2003 annual report - California Society of Certified Public Accountants

California CPA, Sept, 2003

3. PEER REVIEW PROGRAM

The financial statements of CalCPA include the operations of the Peer Review Program, which administers the American Institute of Certified Public Accountants Peer Review Program in California, Arizona and Alaska. Peer review expenses are included in other activities in the statements of activities and of functional expenses. Revenues, expenses and net assets for the division ewe summarized as follows:

                                     2003    2002

Revenues:
  Registration fees                 $ 738   $ 746
  Processing and review fees          175     193
   Total peer review fees             913     939
  Interest income                      10      23
  Other income                         13      13
    Total revenue                     936     975

Expenses:
  Reviewer costs and
    operating expenses                904     977
Increase (decrease) in net assets      32     (2)
Net assets, beginning of year         460     462
Net assets, end of year             $ 492   $ 460

4. INVESTMENTS

Investments consist of the following:

                          CalCPA   Foundation   Consolidated
2003

U.S. government
  obligations                          $  911            911
GNMA mortgage pool                        194            194
Other debt securities    $ 2,080          925          3,005
EXuity securities          4,091        3,031          7,122

Total                    $ 6,171        5,061         11,232

2002

U.S. government
  obligations                555          950          1,505
GNMA mortgage pool           124          314            438
Other debt securities        419          867          1,286
Equity securities          1,716        3,303          5,019

Total                    $ 2,814      $ 5,434        $ 8,248

Investment income (loss) consists of the following:

                          CalCPA   Foundation   Consolidated
2003
Interest and dividends     $ 209       $  198         $  407
Net realized and
  unrealized losses        (158)        (330)          (488)
Investment income             51        (132)           (81)
Less investment
  expenses                  (35)         (71)          (106)
Investment
  income (loss), net       $  16      $ (203)        $ (187)

2002

Interest and dividends       270      $   239        $   509
Net realized and
  unrealized losses        (161)        (239)          (400)
Investment income            101                         109
Less it ivestment
  expenses                  (50)        (107)          (157)
Investment
  income (loss), net       $  59      $ (107)        $  (48)

5. PROPERTY AND EQUIPMENT

Property and equipment consist of the following:

                          CalCPA   Foundation   Consolidated

2003

Equipment                  $ 982        $ 609        $ 1,591
Software                     665          661          1,326
Furniture                    263          131            394
Leasehold improvements       656           94            750

Total                      2,566        1,495          4,061

Less accumulated
  depreciation and
  amortization           (1,884)        (913)        (2,797)

Property and
  equipment, net             682          582          1,264

2002

Equipment                  $ 998          844          1,842
Software                     647          570          1,217
Furniture                    257          121            378
Leasehold improvements       656           94            750

Total                      2,558        1,629          4,187

Less accumulated
  depreciation and
  amortization           (1,633)        (900)        (2,533)

Property and
  equipment, net           $ 925        $ 729        $ 1,654

6. DEFERRED REVENUES

Deferred revenues consist of the following:

CalCPA:                              2003      2002

  Dues                            $ 3,396   $ 3,676
  Peer review registration fees       593       580
  Advertising                         143       174
Annual meeting fees                    11        11

    CalCPA total                    4,143     4,441

Foundation:
  Registration fees, including
  Value Pricin? VP ropram           1,793     1,455

Consolidated                      $ 5,936   $ 5,896