LEADING AT THE
CROSSROADS2014 Beta Alpha Psi Annual Report
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 1
2014 BETA ALPHA PSI ANNUAL REPORT TABLE OF
CONTENTS3 President’s Letter
4 Board of Directors
5 Chapter Advocates
6 Professional Partners
7 Business Information Professionals of the Year
10 Outstanding Dean
11 Lifetime Service Award
12 Outstanding Faculty Advisors
13 Regional Meetings
14 Regional Meeting Best Practices
15 2014 Annual Meeting
16 BAP International Day of Literacy
17 Annual Meeting Best Practices
18 Project Run With It
22 Ethics Award
23 Gold Challenge
24 Superior and Distinguished Chapters
26 Inclusive Leadership Awards
27 VITA Awards
28 Medal of Inspiration Award
29 Expansion
30 Financial Statements
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BETA ALPHA PSI EXECUTIVE OFFICE STAFFMargaret Fiorentino — Executive Director
Lisa Wicker — Manager, Chapter Services
Samantha Simunyu — Associate Manager, Beta Alpha Psi Marketing
VISION STATEMENTBeta Alpha Psi will shape the financial and business information professions
by developing members into ethical, professional, and confident leaders.
MISSION STATEMENTThe mission of Beta Alpha Psi, the premier international honor and service organization for financial
and business information students and professionals, is to inspire and support excellence by:
• encouraging the study and practice of accountancy, finance, and information systems;
• providing opportunities for service, professional development, and interaction among members
and financial professionals; and
• fostering lifelong ethical, social, and public responsibilities
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Dear Friends, Beta Alpha Psi has truly seen a successful year and we count your commitment as a contributing factor to this success. Whether you are a member; candidate; alumnus; faculty advisor; chapter advocate; accounting, finance, or information systems faculty; department chair; dean; executive office staff; professional partner; board member; or represent one of our sponsoring firms, companies, or professional association; or support us through exhibiting or speaking at our events, your contribution matters and your commitment to Beta Alpha Psi is definitely appreciated. Beta Alpha Psi made several strategic decisions this year. The mission statement was revised to better reflect our organizational goals and ideals; and a vision statement was introduced into the Bylaws. Furthermore, we renewed a three-year contract with the American Institute of CPAs (AICPA). Finally, we established a framework for international expansion, narrowing our focus to university chapters beyond the Oceania region by exploring opportunities at universities in Hong Kong and Canada. We look forward to seeing the result of these international initiatives in the coming year. An additional initiative implemented this year, led by our two Board Alumni Representatives, Natalie Steverson and Alex Johnson, was an alumni survey. More than 110 participants highlighted an interest in connecting with local chapters and in mentoring opportunities. Stay tuned for further developments in this alumni outreach effort. Some operational changes were also implemented this year. Chapters were required to attend either a regional or annual meeting in order to achieve Superior Chapter status, and were also required to include essential skill programs in order to be an award-seeking chapter. We chose to discontinue BAPConnect and reviewed other platforms for meeting the social networking needs of our members. These operational changes were made with the goal of improving the value received by our members. It was also a good year for BAP meetings. We had more than 2,000 attendees participate in this year’s regional meetings in the U.S. and the Oceania regions. There were over 1,200 attendees at this year’s annual meeting in Atlanta, GA, including representatives from our Oceania chapters in Australia and New Zealand and visiting faculty and students from prospective chapters in Hong Kong. These meetings provided students the opportunity to network, socialize, learn from each other in operational sessions, hear from guest speakers and professional partners, compete in the Best Practices competition, sponsored by Deloitte, and provide service to three deserving Atlanta not-for-profits through our annual Project Run With It competition, sponsored by Moss Adams. We hosted our 2nd annual International Day of Literacy in collaboration with KPMG LLP, the KPMG Foundation and United Way of Greater Atlanta. This event represented BAP’s 16th annual International Day of Service. With the help of nearly 1,000 BAP volunteers, 3,500 students from eight elementary schools in the Atlanta Public Schools participated in the annual event. BAP volunteers also put together backpacks full of school supplies to be given to underprivileged youth and prepared curriculum at the Junior Achievement’s Finance Park. So much has been accomplished this past year and we will continue to strive to make Beta Alpha Psi one of the most valuable aspects of our members’ educational experience. Thank you for a fantastic 2013–2014. I have appreciated the opportunity to serve as your president and I look forward to seeing what we will accomplish together next year as we continue our international expansion and seek new ways to engage our members and partners. With warmest regards,
Jan Taylor MorrisBoard President 2013–2014
PRESIDENT’S LETTER
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The Beta Alpha Psi Board of Directors works diligently to promote the mission of Beta Alpha Psi. A diverse
makeup of education and industry professionals and recent graduates of Beta Alpha Psi chapters bring
many perspectives to the board. Board accomplishments for 2014 include initiating a rebranding effort that
resulted in an updated BAP logo and redesigned website; the launch of the new Reporting Intranet system
and installation of three new Beta Alpha Psi chapters.
BOARD MEMBERS
Jan Taylor Morris — President
Blane Ruschak — Past President
Kevin D. Stocks — President-Elect
Noel Addy — Director of Administration and Development
Rick Niswander — Dean
Scott McQuillan — Professional Partners Chair
Lee H. Radebaugh — Director of Global Activities
Alex Miller — Professional Partners Chair-Elect
Joanne Fiore — AICPA Liaison
Natalie Steverson — Alumni Representative
Alex Johnson — Alumni Representative
Deborah Medlar — 3rd Year Chapter Advocate, Western & Northwest Regions
Gwendolyn Highsmith-Quick — 3rd Year Chapter Advocate, Southeast Region
2014–2015 INCOMING BOARD MEMBERS
Shawn Harter — President-Elect
Moez Limayem — Dean Representative
George Gamble — Director of Administration
Janice Klimek — 2nd Year Chapter Advocate, Rocky Mountain & Missouri Valley Regions
Mehmet Kocakulah — 2nd Year Chapter Advocate, Midwest Region
Pearl Rozenberg — 2nd Year Chapter Advocate, Oceania Region
Jay Knight — Alumni Representative
Greg Burton — Director of Global Activities
BOARD OF DIRECTORS
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The Beta Alpha Psi Chapter Advocates are considered the voice of the chapters. They also support
faculty advisors and offer assistance/encouragement to chapters with special circumstances, such as
chapters on probation, petitioning chapters and chapters in danger of going on probation. Chapter
Advocate accomplishments for this year include updating the regional meeting host manual and Program
for Chapter Activities (PCA) and conducting institutional site visits to expand Beta Alpha Psi.
