2003 annual report.CALCPA TREASURER'S REPORT I am delighted to present you with CalCPA's financial operating results for the year ended April 30, 2003. We are continuing a four-year trend of improving operating results. Membership is increasing and we continue to support and improve programs at the chapter and committee levels. During this year of tremendous change for the profession, CalCPA's major achievements have included instituting a revised investment policy; revamping our employee retirement benefits; finalizing our strategic plan document; beginning implementation of the strategic plan; continuing to advocate advocate: see attorney. on behalf of our members and the profession in Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. ; and stepping up our image campaign to promote our profession--all of this and more has been accomplished well within budget. We increased net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. by $713,000, an increase of nearly 44 percent over 2002, primarily through fiscal prudence on the part of the CalCPA management team and strategic realignment re·a·lign tr.v. re·a·ligned, re·a·lign·ing, re·a·ligns 1. To put back into proper order or alignment. 2. To make new groupings of or working arrangements between. of staff in response to the current economic environment. Our net assets of more than $4.9 million represent approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 83 percent of our net assets goal, giving us sufficient reserves to be prepared for the unexpected in coming years and to begin planning for the future purchase of our own building. In the words of CalCPA CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Susan SUSAN Smallest Univalue Segment Assimilating Nucleus SUSAN Sub Saharan African Network SUSAN Smart Ultrasonic System for Aircraft NDE Waters, "Our team is at fighting weight," and I would say that we are poised and ready for another financially successful and productive year! Jessie Powell Powell See Osceola. , CPA (Computer Press Association, Landing, NJ) An earlier membership organization founded in 1983 that promoted excellence in computer journalism. Its annual awards honored outstanding examples in print, broadcast and electronic media. The CPA disbanded in 2000. FOUNDATION TREASURER'S REPORT I am pleased to present the FY 2002-03 financial report for the California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). CPA Education Foundation. The Foundation continues to be a highly effective continuing professional education resource for California CPAs and other professionals provided at a reasonable cost. The Foundation exceeded last year's gross margin by almost 5 percent, which was remarkable because last year was a record for revenue--exceeding $10 million. It experienced almost a 5 percent decline in VP revenue, which was partially offset by an increase in coupon A certificate evidencing the obligation to pay an installment of interest or a dividend that must be cut and presented to its issuer for payment when it is due. Coupons are usually attached to a document, such as a promissory note, bond, share of stock, or a bearer book sales. Last year it received $130,000 in royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. revenue from its PETH PETH People for the Ethical Treatment of Humans PETH Pci Ethernet product from the AICPA AICPA See American Institute of Certified Public Accountants (AICPA). . The AICPA launched its own product this year, however, which reduced the Foundation's royalty income by 50 percent. The Foundation is making efforts to remedy The manner in which a right is enforced or satisfied by a court when some harm or injury, recognized by society as a wrongful act, is inflicted upon an individual. The law of remedies is concerned with the character and extent of relief to which an individual who has brought that situation. On the other hand, the Foundation's new source of revenue for sponsorship resulted in fees in the sum of $60,000. Spending was significantly reduced due to a number of factors. Specifically, last year, the Foundation incurred substantial costs associated with modifications and customizations of the new database system, AM4, which were dramatically reduced this year. Moreover, the Foundation was able to negotiate better rates with hotels regarding facility and audio/visual costs due to the sluggish economy Sluggish Economy A state in the economy in which the growth is slow, flat or declining. The term can refer to the economy as a whole or a component of the economy, such as weak housing starts. . Another factor affecting expenses last fiscal year was the purchase of Western Schools, for which the Foundation incurred one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. costs for legal fees and promotional expenses Noun 1. promotional expense - the cost of promoting a product business expense, trade expense - ordinary and necessary expenses incurred in a taxpayer's business or trade , whereas this year its only expenses were for new materials. The Foundation introduced new self-study self-stud·y n. 1. Study or examination of oneself. 