions for review. They are not findings of misconduct.

  • Moderate — Accountability: Governance controls: 5 of 9 not reported.
  • High — Sustainability: Operating margin scored 17/100.
  • High — Sustainability: Liabilities to assets ratio scored 12/100.
  • High — Sustainability: Officer compensation ratio scored 14/100.