Combined financial statements & independent auditor's report 2004 to 2005.CalCPA TREASURER'S REPORT CalCPA experienced another excellent year. Revenues exceeded budget by $871,000 due to a number of factors: The great success of several chapter events; an increased demand for CPAs, which boosted print and online advertising revenues; and CalCPA Institute scholarship This article is about scholarship as a form of financial aid. For the practice and method of scholars, see scholarly method. For the international education program, see The Scholar Ship. donations, which is a new line item on the statement of activities. Naturally, an increase in revenues is followed by an increase in expenses. However, continued cost-saving methods kept the expenses low. Additionally, higher than estimated attendance contributed to a 58 percent increase in corresponding revenues. This was accomplished without increasing directly related costs other than facilities. Investment income and gains, together with the above-mentioned A`bove´-men`tioned a. 1. Mentioned or named before; aforesaid; mentioned or named earlier in the same text (in written documents). Adj. 1. success with chapter events and the increase in advertising revenues, 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 $915,000. The transfer of scholarship funds to CalCPA Institute from the Education Foundation further enhanced this amount. This transfer, which totaled $768,457, is reflected in the statement of activities under other income. The funds were transferred directly into scholarship investment accounts held by Charles Schwab Charles Schwab can refer to:
[ILLUSTRATION OMITTED] In addition to the investment activities, early renewals contributed to an increase in net assets, which positively affected deferred revenue on the statement of financial position. CalCPA had posted 15,654 early member renewals as of April 30, 2005, an increase of 1,433 members from prior year. CalCPA is committed to maintaining the current level of member service and financial performance. With a break-even budget and practical financial oversight
Oversight may refer to:
FOUNDATION TREASURER'S REPORT I am pleased to report the 2004-05 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 (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. Education Foundation. The Foundation continues to provide outstanding continuing education continuing education: see adult education. continuing education or adult education Any form of learning provided for adults. In the U.S. the University of Wisconsin was the first academic institution to offer such programs (1904). at a reasonable cost to California CPAs and other professionals. The Foundation ended another year with more than $10 million in revenue. The revenue exceeded budget by $203,020. The original forecast was based on 704 events and 47,792 attendees. The final numbers were 696 events and 48,780 attendees. The average attendance per class increased 3 percent. VP attendance dropped by 2 percent from last year, while 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 usage and full-pay attendance increased 1 percent each. Sponsorship income came in lower than expected due to sponsors paying directly for lunches, speakers and materials, offsetting conference expenses. The total value for this bartering amounted to approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $26,000. CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment Products' sales are up 21 percent from budget as interactive study materials are replacing the former 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 at a faster pace than estimated. Our in-house In-house In the context of general equities, keeping an activity within the firm. For example, rather than go to the marketplace and sell a security for a client to anyone, an attempt is made to find a buyer to complete the transaction with the firm. training (formerly Site Licenses) pricing structure has changed to include fees collected for materials and instructors. This change also has affected the expenses. Direct expenses exceeded budget by only $79,097. The main reasons for the increase are the new in-house training pricing structure and the increased CPE Products' activities. The Foundation transitioned custody The care, possession, and control of a thing or person. The retention, inspection, guarding, maintenance, or security of a thing within the immediate care and control of the person to whom it is committed. The detention of a person by lawful authority or process. of scholarship funds this year to CalCPA Institute. As of October October: see month. 2004, when the transition took place, the scholarship funds totaled $768,457. Of that amount, $115,082 was transferred directly from Salomon Noun 1. Salomon - American financier and American Revolutionary War patriot who helped fund the army during the American Revolution (1740?-1785) Haym Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. , where the Orange County Chapter had its own investment account. Net assets decreased mainly due to this scholarship transfer The Foundation continues to be a strong organization providing quality service and value and continually con·tin·u·al adj. 1. Recurring regularly or frequently: the continual need to pay the mortgage. 