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1981–82 ACEP financial report
Seidman & Seidman I CERTIFIED
PUBLIC
4200 First International Building, Dallas, Texas 75270 (2t4) 741-4200
ACCOUNTANTS
August 2, 1982
American College of Emergency Physicians Dallas, Texas We have examined the balance sheet of American College of Emergency Physicians as of June 30, 1982 and the related statements of activity, members' equity and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements mentioned present fairly the financial position of American College of Emergency Physicians at June 30, 1982 and the results of its operations and changes in its financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.
Offices Throughout the United States - Internationally Binder Dijker Otte & Co.
11:11 November 1982
Annals of Emergency Medicine
]~]~
83
AMERICAN COLLEGE OF EMERGENCY PHYSICIANS REPORT ON FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1982 B A L A N C E SHEET JUNE 30, 1982
ASSETS CURRENT: Cash: Unrestricted {including certificates of deposit and commercial paper of $415;000) Chapter reserve (Note 2) Accounts and notes receivable, less allowance of $8,600 for possible losses (Note 5) Prepaid expenses TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT {Notes 3 and 5) Less accumulated depreciation and amortization NET PROPERTY AND EQUIPMENT OTHER: Relocation expenses, net of amortization of $303,724 Deposits and other TOTAL OTHER ASSETS
$1 960 899 52 566 97 216 2 326 1 118 320 797
056 098 619 i48 867 281
101 20 122 $3 246
250 930 i80 080
$1 393 191 48 262 103 84 2 084 73 2 157
I75 716 725 829 158 770 373 537 910
169 486 432 1 088 $3 246
415 500 255 170 080
LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES: Deferred revenues (Note 4) Accounts payable Current maturities of long-term debt {Note 5) Due to chapters (Note 2) Accrued pension plan contribution (Note 7) Accrued payroll taxeS and other (Note 6) TOTAL CURRENT LIABILITIES LONG-TERM DEBT, less current maturities (Note 5) TOTAL LIABILITIES COMMITMENTS (Notes 3 and 7) MEMBERS' EQUITY: Designated: Relocation Land acquisition Operating TOTAL MEMBERS' EQUITY
See accompanying summary of accounting policies and notes to financial statements.
84
Annals of Emergency Medicine
11:11 November 1982
STATEMENT OF ACTIVITY YEAR ENDED JUNE 30, 1982 REVENUES: Dues Educational programs Annals of Emergency Medicine (Annals) Services to associations and chapters Interest TOTAL REVENUES EXPENSES Purpose I: Improve the emergency health care delivery system through the education of physicians, other health care professionals, allied health care workers and the general public Purpose II: Generate new information relative to emergency medicine via research Purpose III: Improve the quality of practice of emergency medicine through the development of standards and implementations of standards (ethical, socio-economic and competence in general) Purpose IV: Promote emergency medicine as a viable and recognized medical specialty Purpose V: Provide an organized structure through which the objectives of the association may be met TOTAL EXPENSES EXCESS OF REVENUES OVER EXPENSES BEFORE CAPITAL ADDITIONS CAPITAL ADDITIONS: Assessments for land acquisition EXCESS OF REVENUES OVER EXPENSES AFTER CAPITAL ADDITIONS
$2 268 1 364 747 96 210 4 687
792 760 535 037 303 427
2 285 531 11 448
406 718 227 762 1 127 056 4 058 515 628 912 10 150 $ 639 062
See accompanying summary of accounting policies and notes to financial statements,
STATEMENT OF MEMBERS' EQUITY YEAR ENDED JUNE 30, 1982 Designated
Balance, at beginning of year as previously reported Adjustment for compensated absences (Note 6) Balance, as restated Excess of revenues over expenses after capital additions Reallocatiou of designated equity Balance, at end of year
Relocation
Land Acquisition
Working Capital
Operating
$316 438
$476 350
$155 272
$(424 383)
--
--
316 438 -
-
(147 023) $169 415
476 350 10 150 -$486 500
155 272
$ (74 569) (498 952)
-
628 912
{155 272) $ --0--
302 295 $432 255
.See accompanying summary of accounting policies and notes to financial statements.
11:11 November 1982
Annals of Emergency Medicine
85
STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1982 SOURCE OF WORKING CAPITAL: Excess of revenues over expenses before capital additions Items not requiring working capital - Depreciation and amortization Total derived from operations Capital additions Disposal of property and equipment Total
$554 342 224 230 778 572 10 1S0 16 626 805 348
USE OF WORKING CAPITAL: Additions to property and equipment Payments and maturities of long-term debt Increase in deposits Total INCREASE IN WORKING CAPITAL
129 297 46 060 1 398 176 755 $628 593
CHANGES IN WORKING CAPITAL ITEMS: Increase (decrease) in current assets: Cash Accounts and notes receivable Prepaid expenses Total
$953 613 (25 873) 54 115 981 855
Decrease (increase) in current liabilities: Deferred revenues Accounts payable Current maturities of long-term debt Due to chapters Accrued expenses Total
(264 063) (109 721) 911 95 594 (75 983) (353 262)
INCREASE IN WORKING CAPITAL
$628 593
See accompanying summary of accounting policies and notes to financial statements.
SUMMARY OF ACCOUNTING POLICIES PROPERTY AND EQUIPMENT A N D DEPRECIATION Assets are stated at cost. Depreciation is calculated by the straight-line m e t h o d over the estimated useful lives of the assets. RELOCATION EXPENSE The College has capitalized the costs of m o v i n g to the present headquarters. A m o r t i z a t i o n is calculated over a three-year period by the straight-line method. ALLOCATED COSTS Employee, occupancy and general overhead (College administration) costs are allocated to the various purposes and projects of the College. DEFERRED REVENUES A N D PREPAID EXPENSES Revenues received and expenses incurred relating to certain projects which will n o t be completed u n t i l after year end are deferred. Revenues from a n n u a l m e m b e r s h i p dues are recognized on a pro rata basis over the related m e m bership terms.
86
Annals of Emergency Medicine
11:11 November 1982
NOTES TO FINANCIAL STATEMENTS NOTE 1 -- ORGANIZATION
The American College of Emergency Physicians is a nonprofit association under the provisions of Section 501 {c) (6) of the Internal Revenue Code and, as such, is not subject to income taxes other than may arise in regard to unrelated business income. NOTE 2 -- DUE TO STATE CHAPTERS
The state chapters may elect to have the College collect dues and pay expenditures incurred on their behalf. At June 30, 1982, chapters had on deposit with the College a total of $262,829. During the year, the College collected and disbursed $692,548 and $814,413, respectively, on behalf of the chapters. The board of directors has established that a cash reserve is to be maintained equal to 20 percent of chapter balances. State chapters are paid interest on the balances maintained by the College at a rate of 10 percent per annum, compounded monthly. For the year ended June 30, 1982, the College paid $26,271 in interest on these accounts. N O T E 3 --- P R O P E R T Y A N D E Q U I P M E N T
AND
COMMITMENTS
Classes of property and equipment at June 30, 1982 are as follows: Land Furniture and equipment Construction-in-progress Leasehold improvement s
$ 504 648 473 828 72 756 66 916 1 118 148 320 867 $ 797 281
Less accumulated depreciation and amortization Net property and equipment
The College leases its present headquarters facility and various office equipment under operating leases expiring through 1983. Office rent expense and equipment rentals for the year ended June 30, 1982 totaled $371,000. Minimum lease payments in t983 and 1984 are $298,000 and $39,700, respectively. In 1982, the College commenced construction of its new headquarters. The estimated cost of the building is $2,200,000 of which approximately $73,000 had been expended at June 30, 1982 (see Note S). NOTE 4 -- DEFERRED REVENUES
At June 30, 1982, deferred revenues consist of the following: Membership dues Scientific assembly revenues Fellow initiation fees
NOTE 5 -- LONG-TERM
DEBT AND
$1 286 583 86 342 20 250 St 393 175 SUBSEQUENT
EVENT
Long-term debt consists of the following at June 30, 1982: 13.25% note payable to bank, due $12,000 quarterly through November 15, 1984, plus interest, collateralized by computer equipment and accounts receivable Other notes payable
$119 000 3 262 122 262 48 725 $ 73 537
Less current maturities
In July 1982, the College entered into an interim construction loan agreement for the new headquarters facility. The interim construction financing agreement ultimately will become a $1,000,000 line of credit. Amounts drawn bear interest at 21/4 percent over prime (payable monthly). The loan (due July 1983) is collateralized by the land and improvements thereto. NOTE 6 -- COMPENSATED
ABSENCES
Pursuant to the provisions of Statement of Financial Accounting Standard No. 43, the financial statements presented for year ended June 30, 1981 were restated to reflect the accrual of compensated absences. The effect of the .restatement is a decrease of $74,569 to the excess of revenues over expenses at the beginning of the year. Included in accrued liabilities for year ended June 30, 1982 is $57,500 for compensated absences. NOTE 7 -- PENSION
PLAN
I
The College has a money purchase pension plan for the benefit of its employees. Participation in the plan is immediate. Vesting begins after one year of service at a rate of 20 percent and increases in increments of 20 percent each year thereafter until fully vested. Pension expense for the College for the fiscal year was approximately $103,000. In addition, employees who perform services for organizations managed by the college and certain chapter employees are covered under the College pension plan. There are no unfunded past service costs and vested benefits cannot exceed plan assets.
11:11 November 1982
Annals of Emergency Medicine
87
PUBLIC
4200 First International Building, Dallas, Texas 75270 (2t4) 741-4200
ACCOUNTANTS
August 2, 1982
American College of Emergency Physicians Dallas, Texas We have examined the balance sheet of American College of Emergency Physicians as of June 30, 1982 and the related statements of activity, members' equity and changes in financial position for the year then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements mentioned present fairly the financial position of American College of Emergency Physicians at June 30, 1982 and the results of its operations and changes in its financial position for the year then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year.
Offices Throughout the United States - Internationally Binder Dijker Otte & Co.
11:11 November 1982
Annals of Emergency Medicine
]~]~
83
AMERICAN COLLEGE OF EMERGENCY PHYSICIANS REPORT ON FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 1982 B A L A N C E SHEET JUNE 30, 1982
ASSETS CURRENT: Cash: Unrestricted {including certificates of deposit and commercial paper of $415;000) Chapter reserve (Note 2) Accounts and notes receivable, less allowance of $8,600 for possible losses (Note 5) Prepaid expenses TOTAL CURRENT ASSETS PROPERTY AND EQUIPMENT {Notes 3 and 5) Less accumulated depreciation and amortization NET PROPERTY AND EQUIPMENT OTHER: Relocation expenses, net of amortization of $303,724 Deposits and other TOTAL OTHER ASSETS
$1 960 899 52 566 97 216 2 326 1 118 320 797
056 098 619 i48 867 281
101 20 122 $3 246
250 930 i80 080
$1 393 191 48 262 103 84 2 084 73 2 157
I75 716 725 829 158 770 373 537 910
169 486 432 1 088 $3 246
415 500 255 170 080
LIABILITIES AND MEMBERS' EQUITY CURRENT LIABILITIES: Deferred revenues (Note 4) Accounts payable Current maturities of long-term debt {Note 5) Due to chapters (Note 2) Accrued pension plan contribution (Note 7) Accrued payroll taxeS and other (Note 6) TOTAL CURRENT LIABILITIES LONG-TERM DEBT, less current maturities (Note 5) TOTAL LIABILITIES COMMITMENTS (Notes 3 and 7) MEMBERS' EQUITY: Designated: Relocation Land acquisition Operating TOTAL MEMBERS' EQUITY
See accompanying summary of accounting policies and notes to financial statements.
84
Annals of Emergency Medicine
11:11 November 1982
STATEMENT OF ACTIVITY YEAR ENDED JUNE 30, 1982 REVENUES: Dues Educational programs Annals of Emergency Medicine (Annals) Services to associations and chapters Interest TOTAL REVENUES EXPENSES Purpose I: Improve the emergency health care delivery system through the education of physicians, other health care professionals, allied health care workers and the general public Purpose II: Generate new information relative to emergency medicine via research Purpose III: Improve the quality of practice of emergency medicine through the development of standards and implementations of standards (ethical, socio-economic and competence in general) Purpose IV: Promote emergency medicine as a viable and recognized medical specialty Purpose V: Provide an organized structure through which the objectives of the association may be met TOTAL EXPENSES EXCESS OF REVENUES OVER EXPENSES BEFORE CAPITAL ADDITIONS CAPITAL ADDITIONS: Assessments for land acquisition EXCESS OF REVENUES OVER EXPENSES AFTER CAPITAL ADDITIONS
$2 268 1 364 747 96 210 4 687
792 760 535 037 303 427
2 285 531 11 448
406 718 227 762 1 127 056 4 058 515 628 912 10 150 $ 639 062
See accompanying summary of accounting policies and notes to financial statements,
STATEMENT OF MEMBERS' EQUITY YEAR ENDED JUNE 30, 1982 Designated
Balance, at beginning of year as previously reported Adjustment for compensated absences (Note 6) Balance, as restated Excess of revenues over expenses after capital additions Reallocatiou of designated equity Balance, at end of year
Relocation
Land Acquisition
Working Capital
Operating
$316 438
$476 350
$155 272
$(424 383)
--
--
316 438 -
-
(147 023) $169 415
476 350 10 150 -$486 500
155 272
$ (74 569) (498 952)
-
628 912
{155 272) $ --0--
302 295 $432 255
.See accompanying summary of accounting policies and notes to financial statements.
11:11 November 1982
Annals of Emergency Medicine
85
STATEMENT OF CHANGES IN FINANCIAL POSITION YEAR ENDED JUNE 30, 1982 SOURCE OF WORKING CAPITAL: Excess of revenues over expenses before capital additions Items not requiring working capital - Depreciation and amortization Total derived from operations Capital additions Disposal of property and equipment Total
$554 342 224 230 778 572 10 1S0 16 626 805 348
USE OF WORKING CAPITAL: Additions to property and equipment Payments and maturities of long-term debt Increase in deposits Total INCREASE IN WORKING CAPITAL
129 297 46 060 1 398 176 755 $628 593
CHANGES IN WORKING CAPITAL ITEMS: Increase (decrease) in current assets: Cash Accounts and notes receivable Prepaid expenses Total
$953 613 (25 873) 54 115 981 855
Decrease (increase) in current liabilities: Deferred revenues Accounts payable Current maturities of long-term debt Due to chapters Accrued expenses Total
(264 063) (109 721) 911 95 594 (75 983) (353 262)
INCREASE IN WORKING CAPITAL
$628 593
See accompanying summary of accounting policies and notes to financial statements.
SUMMARY OF ACCOUNTING POLICIES PROPERTY AND EQUIPMENT A N D DEPRECIATION Assets are stated at cost. Depreciation is calculated by the straight-line m e t h o d over the estimated useful lives of the assets. RELOCATION EXPENSE The College has capitalized the costs of m o v i n g to the present headquarters. A m o r t i z a t i o n is calculated over a three-year period by the straight-line method. ALLOCATED COSTS Employee, occupancy and general overhead (College administration) costs are allocated to the various purposes and projects of the College. DEFERRED REVENUES A N D PREPAID EXPENSES Revenues received and expenses incurred relating to certain projects which will n o t be completed u n t i l after year end are deferred. Revenues from a n n u a l m e m b e r s h i p dues are recognized on a pro rata basis over the related m e m bership terms.
86
Annals of Emergency Medicine
11:11 November 1982
NOTES TO FINANCIAL STATEMENTS NOTE 1 -- ORGANIZATION
The American College of Emergency Physicians is a nonprofit association under the provisions of Section 501 {c) (6) of the Internal Revenue Code and, as such, is not subject to income taxes other than may arise in regard to unrelated business income. NOTE 2 -- DUE TO STATE CHAPTERS
The state chapters may elect to have the College collect dues and pay expenditures incurred on their behalf. At June 30, 1982, chapters had on deposit with the College a total of $262,829. During the year, the College collected and disbursed $692,548 and $814,413, respectively, on behalf of the chapters. The board of directors has established that a cash reserve is to be maintained equal to 20 percent of chapter balances. State chapters are paid interest on the balances maintained by the College at a rate of 10 percent per annum, compounded monthly. For the year ended June 30, 1982, the College paid $26,271 in interest on these accounts. N O T E 3 --- P R O P E R T Y A N D E Q U I P M E N T
AND
COMMITMENTS
Classes of property and equipment at June 30, 1982 are as follows: Land Furniture and equipment Construction-in-progress Leasehold improvement s
$ 504 648 473 828 72 756 66 916 1 118 148 320 867 $ 797 281
Less accumulated depreciation and amortization Net property and equipment
The College leases its present headquarters facility and various office equipment under operating leases expiring through 1983. Office rent expense and equipment rentals for the year ended June 30, 1982 totaled $371,000. Minimum lease payments in t983 and 1984 are $298,000 and $39,700, respectively. In 1982, the College commenced construction of its new headquarters. The estimated cost of the building is $2,200,000 of which approximately $73,000 had been expended at June 30, 1982 (see Note S). NOTE 4 -- DEFERRED REVENUES
At June 30, 1982, deferred revenues consist of the following: Membership dues Scientific assembly revenues Fellow initiation fees
NOTE 5 -- LONG-TERM
DEBT AND
$1 286 583 86 342 20 250 St 393 175 SUBSEQUENT
EVENT
Long-term debt consists of the following at June 30, 1982: 13.25% note payable to bank, due $12,000 quarterly through November 15, 1984, plus interest, collateralized by computer equipment and accounts receivable Other notes payable
$119 000 3 262 122 262 48 725 $ 73 537
Less current maturities
In July 1982, the College entered into an interim construction loan agreement for the new headquarters facility. The interim construction financing agreement ultimately will become a $1,000,000 line of credit. Amounts drawn bear interest at 21/4 percent over prime (payable monthly). The loan (due July 1983) is collateralized by the land and improvements thereto. NOTE 6 -- COMPENSATED
ABSENCES
Pursuant to the provisions of Statement of Financial Accounting Standard No. 43, the financial statements presented for year ended June 30, 1981 were restated to reflect the accrual of compensated absences. The effect of the .restatement is a decrease of $74,569 to the excess of revenues over expenses at the beginning of the year. Included in accrued liabilities for year ended June 30, 1982 is $57,500 for compensated absences. NOTE 7 -- PENSION
PLAN
I
The College has a money purchase pension plan for the benefit of its employees. Participation in the plan is immediate. Vesting begins after one year of service at a rate of 20 percent and increases in increments of 20 percent each year thereafter until fully vested. Pension expense for the College for the fiscal year was approximately $103,000. In addition, employees who perform services for organizations managed by the college and certain chapter employees are covered under the College pension plan. There are no unfunded past service costs and vested benefits cannot exceed plan assets.
11:11 November 1982
Annals of Emergency Medicine
87