UNITED STATES
ACADEMIC DECATHLON ASSOCIATION
FINANCIAL STATEMENTS
APRIL 30, 2012 AND 2011
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
APRIL 30, 2012 AND 2011
TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION
Principal Officials ................................................................................................................................ 1
FINANCIAL SECTION
Independent Auditor’s Report ............................................................................................................. 2
Financial Statements
Statements of Financial Position ...................................................................................................... 3
Statements of Activities.............................................................................................................. 4 – 5
Statements of Cash Flows ............................................................................................................... 6
Notes to Financial Statements ..................................................................................................7 – 11
INTRODUCTORY SECTION
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
PRINCIPAL OFFICIALS
APRIL 30, 2012
POSITION
NAME
President
Robert Brezina
Vice President
Joseph Jones
Secretary
Frank Wurtzel
Chief Financial Officer
Dr. Sally Ann Zoll
Immediate Past President
Dr. E. Arthur Stunard
1
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Board of Directors
United States Academic Decathlon Association
Council Bluffs, Iowa
We have audited the accompanying statements of financial position of the United States Academic
Decathlon Association (a nonprofit corporation) as of April 30, 2012 and 2011, and the related statements
of activities and cash flows for the years then ended. These financial statements are the responsibility of
the Association's management. 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 audits to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on
a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the financial statements. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial
position of the United States Academic Decathlon Association as of April 30, 2012 and 2011, and the
changes in its net assets and cash flows for the years then ended in conformity with accounting principles
generally accepted in the United States of America.
Mathias C. Justin, Ltd.
Certified Public Accountants
Pequot Lakes, Minnesota
September 6, 2012
2
Financial Statements
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF FINANCIAL POSITION
APRIL 30, 2012 AND 2011
2012
2011
ASSETS
Current Assets:
Cash
Accounts Receivable
Interest Receivable
Inventory
Prepaid Insurance
Investments in Securities
Total Current Assets
$
Fixed Assets:
Property and Equipment (Net of Accumulated Depreciation)
TOTAL ASSETS
461,121
8,371
287
2,923
2,525
1,832,191
2,307,418
$
131,681
17,947
1,154
2,439
2,595,330
2,748,551
5,995
8,634
$ 2,313,413
$ 2,757,185
$
$
LIABILITIES AND NET ASSETS
Current Liabilities:
Accounts Payable
Total Current Liabilities/Total Liabilities
Net Assets:
Unrestricted
Temporarily Restricted
Total Net Assets
TOTAL LIABILITIES AND NET ASSETS
See accompanying Notes to Financial Statements.
3
190,128
190,128
296,628
296,628
2,114,635
8,650
2,123,285
2,454,907
5,650
2,460,557
$ 2,313,413
$ 2,757,185
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF ACTIVITIES
YEAR ENDED APRIL 30, 2012
(WITH SUMMARIZED INFORMATION FOR THE YEAR ENDED APRIL 30, 2011)
2012
TEMPORARILY
UNRESTRICTED RESTRICTED
REVENUE
Test Materials, Sales, and Competition Fees
Interest and Dividends on Investments
Contributions
Other
Realized/Unrealized Gain (Loss) on Investments
Interest on Savings
Total
Reclassifications:
Net Assets Released From Restriction
Total Revenue
EXPENSES
Program
Tests, Curriculum, and Competition
Postage and Freight
Shipping Supplies
Awards and Scholarships
Special Projects
Professional Services
Contract Services
Expansion
Travel and Related
Total Program Expenses
Administrative
Contracted Services
Marketing
Travel
Board
Salaries - Unallocated
Employee Benefits/Incentives
Telephone
Insurance
Audit
Office
Depreciation
Payroll Service
Investment Expenses
Shipping
Payroll Taxes - Unallocated
Bank Charges
Total Administrative Expenses
See accompanying Notes to Financial Statements.