CHAPTER ADVOCATES
Janice Klimek — 2nd Year Chapter Advocate, Rocky Mountain and Missouri Valley Regions
Mehmet Kocakulah — 2nd Year Chapter Advocate, Midwest Region
Pearl Rozenberg — 2nd Year Chapter Advocate, Oceania Region
Linda Schain — 1st Year Chapter Advocate, Atlantic Coast Region
Veronda Willis — 1st Year Chapter Advocate, Southwest Region
2014–2015 INCOMING CHAPTER ADVOCATES
David DeBoskey — Western & Northwest Regions
Raymond Elson — Southeast Region
CHAPTER ADVOCATES
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The Beta Alpha Psi Professional Partners further the mission of Beta Alpha Psi through the commitment of
financial and people resources, knowledge and talent. Members of the Beta Alpha Psi Professional Partners
financially support BAP through annual member fees, which subsidize the regional and annual meetings each
year. Representatives use their personal networks to secure speakers for these meetings, or deliver presentations
themselves. Representatives function as judges for competitions and awards. Many Partners also sponsor a
competition or award.
Professional Partner accomplishments for 2014 include continued commitment to raising their visibility with
the student members of BAP; a new partnership with the Concord Coalition to deliver interactive professional
development at regional meetings; and improved relevancy of sessions given by Professional Partners at
regional meetings.
PROFESSIONAL PARTNERS
FIRMS/CORPORATIONS
BDO USA LLP Becker Professional Review Bisk CPA Chevron Corporation CPAexcel Exam Review Deloitte LLP Ernst & Young LLP Fifth Third Bank Grant Thornton LLP Kaplan CPA Review KPMG LLP McGladrey LLP Moss Adams LLP The Office of the Comptroller of the Currency PricewaterhouseCoopers LLP Protiviti Inc. Robert Half International Surgent Kolar CPA Review
NOT-FOR-PROFIT ORGANIZATIONS
Accounting & Financial Women’s Alliance American Accounting Association American Institute of CPAs American Woman’s Society of CPAs Association of Government Accountants GMAC The Institute of Chartered Accountants
in England & Wales The Institute of Internal Auditors
National Association of Enrolled Agents The Institute of Internal Auditors Institute of Management Accountants (IMA) International Association for Accounting
Education & Research (IAAER) NASBA Center for Public Trust
STATE SOCIETY ORGANIZATIONS
California Society of CPAs Illinois CPA Society Indiana CPA Society Kansas Society of CPAs Kentucky Society of CPAs New York State Society of CPAs Texas Society of CPAs Washington Society of CPAs Wisconsin Institute of CPAs
2014–2015 INCOMING PROFESSIONAL PARTNERS Alabama Society of CPAs Roger CPA Review
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Sponsored by the IMA, the Business Information Professional of the Year award recognizes individuals who make significant contributions to business information professions. This year’s winners have made substantial contributions in academia, business and government, and professional services.
BUSINESS INFORMATION PROFESSIONALS OF THE YEAR
EDUCATION
Dennis Hanno — President, Wheaton College
Nominating Chapter — Delta Nu (University of Massachusetts, Amherst)
Dennis Hanno was appointed the eighth president of Wheaton College on in 2014. He most recently served as Babson College provost, senior vice president, and President’s Endowed Professor of Accounting.
Previously, he served as the associate dean for Undergraduate Matters in the Isenberg School of Management at the University of Massachusetts Amherst, and on the faculty of Boston College.
Hanno leads Babson’s many initiatives in Africa as the executive director of the Babson-Rwanda Entrepreneurship Center, focusing on creating a more entrepreneurial environment across the continent. He has empowered thousands of youths in four African countries through a unique curriculum he has developed called From Ideas to Action as founder and director of the Babson Entrepreneurial Leadership Academies.
A vocal advocate for responsible management education, Hanno serves on the Board of the Globally Responsible Leadership Initiative, a worldwide network dedicated to developing a next generation of responsible leaders. He also plays an active role in the United Nations Principles of Responsible Management Education movement, including contributing to several of its annual forums and publications.
“I’m honored to be recognized with this award by Beta Alpha Psi. From my initial involvement with BAP as an undergrad all the way up to the work I have done with the chapter at the University of Massachusetts Amherst, I have always been proud to be a member and appreciated the many development opportunities the organization provides. In particular, BAP has exerted a strong influence on me through its focus on social responsibility, something that drives many of my own activities and that I have tried to develop in the many students I have worked with during my career in academia. Earning the Business Information Professional of the Year award validates the importance of my work in this area and is a true honor. Thank you!”
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BUSINESS INFORMATION PROFESSIONALS OF THE YEAR BUSINESS AND INDUSTRY
Glenn Johnson — President — Horizon Air and Executive Vice President Alaska Air Group
Nominating Chapter — Mu Psi (University of Washington Bothell)
Glenn Johnson was appointed president of Horizon Air in June 2010. He also serves as an executive vice president of Alaska Air Group. Johnson joined Alaska Air Group in 1982. In his nearly 30 years with Horizon Air and Alaska Airlines, he has served the company in a wide range of roles, including:
Chief financial officer and executive vice president of finance at Alaska Air Group and Alaska Airlines, leading the finance, information technology, corporate real estate, strategic planning and fuel administration organizations
Alaska Airlines executive vice president of airport services and maintenance and engineering, leading the airline’s maintenance, ground operations and airport customer service functions
Horizon Air senior vice president of customer services, leading station operations at 40 airports in the United States and Canada
Horizon Air vice president of finance and treasurer.
A graduate of the University of Washington, Johnson worked in public accounting, where he achieved his CPA designation, before entering the airline business
“I am honored to receive this award from Beta Alpha Psi,” Glenn Johnson said. “My association with Beta Alpha Psi during my college career at the University of Washington was an important foundational element in my career success over the years.”
BUSINESS INFORMATION PROFESSIONALS OF THE YEARPROFESSIONAL SERVICES
Thomas Hilton — Partner & Director— Forensic and Valuation Services Group, Anders Minkler Huber & Helm LLP
Nominating Chapter — Zeta Nu (Saint Louis University)
After earning a Masters of Finance from Saint Louis University and a CPA designation, Thomas Hilton began his career at Anders Minkler & Diehl LLP, and now leads the Forensic and Valuation Services Group at the firm.
As a practicing professional for nearly 35 years, Hilton also stands as a leader in the profession in his contribution toward building the CPA pipeline. He sits on the Board of Directors of the American Institute of CPAs, where he spends time ensuring the future success of the accounting profession.
Hilton also is an adjunct professor of forensic accounting at the John Cook School of Business at Saint Louis University where he stands as the Chair of the Accounting Advisory Board.
Outside of the profession, Hilton serves his local community as the current President of the Board of Governors for Cardinal Glennon Children’s Foundation.
.
