2024-11-14T09:40:04-07:00 2024-07-31 990 2023-08-01 133448166 NATIONAL ASSOCIATION OF STATE BOARDS OF ACCOUNTANCY INC NATI 6158804200 150 Fourth Avenue North Suite 700 Nashville TN 372192417 Troy Walker VP and Chief Financial Officer 6158804246 2024-11-14 1 2023 2024-10-15 13:58:12Z Daniel J Dustin CPA 150 Fourth Ave North Suite 700 Nashville TN 37219 58011680 0 X www.nasba.org X 1987 DE NASBA's mission is to enhance the effectiveness and advance the common interests of the Boards of Accountancy. NASBA provides support to its members, the fifty-five jurisdictional Boards of Accountancy, by representing their common interests in relevant regulatory and licensing issues. NASBA's program activities enhance the member boards' effective stewardship of the public interest by supporting the licensing and regulation of Certified Public Accountants through the individual Boards of Accountancy of the fifty states, the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. 20 20 145 228 128100 0 0 0 37751655 43400477 2009709 3175302 100866 128100 39862230 46703879 20400 25000 0 0 15410979 17365397 0 0 0 21968334 21104846 37399713 38495243 2462517 8208636 97045632 105394465 17409563 14620418 79636069 90774047 NASBA's mission is to enhance the effectiveness and advance the common interests of the Boards of Accountancy. NASBA provides support to its members, the fifty-five jurisdictional Boards of Accountancy, by representing their common interests in relevant regulatory and licensing issues. NASBA's program activities enhance the member boards' effective stewardship of the public interest by supporting the licensing and regulation of Certified Public Accountants through the individual Boards of Accountancy of the fifty states, the District of Columbia, Guam, the Commonwealth of the Northern Mariana Islands, Puerto Rico, and the U.S. Virgin Islands. 0 0 Fifty-five jurisdictional Boards of Accountancy, operating under individual state or territory governments, issue licenses to and serve as regulators of Certified Public Accountants ("CPA"). NASBA developed and operates a National Candidate Database which is a central repository for all CPA Examination candidate information. The National Candidate Database helps Boards of Accountancy, as well as the CPA Examination contract partners, protect the personal data provided by candidates during the application and examination process. Approximately 207,000 CPA Examination sections were processed through the National Candidate Database during the twelve months ended July 31, 2024. In addition, services such as application processing, credential evaluations, and score reporting are provided to thirty-six Boards of Accountancy under contracts for pre-National Candidate Database eligibility requirements. NASBA also provides other related services which assist Boards of Accountancy in the examination process. By NASBA providing each of these services, it enables Boards of Accountancy to provide candidates for the CPA Examination with an operational pathway to the CPA Examination, an essential requirement in becoming a CPA. Regarded as a cornerstone of support to Boards of Accountancy, NASBA appoints volunteers and provides funding for committees and task forces annually. Through the work of these committees, NASBA volunteers and staff address current and emerging issues affecting Boards of Accountancy. Topics range from ethics, education, inclusion, accounting standards, professional trends, continuing professional education ("CPE"), CPA equivalent licensure paths, peer review, and enforcement for the member Boards of Accountancy consideration. During the current year, there were twenty-six such task force and committees. NASBA also hosts conferences that provide a forum for members to connect and be informed on these topics, as well as to share best practices for enforcement, licensing issuance and regulation. These include an annual meeting for all Board of Accountancy members and staff, regional meetings which focus on and discuss issues specific to Boards of Accountancy in each region of the country, and conferences for executive directors and legal counsel who further the work of Boards of Accountancy. There were five such conferences held during the year. CPAs must comply with statutory licensing requirements that include participating in continuing professional education ("CPE") programs. NASBA maintains a National Registry of CPE Sponsors ("Registry") which recognizes CPE program sponsors who commit to meeting the highest CPE program standards. To be listed on the Registry, learning providers must