$
1,195,759
37,565
4,441
(27,760)
381
1,210,386
$
6,636
1,014
7,650
2011
TOTAL
ALL FUNDS
TOTAL
$
1,195,759
37,565
6,636
5,455
(27,760)
381
1,218,036
$
1,173,384
58,428
2,676
14,142
(42,049)
119
1,206,700
1,210,386
7,650
1,218,036
1,206,700
891,406
73,373
50,170
48,430
105,763
47,641
71,611
36,624
18,409
1,343,427
-
891,406
73,373
50,170
48,430
105,763
47,641
71,611
36,624
18,409
1,343,427
988,869
89,723
49,140
53,890
110,795
47,499
35,159
1,337,823
52,000
46,466
18,409
38,205
20,065
8,891
6,501
5,900
4,964
4,703
1,868
2,945
890
74
-
52,000
46,466
18,409
38,205
20,065
8,891
6,501
5,900
4,964
4,703
1,868
2,945
890
74
109,747
41,234
45,164
26,220
9,397
2,174
10,504
5,744
5,700
11,404
4,389
1,700
1,517
557
850
103
211,881
-
211,881
313,656
4
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF ACTIVITIES
YEAR ENDED APRIL 30, 2012
(WITH SUMMARIZED INFORMATION FOR THE YEAR ENDED APRIL 30, 2011)
(CONTINUED)
2012
TEMPORARILY
UNRESTRICTED RESTRICTED
2011
TOTAL
ALL FUNDS
TOTAL
EXPENSES (CONTINUED)
Total Expenses
1,555,308
Increase (Decrease) in Net Assets
(344,922)
Net Assets - Beginning of Year
NET ASSETS - END OF YEAR
See accompanying Notes to Financial Statements.
7,650
2,459,557
$
2,114,635
5
1,555,308
(337,272)
1,000
$
8,650
1,651,479
(444,779)
2,460,557
$
2,123,285
2,905,336
$
2,460,557
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF CASH FLOWS
YEARS ENDED APRIL 30, 2012 AND 2011
2012
CASH FLOWS FROM OPERATING ACTIVITIES
(Decrease) in Net Assets
Adjustments to Reconcile Decrease in Net Assets to
Net Cash (Used in) Operating Activities:
Depreciation
Net (Increase) Decrease In:
Accounts Receivable
Interest Receivable
Inventory
Prepaid Expenses
Net Increase (Decrease) In:
Accounts Payable
$
(337,272)
2011
$
(444,779)
4,703
4,389
9,576
(287)
(1,769)
(86)
27,503
1,913
(486)
(106,500)
183,892
(431,635)
(227,568)
(2,064)
763,139
(2,509)
270,137
761,075
267,628
NET INCREASE IN CASH
329,440
40,060
Cash - Beginning
131,681
91,621
Net Cash (Used in) Operating Activities
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of Equipment
Sale of Investment Securities (Net)
Net Cash Provided by Investing Activities
CASH - ENDING
See accompanying Notes to Financial Statements.
$
6
461,121
$
131,681
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2012 AND 2011
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
The United States Academic Decathlon Association (Association) is a nonprofit corporation that
conducts nationwide scholastic competitions for high school students which are designed to
promote and reward academic achievement. Approximately 90% of total revenue comes from
test material sales and competition fees.
Financial Statement Presentation
The Organization is required to report information regarding its financial position and activities
according to three classes of net assets: unrestricted net assets, temporarily restricted net
assets, and permanently restricted net assets.
Donations
Donations with no restrictions are recorded as unrestricted donations or temporarily restricted if
time delayed. Donations with donor restrictions are considered to be temporarily restricted.
Contributed Services and Other Assets
Contributed services, including promises to contribute services, are recognized as revenue if the
services received create or enhance nonfinancial assets, require specialized skills provided by
individuals possessing those skills, and typically need to be purchased if not provided by
donation. Contributed services are recorded at their fair market value.
Contributions of other assets, including promises to contribute such assets as prizes,
equipment, test grading equipment, and supplies, are valued at their estimated fair market value
and recognized as revenue when received and expensed, or depreciated, as the benefits
provided are utilized.
Income Tax
The Association is exempt from federal income taxes under Internal Revenue Code Section
501(c)(3) and California franchise taxes under related California code sections and, therefore,
makes no provision for federal and state income taxes. The Association is not a private
foundation and also had no unrelated business income for the years ended April 30, 2012 and
2011.
