Combining financial statements & independent auditor's report 2005 to 2006.CalCPA TREASURER'S REPORT CalCPA has experienced another excellent year of membership growth and financial success. Revenues exceeded budget primarily due to investment gains, strong chapter events and increased advertising revenue. The rising demand for CPAs in the marketplace has helped fuel increases in print and online advertising. Furthermore, CalCPA's 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. initiative, including the very successful 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). Summit on Financial Literacy held in Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. in April, brought in $178,000 in sponsorships, and 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 exceeded $409,000. Naturally, an increase in revenues is followed by an increase in expenses. However, continued cost-saving methods kept the expenses in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with the budget overall. [ILLUSTRATION OMITTED] For example, savings in personnel costs resulting from the decrease in the pension liability offset higher professional fees. The reduced liability was due to both market performance and an actuarial-recommended change in the discount rate from 5.50 percent to 6.25 percent. Professional expenses include the AM4 database conversion costs. Included in the expenses for professional education programs are scholarship distributions of $247,000. 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 scholarship activities contributed to an increase of 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 $2.7 million, $1.5 million of which will be added to the board-designated building fund. CalCPA is committed to continuing to deliver unparalleled member service and a strong financial performance. With a break-even, program-driven budget, CalCPA is well positioned for another successful year. Teresa Teresa of Ávila, St. religious contemplation brought her spiritual ecstasy. [Christian Hagiog.: Attwater, 318] See : Mysticism Mason A mason is a worker who builds in brick or stone, otherwise known as masonry. Mason may also refer to:
California Society 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. FOUNDATION TREASURER'S REPORT It is my pleasure to report on the California CPA Education Foundation's financial results for FY 2005-06. 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 in the more than $10 million range. Revenues, including investment gains, exceeded budget by $1.5 million. The original forecast was based on 761 events and 50,535 attendees, and actuals Actuals 1. A term used to describe the underlying in future and forward contracts, dealing with commodities rather than financial instruments. 2. A term used to describe a securities historical volatitity. Notes: 1. were 779 events and a record breaking 51,736 attendees--907 more attendees than the previous record set in FY 2000-01. VP attendance increased by 3.6 percent over the previous fiscal year, and 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 use and full-pay attendance increased slightly more than 1 percent each. CPE (Customer Premises Equipment) Communications equipment that resides on the customer's premises. CPE - Customer Premises Equipment Products' sales also have grown significantly, due primarily to online offerings. [ILLUSTRATION OMITTED] These changes have affected related expenses as well. Direct expenses exceeded the budget by almost 7 percent. Hotel-related costs, such as facilities and food, have exceeded estimations due to increased costs for space rentals and services. On the other hand, indirect expenses came in well below budget as a direct result of the reduction in pension liability. The liability was reduced due to both market performance and an actuarial-recommended change in the discount rate from 5.50 percent to 6.25 percent. Additionally, Foundation personnel-related costs decreased due to an increase in shared services shared services, n.pl the administrative, clinical, or other service functions that are common to two or more hospitals or their health care facilities and used jointly or cooperatively by them. with CalCPA. Investment income and gains of $1.3 million together with the above-mentioned revenue growth contributed to a net asset increase of $1.6 million. 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. succeeding as one of the leading CPE providers in the country. Patricia Cochran, CPA CALIFORNIA CPA EDUCATION FOUNDATION 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. To the Council of The California Society of Certified Public Accountants To the 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, 2006 and 2005, 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 an 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 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 consideration of internal control over