2. A form of study in which one is to a large extent responsible for one's own instruction. materials created by its instructors, which has offset a loss in Western Schools sales. The next step will be to make the same material available on the Foundation website. Although the Foundation's operations were successful, unfortunately the stock market decline resulted in a realized loss Realized Loss A loss recognized when assets are sold for a price lower than the original purchase price. Notes: A portion of the realized loss may be applied against a capital gain or realized profit to reduce taxes. suffered in the amount of $280,000, compared with a realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. of $162,000 last year. The trend for the future is demonstrated by the Foundation suffering an unrealized loss Unrealized Loss A loss that results from holding onto an asset rather than cashing it in and officially taking the loss. Notes: Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss. this year in the stun of $50,000 compared with the unrealized loss last year of $412,000. In summary, the Foundation continues to be a viably strong organization providing quality service, which it contemplates will continue to qualify it as the foremost CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment accounting provider in the country. Elliott Elliott may refer to: possessing the best body in the whole world. like the hottest, sexiest body ever! the feeling of his skin kills me and sends me straight to heaven. H. Kajan, CPA Gilbert Gil·bert , Walter Born 1932. American biologist. He shared a 1980 Nobel Prize for developing methods of mapping the structure and function of DNA. Associates, Inc. CPAs and Advisors Council The California Society of Certified Public Accountants Certified Public Accountant (CPA) An accountant who has met certain standards, including experience, age, and licensing, and passed exams in a particular state. Board of Trustees board of trustees Politics The posse of thugs who oversee an institution's administration. See Board of directors. California Certified Public Accountants Education Foundation Redwood City, California Redwood City is a suburb located on the San Francisco Peninsula in the San Francisco Bay Area of California. Redwood City is the county seat of San Mateo County. As of the 2005 census, the city had a total population of 76,000. We have audited the accompanying ac·com·pa·ny v. ac·com·pa·nied, ac·com·pa·ny·ing, ac·com·pa·nies v.tr. 1. To be or go with as a companion. 2. consolidating statements of financial position of The California Society of Certified Public Accountants (Society) and California Certified Public Accountants Educati Foundation (Foundation) as of April 30, 2003 and 2002, and the related statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the management of the Society and the Foundation. Our responsibility is to express a opinion on these financial statements based on our audits. We conducted our audits in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with auditing standards generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. . Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement mis·state tr.v. mis·stat·ed, mis·stat·ing, mis·states To state wrongly or falsely. mis·state  ment n. . An
audit includes examining on a test basis, evidence supporting the
amounts and disclosures in the financial statements. An audit a includes
assessing the accounting principles used and significant estimates made
by management, as w as evaluating the overall financial statement
presentation. We believe that our audits provide a reasona basis for our
