2014-01-28T14:21:53-07:00 2013-07-31 990 2012-08-01 133448166 NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY INC NATI 6158804200 150 Fourth Avenue North Suite 700 Nashville TN 372192417 Michael Bryant 6158804236 2014-01-28 2012 2015-11-30 17:44:51Z Kenneth L Bishop 150 Fourth Avenue North Suite 700 Nashville TN 372192417 30990640 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 Boards of Accountancy by speaking as a trusted collective voice for the Boards of Accountancy on issues of interest and supporting Boards of Accountancy as effective stewards of the public interest through regulation of the accounting profession by supporting the licensing and regulation of Certified Public Accountants by the individual Boards of Accountancy in all fifty states along with the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico and the U.S. Virgin Islands. 20 20 193 194 128346 -70661 301283 298802 25942849 27432904 122747 898295 140892 128346 26507771 28758347 21500 39000 0 0 16092000 15031369 0 0 0 9071792 10076723 25185292 25147092 1322479 3611255 33356805 37866681 5240114 5009693 28116691 32856988 NASBA's mission is to enhance the effectiveness and advance the common interests of the Boards of Accountancy. NASBA provides support to Boards of Accountancy by speaking as a trusted collective voice for the Boards of Accountancy on issues of interest and supporting Boards of Accountancy as effective stewards of the public interest through regulation of the accounting profession by supporting the licensing and regulation of Certified Public Accountants by the individual Boards of Accountancy in all fifty states along with 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 government Boards of Accountancy 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 293,000 CPA Examination sections were processed through the National Candidate Database during the twelve months ended July 31, 2013. 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 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 a positive examination experience while remaining focused on other critical regulatory functions such as enforcement and auditing. 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, and international financial accounting standards to the development of model rules for the member Boards of Accountancy consideration. During the current year, there were over twenty such committees and task forces. NASBA also holds conferences designed to bring together and inform members and staff of all the Boards of Accountancy of these topics, as well as regulatory best practices. These include an annual meeting for all 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, legal counsel, and peer review oversight committees related to Boards of Accountancy. There were six conferences held during the year. CPA's mush 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 CPAs 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. NASBA provides tools that assist CPA's and CPA firms in achieving compliance with Boards of Accountancy licensing requirements related to CPE. 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 database of all CPAs in participating states which is populated by official state regulatory data sent from Boards of Accountancy and offers a single-source national database of licensed CPAs. 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 60 0 1 193 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 Gaylen R Hansen CPA 16 0 X 0 0 0 Carlos E Johnson CPA Ed D 4 0 X 0 0 0 Mark P Harris CPA 4 0 X 0 0 0 Donald H Burkett CPA 4 0 X 0 0 0 Richard D Isserman CPA 4 0 X 0 0 0 Raymond N Johnson CPA 4 0 X 0 0 0 Telford A Lodden CPA 4 0 X 0 0 0 Theodore W Long Jr CPA 4 0 X 0 0 0 Kenneth R Odom CPA 4 0 X 0 0 0 Harry O Parsons CPA 4 0 X 0 0 0 E Kent Smoll CPA 4 0 X 0 0 0 Laurie J Tish CPA 4 0 X 0 0 0 Donald F Aubrey CPA 4 0 X 0 0 0 Jimmy E Burkes CPA 4 0 X 0 0 0 Jefferson Chickering CPA 4 0 X 0 0 0 Miley W Glover CPA 4 0 X 0 0 0 Janice L Gray CPA 4 0 X 0 0 0 Douglas W Skiles CPA 4 0 X 0 0 0 Kim Tredinnick CPA 4 0 X 0 0 0 Karen Forrest Turner Ph D CPA 4 0 X 0 0 0 Michael T Daggett CPA 4 0 X 0 0 0 Walter C Davenport CPA 4 0 X 0 0 0 Kenneth L Bishop 55 0 X 621729 0 35035 Colleen K Conrad CPA 55 0 X 326019 0 32017 Michael R Bryant CPA 50 2 X 274795 0 47540 Alfonzo Alexander 20 20 X 201168 0 38201 Edwin F Barnicott 40 0 X 243365 0 39985 Maria-Lisa Caldwell Esq 40 0 X 230673 0 40777 Louise Dratler Haberman 40 0 X 177880 0 33702 Karen Denise Hanley 40 0 X 177465 0 15758 David A Costello CPA 0 0 X 136338 0 6184 2389432 0 289199 26 1 1 0 Allen Pinnix & Nichols PA 510 Glenwood Ave Ste 301 Raleigh NC 27603 Attorney 461291 VACO LLC 5410 Maryland Way Siute 460 Brentwood TN 37027 Consultant 195025 2 0 298802 0 0 0 0 0 298802 Examination related programs 541900 23765336 23765336 0 0 CPE related programs 541900 2697216 2697216 0 0 Licensing related programs 541900 602558 602558 0 0 Conference fees 541900 367794 367794 0 0 0 0 0 0 27432904 818734 0 0 818734 0 0 0 0 0 0 0 0 0 0 2311854 0 2232293 0 79561 0 79561 0 0 79561 0 Sale of mailing lists and labels 511140 32425 0 32425 0 Program services to non-CPA entities 541900 95921 0 95921 0 0 0 0 0 128346 28758347 27432904 128346 898295 0 39000 0 0 1528956 0 10223142 584967 1919687 774617 0 562158 62829 0 0 87667 688202 124251 438119 941979 0 1306175 1282043 0 1037877 4651 0 795494 157097 Credit card fees 1261683 Examination administration costs 503036 Contrib. to NASBA Ctr for the Public Trust 326390 Software subscriptions 274519 222553 25147092 0 0 0 2488103 -2045 5767063 10200655 0 0 1613033 1757520 0 0 0 0 2500000 2115255 0 0 309036 370435 5910471 4159327 2442992 1751144 15861327 19866493 978089 953828 0 0 1118392 750656 278770 102740 33356805 37866681 4579900 4544158 21500 45660 207697 104493 0 0 0 0 0 0 0 0 0 0 431017 315382 5240114 5009693 X 28116691 32856988 0 0 0 0 28116691 32856988 33356805 37866681 X 3611255 1521040 0 0 0 -391998 X 0 1 X 1 0 1 1 0 1 21544222 49588632 49935409 21197445 0 84630 10312 622 0 622 0 94942 28427 56203 454 0 454 0 84630 0 28427 0 0 0 0 28427 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 304409 50716 253693 0 1792599 1042454 750145 0 2485614 1849535 636079 0 1327849 1216622 111227 1751144 Deferred rent credit 255143 Capital lease obligation 60239 315382 X 30167459 1521040 0 0 -24261 1496779 28670680 87667 0 87667 28758347 25427162 0 0 0 493099 493099 24934063 87667 125362 213029 25147092 SchD_P04_S00_L01b 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 agreements, NASBA collects from candidates the Prometric and AICPA fees related to the examination. These funds are held in escrow accounts in the names of the respective parties and are disbursed when services are provided. The escrow funds and related obligations are not reported in the financial statements because they do not represent assets or obligations of NASBA. SchD_P05_S00_L04 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 and the Ethics Network. SchD_P10_S00_L02 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, 2013. 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 2010. SchD_P11_S00_L02d Schedule D, Part XI, Line 2d Loss from affiliate SchD_P12_S00_L02d Schedule D, Part XII, Line 2d Amortization of software development costs: $304,456; Loss from write-off of software development costs: $188,643 SchD_P12_S00_L04b Schedule D, Part XII, Line 4b Capitalized software development costs 1 Accounting eduction research 6 39000 0 N/A N/A SchI_P01_S00_L02 Schedule I, Part I, Line 2 The grant recipients submit periodic reports to NASBA which are reviewed by the staff and committee overseeing the grants. These reports describe the progress of the project and how the grant funds have been used. SchI_P03_S00_L00 Schedule I, Part III Three grants were awarded during the prior year and an additional three grants were awarded in the current year. Expenses related to all six grants were incurred during the current year. X X X 1 1 X X X X X X 1 0 0 Kenneth L Bishop 514394 0 75000 0 32335 0 23170 0 13866 0 658765 0 0 0 Colleen K Conrad CPA 303219 0 22800 0 0 0 24393 0 9466 0 359878 0 0 0 Michael R Bryant CPA 247143 0 25000 0 2652 0 25925 0 23438 0 324158 0 0 0 Alfonzo Alexander 191168 0 10000 0 0 0 19489 0 19711 0 240368 0 0 0 Edwin F Barnicott 233365 0 10000 0 0 0 23320 0 17774 0 284459 0 0 0 Maria-Lisa Caldwell Esq 222673 0 8000 0 0 0 22524 0 20686 0 273883 0 0 0 Louise Dratler Haberman 169880 0 8000 0 0 0 19637 0 14983 0 212500 0 0 0 Karen Denise Hanley 42926 0 0 0 134539 0 3593 0 12672 0 193730 0 0 0 David A Costello CPA 0 0 0 0 136338 0 620 0 5564 0 142522 0 0 0 SchJ_P01_S00_L01a Schedule J, Part I, Line 1a NASBA reimburses first-class travel for the President and Chief Executive Officer and the Chair of the Board of Directors for certain required international travel in which travel time exceeds the standard length of average domestic travel. NASBA also provides for the travel of the spouse of the President and Chief Executive Officer and the Chair of the Board of Directors. This is pursuant to a long-standing written Spousal Travel and Reimbursement Policy adopted by the Board of Directors in 1995. Such policy provides for certain spousal duties related to the travel events. It was also adopted in writing for the current President and Chief Executive Officer's spouse as part of his employment contract. NASBA provides for contracted gross-up payments related to the annual employer's retirement plan contribution for those officers whose annual compensation exceeds the limit as set by the Internal Revenue Service. SchJ_P01_S00_L04 Schedule J, Part I, Line 4 During the prior fiscal year, Karen Denise Hanley entered into a severance agreement. Payments as a part of this severance agreement during the current fiscal year totaled $115,500. F990_P06_S0A_L06 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. F990_P06_S0A_L07a 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. F990_P06_S0B_L11b 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. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c Near the start of each fiscal year, each employee and Board of Director member is 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. In addition, new vendor relationships are reviewed during the year to determine if any conflicts of interest exist. F990_P06_S0B_L15 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 Treasurer, and one at-large past or present member of the Board of Directors. 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 President and CEO, the Compensation Committee undertakes an annual process that includes reviewing comparability data, such as the American Research Compensation Study, and reports prepared by external consultants. All compensation deliberations and decisions regarding the President and CEO are contemporaneously documented in the Executive Committee/Compensation Committee's minutes. Documentation of the compensation decision is provided to the Chief Financial Officer and Chief Human Resources Officer. F990_P06_S0C_L19 Form 990, Part VI, Section C, Line 19 The governing documents and annual report, which includes 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. F990_P07_S0A_L01a Form 990, Part VII, Section A, Line 1a Alfonzo Alexander spends approximately 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. CPT reimburses NASBA for Mr. Alexander's estimated amount of time spent on activities related to CPT. F990_P11_S00_L09 Form 990, Part XI, Line 9 Amortization of software development costs: $-304,456; Loss from write-off of software development costs: $-188,643; Capitalized software development costs: $125,362; Loss from affiliate: $-24,261 NASBA Center for the Public Trust 150 Fourth Avenue North Suite 700 Nashville TN 372192417 201746267 Address the issue of ethics in business, education, public policy and society TN 501(c)(3) 7 N/A 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 1 0 0 NASBA Center for the Public Trust a-iv 8746 Actual incurred NASBA Center for the Public Trust b 326390 Actual paid NASBA Center for the Public Trust o 77363 Fair value calculated NASBA Center for the Public Trust q 449421 Actual paid