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, 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.