meeting material here. - The Iowa State Bar Association

Transcription

The Iowa State Bar Association
Ways & Means Committee Meeting
October 22, 2013
Time 9:00 a.m.
Tentative Agenda
1. 1st Quarter Financial Statements
2. 2012-2013 Audit Report
3. 2012 990 Tax Returns
4. Investment Review (Craig Kleis with Bernstein will join us)
5. Impact of 2013 Dues Increase
To join the call please dial 877-381-1613 and when prompted, enter the conference code which
is 6056763789 followed by the # sign.
THE
IOWA STATE BAR ASSOCIATION
625 East Court Avenue
Des Moines, IA 50309-1904
(515)-243-3179
FAX (515)-243-2511
Harry Shipley
Assistant Executive Director
[email protected]
10/18/13
RE: The Iowa State Bar Association Financial Statements
Dear Governor:
Attached you will find the un-audited financial statements of The Iowa State Bar Association for
the three months ended September 30, 2013.
Even though we are showing a loss of $86,000 year to date this is significantly better than prior
years. Historically the ISBA is not out of the red until December when CLE and IowaDocs revenues are
substantially generated. The only substantial revenues for the first quarter are dues which are not
significant enough to cover all expenses.
Below are explanations for the various individual expense and revenue items with significant
variances from prior year or budget.
Revenue Items:
Overall revenues have increased by $109,000 or 27% from the prior year which is expected in a year with
a significant dues increase.
 Dues represent the majority of the aforementioned increase in revenues by $74,634 more revenue
than the prior year. As of September 30 we have approximately 800 members delinquent which
is higher than anticipated given the accelerated efforts of dues collection. A total of $1,268,408
in dues have been collected which is 3% under budget. Additional efforts will be made to collect
the balance of these dues, but it is likely that attrition will be greater than anticipated.
 Interest and investment income has significantly increased due to new cash reserve policy
allowing investment in stocks.
 Out of state document automation revenues are significantly less ($10,000) due to the
cancellation of Nebraska’s contract.
 CLE revenues are very consistent with prior year and are anticipated to remain flat. With
increased offerings and competition, the ISBA will continue to offer a variety of offerings to
maximize participation. Below are events with significant changes from 2012.
o
o
o
o
Annual Meeting has $2,000 less revenue for 2013-2014 due to fewer payments from 2012-2013
event.
Commercial and Bankruptcy receipts have increased by $6,000 due to no seminar being held in
2012-2013.
Social Security Seminar receipts have decreased by $16,000 due to event being hosted by another
state in 2013-14.
General Practice Golf outing receipts have increased by $10,000 but simply due to event timing.
Last year’s event was held in June rather than July. General Practice Solo Small Firm Conference
income $7,300 less due to seminar being held in 2011-2012, but not in 2012-2013
“Serving the legal profession and the public since 1874.”
o
o
Probate, Trust and Estate Planning registration fees have been reduced by $2,700 due to event
being postponed until Annual Meeting.
Summer Seminar Registration fees decreased by $2,000 due to fewer registrants.
Expense Items:
Expenses are up a more modest 5% or $31,000.
 Salary and other personnel costs are flat even with modest payroll increases due to reduced staff
size created by the retirement of long time employee. Senior staff is considering adding
employee in the communications department, but overall expenses will remain within budget.
 Depreciation is currently higher because journal entries were based on last year’s actual expense.
Actual depreciation for 2013-2014 is projected at $98,000 which is $10,000 less than budgeted.
Journal entry will be adjusted for future months to bring this in line with actual.
 State Fair expenses have decreased by $6,000 due to discontinuation of the program.
 Board of Governors expenses is currently higher by $8,000 due to timing of receipt of invoices.
 Postage has decreased by $2,400 due to timing of membership card mailings. Cards sent in
September of 2012 with 2013 cards anticipated to be mailed the first week of October.
 Professional expense fees have increased by $14,000 due to timing of receipts for annual audit
and quarterly fees to brokerage firm managing ISBA investments..
 The Special Project Allowance line has decreased by $10,000 due to expenses related to the 2012
Yes Campaign.
 Building maintenance expenses have decreased by $2,900 due to several one-time repairs in early
2012. Carpet cleaning, exterior weather proofing and fire sprinkler inspection and repair items
expensed in 2012-2013 that have not been required for 2013-2014.
 Telephone expenses have decreased by $3,400 due to new more efficient phone service.
 Document automation expenses for other states have increased by $11,000 in 2013-2014 due to
expansion of services. The ISBA will be servicing Arkansas for their program beginning in early
2014 and these are cost related to the startup of this program.
 Iowa Lawyer costs have increased by $3,100 due to the addition of online applications to better
serve our membership.
 Section and Committee expenses are very similar to prior years.
Please feel free to contact me if you have any questions.
Harry Shipley
The Iowa State Bar Association Financial Statements September 2013
Member Services
Continuing
Legal
Communications
Education
& Publications
Administration
Revenue
Membership Dues
Section Dues
$
$
$
$
$
$
$
$
$
$
$
15,100.00
2,565.00
34,208.32
500.00
$
$
$
4,257.55
3,000.00
13,516.64
$
416,454.51
130.00
3,350.00
82,744.67
$
$
$
$
$
82,000.00
56,000.00
178,000.00
365,000.00
23%
$
$
7,086.45
9,900.00
$
$
400,000.00
50,000.00
2%
20%
750.00
$
750.00
$
10,000.00
8%
86,974.67
$
$
$
$
$
$
$
$
$
15,100.00
2,565.00
34,208.32
500.00
2,553.40
4,857.55
3,000.00
13,516.64
523,569.03
$
20,400.00
$
45,000.00
$
25,000.00
$
3,500.00
$
15,000.00
$
54,000.00
$
12,000.00
$
50,000.00
$ 2,792,579.40
74%
6%
137%
14%
17%
9%
25%
27%
19%
$
7,086.45
9,900.00
2,553.40
2,553.40
$
16,986.45
$
600.00
$
600.00
$ 1,311,524.40
$ 115,155.00
Percentage of
budget
$
$
$
$
$
130.00
3,350.00
82,744.67
$
$
2013-14 Budget
317,649.00
25,658.00
$
$
Member Services
CLE Center Room Rental
Year to Date
$
$
Document Assembly Products
Iowa Docs®
Out of State Document Assembly
Total Revenues
Law & Civic
Education
317,649.00
25,658.00
Continuing Legal Education
Annual Meeting
Bridge the Gap
Tax School
Miscellaneous Seminar Income
Miscellaneous Revenues
Administrative Fees
Grants
Interest/Investment Income
Labels
Publication Sales
Registration & Fees
Rental income
Royalties
Technology
Services
24%
22%
0%
The Iowa State Bar Association Financial Statements September 2013
Member Services
Continuing
Legal
Education
Administration
Communications
& Publications
Technology
Services
Law & Civic
Education
Year to Date
2013-14 Budget
Percentage of
budget
Expenditures
Personnel Expenses
Salaries
Benefits
Payroll Taxes
Worker's Compensation
$116,747.36
$14,370.40
$8,579.07
$0.00
$35,377.99
$4,354.67
$2,599.72
$0.00
$28,302.39
$3,483.73
$2,079.77
$0.00
$28,302.39
$3,483.73
$2,079.77
$0.00
$17,688.99
$2,177.33
$1,299.86
$0.00
Total Personnel expenses
Overhead Expenses
Bank Fees
Depreciation
Dues and Subscriptions
General Insurance
Occupancy Expense
Office Supplies
Postage
Printing Maintenance & Supplies
Allocated Print Shop Expenses
Staff Allocation
Professional Services
Information Services
Telephone
$
$
$
$
$
$
$
$
$
$7,737.59
$22,734.38
1,971.83
10,191.08
$10,376.00
1,876.59
1,466.89
9,028.30
($1,129.24)
17,154.00
7,381.64
1,165.54
$2,343.75
$
$
$
$
$
$
$1,069.69
568.66
444.51
591.52
$1,875.00
$
$
$855.75
454.93
355.61
$
$
1,789.49
282.56
$1,171.88
$534.85
454.93
355.61
-
$
$
$
$855.75
284.33
222.26
-
$
$
$
36,513.67
1,789.49
282.56
$
$
1,118.43
176.60
2,236.86
353.20
Total Overhead Expenses
Program Expenses
Board of Governors
Bench Bar
General Administrative Expenses
Committee Expenses
Facilities & Meals
Iowa Lawyer/Postage and Production
Iowa Lawyer's Assistance Program
Legal Research
Legislative Services Program
Miscellaneous
Officer and ABA Delegate Travel
Orientation Meeting
Out of State Document Assembly
President-Elect Expenses
President's Admin. Expenses
Awards
Advertising/Membership Development
Reserve for unspent Section Funds
Retiree Health Insurance
Retiree Retirement Benefits
Section Expenses
Speaker Expenses
Special Project Allowance
Staff Development
Young Lawyers Division
ISBA Reserve 2%
Income Taxes
Total Program Expenses
Total Expenditures
Excess of Revenue over Expenses
$
929,000.00
$148,500.00
$
71,068.00
24%
19%
23%
$270,927.18
$ 1,148,568.00
24%
$
$
$
$
$
$
$
$
$
$
$
$
$
35%
28%
49%
39%
12%
$7,737.59
$30,000.00
$1,971.83
$10,191.08
$13,692.04
$3,639.44
$2,844.88
$9,619.82
($1,129.24)
$0.00
$53,667.67
$14,315.90
$2,260.45
$1,875.00
$
$
$
$226,419.12
$27,869.87
$16,638.19
$0.00
$148,811.46
$
11,512.57
$
21,287.66
$
-
$
(847.99)
$
$
-
$
$
$
$
$
$
9,498.00
15,426.00
47,247.31
4,069.88
11,511.94
-
$
$
426.94
4,204.07
8,153.64
$
$
-
$
$
$
$
$
1,547.00
4,500.00
234.94
$
$
7,724.00
$1,184.07
5,941.70
$
$
12,641.83
$
3,328.60
361,886.42
$
86,069.39
$
54,568.09
$
905.28
$
-
-
47,632.87
$
(45,079.47) $
87,610.70
$
(70,624.25) $
24,850.56
24%
48%
-1%
77%
32%
15%
29%
45,000.00
10,000.00
30,000.00
39,850.00
210,000.00
28,000.00
38,000.00
62,000.00
191,000.00
20,000.00
45,000.00
1,000.00
25%
$10,664.58
$7,509.95
$21,287.66
$8,153.64
$9,498.00
$15,426.00
$47,247.31
$4,069.88
$11,511.94
$0.00
$12,641.83
$426.94
$4,204.07
$0.00
$0.00
$0.00
$1,547.00
$4,500.00
$234.94
$3,328.60
$7,724.00
$1,184.07
$5,941.70
$0.00
$
$188,311.31
$
$
$
$
$
$
$
$
$
$
$
$
36%
19%
10%
29%
25%
25%
25%
20%
26%
0%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
5,000.00
15,000.00
24,000.00
5,000.00
(80,000.00)
8,000.00
18,000.00
115,155.00
20,000.00
30,000.00
15,000.00
45,000.00
7,000.00
947,005.00
9%
28%
0%
0%
0%
19%
25%
0%
17%
26%
8%
13%
0%
0%
20%
$
$ 2,602,573.00
$11,209.20
$
#DIV/0!
$507,000.00
11,209.20
$7,509.95
22,000.00
108,000.00
4,000.00
26,000.00
110,000.00
12,000.00
20,000.00
125,000.00
(50,000.00)
70,000.00
45,000.00
15,000.00
(24,250.56) $
608,049.95
(84,480.92) $
190,006.40
23%
The Iowa State Bar
Financial Statements
September 2013
Year to date
2013-2014
Budget
Expenditures
Personnell Expenses
Salaries
Benefits Administration
Employee Retirement Plan
Hospital Insurance
Payroll Taxes
Workers Compensation Insurance
$
$
$
$
$
929,000.00
3,500.00
85,000.00
60,000.00
71,068.00
$226,419.12
$698.95
$17,385.89
$9,785.03
$16,638.19
$1,148,568.00
Allocated Staff Time
Occupancy Expenses
$270,927.18
$
Maintenance
Property Taxes
Utilities
Mortgaeg Interest
Total Occupancy Costs
Debt Retirement
Depreciation
$25,000.00
$70,000.00
$15,000.00
$6,166.18
$110,000.00
$3,575.13
$3,950.73
$13,692.04
$108,000.00
$30,000.00
Administrative Expenses
Credit Card Transactional Fees
Dues and Subscriptions
General Insurance
Office Supplies
Postage
Printing, Print Maintenance & Supplies
Professional Services
Technology Services
Telephone
$
$
$
$
$
$
$
$
$
22,000.00
4,000.00
26,000.00
12,000.00
20,000.00
125,000.00
70,000.00
45,000.00
15,000.00
Miscellaneous
Miscellaneous
Print Shop Support (Cost allocation)
Retiree Health Insurance
Retiree Retirement Benefits
Staff Development
Income Taxes
$
$
$
$
$
$
20,000.00
(50,000.00)
8,000.00
18,000.00
15,000.00
7,000.00
$
$
$
$
$
5,000.00
$
24,000.00
$
10,000.00
$
45,000.00
$
39,850.00
$
30,000.00
$ 210,000.00
$
28,000.00
$
38,000.00
$
$
62,000.00
$ 191,000.00
$
45,000.00
$
1,000.00
$
5,000.00
$
15,000.00
$ (80,000.00)
$ 115,155.00
$
20,000.00
$
30,000.00
$
45,000.00
$ 2,602,573.00
$
$
Program Expenses
Advertising/Membership Development
Awards/Program Prizes
Bench Bar Conference
Board of Governors
Committee Expenses
General Administrative Expenses
Facilities & Meals
Iowa Lawyer
Iowa Lawyer's Assistance Program
ISBA Reserves
Legal Research
Legislative Services Program
Officer/ABA Travel
Orientation Meeting
President-Elect Expenses
President's Admin. Expenses
Reserve for unspent Section Funds
Section Expenses
Speaker Expense
Special Project Fund
Total Expenditures
-
For Management Purposes Only
$
$
$
$
$
$
$
$
$
$7,737.59
1,971.83
10,191.08
3,639.44
2,844.88
9,028.30
17,154.00
14,315.90
2,260.45
4,069.88
(1,129.24)
1,547.00
4,500.00
$1,184.07
-
$
11,209.20
$7,509.95
10,664.58
21,287.66
8,153.64
9,498.00
$
$
$
15,426.00
47,247.31
11,511.94
$
$
426.94
4,204.07
$
$
$
$
234.94
3,328.60
7,724.00
5,941.70
$571,994.97
$
$
10/18/2013
The Iowa State Bar
September 2012
2013-2014
Budget
Year to date
Prior Year
SECTIONS
Administrative Law
1,590.00
$
51.25
$
Agricultural Law
3,360.00
$
-
$
26.12
-
Alternative Dispute Resolution
1,845.00
$
133.24
$
170.27
Business Law
7,845.00
$
11.28
$
16.72
Commercial and Bankruptcy
4,830.00
$
17.12
$
4.48
Construction Law
1,335.00
Corporate Counsel
4,545.00
$
$
(40.00) $
54.90
Criminal Law
6,525.00
$
33.32