opinion.In our opinion, the financial statements referred to above present fairly, in all material respects, the individual and consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: financial positions of The California Society of Certified Public Accountant and California Certified Public Accountants Education Foundation as of April 30, 2003 and 2002, and changes in their net assets and their cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America UNITED STATES OF AMERICA. The name of this country. The United States, now thirty-one in number, are Alabama, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Mississippi, Missouri, New Hampshire, . GILBERT ASSOCIATES, INC. June June: see month. 6, 2003 NOTES TO FINANCIAL STATEMENTS (dollars in thousands) 1. ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES The California Society of Certified Public Accountants (CalCPA) is a nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. incorporated membership organization whose purpose is to advance the profession of accountancy in the State of California. CalCPA provides its members with general and technical resources through its chapters and committees. California Certified Public Accountants Education Foundation (Foundation) is a nonprofit public benefit corporation organized to provide continuing professional education to Certified Public Accountants (CPAs) and other interested parties. Revenues for both CalCPA and the Foundation are derived de·rive v. de·rived, de·riv·ing, de·rives v.tr. 1. To obtain or receive from a source. 2. primarily from CPAs in California. CalCPA and the Foundation share some administrative functions. Such costs are incurred by CalCPA, which charges the Foundation for its estimated share. PRINCIPLES OF CONSOLIDATION The Board of Trustees of the Foundation consists of members of CalCPA who are elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. by the governing gov·ern v. gov·erned, gov·ern·ing, gov·erns v.tr. 1. To make and administer the public policy and affairs of; exercise sovereign authority in. 2. Council of CalCPA. Because of common control, the accompanying financial statements reflect the consolidation of CalCPA and the Foundation. Material transactions between the entities have been eliminated in consolidation. BASIS OF PRESENTATION The financial statements are presented in conformity with Statement of Financial Accounting Standards (SFAS SFAS Statement of Financial Accounting Standards SFAS Special Forces Assessment and Selection SFAS Student Financial Aid Services SFAS Sport Fishing Association of Singapore SFAS Safety Features Actuation System SFAS Statewide Fixed Assets System ) No. 117, Financial Statements of Not-For-Profit Not-for-profit An organization established for charitable, humanitarian, or educational purposes that is exempt from some taxes and in which no one in profits or losses. Organizations. REVENUE RECOGNITION Membership dues are recognized as revenue in the membership period. Peer review registration fees are recognized over the calendar year. Peer review processing and review fees are recognized as review engagements are completed. Revenues from professional education programs are recognized in the periods the programs are held. Revenues collected in advance are deferred until earned. CASH AND EQUIVALENTS For financial statement purposes, CalCPA and the Foundation consider all investments with a maturity at purchase of three months or less to be cash equivalents. ADVERTISING COSTS Direct response advertising consists primarily of catalogs and brochures for educational seminars and other events. Direct response advertising costs are capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. as other current assets Other Current Assets A balance sheet item that includes the value of non-cash assets due within one year. Notes: Examples are things like prepaid expenses and accounts receivable. and charged to expense in the period the events occur. Other advertising costs are expensed a,s incurred. INVESTMENTS Investments are stated at market value. PROPERTY AND EQUIPMENT Property and equipment are stated at cost and depreciated Depreciated may refer to:
straight-line method of depreciation over estimated useful lives of 3 to 10 years. INTANGIBLE ASSETS Intangible Asset An asset that is not physical in nature. Notes: Examples are things like copyrights, patents, intellectual property, and goodwill. These are the opposite of tangible assets. Intangible assets represent the cost of trademarks and goodwill associated with the Foundation's acquisition of the Western Schools professional education materials. The Foundation is phasing out the Western Schools trade name over a three-year period ending April 30, 2005; accordingly, the Foundation is charging the intangible assets to expense over that period. DEFERRED LEASE COSTS Rent expense is recognized on a straight-line straight-line adj. 1. Lying in a straight line. 2. Relating to a device whose linkage produces or copies motion in straight lines. 3. basis over the lives of the leases. Deferred lease costs represent rent expense recognized in excess of rental RENTAL. A roll or list of the rents of an estate containing the description of the lands let, the names of the tenants, and other particulars connected with such estate. This is the same as rent roll, from which it is said to be corrupted. payments made. DONATED do·nate v. do·nat·ed, do·nat·ing, do·nates v.tr. To present as a gift to a fund or cause; contribute. v.intr. To make a contribution to a fund or cause. SERVICES Members of CalCPA donate their time to various activities of CalCPA and the Foundation, including the leadership of the organizations, committees, chapters and member events. The value of this donated time is not reflected in the accompanying financial statements since it does not meet the criteria criteria (krītēr´ē  ),n. for recognition. INCOME TAXES CalCPA and the Foundation are exempt from income taxes under Internal Revenue Code The Internal Revenue Code is the body of law that codifies all federal tax laws, including income, estate, gift, excise, alcohol, tobacco, and employment taxes. These laws constitute title 26 of the U.S. Code (26 U.S.C.A. § 1 et seq. (IRC (Internet Relay Chat) Computer conferencing on the Internet. There are hundreds of IRC channels on numerous subjects that are hosted on IRC servers around the world. After joining a channel, your messages are broadcast to everyone listening to that channel. ) Sections 501(c)(6) and 501(c)(3), respectively, and related California code sections. However, the organizations are subject to income taxes from activities unrelated to their tax-exempt tax-ex·empt adj. 1. Not subject to taxation, as the capital or income of a philanthropic organization. 2. Producing interest that is exempt from income tax: tax-exempt bonds. n. purposes. The Foundation is considered a publicly supported organization. FUNCTIONAL EXPENSES The costs of providing the program services and supporting services have been summarized on a functional basis in the statements of activities and of functional expenses. Accordingly, certain costs have been allocated among the program services and supporting services based on estimates of employees' time incurred and on usage of resources. USE OF ESTIMATES The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts mid disclosures. Accordingly, actual results could differ from those estimates. RECLASSIFICATIONS Certain 2002 amounts have been reclassified to conform with the 2003 financial statement presentation. 2. RELATED PARTIES CalCPA shares certain administrative functions with CAMICO Mutual Insurance Company (CAMICO) and Group Insurance Trust (GIT). CalCPA charges GIT and is charged by CAMICO for estimated shares of related expenses. CalCPA also sells services to CAMICO and GIT. CAMICO provides professional liability insurance for CalCPA members and is endorsed by CalCPA. Since CAMICO is not under common control with CalCPA and the Foundation, the financial statements do not reflect consolidation of CAMICO. Balances of $7 and $49 due from CAMICO as of April 30, 2003 and 2002, respectively, are included in CalCPA's other accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying . Services purchased by CAMICO, net of expenses allocated from CAMICO, totaled $156 for 2003 and $100 for 2002. GIT is a multiple employer welfare arrangement formed to provide health and welfare insurance plans to CalCPA members at favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. group rates. CalCPA's Council exerts control over the nomination NOMINATION, This word has several significations. 1. An appointment; as, I nominate A B, executor of this my last will. 2. A proposition; the word nominate is used in this sense in the constitution of the United States, art. 2, s. process for the Board of Trustees of GIT. However, since regulatory agencies regulatory agency Independent government commission charged by the legislature with setting and enforcing standards for specific industries in the private sector. The concept was invented by the U.S. limit CalCPA's control of GIT's activities, the financial statements do not reflect consolidation of GIT. A balance of $13 due to GIT is included in CalCPA's accounts payable as of April 30, 2003. A balance of $41 due from GIT is included in CalCPA's other accounts receivable as of April 30, 2002. Services purchased and expenses allocated for GIT totaled $255 for 2003 and $211 for 2002. 3. PEER REVIEW PROGRAM The financial statements of CalCPA include the operations of the Peer Review Program, which administers the American Institute of Certified Public Accountants With over 330,525 CPA members (in August 2006), the American Institute of Certified Public Accountants (AICPA) is the largest professional organization of Certified Public Accountants (CPAs) in the United States of America. Peer Review Program in California, Arizona Arizona (âr'əzō`nə), state in the southwestern United States. It is bordered by Utah (N), New Mexico (E), Mexico (S), and, across the Colorado R., Nevada and California (W). and Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States . Peer review expenses are included in other activities in the statements of activities and of functional expenses. Revenues, expenses and net assets for the division ewe summarized as follows:
