About ABIH - Audit Report - CY 96.htm

About ABIH - Audit Report - CY 96.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 balance sheet of the American Board of Industrial Hygiene as of December 31, 1996, and the related statements of revenues, expenses, and changes in fund balance 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 1 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, 1996, and the results of its operations and its ...

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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 balance sheet of the American Board of
Industrial Hygiene as of December 31, 1996, and the related statements of
revenues, expenses, and changes in fund balance 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 1 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, 1996, and the results of its operations and its cash
flows for the year then ended, in conformity' with generally accepted accounting
principles.
Certified Public Accountant
February 24, 1997
AMERICAN BOARD OF INDUSTRIAL HYGIENE
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
Cash
Merrill Lynch - WCMA Account
$367,060
Community First Bank - Savings Account
21,241
Merrill Lynch - Brokerage Account
9,726
Total Cash
$398,027
Marketable Securities (at cost)
527,828
(See
Note 2f
and
Accompanying Schedule
)
AAIH Expense Reimbursements Receivable
2,542
Accrued Interest Receivable
5,308
Prepaid Expenses and Deposit
7,841
Office and Computer Equipment
103,883
Less: Accumulated Depreciation
64.801
39,082
Trademark Costs, Net of Amortization
2,672
TOTAL ASSETS
$983,300
LIABILITIES AND FUND BALANCE
Liabilities
Deferred Membership Dues
$234,500
Accounts Payable
2,625
Accrued Expenses
7,617
Total Liabilities
$244,742
Fund Balance
738,558
TOTAL LIABILITIES AND FUND BALANCE
$983,300
STATEMENT OF REVENUES, EXPENSES. AND CHANGES IN FUND
BALANCE
YEAR ENDED DECEMBER 31, 1996
Revenues
Application Fees
$121,160
Examination Fees
152,880
Diplomate Dues and Roster Fees
428,660
Interest Income - NOW Accounts
2,803
WCMA Dividend Income
3,093
Investment Income
38,384
AAIH Contract
8,500
Seals, Videos, and Other Income
5,180
Total Revenues
$760,660
Expenses
Meetings - Board and Committee
$ 31,718
Regional Examination Administration
7,799
Examinations
28,381
Executive Director's Office
589,064
AAIH Per Capita Payment
86,280
Total Expenses
743,242
Excess of Revenues Over Expenses
17,418
Fund Balance - January 1, 1996
721,140
Fund Balance - December 31, 1996
$738,558
STATEMENT OF CASH FLOWS
YEAR ENDED DECEMBER 31, 1996
Operating Activities
Excess Of Revenues Over Expenses For The Year
$ 17,418
Add: Expenses Not Requiring The Use Of Cash:
Depreciation
15,106
Amortization
297
Subtotal
32,821
Decrease in Accrued Interest Receivable
9,227
Increase in AAIH Expense Reimbursements Receivable
( 487)
Decrease in Prepaid Expenses and Deposit
4,151
Increase in Deferred Membership Dues
20,780
Decrease in Accounts Payable
(2,814)
Increase in Accrued Expenses
1,555
Net Cash Provided By Operating Activities
$
65,233
Investing Activities
Purchases of Office and Computer Equipment
( 7,700)
Acquisition of Marketable Securities
(252,000)
Liquidation of Marketable Securities
361,790
Net Cash Used By Investing Activities
102,090
Increase in Cash
$167,323
Cash - January 1, 1996
$230,704
Cash - December 31 1996
398,027
Increase in Cash
$167,323
See
Accompanying Notes to the Financial Statements
.
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 1996
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 is stated at cost. 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 1997 were billed in November 1996, and income on
this billing has been deferred until 1997. Collections of 1996 dues, and
those of all prior years plus applicable reinstatement fees) have been
reported as 1996 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 amount of the Board's functions are conducted by unpaid
officers and directors. The value of this contributed time is not reflected in
the accompanying financial statements, because it is not susceptible to
objective measurement or valuation.
f. Marketable securities consist of bank certificates of deposit. The Board
has purchased these certificates with the intent of holding them until
maturity (the latest maturity date is in May 2000). These securities are
traded and have been purchased on the secondary market. Based on
historical cost, Board securities are valued at $527,828 as of December
31, 1996. The market value of these securities at that date (excluding
accrued interest) was $525,682.
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 Street, Lansing, Michigan. The term is five years and one
month, ending October 31, 2000. Monthly rentals during this term are as follows:
Years Ended 10/31/96 and 10/31/97 $1,910.25
Year Ended 10/31/98
1,981.00
Years Ended 10/31/99 and 10/31/00 2,051.75
Note 5 - AAIH Contract
a. The Board has an ongoing contract to provide administrative services for
the American Academy of Industrial Hygiene, a related organization
created by the Board. This contract has been renewed for an additional
one-year term ending December 31, 1997. The Board will be paid $9,000
for these services, and will be reimbursed for expenses incurred during its
performance.
b. Except as relating to the above contract, these financial statements do not
include any of the transactions of the American Academy of Industrial
Hygiene.
Note 6 - Leasing of Telephone Equipment
The Board is leasing telephone equipment from A.T.& T. Credit Corporation for
use in it's Lansing, Michigan 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 1996 lease payments are included as part of the organization's Telephone
Expense.
Note 7 - Leasing of Postal Equipment
The Board is leasing postage equipment from Pitney Bowes Leasing Corporation
for use in it's Lansing, Michigan administrative offices. The quarterly rental is
$561.60, terminating in April 1997.
Note 8 - 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, 1996
$56,000 Certificate of Deposit, Tokai Bank, Los Angeles, CA, 5.90%, Due May 27, 1997
$ 55,895
$60,000 Certificate of Deposit, Colonial Bank, Montgomery, AL, 5.65%, Due October 16,
1997
60,000
$50,000 Certificate of Deposit, First Bank of South Dakota, Sioux Falls, SD, 6.93%, Due
November 27, 1997
49,933
$60,000 Certificate of Deposit, First Indiana Bank, Indianapolis, IN, 6.40%, Due May 4,
60,000
1998
$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 May 28, 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
Total Marketable Securities
$527,828
EXECUTIVE DIRECTOR'S OFFICE EXPENSES
YEAR ENDED DECEMBER 31, 1996
Payroll
$277,222
Payroll Taxes
21,373
Staff Travel
16,014
Telephone
9,496
Bank Charges
2,914
Credit Card Fees
2,467
Office Supplies
14,275
Insurance
4,192
Postage
29,226
Printing
48,439
Repairs and Maintenance
1,619
Rent
22,923
Hospitalization and Employee Benefits
17,001
Payroll Service
1,053
Pension and Pension Fees
16,912
Unification Task Force
23,609
Videos and Seals
34,197
Examination Development
4,909
Joint Council Dues
600
Accounting
10,300
Legal
2,975
Miscellaneous Board Travel
11,945
Depreciation
15,106
Amortization
297
Total
$589,064
See
Accompanying Notes to the Financial Statements
.
Copyright American Board of Industrial Hygiene, 1996 - 2000, all rights reserved.