2. succeeds as one of the leading CPE providers in the country. [ILLUSTRATION OMITTED] INDEPENDENT AUDITOR'S REPORT Auditor's Report Recorded in the annual report, the auditor's report tests to see that a corporation's financial statements comply with GAAP. This is sometimes referred to as the clean opinion. Notes: Most auditor's reports consist of three paragraphs. Board of Directors 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. combining statements of financial position of the California Society of Certified Public Accountants (Society) and California Certified Public Accountants Education Foundation (Foundation) as of April 30, 2005, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the management of the Society and the Foundation. Our responsibility is to express an opinion on these financial statements based on our audit. The financial statements of the Society and the Foundation as of April 30, 2004, were audited by other auditors AUDITORS, practice. Persons lawfully appointed to examine and digest accounts referred to them, take down the evidence in writing, which may be lawfully offered in relation to such accounts, and prepare materials on which a decree or judgment may be made; and to report the whole, together whose report dated June June: see month. 11, 2004, expressed an unqualified opinion Unqualified opinion An independent auditor's opinion that a company's financial statements comply with accepted accounting procedures. Antithesis of qualified opinion. unqualified opinion See clean opinion. on those statements. We conducted our audit 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 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, . 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 also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinion.In our opinion, the 2005 financial statements referred to above present fairly, in all material respects, the combining financial position of the California Society of Certified Public Accountants and California Certified Public Accountants Education Foundation as of April 30, 2005, and the changes in their net assets and their cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America. Macias
Macias or Macías is a Spanish surname found frequently in Europe and Latin America. Within Spain, it can be found in the northwestern regions of Spain, specifically Galicia and Leon. Gini & Company LLP LLP - Lower Layer Protocol Certified Public Accountants Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , CA June 24, 2005 notes to the COMBINING FINANCIAL STATEMENTS (dollars in thousands) 1. ORGANIZATION & SIGNIFICANT ACCOUNTING POLICIES The California Society of Certified Public Accountants (Society) 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. The Society 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 the both the Society 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. The Society and the Foundation share some administrative functions. Such costs are allocated between the entities based on their estimated share. The California CPA Institute (the Institute), a nonprofit organization Nonprofit Organization An association that is given tax-free status. Donations to a non-profit organization are often tax deductible as well. Notes: Examples of non-profit organizations are charities, hospitals and schools. 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. Section 501(c)(3), was formed in October 2004 to account for scholarship activities and financial literacy Financial literacy is the ability of individuals to make appropriate decisions in managing their personal finances. Raising levels of financial literacy is now a focus of government programmes in countries including[1] Australia, Japan, the United States and the UK. program. The activities of the Institute are included in the Society column for the period from October 2004 through April 30, 2005. PRINCIPLES OF COMBINATION The Board of Trustees of the Foundation consists of members of the Society 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 the Society. Because of common control, the accompanying financial statements reflect the combining of the Society and the Foundation. 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. Orgs. REVENUE RECOGNITION Membership dues are recognized as revenue over the membership period. Peer review registration fees are recognized over the calendar year. Peer review processing and review fees are recognized when 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, the Society and the Foundation consider all investments with maturity at purchase of three months or less to be cash equivalents. ALLOWANCE FOR DOUBTFUL ACCOUNTS Allowance for Doubtful Accounts An estimation made by a company and documented on its balance sheet for receivables that might go uncollected. Notes: It is standard practice for a company to have funds set aside for money that cannot be collected. Allowance for doubtful accounts totaled $13 and $15 for the Society at April 30, 2005 and 2004, respectively; and totaled $6 at April 30, 2005 and 2004 for the Foundation. ADVERTISING COSTS Advertising costs consist primarily of catalogs and brochures for educational seminars and other events. 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 events occur. Other advertising costs are expensed as 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 has phased out the Western Schools trade name over a three-year period ending April 30, 2005; accordingly, the Foundation has charged 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. OTHER INCOME Other income includes Institute scholarship income transferred from the Foundation to the Society totaling $768 at April 30, 2005. 