2003 2002
Revenues:
Registration fees $ 738 $ 746
Processing and review fees 175 193
Total peer review fees 913 939
Interest income 10 23
Other income 13 13
Total revenue 936 975
Expenses:
Reviewer costs and
operating expenses 904 977
Increase (decrease) in net assets 32 (2)
Net assets, beginning of year 460 462
Net assets, end of year $ 492 $ 460
4. INVESTMENTS
Investments consist of the following:
CalCPA Foundation Consolidated
2003
U.S. government
obligations $ 911 911
GNMA mortgage pool 194 194
Other debt securities $ 2,080 925 3,005
EXuity securities 4,091 3,031 7,122
Total $ 6,171 5,061 11,232
2002
U.S. government
obligations 555 950 1,505
GNMA mortgage pool 124 314 438
Other debt securities 419 867 1,286
Equity securities 1,716 3,303 5,019
Total $ 2,814 $ 5,434 $ 8,248
Investment income (loss) consists of the following:
CalCPA Foundation Consolidated
2003
Interest and dividends $ 209 $ 198 $ 407
Net realized and
unrealized losses (158) (330) (488)
Investment income 51 (132) (81)
Less investment
expenses (35) (71) (106)
Investment
income (loss), net $ 16 $ (203) $ (187)
2002
Interest and dividends 270 $ 239 $ 509
Net realized and
unrealized losses (161) (239) (400)
Investment income 101 109
Less it ivestment
expenses (50) (107) (157)
Investment
income (loss), net $ 59 $ (107) $ (48)
5. PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
CalCPA Foundation Consolidated
2003
Equipment $ 982 $ 609 $ 1,591
Software 665 661 1,326
Furniture 263 131 394
Leasehold improvements 656 94 750
Total 2,566 1,495 4,061
Less accumulated
depreciation and
amortization (1,884) (913) (2,797)
Property and
equipment, net 682 582 1,264
2002
Equipment $ 998 844 1,842
Software 647 570 1,217
Furniture 257 121 378
Leasehold improvements 656 94 750
Total 2,558 1,629 4,187
Less accumulated
depreciation and
amortization (1,633) (900) (2,533)
Property and
equipment, net $ 925 $ 729 $ 1,654
6. DEFERRED REVENUES
Deferred revenues consist of the following:
CalCPA: 2003 2002
Dues $ 3,396 $ 3,676
Peer review registration fees 593 580
Advertising 143 174
Annual meeting fees 11 11
CalCPA total 4,143 4,441
Foundation:
Registration fees, including
Value Pricin? VP ropram 1,793 1,455
Consolidated $ 5,936 $ 5,896
7. OPERATING LEASE Operating Lease A lease contract that allows the use of an asset, but does not convey rights similar to ownership of the asset. Notes: An operating lease is not capitalized it is accounted for as a rental expense. OBLIGATIONS CalCPA and CAMICO lease office space for their corporate headquarters under non-cancelable operating leases expiring ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. in July July: see month. 2010. GIT and the Foundation sublease sublease n. the lease of all or a portion of premises by a tenant who has leased the premises from the owner. A sublease may be prohibited by the original lease, or require written permission from the owner. a portion of the office space for their corporate headquarters under non-cancelable sublease agreements with CalCPA and CAMICO, respectively, also expiring in July 2010. Sublease payments are based on square footage occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. . CalCPA also leases office space in Sacramento and Glendale Glendale. 1 City (1990 pop. 148,134), Maricopa co., S central Ariz., adjacent to Phoenix; inc. 1910. It is located in a rich agricultural region irrigated by the Salt River project. Glendale has become one of the fastest-growing U.S. under non-cancelable operating leases expiring in February February: see month. 2008 and November November: see month. 2008, respectively. Future minimum lease payments Rental payments over the lease term including the amount of any bargain purchase option, premium and any guaranteed residual value and excluding any rental relating to costs to be met by the lessor and any contingent rentals. under these agreements, net of minimum sublease receipts from GIT, are as follows:
Year endive April 30: CalCPA Foundation Consolidated
2004 $ 617 $ 339 $ 956
2005 650 352 1,002
2006 674 367 1,041
2007 694 381 1,075
2008 680 396 1,076
Thereafter 1,123 949 2,072
Total $ 4,438 $ 2,784 $ 7,222
Rent expense, recorded net of the portion of CalCPAs lease