the financial reporting as a basis for designing audit procedures that
are appropriate in the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or , but not for the purpose of expressing an opinion on the effectiveness of the Society's and Foundation's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the 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, 2006 and 2005, and the 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. 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, California “Sacramento” redirects here. For other uses, see Sacramento (disambiguation). Sacramento is the capital of the State of California and the county seat of Sacramento County. June June: see month. 1, 2006 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 October: see month. 2004 to account for scholarship activities and financial literacy program. The activities of the Institute are included in the Society. 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. Organizations. 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 for the Society at April 30, 2006 and 2005, and totaled $6 at April 30, 2006 and 2005 for the Foundation. INVESTMENTS Investments are stated at fair value. Unrealized and realized gains 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. and losses are included in the investment amount reported on the combining statements of activities. 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. 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 event sponsorships for various state committee meetings and council meetings and conferences. 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 the events occur. Other advertising costs are expensed as incurred. 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 is 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. ) Section 501(c)(6) and related California code sections. The Institute and the Foundation are both exempt from income taxes under Internal Revenue Code (IRC) Section 501(c)(3) 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. 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. 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. 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 $37 and $14 due from CAMICO as of April 30, 2006 and 2005, 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 $176 for 2006 and $193 for 2005. 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 $48 and $88 due from GIT are included in the Society's other accounts receivable as of April 30, 2006 and 2005, respectively. Services purchased and expenses allocated for GIT totaled $228 for 2006 and $279 for 2005. 3. THE INSTITUTE The activities of CalCPA Institute are reflected in the financial statements of the Society. This entity was formed to account for scholarships activities and financial literacy programs. Its revenues, expenses, and net assets for 2006 and 2005 are as follows:
2006 2005
Current assets $ 488 $ 111
Noncurrent assets 873 771
Total Assets 1,361 882
Current Liabilities 189 9
Revenue:
Scholarship donations 409 220
Financial literacy donations 178 11
Investment and other income 112 69
Total Revenue 699 300
Expenses:
Administration expenses 153 52
Scholarship distributions 247 143
Change in net assets 299 105
Net assets, beginning of year 873 768
Net assets, end of year $ 1,172 $ 873
4. 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:
2006 2005
Revenues:
Registration fees $ 702 $ 704
Processing and review fees 167 180
Total peer review fees 869 884
Interest income 31 13
Other income 13 12
Total revenue 913 909
Expenses:
Reviewer costs and
operating expenses 929 925
Change in net assets (16) (16)
Net assets, beginning of year 506 522
Net assets, end of year $ 490 $ 506
5. INVESTMENTS Investments consist of the following:
Society Foundation Combined
2006
Debt securities $ 4,148 1,268 5,416
Equity securities 6,680 6,245 12,925
Total $ 10,828 $ 7,513 $ 18,341
2005
Debt securities 3,874 1,186 5,060
Equity securities 5,408 4,634 10,042
Total $ 9,282 $ 5,820 $ 15,102
Investment income (loss) consists of the following:
Society Foundation Combined
2006
Interest and dividends $547 $459 $1,006
Net realized and
unrealized gains 1,335 844 2,179
Investment income 1,882 1,303 3,185
Less investment
expenses (27) (34) (61)
Investment income, net $1,855 $ 1,269 $3,124
2005
Interest and dividends $349 $198 $547
Net realized and
unrealized gains 210 132 342
Investment income 559 330 889
Less investment
expenses (27) (33) (60)
Investment income
(loss), net $ 532 $ 297 $ 829
6. PROPERTY AND EQUIPMENT Property and equipment consist of the following:
Society Foundation Combined