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 the Society donate their time to various activities of the Society 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 as a contribution. INCOME TAXES The Society and Foundation are exempt from income taxes under Internal Revenue Code (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 and disclosures. Accordingly, actual results could differ from those estimates. RECLASSIFICATIONS Certain amounts presented in the prior year have been reclassified in order to be consistent with the current year's presentation. Such reclassification Reclassification The process of changing the class of mutual funds once certain requirements have been met. These requirements are generally placed on load mutual funds. Reclassification is not considered to be a taxable event. has no affect on the prior year net assets. 2. RELATED PARTIES The Society shares certain administrative functions with CAMICO Mutual Insurance Company (CAMICO) and Group Insurance Trust (GIT). The Society charges GIT and is charged by CAMICO for estimated shares of related expenses. The Society also sells services to CAMICO and GIT. CAMICO provides professional liability insurance for Society members and is endorsed by the Society. Since CAMICO is not under common control with the Society and the Foundation, the financial statements do not reflect consolidation of CAMICO. Balances of $14 and $16 due from CAMICO as of April 30, 2005 and 2004, respectively, are included in the Society'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 $193 for 2005 and $178 for 2004. GIT is a multiple-employer welfare arrangement formed to provide health and welfare insurance plans to Society members at favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. group rates. The Society'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 the Society's control of GIT's activities, the financial statements do not reflect consolidation of GIT. Balances of $88 and $64 due from GIT are included in the Society's other accounts receivable as of April 30, 2005 and 2004, respectively. Services purchased and expenses allocated for GIT totaled $279 for 2005 and $277 for 2004. 3. PEER REVIEW PROGRAM The financial statements of the Society include the operations of the Peer Review Program, which administers the American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Institute of Certified See certification. Public Accountants' 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 the statements of functional expenses. Revenues, expenses and net assets for the program are summarized as follows:
2005 2004
Revenues:
Registration fees $ 704 $ 725
Processing and review fees 180 202
Total peer review fees 884 927
Interest income 13 6
Other income 12 13
Total revenue 909 946
Expenses:
Reviewer costs and
operating expenses 925 916
Increase (decrease) in net assets (16) 30
Net assets, beginning of year 522 492
Net assets, end of year $ 506 $ 522
4. INVESTMENTS Investments consist of the following:
CalCPA Foundation Combined
2005
Debt securities $ 3,874 1,186 5,060
Equity securities 5,408 4,634 10,042
Total $ 9,282 $ 5,820 $15,102
2004
Debt securities 3,160 2,155 5,315
Equity securities 4,909 3,392 8,301
Total $ 8,069 $ 5,547 $13,616
Investment income (loss) consists of the following:
CalCPA Foundation Combined
2005
Interest and dividends $349 $198 $547
Net realized and 210 132 342
unrealized losses
Investment income 559 330 889
Less investment (27) (33) (60)
expenses
Investment
income (loss), net $ 532 $ 297 $ 829
2004
Interest and dividends $ 247 $ 187 $ 434
Net realized and 1,158 236 1,394
unrealized losses
Investment income 1,405 423 1,828
Less investment
expenses (22) (55) (77)
Investment
income (loss), net $ 1,383 $ 368 $1,751
5. PROPERTY AND EQUIPMENT Property and equipment consist of the following:
CalCPA Foundation Combined
2005
Equipment $ 831 $ 546 $ 1,377
Software 700 510 1,210
Furniture 232 61 293
Leasehold improvements 668 - 668
Total 2,431 1,117 3,548
Less accumulated
depreciation and
amortization (1,711) (874) (2,585)
Property and
equipment, net $ 720 $ 243 $ 963
2004
Equipment $ 1,147 $ 549 $ 1,696
Software 645 497 1,142
Furniture 265 56 321
Leasehold improvements 673 673
Total 2,730 1,102 3,832
Less accumulated
depreciation and
amortization (1,961) (761) (2,722)
Property and
equipment, net $ 769 $ 341 $ 1,110
6. DEFERRED REVENUES Deferred revenues consist of the following:
CalCPA: 2005 2004
Dues $4,878 $ 4,450
Peer review registration fees 550 539
Advertising 167 224
Annual meeting fees 17
CalCPA total 5,595 5,230
Foundation:
Registration fees, including
Value Pricing (VP) program 1,884 1,671
Combined $7,479 $ 6,901
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 The Society 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 the Society 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. . The Society 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. and November November: see month. of 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 ending April 30: CalCPA Foundation Combined 2006 $ 673 $ 374 $ 1,047 2007 692 389 1,081 2008 678 404 1,082 2009 536 420 956 2010 500 436 936 Thereafter 126 111 237 Total $ 3,205 $ 2,134 $ 5,339 Rent expense, recorded net of the portion of CalCPA's lease paid by GIT, is as follows:
2005 2004
CalCPA $ 671 $ 671
Foundation 372 366
Combined $ 1,043 $ 1,037
