UNITED STATES
ACADEMIC DECATHLON ASSOCIATION
FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
APRIL 30, 2013 AND 2012
TABLE OF CONTENTS
PAGE
INTRODUCTORY SECTION
Principal Officials ...................................................................................................................................1
FINANCIAL SECTION
Independent Auditor’s Report ..........................................................................................................2 – 3
Financial Statements
Statements of Financial Position.........................................................................................................4
Statements of Activities.................................................................................................................5 – 6
Statements of Cash Flows ..................................................................................................................7
Notes to Financial Statements ....................................................................................................8 – 13
INTRODUCTORY SECTION
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
PRINCIPAL OFFICIALS
APRIL 30, 2013
POSITION
NAME
President
Joseph Jones
Vice President
Nadine Kujawa
Secretary
Frank Wurtzel
Chief Financial Officer
Brian Talbott
Immediate Past President
Robert Brezina
1
FINANCIAL SECTION
INDEPENDENT AUDITOR’S REPORT
Board of Directors
United States Academic Decathlon Association
Council Bluffs, Iowa
We have audited the accompanying financial statements of United States Academic Decathlon Association
(Association), a nonprofit corporation, which comprise the statement of financial position as of April 30, 2013, and the
related statements of activities, functional expenses, and cash flows for the year 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.
Auditor’s 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 Association’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 Association’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 United States Academic Decathlon Association as of April 30, 2013, and the changes in its net assets and its cash
flows for the year then ended in accordance with accounting principles generally accepted in the United States of
America.
2
Report on Summarized Comparative Information
We have previously audited United States Academic Decathlon Association’s financial statements, and our report
dated September 6, 2012, expressed an unmodified opinion on those audited financial statements. In our opinion, the
summarized comparative information presented herein as of and for the year ended April 30, 2012, is consistent, in all
material respects, with the audited financial statements from which it has been derived.
Mathias C. Justin, Ltd.
Certified Public Accountants
Pequot Lakes, Minnesota
August 7, 2013
3
Financial Statements
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF FINANCIAL POSITION
APRIL 30, 2013 AND 2012
2013
2012
ASSETS
Current Assets:
Cash
Accounts Receivable
Interest Receivable
Inventory
Prepaid Expenses
Investments in Securities
Total Current Assets
$
Fixed Assets:
Property and Equipment (Net of Accumulated Depreciation)
TOTAL ASSETS
720,688
44,444
736
2,529
3,495
1,384,815
2,156,707
$
461,121
8,371
287
2,923
2,525
1,832,191
2,307,418
4,315
5,995
$ 2,161,022
$ 2,313,413
$
$
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.
4
170,973
170,973
190,128
190,128
1,982,399
7,650
1,990,049
2,114,635
8,650
2,123,285
$ 2,161,022
$ 2,313,413
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF ACTIVITIES
(CONTINUED ON THE FOLLOWING PAGE)
YEAR ENDED APRIL 30, 2013 (with Comparative Totals for 2012)
2013
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
Staff Development
Total Administrative Expenses
See accompanying Notes to Financial Statements.
$
1,235,717
10,715
135
(5,261)
3,873
1,245,179
3,500
1,248,679
$
2,500
2,500
(3,500)
(1,000)
2012
TOTAL
ALL FUNDS
TOTAL
$
1,235,717
10,715
2,500
135
(5,261)
3,873
1,247,679
$
1,195,759
37,565
6,636
5,455
(27,760)
381
1,218,036
1,247,679
1,218,036
761,445
30,308
41,616
47,387
95,453
40,324
75,501
23,064
25,367
1,140,465
-
761,445
30,308
41,616
47,387
95,453
40,324
75,501
23,064
25,367
1,140,465
891,406
73,373
50,170
48,430
105,763
47,641
71,611
36,624
18,409
1,343,427
54,000
55,141
25,367
43,539
20,424
1,498
9,740
7,186
6,000
6,053
2,976
1,941
2,736
294
957
69
2,529
-
54,000
55,141
25,367
43,539
20,424
1,498
9,740
7,186
6,000
6,053
2,976
1,941
2,736
294
957
69
2,529
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
-
240,450
-
240,450
211,881
5
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF ACTIVITIES
(CONCLUDED)
YEAR ENDED APRIL 30, 2013 (with Comparative Totals for 2012)
2013
TEMPORARILY
UNRESTRICTED RESTRICTED
2012
TOTAL
ALL FUNDS
TOTAL
EXPENSES (CONTINUED)
Total Expenses
1,380,915
(Decrease) in Net Assets
(132,236)
Net Assets - Beginning of Year
NET ASSETS - END OF YEAR
See accompanying Notes to Financial Statements.
(1,000)
2,114,635
$
1,982,399
6
1,380,915
(133,236)
8,650
$
7,650
1,555,308
(337,272)
2,123,285
$
1,990,049
2,460,557
$
2,123,285
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
STATEMENTS OF CASH FLOWS
YEARS ENDED APRIL 30, 2013 AND 2012
2013
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
$
(133,236)
2012
$
(337,272)
2,976
4,703
(36,073)
(449)
394
(970)
9,576
(287)
(1,769)
(86)
(19,155)
(106,500)
(186,513)
(431,635)
(1,296)
447,376
(2,064)
763,139
446,080
761,075
NET INCREASE IN CASH
259,567
329,440
Cash - Beginning
461,121
131,681
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.