2006
Equipment $ 892 $ 636 $ 1,528
Software 822 526 1,348
Furniture 225 61 286
Leasehold improvements 672 - 672
Total 2,611 1,223 3,834
Less accumulated
depreciation and
amortization (1,859) (1,031) (2,890)
Property and
equipment, net $ 752 $ 192 $ 944
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
7. DEFERRED REVENUES Deferred revenues consist of the following:
Society: 2006 2005
Dues $ 4,883 $ 4,878
Peer review registration fees 550 550
Advertising 206 167
Annual meeting fees 83 -
Society total 5,722 5,595
Foundation:
Registration fees, including
Value Pricing (VP) program 1,835 1,884
Combined $ 7,557 $ 7,479
8. 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: Society Foundation Combined 2007 $ 692 $ 389 $ 1,081 2008 678 404 1,082 2009 536 420 956 2010 500 436 936 2011 126 111 237 Total $ 2,532 $ 1,760 $ 4,292 Rent expense, recorded net of the portion of the Society's lease paid by GIT, is as follows:
2006 2005
Society $ 671 $ 671
Foundation 372 372
Combined $ 1,043 $ 1,043
9. 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. :
2006 2005
Net periodic pension expense:
Society $ (45) $ 97
Foundation (22) 30
Total $ (67) $ 127
Employer contributions $ 403 $ 471
Benefits paid $ 197 $ 99
The plan's funded status is as follows:
2006 2005
Fair value of plan assets as
of April 30 $ 7,156 $ 5,875
Projected benefit obligation
as of April 30 7,197 6,822
Funded status $ (41) $ (947)
Accrued pension liability
included in the statements
of financial position $ (41) $ (947)
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:
2006 2005
Benefit obligation at April 30:
Discount rate 6.25% 5.50%
Rate of compensation increase N/A N/A
Net periodic pension expenses for years ended April 30:
Discount rate 5.50% 6.25%
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
2007 2006 2005
Marketable equity securities 60% 62% 60%
Marketable debt securities 38% 37% 39%
Cash equivalents 2% 1% 1%
Total 100% 100% 100%
Expected employer contributions are $275 for the year ending April 30, 2006 and are due in 2007. Expected benefit payments for the next ten years are as follows: 2007 $ 231 2008 296 2009 339 2010 360 2011 383 2012-2016 2,136 The amounts reported as nonoperating 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 obligation in 2005 have been reclassified as operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. in the current year to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the 2006 presentation. 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 2006 totaled $266 for the Society and $137 for the Foundation; and for 2005 totaled $262 for the Society and $123 for the Foundation. All employer contributions vest at a rate of 20% per year. Deferred Compensation Plan 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. There are no employer contribution expenses associated with this plan because all current contributions are made only by employees. 10. ADVERTISING COSTS The Foundation's advertising costs consist primarily of catalogs and brochures for events. Other current assets include capitalized advertising costs of $150 and $162 as of April 30, 2006 and 2005, respectively. Advertising costs charged to expense for the years ended April 30, are as follows:
2006 2005
Society $ 354 $ 345
Foundation 495 448
Combined $ 849 $ 793
11. NET ASSETS During the year ended April 30, 2006, management determined that in the previous years the Foundation's temporarily restricted and permanently restricted net assets were understated. Therefore the following restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. was made at April 30, 2004. In addition, changes in the unrestricted, temporarily restricted and permanently restricted net assets for the years ended April 30, 2005 and 2006 are summarized below.
Temporarily Permanently
Unrestricted Restricted Restricted
Net assets as previously $ 4,628 $ 621 $
reported April 30, 2004:
Net effect of adjustment (199) 122 77
Net assets as restated April
30, 2004 4,429 743 77
Changes in net assets before
scholarships transfer 167 79 1
Institute scholarship
transfer (768)
Net assets as of April 30,
2005 4,596 54 78
Change in net assets 1,577 (7) 3
Net assets as of April 30,
2006 6,173 47 81