$
12.76
Ecommerce
1,005.00
$
-
$
-
Elder Law
1,095.00
$
162.59
Env. and Nat. Resources
1,725.00
$
12.75
$
-
Family and Juvinile Law
10,770.00
$
10.96
$
25.04
General Practice
4,515.00
$
57.43
$
-
Government Practice
2,760.00
$
-
$
10.04
Health Law
2,580.00
$
-
$
-
International Law
1,755.00
$
-
$
-
Intellectual Property
Labor and Employment Law
825.00
$
-
$
-
6,285.00
$
-
$
-
24.84
$
Litigation
11,175.00
$
Probate and Trust Law
14,355.00
$
Real Estate and Title Law
12,540.00
$
47.08
$
6,015.00
$
-
$
615.00
$
-
$
5,265.00
$
-
$
115,155.00
$
234.94
$
Taxation
Trade Regulation
Workers Compensation
Total Section Expenses
(286.92) $
4,456.73
322.30
3.48
5,102.84
COMMITTEES
Administrative
3,000.00
18.84
American Citizenship
1,000.00
0.00
Annual Meeting
500.00
4.44
Award of Merit
100.00
0.00
Bar Insurance Plan
200.00
0.00
1,000.00
59.09
250.00
12.64
Diversity and Inclsuveness
Federal Practice
Iowa Jury Instructions
4,000.00
0.00
Judicial Administration
500.00
$
71.88
Legal Forms
500.00
$
93.05
Military Affairs
500.00
$
5,000.00
$
1,393.44
3,832.00
Other task forces/committees
Professional Ethics
-
14,000.00
$
Professionalism
250.00
$
Public Relations
8,000.00
$
1,231.08
Rural Practice
500.00
$
793.49
Scope and Correlation of Work
300.00
$
-
Ways and Means
250.00
$
-
$
Total Committee Expenses
39,850.00
45,000.00
Reserve for unspent Section funds
(80,000.00)
Total Committee and Section
120,005.00
For Management Purposes Only
-
7,509.95
$
5,941.70
13,686.59
10/18/2013
The Iowa State Bar Seminar Expenses and Revenue
as of September 2013
Account Description
Agricultural
Law
Annual
Meeting
Commercial &
Criminal Law Ecommerce
Bankruptcy
Environmental
Law
Social
Security
Seminar
Ethics
Federal
Practice
Family Law
General
Practice Golf
Number of paid attendees
Registration Fees
$
130.00
$
6,110.00
$
460.00
$
-
$
3,200.00
$
-
$
-
$ 22,675.00
$
-
$ 10,255.00
$
130.00
$
6,110.00
$
460.00
$
-
$
3,200.00
$
-
$
-
$ 22,675.00
$
-
$ 10,255.00
$
731.26
Refunds
Total Receipts
$
-
Facilities & Meals
$
9,670.19
$
73.36
Mailing Fees
Printing & Materials
Publicity & Advertisement
Speaker Expenses
Administrative Costs
$
$
38.30
$
3,328.60
3,001.66
Staff Allocation
$
38.30
$
3,001.66
$
731.26
$
-
$
-
$
-
$
-
$
-
$
3,328.60
$
-
$
9,743.55
Total Expenses
$
38.30
$
3,001.66
$
731.26
$
-
$
-
$
-
$
-
$
-
$
3,328.60
$
-
$
9,743.55
Net Revenue/Loss
$
(2,871.66) $
5,378.74
$
460.00
$
-
$
$
-
$
-
$ 19,346.40
$
-
$
511.45
(38.30) $
3,200.00
Account Description
General
Practice Solo
& Small Firm
Government
Practice
$
-
$
-
$
2,470.00
$
9,314.95
$
189.36
$
$
-
$
-
$
2,470.00
$
9,314.95
$
189.36
$
Labor &
Employment
Seminar
Spring Tax
Basic Skills
Summer
Seminar
Nuts and
Bolts
Trade
Regulation
Bridge the Gap
3,350.00
$
8,180.00
$
-
$
4,870.00
$
2,955.00
3,350.00
$
8,180.00
$
-
$
4,870.00
$
2,955.00
$
4,275.36
Tax School
Registration Fees
Refunds
Total Receipts
$
Facilities & Meals
5,806.16
Mailing Fees
$
64.96
$
453.20
$
2,420.12
$
810.01
Speaker Expenses
Staff Allocation
$
-
$
-
$
-
$
2,485.08
$
-
$
-
$
-
$
5,806.16
$
5,538.57
$
-
Total Expenses
$
-
$
-
$
-
$
2,485.08
$
-
$
-
$
-
$
5,806.16
$
5,538.57
$
-
Net Revenue/Loss
$
-
$
-
$
$
6,829.87
$
189.36
$
2,470.00
3,350.00
$
8,180.00
$
(5,806.16) $
(668.57) $
2,955.00
Account Description
CLE Season
Pass
On-Line CLE
$
2,750.00
$
1,536.40
$
1,230.00
$
4,825.00
$
-
$
1,723.96
$
2,750.00
$
1,536.40
$
1,230.00
$
4,825.00
$
-
$
1,723.96
$
86,224.67
$
804.69
$
21,287.66
Telephone CLE
Webinars
Bench Bar
Misc
Total All CLE
Events
Registration Fees
Refunds
Total Receipts
Facilities & Meals
Mailing Fees
$
-
$
591.52
$
Speaker Expenses
$
3,328.60
$
11,512.57
$
(531.05)
$
5,773.53
-
$
-
Staff Allocation
$
-
$
Total Expenses
$
Net Revenue/Loss
$
2,750.00
$
$
1,536.40
$
(531.05)
$
(531.05) $
$
1,761.05
$
4,825.00
-
$
-
$
6,578.22
$
36,720.35
$
-
$
6,578.22
$
36,720.35
$
-
$
(4,854.26) $
49,504.32
FINANCIAL STATEMENTS AND
INDEPENDENT AUDITOR’S REPORT
JUNE 30, 2013 AND 2012
DRAFT
CONTENTS
PAGE
Independent Auditor's Report
1
Statements of Financial Position
2
Statements of Activities and Changes in Net Assets
3
Statements of Cash Flows
4
Notes to Financial Statements
5
DRAFT
Partners
Michael E. Brinker, CPA
David A. Farnsworth, CPA
David W. Hurst, CPA
Kathleen A. Koenig, CPA
Robert R. McGowen, CPA
Michael W. McNichols, CPA
Brian K. Newton, CPA
Thomas J. Pflanz, CPA, CFP®
John A. Schmidt, CPA
Daniel A. Schwarz, CPA/ABV
S. James Smith, CPA
Joni M. Tonnemacher, CPA, MAFF
INDEPENDENT AUDITOR'S REPORT
To the Board of Directors
Iowa State Bar Association
We have audited the accompanying financial statements of the Iowa State Bar Association (a nonprofit
organization) which comprise the statements of financial position as of June 30, 2013 and 2012, and the
related statements of activities and changes in net assets 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.
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 audits 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 from the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our qualified audit opinion.
www.mhcscpa.com
1601 West Lakes Parkway, Suite 300
West Des Moines, Iowa 50266
515-288-3279  Fax: 515-280-1490
Members of CPAmerica International
and the American Institute of Certified Public Accountants
Founded in 1946
DRAFT
106 E. Jefferson Street, P.O. Box 312
Winterset, Iowa 50273-0312
515-462-1882  Fax: 515-462-1577
Basis for Qualified Opinion
As more fully described in Note I to the financial statements, the Association’s financial statements do
not include the accounts of East Coast Investors, LLC. The Association has determined that East Coast
Investors is a subsidiary in which the Association holds a controlling financial interest. In our opinion,
the Association’s financial statements should include the accounts of East Coast Investors, LLC to
conform with accounting principles generally accepted in the United States of America. The effects of
this departure from generally accepted accounting principles on the financial position, results of
activities, and cash flows of the Association as of and for the years ended June 30, 2013 and 2012 would
be to increase reported assets by $55,000 and $68,000, decrease reported liabilities by $511,000 and
$456,000 and increase reported net assets by $566,000 and $524,000, respectively, based upon the
unaudited financial statements of the unconsolidated entity. Due to the effects of non-controlling
interests, there would be no significant impact on the reported net increase in net assets for fiscal years
2013 and 2012.
