575.01 Audit 2008

Droberson

Description

International Association of Assessing Officers Accountants’ Report and Financial Statements December 31, 2008 and 2007 International Association of Assessing Officers December 31, 2008 and 2007 Contents Independent Accountants’ Report........................................................................................1 Financial Statements Statements of Financial Position ........................................................................................................ 2 Statements of Activities...................................................................................................................... 3 Statements of Cash Flows........... 4 Notes to Financial Statements ............................................................................................................ 5 th120 W. 12 Street, Suite 1200 Kansas City, MO 64105-1936 816.221.6300 Fax [phone] www.bkd.com Independent Accountants’ Report Executive Board International Association of Assessing Officers Kansas City, Missouri We have audited the accompanying statements of financial position of the International Association of Assessing Officers as of December 31, 2008 and 2007, and the related statements of activities and cash flows for the year ended December 31, 2008 and the fourteen-month period ended December 31, 2007. These financial statements are the responsibility of the Association’s management. Our ...

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• Publié par: Movong
• Nombre de lectures: 101
• Langue: English

Extrait

 

International Association of Assessing Officers s  

Accountants’ Report and Financial St

December 31, 2008  and  2007  

 

atement

      International Association of Assessing Officers December 31, 2008 and 2007  

  Contents   Independent Accountants Report........................................................................................ 1 ’   Financial Statements Statements of Financial Position ........................................................................................................ 2 Statements of Activities...................................................................................................................... 3 Statements of Cash Flows .................................................................................................................. 4 Notes to Financial Statements ............................................................................................................ 5      

 

   

120 W. 12 th Street, Suite 1200 Kansas City, MO 64105-1936 816.221.6300 Fax [phone] www.bkd.com  

        ’ Independent Accountants Report       Executive Board International Association of Assessing Officers Kansas City, Missouri   We have audited the accompanying statements of financial position of the International Association of Assessing Officers as of December 31, 2008 and 2007, and the related statements of activities and cash flows for the year ended December 31, 2008 and the fourteen-month period ended December 31, 2007. These financial statements are the responsibility of the Association’s management. Our re- sponsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we 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 state- ments. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the International Association of Assessing Officers as of December 31, 2008 and 2007, and the changes in its net assets and its cash flows for the year and fourteen-month period then ended in conformity with accounting principles generally accepted in the United States of America. As discussed in Note 8 to the financial statements, in 2008 the Association changed its method of ac- counting for fair value measurements in accordance with Statement of Financial Accounting Stan- dards No. 157.    /s/ BKD, LLP   Kansas City, Missouri April 9, 2009      

 

 

International Association of Assessing Officers Statements of Financial Position December 31, 2008 and 2007    

Assets Cash and cash equivalents Accounts receivable, net of allowance; 2008 - $2,600, 2007 - $3,535 Inventories Prepaid expenses Investments Contributions receivable, net of allowances Property and equipment, net of accumulated depreciation and amortization Total assets

      Liabilities and Net Assets Liabilities Accounts payable and accrued expenses Deferred revenue Note payable Total liabilities Net Assets Unrestricted Temporarily restricted Total net assets Total liabilities and net assets

eS eNotes to Financial tSateemtn s

2008 $ 2,601,912  400,193  52,737  216,261  1,775,776  4,584  1,749,905 $ 6,801,368

$ 132,458  995,339  575,269  1,703,066  4,842,681  255,621  5,098,302 $ 6,801,368

2007 $ 2,366,745  310,125  46,498  275,976  1,428,681  11,000  1,675,092 $ 6,114,117

$ 190,067  803,748  882,440  1,876,255  3,995,601  242,261  4,237,862 $ 6,114,117

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International Association of Assessing Officers Statements of Activities Year Ended December 31, 2008 and Fourteen-Month Period Ended December 31, 2007   2008 Temporarily Restricted $ 21,161  5,090  (12,891)  13,360

Revenues Membership dues and fees Annual conference Publications and marketing Research and information Education and professionalism Contributions Interest and dividend income Net realized and unrealized losses on investments Other Net assets released from restrictions Total revenues Expenses Program services Annual conference Publications and marketing Research and information Education and professionalism Membership services Total program services Management and general Total expenses Change in Net Assets Net Assets, Beginning of Year Net Assets, End of Year

See Notes to Financial Statements

Unrestricted $ 1,268,396  693,479  337,904  291,637  1,717,707  16,488  82,857  (8,330)  2,730  12,891  4,415,759

 468,032  503,343  298,259  822,334  619,991  2,711,959  856,720  3,568,679  847,080  3,995,601 $ 4,842,681

 13,360  242,261 $ 255,621

Total $ 1,268,396  693,479  337,904  291,637  1,717,707  37,649  87,947  (8,330)  2,730 -                            4,429,119

 468,032  503,343  298,259  822,334  619,991  2,711,959  856,720  3,568,679  860,440  4,237,862 $ 5,098,302

 

 

Revenues Membership dues and fees Annual conference Publications and marketing Research and information Education and professionalism Contributions Interest and dividend income Net realized and unrealized gains on investments Other Net assets released from restrictions Total revenues Expenses Program services Annual conference Publications and marketing Research and information Education and professionalism Membership services Total program services Management and general Total expenses Change in Net Assets Net Assets, Beginning of Year Net Assets, End of Year

           

Unrestricted $ 1,473,363  749,886  343,515  155,297  1,800,475  20,550  150,535  13,300  11,766  20,189  4,738,876

 613,056  587,557  172,776  753,376  730,283  2,857,048  924,667  3,781,715  957,161  3,038,440 $ 3,995,601

2007 Temporarily Restricted $ 32,159  5,692  (20,189)  17,662

 17,662  224,599 $ 242,261

Total $ 1,473,363  749,886  343,515  155,297  1,800,475  52,709  156,227  13,300  11,766                           -  4,756,538

 613,056  587,557  172,776  753,376  730,283  2,857,048  924,667  3,781,715  974,823  3,263,039 $ 4,237,862

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International Association of Assessing Officers Statements of Cash Flows Year Ended December 31, 2008 and Fourteen-Month Period Ended December 31, 2007     2008 Operating Activities Change in net assets $ 860,440 Items not requiring (providing) operating activities cash flows Depreciation and amortization 139,702 Net realized and unrealized (gains) losses on investments 8,330 Changes in Accounts receivable (90,068) Inventories (6,239) Prepaid expenses 59,715 Accounts payable, accrued expenses and other (57,609) Deferred revenue 191,591 Net cash provided by operating activities 1,105,862 Investing Activities Purchase of property and equipment (214,515) Net purchases of investments (355,425) Net cash used in investing activities (569,940) Financing Activities Proceeds from contributions restricted for acquisition of long-lived assets Principal payments on long-term debt Net cash used in financing activities Increase in Cash and Cash Equivalents Cash and Cash Equivalents, Beginning of Year Cash and Cash Equivalents, End of Year Supplemental Cash Flows Information Interest paid

See Notes to Financial Statements

 6,416  (307,171)  (300,755)  235,167  2,366,745 $ 2,601,912 $ 43,864

2007 $ 974,823  130,853  (13,300)  (31,504)  (200)  (189,640)  59,498  111,947  1,042,477  (206,645)  (71,697)  (278,342)

 16,900  (291,057)  (274,157)  489,978  1,876,767 $ 2,366,745 $ 78,483

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International Association of Assessing Officers Notes to Financial Statements December 31, 2008 and 2007     Note 1: Nature of Operations and Summary of Significant Accounting Policies

 

Nature of Operations International Association of Assessing Officers (the “Association”) is a not-for-profit organization of approximately 7,200 members whose mission and principal activities are to provide leadership in accu- rate property valuation, property tax administration and property tax policy. The major services provided by the Association to members include conducting an annual meeting, conducting professional develop- ment workshops and seminars, performing research, providing technical assistance and publishing a jour- nal, a magazine and several electronic newsletters, as well as various textbooks and reference books in the area of ad valorem taxation. The Association’s revenues and other support are derived principally from the sale of education course materials, as well as membership fees, meeting/seminar registration fees, the sale of publications and advertising revenue. The Association’s services are provided to mem- bers and others throughout the world, but principally within the United States and Canada. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues, expenses gains, losses and other changes in net assets during the reporting period. Actual results could differ from those estimates. Cash Equivalents The Association considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2008 and 2007, cash equivalents consisted primarily of money market accounts and repurchase agreements. The financial institution holding the Association’s cash accounts is participating in the FDIC’s Transaction Account Guarantee Program. Under that program, through December 31, 2009, all noninterest-bearing transaction accounts are fully guaranteed by the FDIC for the entire amount in the account. Effective October 3, 2008, the FDIC’s insurance limits increased to $250,000. The increase in federally insured limits is currently set to expire December 31, 2009. At December 31, 2008, the Association’s interest-bearing cash accounts exceeded federally insured limits by approximately $2,400,000. Investments and Investment Return Investments in equity securities having a readily determinable fair value and in all debt securities are carried at fair value. Other investments are valued at the lower of cost (or fair value at time of donation, if acquired by contribution) or fair value. Investment return includes dividend, interest and other investment income; realized and unrealized gains and losses on investments carried at

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International Association of Assessing Officers Notes to Financial Statements December 31, 2008 and 2007     fair value; and realized gains and losses on other investments. Investment return is reflected in the statements of activities as unrestricted, temporarily restricted or permanently restricted based upon the existence and nature of any donor or legally imposed restrictions. Accounts Receivable Accounts receivable are stated at the amounts billed to customers, plus any late charges. The Association provides an allowance for doubtful accounts, which is based upon a review of out- standing receivables, historical collection information and existing economic conditions. Accounts that are unpaid after the due date are charged a 1.5% late fee. Delinquent accounts are not turned over to collection agencies; however, are identified to prevent any additional sales. The delin- quency of accounts is based upon past due status in accordance with payment terms. Delinquent receivables are written off based on individual credit evaluation and specific circumstances of the customer. Property and Equipment Property and equipment are depreciated on a straight-line basis over the estimated useful life of each asset. Leasehold improvements are depreciated over the shorter of the lease term or their respective estimated useful lives. Temporarily Restricted Net Assets Temporarily restricted net assets are those whose use by the Association has been limited by donors to a specific time period or purpose. Contributions Gifts of cash and other assets received without donor stipulations are reported as unrestricted revenue and net assets. Gifts received with a donor stipulation that limits their use are reported as tem- porarily or permanently restricted revenue and net assets. When a donor stipulated time restric- tion ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Gifts having donor stipulations, which are satisfied in the period the gift is received are reported as un- restricted revenue and net assets. Gifts and investment income that are originally restricted by the do- nor and for which the restriction is met in the same time period are recorded as temporarily restricted and then released from restriction. Unconditional gifts expected to be collected within one year are reported at their net realizable value. Unconditional gifts expected to be collected in future years are initially reported at fair value determined using the discounted present value of estimated future cash flows technique. The resulting discount is amortized using the level-yield method and is reported as contribution revenue.

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International Association of Assessing Officers Notes to Financial Statements December 31, 2008 and 2007     Conditional gifts depend on the occurrence of a specified future and uncertain event to bind the potential donor and are recognized as assets and revenue when the conditions are substantially met and the gift becomes unconditional. Contributed Services A significant amount of donated services is contributed to the Association by various members to support the Association’s program and supporting services. These volunteer activities include par- ticipating on the Executive Board and numerous other committees. The value of theses services has not been included in the financial statements. Inventory Pricing Inventories consist of primarily finished course materials and publications. Inventories are stated at the lower of cost or market. Costs of the inventory are determined using the first-in, first-out (FIFO) method. Inventory is shown net of a reserve for obsolete or slow moving items of $13,654 and $19,328 in 2008 and 2007, respectively. Deferred Revenue Revenue from fees for annual membership dues is deferred and recognized over the periods to which the fees relate. Annual membership dues are on an anniversary date basis. Other deferred revenue consists of designation fees and advance payments received for advertising applicable to a future year. Income Taxes The Association is exempt from income taxes under Section 501 of the Internal Revenue Code and a similar provision of state law. However, the Association is subject to federal income tax on any unrelated business taxable income. Functional Allocation of Expenses The costs of supporting the various programs and other activities have been summarized on a func- tional basis in the statements of activities. Certain costs have been allocated among the program and supporting services based on the actual or estimated time employees spend on each function. Uncertain Tax Positions In accordance with Financial Accounting Standards Board (FASB) Staff Position No. FIN 48-3, the Association has elected to defer the effective date of FASB Interpretation No. 48 (FIN 48), Accounting for Uncertainty in Income Taxes , until its fiscal year ended December 31, 2009. The Association has continued to account for any uncertain tax positions in accordance with literature

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International Association of Assessing Officers Notes to Financial Statements December 31, 2008 and 2007     that was authoritative immediately prior to the effective date of FIN 48, such as FASB Statement No. 109, Accounting for Income Taxes , and FASB Statement No. 5, Accounting for Contingencies . Change in Year End The Association changed its fiscal year end from October 31 to December 31 in 2007.   Note 2: Investments Investments at December 31, 2008 and 2007 consisted of the following: 2008 $ 232,234  508,582  913,611  13,760  107,589 $ 1,775,776

Fixed income mutual funds Money market mutual funds Fixed income Equity securities Certificates of deposit

  Note 3: Property and Equipment Property and equipment at December 31, 2008 and 2007 consists of:

   

 

Land Buildings and leasehold improvements Furniture, fixtures and equipment Less accumulated depreciation and amortization

2008 $ 276,400  1,443,034  804,623  2,524,057  774,152 $ 1,749,905

2007 $ 237,919  413,525  657,578  14,190  105,469 $ 1,428,681

2007 $ 276,400  1,364,070  669,072  2,309,542  634,450 $ 1,675,092

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