ACTE ANNUAL REPORT Fiscal Year 1999.
New database software was installed at ACTE headquarters and the member services department implemented a customer service team approach. ACTE worked with state associations to regain members who have not renewed. The association mailed renewal notices beyond the typical period of three months and began to see some improvement with the results. Additionally, ACTE conducted direct mail marketing campaigns to member prospects across the country -- keyed to individual states and divisions.
The Administration, Business Education, Guidance, Health Occupations and Marketing Education Divisions of the Texas Career and Technology Council (TCTC) voted to unify with ACTE in June 1999. This decision means that Texas career and technical educators in any of the above program areas wishing to join TCTC must now also join ACTE and vice versa. Through a service agreement ACTE will do all of their membership processing and the association hopes to see significant growth in these divisions over the next few years.
ACTE continues to conduct various membership recruitment programs such as Member-Get-A-Member, Achieve 100, Forward to Excellence 2000 and the Student Member Campaign. The association also introduced new member benefits such as discounts for Dollar Rent-a-Car, Rockport Shoes Direct, and a free subscription to U.S. News & World Report.
Federal Funds and Advocacy Efforts
With the successful completion of the Perkins Act in October 1998, FY99 was a banner year for ACTE and career and technical education. ACTE led efforts to ensure a strong, effective new law, including a nationwide grassroots advocacy campaign to bolster the ACTE government relations activities working directly with Congress and the Administration.
The completion of the Workforce Investment Act and the Higher Education Act during the 105th Congress were also among our accomplishments. Both of these bills contained provisions that amounted to major victories for students and teachers nationwide.
Conventions and Meetings
Our New Orleans convention in December 1998 was a success with more than 8,500 attendees and 320 exhibiting companies at our trade show. High profile speakers included TV personality Al Roker; Daniel Burrus, president and CEO of Burrus Research Associates and author of Technotrends; education leader and author Dale Parnell; and Dallas radio personality Suzie Humphreys. Also, this convention saw the introduction of a "student track," which provided special programming for college graduates and undergraduates who are preparing to be career and technical educators.
ACTE held its first professional development workshop on career and technical teacher certification in Charlotte, N.C., with 70 participants. The National Policy Seminar in Washington, D.C., drew 400 attendees. Speakers included ACTE Policymaker of the Year Rep. John Peterson (R-Pa.), Sen. Patty Murray (D-Wash.), Rep. Dale Kildee (D-Mich.), Sen. Jeff Sessions (R-Ala.), and Assistant Secretary of Education Trish McNeil.
ACTE's Image Campaign
Our public information and media activities continued to attract increasing media attention to quality programs in the field and to our core message about the relevance and importance of career and technical education to students. News of the association's name change, from American Vocational Association to Association for Career and Technical Education, made the front page of the Wall Street Journal. Other media contacts and placements during the year included: Reuters Business Report, Orlando Sentinel, Kiplinger Washington Letter, Newark Star-Ledger, Vocational Training News, Education Week, Career Pathways and Educating for Employment.
Betty Phillips from Sullivan High School in Indiana was selected as ACTE Teacher of the Year for 1999. Other national educator awards were presented to: Wendy Smythe, ACTE Outstanding Career and Technical Educator; and Natalie Lavender, ACTE Outstanding New Career and Technical Teacher.
Products and Publications
Upon passage of the new Perkins Act, ACTE rushed into print with The Official Guide to the Perkins Act of 1998, followed by the User's Guide to the Workforce Investment Act of 1998. These two guides to the new laws experienced strong sales. In addition, ACTE published High-Skill, High-Wage Jobs, a student guide to more than 50 of the best jobs on the market,) and a collection of fun and inspirational stories by and for career tech educators called The Dog Did It! (after the classic excuse for completion of a class assignment). Two new information brochures also were introduced: Will My Kid Get A Life? (career exploration) and Earning and Learning Power (relating education to career earnings).
ACTE's Voc Ed Week/School-to-Careers Month promotional items carried the slogan "Connecting Education & Careers" and sales were strong for the logo-bearing banners, T-shirts and giveaway items that the association provides for the field.
A readership survey for ACTE's Techniques magazine conducted by an independent firm showed readers read the magazine thoroughly, find it very useful in their work and also rely on the advertisements it carries. Techniques advertising sales surpassed $500,000 in the fiscal year. The School-To-Work Reporter newsletter was re-designed with a more business-like look and re-organized content.
The ACTE Web site (with a new address: www.acteonline.org) was totally revamped with a comprehensive new index for direct entry into any section of the site, plus hyperlinks to Web sites of other organizations, improved Division and Region home pages, a job bank and more samples of ACTE publications and products.
ASSOCIATION FOR CAREER AND TECHNICAL EDUCATION STATEMENT OF FINANCIAL POSITION Year ended June 30, 1999 and 1998
ASSETS 1999 1998 Current assets: Cash and equivalents $ 184,350 $ 143,448 Accounts receivable, net of allowance for doubtful accounts of 1999 $21,000; 1998 $12,000 320,055 199,143 Inventory 240,632 209,327 Prepaid expenses and other current assets 236,270 214,196 Total current assets 981,307 766,144 Marketable securities 633,440 896,574 Property and Equipment, net of accumulated depreciation of 1999 $1,274,969; 1998 $1,085,335 2,808,608 2,866,610 Deposits 2,325 2,325 $4,425,680 $4,531,623 LIABILITIES AND NET ASSETS Current Liabilities: Current maturities of long-term debt $ 203,981 $ 146,000 Account payable and accrued expenses 354,032 515,419 Deferred revenue 967,494 866,949 Total current liabilities 1,525,507 1,528,368 Long-term debt, less current maturities 1,435,775 1,541,936 Deposits payable 6,760 6,760 2,968,042 3,077,064 Net Assets Unrestricted 1,152,969 1,155,686 Temporarily restricted 304,669 298,873 Total net assets 1,457,638 1,454,559 $4,425,680 $4,531,623
ASSOCIATION FOR CAREER AND TECHNICAL EDUCATION STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS Year ended June 30, 1999
Temporarily Unrestricted Restricted Revenue: Membership dues $1,400,239 $ -- Conv./Conferences/workshops 2,482,890 -- Publications, net of publication cost 856,617 -- Advertising 592,891 -- Investment income 20,928 9,651 Contributions 94,290 -- Service fees 174,927 13,145 Net assets released 68,263 -- from restrictions satisfaction of fellowship & scholarship restrictions 17,000 (17,000) Total revenue $5,708,045 5,796 Expenses: Program Services: Convention conferences $1,232,875 -- & workshops 1,370,495 -- Publications 299,977 -- Government relations 125,373 -- Special projects 2,958,720 -- Supporting services: Administration 1,345,874 -- Membership 585,597 -- Professional management 820,571 -- 2,752,042 -- Total expenses 5,710,762 -- Changes in net assets $ (2,717) $5,796 Net assets: Beginning of year 1,155,686 289,873 End of year $1,152,969 $304,669 Total Revenue: Membership dues $1,400,239 Conv./Conferences/workshops 2,482,890 Publications, net of publication cost 856,617 Advertising 592,891 Investment income 30,579 Contributions 94,290 Service fees 188,072 Net assets released 68,263 from restrictions satisfaction of fellowship & scholarship restrictions Total revenue 5,713,841 Expenses: Program Services: Convention conferences $1,232,875 & workshops 1,370,495 Publications 229,977 Government relations 125,373 Special projects 2,958,720 Supporting services: Administration 1,345,874 Membership 585,597 Professional management 820,571 2,752,042 Total expenses $5,740,762 Changes in net assets $3,079 Net assets: Beginning of year 1,454,559 End of year $1,457,638
Notes to Financial Statements
Note 1. Nature of Activities and Significant Accounting Policies
Nature of activities: The Association for Career and Technical Education (the "Association") is a professional membership organization. The mission of the Association is to provide educational leadership in developing a competitive workforce. The Association was organized in 1926 and incorporated under the laws of the State of Indiana. The corporate office is currently located at 1410 King Street, Alexandria, Virginia. The governing body is the Board of Directors which appoints the Executive Director in charge of operations. Current membership is approximately 34,500 and is divided into five geographical regions. Members may also belong to independent state organizations and are also affiliated with one or more of thirteen special interest divisions. The annual Program Activities outlines Association's goals and activities that focus on helping vocational educators meet their increased responsibilities through program development, professional growth opportunities, organizational development, and public information.
A summary of the Association's significant accounting policies follows:
Basis of accounting: The accompanying financial statements are presented in accordance with the accrual basis of accounting whereby revenue is recognized when earned and expenses are recognized when incurred.
Basis Of Presentation: Financial statement presentation follows the recommendations of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Association is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted' net assets, and permanently restricted net assets. The Association does not have any permanently restricted net assets.
Cash and cash equivalents: For the purpose of reporting cash flows, the Association considers all highly-liquid investments purchased with a maturity of three months or less to be cash equivalents.
Credit risk: The Association maintains its cash in bank deposit accounts which, at times, may exceed federally insured limits. The Association has not experienced any losses in such accounts. The Association believes it is not exposed to any significant credit risk on cash and cash equivalents.
Accounts receivable: Accounts receivable are from members and vendors located throughout the United States. All accounts receivable are granted on an unsecured basis.
Allowance for doubtful accounts: The allowance for doubtful accounts is based on management's evaluation of the collectibility of accounts receivable.
Inventory: Inventory consists primarily of publications and is valued at the lower of cost or market on a first-in-first-out basis.
Investments: The Association accounts for investments in accordance with Statement of Financial Accounting Standards (SFAS) No. 124, Accounting for Certain Investments Held by Not-for-Profit Organizations whereby investments are carried at fair value. The fair value of the Association's marketable securities have been determined using available market information. Debt securities have stated contractual maturities, however, borrowers may have the right to call or repay obligations with or without call or prepayment penalities.
Property and equipment: Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets, which range from 3 to 40 years. The Association capitalizes all property and equipment purchased with a cost of $1,000 or more.
Membership dues: The Association recognizes membership dues over the term of the membership by deferring the portion which relates to the period of membership in subsequent fiscal years.
Conference and seminar fees: Conference and seminar fees are recognized at the time of the conference or seminar. Amounts received in advance are recorded as deferred revenue.
Restricted and unrestricted revenue: Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence and/or nature of any donor restrictions.
Support that is restricted by the donor is reported as an increase in unrestricted net assets if the restriction expires or is satisfied in the reporting period in which the support is recognized. All other donor-restricted support is reported as an increase in temporarily or permanently restricted net assets, depending on the nature of the restriction. When a restriction expires (that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the Statement of Activities as net assets released from restrictions.
Unconditional promises to give are recognized as revenue or gain in the period received and as assets, decreases of liabilities, or expenses depending on the form of the benefits received. Conditional promises to give are recognized when the conditions on which they depend are substantially met.
Income taxes status: The Internal Revenue Service has determined that the Association is exempt from federal income tax under Internal Revenue Code Section 501 (c)(3). The Association has been deemed not to be a private foundation. The Association is subject to taxation on net unrelated business income. The Association has recorded a provision for income taxes of $15,205 and $18,280 for tax on unrelated business income for the years ended June 30, 1999 and 1998, respectively.
Estimates: The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
In this annual report, we highlight some of the exciting accomplishments of our association in the year that officially ended June 30, 1999. First among them, of course, is the changing of our name to Association for Career and Technical Education and adoption of our attractive new logo.
The other major achievement of last year was the great success of our advocacy efforts in the form of a new Perkins Act of 1998, which will fund our programs in the years ahead, plus a federal Workforce Investment Act that also will bring benefits to our enterprise.
These and other milestones are covered in this FY99 report. But I want to note also some of the ongoing initiatives that we are pursuing into the new fiscal year:
* expanding member recruitment campaigns and programs
* working with a coalition of 90 education associations in a grassroots campaign to increase federal education funds for FY2000
* reauthorization of the Elementary and Secondary Education Act
* strengthening of our ACTE Web site as it attracts ever more visitors.
Laura Ward President 1998-1999
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|Article Type:||Statistical Data Included|
|Date:||Jan 1, 2000|
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