8. RETIREMENT PLANS Defined Benefit Pension Plan The Society 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 the Society and the Foundation. Effective May 31, 2003, the defined benefit pension plan has been frozen, and is therefore closed to further benefit accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. or new participants. The Society'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 . 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. : Net periodic pension expense: CalCPA $ 97 $ 35 Foundation 30 11 Total $ 127 $ 46 Employer contributions $ 471 $ 927 Benefits paid $ 99 $ 87 The plan's funded status is as follows:
2005 2004
Fair value of plan assets
as of April 30 $ 5,875 $ 5,187
Projected benefit obligation
as of April 30 (6,822) (5,829)
Funded status $ (947) $ (642)
Accrued pension liability
included in the statements
of financial position $ (947) $ (749)
The following weighted average assumptions were used in the actuarial ac·tu·ar·y n. pl. ac·tu·ar·ies A statistician who computes insurance risks and premiums. [Latin computations:
2005 2004
Benefit obligation at April 30:
Discount rate 5.50% 6.25%
Rate of compensation increase N/A N/A
Net periodic pension expenses for years ended April 30:
Discount rate 6.25% 6.00%
Expected long-term rate
of return on plan assets 8.00% 8.00%
Rate of compensation increase N/A N/A
The expected long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. rate of return on plan assets was developed by adding the weighted average historical risk premiums on the asset classes held in the plan to the long-term expectation of inflation. The plan's primary investment objective is a balance among capital appreciation, preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at , and current income, with a goal of attaining an 8% annual rate of return net of fees. To meet this objective, the plan is expected to maintain between 50% and 70% of its assets in marketable Marketable are securities that can be easily converted into cash. Such securities will generally have highly liquid markets allowing the security to be sold at a reasonable price very quickly. equity securities and the remainder mostly in marketable debt securities. The actual and projected assets allocations for the plan are as follows:
Asset category Target Actual Actual
2006 2005 2004
Marketable equity securities 60% 60% 59%
Marketable debt securities 38% 39% 39%
Cash equivalents 2% 1% 2%
Total 100% 100% 100%
Expected employer contributions are $410 for 2006. Expected payments for the next ten years are as follows: 2006 $ 157 2007 222 2008 286 2009 329 2010 350 2011-2015 1,581 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 The Society and the Foundation sponsor a defined contribution plan under IRC Section 401(k). All employees at least 21 years of age who have completed one year of service are eligible to participate. Effective May 1, 2003, the Society and the Foundation enhanced the plan and began making 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, earn an employer contribution equal to 3% of salary. Employer contributions for 2005 totaled $262 for the Society and $123 for the Foundation; and for 2004 totaled $237 for the Society and $125 for the Foundation. All employer contributions vest at a rate of 20% per year. The Society maintains a deferred compensation plan under IRC Section 457. Deferred compensation assets consist of investments reserved for future payment of deferred compensation liabilities. 9. LOSS ON ACCUMULATED ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. DEFINED BENEFIT PENSION OBLIGATIONS The actuarial determined discount rate of 6.25% used to establish the beginning of the year accumulated benefit obligation Accumulated Benefit Obligation (ABO) An approximate measure of the liability of a pension plan in the event of a termination at the date the calculation is performed. Related: Projected benefit obligation. changed to a discount rate of 5.5% used to project the year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. accumulated benefit obligation. This change in actuarial assumption resulted in a loss totaling $239 and $303 for the Society and the Foundation, respectively, which has been reflected in the statement of activities as of April 30, 2005. 10. ADVERTISING COSTS The Foundation's advertising costs consist primarily of catalogs and brochures for events. Other current assets include capitalized advertising costs of $162 and $161 as of April 30, 2005 and 2004, respectively. Advertising costs charged to expense for the years ended April 30, are as follows:
2005 2004
Society $ 345 $ 208
Foundation 448 565
Combined $ 793 $ 773
11. NET ASSETS As of April 30, 2005, the net assets of the Society include approximately $771 that is temporarily restricted for scholarships. As of April 30, 2004, the net assets of the Foundation include scholarships of approximately $621. Temporarily restricted net assets increased by $771 for the Society and decreased by $621 for the Foundation in 2005. Except for this balance, the net assets of the Society and the Foundation are unrestricted. The Society has designated $2,000 of its net assets to a building fund as of April 30, 2005 and 2004. The changes in net assets for the year ended April 30, 2005 are as follows:
CalCPA Foundation
Beginning balance $ 7,224 $ 5,249
Institute scholarships transfer 768 (768)
Changes in net assets before
scholarships transfer $ 677 $ 274
Ending balance $ 8,669 $ 4,728
12. CONCENTRATION OF CREDIT RISK The Society and the Foundation maintain a majority of their cash in money market accounts that are 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.