paid by GIT, is as follows:
2003 2002
CalCPA $ 640 $ 653
Foundation 365 361
Consolidated $ 1,005 $ 1,014
8. RETIREMENT PLANS CalCPA sponsored a defined benefit pension plan for substantially all full-time full-time adj. Employed for or involving a standard number of hours of working time: a full-time administrative assistant. full employees of CalCPA and the Foundation. Effective April 30, 2003, the defined benefit pension plan has been frozen, and is therefore closed to farther benefit accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. or new participants. CalCPA's funding policy is to contribute annually an amount not less than the ERISA See Employee Retirement Income Security Act. ERISA See Employee Retirement Income Security Act (ERISA). minimum funding requirement The Minimum Funding Requirement (MFR) was a part of United Kingdom legislation in the Pensions Act 1995, and was introduced on 6 April 1997. The Pensions Act 2004 abolishes the MFR replaces it with new "scheme funding objective"; this came into force on 30 December, 2005 for all and not more than the amount that would be deductible That which may be taken away or subtracted. In taxation, an item that may be subtracted from gross income or adjusted gross income in determining taxable income (e.g., interest expenses, charitable contributions, certain taxes). for federal income taxes. The following information is based on computations by the plan actuary actuary One who calculates insurance risks and premiums. Actuaries compute the probability of the occurrence of such events as birth, marriage, illness, accidents, and death. :
2003 2002
Net periodic pension expense:
CalCPA $ 435 $ 278
Foundation 148 109
Total $ 583 $ 387
Employer contributions $ 626 $ 896
Benefits paid $ 82 $ 85
The following weighted average assumptions were
used in the actuarial computations:
2003 2002
Discount rate 6.00% 7.00%
Expected long-term rate
of return on plan assets 8.00% 9.00%
Kate of compensation increase 6.00% 6.00%
The plan's funded status is as follows:
2003 2002
Fair value of plan assets
as of April 30 $ 3,737 3,733
Projected benefit obligation
as of April 30 (5,016) (6,022)
Funded status (1,879) (2,284)
Accrued pension liability
included in the statements
of financial position (1,630) (1,652)
CalCPA and the Foundation sponsor a defined contribution plan Defined contribution plan A pension plan whose sponsor is responsible only for making specified contributions into the plan on behalf of qualifying participants. Related: Defined benefit plan under IRC Section 401(k). MI employees at least 21 years of age who have completed one year of service are eligible to participate. Effective May 1, 2003, CalCPA and the Foundation have enhanced the plan and will make matching contributions Matching Contribution A type of contribution an employer chooses to make to his or her employee's employer-sponsored retirement plan. The contribution is based on elective deferral contributions made by the employee. up to 4% of salary. In addition, all employees, regardless of participation, will earn an employer contribution equal to 3% of salary. There were no employer contributions for 2003 or 2002. All employer contributions vest at a rate of 20% per year. CalCPA maintains a deferred compensation plan under IRC Section 457. Deferred compensation assets consist of investments reserved for future payment of deferred compensation liabilities. 9. ADVERTISING COSTS The Foundation's direct response advertising consists primarily of catalogs and brochures for events. Other current assets include capitalized advertising costs of $135 and $1.59 as of April 30, 2003 and 2002, respectively. Advertising costs charged to expense are as follows:
2003 2002
Society $ 190 114
Foundation 541 662
Consolidated $ 731 $ 776
10. NET ASSETS As of April 30, 2003 and 2002, the net assets of the Foundation include approximately $481 and $411, respectively, that is temporarily restricted for scholarships by CalCPA chapters. Except for this balance, the net assets of CalCPA and the Foundation are unrestricted. 11. CONCENTRATION OF CREDIT RISK CalCPA and the Foundation maintain a majority of their cash in money market accounts that arc not federally insured The person who obtains or is otherwise covered by insurance on his or her health, life, or property. The insured in a policy is not limited to the insured named in the policy but applies to anyone who is insured under the policy. insured n. and in bank deposit accounts that,, at times, may exceed federally insured limits. The organizations have not experienced any losses in such accounts. Management believes the organizations are not exposed to any significant credit risk related to cash.