demonstrate that professional competence of participating CPAs is enhanced by the programs offered. CPE program sponsors on the Registry qualify as approved providers of CPE for purposes of meeting Boards of Accountancy CPE licensing requirements. As of July 31, 2024, there were approximately 2,000 approved CPE program sponsors on the Registry. In addition, NASBA provides tools that assist CPAs and CPA firms in achieving compliance with Boards of Accountancy licensing requirements related to CPE. NASBA also offers CPE Audit Services to Boards of Accountancy to use as an automated tool for conducting their audits of licensees' compliance with CPE requirements. As a part of public protection, Boards of Accountancy require that CPAs be licensed and remain in good standing. To assist and support Boards of Accountancy in this requirement, NASBA provides various services. NASBA provides initial and renewal licensing services on behalf of Boards of Accountancy which helps make the licensing process more efficient for Boards of Accountancy and the licensee. These services include application processing, eligibility determination, score reporting, and education evaluation. In addition, NASBA maintains the Accountancy Licensee Database. This is a central repository of current licensee and firm information for participating jurisdictions (53 of 55) and is populated by official state regulatory data sent from Boards of Accountancy. It offers a single-source national database of CPAs who are currently licensed or have been previously licensed. The Accountancy Licensee Database is used to assist Boards of Accountancy in their regulatory operation through the sharing of this data. A similar database, CPAverify, is offered to the public. NASBA also provides licensing and practice privilege information related to all U.S. jurisdictions and Boards of Accountancy through the Accountancy Licensing Library and CPAmobility.org. 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 1 40 0 1 145 1 1 1 0 0 0 0 0 1 0 X 20 20 0 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 0 0 X Troy A Walker CPA 6158804200 150 Fourth Avenue North Suite 700 Nashville TN 372192417 Kenneth L Bishop President and Chief Executive Officer 58 2 X 1853463 0 56598 Colleen K Conrad CPA Executive VP and Chief Operating Officer 54 0 X 747341 0 55229 Michael R Bryant CPA Senior Vice President and Chief Financial Officer (Retired) 40 0 X 576324 0 98639 Maria-Lisa Caldwell Esq Chief Legal Officer; Director, Compliance Services 40 0 X 407172 0 60236 Cheryl R Farrar Chief Information Officer 40 0 X 296919 0 51158 Daniel J Dustin CPA VP State Board Relations 40 0 X 289954 0 34329 Troy A Walker Vice President and Chief Financial Officer 48 2 X 261757 0 57629 Roy H Hall Jr Chief Information Security Officer 26 0 X 227099 0 18557 Lisa S Dampf Chief Human Resources Officer 40 0 X 206630 0 27222 Thomas G Kenny Chief Communications Officer 40 0 X 210024 0 23330 John Johnson Director, Legislative and Government Affairs 40 0 X 174210 0 25121 Stephanie M Saunders CPA Chair 16 0 X 0 0 0 Maria E Caldwell CPA Vice Chair 8 0 X 0 0 0 Richard N Reisig CPA Past Chair 4 0 X 0 0 0 Nicola Neilon CPA Director-at-Large 4 0 X 0 0 0 J Andy Bonner Jr CPA Director-at-Large 4 0 X 0 0 0 Barry M Berkowitz CPA Director-at-Large 4 2 X 0 0 0 Alison L Houck Andrew CPA Director-at-Large 4 0 X 0 0 0 Chandra Lalvani CPA Director-at-Large 4 0 X 0 0 0 Stephen F Langowski CPA Director-at-Large 4 0 X 0 0 0 Jason D Peery CPA Director-at-Large 4 0 X 0 0 0 Katrina Salazar CPA Director-at-Large 4 0 X 0 0 0 Kenya Y Watts CPA Director-at-Large 4 0 X 0 0 0 Nancy J Corrigan CPA Regional Director 4 0 X 0 0 0 Timothy F Egan CPA Regional Director 4 0 X 0 0 0 Michael Schmitz CPA Regional Director 4 0 X 0 0 0 Willie B Sims Jr CPA Regional Director 4 0 X 0 0 0 Jeannette P Smith CPA Regional Director 4 0 X 0 0 0 Dan Vuckovich CPA Regional Director 4 0 X 0 0 0 Laurie A Warwick CPA Regional Director 4 0 X 0 0 0 Gerald Weinstein PhD CPA Regional Director 4 0 X 0 0 0 W Michael Fritz CPA Past Chair 4 2 X 0 0 0 J Coalter Baker CPA Director-at-Large 4 2 X 0 0 0 Jimmy E Burkes CPA Director-at-Large 4 2 X 0 0 0 Lynn V Hutchinson CPA Regional Director 4 0 X 0 0 0 Vikki G Nunn CPA Regional Director 4 0 X 0 0 0 Richard S Silverman CPA Regional Director 4 0 X 0 0 0 Arthur M Winstead Jr CPA Regional Director 4 0 X 0 0 0 5250893 0 508048 22 0 1 0 Nimble Consulting Group LLP PO Box 212 Philomont VA 20131 Computer consulting 183983 1 0 0 0 0 0 0 0 0 Examination related programs 541900 36333433 36333433 0 0 CPE related programs 541900 5593257 5593257 