COMBINING STATEMENTS OF FINANCIAL POSITION
The California Society of Certified Public Accountants California
Certified Public Accountants Education Foundation
April 30, 2005 and 2004
(dollars in thousands)
CalCPA Foundation
2005 2004 2005 2004
ASSETS
Current Assets:
Cash and Equivalents $ 5,523 $ 4,828 $ 1,083 $ 1,174
Trade Receivables, Net 175 158 112 102
Other Accounts Receivable 121 131 6 5
Due From (To) Affiliate 61 58 (61) (58)
Other Current Assets 323 393 441 485
Total Current Assets 6,203 5,568 1,581 1,708
Investments 9,282 8,069 5,820 5,547
Property and Equipment, Net 720 769 243 341
Intangible Assets 50
Deferred Compensation Assets 341 319
TOTAL ASSETS $ 16,546 $ 14,725 $ 7,644 $ 7,646
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts Payable $ 498 $ 433 $ 72 $ 204
Accrued Expenses 361 369 487 299
Deferred Revenues 5,595 5,230 1,884 1,671
Deferred Lease Costs, Current 51 42
Total Current Liabilities 6,505 6,074 2,443 2,174
Deferred Lease Costs, Net 401 436 156 146
Accrued Pension Liability 630 672 317 77
Deferred Compensation Liability 341 319
TOTAL LIABILITIES 7,877 7,501 2,916 2,397
NET ASSETS
Unrestricted 7,898 7,224 4,728 4,628
Temporarily restricted 771 621
TOTAL NET ASSETS 8,669 7,224 4,728 5,249
TOTAL LIABILITIES AND NET ASSETS $ 16,546 $ 14,725 $ 7,644 $ 7,646
Combined
2005 2004
ASSETS
Current Assets:
Cash and Equivalents $ 6,606 $ 6,002
Trade Receivables, Net 287 260
Other Accounts Receivable 127 136
Due From (To) Affiliate
Other Current Assets 764 878
Total Current Assets 7,784 7,276
Investments 15,102 13,616
Property and Equipment, Net 963 1,110
Intangible Assets 50
Deferred Compensation Assets 341 319
TOTAL ASSETS $ 24,190 $ 22,371
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts Payable $ 570 $ 637
Accrued Expenses 848 668
Deferred Revenues 7,479 6,901
Deferred Lease Costs, Current 51 42
Total Current Liabilities 8,948 8,248
Deferred Lease Costs, Net 557 582
Accrued Pension Liability 947 749
Deferred Compensation Liability 341 319
TOTAL LIABILITIES 10,793 9,898
NET ASSETS
Unrestricted 12,626 11,852
Temporarily restricted 771 621
TOTAL NET ASSETS 13,397 12,473
TOTAL LIABILITIES AND NET ASSETS $ 24,190 $ 22,371
COMBINING STATEMENTS OF ACTIVITIES
The California Society of Certified Public Accountants California
Certified Public Accountants Education Foundation
Years Ended April 30, 2005 and 2004
(dollars in thousands)
CalCPA Foundation
2005 2004 2005 2004
OPERATING REVENUES:
Dues $ 7,476 $ 7,385
Registration Fees $ 9,984 $ 10,156
Peer Review Fees 884 927
Member Meetings and Events 965 910
Financial Literacy and 259 348
Scholarships
Advertising 1,025 829
Services To (From) Related 614 613 (151) (151)
Entities
Royalties and Affinity Programs 96 106 71 87
Investment Income (Loss), Net 532 1,383 297 368
Other Income 875 51 119 108
TOTAL REVENUES 12,726 12,204 10,320 10,916
OPERATING EXPENSES:
Program Services:
Member Events:
Chapters 2,126 2,037
Committees 446 422
Other Activities 1,705 1,635
Other Member Services:
Communications 1,930 1,709
Government Relations 819 818
Professional Education Programs 195 9,242 8,779
Total Program Services 7,221 6,621 9,242 8,779
Supporting Services:
Management and General 3,252 2,722 1,190 1,547
Governance 569 601 106 109
TOTAL EXPENSES 11,042 9,944 10,538 10,435
CHANGE IN OPERATING NET ASSETS 1,684 2,260 (218) 481
NONOPERATING EXPENSE
