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Weekly UpdatesCalCPA TREASURER'S REPORT
CalCPA finished its first century solidly. This last year presented a number of challenges both financially and to the profession. We met those challenges and we are ready for another century of growth and advancement. Membership continues to grow. We have more than 35,000 members, making us the largest state CPA society.
Operationally CalCPA had a very strong year, which resulted in an increase in net assets before investment losses of $1,744,000. The membership and organization both contributed to this increase. Our member retention rate was 94 percent for licensed CPA members, and dues revenue grew 13 percent over the previous year. Also, CalCPA responded to the uncertain financial and business climate with a concerted effort to reduce costs. The most significant reductions were in personnel costs, primarily due to a hiring freeze, reduced travel and training. Other major cost savings were achieved by electronically distributing member materials. We continue to realize substantial efficiencies and cost savings by combining administrative efforts of the Education Foundation and CalCPA.
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Last fiscal year, a decision was made to terminate and liquidate the defined benefit pension plan. In hindsight, this was a great decision. We avoided what would have been a significant increase in the cost of the plan due to the overall decline in the market. As of the end of the calendar year, the plan has been completely liquidated and is no longer a liability.
CalCPA continues to support those interested in joining our profession through contributions to the CalCPA Institute. Our members contributed via direct contributions, financial literacy programs and chapter events. We gave out almost $294,000 in scholarships. Additionally. CalCPA contributed $50,000 to the AICPA Foundation Doctoral Scholarship.
We are looking forward to another year of supporting the profession in California and nationally. Our break-even budget for 2009-10 continues to support strong member services, membership growth and government advocacy
--Conrad Davis, CPA
CALIFORNIA CPA EDUCATION FOUNDATION TREASURER'S REPORT
The Education Foundation has completed another successful year with operating revenues totaling $13.8 million. Attendance at our courses and conferences remained strong this year, and resort CE weeks were well received. Enhancements to our e-learning offerings, expansion of our instructor base, new courses and focused marketing efforts have contributed to this success. Expenses were controlled, primarily due to negotiations of on-site meeting costs, electronic marketing and the efficiency of shared services with CalCPA.
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Though results of operations were very strong, the Foundation experienced significant investment losses due to poor market conditions, and an overall decrease in net assets. At year-end, net assets were still healthy at $4.8 million.
The marketplace is increasingly competitive, but the Foundation is poised to meet those challenges. We are focused on learning trends and proactively responding to a changing environment. The Foundation will continue to pursue its goal to provide high-value, quality professional education and strive to meet and exceed the expectations of our customers and you, the members.
Michelle Walters, CPA
To the Council of the California Society of Certified Public Accountants
To the Board of Trustees of the California Certified Public Accountants Education Foundation
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying combining statements of financial position of the California Society of Certified Public Accountants (Society) and California Certified Public Accountants Education Foundation (Foundation) as of April 30, 2009 and 2008, and the related combining statements of activities, functional expenses, and cash flows for the years then ended. These financial statements are the responsibility of the management of the Society and the Foundation. 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 combining financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Society's and Foundation's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, 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 combining financial position of the California Society of Certified Public Accountants and California Certified Public Accountants Education Foundation as of April 30, 2009 and 2008, and the changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.
Certified Public Accountants Sacramento, California
June 8, 2009
* Access the Annual Report online at www.calcpa.org or www.educationfoundation.org
The accompanying notes are an integral part of these financial statements.
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