CONSOLIDATING STATEMENTS OF FINANCIAL POSITION
The California Society of Certified Public Accountants
California Certified Public Accountants Education Foundation
April 30, 2003 and 2002
(dollars in thousands)
CalCPA Foundation
2003 2002 2003 2002
ASSETS
Current Assets:
Cash and Equivalents $ 4,048 $ 6,587 $ 1,349 $ 224
Trade Receivables, Net 175 185 165 193
Other Accounts Receivable 25 140 74 43
Due From (To) Affiliate 86 227 -86 -227
Other Current Assets 379 468 426 516
Total Current Assets 4,713 7,607 1,928 749
Investments 6,171 2,814 5,061 5,434
Property and Equipment, Net 682 925 582 729
Intangible Assets 75 106
Deferred Compensation Assets 255 295
TOTAL ASSETS $ 11,821 $ 11,641 $ 7,646 $ 7,018
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts Payable $ 429 $ 555 $ 242 $ 110
Accrued Expenses 284 354 365 318
Deferred Revenues 4,143 4,441 1,793 1,455
Deferred Lease Costs,
Current 42 42
Total Current
Liabilities 4,898 5,392 2,400 1,883
Deterred Lease Costs, Net 429 419 123 88
Accrued Pension Liability 1,275 1,284 355 368
Deferred Compensation
Liability 255 295
TOTAL LIABILITIES 6,857 7,390 2,878 2,339
NET ASSETS 4,964 4,251 4,768 4,679
TOTAL LIABILITIES
AND NET ASSETS $ 11,821 $ 11,641 $ 7,646 $ 7,018
Consolidated
2003 2002
ASSETS
Current Assets:
Cash and Equivalents $ 5,397 $ 6,811
Trade Receivables, Net 340 378
Other Accounts Receivable 99 183
Due From (To) Affiliate
Other Current Assets 805 984
Total Current Assets 6,641 8,356
Investments 11,232 8,248
Property and Equipment, Net 1,264 1,654
Intangible Assets 75 106
Deferred Compensation Assets 255 295
TOTAL ASSETS $ 19,467 $ 18,659
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts Payable $ 671 $ 665
Accrued Expenses 649 672
Deferred Revenues 5,936 5,896
Deferred Lease Costs,
Current 42 42
Total Current
Liabilities 7,298 7,275
Deterred Lease Costs, Net 552 507
Accrued Pension Liability 1,630 1,652
Deferred Compensation
Liability 255 295
TOTAL LIABILITIES 9,735 9,729
NET ASSETS 9,732 8,930
TOTAL LIABILITIES
AND NET ASSETS $ 19,467 $ 18,659
CONSOLIDATING STATEMENTS OF ACTIVITIES
The California Society of Certified Public Accountants
California Certified Public Accountants Education Foundation
Years Ended April 30, 2003 and 2002
(dollars in thousands)
CalCPA Foundation
2003 2002 2003 2002
REVENUES:
Dues $ 7,370 $ 7,240
Registration Fees $ 9,703 $ 9,916
Peer Review Fees 913 939
Member Meetings and Events 769 789
Advertising 803 841
Services To (From) Related
Entities 584 533 (147) (157)
Royalties and Affinity
Programs 106 145 107 218
Investment Income (Loss),
Net 16 59 (203) (107)
Other Income 95 51 141 137
TOTAL REVENUES 10,656 10,597 9,601 10,007
EXPENSES:
Program Services:
Member Events:
Chapters 1,872 1,768
Committees 437 361
Other Activities 1,605 1,682
Other Member Services:
Communications 1,733 1,928
Government Relations 806 873
Professional Education
Programs 8,103 8,856
Total Program Services 6,453 6,612 8,103 8,856
Supporting Services:
Management and General 3,043 3,004 1,315 1,159
Governance 447 484 94 92
TOTAL EXPENSES 9,943 10,100 9,512 10,107
INCREASE (DECREASE) IN NET
ASSETS 713 497 89 (100)
NET ASSETS:
Beginning of Year 4,251 3,754 4,679 4,779
End of Year $ 4,964 $ 4,251 $ 4,768 $ 4,679
Consolidated
2003 2002
REVENUES:
Dues $ 7,370 $ 7,240
Registration Fees 9,703 9,916
Peer Review Fees 913 939
Member Meetings and Events 769 789
Advertising 803 841
Services To (From) Related
Entities 437 376
Royalties and Affinity
Programs 213 363
Investment Income (Loss),
Net (187) (48)
Other Income 236 188
TOTAL REVENUES 20,257 20,604
EXPENSES:
Program Services:
Member Events:
Chapters 1,872 1,768
Committees 437 361
Other Activities 1,605 1,682
Other Member Services:
Communications 1,733 1,928
Government Relations 806 873
Professional Education
Programs 8,103 8,856
Total Program Services 14,556 15,468
Supporting Services:
Management and General 4,358 4,163
Governance 541 576
TOTAL EXPENSES 19,455 20,207
INCREASE (DECREASE) IN NET
ASSETS 802 397
NET ASSETS:
Beginning of Year 8,930 8,533
End of Year $ 9,732 $ 8,930
STATEMENTS OF FUNCTIONAL EXPENSES
The California Society of Certified Public Accountants
Years Ended April 30, 2003 and 2002
(dollars in thousands)
Member Events
Other
2003 Chapters Committees Activities
Personnel $ 626 $ 204 $ 913
Supplies and Office Expenses 174 58 200
Meeting and Event Expenses 796 114 40
Dccupancy 93 30 136
Prinling and Publications 147 19 86
Depreciation and Amortization 36 12 52
Special Projects
Allocated Expenses 178
TOTAL $ 1,872 $ 437 $ 1,605
2002
Personnel $ 556 $ 137 $ 975
Supplies and Office Expenses 231 63 183
Meeting and Event Expenses 671 111 98
Occupancy 92 23 96