Loss on accumulated defined
benefit pension obligation (239) (303)
CHANGE IN NET ASSETS 1,445 2,260 (521) 481
NET ASSETS:
Beginning of Year 7,224 4,964 5,249 4,768
End of Year $ 8,669 $ 7,224 $4,728 $ 5,249
Combined
2005 2004
OPERATING REVENUES:
Dues $ 7,476 $ 7,385
Registration Fees 9,984 10,156
Peer Review Fees 884 927
Member Meetings and Events 965 910
Financial Literacy and 259 348
Scholarships
Advertising 1,025 829
Services To (From) Related 463 462
Entities
Royalties and Affinity Programs 167 193
Investment Income (Loss), Net 829 1,751
Other Income 994 159
TOTAL REVENUES 23,046 23,120
OPERATING EXPENSES:
Program Services:
Member Events:
Chapters 2,126 2,037
Committees 446 422
Other Activities 1,705 1,635
Other Member Services:
Communications 1,930 1,709
Government Relations 819 818
Professional Education Programs 9,437 8,779
Total Program Services 16,463 15,400
Supporting Services:
Management and General 4,442 4,269
Governance 675 710
TOTAL EXPENSES 21,580 20,379
CHANGE IN OPERATING NET ASSETS 1,466 2,741
NONOPERATING EXPENSE
Loss on accumulated defined
benefit pension obligation (542)
CHANGE IN NET ASSETS 924 2,741
NET ASSETS:
Beginning of Year 12,473 9,732
End of Year $ 13,397 $ 12,473
STATEMENTS OF FUNCTIONAL EXPENSES
The California Society of Certified Public Accountants
Years Ended April 30, 2005 and 2004
(dollars in thousands)
Member Events
Other
2005 Chapters Committees Activities
Personnel $ 648 $ 186 $ 983
Supplies and Office Expenses 209 32 226
Meeting and Event Expenses 1,011 170 41
Occupancy 91 26 137
Printing and Publications 140 24 90
Special Projects
Scholarship Distributions
Depreciation and Amortization 27 8 40
Allocated Expenses 188
TOTAL $ 2,126 $ 446 $ 1,705
2004
Personnel $ 632 $ 203 $ 942
Supplies and Office Expenses 188 33 99
Meeting and Event Expenses 954 117 123
Occupancy 98 31 146
Printing and Publications 139 31 100
Special Projects
Depreciation and Amortization 26 7 39
Allocated Expenses 186
TOTAL $ 2,037 $ 422 $ 1,635
Other Member Services Professional
Education
Scholarships
and
Government Financial
2005 Communications Relations Literacy
Personnel $ 888 $ 599 $ 3
Supplies and Office Expenses 118 146 34
Meeting and Event Expenses 6 1 10
Occupancy 124 84
Printing and Publications 393 4 25
Special Projects 345
Scholarship Distributions 143
Depreciation and Amortization 36 25
Allocated Expenses 20 (40) (20)
TOTAL $ 1,930 $ 819 $ 195
2004
Personnel $847 $ 588
Supplies and Office Expenses 166 151
Meeting and Event Expenses 4 1
Occupancy 132 91
Printing and Publications 317 3
Special Projects 208
Depreciation and Amortization 35 24
Allocated Expenses (40)
TOTAL $ 1,709 $ 818
Supporting Services
Management
and
2005 General Governance Total
Personnel $ 2,289 $ 127 $ 5,723
Supplies and Office Expenses 826 224 1,815
Meeting and Event Expenses 5 158 1,402
Occupancy 320 18 800
Printing and Publications 104 24 804
Special Projects 4 13 362
Scholarship Distributions 143
Depreciation and Amortization 94 5 235
Allocated Expenses (390) (242)
TOTAL $ 3,252 $ 569 $ 11,042
2004
Personnel $ 1,804 $ 198 $ 5,214
Supplies and Office Expenses 857 181 1,675
Meeting and Event Expenses 12 150 1,361
Occupancy 280 31 809
Printing and Publications 68 19 677
Special Projects 11 14 233
Depreciation and Amortization 74 8 213
Allocated Expenses (384) (238)
TOTAL $2,722 $ 601 $ 9,944
STATEMENTS OF FUNCTIONAL EXPENSES