Qualified Opinion
In our opinion, except for the effects of the matter described in the Basis for Qualified Opinion
paragraph, the financial statements referred to above present fairly, in all material respects, the financial
position of Iowa State Bar Association as of June 30, 2013 and 2012, 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.
West Des Moines, Iowa
June 30, 2013
DRAFT
STATEMENTS OF FINANCIAL POSITION
JUNE 30, 2013 AND 2012
ASSETS
Cash and cash equivalents
Investments
Accounts receivable
Contributions receivable, net of allowance
Grants receivable
Prepaid expenses
Other asset - awarded state historical tax credits
Property and equipment, net of accumulated depreciation
TOTAL ASSETS
2013
$ 1,679,441
827,918
15,927
58,700
56,371
2,975,152
2012
$ 1,212,630
100,451
92,456
10,000
127,800
19,565
728,214
3,044,659
$ 5,613,509
$ 5,335,775
$
$
LIABILITIES AND NET ASSETS
LIABILITIES
Accounts payable
Accrued expenses
Unearned dues
Unearned revenue
Notes payable
Deferred compensation
Total liabilities
NET ASSETS - Unrestricted
TOTAL LIABILITIES AND NET ASSETS
197,896
76,704
866,625
6,590
511,425
128,498
1,787,738
170,679
72,574
623,605
2,658
511,425
100,451
1,481,392
3,825,771
3,854,383
$ 5,613,509
$ 5,335,775
The accompanying notes are an integral part of these financial statements.
2
DRAFT
STATEMENTS OF ACTIVITIES AND CHANGES IN NET ASSETS
YEARS ENDED JUNE 30, 2013 AND 2012
2013
2012
$ 1,240,132
514,383
14,760
525,683
70,397
42,886
17,265
75,582
76,965
42,936
2,620,989
$ 1,235,129
515,443
13,080
587,976
61,916
43,078
15,818
99,550
165,814
19,894
34,830
2,792,528
EXPENSES
Program services:
Membership service
Committees
Continuing education
Bridge the Gap
Sections
Mock trial
Total program services expenses
235,814
349,435
265,679
37,230
22,942
91,128
1,002,228
247,245
286,291
280,834
24,314
24,656
81,301
944,641
General and administrative:
Administrative
Provision for income taxes
Total general and administrative
1,617,334
5,804
1,623,138
1,706,919
10,269
1,717,188
2,625,366
2,661,829
REVENUES
Dues
Sales of manuals, documents and computer software
Rental income
Continuing education
Bridge the Gap
Mock trial
Lawyer referral service
Annual meeting
Grant income
"Raising the Bar" contributions
Other income
TOTAL REVENUES
TOTAL EXPENSES
INCREASE (DECREASE) IN NET ASSETS
BEFORE INVESTMENT INCOME (LOSS)
(4,377)
130,699
INVESTMENT INCOME (LOSS)
(24,235)
3,812
INCREASE (DECREASE) IN UNRESTRICTED NET ASSETS
(28,612)
134,511
NET ASSETS, beginning of year
NET ASSETS, end of year
3,854,383
3,719,872
$ 3,825,771
$ 3,854,383
3
DRAFT
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2013 AND 2012
2013
CASH FLOWS FROM OPERATING ACTIVITIES
Increase (decrease) in net assets
Adjustments to reconcile increase (decrease) in net assets
to net cash provided by operating activities:
Depreciation
Net realized and unrealized losses on investments
Changes in:
Accounts and interest receivable
Contributions receivable
Grants receivable
Prepaid expenses
Other asset - awarded state historical tax credits
Accounts payable and accrued expenses
Unearned dues and revenues
Net cash provided by operating activities
$
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments
Proceeds from sale of investments
Purchase of property and equipment
Net cash used by investing activities
2012
(28,612)
$
106,174
29,406
113,257
-
76,529
10,000
69,100
(36,806)
728,214
31,347
246,952
1,232,304
(48,479)
73,917
(42,794)
(2,450)
36,975
21,763
286,700
(734,652)
5,826
(36,667)
(765,493)
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on notes payable
134,511
-
-
(10,000)
Net increase in cash and cash equivalents
466,811
276,700
Cash and cash equivalents, beginning of year
1,212,630
935,930
Cash and cash equivalents, end of year
$ 1,679,441
$ 1,212,630
Supplemental Disclosures of Cash Flow Information
Cash paid for income taxes
$
$
6,916
4
17,743
DRAFT
NOTES TO FINANCIAL STATEMENTS
NOTE A - SIGNIFICANT ACCOUNTING POLICIES
ORGANIZATION - Iowa State Bar Association (the Association) is a nonprofit corporation organized
to advance the science of jurisprudence, to promote reform in the law, to facilitate the administration of
justice, to elevate the standards of integrity, honor and courtesy in the legal profession, to cherish a
spirit of brotherhood among members thereof and to provide ways and means for accomplishing and
carrying into effect the foregoing objects and purposes.
FINANCIAL STATEMENT PRESENTATION - The Association reports its financial position and
activities through three classes of net assets: unrestricted net assets, temporarily restricted net assets,
and permanently restricted net assets. The Association has no temporarily or permanently restricted net
assets.
CONTRIBUTIONS - The Association records grants and contributions received as unrestricted,
temporarily restricted, or permanently restricted support depending on the existence and/or nature of
any donor restrictions. Time-restricted and purpose-restricted contributions are recorded as
temporarily restricted net assets, and are then released to unrestricted net assets upon expiration of
the time restriction or fulfillment of the purpose. Contributions that are restricted by the donor are
reported as increases in unrestricted net assets if the restrictions expire in the fiscal year in which the
contributions are recognized.
All contributions are considered to be available for the general programs of the Association unless
specifically restricted by the donor. Contributions are recorded as revenue at the earlier of the date
of receipt or the date an unconditional promise is given by a donor.
CASH AND CASH EQUIVALENTS - For purposes of the statement of cash flows, cash equivalents
include bank deposits and all highly liquid debt instruments with original maturities of three months or
less.
INVESTMENTS - Investments in marketable equity securities with readily determinable fair values and
all investments in debt securities are reported at their fair values in the statement of financial position.
Changes in unrealized gains and losses are presented as a component of investment income in the
statement of activities and changes in net assets. The cost of investments sold is determined by the
specific identification method.
The fair values of investments in marketable securities are determined using Level 1 inputs, as
defined by U.S. generally accepted accounting principles. Level 1 inputs are unadjusted quoted
prices for identical assets or liabilities in active markets that the Association has the ability to access.
The Association invests in various investment securities. Investment securities are exposed to
various risks such as interest rate, market, and credit risks. Due to the level of risk associated with
certain investment securities, it is at least reasonably possible that changes in the values of
investment securities will occur in the near term and that such change could materially affect the
Association’s investment balances.
ACCOUNTS RECEIVABLE - Accounts receivable consists primarily of management fees from the
Iowa State Bar Foundation and receivables from licensing fees of legal document software.
5
DRAFT
NOTE A - SIGNIFICANT ACCOUNTING POLICIES - continued
GRANTS RECEIVABLE - The Association is awarded grants from the Iowa State Bar Foundation and
recognizes the asset and related revenue when the grant is awarded. Grants receivable at June 30, 2013
and 2012 consist of various one-year grants from the Iowa State Bar Foundation.
PROPERTY AND EQUIPMENT - Equipment is recorded at cost. Depreciation expense is computed
on the straight-line method over the estimated useful lives of the respective assets. Estimated useful
lives range from five to seven years for office furniture and equipment and forty years for the building.
INCOME TAXES - The Association is exempt from federal income taxes under Section 501(c)(6) of
the Internal Revenue Code. The Association is subject to income tax on unrelated business income.
Management is unaware of any uncertain income tax positions at June 30, 2013 and 2012. Interest and
penalties associated with income tax matters would be presented as components of income tax expense.
There were no interest or penalty charges during 2013 and 2012. The Association’s prior three years’
income tax returns remain subject to examination by the Internal Revenue Service.
During fiscal year 2010, the Association was awarded state historical preservation tax credits totaling
$728,214 relating to the rehabilitation of its headquarters. Management received the proceeds arising
from the credits during fiscal year 2013.
REVENUE RECOGNITION - Membership dues are recorded upon receipt as unearned dues and
recognized ratably as revenue over the applicable membership period of July 1 to June 30. Unearned
dues represent membership dues received that are for the subsequent fiscal year. Unearned revenue
consists of amounts received for events to be held in the subsequent fiscal year end.
RECLASSIFICATIONS - Certain prior period year amounts have been reclassified to conform to the
current year presentation. Such reclassifications have had no effect on total net assets or change in net
assets previously reported.
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.
ADVERTISING - Advertising costs are expensed as incurred. There were no significant advertising
expenses during 2013 and 2012.
FUNCTIONAL ALLOCATION OF EXPENSES - The costs of providing various programs and
other 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.
SUBSEQUENT EVENTS – Management has evaluated subsequent events through June 30, 2013,
the date the financial statements were available to be issued.
6
DRAFT
NOTE B - INVESTMENTS
Investments consist of the following at June 30, 2013:
Money market funds
Common stocks
Mutual funds:
Equity
Fixed income
Private mutual funds
Total investments
Cost
5,147
177,362
$
200,090
232,628
218,465
833,692
$
Unrealized
Gains
(Losses)
$
(3,340)
15,303
(7,574)
(10,163)
(5,774)
$
$
Fair Value
5,147
174,022
215,393
225,054
208,302
827,918
$
Investments consist of the following at June 30, 2012:
$
58
Unrealized
Gains
(Losses)
$
-
$
64,478
24,570
89,106
10,630
715
11,345
Cost
Money market funds
Mutual funds:
Equity
Fixed income
Total investments
$
Fair Value
$
58
75,108
25,285
100,451
$
Investment income (loss) consists of the following for the year ended June 30,:
Interest and dividends
Realized and unrealized gains (losses) on investments
Net investment income (loss)
$
$
2013
5,171
(29,406)
(24,235)
$
$
2012
3,812
3,812
NOTE C - PROPERTY AND EQUIPMENT
Property and equipment consist of the following:
Land
Building
Office furniture and equipment
$
Less accumulated depreciation
Property and equipment, net
$
2013
768,960
2,505,009
461,307
3,735,276
760,124
2,975,152
$
$
2012
768,960
2,505,009
424,640
3,698,609
653,950
3,044,659
Depreciation expense totaled $106,174 and $113,258 for fiscal years 2013 and 2012, respectively.
7
DRAFT
NOTE D - LEASE OBLIGATIONS
In order to facilitate the sale of federal historic tax credits generated through the rehabilitation of its
office building, the Association agreed to lease the building to East Coast Investors, LLC (ECI) and
to then lease office space in the building from ECI. The lease agreements expire during fiscal year
2014. ECI is owned 99.99% by Principal Financial Services, Inc. and .01% by the Association. The
Association, however, controls 100% of the voting interests of ECI. Estimated future lease payments
and lease revenues under the current agreements are $166,200 during fiscal year 2014.
Net rent expense totaled $-0- during fiscal year 2013 and 2012. At June 30, 2013 and 2012, rents
receivable from ECI totaled $-0- and $55,400, respectively.
NOTE E - NOTES PAYABLE
The Association has a $511,425 note payable to ECI. The unsecured note, with a fixed interest rate of
3.09%, requires monthly interest-only payments, with the remaining unpaid principal and interest due in
December 2014.
Interest expense totaled $15,803 and $16,333 for fiscal years 2013 and 2012, respectively.
NOTE F - CONTRACT COMMITMENT
The Association entered into a multi-year contract for access to online legal research that is available to
members. The annual fee is based on the number of members and is adjusted annually each
September 1 (currently $5,142 monthly). The contract expires on August 31, 2015. Estimated future
payments under the contract are as follows:
FISCAL YEAR
2014
2015
2016
Total
$
$
61,704
61,704
10,284
133,692
Expenses relating to the agreement totaled $61,704 for the years ended June 30, 2013 and 2012.
NOTE G - EMPLOYEE BENEFITS
The Association has a defined contribution 401(k) employee retirement plan covering substantially all
employees. Under the plan, an employee may make voluntary salary reduction contributions to the plan.
The Association contributes 5% of eligible employee compensation and matches a portion of the
employee’s contributions. Employer contributions totaled $66,290 and $66,636 for the years ended
June 30, 2013 and 2012, respectively.
The Association also provides a non-qualified funded deferred compensation plan for certain
employees. Contributions are determined by the Board of Directors. Employer contributions to the
plan totaled $12,477 and $11,951 during fiscal years 2013 and 2012, respectively.
The Association has a commitment to pay $1,500 monthly for life to the surviving spouse of a former
executive director.
8
DRAFT
NOTE H - RELATED PARTY TRANSACTIONS
The Iowa State Bar Foundation is a not-for-profit corporation that shares staff and management with the
Association. The Foundation, on occasion, also provides grants for special projects undertaken by the
Association. Revenues from Foundation grants for the years ended June 30, 2013 and 2012 totaled
$73,700 and $147,800, respectively.
Accounts payable at June 30, 2013 and 2012 includes $2,925 and $14,015, respectively, payable to the
Foundation for donations collected on behalf of the Foundation by the Association. Accounts payable
at June 30, 2013 also includes $35,000 payable to East Coast Investors, LLC (see Note I).
The Association provides staff and management services to the Foundation for a monthly fee of $1,700.
Other income for each of the years ended June 30, 2013 and 2012 included $20,400 arising from this
agreement. Accounts receivable includes $6,019 and $13,447 at June 30, 2013 and 2012, respectively,
from the Foundation.
An employee of the Association is also a partner in a law firm that provides legislative services to the
Association. Lobbying expenses provided by the law firm totaled $161,000 and $148,000 during
fiscal years 2013 and 2012, respectively.
NOTE I - CONSOLIDATION OF SUBSIDIARY
East Coast Investors, LLC leases an office building from the Association and then leases it back to the
Association. Management has elected not to consolidate East Coast Investors, LLC, in which the
Association has determined it holds a controlling financial interest, in these financial statements. This
is a departure from U.S. generally accepted accounting principles. The effects of this departure on the
2013 and 2012 financial position of the Association would be to increase reported assets by
approximately $55,000 and $68,000, decrease reported liabilities by $511,000 and $456,000 and
increase reported net assets by $566,000 and $524,000, respectively, based upon the unaudited financial
statements of the unconsolidated entity.
Due to the effects of non-controlling interests, there would be no significant impact on the reported net
increase in net assets for fiscal years 2013 and 2012.
Following is a summary of unaudited financial information of East Coast Investors, LLC for the years
ended June 30, 2013 and 2012:
2013
Assets:
Cash
Other receivables
Note receivable
$
$
Liabilities:
Rent payable
Deferred rental income
Equity
$
$
9
19,055
35,701
511,425
566,181
566,181
566,181
2012
$
$
$
$
94,312
511,425
605,737
55,400
26,283
524,054
605,737
DRAFT
NOTE I - CONSOLIDATION OF SUBSIDIARY - Continued
2013
Revenues:
Rental income
Interest income
$
Expenses:
Rental expense
Other
Net income
$
10
332,400
14,486
346,886
332,400
59
332,459
14,427
2012
$
$
332,400
17,120
349,520
332,400
10,587
342,987
6,533
DRAFT
2012 TAX RETURN FILING INSTRUCTIONS
IOWA FORM IA 1120
FOR THE YEAR ENDING
June 30, 2013
~~~~~~~~~~~~~~~~~
Prepared for
625 E. Court Avenue
Des Moines, IA 50309
Prepared by
McGowen, Hurst, Clark & Smith, P.C.
West Des Moines, IA 50266
To be signed and
dated by
Not applicable
Amount of tax
Total tax
Less: payments and credits
Plus: other amount
Plus: interest and penalties
Overpayment
Overpayment
Credited to your estimated tax
Other amount
Refunded to you
$
$
$
$
$
1,717.00
~~~~~~~~~~~~~
3,000.00
~~~~~~~~~~~~~
0.00
~~~~~~~~~~~~~
0.00
~~~~~~~~~~~~~
1,283.00
~~~~~~~~~~~~~
1,283.00
$ ~~~~~~~~~~~~~
0.00
$ ~~~~~~~~~~~~~
0.00
$ ~~~~~~~~~~~~~
Make check
payable to
Not applicable
Mail tax return
and check (if
applicable) to
This return has qualified for electronic filing. Please
review your return for completeness and accuracy. We will
then transmit your return electronically to the Iowa DOR.
Return must be
mailed on
or before
Not applicable
Special
Instructions
Do not mail the paper copy of the return to the Iowa DOR.
200084 05-01-12
2013 ESTIMATED TAX FILING INSTRUCTIONS
IOWA FORM IA 1120 ES
FOR THE YEAR ENDING
June 30, 2014
~~~~~~~~~~~~~~~~~~
Prepared for
Prepared by
Amount of tax
625 E. Court Avenue
Des Moines, IA 50309
McGowen, Hurst, Clark & Smith, P.C.
West Des Moines, IA 50266
Total Estimated Tax
Less credit from prior year
Less amount already paid on 2013 estimate
Balance due
$
$
$
$
1,720
~~~~~~~~~~~~~
1,283
~~~~~~~~~~~~~
~~~~~~~~~~~~~0
437
~~~~~~~~~~~~~
Payable in full or in installments as follows:
Installment
No. 1
No. 2
No. 3
No. 4
Amount
$
$
$
$
Not applicable
~~~~~~~~~~~~~
Not applicable
~~~~~~~~~~~~~
~~~~~~~~~~~~~7
430
~~~~~~~~~~~~~
Make check
payable to
Treasurer, State of Iowa
Mail voucher
and check (if
applicable) to
Corp. Estimate Processing
Iowa Dept. of Revenue
Post Office Box 10466
Special
Instructions
200021
05-01-12
Due Date
March 31, 2014
June 30, 2014
Iowa Department of Revenue
www.iowa.gov/tax
Corporation Estimated Income Worksheet
(Keep for your records)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
ORIGINAL
COMPUTATION
28,106.
Net income from federal return ~~~~~~~~~~~~~~~~~~~~~~~~~~~ 1. $
50% of federal tax refund ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 2. $
1,717.
Other additions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 3. $
29,823.
Net income after additions. Add lines 1 through 3. ~~~~~~~~~~~~~~~~~~~ 4. $
2,108.
50% of federal tax paid or accrued ~~~~~~~~~~~~~~~~~~~~~~~~~~ 5. $
Other reductions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 6. $
2,108.
Total reductions. Add lines 5 and 6. ~~~~~~~~~~~~~~~~~~~~~~~~~ 7. $
27,715.
Income before net operating loss. Subtract line 7 from line 4. ~~~~~~~~~~~~~~ 8. $
Nonbusiness income ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 9. $
27,715.
Income subject to apportionment. Subtract line 9 from line 8. ~~~~~~~~~~~~~~ 10. $
100.0000
Business Activity Ratio ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 11.
%
27,715.
Apportioned income. Multiply line 10 by line 11. ~~~~~~~~~~~~~~~~~~~~ 12. $
Nonbusiness income allocable to Iowa ~~~~~~~~~~~~~~~~~~~~~~~~ 13. $
27,715.
Income before net operating loss: Add lines 12 and 13. ~~~~~~~~~~~~~~~~~ 14. $
Net operating loss deduction ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 15. $
27,715.
Income subject to tax. Subtract line 15 from line 14. ~~~~~~~~~~~~~~~~~~ 16. $
1,717.
Computed tax ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 17. $
Estimated alternative minimum tax ~~~~~~~~~~~~~~~~~~~~~~~~~~ 18. $
1,717.
Total tax. Add lines 17 and 18. ~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 19. $
Total credits ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 20. $
TO
1,720.21. $
1,717.
Tax after credits. Subtract line 20 from line 19. ROUNDED
~~~~~~~~~~~~~~~~~~~~~
22.
Payments previously made for current period estimate tax ~~~~~~~~~~~~~~~~
Use these two lines
only if amending
23.
Unpaid balance. Subtract line 22 from line 21. ~~~~~~~~~~~~~~~~~~~~~
Computation of installment ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ 24.
(
) last day of the 4th month, enter 1/4 of line 21 ~~~~~~~~~
$
) last day of the 6th month, enter 1/3 of line 21 (23 if amending) ~~
$
if first installment (
(
) last day of the 9th month, enter 1/2 of line 21 (23 if amending) ~~
$
is to be filed on
(
) last day of the 12th month, enter all of line 21 (23 if amending) ••
$
Estimated Tax Payment Schedule
Tax Computation Schedule
(
then multiply line 16 by 6%.
1
$25,000 to $100,000 then multiply line 16 by 8%
2
under $25,000
Computed
Installment (line 24)
(b)
Date
(a)
Amount on line 21
and subtract $500
$100,000 to $250,000 then multiply line 16 by 10% and subtract $2,500
3
over $250,000
4
then multiply line 16 by 12% and subtract $7,500
)
10/31/13
12/31/13
03/31/14
06/30/14
Total
251421
12-14-12
AMENDED
COMPUTATION
ONLY
$
$
$
$
$
$
$
$
$
$
%
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Prior period
Overpayment
(c)
Amount to be paid
(column b less column c)
(d)
430.
430.
430.
430.
430.
430.
423.
0.
0.
7.
430.
1,720.
1,283.
437.
L cut here L
11111111111111111111111111111111111111111111111111111111111111111111
IA CORP 1120ES
Corporation Estimate Payment Voucher
240242033537030630146133 5
FOR CALENDAR YEAR
Corporation Name
OR FISCAL YEAR ENDING
JUNE 30, 2014
Federal TIN
42-0335370
Address (number and street, including apartment)
625 E. COURT AVENUE
City, State, ZIP
DES MOINES
IA
50309
Make check or money order payable to "Treasurer - State of Iowa"
When you pay by check, you authorize the Department of Revenue
to convert your check to a one-time electronic banking transaction.
CCH
Daytime Telephone Number
515-243-3179
INSTALLMENT
4
Due Date: Last day of the 12th month
of the calendar or fiscal year.
430.
PAYMENT AMOUNT $
Mail to:
Corporation Estimate Processing
PO Box 10466
45-004 (08/10/12)
251422
12-14-12
L cut here L
11111111111111111111111111111111111111111111111111111111111111111111
IA CORP 1120ES
240242033537030630146133 5
FOR CALENDAR YEAR
Corporation Name
JUNE 30, 2014
Federal TIN
42-0335370
625 E. COURT AVENUE
City, State, ZIP
DES MOINES
IA
50309
CCH
515-243-3179
INSTALLMENT
3
Due Date: Last day of the ninth month
PAYMENT AMOUNT $
Mail to:
PO Box 10466
45-004 (08/10/12)
7.
251423
12-14-12
L cut here L
11111111111111111111111111111111111111111111111111111111111111111111
IA CORP 1120ES
240242033537030630146133 5
FOR CALENDAR YEAR
Corporation Name
JUNE 30, 2014
Federal TIN
42-0335370
625 E. COURT AVENUE
City, State, ZIP
DES MOINES
IA
50309
CCH
515-243-3179
INSTALLMENT
2
Due Date: Last day of the sixth month
PAYMENT AMOUNT $
Mail to:
PO Box 10466
45-004 (08/10/12)
0.