0 0 Licensing related programs 541900 788907 788907 0 0 Conference fees 541900 380580 380580 0 0 Membership dues 541900 304300 304300 0 0 0 0 0 0 43400477 2998429 0 0 2998429 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 11484674 0 11307801 0 176873 0 176873 0 0 176873 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Program services to non-CPA entities 541900 128100 0 128100 0 0 0 0 0 128100 46703879 43400477 128100 3175302 0 25000 0 0 4869273 0 8999569 509037 2068396 919122 0 374088 97435 0 0 135558 353362 58332 424001 11919280 0 1622986 1102426 0 1339113 0 0 749923 180562 Credit Card Fees 2008027 Examination administration costs 480534 Contribution to NASBA Center for the Public Trust 150000 Bank and Payroll Fees 54549 54670 38495243 0 0 0 444316 1550327 18070672 22760049 0 0 1852833 909673 0 0 0 0 0 0 0 0 922815 1196299 8806931 6203359 3108179 2603572 51031687 55861495 2309165 2409165 0 0 18929749 17706414 376216 397471 97045632 105394465 6847242 6123327 31599 43684 3412032 2911286 0 0 0 0 0 0 0 0 0 0 7118690 5542121 17409563 14620418 X 79636069 90774047 0 0 79636069 90774047 97045632 105394465 X 8208636 2922421 0 0 -1000 7921 X 0 1 X 1 0 1 1 0 1 23540278 52734553 55391102 20883729 0 153453 0 19658 0 0 0 173111 141012 0 12441 0 0 0 153453 154293 0 -13281 0 0 0 141012 123723 0 30570 0 0 0 154293 117330 0 6393 0 0 0 123723 0 0.5353 0.4647 0 0 0 0 0 0 304409 136575 167834 0 4068491 2819434 1249057 0 2534794 1931365 603429 0 1899237 1315985 583252 2603572 0 Operating Lease Liability 5542121 5542121 X 49490742 2922421 0 0 0 2922421 46568321 135558 0 135558 46703879 38351764 0 0 0 2712214 2712214 35639550 135558 2720135 2855693 38495243 Schedule D, Part IV, Line 1b NASBA entered into agreements with Prometric, Inc. ("Prometric"), a company that provides technology-enabled testing services, and the American Institute of Certified Public Accountants ("AICPA") to jointly deliver a computerized uniform CPA Examination. Under the terms of the agreements, NASBA collects from candidates the Prometric and AICPA fees related to the examination. These fees are held in escrow accounts in the names of the respective parties and are disbursed when services are provided. The escrow funds and the related obligations are not reported in the financial statements because they do not represent assets or obligations of NASBA. Schedule D, Part V, Line 4 The NASBA Center for the Public Trust, a subsidiary of NASBA and consolidated in NASBA's financial statements, has an endowment fund. The income generated from the endowment fund is restricted for the benefit of the Student Center for the Public Trust. Schedule D, Part X, Line 2 NASBA has adopted the recognition requirements for uncertain income tax positions and believes that income tax filing positions will be sustained upon examination and does not anticipate any adjustments that would result in a material adverse effect on NASBA's consolidated financial position, results of operations or cash flows. Accordingly, no liability is recognized for taxes, interest or penalties related to uncertain tax positions at July 31, 2024 and 2023. It is NASBA's policy to recognize interest and penalties related to income tax matters in other expense. In general, NASBA is no longer subject to examinations by tax authorities for U.S. federal and state income tax returns before fiscal 2021. Schedule D, Part XII, Line 2d Amortization of software development costs Schedule D, Part XII, Line 4b Capitalized software development costs 1 Accounting education research 3 25000 0 N/A N/A Schedule I, Part I, Line 2 The grant recipients submit periodic reports to NASBA which are reviewed by the staff overseeing the grant awards. These reports describe the progress of the projects and how the grant funds have been used. X X X 1 1 X X X X X X 0 0 0 Kenneth L Bishop President and Chief Executive Officer 1294292 0 325000 0 234171 0 32550 0 25931 0 1911944 0 0 0 Colleen K Conrad CPA Executive VP and Chief Operating Officer 623986 0 65000 0 58355 0 31181 0 25968 0 804490 0 0 0 Michael R Bryant CPA Senior Vice President and Chief Financial Officer (Retired) 492497 0 50000 0 33827 0 66271 0 34480 0 677075 0 0 0 Maria-Lisa Caldwell Esq Chief Legal Officer; Director, Compliance Services 382172 0 25000 0 0 0 34319 0 28982 0 470473 0 0 0 Cheryl R Farrar Chief Information Officer 271919 0 25000 0 0 0 30043 0 22158 0 349120 0 0 0 Troy A Walker Vice President and Chief Financial Officer 236757 0 25000 0 0 0 27078 0 31803 0 320638 0 0 0 Daniel J Dustin CPA VP State Board Relations 264954 0 25000 0 0 0 23425 0 12725 0 326104 0 