The Ohio Society of CPAs: financial report 2002-2003.
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 www.ohioscpa.com, 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.
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.
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 Liabilities 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 Revenue 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 Expenses 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.
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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|Author:||Pierce, Sandra K.; Hay, Laura A.|
|Publication:||Catalyst (Dublin, Ohio)|
|Date:||Jul 1, 2003|
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