2018 Financial Audit

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.

Auditor's Responsibility

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.

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.

Cash Receipts 2018 2017
Dues and Agency Fees $1,045,027 $1,070,271
Local Aid $37,324 $34,206
Other Income $6,051 $3,712
Interest $1,885 $357
Total Cash Receipts $1,090,287 $1,108,546

 

Cash Disbursements

2018 2017
Dues - MTA/NEA $947,641 $931,683
Stipends $59,650 $59,329
Local Chapter Support $15,936 $16,439
Mileage Reimbursement $10,709 $12,205
Meals $8,841 $7,207
Audit and Tax Service $8,090 $7,300
Conferences/Lodging $7,551 $2,938
Tax Payment $6,038 $5,817
Miscellaneous $3,374 $2,220
Office Equipment $2,863  -
Professional Fees $650 $1,850
Retirement Gifts $505  -

Total Cash Disbursements

$1,071,848

$ 1,046,988

 

  2018 2017

Increase in cash

$18,439 $61,558
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.

Subsequent Events

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.

  2018 2017

Officers and Executive Board Members  

$44,350

$44,204

Health and Welfare Representative $900 $900
Membership Clerical and Coordinator $14,000 $14,225
Sub-total $59,650 $59,329
Mileage Reimbursements to Executive Board Members $10,709 $12,205
Total $70,359 $71,534

 

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:

  2018 2019

Bridgewater State University

$4,242

$4,158

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
Total $15,936 $16,439

 

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.