“Judging from the quality of the young people I saw and met at the BAP annual meeting, the future of the accounting profession has never been better.”
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OUTSTANDING DEAN
Dr. Bob Wood was the Dean of Salisbury University’s Franklin P. Perdue School of Business. In July, he assumed the dean’s position at Mitchell College at the University of South Alabama. Before joining Salisbury, Dr. Wood was Associate Dean and Heidtke Professor of Finance at the College of Business at Tennessee Tech University. Professionally, he has published and presented nationally and internationally.
Wood holds a B.S. and M.B.A. from Arkansas State University and a Ph.D. (Finance) from Louisiana State University. Prior to entering higher education, Wood worked for Dean Witter Reynolds, The Upjohn Company and Abbott Laboratories. He is a member of Phi Kappa Phi, Beta Gamma Sigma, and Omega Delta Kappa honor societies.
The Outstanding Dean Award recognizes deans for their significant contribution in faculty support and/or financialsupport to helping achieve the goals and objectives of their university’s Beta Alpha Psi chapter. Without the deans’support, many Beta Alpha Psi chapters would be underfunded and not able to deliver the types of programsand activities needed to provide an adequate Beta Alpha Psi experience.
Dr. Bob Wood — Provost and Senior Vice President, Babson College
Nominating Chapter — Iota Pi (Salisbury University)
“Dean Wood makes his No. 1 job priority evident to all who meet him: the success of his students,” said Lori Defnet, former chapter president. “He consistently sets himself apart by getting active in the lives of the students in the business school, and especially those students in Iota Pi.”
“I recommended the establishment of the award after realizing the full scope of Bernie and KPMG’s notable impact on Beta Alpha Psi,” said Jan Taylor Morris, Beta Alpha Psi outgoing President. “We have been able to offer incomparable value and many benefits to our members due to Bernie’s championing of Beta Alpha Psi through the years.”
The title of the award recognizes the continual financial support of KPMG and the KPMG Foundation, as well as Milano’s exceptional commitment in securing said funding and his service to the Beta Alpha Psi Board of Directors, both as President (1999–2000) and as an advisory figure to the Board.
“While I am honored and humbled by this award, it is the vision, courage, commitment and generosity of KPMG that has allowed our programs to achieve the results this award celebrates,” Milano said. “Few organizations are willing to stay the course; KPMG has been steadfast in its approach to systemic change in business education.”
The KPMG Foundation, created in 1968, has operated on a platform that is defined by the concept of corporate social responsibility. The KPMG Foundation has embraced this concept of giving back and has invested resources to a number of initiatives that have greatly affected business higher education. It is through these ideals that Bernard J. Milano has contributed a lifetime’s worth of value not only to Beta Alpha Psi but also to the accounting profession.
The KPMG/Bernard J. Milano Lifetime Service Award was created to honor distinguished and sustained service to the goals and purpose of Beta Alpha Psi. The award will recognize individuals who have shown a lifetime commitment to the advancement of Beta Alpha Psi, through service efforts, financial contributions or advocacy of the organization.
Recipient: Bernard J. Milano
LIFETIME SERVICE AWARD
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OUTSTANDING FACULTY ADVISORSOne of the most vital elements in the success of a Beta Alpha Psi chapter is the faculty advisor. Through countless hours of commitment, individual faculty advisors make substantial contributions to the professional growth and development of business financial information students. Beta Alpha Psi, through its cooperation with McGladrey LLP, is privileged to recognize outstanding faculty advisors who have demonstrated those rare qualities that place them at the top of all the dedicated faculty advisors. Honorees receive a plaque and a cash award of $5,000 in recognition of their service to Beta Alpha Psi.
“It is an amazing honor to receive the Outstanding Faculty Advisor award. As a faculty advisor of BAP, it has been an incredibly rewarding experience to work with so many outstanding students as they prepare for their careers in accounting. I am thankful for all of my colleagues who help to advise me in this role.”
Cheryl Westen — Western Illinois University, Zeta Beta Chapter
“It is such a privilege to work with amazing students and I feel very honored to be recognized by Beta Alpha Psi. It is an organization that I truly believe will make a huge difference in the lives of my students.”
Marci Butterfield — University of Utah, Epsilon Xi Chapter
“I truly appreciate the students nominating me for this award. It’s been a joy to work with the Anderson School Beta Alpha Psi members over the years. It’s been one of my favorite parts of my career in academia.”
Craig White — The University of New Mexico, Theta Xi Chapter
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Regional meetings focus on 1) promoting inter-chapter activities; 2) encouraging student interest in emerging business issues; 3) providing students the opportunity to develop communication skills, both written and oral; 4) providing members with the opportunity to exchange ideas concerning chapter operations and activities in both formal and informal settings; 5) providing the opportunity for general-leadership training for officers and members; and 6) fostering innovative and unique activities to promote and share best practices.
MORE THAN 2,000
ATTENDEES TOTAL 224
CHAPTERS REPRESENTED
9 MEETING
LOCATIONS
Anaheim, CAOrlando, FL
San Antonio, TXHartford, CT
Salt Lake City, UTIndianapolis, IN
Omaha, NEPortland, OR
Auckland, New Zealand
Students at the Atlantic Coast Regional meeting participate in an activity to gauge personality types.
HIGHLIGHTS More than 2,000 attendees total
224 chapters represented
Collaboration Exercise — The Search for the Lost Dutchman’s Gold Mine
Opening keynote sessions delivered by various high-ranking executives from companies such as the IMA, Public Company Accounting Oversight Board (PCAOB) and Intel Corporation
REGIONAL MEETINGS
Beta Alpha Psi members pose for a picture between sessions.
Beta Alpha Psi members pose for a picture between sessions.
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Sponsored by Deloitte, the Best Practices competitions give members a chance to present their expertise in a topic of their choice. The Best Practices topics for 2014 included: enhancing a soft skill through an innovative program (innovation category); inspiring high school or community college students to pursue a career in accounting, finance or information systems (inspiration category); and developing a program to improve business writing skills of BAP members and candidates (imagination category).