As of April 30, 2006 and 2005, the Foundation's permanently restricted net assets were $81 and $78, respectively, which represented a restricted endowment A transfer, generally as a gift, of money or property to an institution for a particular purpose. The bestowal of money as a permanent fund, the income of which is to be used for the benefit of a charity, college, or other institution. for the John F. Forbes Forbes , B(ertie) C(harles) 1880-1954. American publisher and businessman who founded and edited (1916-1954) Forbes magazine. His son Malcolm Stevenson Forbes Medal Fund. The earnings from this endowment are used to purchase the Forbes medal, which should be granted each year to the candidates in California receiving the highest grade score on each of the uniform CPA examination. During the years ended April 30, 2006 and 2005 the endowment earned $3 and $1, respectively. As of April 30, 2006 and 2005 the net assets of the Society includes approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $1,038 and $771, respectively that are temporarily restricted for scholarships. The net $267 increase during the year ended April 30, 2006 is the result of donations and investment appreciation, net of fees, totaling $668, less administration cost and scholarship distributions of $401. In the year ended April 30, 2005, scholarship funds in the amount of $768 were transferred from the Foundation to the Society. During the year ended April 30, 2005, those funds earned $3 in investment income. In addition, the Society has designated $2,000 of its net assets to a building fund as of April 30, 2006 and 2005. The changes in the Society's net assets for the years ended April 30, 2005 and 2006 are as follows:
Unrestricted Temporarily
Restricted
Net assets as of April 30, 2004 $ 7,224 $
Changes in net assets before
scholarships transfer 674 3
Institute scholarships transfer 768
Net assets as of April 30, 2005 7,898 771
Changes in net assets 2,420 267
Net assets as of April 30, 2006 $ 10,318 $ 1,038
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. As of April 30, 2006 the Society's cash and cash equivalents was comprised of deposits with a book balance of $5,955 and had a balance per financial institutions of $5,932, of which $5,571 was not insured by the Federal Deposit Insurance Corporation Federal Deposit Insurance Corporation (FDIC), an independent U.S. federal executive agency designed to promote public confidence in banks and to provide insurance coverage for bank deposits up to $100,000. (FDIC FDIC See: Federal Deposit Insurance Corporation FDIC See Federal Deposit Insurance Corporation (FDIC). ) or the Security Investor Protection Corporation (SIPC (Simply Interactive PC) An earlier umbrella term from Microsoft and Intel for a PC that works like a home appliance. For example, it has a sealed case, uses external connectors for expansion and boots in just a couple of seconds. ). As of April 30, 2006 the Foundation's cash and cash equivalents was comprised of deposits with a book balance of $852 and had a balance per financial institutions of $739, of which $639 was not insured by the Federal Deposit Insurance Corporation (FDIC). 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, 2006 and 2005
(dollars in thousands)
Society Foundation
2006 2005 2006 2005
ASSETS
Current Assets:
Cash and $ 5,955 $ 5,523 $ 852 $ 1,083
Equivalents
Trade 211 175 133 112
Receivables,
Net
Other Accounts 222 121 5 6
Receivable
Due From (To) 148 61 (148) (61)
Affiliate
Other Current 342 323 309 441
Assets
Total 6,878 6,203 1,151 1,581
Current
Assets
Investments 10,828 9,282 7,513 5,820
Property and 752 720 192 243
Equipment, Net
Deferred 353 341
Compensation
Assets
TOTAL ASSETS $ 18,811 $ 16,546 $ 8,856 $ 7,644
LIABILITIES AND
NET ASSETS
Current
Liabilities:
Accounts $ 538 $ 498 $ 47 $ 72
Payable
Accrued 411 361 510 487
Expenses
Deferred 5,722 5,595 1,835 1,884
Revenues
Deferred Lease 34 51 18 6
Costs, Current
Total 6,705 6,505 2,410 2,449
Current
Liabilities
Deferred Lease 369 401 132 150
Costs, Net
Accrued Pension 28 630 13 317
Liability
Deferred 353 341
Compensation
Liability
TOTAL 7,455 7,877 2,555 2,916
LIABILITIES
NET ASSETS
Unrestricted 10,318 7,898 6,173 4,596
Temporarily 1,038 771 47 54
restricted
Permanently 81 78
restricted
TOTAL NET ASSETS 11,356 8,669 6,301 4,728
TOTAL $ 18,811 $ 16,546 $ 8,856 $ 7,644
LIABILITIES AND
NET ASSETS
Combined
2006 2005
ASSETS
Current Assets:
Cash and $ 6,807 $ 6,606
Equivalents
Trade 344 287
Receivables,
Net
Other Accounts 227 127
Receivable
Due From (To)
Affiliate
Other Current 651 764
Assets
Total 8,029 7,784
Current
Assets
Investments 18,341 15,102
Property and 944 963
Equipment, Net
Deferred 353 341
Compensation
Assets
TOTAL ASSETS $ 27,667 $ 24,190
LIABILITIES AND
NET ASSETS
Current
Liabilities:
Accounts $ 585 $ 570
Payable
Accrued 921 848
Expenses
Deferred 7,557 7,479
Revenues
Deferred Lease 52 57
Costs, Current
Total 9,115 8,954
Current
Liabilities
Deferred Lease 501 551
Costs, Net
Accrued Pension 41 947
Liability
Deferred 353 341
Compensation
Liability
TOTAL 10,010 10,793
LIABILITIES
NET ASSETS
Unrestricted 16,491 12,494
Temporarily 1,085 825
restricted
Permanently 81 78
restricted
TOTAL NET ASSETS 17,657 13,397
TOTAL $ 27,667 $ 24,190
LIABILITIES AND
NET ASSETS
The accompanying notes are an integral part of these financial
statements.
