J O U R N A L O F A D O L E S C E N T H E A L T H C A R E 1 9 8 4 ; 5 : 3 1 1 - 3 1 2

AUDITORS REPORT: SOCIETY FOR ADOLESCENT MEDICINE

Editorial note: It is required by the Constitution of the Society for Adolescent Medicine that the outside audit be published in the Journal of Adolescent Health Care. (Original signed by A. O. Trumpler, C.P.A. is on file in the SAM office).

REVIEW REPORT: Prepared by A. O. Trumpler, C.P.A., 20601 Aetna Street, Woodland Hills, CA 91367.

"! have reviewed the accompanying balance sheet of the Society for Adolescent Medicine as of December 31, !982, and the related statement of Income for the year then ended, in accordance with standards es- tablished by the American Institute of Certified Pub- lic Accountants. All information included in these financial statements is the representation of the man- agement of Society for Adolescent Medicine."

"A review consists principally of inquiries of Soci- ety personnel and analytical procedures applied to financial data. It is substantially less in scope than an examination in accordance with generally accepted auditing standards, the objective of which is the ex- pression of an opinion regarding the financial state- ments taken as a whole. Accordingly, I do not ex- press such an opinion."

"Based on my review, I am not aware of any mate- rial modifications that should be made to the accom- panying financial statements in order for them to be in conformity with generally accepted accounting principles."

Society for Adolescent Medicine

Balance sheet--cash basis December 31, 1982

Assets Cash in checking account

United California Bank Cash in savings account

Merrill Lynch Ready Asset Trust Office equipment--orig, cost

Less: accumulated depreciation Total assets

Liabilities and general surplus Liabilities General surplus--Jan. 1, 1982

Net gain--1982 General surplt~s--Dec. 31, 1982

Total liabilities and general surplus

$ 512.40 23,626.33

$ 7,217.45 1,802.45 5,415.00

527,245.39 2,308.34

S 0.00

29,553.73

$29,553.73

$29,553.73

Society for Adolescent Medicine

hicome statement--cash basis for twelve months ended December 31, 1982

hlcome Membership Dues $38,474.59 Joint Task Force 395.55 Sale of Address Labels and Other 1,075.00 Interest on Savings Account 3,126.33

Sub Total $43,071.47 Working Funds Advance--JAHC $10,000.00

Less:/AHC editorial staff expense (8,729.92) 1,270.08

Fall Conference: Registrations $11,508.46 Grants in Aid 6,750.00

18,258.46 Less: Direct Conference Expense (15,018.60) 3,239.86

Total income

Expenses Salary business manager $18,750.00 Payroll taxes 101.99 Compensation insurance 76.13 Telephone 2,112.29 Computer services 468.69 Equipment depreciation 830.34 Equipment maintenance 781.62 Office supplies and expense 2,571.33 Postage 1,510.41 Certificate printing 277.00 Accounting services 700.00 JAHC subscriptions 13,125.50 Executive council travel expenses 3,359.82 Committee expenses 200.00 Pediatric task force 456.75 Spring council meeting 151,20

Total expenses

Net income gain

$47,581.4I

$45,273.07

$ 2,308.34

Notes to Financial Statements 1. Summary of significant accounting policies

a. Cash basis method of accounting--The Soci- ety has adopted the cash basis method of ac- counting. This means that Income is based on actual receipt of funds and expenses reflect ac- tual payment. This is a generally appropriate method for this type of organization.

b. Office Equipment--The Society owns some of- fice equipment located in their California Of- rice. The Equipment is being depreciated over periods of 6 to 10 years.

c. Income Taxes--The Society is an Exempt Non- profit Corporation. No income taxes are incur- red.

2. Receipt of Income a. Membership Dues are billed early in December

for the subsequent year starting January 1. Ap- proximately $6,600 was recorded in December, 1982 which are being paid for 1983. Approx-

© Society for A d o l e s c e n t Medic ine , 1984 311 Publ i shed b y Elsevier Science Publ i sh ing Co. , Inc., 52 Vanderbi l t A v e . , N e w York, NY 10017 0197-0070/84/$3.00

312 AUDITOR'S REPORT JOURNAL OF ADOLESCENT HEALTH CARE Vol. 5, No. 4

imately $8,100 was recorded in December, 1981 which were being paid for 1982. It is be- lieved that the receipt of dues is being handled consistently enough that there is little like- lihood of a material distortion of Income.

b. Other Income is being recorded as received and there were no significant amounts belonging to 1982 outstanding and unrecorded.

3. Disbursements--Expenses were recorded only as paid. It is acceptable under cash basis method for expenses incurred in December to be recorded in

.

the following year, if paid when due. A review was made to determine if any significant amount of unpaid bills existed as of December 31, 1982, or if any significant amount of 1981 bills were paid during 1982. The amounts were nominal. Bills are being paid punctually and are adequately docu- mented.

Unpaid Dues--Records are being maintained on memberships that are both current and adequate so as to permit collection efforts or Council action for nonpayment.