251424
12-14-12
L cut here L
11111111111111111111111111111111111111111111111111111111111111111111
IA CORP 1120ES
240242033537030630146133 5
FOR CALENDAR YEAR
Corporation Name
JUNE 30, 2014
Federal TIN
42-0335370
625 E. COURT AVENUE
City, State, ZIP
DES MOINES
IA
50309
CCH
515-243-3179
INSTALLMENT
1
Due Date: Last day of the fourth month
PAYMENT AMOUNT $
Mail to:
PO Box 10466
45-004 (08/10/12)
0.
www.iowa.gov/tax
OFFICE USE ONLY
2012 IA 1120
Iowa Corporation Income Tax Return - Long Form
STEP 1
From 07 / 01 /12
Check the box if:
to
06 / 30 / 13
K
Postmark
K
Name/Address Change
Short Period
K
Corporation Name and Address
K
625 E. COURT AVENUE
DES MOINES
FEIN:
K
County No.:
K
42-0335370
IA 50309
77
STEP 3
Net Income
& Additions
to Income
1.
2.
3.
4.
STEP 4
5.
Reductions 6.
to Income
7.
8.
STEP 5
9.
Taxable
10.
Income
11.
12.
13.
14.
15.
16.
STEP 6
17.
Tax,
18.
Credits,
19.
and
20.
Payments 21.
22.
23.
STEP 7
24.
Balance
25.
Due
26.
27.
28.
STEP 8
29.
Over30.
Payment
31.
Final Return
K
K
K
511120
Is this a first or final return? If yes, check the appropriate box.
First Return
Name of contact person:
515-243-3179
Phone No.:
STEP 2 Filing Status
X 1 Separate Iowa/Separate Federal
Filing Status: K
Type of Return: K
1 Regular Corporation
Is this an inactive corporation? ~~~~~~~~~~~~~~
Was federal income or tax changed for any prior period(s)? ~~
Do you have property in Iowa? ••••••••••••••
K
Business Code:
K
K
2 Separate Iowa/Consolidated Federal
2 Cooperative
X No
Yes
X No Period(s)
Yes
X Yes
No
New Business
Successor
Entering Iowa
Reorganized
Merged
Dissolved
Withdrawn
Bankruptcy
Other
X
3 Consolidated Iowa/Consolidated Federal
3 UBIT
USE WHOLE DOLLARS
Net Income From Federal Return before Federal Net Operating Loss ~~~~~~~~~~~~~~~~~~
50% of Federal Tax Refund ~~~~~ X Accrual
Cash ~~~~~~~~~~~~~~~~~
Other Additions from Schedule A ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Net Income After Additions. Add lines 1 through 3 ••••••••••••••••••••••••••
2,108. K
50% of Federal Tax Paid or Accrued ~ X Accrual
Cash K 5
Other Reductions from Schedule A ~~~~~~~~~~~~~~~~ 6
K
Total Reductions. Add lines 5 and 6 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Net Income After Reductions. Subtract line 7 from line 4 •••••••••••••••••••••••
Nonbusiness Income from Schedule D, line 17 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Income Subject To Apportionment. Subtract line 9 from line 8 ~~~~~~~~~~~~~~~~~~~~~
Iowa Percentage from Schedule E. (See instructions) ~~~~~~~~~~~~~~~~~~~~~~~~~
Income Apportioned to Iowa. Multiply line 10 by line 11 ~~~~~~~~~~~~~~~~~~~~~~~~
Iowa Nonbusiness Income from Schedule D, line 8 ~~~~~~~~~~~~~~~~~~~~~~~~~~
Income Before Net Operating Loss. Add lines 12 and 13 ~~~~~~~~~~~~~~~~~~~~~~~~
Net Operating Loss Carryforward from Schedule F ~~~~~~~~~~~~~~~~~~~~~~~~~~
Income Subject to Tax. Subtract line 15 from line 14. Do NOT enter an amount below $0 •••••••••
Computed Tax (For tax rates, see bottom of page 3.) Check box if tax is annualized
~~~~~~~~~
Alternative Minimum Tax from page 4, Schedule IA 4626. Check if claiming small business exemption
Total Tax. Add lines 17 and 18 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Credits from Schedule C1, line 4. Do not include estimated tax credit ~ 20
K
3,000. K
Payments from Schedule C2, line 4 ~~~~~~~~~~~~~~~~ 21
Total Credits and Payments. Add lines 20 and 21 ~~~~~~~~~~~~~~~~~~~~~~~~~~~
Net Amount. Subtract line 22 from line 19 ••••••••••••••••••••••••••••••
Tax Due if line 23 is greater than $0 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Penalty (Underpayment of Estimated Tax) Attach IA 2220 ~~~~~~~~~~~~~~~~~~~~~~~
Penalty (Failure to Pay or Failure to File) ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Interest ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Total Amount Due. Add lines 24 through 27. Make check payable to "Treasurer, State of Iowa" •••••
Overpayment if line 23 is less than $0 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Credit to Next Period's Estimated Tax ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Refund Requested. Subtract line 30 from line 29•••••••••••••••••••••••••••
28,106. K
K
1,717. K
29,823.
1
2
3
4
7
8
9
10
11
12
13
14
15
16
17
18
19
2,108.
27,715.
K
27,715.
100.000000 K%
27,715.
K
27,715.
K
27,715.
1,717. K
0. K
1,717.
3,000.
-1,283.
22
23
24
25
26
27
28
29
30
31
0. K
K
K
K
1,283.
1,283. K
K
A complete copy of your federal return, as filed with the Internal Revenue Service, MUST be filed with this return.
For filing status 2 or 3, you must attach pages 1-5 of your consolidated federal return, consolidating income statements,
Iowa Schedule H, and any other forms related to the Iowa return.
251401 11-08-12
14451016 742280 09058.99
42-001a (08/17/12) CCH
1
2012.04030 IOWA STATE BAR ASSOCIATION
09058_91
42-0335370
Schedule A - Other Additions and Reductions
Type of Income
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Other Additions
2012
Percentage Depletion
TIP Credit from federal form 8846
Capital Loss Adjustments for filing status 2 or 3
Contribution Adjustments for filing status 2 or 3
Safe Harbor Lease - Rent
Safe Harbor Lease - Interest
Safe Harbor Lease - Depreciation
Depreciation Adjustment from IA 4562A
Tax Exempt Interest and Dividends. See instructions
Iowa Tax Expense/Refund
Work Opportunity Credit Wage Reduction from federal form 5884
Alcohol & Cellulosic Biofuel Credit from federal form 6478
Foreign Dividend Exclusion from Schedule B
Federal Securities Interest and Dividends. See instructions
Other. Must attach schedule
1,717.
K
1,717.
TOTALS
Type of Dividend Income
Less than 20% Owned
20% to 80% Owned
More than 80% Owned
Dividend Gross Up (federal section 78)
TOTAL. Add lines 1 through 4.
Enter Total on line 13 of Schedule A.
Whole Dollars
Schedule C1 - Credits
Description
Amount
1 Motor Fuel Credit. Attach IA 4136
2 Total Nonrefundable Credits. Attach IA 148
3 Total Refundable Credits, excluding Motor Fuel
1
2
3
4
5
K
Schedule C2 - Payments
K
K
K
Credit. Attach IA 148
K
Enter total on line 3 of page 1.
Enter total on line 6 of page 1.
Enter Whole Dollars
Total Dividend
Exclusion
x 70%
x 80%
x 100%
x 100%
Schedule B - Foreign Dividend Exclusion
4
Enter Whole Dollars IA 1120 Page 2
Other Reductions
Total Credits. Add lines 1-3. Enter on page 1, line 20
Whole Dollars
Amount
Description
1 Estimated Tax Payments
a Credit from prior period overpayment
b First, Date Paid:
c Second, Date Paid:
d Third, Date Paid:
e Fourth, Date Paid:
f Other, Date Paid:
3,000.
2 Voucher Payment
3 Other Payments. Attach statement
4 Total. Add lines 1-3. Enter on page 1, line 21
3,000.
Additional Information
1874
1. Year business was started in Iowa:
2. Last period filed as S corporation (if any):
3. Information from the prior period Iowa return:
Corporation Name: IOWA STATE BAR ASSOCIATION
41,993. K
Net Income/Loss:
FEIN:
4. If part of a federal consolidated group, please provide information about the corporate parent:
Corporation Name:
FEIN:
42-0335370
K
K
Under penalties of perjury, I declare that I have examined this return, any attached schedules/statements, and, to the best of my knowledge, believe it to be true, correct
and complete. If prepared by a person other than the taxpayer, the declaration is based on all information of which there is any knowledge.
Officer's Signature:
Signature of Preparer Other than Taxpayer: THOMAS
Title:
J. PFLANZ, CPA
Name and Address of Preparer or Preparer's Employer:
14451016 742280 09058.99
Date: 10/16/13
Preparer's Telephone No.:
MCGOWEN, HURST, CLARK & SMITH, P.C.
1601 WEST LAKES PARKWAY, SUITE 300
WEST DES MOINES, IA 50266
251402
11-08-12
Date:
(515) 288-3279
P00054885
K
Preparer's ID No.:
42-001b (09/12/12) CCH
2
09058_91
IA 1120 Page 3
Schedule D - Nonbusiness Income. See instructions.
Enter Whole Dollars.
Please attach all documentation detailing why the income should be allocated as Nonbusiness Income.
Type of Income
(A) Gross Income
(B) Related Expenses
(C) Subtotal
(D) 50% of Applicable
Federal Income Tax
2012
(E) Net Income
Allocated Within Iowa
1 Net Dividend.
See instructions.
2 Exempt Interest
3
4
5
6
7
and Dividends
Other Interest
Rent
Royalties
Capital Gain
Other.
Must attach schedule.
SUB TOTAL
8
Allocated Without Iowa
9 Net Dividend.
See instructions.
10 Exempt Interest
and Dividends
11 Other Interest
12 Rent
13 Royalties
14 Capital Gain
15 Other.
Must attach schedule.
16 SUB TOTAL
17
TOTAL
Column E. Add lines 1 through 7. Enter Total on line 13 of page 1.
Column E. Add lines 9 through 15.
Column E. Add lines 8 and 16.
Enter Total on line 9 of page 1.
Schedule E - Business Activity Ratio (BAR) (see instructions)
Type of Income
1
2
3
4
5
6
7
8
9
10
11
12
13
Column A
Iowa Receipts
Enter Whole Dollars
Column B
Receipts Everywhere
K
Gross Receipts
Net Dividends. See instructions.
Exempt Interest from line 9, Schedule A
Accounts Receivable Interest
Other Interest
Rent
Royalties
Capital Gains
Ordinary Gains
Partnership Gross Receipts. Attach schedule.
Other. Must attach schedule.
TOTALS
Percentage. Divide column A by column B to six decimal places. Enter % on line 11 of page 1.
K
K
K
K
K
K
K
K
K
K
K
K
1
2
3
4
5
6
7
8
9
10
11
12
% 13
K
K
TAX RATES:
If income shown on line 16 (of page 1) is:
To obtain schedules and forms:
Web site: www.iowa.gov/tax/
Tax Research Library: http://itrl.idr.iowa.gov/
Under $25,000 ~~~~~~~ then multiply line 16 by 6%
$25,000 to $100,000 ~~~~ then multiply line 16 by 8% and
subtract $500
To talk to a tax specialist:
1-800-367-3388 (Iowa, Omaha, Rock Island, Moline)
515/281-3114 (Des Moines, out of state)
E-mail: [email protected]
$100,000 to $250,000 ~~~~ then multiply line 16 by 10% and
subtract $2,500
MAIL YOUR RETURN TO:
Corporation Tax Return Processing
PO Box 10468
Des Moines IA 50306-0468
Over $250,000 ~~~~~~~ then multiply line 16 by 12% and
subtract $7,500
If annualizing, attach a schedule showing computation.
Corporate Name:
251461
11-08-12
14451016 742280 09058.99
FEIN:
42-0335370
42-001c (08/17/12) CCH
3
09058_91
IA 1120 Page 4
2012
Schedule IA 4626 Computation of Alternative Minimum Tax (AMT)
Period Ended 06 / 30 / 13
All totals from federal form 4626 except as noted. Federal form 4626 must be attached.
1 Income Subject to Apportionment from line 10, page 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
2 Total Adjustments and Preferences ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
3 Preferences Not Applicable for Iowa
a Depletion ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
a
b Tax Exempt Interest from Private Activity Bonds ~~~~~~~~~~~~~~~~~~
b
4 Total Iowa Tax Preferences. Subtract lines 3a and b from line 2 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~
5 Enter Total of lines 1 and 4 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
6 Adjusted Current Earnings Adjustment. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
7 Total of lines 5 and 6 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
8
9
10
11
12
13
14
15
16
17
18
27,715.
1
2
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
Iowa Percentage from line 11, page 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Income Apportioned to Iowa. Multiply line 7 by line 8 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Iowa Nonbusiness Income from line 13, page 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Add Lines 9 and 10 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Iowa Alternative Minimum Tax Net Operating Loss (limited to 90% of line 11) (Schedule G, total from column E) ~~~~~~~
Iowa Alternative Minimum Taxable Income before Exemption. Subtract line 12 from line 11 ~~~~~~~~~~~~~~~~
Exemption. See instructions ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Iowa Alternative Minimum Taxable Income Subject to Tax. Subtract line 14 from line 13 ~~~~~~~~~~~~~~~~~
Iowa Tentative Minimum Tax. Multiply line 15 by 7.2% ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Iowa Regular Tax from line 17, page 1 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
IOWA ALTERNATIVE MINIMUM TAX: Subtract line 17 from line 16 but not below zero. Enter on line 18, page 1 •••••••
27,715.
27,715.
100.000000%
27,715.
27,715.
27,715.
40,000.
0.
1,717.
0.
Schedule IA 8827 Computation of Alternative Minimum Tax (AMT) Credit
Period Ended 06 / 30 / 13
1 Enter Credit Carryforward. See worksheet below. Enter on IA 148 Tax Credits Schedule, column C ~~~~~~~~~~~~~
2 Enter Your Current Period Regular Tax Liability Minus Credits ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
3 Enter Your Current Period Tentative Minimum Tax from line 16 of IA 4626 above ~~~~~~~~~~~~~~~~~~~~
4 Subtract line 3 from line 2 but Not Below Zero ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
5 Alternative Minimum Tax Credit. Enter the smaller of line 1 or line 4.
Enter on IA 148 Tax Credits Schedule, column F ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
6 Balance to Carryforward to Next Tax Period. Subtract line 5 from line 1 ~~~~~~~~~~~~~~~~~~~~~~~~~
7 Iowa Alternative Minimum Tax from line 18 Above. Enter on IA 148 Tax Credits Schedule, column D ~~~~~~~~~~~~
8 Total Alternative Minimum Tax Credit Carryforward to Next Tax Period. Add line 6 and line 7.
Enter on IA 148 Tax Credits Schedule, column H ••••••••••••••••••••••••••••••••••
1
2
3
4
1,717.
1,717.
5
6
7
0.
0.
0.
8
0.
Worksheet - Alternative Minimum Tax (AMT) Credit Carryforward
A
B
C
Tax Period Ended
Alternative Minimum Tax Paid
Period Applied To
D
Prior Alternative
Minimum Tax Credit Applied
E
Unused
Alternative Minimum Tax Credit
Balance of the Unused Alternative Minimum Tax Credit Carryforward. Enter on IA 8827, line 1.
Corporate Name:
251481
11-08-12
14451016 742280 09058.99
FEIN:
42-0335370
42-001d (08/17/12) CCH
4
09058_91

meeting material here. - The Iowa State Bar Association

Transcription

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