Printing and Publications 177 17 100
Depreciation and Amortization 40 10 41
Special Projects 1 1
Allocated Expenses 188
TOTAL $ 1,768 $ 361 $ 1,682
Other Member Services
Government
2003 Communications Relations
Personnel $ 914 $ 592
Supplies and Office Expenses 108 120
Meeting and Event Expenses 10 6
Dccupancy 136 88
Prinling and Publications 324 6
Depreciation and Amortization 52 34
Special Projects 189
Allocated Expenses (40)
TOTAL $ 1,733 $ 806
2002
Personnel $ 967 $ 617
Supplies and Office Expenses 161 106
Meeting and Event Expenses 4 1
Occupancy 160 102
Printing and Publications 456 3
Depreciation and Amortization 69 44
Special Projects 111
Allocated Expenses
TOTAL $ 1,928 $ 873
Supporting Services
Management
and
2003 General Governance Total
Personnel $ 2,021 $ 146 $ 5,416
Supplies and Office Expenses 804 90 1,554
Meeting and Event Expenses 20 152 1,138
Dccupancy 302 22 807
Prinling and Publications 139 12 733
Depreciation and Amortization 113 8 307
Special Projects 11 17 217
Allocated Expenses (367) (229)
TOTAL $ 3,043 $ 447 $ 9,943
2002
Personnel $ 1,981 $ 132 $ 5,365
Supplies and Office Expenses 727 116 1,587
Meeting and Event Expenses 24 162 1,071
Occupancy 328 21 822
Printing and Publications 130 28 911
Depreciation and Amortization 142 9 355
Special Projects 10 16 139
Allocated Expenses (338) (150)
TOTAL $ 3,004 $ 484 $ 10,100
STATEMENTS OF FUNCTIONAL EXPENSES
California Certified Public Accountants Education Foundation
Years Ended April 30, 2003 and 2002
(dollars in thousands)
Professional Management
Education and
2003 Programs General Governance Total
Course and Conference
Expenses $ 5,076 $ 5,076
Personnel 1,616 $ 719 $ 89 2,424
Brochures 541 541
Supplies and Office
Expenses 291 107 398
Occupancy 299 85 384
Depreciation and
Amortization 158 41 199
Other Expenses 122 143 5 270
Allocated Expenses 220 220
Total $ 8,103 $ 1,315 $ 94 $ 9,512
2002
Course and Conference
Expenses $ 5,426 $ 37 $ 5,463
Personnel 1,561 659 $ 72 2,292
Brochures 662 662
Supplies and Office
Expenses 459 87 546
Occupancy 311 75 386
Depreciation and
Amortization 193 50 243
Other Expenses 244 67 20 331
Allocated Expenses 184 184
Total $8,856 $ 1,159 $ 92 $ 10,107
CONSOLIDATING STATEMENTS OF CASH FLOWS
The California Society of Certified Public Accountants
California Certified Public Accountants Education Foundation
Years Ended April 30, 2003 and 2002
(dollars in thousands)
CalCPA Foundation
2003 2002 2003 2002
OPERATING ACTIVITIES:
Increase (Decrease)
in Net Assets $ 713 $ 497 $ 89 $ (100)
Reconciliation to Net
Cash Provided
by Operating Activities:
Net Unrealized Losses
(Gains) on
Investments (56) 155 50 412
Depreciation and
Amortization 307 355 199 243
Loss (Gain) on Disposal
of Property and
Equipment 2 (1)
Phase-Out of Intangible
Assets 31
Changes In:
Trade and Other
Receivables 125 (38) (3) (151)
Due From (To)
Affiliate 141 (141)
Other Current Assets 89 (256) 90 (86)
Accounts Payable (126) 5 132 (130)
Accrued Expenses (70) 86 47 50
Deferred Revenues (298) 616 338 4
Deferred Lease Costs 10 46 35 50
Accrued Pension
Liability (9) (333) (13) (178)
Net Cash Provided by
Operating Activities 826 1,135 853 114
INVESTING ACTIVITIES:
Purchase of Investments (8,661) (859) (780) (4,842)
Proceeds From Sale of
Investments 5,360 760 1,103 3,819
Purchases of Property and
Equipment (64) (202) (51) (139)
Acquisition of Intangible
Assets (106)
Net Cash Provided (Used) by
Investing Activities (3,365) (301) 272 (1,268)
NET INCREASE (DECREASE) IN
CASH AND EQUIVALENTS (2,539) 834 1,125 (1,154)
CASH AND EQUIVALENTS:
Beginning of Year 6,587 5,753 224 1,378
End of Year $ 4,048 $ 6,587 $ 1,349 $ 224
Consolidated
2003 2002
OPERATING ACTIVITIES:
Increase (Decrease)
in Net Assets $ 802 $ 397
Reconciliation to Net
Cash Provided
by Operating Activities:
Net Unrealized Losses
(Gains) on
Investments (6) 567
Depreciation and
Amortization 506 598
Loss (Gain) on Disposal
of Property and
Equipment (1) 2
Phase-Out of Intangible
Assets 31
Changes In:
Trade and Other
Receivables 122 (189)
Due From (To)
Affiliate
Other Current Assets 179 (342)
Accounts Payable 6 (125)
Accrued Expenses (23) 136
Deferred Revenues 40 620
Deferred Lease Costs 45 96
Accrued Pension
Liability (22) (511)
Net Cash Provided by
Operating Activities 1,679 1,249
INVESTING ACTIVITIES:
Purchase of Investments (9,441) (5,701)
Proceeds From Sale of
Investments 6,463 4,579
Purchases of Property and
Equipment (115) (341)
Acquisition of Intangible
Assets (106)
Net Cash Provided (Used) by
Investing Activities (3,093) (1,569)
NET INCREASE (DECREASE) IN
CASH AND EQUIVALENTS (1,414) (320)
CASH AND EQUIVALENTS:
Beginning of Year 6,811 7,131
End of Year $ 5,397 $ 6,811
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