About ABIH - Audit Report - CY 97.htm

About ABIH - Audit Report - CY 97.htm

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LEWIS M. ARONOW CERTIFIED PUBLIC ACCOUNTANT 275 EAST STREET ROAD, P.O. BOX 215 FEASTERVILLE. PENNSYLVANIA 19053 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, 1997, and the related statements of activities, 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 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, 1997, and the results of its activities, ...

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LEWIS M. ARONOW
CERTIFIED PUBLIC ACCOUNTANT
275 EAST STREET ROAD, P.O. BOX 215
FEASTERVILLE. PENNSYLVANIA 19053
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, 1997, and the related statements
of activities, 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 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, 1997, 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
February 25, 1998
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1997
ASSETS
Cash
Merrill Lynch - WCMA Account
$220,346
Community First Bank - Savings Account
4,673
Merrill Lynch - Brokerage Account
866
Total Cash
$225,885
Marketable Securities (at cost)
721,475
(See
Note 2f
and
Accompanying Schedule
)
Accrued Interest Receivable
7,276
Prepaid Expenses and Deposit
6,952
Office and Computer Equipment
92,817
Less: Accumulated Depreciation
66,320
26,497
Trademark Costs, Net of Amortization
2,375
TOTAL ASSETS
$990,460
LIABILITIES AND NET ASSETS
Liabilities
Deferred Membership Dues
$254,540
Accounts Payable
4,787
Accrued Expenses
9,147
Total Liabilities
$268,474
Net Assets
721,986
TOTAL LIABILITIES AND FUND BALANCE
$990,460
Revenues
Application Fees
$ 95,275
Examination Fees
134,511
Diplomate Dues and Roster Fees
436,185
WCMA Dividend Income
14,728
Investment Income
35,862
AAIH Contract
9,000
Seals, Videos, and Other Income
7,943
Total Revenues
$733,504
Expenses
Meetings - Board and Committee
$ 42,866
Regional Examination Administration
9,872
Examinations
28,794
Executive Director's Office
561,231
AAIH Per Capita Payment
89,130
OSH Technologist BCSP Program Costs
18,182
Total Expenses
750,075
Decrease in Net Assets
( 16,571)
Net Assets - January 1, 1997
738,557
Net Assets - December 31, 1997
$721,986
Operating Activities
Decrease in Net Assets for the Year
$( 16,571)
Add: Adjustments to reconcile changes in net assets
to record cash provided by operating activities;
Depreciation
15,343
Amortization
297
Loss on Disposition of Office Equipment
478
Accrued Interest Receivable
(1,968)
AAIH Expense Reimbursements Receivable
2,542
Prepaid Expenses and Deposit
888
Deferred Membership Dues
20,040
Accounts Payable
2,162
Accrued Expenses
l,530
Net Cash Provided By Operating Activities
$ 24,741
Investing Activities
Purchases of Office and Computer Equipment
( 3,236)
Acquisition of Marketable Securities
(459,647)
Liquidation of Marketable Securities
266,000
Net Cash Used By Investing Activities
(196,883)
Decrease in Cash
$(172,142)
Cash - January 1, 1997
$398,027
Cash - December 31 1997
225,885
Decrease in Cash
$(172,142)
See
Accompanying Notes to the Financial Statements
.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1997
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 1998 were billed in November 1997, and income on
this billing has been deferred until 1998. Collections of 1997 dues, and
those of all prior years (plus applicable reinstatement fees) have
beenreported as 1997 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. Marketable securities consist primarily of bank certificates of deposit. The
Board has purchased these securities with the intent of holding them until
maturity (the latest maturity date is in 2002). These securities are traded
and have been purchased on the secondary market. Based on historical
cost, Board securities are valued at $721,475 as of December 31, 1997.
The market value of these securities at that date (excluding accrued
interest) was $718,458.
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.
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 lease term ends October 31, 2000. Remaining monthly rentals
during this term are as follows:
YearEnded 10/31,1988
1,981.00
Years Ended 10/31/99 and 10/31/00 2,051.75
Note 5 - Related Organization
a. The Board has an ongoing contract to provide administrative services for
the American Academy of industrial Hygiene (AAIH), an organization
created by the Board but controlled by separate officers and councillors.
This contract has been renewed for an additional one-year term ending
December 31, 1998. The Board will be paid $9,500 for these services, and
will be reimbursed for expenses incurred during its performance.
b. The Board partially funds AAIH activities through an annual per-capita
payment of $15 for each Diplomate of the Academy. Total hinding by the
Board in 1997 was $89,130.
c. Except as related above, these financial statements do not include any of
the transactions of the American Academy of Industrial Hygiene.
Note 6 - Leasing of Office Equipment
a. The Board is leasing telephone equipment from A.T.&T. Credit
Corporation for use in its administrative offices. The monthly rental is
$223.70, terminating in December 1998. The Board then has the option of
renewing the lease or purchasing the equipment at it's then fair market
value. The 1997 lease payments are included as part of the organization's
Telephone Expense.
b. The Board is leasing postage equipment from Pitney Bowes Leasing
Corporation for use in its administrative offices. The quarterly rental is
$642.36, and the lease terminates November 30, 2002.
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 - Concentration of Credit Risk
The Board invests most of its marketable securities in certificates of deposit of a
number of United States banking institutions. Accounts at each institution are
insured by the Federal Deposit Insurance Corporation up to $100,000. At
December 31, 1997, the Board's uninsured cash balances totaled $10,000, plus
accrued interest of $837. The balance of Board investments are in securities
backed by assets of the United States Government.
SCHEDULE OF MARKETABLE SECURITIES
DECEMBER 31, 1997
$60,000 Certificate of Deposit, First Indiana Bank, Indianapolis, IN, 6.40%, Due May 4,
1998
$ 60,000
$50,000 Certificate of Deposit, Firststar Bank, Milwaukee, WI, 5.70%, Due July 27, 1998
50,000
$60,000 Certificate of Deposit, Signet Bank, Richniond, VA, 6.15%, Due May28, 1999
60,000
$50,000 Certificate of Deposit, Roslyn Savings Bank, Roslyn, NY, 5.90%, Due October
25, 1999
50,000
$50,000 Certificate of Deposit, Bankers Trust Company, New York, NY, 5.90%, Due
November 8, 1999
50,000
$32,000 Certificate of Deposit, Dime Savings Bank, Wallingford, CT, 5.90%, Due
November 8, 1999
32,000
$60,000 Certificate of Deposit, Bankers Trust Company, New York, NY, 6.25%, Due May
22, 2000
60,000
$40,000 Certificate of Deposit, Manufacturers and Traders Trust Co., Buffalo, NY, 6.25%,
Due May 30, 2000
40,000
$40,000 Certificate of Deposit, S & T Bank, Indiana, PA, 6.00%, Due July 21,2000
40,000
$65,000 Certificate of Deposit, Harris Savings Bank, Harrisburg, PA, 5.80%, Due
December 11, 2000
65,000
$60,000 Certificate of Deposit, First National Bank of Commerce, New Orleans, LA,
5.75%, Due October 17, 2001
59,688
$50,000 Federal National Mortgage Association Callable Note, 6.45%, Due February 14,
2002
49,787
$50,000 Federal National Mortgage Association Callable Note, 6.22%, Due December 2,
2002
50,000
$55,000 Federal Home Loan Mortgage Corp. Debenture, 6.078%, Due December 30,
2002
55,000
Total Marketable Securities
$721,475
EXECUTIVE DIRECTOR'S OFFICE EXPENSES
YEAR ENDED DECEMBER 31, 1997
Payroll
$271,056
Payroll Taxes
20,654
Staff Travel
14,032
Telephone
10,280
Bank Charges
217
Credit Card Fees
3,894
Office Supplies
11,088
Insurance
4,436
Postage
39,097
Printing
48,220
Repairs and Maintenance
2,188
Rent
23,135
Hospitalization and Employee Benefits
15,463
Payroll Service
870
Pension and Pension Fees
16,186
Unification Task Force
5,202
Videos and Seals
35,305
Examination Development
11,825
Joint Council Dues
600
Accounting
8,800
Legal
2,565
Loss on Disposition of Office Equipment
478
Depreciation
15,343
Amortization
297
Total
$561,231
See
Accompanying Notes to the Financial Statements
.
This financial report was posted on April 8, 1998 following review and approval
by the Board.
Copyright American Board of Industrial Hygiene, 1996 - 2000, all rights reserved.