COMBINING STATEMENTS OF ACTIVITIES
The California Society of Certified Public Accountants California
Certified Public Accountants Education Foundation
Years Ended April 30, 2006 and 2005
(dollars in thousands)
Society Foundation
2006 2005 2006 2005
OPERATING
REVENUES:
Dues $ 7,597 $ 7,476
Registration $ 10,625 $ 9,984
Fees
Peer Review 869 884
Fees
Member 965 965
Meetings and
Events
Financial 588 259
Literacy and
Scholarships
Advertising 1,219 1,025
Services To 639 614 (153) (151)
(From) Related
Entities
Royalties and 107 96 76 71
Affinity
Programs
Investment 1,855 532 1,269 297
Income, Net
Other Income 204 875 119
TOTAL 14,043 12,726 11,817 10,320
REVENUES
OPERATING
EXPENSES:
Program
Services:
Member
Events:
Chapters 1,880 2,144
Committees 370 453
Other 1,522 1,745
Activities
Other Member
Services:
Communications 1,901 1,965
Government 804 844
Relations
Professional 401 195 9,088 9,241
Education
Programs
Total Program 6,878 7,346 9,088 9,241
Services
Supporting
Services:
Management and 4,118 3,362 1,119 1,190
General
Governance 360 573 37 410
TOTAL EXPENSES 11,356 11,281 10,244 10,841
CHANGE IN NET 2,687 1,445 1,573 (521)
ASSETS
NET ASSETS:
Beginning of 8,669 7,224 4,728 5,249
Year
End of Year $ 11,356 $ 8,669 $ 6,301 $ 4,728
Combined
2006 2005
OPERATING
REVENUES:
Dues $ 7,597 $ 7,476
Registration 10,625 9,984
Fees
Peer Review 869 884
Fees
Member 965 965
Meetings and
Events
Financial 588 259
Literacy and
Scholarships
Advertising 1,219 1,025
Services To 486 463
(From) Related
Entities
Royalties and 183 167
Affinity
Programs
Investment 3,124 829
Income, Net
Other Income 204 994
TOTAL 25,860 23,046
REVENUES
OPERATING
EXPENSES:
Program
Services:
Member
Events:
Chapters 1,880 2,144
Committees 370 453
Other 1,522 1,745
Activities
Other Member
Services:
Communications 1,901 1,965
Government 804 844
Relations
Professional 9,489 9,436
Education
Programs
Total Program 15,966 16,587
Services
Supporting
Services:
Management and 5,237 4,552
General
Governance 397 983
TOTAL EXPENSES 21,600 22,122
CHANGE IN NET 4,260 924
ASSETS
NET ASSETS:
Beginning of 13,397 12,473
Year
End of Year $ 17,657 $ 13,397
The accompanying notes are an integral part of these financial
statements.
STATEMENTS OF FUNCTIONAL EXPENSES
The California Society of Certified Public Accountants
Years Ended April 30, 2006 and 2005
(dollars in thousands)
Member Events
2006 Chapters Committees Other
Activities
Personnel $ 419 $ 173 $ 927
Supplies and 49 26 140
Office
Expenses
Meeting and 1,107 125 42
Event
Expenses
Occupancy 61 25 136
Printing and 225 13 46
Publications
Special
Projects
Scholarship
Distributions
Depreciation 19 8 42
and
Amortization
Allocated 189
Expenses
TOTAL $ 1,880 $ 370 $ 1,522
2005
Personnel $ 666 $ 193 $ 1,023
Supplies and 209 32 226
Office
Expenses
Meeting and 1,011 170 41
Event
Expenses
Occupancy 91 26 137
Printing and 140 24 90
Publications
Special
Projects
Scholarship
Distributions
Depreciation 27 8 40
and
Amortization
Allocated 188
Expenses
TOTAL $ 2,144 $ 453 $ 1,745
Other Member Services Professional Education
2006 Communications Government Scholarships and
Relations Financial Literacy
Personnel $ 810 $ 572 $ 17
Supplies and 111 155 32
Office
Expenses
Meeting and 8 73
Event
Expenses
Occupancy 118 84 -
Printing and 432 7 65
Publications
Special 353
Projects
Scholarship 247
Distributions
Depreciation 36 26 -
and
Amortization
Allocated 33 (40) (33)
Expenses
TOTAL $ 1,901 $ 804 $ 401
2005
Personnel $ 923 $ 624 $ 3
Supplies and 118 146 34
Office
Expenses
Meeting and 6 1 10
Event
Expenses
Occupancy 124 84 -
Printing and 393 4 25
Publications
Special 345
Projects
Scholarship 143
Distributions
Depreciation 36 25 -
and
Amortization
Allocated 20 (40) (20)
Expenses
TOTAL $ 1,965 $ 844 $ 195
Supporting Services
2006 Management Governance Total
and
General
Personnel $ 2,554 $ 100 $ 5,572
Supplies and 1,126 20 1,659
Office
Expenses
Meeting and 29 199 1,583
Event
Expenses
Occupancy 374 15 813
Printing and 248 21 1,057
Publications
Special 1 354
Projects
Scholarship 247
Distributions
Depreciation 114 5 250
and
Amortization
Allocated (328) (179)
Expenses
TOTAL $ 4,118 $ 360 $ 11,356
2005
Personnel $ 2,399 $ 131 $ 5,962
Supplies and 826 224 1,815
Office
Expenses
Meeting and 5 158 1,402
Event
Expenses
Occupancy 320 18 800
Printing and 104 24 804
Publications
Special 4 13 362
Projects
Scholarship 143
Distributions
Depreciation 94 5 235
and
Amortization
Allocated (390) (242)
Expenses
TOTAL $ 3,362 $ 573 $ 11,281
The accompanying notes are an integral part of these financial
statements.