Investments
Investments in marketable securities with readily determinable fair values and all investments in
debt securities are reported at their fair values in the statement of financial position. Realized
and unrealized gains and losses are included in the change in net assets. Investment income
and gains restricted by a donor are reported as increases in unrestricted net assets if the
restrictions are met (either by passage of time or by use) in the reporting period in which the
income and gains are recognized.
7
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2012 AND 2011
NOTE 1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Advertising
The Association expenses advertising costs as they are incurred.
Cash Equivalents
Cash equivalents consist of short-term, highly liquid investments which are readily convertible
into cash within ninety (90) days of purchase.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates and
assumptions that affect the reported amount of assets, liabilities, additions to net assets, and
deductions from net assets. Actual results could differ from those estimates.
Inventory
Inventory consisting of study materials, merchandise, and supplies are carried at the lower of
cost or market utilizing the first-in, first-out method.
Depreciation
Purchased property and equipment are recorded at cost. Contributed property and equipment
are recorded at estimated fair market value at the date of the gift. Equipment is being
depreciated over an estimated useful life of five years using the straight-line method of
depreciation.
Accounts Receivable
Trade accounts receivable are recorded net of an allowance for expected losses.
allowance is estimated from historical performance and projections of trends.
The
Grant Revenue
Revenue from grants is recognized when the requirements of the grants are completed. In most
cases the grants are for expenses incurred in the accomplishment of goals stated in the grants.
Thus, revenue is recognized when the expense is incurred.
Functional Allocation of Expenses
The costs of providing the various programs and activities have been summarized on a
functional basis in the statement of activities. Accordingly, certain costs have been allocated
among the programs and supporting services benefited.
8
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2012 AND 2011
NOTE 2
RECLASSIFICATIONS
Reclassifications of certain April 30, 2011, account balances have been made to conform to the
current year presentation.
NOTE 3
INVESTMENTS
SFAS No. 157, Fair Value Measurements, established a fair value hierarchy that prioritizes the
inputs to valuation techniques used to measure fair value. This hierarchy consists of three
broad levels: Level 1 inputs consist of unadjusted quoted prices in active markets for identical
assets and have the highest priority, and Level 3 inputs have the lowest priority. The Plan uses
appropriate valuation techniques based on the available inputs to measure the fair value of its
investments. When available, the Plan measures fair value using Level 1 inputs because they
generally provide the most reliable evidence of fair value. No Level 2 inputs were available to
the Plan; the Level 3 inputs were only used when Level 1 or Level 2 inputs were not available.
Level 1 Fair Value Measurements – The fair value of mutual funds is based on quoted net asset
values of the shares held by the Plan at year-end. The fair values of the following investments
are based on quoted market prices.
Fair Value Level 1
April 30,
2012
2011
$ 474,102
$ 471,018
199,773
1,154,857
2,011,432
102,573
3,459
10,307
$ 1,832,191
$ 2,595,330
Asset
Cash and Equivalents
Corporate Obligations
US Government Issues
Municipal Issues
Accrued Income
The following schedule summarizes the unrestricted investment return in the Statement of
Activities:
April 30,
2012
2011
$ 2,595,330
$ 2,865,468
37,565
58,428
(31,211)
(24,347)
10,299
(13,416)
(6,847)
(4,286)
(2,945)
(1,517)
(770,000)
(285,000)
$ 1,832,191
$ 2,595,330
Beginning Balance
Interest and Dividend Income
Realized (Losses)
Unrealized Gains (Losses)
Accrued (Loss)
Investment Expenses
Transfers (Out)
Ending Balance
9
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2012 AND 2011
NOTE 4
PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
April 30,
April 30,
2011
Furniture and Equipment
Less: Accumulated Depreciation
$
Increase
41,763
33,129
8,634
$
$
$
Decrease
2,064
4,703
(2,639)
$
2012
-
$
$
$
43,827
37,832
5,995
Depreciation expense for the years ended April 30, 2012 and 2011 was $4,703 and $4,389,
respectively.
NOTE 5
PENSION PLAN
The Association participates in a defined contribution plan. Under the plan, the employee may
elect to contribute up to 10% of pre-tax salary subject to Internal Revenue Service limitations.
The Association will contribute up to $600 per month per eligible employee. Vesting provisions
are full and immediate. Association contributions were $14,400 and $14,400 for the years
ending April 30, 2012 and 2011, respectively.
NOTE 6
NET ASSETS
Following is a schedule of net assets as of April 31, 2012 and 2011:
Unrestricted
April 30,
2012
Unrestricted/Undesignated
Scholarships
2011
Unrestricted/Undesignated
Scholarships
2012
Temporarily
Restricted
$
-
Undesignated
$
-
$
4,000
2,650
1,000
1,000
8,650
$
-
$
1,000
2,650
1,000
1,000
5,650
2012
2011
2010
2009
2011
Board
Designated
2011
2010
2009
2008
$
2,025,885
$
32,250
22,750
19,250
14,500
88,750
$
-
$
22,750
19,250
14,500
12,000
68,500
Total
Net
Assets
Total
$
2,025,885
$
2,025,885
$
2,025,885
$
32,250
22,750
19,250
14,500
2,114,635
$
36,250
25,400
20,250
15,500
2,123,285
$
2,386,407
$
2,386,407
$
2,386,407
$
2,386,407
$
22,750
19,250
14,500
12,000
2,454,907
$
23,750
21,900
15,500
13,000
2,460,557
The Organization’s policy is to allow scholastic scholarship winners four years to claim their
scholarships. Many scholarships are not claimed within the four years. However, scholarships
that are unclaimed for the past four years are treated as board designated or board restricted for
scholarships. Payment for scholarships is not a legal binding arrangement, therefore, no liability
is established for unpaid scholarships.
10
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2012 AND 2011
NOTE 6
NET ASSETS (CONTINUED)
Temporarily restricted scholarships represent Friends of USAD donor contributions restricted for
scholarships and do not expire after four years.
NOTE 7
CONCENTRATIONS
The Association maintains its bank account deposits at the following locations:
April 30,
2012
Wells Fargo - Omaha
First National Bank - Omaha
Treynor State Bank - Council Bluffs
Great Western Bank - Council Bluffs
Council Bluffs Savings Bank
2011
Wells Fargo - Omaha
First National Bank - Omaha
Bank
FDIC
Balance
Insurance
UnCollateral
Secured
$
159,287
24,535
150,000
100,000
70,000
$
250,000
250,000
250,000
250,000
250,000
$
-
$
-
$
57,999
19,042
$
250,000
250,000
$
-
$
-
Custodial Credit Risk
The custodial credit risk for deposits is the risk that in the event of a bank failure, the
Organization’s deposits may not be recovered. The Organization’s deposits did not exceed
FDIC insurance of $250,000 or collateral as of April 30, 2012 and 2011.
Temporary Unlimited Coverage for Noninterest-bearing Transaction Accounts
From December 31, 2010 through December 31, 2012, all noninterest-bearing transaction
accounts are fully insured, regardless of the balance of the account and the ownership capacity
of the funds. This coverage is available to all depositors, including consumers, businesses, and
government entities. The unlimited coverage is separate from, and in addition to, the insurance
coverage provided for a depositor’s other accounts held at an FDIC-insured bank.
A noninterest–bearing transaction account is a deposit account where:
Interest is neither accrued nor paid;
Depositors are permitted to make an unlimited number of transfers and withdrawals; and
The bank does not reserve the right to require advance notice of an intended withdrawal.
Money Market Deposit Accounts (MMDAs) and Negotiable Order of Withdrawal (NOW)
accounts are not eligible for this temporary unlimited insurance coverage, regardless of the
interest rate, even if no interest is paid.
Revenue
There were no major single sources of Revenue in excess of 5% of total Revenue for 2012 and
2011.
NOTE 8
SUBSEQUENT EVENTS
Subsequent events have been evaluated through September 6, 2012, the date the financial
statements were available to be issued.
11