For the Years Ended June 30, 2020 and 2019
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors of
Association of Professional Administrators Boston, Massachusetts
We have audited the accompanying statements of cash receipts, disbursements, and changes in net assets of Association of Professional Administrators (a nonprofit organization) for the years ended June 30, 2020 and 2019 and the related notes to the financial statement.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with the cash basis of accounting described in Note 2, this includes determining that the cash basis of accounting is an acceptable basis for the preparation of the financial statements in the circumstances. Management is also responsible for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility 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 from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the financial statements referred to in the first paragraph present fairly, in all material respects, the cash receipts and disbursements of Association of Professional Administrators, for the years ended June 30, 2020 and 2019 in accordance with the cash basis of accounting described in Note 2.
Basis of Accounting
We draw attention to Note 2 of the financial statements, which describes the basis of accounting. These financial statements are prepared on the cash basis of accounting, which is a basis of accounting other than accounting principles generally accepted in the United States of America. Our opinion is not modified with respect to that matter.
|Dues and Agency Fees||$982,873||$1,000,938|
|Total Cash Receipts||$1,016,145||$1,044,889|
|Dues - MTA/NEA||$855,565||$896,551|
|Local Chapter Support||$13,864||$14,804|
|Audit and Tax Service||$7,569||$8,570|
|Conferences / lodging||$3,844||$6,921|
Total Cash Disbursements
Increase (decrease) in cash
|Cash - Beginning||$403,835||$380,766|
|Cash - Ending||$398,693||$403,835|
NOTE 1. ORGANIZATION
The Association of Professional Administrators (the "Association") is a Massachusetts nonprofit corporation chartered in 1983. The Association's purpose is to maintain and improve the quality of education for all and to advance the socioeconomic well-being of educators.
Members are engaged in work of a professional nature in the field of Massachusetts public higher education, specifically administrators in the Massachusetts state university system. The Association is a state-wide organization that has the following local chapters: Bridgewater State University, Fitchburg State University, Framingham State University, Massachusetts College of Art and Design, Massachusetts College of Liberal Arts, Massachusetts Maritime Academy, Salem State University, Westfield State University, and Worcester State University. Association members must also be members of the Massachusetts Teachers Association and the National Education Association.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
The accompanying financial statements have been prepared on the cash basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America ("U.S. GAAP"). Under that basis, the only asset recognized is cash, and no liabilities are recognized. All transactions are recognized as either cash receipts or disbursements. Noncash transactions are not recognized in the financial statements. The cash basis differs from U.S. GAAP primarily because accruals are not included in the financial statements.
Consequently, contributions and other revenue are recognized when received rather than when promised or earned, and expenses and purchases are recognized when cash is disbursed rather than when the obligation is incurred. The significant accounting policies followed by the organization are described below to enhance the usefulness of the financial statements to the reader.
If U.S. GAAP were used, revenues from membership dues and local aid would be recognized over time in the month the services were performed. Under U.S. GAAP, revenues from interest income and other income would be recognized at a point in time.
Revenue is derived from membership dues, local aid, interest income, and other income. Approximately 97% of revenue is attributable to membership dues and other revenues streams are immaterial.
Concentration of Credit Risk
The Association maintains its cash in bank accounts which may, at times, exceed insurers' limits. The Association has not experienced any losses in such accounts and believes that it is not exposed to any significant credit risks relating to its cash.
Use of Administrative Facilities
As part of its employment contract, the Massachusetts state university system has agreed to provide the Association with administrative office space and use of office equipment on the campus which employs the Association's treasurer. This benefit is not recognized in the financial statements.
The Association has evaluated all events subsequent to the statement of cash receipts and disbursements date of June 30, 2020, through the date which the financial statement was available to be issued, November 20, 2020, and has determined that there are no subsequent events that require disclosure under Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic Subsequent Events.
NOTE 3. AVAILABILITY AND LIQUIDITY
The Association's financial strategy is to maintain readily available financial assets to meet 90 days of operating expenses (approximately $252,000). The Association's readily available financial assets include cash which totals $398,693 at June 30, 2020.
NOTE 4. STIPENDS
Each of the four members of the Executive Board receives a monthly stipend whereas the President and Treasurer receive $425 and $350, respectively, and the Vice President and Secretary each receive $250 per month. Additional monthly stipends are given to each of the nine chapter presidents in amounts ranging from $225 to $275, the appointed Membership Coordinator of each chapter receives a stipend ranging from $100 to $225, and the Grievance Officer of each chapter receives a stipend ranging from $150 to $170, each being on a tiered system adjusting for the number of members in each chapter. The Association also provides a $75 monthly stipend for its appointed representative on the Health and Welfare Committee, $350 to the Data Coordinator, and $50 to the Web Manager.
Officers and Executive Board Members
|Health and Welfare Representative||$900||$900|
|Membership Clerical and Coordinator||$16,150||$16,900|
|Mileage Reimbursements to Executive Board Members||$11,454||$9,724|
NOTE 5. TAXES
The Association is a nonprofit organization pursuant to Section 501(c)(6) of the Internal Revenue Code (the "Code"), and therefore the Association is tax-exempt under Section 501(a) of the Code.
U.S. GAAP require management to evaluate tax positions taken by the Association and recognize a tax liability if the Association has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service ("IRS"). Management has analyzed the tax positions taken by the Association, and has concluded that as of June 30, 2020 and 2019, there are no uncertain positions taken or expected to be taken that would require recognition of a liability or disclosure in the financial statements. The Association is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress.
NOTE 6. LOCAL CHAPTER SUPPORT
For the years ending June 30, 2020 and 2019, local chapter support consisted of the following:
Bridgewater State University
|Framingham State University||$2,250||$458|
|Worcester State University||$2,211||$3,077|
|Fitchburg State University||$1,605||$1,858|
|Massachusetts College of Liberal Arts||$1,200||$1,799|
|Westfield State University||$1,132||$2,424|
|Massachusetts College of Art and Design||$126||$884|
NOTE 7. MEMBERSHIP DUES
Each member of the Association elects to pay membership dues. In conjunction with the members remitting their dues to the Association it also collects dues on behalf of the Massachusetts Teachers Association ("MTA") and the National Educators Association ("NEA"). On a monthly basis the Association forwards to the MTA funds related to the dues for the MTA and the NEA. Dues paid to the MTA during the years ended June 30, 2020 and 2019 amounted to $885,565 and $896,551, respectively.
NOTE 8. UNCERTAINTY
In 2020, the World Health Organization has declared COVID-19 to constitute a "Public Health Emergency of International Concern." The Association's business operations were disrupted due to the State mandated stay-at-home order and the closure of schools. However, given the uncertainty of this situation, an estimate of the financial impact to the Association, if any, cannot be reasonably estimated at this time.