STATEMENTS OF FUNCTIONAL EXPENSES
California Certified Public Accountants Education Foundation
Years Ended April 30, 2006 and 2005
(dollars in thousands)
2006 Professional Management Governance Total
Education and
Programs General
Course and Conference $ 5,977 $ $ $ 5,977
Expenses
Personnel 1,577 702 28 2,307
Brochures 495 495
Supplies and Office 252 138 3 393
Expenses
Occupancy 284 77 361
Depreciation and 129 34 163
Amortization
Allocated Expenses 263 (84) 179
Other Expenses 111 252 6 369
Total $ 9,088 $ 1,119 $ 37 $ 10,244
2005
Course and Conference $ 5,221 $ $ $ 5,221
Expenses
Personnel 1,668 819 402 2,889
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 $ 9,241 $ 1,190 $ 410 $ 10,841
The accompanying notes are an integral part of these financial
statements.
COMBINING STATEMENTS OF CASH FLOWS
The California Society of Certified Public Accountants California
Certified Public Accountants Education Foundation
Years Ended April 30, 2006 and 2005
(dollars in thousands)
Society Foundation
2006 2005 2006 2005
OPERATING ACTIVITIES:
Increase (Decrease) in $ 2,687 $ 1,445 $ 1,573 $ (521)
Net Assets
Reconciliation to Net
Cash Provided
by Operating
Activities:
Net Realized and
Unrealized Gains
on Investments (1,335) (210) (844) (132)
Depreciation and 250 235 163 153
Amortization
Loss on Disposal of
Property
and Equipment 3
Phase-Out of 50
Intangible Assets
Changes In:
Trade and Other (137) (7) (20) (11)
Receivables
Due From (To) (87) (3) 87 3
Affiliate
Other Current (19) 70 132 44
Assets
Accounts Payable 40 65 (25) (132)
Accrued Expenses 50 (8) 23 188
Deferred Revenues 127 365 (49) 213
Deferred Lease (49) (26) (6) 10
Costs
Accrued Pension (602) (42) (304) 240
Liability
Net Cash Provided by 925 1,884 733 105
Operating
Activities
INVESTING ACTIVITIES:
Purchase of (1,843) (5,297) (1,863) (1,693)
Investments
Proceeds From Sale of 1,632 4,294 14 1,552
Investments
Purchases of Property (282) (186) (115) (83)
and Equipment
Proceeds from Sales of 28
Property and Equipment
Net Cash Used by (493) (1,189) (964) (196)
Investing
Activities
NET INCREASE (DECREASE) 432 695 (231) (91)
IN CASH AND EQUIVALENTS
CASH AND EQUIVALENTS:
Beginning of Year 5,523 4,828 1,083 1,174
End of Year $ 5,955 $ 5,523 $ 852 $ 1,083
Combined
2006 2005
OPERATING ACTIVITIES:
Increase (Decrease) in $4,260 $ 924
Net Assets
Reconciliation to Net
Cash Provided
by Operating
Activities:
Net Realized and
Unrealized Gains
on Investments (2,179) (342)
Depreciation and 413 388
Amortization
Loss on Disposal of
Property
and Equipment 3
Phase-Out of 50
Intangible Assets
Changes In:
Trade and Other (157) (18)
Receivables
Due From (To)
Affiliate
Other Current 113 114
Assets
Accounts Payable 15 (67)
Accrued Expenses 73 180
Deferred Revenues 78 578
Deferred Lease (55) (16)
Costs
Accrued Pension (906) 198
Liability
Net Cash Provided by 1,658 1,989
Operating
Activities
INVESTING ACTIVITIES:
Purchase of (2,706) (6,990)
Investments
Proceeds From Sale of 1,646 5,846
Investments
Purchases of Property (397) (269)
and Equipment
Proceeds from Sales of 28
Property and Equipment
Net Cash Used by (1,457) (1,385)
Investing
Activities
NET INCREASE (DECREASE) 201 604
IN CASH AND EQUIVALENTS
CASH AND EQUIVALENTS:
Beginning of Year 6,606 6,002
End of Year $ 6,807 $ 6,606
The accompanying notes are an integral part of these financial
statements.
Access the Annual Report online at www.calcpa.org See .org. (networking) org - The top-level domain for organisations or individuals that don't fit any other top-level domain (national, com, edu, or gov). Though many have .org domains, it was never intended to be limited to non-profit organisations. RFC 1591. or www.educationfoundation.org |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion