About ABIH - Audit Report - CY 99.htm

About ABIH - Audit Report - CY 99.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, 1999, 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, 1999, 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, 1999, 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, 1999, 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 15, 2000
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF FINANCIAL POSITION
YEAR ENDED DECEMBER 31, 1999
ASSETS
Cash
Merrill Lynch - WCMA Account
$176,790
Old Kent Bank - Savings Account
1,999
Total Cash
$178,789
Investments
605,395
Accrued Interest Receivable
4,255
Prepaid Expenses and Deposit
12,167
Office and Computer Equipment
76,769
Less: Accumulated Depreciation
37,540
39,229
Trademark Costs, Net of Amortization
8,086
TOTAL ASSETS
$847,921
LIABILITIES AND NET ASSETS
Liabilities
Deferred Membership Dues
$183,150
Accounts Payable
9,095
Accrued Expenses
1,297
Total Liabilities
$193,542
Unrestricted Net Assets
654,379
TOTAL LIABILITIES AND NET ASSETS
$847,921
See
Accompanying Notes to the Financial Statements
.
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
YEAR ENDED DECEMBER 31, 1999
Revenues
Application Fees
$ 77,300
Examination Fees
102,730
Diplomate Dues and Roster Fees
465,421
WCMA Dividend Income
5,963
Investment Income
40,434
Net Unrealized Gain on Investments
11,023
AAIH Contract
11,500
Seals, Videos, and Other Income
9,178
Total Revenues
$723,549
Expenses
Meetings - Board and Committee
$ 52,602
Regional Examination Administration
9,067
Examinations
20,589
Executive Director's Office
567,539
AAIH Per Capita Payment
91,155
CESB Accreditation
4,500
Total Expenses
745,452
Decrease in Net Assets
( 21,903)
Unrestricted Net Assets - January 1, 1999
676,282
Unrestricted Net Assets - December 31, 1999
$654,282
See
Accompanying Notes to the Financial Statements
.
AMERICAN BOARD OF INDUSTRIAL HYGIENE
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1999
Operating Activities
Decrease in Net Assets
$( 21,903)
Add: Adjustments to reconcile changes in net assets
to record cash provided by operating activities;
Depreciation
10,242
Amortization
297
Loss on Disposition of Office and
Computer Equipment
3,202
Changes in:
Unrealized Gain on Investments
(11,023)
Accrued Interest Receivable
1,554
Prepaid Expenses and Deposit
( 3,099)
Deferred Membership Dues
71,090
Accounts Payable
1,972
Accrued Expenses
83
Net Cash Provided By Operating Activities
$ 52,415
Investing Activities
Purchases of Office and Computer Equipment
( 26,693)
Trademark Costs Incurred
(
5,038)
Acquisition of Investments
(289,310)
Liquidation of Investments
216,202
Net Cash Utilized in Investing Activities
(104,839)
Decrease in Cash
$( 52,424)
Cash - January 1, 1999
$231,213
Cash - December 31 1999
178,789
Decrease in Cash
$ ( 52,424)
See
Accompanying Notes to the Financial Statements
.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1999
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 2000 were billed in November 1999, and income on
this billing has been deferred until 2000. Collections of 1999 dues, and
those of all prior years (plus applicable reinstatement fees) have been
reported as 1999 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 estimated by Merrill Lynch &
Company. Based on historical cost, Board investments are valued at
$594,372 at December 31, 1999.
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, and the remaining monthly rental is 2,051.75.
Note 5 - Related Organization
In 1999 a referendum of Board Diplomates authorized the merger of the
Academy of Industrial Hygiene (previously created by the Board) with the
American Industrial Hygiene Association. This merger took place effective
January 1, 2000, and Academy assets at that date were transferred to Board
control.
Note 6 - Leasing of Equipment- Administrative Offices
a. The Board is leasing telecommunications equipment from A.T.&T. Credit
Corporation. The monthly rental is $85.32, and the lease terminates in the
October 2001.
b. The Board is leasing postage equipment from Pitney Bowes Leasing
Corporation. The quarterly rental is $642.36, and the lease terminates
November 30, 2002.
c. The Board is leasing a Sharp copier from IOS Capital, Inc. The monthly
rental is $213.00, and the lease terminates in November 2001.
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.
SCHEDULE OF MARKETABLE SECURITIES
DECEMBER 31, 1999
$60,000 Certificate of Deposit, Bankers Trust Company, New York, NY, 6.25%, Due May
22, 2000
$ 59,910
$40,000 Certificate of Deposit, Manufacturers and Traders Trust Co., Buffalo, NY, 6.25%,
Due May 30, 2000
39,939
$40,000 Certificate of Deposit, S & T Bank, Indiana, PA, 6.00%, Due July 21,2000
39,849
$65,000 Certificate of Deposit, Harris Savings Bank, Harrisburg, PA, 5.80%, Due
December 11, 2000
64,346
$60,000 Certificate of Deposit, First National Bank of Commerce, New Orleans, LA,
58,831
5.75%, Due October 17, 2001
$50,000 Certificate of Deposit, Provident Bank of Maryland, Baltimore, MD, 5.67%, Due
May 22, 2002
48,617
$50,000 Federal National Mortgage Association Callable Note, 6.45%, Due February 14,
2002
49,500
$50,000 Federal National Mortgage Association Callable Note, 5.31%, Due December
22, 2003
47,406
$50,000 Federal National Mortgage Association Callable Note, 5.25%, Due December
23, 2003
47,041
20,272 Shares, Equity Income Fund (Incl. Reinv. Dividends)
62,237
41,835 Shares, Blue Chip Asset Fund (Incl. Reinv. Dividends)
42,253
42,097 Shares, Principal Values Defined Asset Fund (Incl. Reinv. Dividends)
45,466
Total Marketable Securities
$605,395
See
Accompanying Notes to the Financial Statements
.
EXECUTIVE DIRECTOR'S OFFICE EXPENSES
YEAR ENDED DECEMBER 31, 1999
Payroll
$289,838
Payroll Taxes
21,585
Staff Travel
16,525
Telephone
8,324
Bank Charges and Credit Card Fees
5,103
Office Supplies
14,331
Insurance
4,598
Postage
28,214
Printing
48,161
Repairs and Maintenance
1,944
Rent
24,621
Hospitalization and Employee Benefits
15,695
Payroll Service
843
Pension and Pension Fees
17,327
Videos and Seals
9,277
Examination Development
33,062
Joint Council Dues
600
Accounting
10,800
Legal (Excluding Trademark Costs)
2,950
Loss on Disposition of Office Equipment
3,202
Depreciation
10,242
Amortization
297
Total
$567,539
See
Accompanying Notes to the Financial Statements
.
This financial report was posted on June 2, 2000 following review and approval
by the Board.