LEADERSHIP
STRATEGIC PLANNING
COLLABORATION
REGIONAL MEETING BEST PRACTICES
REGIONWesternSoutheast
SouthwestAtlantic Coast MidwestMissouri Valley Rocky Mountain Northwest
REGIONWesternSoutheastSouthwest Atlantic CoastMidwestMissouri Valley Rocky Mountain Northwest
REGIONWesternSoutheastSouthwest Atlantic CoastAtlantic CoastMidwestMissouri Valley Missouri ValleyRocky Mountain NorthwestNorthwest
UNIVERSITYSan Diego State University University of North Carolina at CharlotteNew Mexico State UniversityJames Madison UniversityKent State UniversityMissouri State UniversityBrigham Young UniversityWestern Washington University
UNIVERSITYUniversity of San Diego The University of TampaUniversity of Louisiana at LafayetteOld Dominion UniversityWestern Illinois UniversityUniversity of Nebraska-LincolnUniversity of Northern ColoradoPacific Lutheran University
UNIVERSITYSan Diego State University University of Central FloridaUniversity of Texas at El Paso Pace University*Towson University*Youngstown State UniversitySoutheast Missouri State UniversityUniversity of Central Missouri*University of Denver University of Washington*Seattle University*
CHAPTER NAMEBeta Eta Eta Alpha
Delta LambdaEta DeltaBeta PsiTheta PiGamma AlphaTheta Phi
CHAPTER NAMEZeta Kappa Lambda BetaKappa Zeta Zeta PiIota LambdaDelta OmicronTheta PsiDelta Rho
CHAPTER NAMEBeta Eta Epsilon GammaTheta BetaIota LamdaIota ZetaKappa XiMu XIIota MuAlpha Zeta DeltaDelta Eta
*Teams who collaborated together on presentations
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ATLANTA, GA, AUG. 7–9
HIGHLIGHTS
More than 1,200 attendees representing 230 chapters
Participation in BAP International Day of Literacy
27 chapters competed in Best Practices competitions
72 members participated in Project Run With It
90 chapters participated in chapter operations presentations
700+ attendees, Atlanta Braves baseball game
MORE THAN
1,200 ATTENDEES
230 CHAPTERS
REPRESENTED
27 COMPETED IN BEST
PRACTICES COMPETITIONS
72 PARTICIPATED
IN PROJECT RUN WITH IT
90 PARTICIPATED
IN CHAPTER OPERATIONS
2014 ANNUAL MEETING
Students at the annual meeting..
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BAP International Day of Literacy
During the 2014 annual meeting in Atlanta, BAP partnered with KPMG LLP, KPMG Foundation, First book and the United Way of Greater Atlanta for BAP International Day of Literacy. Volunteers visited eight elementary schools and one Junior Achievement center in Atlanta to distribute books and engage in activities focused around early literacy. The program introduced More than 4,000 students to the exciting world of reading. Also, as a part of BAP International Day of Literacy volunteers donated school supplies.
960
VOLUNTEERS
4,409 BOOKS DELIVERED
200 BACKPACKS
DONATED BY ROBERT HALF
INTERNATIONAL
700 TICKETS PURCHASED
FOR BRAVES BASEBALL GAME
BAP INTERNATIONAL DAY OF LITERACY
KEY METRICS
960 volunteers
4,409 books donated
200 backpacks donated by 360 Degrees of Financial Literacy
2,642 school supply items donated by BAP Annual Meeting attendees
2,000 bottles of water donated by Coca-Cola
SCHOOL SUPPLIES DONATED
250 glue sticks
300 notebooks
450 pencils
25 scissors
50 miscellaneous other items
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Each category winner from the eight regional meetings competed at the annual meeting against other regional winners — 27 chapters competed. The annual meeting Best Practices competition is sponsored by Deloitte.
ANNUAL MEETING BEST PRACTICES
LEADERSHIP 1st Place New Mexico State University Delta Lambda Chapter
2nd Place San Diego State University Beta Eta Chapter
3rd Place Missouri State University Theta Pi Chapter
University of Denver Alpha Zeta Chapter
University of Washington and Delta and Delta Eta Seattle University Chapter
Pace University and Iota Lambda and Iota Towson University Zeta Chapter
COLLABORATION 1st Place
2nd Place
3rd Place
STRATEGIC PLANNING 1st Place University of Tampa Lambda Beta Chapter
2nd Place Old Dominion University Zeta Pi Chapter
3rd Place University of Nebraska-Lincoln Delta Omicron Chapter
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Sponsored by Moss Adams LLP, Project Run With It (PRWI) involves up to 72 BAP chapter members working together during the annual meeting to develop solutions to real life business problems of actual not-for-profit (NFP) agencies. The students work in 18 teams of four and have about one day to develop a formal presentation showcasing their solution to the business issues presented by the NFPs in their “request for proposal” for consulting services. Before the meeting, the NFP agencies provide background information and during the meeting are available to answer the participating students’ questions.
PROJECT RUN WITH IT
NOT-FOR-PROFIT WINNERJewish Family & Career Services A6
CaringWorks Inc. B2
Georgia Center for Nonprofits C3
Team A6
Team C3
Team B2
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2014 PARTICIPANTS
David LascoLisa Ward Emily WaiNick Bresnahan
Fordham UniversityUniversity of Texas at Tyler University of Technology Sydney, AustraliaThe University of Alabama
Matthew BarryCaitlyn Saxton Harriette MooreJohn Pezzatti
Hofstra UniversityCleveland State University Victoria University of WellingtonUniversity of South Florida St. Petersburg
Maria MartinezJennifer SymmondsSyavie Ghamry Tully Lineberger
Virginia Commonwealth UniversityWestern Illinois UniversityThe University of Auckland Business School Valdosta State University
Jeremy BartulaAmy ZimmermannMandeep SinghChaoran Zhang
SUNY at BuffaloBradley UniversityUniversity of WaikatoLouisiana Tech University
Old Dominion UniversityGrand Valley State UniversityFort Lewis CollegeUniversity of Texas at Arlington
Marissa TrudoRyan MillironAmanda GwaltneyTyler Peschka
Alexandria Beehler-EvansJessica HadleyFrancis BennettVidhee Patel
Ohio Northern University Brigham Young UniversitySouthern Illinois University EdwardsvilleMarshall University
TEAM A1 UNIVERSITY
TEAM A2 UNIVERSITY
TEAM A3 UNIVERSITY
TEAM A4 UNIVERSITY
TEAM A5 UNIVERSITY
TEAM A6 UNIVERSITY
PROJECT RUN WITH IT
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2014 PARTICIPANTS
Caleb NewcombGeorge HylindMatthew HillMegan Neal
Elon University Loyola University Maryland Xavier University Stephen F. Austin State University
Doug SchmidHunter Hoyer Alexander WilloughbyFranz Hutter
Bentley UniversityUniversity of Central Missouri Mississippi State UniversityTexas State University
Josh JareckeBrandon MyhreJennifer Kingsmore Sergio Robles
University of Colorado DenverUniversity of North DakotaUniversity of South Carolina University of Texas at El Paso
Lingzhi DaiKatherine BaremanJames CarneyBrian Gehres
Pace University Western Washington University University of Central Arkansas The University of Tampa
Lamar University Salisbury University Pacific Lutheran University University of South Florida
Jason BurkettRyan SchlegelNicholaus Townsend-FalckSara Winston
Frank CalifanoMargaret HansenKelsey GarrowMatthew Aguilar
St. John’s University-Staten Island Campus Seattle University Sam Houston State University Clemson University
TEAM B1 UNIVERSITY
TEAM B2 UNIVERSITY
TEAM B3 UNIVERSITY
TEAM B4 UNIVERSITY
TEAM B5 UNIVERSITY
TEAM B6 UNIVERSITY
PROJECT RUN WITH IT
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2014 PARTICIPANTS
Nicholas BonasoroVivek Parekh Saxon JohnsonSusan Xing
Suffolk University Middle Tennessee State University Gonzaga University University of Southern California
Rose WardJulie Parsons Omozokpia OlumeseKurt Osterkamp
SUNY Oswego Washington State University - Vancouver North Carolina A&T State University California State University-Fullerton
Shannon BiggsTyler AsheSabrina McEnaney Amiee Moser
San Diego State University Ithaca College Boise State University University of North Carolina at Charlotte
Corey PorterCatie MaasJenna LehkampAntonio Jarek Fernandes
Ohio University University of Idaho Western Kentucky University San Francisco State University
University of Notre Dame University of Washington Samford University University of Hawaii-Manoa
Shailee KumarAnna ClyburnMichael EngerKaniala Gomes
Zachary Johnson Katie ZoellnerLaurence BaudertStevie Post
The University of Memphis Northern Illinois University The University of Sydney-Australia California State University-Northridge
TEAM C1 UNIVERSITY
TEAM C2 UNIVERSITY
TEAM C3 UNIVERSITY
TEAM C4 UNIVERSITY
TEAM C5 UNIVERSITY
TEAM C6 UNIVERSITY
PROJECT RUN WITH IT
Pace University Western Washington University University of Central Arkansas The University of Tampa
Lamar University Salisbury University Pacific Lutheran University University of South Florida
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Sponsored by Grant Thornton LLP, the purpose of this award is to help encourage ethical behavior throughout the accounting, finance and information technology professions. The business world has experienced the ethical failures of many individuals and organizations in the accounting and finance profession over the past decade. These actions have had detrimental and lasting effects on the economy and individual investors and have damaged the reputation of information professions.
It is a core value of Beta Alpha Psi to encourage ethical behavior. One way to encourage this behavior is to examine difficult situations demanding ethical responses and by recognizing the resulting exemplary ethical behavior by individuals and/or organizations in the professions, government, business, academia and not-for-profits. Chapters submit an abstract for a planned project that encourages ethical behavior and a summary with outcomes and an overall assessment after the project is completed.
ETHICS AWARD
WINNERSUniversity of Massachusetts, Amherst Delta Nu Chapter
Washington State University, Vancouver Nu Theta Chapter
Seattle University Delta Eta Chapter
Portland State University Epsilon Alpha Chapter
Ethics Award winners
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BAP recognizes that many chapters often go above and beyond what is required to become a Superior Chapter. In an effort to reward these chapters, the KPMG and the KPMG Foundation work with BAP to sponsor the KPMG Gold Challenge, a competition that provides an annual $2,500 award to several top chapters. Eligible chapters are required to submit a 7-minute video presentation which explains and/or demonstrates why their chapter deserves the KPMG Gold Challenge award.
GOLD CHALLENGE
The Gold chapter status is the highest award level a chapter can receive. Only a limited number of chapters can be awarded the Gold chapter status within one academic year. The award is given to chapters that continually demonstrate and exemplify the highest values of Beta Alpha Psi: leadership, scholastic success, lifelong learning and development, service, and ethical behavior.
WINNERSFlorida International University Eta Iota Chapter
University of Central Florida Epsilon Gamma Chapter
Bradley University Zeta Lambda Chapter
University of South Florida Delta Gamma Chapter
Seattle University Delta Eta Chapter
San Diego State University Beta Eta Chapter
Valdosta State University Mu Zeta Chapter
Hofstra University Delta Pi Chapter
Texas State University Kappa Eta Chapter
Western Illinois University Zeta Beta Chapter
University at Buffalo Zeta Theta Chapter
University of Utah Epsilon Xi Chapter
The University of Alabama Alpha Beta Chapter
University of Washington Delta Chapter
University of Arkansas Alpha Iota Chapter
Gold Challenge Winners
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To qualify as superior or distinguished, each chapter must report a designated amount of Reaching Out Activities and each chapter member/candidate must have a certain number of professional and service hours, as set forth in the Program for Chapter Activities. Each Superior Chapter receives a monetary award of $275 from KPMG LLP and the KPMG Foundation.
SUPERIOR AND DISTINGUISHED CHAPTERS
SUPERIOR WINNERSAppalachian State University
Auburn University
Ball State University
Bentley University
Boise State University
Bowling Green State University
Brigham Young University
California State Polytechnic University-Pomona
California State University-East Bay
California State University-Fresno
California State University-Fullerton
California State University-Los Angeles
California State University-Northridge
California State University-Sacramento
Case Western Reserve University
Central Washington University
Coastal Carolina University
Colorado State University
Creighton University
CUNY-Baruch College
Eastern Illinois University
Eastern Michigan University
Elon University
Florida Atlantic University
Florida Gulf Coast University
Florida State University
Fordham University
Fort Lewis College
Georgia Southern University
Georgia State University
Gonzaga University
Idaho State University
Ithaca College
James Madison University
Kent State University
Long Island University-Post
Louisiana State University
Louisiana Tech University
Loyola University Maryland
Manhattan College
Marquette University
Marshall University
Middle Tennessee State University
Missouri State University
Murray State University
North Carolina A&T State University
Northern Arizona University
Northern Illinois University
Oakland University
Ohio Northern University
Ohio University
Oklahoma State University
Old Dominion University
Oregon State University
Pace University
Portland State University
Saint Louis University
Salisbury University
Sam Houston State University
Samford University
San Francisco State University
San Jose State University
Southeast Missouri State University
Southeastern Louisiana University
St. John’s University
St. John’s University - Staten Island Campus
Stephen F. Austin State University
Stonehill College
Suffolk University
SUNY Oswego
Syracuse University
Tennessee Tech University
The Ohio State University
The University of Memphis
The University of New Mexico
The University of Southern Mississippi
The University of Sydney - Australia
The University of Tampa
Towson University
Truman State University
University of Akron
University of Alabama at Birmingham
University of Central Arkansas
University of Central Missouri
University of Connecticut
University of Dayton
University of Denver
University of Hawaii-Manoa
University of Houston - Clear Lake
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SUPERIOR WINNERS CONTINUED
University of Idaho
University of Iowa
University of Kentucky
University of Louisiana at Lafayette
University of Louisiana at Monroe
University of Louisville
University of Massachusetts - Amherst
University of Miami
University of Michigan-Dearborn
University of Mississippi
University of Missouri-St. Louis
University of Missouri-Kansas City
University of Montana
University of Nebraska-Lincoln
University of Nebraska at Omaha
University of Nevada-Las Vegas
University of Nevada-Reno
University of New Orleans
University of North Carolina at Charlotte
University of North Carolina at Greensboro
University of Northern Colorado
University of Oregon
University of Pittsburgh
University of San Diego
University of South Alabama
University of South Carolina
University of South Dakota
University of South Florida St. Petersburg
University of Southern California
University of Southern Indiana
University of Tennessee at Knoxville
University of Tennessee at Chattanooga
University of Texas at Arlington
University of Texas at El Paso
University of Texas at Tyler
University of Washington Bothell
University of Wisconsin-Whitewater
University of Wyoming
Utah State University
Virginia Commonwealth University
Virginia Tech
Washington State University
Washington State University - Vancouver
Weber State University
West Chester University
Western Kentucky University
Western Michigan University
Western Washington University
Wichita State University
Winston-Salem State University
Wright State University
Youngstown State University
DISTINGUISHED WINNERSArizona State University
Belmont University
California State University-San Bernardino
Clemson University
Cleveland State University
Eastern Washington University
Grand Valley State University
Iowa State University
Kennesaw State University
Lamar University
Montana State University-Bozeman
New Mexico State University
New York University
North Carolina State University
Pittsburg State University
Quinnipiac University
Southern Illinois University Edwardsville
The University of Auckland Business School
University at Albany
University of Arizona
University of Colorado Denver
University of Georgia
University of North Georgia
University of North Texas
University of Notre Dame
University of Toledo
University of Wisconsin - Madison
University of Wisconsin Oshkosh
Wayne State University
MOST IMPROVED CHAPTER WINNERUniversity of Tennessee at Chattanooga (Eta Kappa Chapter)
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 25
An inclusive work environment that values and leverages the unique differences of a diverse team is critical for the future success of the global business community. More than 90 percent (90%) of the Fortune 500 companies have active diversity initiatives in place and most include diversity as part of its business strategy. Ernst & Young leadership fully understands the importance of an inclusive environment that values the contributions of its entire people. The firm believes that a key element of effective teaming is the diversity of thought generated from team members from different backgrounds and perspectives. Highly effective leaders are those who are experienced at leading diverse teams. Ernst & Young also believes that it is important for future leaders of the business community to have a great appreciation and understanding of how to successfully team in a diverse and inclusive environment. Accordingly, EY has created the Ernst & Young LLP Inclusive Leadership Award.
Chapters submit an abstract on what diversity means to the chapter and its importance in the professional world. Chapters must also include a plan to make an impact at the chapter level and strategies that could be employed by the school of business to impact their overall diversity.
INCLUSIVE LEADERSHIP AWARDS
WINNERS1st place University of Missouri - St. Louis Gamma Psi
2nd place Western Washington University Theta Phi
3rd place University at Buffalo Zeta Theta
3rd place The University of Memphis Gamma Chi
3rd place Wright State University Eta Psi
Inclusive Leadership Award winners with EY representative Paige Sacks
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The VITA Program offers free tax help to people who make $50,000 or less and need assistance in preparing their own tax returns. IRS-certified volunteers provide free basic income tax return preparation to qualified individuals in local communities. They can inform taxpayers about special tax credits for which they may qualify such as the Earned Income Tax Credit, Child Tax Credit, and Credit for the Elderly or the Disabled.
Members of Beta Alpha Psi proudly contribute their time by volunteering for VITA. Below are the results from our VITA Competition for 2014.
VITA AWARDS
University at Buffalo Zeta Theta Chapter
San Francisco State UniversityUniversity of Massachusetts, Amherst University at Buffalo
Beta Chi ChapterDelta Nu ChapterZeta Theta Chapter
University of Washington, BothellPortland State University University of Montana
Mu Psi Chapter Epsilon Alpha ChapterDelta Kappa Chapter
Utah State UniversityUniversity of Massachusetts, AmherstSan Francisco State UniversityUniversity of ConnecticutUniversity at BuffaloGonzaga University
Delta Omega ChapterDelta Nu ChapterBeta Chi ChapterEpsilon Lambda ChapterZeta Theta ChapterIota Delta Chapter
Northern Michigan UniversityUniversity at BuffaloUtah State University
Lambda Iota ChapterZeta Theta ChapterDelta Omega Chapter
SUPERIOR AWARD (OUTSTANDING PERFORMANCE IN ALL 3 CATEGORIES)
VOLUNTEER HOURS (TOP THREE CHAPTERS WITH THE MOST VOLUNTEER HOURS)
VOLUNTEER HOURS AT DIFFERENT LOCATION (TOP THREE CHAPTERS WITH THE MOST VOLUNTEERS WITH AT LEAST 25 HOURS)
RETURN PREPARATION (CHAPTERS WHO PREPARED MORE THAN 500 RETURNS)
INNOVATIVE AWARD (CHAPTERS WHO PARTICIPATED IN THE VIRTUAL VITA PROGRAM)
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 27
Sponsored by the AICPA, the Medal of Inspiration is bestowed upon a student who has experienced extreme hardships in his or her life and who has demonstrated an unusually high level of success despite that adversity. The award includes a $5,000 cash stipend.
Winner: A. Lucien Butler, Utah State University From a very young age, Butler was prevented from receiving an education and was required to work at home. His situation was not discovered until he was 14, at which point a court order was issued that finally allowed him to attend school.
Once in school, Butler was substantially behind his peers and struggled to grasp academic concepts. However, through hard work with his teachers and taking extra classes, he was able to overcome these challenges.
Eventually at 16, he left the unfortunate and difficult situation at home. He began living with the Butler family, who had volunteered to take him in until he finished high school, and ultimately adopted him.
After graduating high school, Butler joined the National Guard and went on combat missions in Afghanistan. For his service, he was awarded the Honor of the Purple Heart, an award that commemorates the sacrifices of America’s servicemen and servicewomen who were wounded in battle.
After completing his National Guard service, Butler acquired an accounting degree at Utah State University. While at USU, he worked with Grant Thornton on a tax internship and performed volunteer work in his Beta Alpha Psi chapter and in the community, all the while excelling in the classroom.
Butler is a Master of Accounting candidate at Utah State University where he holds a 3.9 GPA. He also is the incoming vice president for the USU Delta Omega Chapter of Beta Alpha Psi.
MEDAL OF INSPIRATION AWARD
“One of the great things school did for me was it opened my eyes to what the world was like. I started to understand that the only way I was going to make something of myself would be through education.”
Lucien Butler, Utah State University
Medal of Inspiration Award winner: Lucien Butler
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Beta Alpha Psi has a long-standing history of providing development, leadership and service opportunities to its members, which total more than 300,000 since its inception in 1919. Like so many organizations in today’s globally based world, a strategic decision was made to expand our organizational borders beyond the United States and become an international organization with the ultimate goal of providing the same opportunities noted above to students across the globe. The organization has accomplished a great deal in a short time.
HIGHLIGHTS
New chapter installations: 3
West Chester University — Nu Zeta Chapter
Washington State University Vancouver — Nu Theta Chapter
University of Waikato — The Waikato Chapter
New Petitions: 6
Active chapters: 298
Active members: 17,000+
17,000+ ACTIVE MEMBERS
298
ACTIVE CHAPTERS 6
NEW PETITIONING CHAPTERS
3 NEW CHAPTER
INSTALLATIONS
West Chester University — Nu Zeta Chapter
Washington State University Vancouver
— Nu Theta Chapter
University of Waikato — The Waikato Chapter
EXPANSION
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 29
FINANCIAL STATEMENTS
To the Board of DirectorsBeta Alpha Psi
We have audited the accompanying financial statements of Beta Alpha Psi, which comprise the statements of financial position as of April 30, 2014 and 2013, and the related statements of activities and Cash flows for the years then ended, and the related-notes-to the-financial-statements.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Beta Alpha Psi as of April 30, 2014 and 2013, and the changes in its net assets and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
Cohn Reznick LLPRoseland, New JerseyJuly 8, 2014
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STATEMENTS OF FINANCIAL POSITION
YEARS ENDED APRIL 30, 2014 APRIL 30, 2013
Current assets
Cash and cash equivalents $1,923,292 $1,638,399
Investments 145,000 186,000
Accounts receivable 93,177 63,210
Prepaid expenses and other assets 61,369 19,866
Total current assets $2,222,838 $1,907,475
Long-term assets
Investments 94,000 145,000
Website development, net of accumulated amortization $65,153 and $170,595
189,715 231,963
TOTALS $2,506,553 $2,284,438
Liabilities
Accounts payable $161,964 $93,286
Unearned revenue 41,510 43,910
Total liabilities $203,474 $137,196
Net assets
Unrestricted 2,218,049 2,053,736
Temporarily restricted 85,030 93,506
Total net assets $2,303,079 $2,147,242
TOTALS $2,506,553 $2,284,438
See Notes to Financial Statements.
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 31
STATEMENTS OF ACTIVITIES
CHANGES IN UNRESTRICTED NET ASSETS APRIL 30, 2014 APRIL 30, 2013
Revenue and support
Membership fees $724,180 $645,040
Associates program contributions 195,000 184,000
Chapter maintenance fees 85,500 83,400
Annual student convention 305,648 253,663
Charter and petition fees 7,000 9,000
Regional meetings 166,690 145,620
Interest income 3,437 5,131
Contributed services 60,400 64,480
Net assets released from restrictions 215,002 204,192
Miscellaneous 3,260 5,501
Total unrestricted revenue and support $1,766,117 $1,600,027
Expenses
Program expenses
Annual student convention $477,118 $345,425
Community service day 32,771 50,000
Board of Directors meetings 38,089 28,245
Chapter installations and visitations 712 6,839
Banners and gavels 3,225 4,274
Regional meetings 259,735 278,957
Superior Chapter Award Program 40,700 37,125
Best practice awards 29,625 29,750
Diversity awards 13,250 11,500
Faculty advisor awards 25,000 25,000
Gold Challenge awards 30,000 22,500
Project Run With It awards 12,000 12,000
BIPOY awards 6,000 6,000
Ethics awards 19,000 15,000
Miscellaneous 5,859 5,039
Total program expenses 993,084 877,654
General and administrative 608,720 559,561
Total expenses 1,601,804 1,437,215
Change in unrestricted net assets $164,313 $162,812
Change in temporarily restricted net assets
Contributions 206,526 216,675
Net assets released from restrictions (215,002) (204,192)
Change in temporarily restricted net assets (8,476) 12,483
Change in net assets 155,837 175,295
Net assets, beginning of year 2,147,242 1,971,947
Net assets, end of year $2,303,079 $2,147,242
See Notes to Financial Statements.
32
STATEMENTS OF CASH FLOWSAPRIL 30, 2014 APRIL 30, 2013
Operating Activities
Change in net assets $155,837 $175,295
Adjustments to reconcile change in net assets to net cash provided by (used in) operating activities:
Amortization 64,950 1,744
Changes in operating assets and liabilities
Accounts receivable (29,967) (12,130)
Prepaid expenses and other assets (41,503) 3,678
Accounts payable 68,678 (206,189)
Unearned revenue (2,400) 6,540
Net cash provided by (used in) operating activities $215,595 ($31,062)
Investing activities
Capital expenditures (22,702) (131,949)
Proceeds from maturation of investments 186,000 237,000
Purchase of investments (94,000) (145,000)
Net cash used in investing activities 69,298 (39,949)
Net increase (decrease) in cash and cash equivalents 284,893 (71,011)
Cash and cash equivalents, beginning of year 1,638,399 1,709,410
Cash and cash equivalents, end of year $1,923,292 $1,638,399
See Notes to Financial Statements.
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 33
NOTE 1 — PURPOSE AND SUMMARY OF ACCOUNTING POLICIES
Purpose Beta Alpha Psi (the “Organization”) is a nonprofit international honor and service organization for accounting, finance and information systems students at AACSB (The Association to Advance Collegiate Schools of Business) or EQUIS (European Quality Improvement System) accredited universities. The Organization provides opportunities for development of technical and professional skills to complement university education; participation in community service; and interaction among students, faculty and professionals. The Organization’s objectives are accomplished through the activities of its chapters. Financial resources to promote these activities are provided by the chapters and various public and private firms.
Accounting method The accompanying financial statements are prepared on the accrual basis of accounting.
Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
Cash and cash equivalents The Organization considers instruments with an original maturity of three months or less when purchased to be cash equivalents. As of April 30, 2014 and 2013, the Organization’s cash equivalents consisted primarily of money market funds.
Investments Short and long-term investments· at April 30, 2014 and 2013, consist of certificates of deposit with varying maturity lengths. Certificates of deposit with maturities of greater than ninety days, but less than one year are considered short-term. Certificates of deposit with maturities greater than one year from the current fiscal year end are considered held long-term.
Concentrations of credit risk Financial instruments which potentially subject the Organization to concentrations of credit risk consist of cash and cash equivalents and certificates of deposit. The Organization maintains its cash and cash equivalents and certificates of deposit in account balances, which may at times exceed the insured amount under the Federal Deposit Insurance Corporation (“FDIC”) and the Securities Investor Protection Corporation (“SIPC”). As of April 30, 2014 and 2013, the Organization’s cash balance exceeded the current insured amount under FDIC and SIPC by $1,029,962 and $874,156, respectively.
