For the Years Ended June 30, 2018 and 2017
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 and disbursements of Association of Professional Administrators for the years ended June 30, 2018 and 2017, 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 statement 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, 2018 and 2017, 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. The 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||$1,045,027||$1,070,271|
|Total Cash Receipts||$1,090,287||$1,108,546|
|Dues - MTA/NEA||$947,641||$931,683|
|Local Chapter Support||$15,936||$16,439|
|Audit and Tax Service||$8,090||$7,300|
Total Cash Disbursements
Increase in cash
|Cash - Beginning||$362,327||$300,769|
|Cash - Ending||$380,766||$362,327|
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 receipts and disbursements basis of accounting, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. 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.
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, 2018, through the date which the financial statement was available to be issued, January 12, 2019, 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. 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 the amount of $225, and the appointed Membership Coordinator of each chapter receives a stipend ranging from $125 to $225 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, and $350 to the Data Coordinator.
Officers and Executive Board Members
|Health and Welfare Representative||$900||$900|
|Membership Clerical and Coordinator||$14,000||$14,225|
|Mileage Reimbursements to Executive Board Members||$10,709||$12,205|
NOTE 4. 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.
Accounting principles generally accepted in the United States of America ("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, 2018 and 2017, 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 5. LOCAL CHAPTER SUPPORT
For the years ending June 30, 2018 and 2017, local chapter support consisted of the following:
Bridgewater State University
|Fitchburg State University||$1,744||$2,338|
|Massachusetts College of Art and Design||$1,800||$1,000|
|Massachusetts College of Liberal Arts||$981||$908|
|Massachusetts Maritime Academy||-||$648|
|Salem State University||$3,488||$4,173|
|Westfield State University||$2,340||$2,282|
|Worcester State University||$1,341||$932|
NOTE 6. MEMBERSHIP DUES
Each member of the Association is required 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, 2018 and 2017 amounted to $947,641 and $931,683, respectively.