By Jennifer Cryder, CPA, CFO and vice president – operations
The PICPA Board met on June 25, 2017, and at that meeting PICPA’s audited financial statements for the year ended April 30, 2017, were presented. I am pleased to report that the audited financial statements received an unmodified opinion! A copy of the statements can be found here. The combined statements include the accounts of the Pennsylvania Institute of Certified Public Accountants, the PICPA Foundation for Education & Research, the Pennsylvania CPA Foundation, and the Scholarship Fund of the Pennsylvania Institute of Certified Public Accountants.
The most significant change a reader of the statements might notice is the addition of the Pennsylvania CPA Foundation. This new entity was formed on April 1, 2017, with the mission to inspire students to pursue careers in accounting and to provide educational, motivational, and financial support to those working to attain the CPA credential. Although only one month’s activity is included for the fiscal year ended April 30, 2017, we at the PICPA are looking to the future with excitement as the Pennsylvania CPA Foundation gets off the ground!
For the year ended April 30, 2017, the assets of the combined group totaled $13,447,275. Taken together, cash, cash equivalents, and investments comprise $12,703,537 of the combined group’s assets. Liabilities for the combined group totaled $2,805,186, which are comprised primarily of deferred revenue. The combined group continues to have no long-term debt. Net assets of the combined group totaled $10,642,089: most are unrestricted, except for $2,508,886 restricted for the funding of college scholarships.
Unrestricted operating support and revenues for the combined group totaled $10,383,355 for the year ended April 30, 2017. About 45 percent of revenues came from membership dues, while another 41 percent came from the sale of continuing professional education programs. Operating expenses for the combined group totaled $10,905,150 for the period. About 49 percent of expenses were related to personnel costs, while another 22 percent were incurred in direct support of delivering continuing professional education. As a result, the combined group experienced a net loss from operations of $521,795. Investment returns net of spending policy allocations totaled $587,355, resulting in a change in unrestricted net assets of $65,560 for the period.
Moving forward we will be making adjustments to reflect the new ASU 2016-14 not-for-profit standard. I explored our approach in the blog, “Adjusting to the New Realities of Not-for-Profit Reporting.”