2013-06-13T13:29:54-07:00 2012-07-31 990 2011-08-01 133448166 NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY INC NATI 6158804200 150 Fourth Avenue North Suite 700 Nashville TN 372192417 Michael Bryant 6158804236 2013-06-13 2011 2016-03-07 17:11:31Z Kenneth L Bishop 150 Fourth Avenue North Suite 700 Nashville TN 37219 30966368 0 X www.nasba.org X 1987 DE NASBA's mission is to enhance the effectiveness and advance the common interest of the Boards of Accountancy. NASBA provides support to Boards of Accountancy by speaking as a trusted collective voice for the Boards on issues of interest and helping Boards perserve the public trust through effective 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 20 261 237 140892 -24657 299102 301283 25758652 25942849 7543324 122747 52968 140892 33654046 26507771 7660 21500 0 0 16607429 16092000 0 0 0 8508302 9071792 25123391 25185292 8530655 1322479 32619309 33356805 5826238 5240114 26793071 28116691 NASBA's mission is to enhance the effectiveness and advance the common interest of the Boards of Accountancy. NASBA provides support to Boards of Accountancy by speaking as a trusted collective voice for the Boards on issues of interest and helping Boards preserve the public trust through effective 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 289,000 CPA Examination sections were processed through the National Candidate Database during the twelve months ended July 31, 2012. 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. By NASBA providing these services, it enables Boards of Accountancy to provide candidates 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' consideration. During the current year, there were 21 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 counsels, and peer review oversight committees related to Boards of Accountancy. There were six conferences held during the year. CPA's must comply with statutory licensing requirements which includes continuing professional education (CPE). NASBA maintains a National Registry of CPE Sponsors (Registry) which recognizes CPE programs sponsors who make a commitment to meeting the highest CPE program standards. Only learning providers who are committed to offering high quality continuing education programs, that improve a CPA's professional competence, are listed on the Registry. Members of the Registry also qualify as approved providers of CPE for purposes of meeting Board of Accountancy CPE licensing requirements. NASBA also provides tools that assist CPA's and CPA firms in achieving compliance with Board of Accountancy licensing requirements related to CPE. As a part of public protection, Boards of Accountancy require that CPA's 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 CPA's 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 CPA's. A similar database 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 57 0 1 261 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 6158804236 150 Fourth Avenue North Suite 700 Nashville TN 372192417 X Mark P Harris CPA 8 X 0 0 0 Michael T Daggett CPA 2 X 0 0 0 Gaylen R Hansen CPA 2 X 0 0 0 Donald H Burkett CPA 2 X 0 0 0 Walter C Davenport CPA 2 X 0 0 0 Richard Isserman CPA 2 X 0 0 0 Carlos E Johnson CPA Ed D 2 X 0 0 0 Theodore W Long Jr CPA 2 X 0 0 0 Kenneth R Odom CPA 2 X 0 0 0 Harry O Parsons CPA 2 X 0 0 0 E Kent Smoll CPA 2 X 0 0 0 Laurie J Tish CPA 2 X 0 0 0 Jimmy E Burkes CPA 2 X 0 0 0 Jefferson Chickering CPA 2 X 0 0 0 Miley W Glover CPA 2 X 0 0 0 Janice L Gray CPA 2 X 0 0 0 Raymond Johnson CPA 2 X 0 0 0 Telford A Lodden CPA 2 X 0 0 0 Kim Tredinnick CPA 2 X 0 0 0 Karen F Turner Ph D CPA 2 X 0 0 0 Billy M Atkinson CPA 2 X 0 0 0 Kathleen J Smith CPA Esq 2 X 0 0 0 Kenneth L Bishop 55 X 422585 0 33093 David A Costello CPA 55 X 1211450 0 33093 Colleen K Conrad CPA 50 X 51947 0 573 Michael R Bryant CPA 50 X 250620 0 42339 Edwin F Barnicott 40 X 233551 0 37466 Alfonzo Alexander 40 X 177349 0 32163 Maria-Lisa Caldwell Esq 40 X 214553 0 37628 Louise Dratler Haberman 40 X 169091 0 27019 Karen Denise Hanley 40 X 183220 0 30509 Troy A Walker CPA 40 X 159896 0 30307 3074262 0 304190 25 0 1 0 Allen Pinnix & Nichols PA 510 Glenwood Avenue Suite 301 Raleigh NC 27603 Attorney 563843 Endeavor Management 2700 Post Oak Blvd Suite 1400 Houston TX 77056 Project Management Consultant 128120 VACO LLC 5410 Maryland Way Siute 460 Brentwood TN 37027 Consultant 165878 3 0 301283 0 0 0 0 0 301283 Examination related programs 541900 22899821 22899821 0 0 CPE related programs 541900 2453241 2453241 0 0 Licensing related programs 541900 589787 589787 0 0 0 0 0 0 25942849 615020 0 0 615020 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3966324 0 4458597 0 -492273 0 -492273 0 0 -492273 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Sale of mailing lists 541860 36665 0 36665 0 Program services to non-CPA entities 541900 104227 0 104227 0 0 0 0 0 140892 26507771 25942849 140892 122747 0 21500 0 0 1938349 0 10577195 647049 2068379 861028 0 464785 59610 0 0 83673 390694 201939 453363 862816 0 1316147 1716987 0 337519 7574 0 810855 138256 Credit card fees 1185259 Examination administration costs 549744 Contribution to NASBA Center for the Public Trust 150000 Software subscriptions 160640 181931 25185292 0 0 0 -14528 2488103 9647880 5767063 0 0 1931408 1613033 0 0 0 0 2500000 2500000 0 0 274052 309036 6539200 4096208 2735170 2442992 13015318 15861327 1000000 978089 0 0 0 0 1530009 1397162 32619309 33356805 4880724 4579900 7660 21500 489278 207697 0 0 0 0 0 0 0 0 0 0 448576 431017 5826238 5240114 X 26793071 28116691 0 0 0 0 26793071 28116691 32619309 33356805 X 1322479 1141 X 0 1 1 X 0 1 1 0 1 24879403 44192761 47527942 21544222 0 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 42911 261498 0 1807998 869385 938613 0 2983334 1957822 1025512 0 1443459 1226090 217369 2442992 0 Deferred rent credit 310725 Capital lease obligation 120292 431017 26507771 25185292 1322479 320877 0 0 0 -319736 1141 1323620 26723064 320877 0 0 -21911 298966 26424098 83673 0 83673 26507771 25399444 0 0 0 297825 297825 25101619 83673 0 83673 25185292 SchD_P04_S00_L01b Schedule D, Part IV, Line 1b NASBA entered into an agreement with Prometric, Inc. ("Prometric"), a company that provides technology-enabled testing services, and two agreements with 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 distributed when services are provided. The escrowed funds and the related obligations are not included in the financial statements because they do not represent assets or obligations of NASBA. SchD_P05_S00_L04 Schedule D, Part V, Line 4 During Fiscal 2011, the NASBA Center for the Public Trust ("CPT"), a related organization and consolidated in NASBA's financial statements, established an endowment fund. The income generated from the endowment fund will be used to benefit the Student Center for the Public Trust and the Ethics Network. SchD_P10_S00_L02 Schedule D, Part X, Line 2 As of July 31, 2012, NASBA has accrued no interest or penalities related to uncertain tax positions. 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 2009. SchD_P11_S00_L08 Schedule D, Part XI, Line 8 Amortization of software development costs: $-297,825; Loss from equity affiliate: $-21,911 SchD_P12_S00_L02d Schedule D, Part XII, Line 2d Loss from equity affiliate SchD_P13_S00_L02d Schedule D, Part XIII, Line 2d Amortization of software development costs 1 Accounting education research 6 21500 0 N/A N/A SchI_P01_S00_L02 Schedule I, Part I, Line 2 The grant recipients submit a periodic report to NASBA which is 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 362301 0 60000 0 284 0 21842 0 12364 0 456791 0 0 0 David A Costello CPA 884665 0 150000 0 176785 0 21842 0 13510 0 1246802 0 0 0 Michael R Bryant CPA 215620 0 35000 0 0 0 21842 0 22278 0 294740 0 0 0 Edwin F Barnicott 222551 0 11000 0 0 0 21415 0 17137 0 272103 0 0 0 Alfonzo Alexander 166349 0 11000 0 0 0 14812 0 18281 0 210442 0 0 0 Maria-Lisa Caldwell Esq 204553 0 10000 0 0 0 19268 0 20746 0 254567 0 0 0 Louise Dratler Haberman 159091 0 10000 0 0 0 13639 0 14282 0 197012 0 0 0 Karen Denise Hanley 173220 0 10000 0 0 0 15411 0 16452 0 215083 0 0 0 Troy A Walker CPA 137896 0 22000 0 0 0 12836 0 18328 0 191060 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 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 CEO's spouse as part of his 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 current fiscal year, Karen Denise Hanley entered into a severance agreement. Payments as a part of this severance agreement during the current fiscal year totaled $56,375. F990_P06_S0A_L06 Form 990, Part VI, Section A, Line 6 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 The Nominating Committee of NASBA shall nominate annually one qulified 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 all of whom are members of the Board of Directors. If the Vice Chair cannot serve as Chair, then the Nominating Committee also shall nominate a candidate for Chair. The Vice Chair becomes the Chair the year after elected as Vice Chair. The member Boards of Accountancy vote on and elect the nominees during the Business Session at the Annual Meeting. F990_P06_S0B_L11b Form 990, Part VI, Section B, Line 11b NASBA's governing Board of Directors (Board), its Administration and Finance (A&F) Committee and its Audit Committee have a high concentration of Certified Public Accountants, many of whom would be considered financial experts for purposes of the Form 990. The Form 990 and required schedules are provided to all members of the Board in electronic format to review and provide back comments to management prior to filing. The comments are reviewed by the A&F Chair, who is the Treasurer and also a member of the Executive Committee and Board of Directors, and management. Any changes deemed necessary from the comments are made prior to the Form 990 being filed with the Internal Revenue Service. F990_P06_S0B_L12c Form 990, Part VI, Section B, Line 12c At the start of each fiscal year, each employee and Board of Director member of NASBA 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 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 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. This process was last undertaken in October 2012 in consultation with an independent compensation consultant, approved by the Executive Committee/Compensation Committee and ratified by the Board of Directors at its October 2012 meeting. Documentation of the compensation decision is provided to the Chief Financial Officer and Director of Human Resources. 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 the NASBA website. The governing documents, Conflicts 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 organization. Mr. Alexander is an employee of NASBA. CPT reimburses NASBA for Mr. Alexander's estimated amount of time spent on CPT-related activities. F990_P11_S00_L05 Form 990, Part XI, Line 5 Unrealized gain: $320,877; Loss from equity affiliate: $-21,911; Amortization of software development costs: $-297,825 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 1 0 1 0 0 NASBA Center for the Public Trust a-iv 7080 Actual incurred NASBA Center for the Public Trust b 150000 Actual paid NASBA Center for the Public Trust n 156917 Actual incurrend NASBA Center for the Public Trust p 429546 Actual paid