Accounts and other receivables Credit risk with respect to accounts and other receivables is limited because the Organization deals with a large number of members in a wide geographic area. The Organization closely monitors the extension of credit to its members. On a periodic basis, the Organization evaluates its accounts and other receivables and establishes an allowance for doubtful accounts, based on a history of past write-offs and collections and current credit considerations. As of April 30, 2014 and 2013, the Organization has no significant concentrations of credit risk and there is no allowance for doubtful accounts established as management believes that all amounts are collectible.
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NOTE 1 — PURPOSE AND SUMMARY OF ACCOUNTING POLICIES
Website development costs All costs incurred in planning the development of a website are expensed as incurred. Costs, other than general and administrative and overhead costs, incurred in the website application and infrastructure development stage, which involve acquiring or developing hardware and software to operate the website, are capitalized. Fees paid to an Internet service provider for hosting a website on its server(s) connected to the Internet are expensed over the estimated period of benefit. Other costs incurred during the operating stage, such as training, administration and maintenance costs, are expensed as incurred. Costs incurred during the operating stage for upgrades and enhancements of a website are capitalized if it is probable that they will result in added functionality. Capitalized website development costs are amortized on a straight-line basis over their estimated useful life. The unamortized costs remaining as of April 30, 2014 and 2013, represent outsourced costs associated with new site development and enhancements.
Net assets The Organization’s financial resources have been combined into two net asset classes (unrestricted and temporarily restricted) based upon stipulations imposed by donors. Unrestricted net assets include expendable resources over which the Organization’s Board of Directors has discretionary control and are used to carry out the Organization’s operations in accordance with its by-laws. Temporarily restricted net assets include resources expendable only for those purposes specified by a donor or grantor. The restrictions are satisfied by specific expenditures of the Organization.
Contributed services The Organization recognizes contribution revenue for certain contributed services received at the fair value of those services. Those services include facilities and organizational support valued at $20,400 and $24,480 for the years ended April 30, 2014 and 2013, respectively, furnished by the American Institute of Certified Public Accountants (“AICPA”). See Note 5 for additional services provided by the AICPA. In addition, a significant amount of time, for which no value has been assigned as it does not meet the criteria for recognition, was volunteered by professionals, professors and students to the activities of the Organization.
Revenue recognition Revenue from membership, chapter maintenance, charter and petition fees is recorded in the period the fees are due. Contributions are recognized in the period received. Revenue received from the annual student convention, regional meetings and other conferences is recognized in the period in which the event occurs.
Income taxes The Organization is a not-for-profit agency exempt from Federal income tax under Section 501(c)(3) of the Internal Revenue Code and has been classified as a charitable organization that qualifies for the maximum charitable contribution deduction by donors.
The Organization has no unrecognized tax benefits at April 30, 2014 and 2013. The Organization’s Federal income tax returns prior to fiscal year ended April 30, 2011, are closed and management continually evaluates expiring statutes of limitations, audits, proposed settlements, changes in tax law and new authoritative rulings.
As of April 30, 2014 and 2013, the Organization did not incur any interest and penalties associated with tax matters.
Reclassifications Certain accounts in the 2013 financial statements have been reclassified to conform with the current year’s presentation.
Subsequent events The Organization has evaluated subsequent events through July 8, 2014, the date which the financial statements were available to be issued. No subsequent events requiring disclosure were noted by management.
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 35
NOTE 2 — INVESTMENTS
The certificates of deposit are valued at cost, plus accrued interest.
Investment income consists of interest income of $3,437 and $5,131 in 2013 and 2012, respectively.
INVESTMENTS APRIL 30, 2013 APRIL 30, 2012
Investments consist of the following
Certificates of deposit — short-term $145,000 $186,000
Certificates of deposit — long-term $94,000 145,000
TOTALS $239,000 $331,000
NOTE 3 — TEMPORARILY RESTRICTED NET ASSETS
All temporarily restricted net assets are restricted for use for specific program activities in future periods.
Temporarily restricted net assets as of the end of the fiscal year consist of funds restricted for the following purposes:
Temporarily restricted net assets were released from restrictions in fiscal 2014 and 2013 in fulfillment of the following purposes:
2014 2013
Best practice awards $29,625 $29,750
Faculty advisor awards 25,000 25,000
Community service day 22,771 40,000
Superior chapter awards program 40,700 37,125
Diversity awards 13,250 11,500
Project Run With It awards and program expenses 28,656 17,317
Gold Challenge awards 30,000 22,500
Ethics awards 19,000 15,000
BIPOY awards 6,000 6,000
TOTALS $215,002 $204,192
2014 2013
Best practice awards $ 9,375 $11,850
Faculty advisor awards 13,800 38,800
Superior chapter awards program 2,150 2,150
Inclusive leadership awards 8,750
Project Run With It 33,975 25,956
Community service day 25,730
BIPOY awards 6,000
TOTALS $85,030 $93,506
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Investment in website development, at cost, consists of the following at April 30, 2013 and 2012:
2014 2013 ESTIMATED USEFUL LIVES
Website development $254,868 $402,558 3 Years
Less accumulated amortization 65,153 170,595 -
TOTALS $189,715 $231,963
Amortization expense was $64,950 and $1,744 for the years ended April 30, 2014 and 2013, respectively.
The website and reporting intranet were placed in service in April 2013 and August 2013, respectively. The estimated aggregate amortization expense for each of the years subsequent to April 30, 2014 is as follows:
NOTE 4 — WEBSITE DEVELOPMENT
YEAR ENDING APRIL 30 AMOUNT
2015 $85,020
2016 84,625
2017 20,070
TOTAL $189,715
NOTE 5 — RELATED PARTY
General and administrative expenses include charges from the AICPA for payroll, benefits and out of pocket expenses, which amounted to $388,809 and $394,605 for the years ended April 30, 2014 and 2013, respectively. For the year ended April 30, 2014, the Organization had a receivable of $1,517 from the AICPA for payments made exceeding actual expenses charged. This amount was included in accounts and other receivables. For the year ended April 30, 2013, the Organization owed $17,630, to the AICPA for actual expenses charged exceeding payments made. This amount was included in accounts payable.
2014 BETA ALPHA PSI ANNUAL REPORT | LEADING AT THE CROSSROADS 37
Beta Alpha Psi
220 Leigh Farm Road, Durham, NC 27707-8110
Phone: 919.402.4044 | Fax: 919.402.4040 | Email: [email protected] | Website: bap.org
Twitter: @_BetaAlphaPsi | Facebook: Facebook.com/BetaAlphaPsiIntl | LinkedIn: Beta Alpha Psi
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