California Certified Public Accountants Education Foundation
Years Ended April 30, 2005 and 2004
(dollars in thousands)
Professional Management
Education and
2005 Programs General Governance Total
Course and Conference $ 5,221 $ 5,221
Expenses
Personnel 1,669 $ 819 $ 98 2,586
Brochures 448 448
Supplies and Office 293 118 2 413
Expenses
Occupancy 304 83 387
Depreciation and 122 31 153
Amortization
Allocated Expenses 310 (68) 242
Other Expenses 875 207 6 1,088
Total $ 9,242 $ 1,190 $ 106 $ 10,538
2004
Course and Conference $ 5,450 $ 5,450
Expenses
Personnel 1,685 $ 782 $ 99 2,566
Brochures 565 565
Supplies and Office 275 118 2 395
Expenses
Occupancy 293 81 374
Depreciation and 136 35 171
Amortization
Allocated Expenses 234 234
Other Expenses 375 297 8 680
Total $ 8,779 $ 1,547 $ 109 $ 10.435
COMBINING STATEMENTS OF CASH FLOWS
The California Society of Certified Public Accountants California
Certified Public Accountants Education Foundation
Years Ended April 30, 2005 and 2004
(dollars in thousands)
CalCPA Foundation
2005 2004 2005 2004
OPERATING ACTIVITIES:
Increase (Decrease) $ 1,445 $ 2,260 $ (521) $ 481
in Net Assets
Reconciliation to
Net Cash Provided
by Operating
Activities:
Net Unrealized
Losses (Gains)
on Investments 155 (1,158) (162) (197)
Depreciation 235 213 153 171
and
Amortization
Loss (Gain) on
Disposal of
Property
and Equipment 112
Phase-Out of 50 25
Intangible
Assets
Changes In:
Trade and (7) (89) (11) 132
Other
Receivables
Due From (To) (3) 28 3 (28)
Affiliate
Other Current 70 (14) 44 (59)
Assets
Accounts 65 4 (132) (38)
Payable
Accured (8) 85 188 (66)
Expenses
Deferred 365 1,087 213 (122)
Revenues
Deferred (26) 7 10 23
Lease Costs
Accrued (42) (603) 240 (278)
Pension
Liability
Net Cash Provided
by Operating 2,249 1,820 75 156
Activities
INVESTING ACTIVITIES:
Purchase of 5,297) (2,318) (1,693) (10,491)
Investments
Proceeds From 3,929 1,578 1,582 10,202
Sale of
Investments
Purchases of (186) (300) (83) (42)
Property and
Equipment
Acquisition of 28
Intangible
Assets
Net Cash
Provided (Used)
by Investing (1,554) (1,040) (166) (331)
Activities
NET INCREASE
(DECREASE) IN CASH
AND EQUIVALENTS 695 780 (91) (175)
CASH AND
EQUIVALENTS:
Beginning of Year 4,828 4,048 1,174 1,349
End of Year $ 5,523 $ 4,828 $ 1,083 $ 1,174
Combined
2005 2004
OPERATING
ACTIVITIES:
Increase (Decrease) $ 924 $ 2,741
in Net Assets
Reconciliation to
Net Cash Provided
by Operating
Activities:
Net Unrealized
Losses (Gains)
on Investments (7) (1,355)
Depreciation 388 384
and
Amortization
Loss (Gain) on
Disposal of
Property
and Equipment 112
Phase-Out of 50 25
Intangible
Assets
Changes In:
Trade and (18) 43
Other
Receivables
Due From (To)
Affiliate
Other Current 114 (73)
Assets
Accounts (67) (34)
Payable
Accured 180 19
Expenses
Deferred 578 965
Revenues
Deferred (16) 30
Lease Costs
Accrued 197 (881)
Pension
Liability
Net Cash Provided
by Operating
Activities 2,324 1,976
INVESTING ACTIVITIES:
Purchase of (6,990) (12,809)
Investments
Proceeds From 5,511 11,780
Sale of
Investments
Purchases of (269) (342)
Property and
Equipment
Acquisition of 28
Intangible
Assets
Net Cash
Provided (Used)
by Investing
Activities (1,720) (1,371)
NET INCREASE
(DECREASE) IN CASH
AND EQUIVALENTS 604 605
CASH AND
EQUIVALENTS:
Beginning of Year 6,002 5,397
End of Year $ 6,606 $ 6,002
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion