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The Ohio Society of CPAs: financial report 2002-2003.

Summary of Financial Results

Fiscal 2003 was a year of crisis for the CPA profession, and The Ohio Society responded with a number of initiatives to restore confidence and rebuild trust. The Society's commitment to excellence in program and service delivery, and efforts to enhance internal operational efficiency, resulted in positive net revenue from operations of $116,000. Due to unfavorable market conditions, the Society incurred a net investment loss of $201,000, resulting in an $85,000 decrease in net assets for the year.

Total operating revenue for the year ended April 30, 2003 was $7,462,000. The Society's primary sources of revenue are membership dues, providing 50 percent of total revenue, and continuing professional education registrations, at 36 percent of total revenue. Total operating expenses were $7,346,000, with the most significant expense categories of continuing professional education, and public relations and publications, at 35 percent and 20 percent of total expense.

Public Relations & Publications

Public relations and publications expenses were the most significant growth area, as the Society launched Catalyst, a new magazine for members, and expanded advertising and public relations initiatives to help rebuild public trust in the profession and reach out to students.


Providing quality educational opportunities for members is a top priority, and The Ohio Society continued to increase the value of its continuing education offerings for members with new CPE seminars and conferences. Cost control measures in the continuing education program resulted in net program revenue of $97,000, exceeding the 2003 budget of $39,000, and net revenue from the 2002 fiscal year of $80,000.

The accompanying condensed financial statements are derived from the Society's audited financial statements, which received an unqualified opinion. A complete copy of those financial statements is available on The Ohio Society of CPAs Web site at, or by contacting CPAnswers at 888.959.1212.


Enrollments in the Society's special interest sections continue to increase, providing section dues revenue of $96,000 for fiscal 2003, an increase of $25,000 from the prior year.

2003-2004 Budget

The Society conducts a comprehensive budgeting process beginning in October that concludes with Board adoption in January. An increase in net assets of $105,000 is budgeted for 2003-2004. A contribution to net assets is budgeted to remain in compliance with the Society's fiscal policy requirements, and to provide liquidity for investments in operations.

Cash Management

Due to aggressive management of operating cash, the Society ended the year without having to draw upon its line of credit which is typically utilized to meet cash requirements during March and April.


This year the Society's Finance Committee conducted an extensive review of the Society's long-term investment policy and criteria for fund selection. Working with the Society's investment managers, the committee will be expanding the diversification of fund strategies available to the long-term investment portfolio. The Society's current long-term investment fund performance exceeded benchmarks for the year.


In a year providing significant challenges to our profession and The Ohio Society, financial initiatives focused on investments in new programs designed to restore confidence and rebuild trust in the profession, internal cost control, and preparing the Society for the future. Through continued comparative analysis of Society program costs and revenue sources, the Finance Committee will work with the Board, management and volunteers in strengthening the Society's financial position to meet the personal, professional and educational needs of members, and to continue the Society's commitment to excellence.
 April 30

Assets 2003 2002

Cash and Cash Equivalents $177,000 $81,000
Accounts Receivable (net of
 allowance for doubtful accounts
 of $11,000 and $15,000
 respectively) 62,000 144,000
Prepaid Expense, and Deposits 379,000 365,000
Investments 2,431,000 2,731,000
Property (net of accumulated
 depreciation and amortization of
 $1,549,000 and $1,281,000
 respectively) 939,000 1,037,000

Total Assets $3,988,000 $4,358,000

Liabilities and Net Assets

 Accounts Payable and Accrued
 Liabilities $365,000 $437,000
 Deferred Revenue 554,000 456,000
 Short-Term Borrowings 0 330,000
 Funds Held for Others 472,000 482,000
 Loan Secured by Equipment 90,000 0
 Mortgage 740,000 801,000

 Total Liabilities 2,221,000 2,506,000

Net Assets
 Unrestricted 1,629,000 1,708,000
 Temporarily Restricted 14,000 20,000
 Permanently Restricted 124,000 124,000

 Total Net Assets 1,767,000 1,852,000

Total Liabilities and Net Assets $3,988,000 $4,358,000

 Years Ended April 30

Unrestricted Net Assets 2003 2002

 Dues $3,707,000 $3,672,000
 CPE Registrations 2,694,000 2,657,000
 Peer Review Fees 492,000 407,000
 Public Relations and Publications 295,000 239,000
 Membership Affinity Programs 138,000 153,000
 Other 82,000 77,000
 Educational Foundation
 Contributions 54,000 51,000
 Investment Income (Loss), Net (196,000) (113,000)
 Scholarships Released from
 Restrictions 1,000 1,000

Total Revenue 7,267,000 7,144,000

 CPE Program 2,597,000 2,577,000
 Public Relations and Publications 1,475,000 1,256,000
 General and Administrative 1,090,000 1,075,000
 Governmental Affairs 659,000 648,000
 Membership Services 586,000 487,000
 Peer Review 483,000 406,000
 Chapters and Sections 379,000 479,000
 Interest 51,000 73,000
 Income Tax 19,000 17,000
 Educational Foundation
 Scholarships 7,000 3,000

Total Expenses 7,346,000 7,021,000

Increase (Decrease) In Unrestricted
 Net Assets (79,000) 123,000

Temporarily Restricted Net Assets
 Investment Income (Loss), Net (5,000) (2,000)
 Scholarship Released from
 Restrictions (1,000) (1,000)
Decreased In Temporarily Restricted
 Net Assets (6,000) (3,000)

Change In Permanently Restricted
 Net Assets 0 0
Increase (Decrease) In Net Assets (85,000) 120,000
Net Assets At Beginning of Year 1,852,000 1,732,000

Net Assets At End of Year $1,767,000 $1,852,000

2002-2003 Total Operating Revenue = $7,462
(in thousands)

Dues $3,707
CPE $2,694
Peer Review $492
PR & Publications $295
Member Services $138
Other $136

Note: Table made from pie chart.

2002-2003 Total Operating Expenses = $7,346
(in thousands)

CPE $2,597
PR & Publications $1,475
General & Admin. $1,167
Government Affairs $659
Member Services $586
Peer Review $483
Chapters & Sections $379

Note: Table made from pie chart.

Net CPE Revenue

(in thousands)

Actual 2003 $97
Budget 2003 $39
Actual 2002 $80

Section Dues

(in thousands)

2003 $96
2002 $71
2001 $60

2003-2004 Budget Revenue = $8,504
(in thousands)

Dues $4,021
CPE $3,358
Peer Review $454
PR & Publications $389
Member Services $154
Other $128

Note: Table made from pie chart.

2003-2004 Budget Expenses = $8,399
(in thousands)

CPE $3,290
PR & Publications $1,695
General & Admin. $1,168
Government Affairs $696
Member Services $677
Peer Review $456
Chapters & Sections $417

Note: Table made from pie chart.

Respectfully Submitted,

Sandra K. Pierce, CPA, CFP Chair of the Board

Laura A. Hay, CPA Vice President, Finance and Technical Services

The Ohio Society of CPAs

535 Metro Place South

P.O. Box 1810

Dublin, Ohio 43017-7810


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Article Details
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Author:Pierce, Sandra K.; Hay, Laura A.
Publication:Catalyst (Dublin, Ohio)
Geographic Code:1U3OH
Date:Jul 1, 2003
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