$
7
720,688
$
461,121
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
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.
Basis of Accounting
The accompanying financial statements have been prepared on the accrual basis of accounting
in accordance with accounting principles generally accepted in the United States of America
(U.S. GAAP).
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 files Internal Revenue
Service Form 990 annually with the federal government and returns for the past three and onehalf years are open to examination. The Association is not a private foundation and also had
no unrelated business income for the years ended April 30, 2013 and 2012.
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.
8
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
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.
Property and Equipment
Property and equipment are recorded at cost. Contributed property and equipment are
recorded at estimated fair market value at the date of the gift. The Association follows the
practice of capitalizing expenditures for property and equipment with a cost in excess of $500.
Property and equipment are depreciated using the MACRS straight-line method over their
estimated useful lives as follows:
Life - Years
Furniture & Equipment
5-7
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.
9
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
NOTE 2
RECLASSIFICATIONS
Reclassifications of certain April 30, 2012, 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,
2013
2012
$ 180,755
$ 474,102
499,968
199,773
702,733
1,154,857
1,359
3,459
$ 1,384,815
$ 1,832,191
Asset
Cash and Equivalents
Corporate Obligations
US Government Issues
Accrued Income
The following schedule summarizes the unrestricted investment return in the Statement of
Activities:
April 30,
2013
2012
$ 1,832,191
$ 2,595,330
12,721
37,565
(12,590)
(31,211)
7,329
10,299
(2,100)
(6,847)
(2,736)
(2,945)
(450,000)
(770,000)
$ 1,384,815
$ 1,832,191
Beginning Balance
Interest and Dividend Income
Realized (Losses)
Unrealized Gains (Losses)
Accrued (Loss)
Investment Expenses
Transfers (Out)
Ending Balance
10
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
NOTE 4
PROPERTY AND EQUIPMENT
Property and equipment consisted of the following:
April 30,
Property and Equipment Depreciated
Increase
2012
Furniture and Equipment
Less: Accumulated Depreciation
$
(Decrease)
43,827
37,832
5,995
$
April 30,
$
$
Decrease
1,296
2,976
(1,680)
$
2013
-
$
$
$
45,123
40,808
4,315
Depreciation expense for the years ended April 30, 2013 and 2012 was $2,976 and $4,703,
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, 2013 and 2012, respectively.
NOTE 6
NET ASSETS
Following is a schedule of net assets as of April 31, 2013 and 2012:
Unrestricted
April 30,
2013
Unrestricted/Undesignated
Scholarships
2012
Unrestricted/Undesignated
Scholarships
2013
Temporarily
Restricted
$
-
Undesignated
$
-
$
4,000
2,650
1,000
7,650
$
-
$
4,000
2,650
1,000
1,000
8,650
2013
2012
2011
2010
2012
Board
Designated
2012
2011
2010
2009
$
1,851,399
$
69,500
25,250
18,000
18,250
131,000
$
-
$
32,250
22,750
19,250
14,500
88,750
Total
Net
Assets
Total
$
1,851,399
$
1,851,399
$
1,851,399
$
69,500
25,250
18,000
18,250
1,982,399
$
69,500
29,250
20,650
19,250
1,990,049
$
2,025,885
$
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
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.
11
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
NOTE 6
NET ASSETS (CONTINUED)
Temporarily restricted scholarships represent Friends of USAD and other 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:
Bank
Balance
April 30,
2013
Wells Fargo - Omaha
First National Bank - Omaha
Treynor State Bank - Council Bluffs
Great Western Bank - Council Bluffs
Council Bluffs Savings Bank - Council Bluffs
Security National Bank - Council Bluffs
April 30,
2012
Wells Fargo - Omaha
First National Bank - Omaha
Treynor State Bank - Council Bluffs
Great Western Bank - Council Bluffs
Council Bluffs Savings Bank
FDIC
Insurance
UnSecured
Collateral
$
117,299
24,070
150,805
100,800
221,238
150,603
$
250,000
250,000
250,000
250,000
250,000
250,000
$
-
$
-
$
159,287
24,535
150,000
100,000
70,000
$
250,000
250,000
250,000
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, 2013 and 2012.
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:
ƒ Interest is neither accrued nor paid;
ƒ Depositors are permitted to make an unlimited number of transfers and withdrawals; and
ƒ 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.
12
UNITED STATES ACADEMIC DECATHLON ASSOCIATION
NOTES TO FINANCIAL STATEMENTS
APRIL 30, 2013 AND 2012
NOTE 7
CONCENTRATIONS (CONTINUED)
On January 1, 2013, noninterest-bearing transaction accounts are no longer insured separately
from depositors’ other accounts at the same Insured Depository Institution (IDI). Instead,
noninterest-bearing transaction accounts are added to any of a depositor’s other accounts in the
applicable ownership category, and the aggregate balance insured up to at least the Standard
Maximum Deposit Insurance Amount (SMDIA) of $250,000, per depositor, at each separately
chartered Insured Depository Institution.
Revenue
There were no major single sources of Revenue in excess of 5% of total Revenue for 2013 and
2012.
NOTE 8
SUBSEQUENT EVENTS
Subsequent events have been evaluated through August 7, 2013, the date the financial
statements were available to be issued.
13