About ABIH - Audit Report - CY 2001.htm

About ABIH - Audit Report - CY 2001.htm

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LEWIS M. ARONOW CERTIFIED PUBLIC ACCOUNTANT 275 EAST STREET ROAD, P.O. BOX 215 FEASTERVILLE. PENNSYLVANIA 19053 MEMBER: PENNSYLVANIA Phone: 215-357-5880 * Fax: 215-INSTITUTE OF CPAS 953-8235 NEW JERSEY SOCIETY OF www.focusonfinance.com CPAS Email: AMERICAN INSTITUTE OF CPAS aronow@focusonfinance.com INDEPENDENT AUDITOR'S REPORT To The Board of Directors American Board of Industrial Hygiene Lansing, Michigan I have audited the accompanying statement of financial position of the American Board of Industrial Hygiene as of December 31, 2001 and the related statements of activities and changes in net assets and cash flows for the year then ended. These financial statements are the responsibility of the Board's management. My responsibility is to express an opinion on these financial statements based on my audit. I did not audit the financial statements of the Council on Certification of Health, Environmental and Safety Technologists (CCHEST) as of and for the year ended December 31, 2001. This was audited by other auditors, whose report has been furnished to me, and my opinion, insofar as it relates to amounts included for CCHEST, is based solely on the report of the other auditors. I conducted my audit in accordance with generally accepted auditing standards. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes ...

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LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
275 EAST STREET ROAD, P.O. BOX 215
FEASTERVILLE. PENNSYLVANIA 19053
MEMBER: PENNSYLVANIA
INSTITUTE OF CPAS
NEW JERSEY SOCIETY OF
CPAS
AMERICAN INSTITUTE OF CPAS
Phone: 215-357-5880 * Fax: 215-
953-8235
www.focusonfinance.com
Email:
aronow@focusonfinance.com
INDEPENDENT AUDITOR'S REPORT
To The Board of Directors
American Board of Industrial Hygiene
Lansing, Michigan
I have audited the accompanying statement of financial position of the American
Board of Industrial Hygiene as of December 31, 2001 and the related statements
of activities and changes in net assets and cash flows for the year then ended.
These financial statements are the responsibility of the Board's management. My
responsibility is to express an opinion on these financial statements based on my
audit. I did not audit the financial statements of the Council on Certification of
Health, Environmental and Safety Technologists (CCHEST) as of and for the
year ended December 31, 2001. This was audited by other auditors, whose
report has been furnished to me, and my opinion, insofar as it relates to amounts
included for CCHEST, is based solely on the report of the other auditors.
I conducted my audit in accordance with generally accepted auditing standards.
Those standards require that I plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. 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. I
believe that my audit provides a reasonable basis for my opinion.
In my opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of the American Board of Industrial
Hygiene as of December 31, 2001, and the results of its activities, changes in net
assets, and cash flows for the year then ended in conformity with generally
accepted accounting principles.
Certified Public Accountant
March 5, 2002
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF FINANCIAL POSITION
YEAR ENDED DECEMBER 31, 2001
ASSETS
Cash
Merrill Lynch - WCMA Account
$364,486
Fifth Third Bank - Savings Account
23,285
Total Cash
$387,771
Marketable Securities
575,120
Accrued Interest Receivable
3,478
Prepaid Expenses and Deposit
11,890
Office and Computer Equipment
129,113
Less: Accumulated Depreciation
67,329
61,784
Trademark Costs, Net of Amortization
17,237
Investment - CCHEST Joint Venture
53,544
TOTAL ASSETS
$1,110,824
LIABILITIES AND NET ASSETS
Liabilities
Deferred Membership Dues
$342,930
Accounts Payable
3,451
Accrued Expenses
2,171
Total Liabilities
$348,552
Unrestricted Net Assets
762,272
TOTAL LIABILITIES AND NET ASSETS
$1,110,824
See
Accompanying Notes to the Financial Statements
.
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 2001
Revenues
Application Fees
$ 57,438
Examination Fees
89,080
Dues
499,957
Net Investment Income
29,257
CM Worksheet Late Fees
7,280
Seals, Videos, and Other Income
10,255
Total Revenues
$693,267
Expenses
Meetings - Board and Committee
$ 54,909
Regional Examination Administration
8,154
Examinations
33,892
Executive Director's Office
585,339
CESB Accreditation
4,500
Loss On Disposition Of Investments
34,055
Net Unrealized Loss on Investments
53,927
Total Expenses
774,776
Equity in Net Income of CCHEST Joint Venture
21,255
Decrease in Unrestricted Net Assets
( 60,254)
Unrestricted Net Assets - January 1, 2001
790,237
Add: - Investment in CCHEST Joint Venture (Prior Period)
32,289
Unrestricted Net Assets - December 31, 2001
$762,272
See
Accompanying Notes to the Financial Statements
.
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 2001
Operating Activities
Decrease in Net Assets
$( 60,254)
Add: Adjustments to reconcile changes in net assets
to record cash provided by operating activities;
Depreciation
17,483
Amortization
651
Changes in:
Unrealized Loss on Investments
53,927
Accrued Interest Receivable
(
1,196)
Prepaid Expenses and Deposit
(
1,945)
Investment in CCHEST Joint Venture
( 21,255)
Deferred Membership Dues
(
2,665)
Accounts Payable
(
2,052)
Accrued Expenses
740
Net Cash Used By Operating Activities
$( 16,566)
Investing Activities
Purchases of Office and Computer Equipment
( 18,404)
Trademark Costs Incurred
(
7,110)
Acquisition of Investments
(321,138)
Liquidation of Investments
538,413
Net Cash Provided by Investing Activities
191,761
Increase in Cash
$ 175,195
Cash - January 1, 2001
$212,576
Cash - December 31 2001
387,771
Increase in Cash
$
175,195
See
Accompanying Notes to the Financial Statements
.
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
AMERICAN BOARD OF INDUSTRIAL HYGIENE
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2001
Note 1 - Mission of Organization
The American Board of Industrial Hygiene was incorporated in Pennsylvania as a
not-for-profit corporation. Its mission is to improve the practice and educational
standards of the profession of industrial hygiene. Among its activities are the
conduct and administration of professional examinations, and granting those who
pass such examinations certification indicating their competence in various
aspects of industrial hygiene.
Note 2 - Summary of Significant Accounting Policies
a. Office and computer equipment are carried at cost less accumulated
depreciation. Depreciation on this equipment is recorded using the
straight-line method, based on an estimated useful life of five years.
b. Trademark costs are being amortized using the straight-line method,
based on an estimated useful life of twenty years.
c. Membership dues for 2002 were billed in October 2001, and income on
this billing has been deferred until 2002. Collections of 2001 dues, and
those of all prior years (plus applicable reinstatement fees) have been
reported as 2001 income.
d. Application and examination fees are reported as income in the year in
which collected. Application fees are non-refundable. Applicants need not
take examination in the year in which examination fees are paid, provided
that Board approval of such deferral is secured prior to the administration
of the current semi-annual examination.
e. A significant portion of the Board's functions is conducted by unpaid
officers and directors. The value of this contributed time is not reflected in
the accompanying financial statements since the volunteers' time does not
meet the criteria necessary for recognition.
f. Investments are listed at fair market value, as valued by Merrill Lynch &
Company. Based on historical cost, Board investments are valued at
$719,091 at December 31, 2001.
g. Financial statement presentation follows the recommendations of the
Financial Accounting Standards Board in its Statement of Financial
Accounting Standards No. 117, Financial Statements of Not-for-Profit
Organizations.
h. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect certain reported amounts. Accordingly, actual
results could differ from those estimates.
i.
For purposes of the statement of cash flows, the organization considers all
short-term debt securities purchased with a maturity of three months or
less to be cash equivalents.
Note 3 - Federal Income Tax Status
The Board has been granted exemption from Federal Income Tax as a not-for-
profit organization under Internal Revenue Code Section 501(c)(6).
Note 4 - Leasing of Real Estate
The Board leases offices for the Executive Director and administrative staff at
6015 West St. Joseph Highway, Lansing, Michigan. The current five-year lease
ends October 31, 2005, and the remaining monthly rental is as follows:
Year Ended October 31, 2002
- $2,122.50
Year Ended October 31, 2003
- $2,193.25
Years Ended October 31, 2004 and 2005 - $2,264.00
Note 5 - Related Organization
Since 1985 the Board has had a 50% interest in the Council on Certification of
Health, Environmental and Safety Technologists (CCHEST). The Board of
Certified Safety Professionals (BCSP) has the other 50% interest in this joint
venture. Its purpose is to provide certification of occupational safety and health
technologists. This statement includes the Board's interest in CCHEST for the
first time, reflecting its $32,269 in unrestricted net assets at December 31, 2000
and its $21,255 increase in unrestricted net assets for the year ended
December 31, 2001.
Note 6 - Leasing of Equipment- Administrative Offices
a. The Board is leasing postage equipment from Pitney Bowes Leasing
Corporation. The quarterly rental is $642.36.
b. The Board is leasing a Canon copier from IOS Capital, Inc. The monthly
rental is $391.14, and the lease terminates February 21, 2006.
Note 7 - Simplified Employee Plan
The Board has a Simplified Employee Pension Plan covering all Board
employees. The quarterly Board contribution is based upon a percentage of each
employee's salary, and employees may also make voluntary contributions into
the Plan via payroll withholding.
Note 8 - Testing Services Contract
The Board has contracted with Castle Worldwide, Inc. to provide examination
development, preparation, printing, scoring, and analytical services for the Board.
This contract expires December 31, 2002.
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
INDEPENDENT AUDITOR'S REPORT
ON ADDITIONAL INFORMATION
To the Board of Directors
American Board of Industrial Hygiene
My report on my audit of the basic financial statements of the American Board of
Industrial Hygiene is attached. I conducted my audit in accordance with generally
accepted auditing standards for the purpose of forming an opinion on the basic
financial statements taken as a whole. The schedule of investments and
statement of executive director's office expenses are presented for purposes of
additional analysis and are not required parts of the basic financial statements.
Such information has been subjected to the auditing procedures applied in the
audit of the basic financial statements and, in my opinion, is fairly stated in all
material respects in relation to the basic financial statements taken as a whole.
Certified Public Accountant
March 5, 2002
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
AMERICAN BOARD OF INDUSTRIAL HYGIENE
SCHEDULE OF MARKETABLE SECURITIES
DECEMBER 31, 2001
$75,000 Certificate of Deposit, BSB Bank & Trust Co., Binghamton, NY, 5.05%, Due
February 28, 2002
75,184
$50,000 Certificate of Deposit, Provident Bank of Maryland, Baltimore, MD, 5.67%, Due
May 22, 2002
50,460
$50,000 Certificate of Deposit, R G Premiere Bank, Hato Rey, PR, 2.80$, Due July 23,
2002
50,000
1,560.9260 Alliance Bernstein Disciplined Value Fund B
20,135
2,461.6090 Alliance New Europe Fund Class B
16,590
30,761 Biotechnology 2000 Series A Defined Asset Fund
22,421
4,777.5710 Blackrock Large Cap Value Equity Fund Class B
61,057
23,926.0972 DAF S & P 500 Trust 2 Fund
49,918
1,493.6520 Davis NY Venture Fund B
36,578
526.5100 Franklin Small-Mid Cap Growth Fund Class C
16,021
2,082.8440 Goldman Sachs Internet Tollkeeper Fund Class B
16,183
2,963.4400 Massachusetts Investors Growth Stock Fund Class B
35,679
2,816.6600 Mercury U.S. Small Cap Growth Fund Class B
29,405
2,374.2540 ML Fundamental Growth Fund Class B
39,863
1,395.1910 Putnam Investors Fund Class B
15,081
482.2150 Putnam Health Sciences Trust Class B
28,343
370.1210 Putnam International New Opportunities Fund Class B
3,194
26,875.7749 Telegloba1 2000 Series A Defined Asset Fund
9,008
Total Investments
$575,120
See
Accompanying Notes to the Financial Statements
.
LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
AMERICAN BOARD OF INDUSTRIAL HYGIENE
EXECUTIVE DIRECTOR'S OFFICE EXPENSES
YEAR ENDED DECEMBER 31, 2001
Payroll
$322,743
Payroll Taxes
23,790
Staff Travel
15,626
Telephone
7,039
Bank Charges and Credit Card Fees
6,825
Office Supplies
15,894
Insurance
5,163
Postage
27,785
Printing
47,816
Repairs and Maintenance
2,198
Rent
25,470
Hospitalization and Employee Benefits
22,665
Payroll Service
864
Pension and Pension Fees
19,290
Videos and Seals
5,402
Examination Development
3,056
Joint Council Dues
600
Accounting
10,650
Legal (Excluding Trademark Costs)
4,329
Depreciation
17,483
Amortization
651
Total
$585,339
See
Accompanying Notes to the Financial Statements
.
This financial report was posted on June 7, 2002 following review and approval
by the Board.