2018-10-29T09:53:18-07:00 2018-07-31 990 2017-08-01 133448166 NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY INC NATI 6158804200 150 Fourth Avenue North Suite 700 Nashville TN 372192417 Michael Bryant Senior VP and CFO 6158804236 2018-10-29 174.195.128.172 2017 2018-06-14 16:35:46Z Kenneth L Bishop 150 Fourth Avenue North Suite 700 Nashville TN 37219 43656763 0 X www.nasba.org X 1987 DE NASBA's mission is to enhance the effectiveness and advance the common interests of the Boards of Accountancy. NASBA provides support to its members, the fifty-five jurisdictional Boards of Accountancy, by representing their common interests in relevant regulatory and licensing issues. NASBA's program activities enhance the member boards effective stewardship of the public interest by supporting the licensing and regulation of Certified Public Accountants through the individual Boards of Accountancy of the fifty states, the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. 20 20 201 213 164530 -12311 303106 301670 33327845 30241539 1575063 1562555 173113 164530 35379127 32270294 20000 25000 0 0 17750823 17950611 0 0 0 14580538 15872258 32351361 33847869 3027766 -1577575 59722179 64988218 7704294 9761547 52017885 55226671 NASBA's mission is to enhance the effectiveness and advance the common interests of the Boards of Accountancy. NASBA provides support to its members, the fifty-five jurisdictional Boards of Accountancy, by representing their common interests in relevant regulatory and licensing issues. NASBA's program activities enhance the member boards effective stewardship of the public interest by supporting the licensing and regulation of Certified Public Accountants through the individual Boards of Accountancy of the fifty states, the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. 0 0 Fifty-five jurisdictional Boards of Accountancy operating under individual state or territory governments issue licenses to and serve as regulators of Certified Public Accountants ("CPA"). NASBA developed and operates a National Candidate Database which is a central repository for all CPA Examination candidate information. The National Candidate Database helps Boards of Accountancy, as well as the CPA Examination contract partners, protect the personal data provided by candidates during the application and examination process. Approximately 257,000 CPA Examination sections were processed through the National Candidate Database during the twelve months ended July 31, 2018. In addition, services such as application processing, credential evaluations, and score reporting are provided to thirty-two Boards of Accountancy under contracts for pre-National Candidate Database eligibility requirements. NASBA also provides other related services which assist Boards of Accountancy in the examination process. By NASBA providing each of these services, it enables Boards of Accountancy to provide candidates for the CPA Examination with an operational pathway to the examination, an essential requirement in becoming a CPA. Regarded as a cornerstone of support to Boards of Accountancy, NASBA appoints volunteers and provides funding for committees and task forces annually. Through the work of these committees, NASBA volunteers and staff address current and emerging issues affecting Boards of Accountancy. Topics range from ethics, education, diversity, accounting standards, continuing professional education ("CPE"), peer review, enforcement and model rules for the member Boards of Accountancy consideration. During the current year, there were twenty-six such committees and task forces. NASBA also hosts conferences that provide a forum for members to connect and be informed on these topics, as well as to share best practices for enforcement, licensing issuance and regulation. These include an annual meeting for all Board of Accountancy members and staff, regional meetings which focus on and discuss issues specific to Boards of Accountancy in each region of the country, and conferences for executive directors and legal counsel who further the work of Boards of Accountancy. There were five such conferences held during the year. CPA's must comply with statutory licensing requirements that include participating in continuing professional education ("CPE") programs. NASBA maintains a National Registry of CPE Sponsors ("Registry") which recognizes CPE program sponsors who commit to meeting the highest CPE program standards. To be listed on the Registry, learning providers must demonstrate that professional competence of participating CPA's is enhanced by the programs offered. CPE program sponsors on the Registry qualify as approved providers of CPE for purposes of meeting Boards of Accountancy CPE licensing requirements. As of July 31, 2018, there were more than 2,200 approved CPE program sponsors on the Registry. In addition, NASBA provides tools that assist CPA's and CPA firms in achieving compliance with Boards of Accountancy licensing requirements related to CPE. NASBA also offers CPE Audit Services to Boards of Accountancy to use as an automated tool for conducting their audits of licensees compliance with CPE requirements. As a part of public protection, Boards of Accountancy require that CPAs be licensed and remain in good standing. To assist and support Boards of Accountancy in this requirement, NASBA provides various services. NASBA provides initial and renewal licensing services on behalf of Boards of Accountancy which helps make the licensing process more efficient for Boards of Accountancy and the licensee. These services include application processing, eligibility determination, score reporting, and education evaluation. In addition, NASBA maintains the Accountancy Licensee Database. This is a central repository of current licensee and firm information for participating jurisdictions (52 of 55) and is populated by official state regulatory data sent from Boards of Accountancy. It offers a single-source national database of CPAs who are currently licensed or have been previously licensed. The Accountancy Licensee Database is used to assist Boards of Accountancy in their regulatory operation through the sharing of this data. A similar database, CPAverify, is offered to the public. NASBA also provides licensing and practice privilege information related to all U.S. jurisdictions and Boards of Accountancy through the Accountancy Licensing Library and CPAmobility.org. 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 52 0 1 201 1 1 1 0 0 0 0 0 X 20 20 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X Michael R Bryant CPA 6158804200 150 Fourth Avenue North Suite 700 Nashville TN 372192417 X Theodore W Long Jr CPA Chair 16 0 X 0 0 0 Janice L Gray CPA Vice Chair 4 0 X 0 0 0 Telford A Lodden CPA Past Chair 4 0 X 0 0 0 W Michael Fritz CPA Director-at-Large 4 0 X 0 0 0 Jimmy E Burkes CPA Director-at-Large 4 2.00 X 0 0 0 J Coalter Baker CPA Director-at-Large 4 0 X 0 0 0 Maria E Caldwell CPA Director-at-Large 4 0 X 0 0 0 John F Dailey Jr CPA Director-at-Large 4 0 X 0 0 0 Tyrone E Dickerson CPA Director-at-Large 4 0 X 0 0 0 Raymond N Johnson CPA Ph D Director-at-Large 4 0 X 0 0 0 Richard N Reisig CPA Director-at-Large 4 0 X 0 0 0 E Kent Smoll CPA PFS CWS Director-at-Large 4 0 X 0 0 0 Catherine R Allen CPA Regional Director 4 0 X 0 0 0 C Jack Emmons CPA CFE Regional Director 4 0 X 0 0 0 Sheldon P Holzman CPA Regional Director 4 0 X 0 0 0 Sharon A Jensen CPA Regional Director 4 0 X 0 0 0 Nicola Neilon CPA Regional Director 4 0 X 0 0 0 Katrina Salazar CPA Regional Director 4 0 X 0 0 0 Stephanie S Saunders CPA Regional Director 4 0 X 0 0 0 Casey Stuart CPA Regional Director 4 0 X 0 0 0 Donald H Burkett CPA Past Chair 4 0 X 0 0 0 A Carlos Barrera CPA Director-at-Large 4 0 X 0 0 0 Laurie J Tish CPA Director-at-Large 4 0 X 0 0 0 Edwin G Jolicoeur CPA Regional Director 4 0 X 0 0 0 Kenneth L Bishop President and Chief Executive Officer 58 2 X 1184376 0 39115 Colleen K Conrad CPA Executive VP and Chief Operating Officer 60 0 X 512448 0 43529 Michael R Bryant CPA Senior Vice President and Chief Financial Officer 45 1 X 404245 0 44575 Maria-Lisa Caldwell Esq Chief Legal Officer; Director, Compliance Services 40 0 X 301364 0 48185 Cheryl R Farrar Chief Information Officer 40 0 X 313754 0 39055 Alfonzo D Alexander Chief Relationship Officer; Pres and COO - CPT 20 20 X 257911 0 49415 Edwin F Barnicott VP, Strategic Planning and Program Management 40 0 X 291585 0 45192 Daniel J Dustin CPA VP State Board Relations 40 0 X 210441 0 36190 Louise Dratler Haberman VP, Information and Research 40 0 X 219445 0 35698 Roy Hall Chief Information Security Officer 40 0 X 206847 0 24210 3902416 0 405164 27 0 1 0 Allen & Pinnix PA 1101 Oberlin Road Suite 102 Raleigh NC 27605 Attorney 559910 Core Tech Development LLC 139 Summerville Drive Apt 101 Tamuning Guam GQ 96913 Construction Contractor 188341 One Diversified LLC 1449 Donelson Pike Nashville TN 37217 Construction Contractor 197563 3 0 301670 0 0 0 0 0 301670 Examination related programs 541900 25455902 25455902 0 0 CPE related programs 541900 3720288 3720288 0 0 Licensing related programs 541900 653742 653742 0 0 Conference fees 541900 408995 408995 0 0 Communication related services 541900 2612 2612 0 0 0 0 0 0 30241539 1087822 0 0 1087822 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11861202 0 11386469 0 474733 0 474733 0 0 474733 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sale of mailing lists and labels 511140 14263 0 14263 0 Program services to non-CPA entities 541900 150267 0 150267 0 0 0 0 0 164530 32270294 30241539 164530 1562555 0 25000 0 0 3080478 0 11141546 650621 2208524 869442 0 711851 70134 0 0 129192 297317 108689 579155 6895821 0 1603671 1203486 0 1095737 710 0 775240 167437 Credit card fees 1436851 Examination administration costs 482077 Contribution to NASBA Center for the Public Trust 150000 Bank and payroll fees 98230 66660 33847869 0 0 0 105255 635331 7044422 5255630 0 0 3798462 1359210 0 0 0 0 0 0 0 0 777175 953286 9115687 2979112 4666782 6136575 36863141 40032998 1380212 1734165 0 0 4842274 8469994 244456 411029 59722179 64988218 6242984 7982989 48400 54150 218269 659801 0 0 0 0 0 0 0 0 0 0 1194641 1064607 7704294 9761547 X 52017885 55226671 0 0 0 0 52017885 55226671 59722179 64988218 X -1577575 804688 0 0 0 3981673 X 0 1 X 1 0 1 1 0 1 24486500 49138335 47752232 25872603 0 106438 0 7480 0 0 0 113918 98539 0 10399 0 0 2500 106438 100285 143 -1889 0 0 0 98539 97889 0 3503 0 0 1107 100285 94942 1181 2025 0 259 0 97889 0 0.8134 0.1866 0 0 0 0 0 0 304409 89743 214666 0 4198014 712292 3485722 0 2698048 1793520 904528 0 1915216 383557 1531659 6136575 0 Deferred rent credit 1052642 Capital lease obligation 11965 1064607 X 33299743 804688 0 0 353953 1158641 32141102 129192 0 129192 32270294 30090957 0 0 0 334931 334931 29756026 129192 3962651 4091843 33847869 Schedule D, Part IV, Line 1b NASBA entered into agreements with Prometric, Inc. ("Prometric"), a company that provides technology-enabled testing services, and the American Institute of Certified Public Accountants ("AICPA") to jointly deliver a computerized uniform CPA Examination. Under the terms of the agreement, NASBA collects from candidates the Prometric and AICPA fees related to the examination. These fees are held in escrow accounts in the names of the respective parties and are disbursed when services are provided. The escrow funds and the related obligations are not reported in the financial statements because they do not represent assets or obligations of NASBA. Schedule D, Part V, Line 4 The NASBA Center for the Public Trust, a subsidiary of NASBA and consolidated in NASBA's financial statements, has an endowment fund. The income generated from the endowment fund is used to benefit the Student Center for the Public Trust. Schedule D, Part X, Line 2 NASBA has adopted the recognition requirements for uncertain income tax positions and believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on NASBA's financial position, results of operations or cash flows. Accordingly, NASBA has accrued no interest or penalties related to uncertain tax positions at July 31, 2018 and 2017. It is NASBA's policy to recognize interest and penalties related to income tax matters in other expense. In general, NASBA is no longer subject to examinations by tax authorities for U.S. federal and state income tax returns before fiscal 2015. Schedule D, Part XI, Line 2d Income from investment in affiliate Schedule D, Part XII, Line 2d Amortization of software development costs Schedule D, Part XII, Line 4b Capitalized software development costs 1 Accounting education research 4 25000 0 N/A N/A Schedule I, Part I, Line 2 The grant recipients submit periodic reports to NASBA which are reviewed by the staff overseeing the grants. These reports describe the progress of the projects and how the grant funds have been used. X X X 1 1 X X X X X X 0 0 0 Kenneth L Bishop President and Chief Executive Officer 850590 0 200000 0 133786 0 22027 0 18971 0 1225374 0 0 0 Colleen K Conrad CPA Executive VP and Chief Operating Officer 436035 0 40000 0 36413 0 25182 0 20015 0 557645 0 0 0 Michael R Bryant CPA Senior Vice President and Chief Financial Officer 350142 0 35000 0 19103 0 19561 0 26949 0 450755 0 0 0 Maria-Lisa Caldwell Esq Chief Legal Officer; Director, Compliance Services 291364 0 10000 0 0 0 23837 0 27084 0 352285 0 0 0 Cheryl R Farrar Chief Information Officer 298754 0 15000 0 0 0 26432 0 13667 0 353853 0 0 0 Alfonzo D Alexander Chief Relationship Officer; Pres and COO - CPT 245911 0 12000 0 0 0 24401 0 26040 0 308352 0 0 0 Edwin F Barnicott VP, Strategic Planning and Program Management 281585 0 10000 0 0 0 26617 0 19619 0 337821 0 0 0 Daniel J Dustin CPA VP State Board Relations 198441 0 12000 0 0 0 18686 0 18957 0 248084 0 0 0 Louise Dratler Haberman VP, Information and Research 207445 0 12000 0 0 0 18510 0 18378 0 256333 0 0 0 Roy Hall Chief Information Security Officer 196847 0 10000 0 0 0 16211 0 9123 0 232181 0 0 0 Schedule J, Part I, Line 1a For extended flights as defined in the reimbursement policy, the President and Chief Executive Officer ("CEO") and the Chair of the Board of Directors ("Chair") may fly first class. The purchase of upgrades is encouraged as an economical alternative to first class when available. NASBA also provides for the travel of the spouse of the CEO, the spouse or guest of the Chair and, for specific events, the spouse or guest of the Vice Chair, the Vice Chair Elect, and Past Chairs of the Board of Directors based on certain spousal, or guest, duties related to the travel events. This is pursuant to a long-standing written travel reimbursement policy originally adopted by the Board of Directors in 1995. It was also adopted in writing for the current CEO's spouse as a part of his employment contract. NASBA provides for contractual gross-up payments related to the annual employer's retirement plan contributions for those officers whose annual compensation exceeds the limit as set by the Internal Revenue Service. Form 990, Part VI, Section A, Line 6 From the Bylaws: The members of the Association shall be the boards, departments or instrumentalities confirmed by the Board of Directors as legally constituted by their respective states, territories and the District of Columbia of the United States of America to pass on the qualifications of, or to examine applicants for certification or licensure as, certified public accountants or similar licensed categories, or to regulate the practice of public accountancy within their jurisdiction. Form 990, Part VI, Section A, Line 7a From the Bylaws: The Nominating Committee shall nominate annually one qualified candidate for Vice Chair, three candidates for Directors-at-Large for those whose terms are expiring at the Annual Meeting, and one candidate for Regional Director from each Region. If the Vice Chair cannot serve as Chair, then the Committee also shall nominate a candidate for Chair. The Nominating Committee shall deliver to the Chair a report which shall include its Annual Nominations. The report shall be included with the notice of the Annual Meeting and shall be presented by the Nominating Committee during the Business Session at the Annual Meeting. A majority vote of the Member Boards represented during the Business Session at the Annual Meeting (or by mail ballots for Vice Chair) shall constitute an election, provided a quorum is met. Form 990, Part VI, Section B, Line 11b NASBA's governing Board of Directors and Audit Committee have a high concentration of Certified Public Accountants, many of whom would be considered financial experts for the purposes of the Form 990. The Form 990 and all required schedules are made available to the Board of Directors and Audit Committee in electronic format before filing with the Internal Revenue Service. The management and staff of the organization prepare the Form 990 and it is distributed for review to the Audit Committee and Board of Directors. The Audit Committee and Board of Directors are given the opportunity to comment on the Form 990 prior to filing. Any changes deemed necessary from the comments are made prior to the Form 990 filing with the Internal Revenue Service. Form 990, Part VI, Section B, Line 12c Annually, each employee, Board of Director member, and Audit Committee member, are required to sign a compliance statement which states they have read, understand and are in full compliance with NASBA's Conflict of Interest Policy ("Policy"). Any exceptions to the Policy are noted on the statement. All conflicts of interest are disallowed without the prior approval of the President and Chief Executive Officer of NASBA or the Chair of the Audit Committee. New vendor relationships are reviewed during the year to determine if any conflicts of interest exist. Form 990, Part VI, Section B, Line 15 The NASBA Executive Compensation Committee ("Compensation Committee") is comprised of the Past Chair, the Chair, the Vice Chair, the Secretary and the Treasurer. These Compensation Committee members are disinterested directors who are subject to NASBA's Conflict of Interest Policy. The Compensation Committee assesses and determines compensation for NASBA's President and Chief Executive Officer ("CEO"), ensuring that his or her compensation aligns with NASBA's mission and values, its compensation philosophy, its bylaws, extant contracts and governing law. To ensure the competitiveness of the compensation of the CEO, the Compensation Committee undertakes an annual process that includes reviewing comparable data, such as studies conducted by GuideStar, and reports prepared by external consultants. All compensation deliberations and decisions regarding the CEO are contemporaneously documented in the Executive Committee/Compensation Committee minutes. The Board of Directors has final approval authority over the compensation of the CEO. Documentation of the compensation decision is provided to the Chief Financial Officer and Chief Human Resource Officer. Form 990, Part VI, Section C, Line 19 The governing documents and annual report, which inclues the audited financial statements, are available on NASBA's website. The governing documents, Conflict of Interest Policy and financial statements are also available upon request. Form 990, Part VII, Section A, Line 1a Alfonzo Alexander spends appoximately one-half of his time on activities related to the NASBA Center for the Public Trust ("CPT"), a related, subsidiary organization. Mr. Alexander is an employee of NASBA. For the current year, NASBA provided Mr. Alexander's services to CPT as an in-kind contribution. Form 990, Part XI, Line 9 Capitalized software development costs: $3,962,651 + Amortization of software development costs: $-334,931 + Income from investment in affiliate: $353,953 = Total $3,981,673 NASBA Center for the Public Trust 150 Fourth Avenue North Suite 700 Nashville TN 372192417 201746267 Championing the public trust by advancing ethical leadership in business, institutions and orgs. TN 501(c)(3) 7 National Association of State Boards of Accountancy 1 Aequo International LLC 150 Fourth Avenue North Suite 700 Nashville TN 37219 471785864 International education evaluation services for non-accounting related occupations and institutions DE National Association of State Boards of Accountancy C -185596 105257 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 NASBA Center for the Public Trust a-iv 17916 Actual incurred Aequo International LLC a-iv 13962 Actual incurred NASBA Center for the Public Trust b 150000 Actual paid NASBA Center for the Public Trust o 232860 Fair value NASBA Center for the Public Trust q 347958 Actual paid