0 0 Roy H Hall Jr Chief Information Security Officer 217099 0 10000 0 0 0 16768 0 2058 0 245925 0 0 0 Lisa S Dampf Chief Human Resources Officer 186630 0 20000 0 0 0 15689 0 12690 0 235009 0 0 0 Thomas G Kenny Chief Communications Officer 190024 0 20000 0 0 0 2600 0 21972 0 234596 0 0 0 John Johnson Director, Legislative and Government Affairs 162210 0 12000 0 0 0 12080 0 13923 0 200213 0 0 0 Schedule J, Part I, Line 1a For extended flights as defined in the reimbursement policy, the President and Chief Executive Officer ("CEO") and the Chair of the Board of Directors ("Chair") may fly first class. The purchase of upgrades is encouraged as an economical alternative to first class when available. NASBA also provides for the travel of the spouse of the CEO, the spouse or guest of the Chair and, for specific events, the spouse or guest of the Vice Chair, the Vice Chair Elect, and Past Chairs of the Board of Directors based on certain spousal, or guest, duties related to the travel events. This is pursuant to a long-standing written travel reimbursement policy originally adopted by the Board of Directors in 1995. It was also adopted in writing for the current CEO's spouse, or companion, as a part of his employment contract. NASBA provides for contractual gross-up payments related to the annual employer's retirement plan contributions for those officers whose annual compensation exceeds the limit as set by the Internal Revenue Service. Form 990, Part VI, Section A, Line 6 From the Bylaws: The members of the Association shall be the boards, departments or instrumentalities confirmed by the Board of Directors as legally constituted by their respective states, territories and the District of Columbia of the United States of America to pass on the qualifications of, or to examine applicants for certification or licensure as, certified public accountants or similar licensed categories, or to regulate the practice of public accountancy with their jurisdiction. Form 990, Part VI, Section A, Line 7a From the Bylaws: The Nominating Committee shall nominate annually one qualified candidate for Vice Chair, three candidates for Directors-at-Large for those whose terms are expiring at the Annual Meeting, and one candidate for Regional Director from each Region. Each year, the Nominating Committee will establish and communicate to the Member Boards, a nominating schedule including any deadlines for the submission of names of candidates seeking to be nominated for any of the offices to be elected at the Annual Meeting. The Nominating Committee may waive the deadlines by a majority vote. The Nominating Committee will consider the submitted names of interested candidates when considering nominees and may also consider other qualified candidates when deemed appropriate by the Nominating Committee. If the Vice Chair is unable to serve as Chair, then the Nominating Committee also shall nominate a candidate for Chair. The report of the Nominating Committee shall be submitted to the Chair and presented in accordance with the provisions of these bylaws. The Nominating Committee shall deliver to the Chair a report which shall include its Annual Nominations. The report shall be included with the notice of the Annual Meeting, and shall be presented by the Nominating Committee during the Business Session at the Annual Meeting. A majority vote of the Member Boards represented during the Business Session at the Annual Meeting (or by mail ballots for Vice Chair) shall constitute an election, provided a quorum is met. Form 990, Part VI, Section B, Line 11b NASBA's governing Board of Directors and Audit Committee have a high concentration of Certified Public Accountants, many of whom would be considered financial experts for the purposes of the Form 990. The Form 990 and all required schedules are made available to the Board of Directors and Audit Committee in electronic format before filing with the Internal Revenue Service. The management and staff of the organization prepare the Form 990 and it is distributed for review to the Audit Committee and Board of Directors. The Audit Committee and Board of Directors are given the opportunity to comment on the Form 990 prior to filing. Any changes deemed necessary from the comments are made prior to the Form 990 filing with the Internal Revenue Service. Form 990, Part VI, Section B, Line 12c Annually, each employee, Board of Director member, and Audit Committee member, are required to sign a compliance statement which states they have read, understand and are in full compliance with NASBA's Conflict of Interest Policy ("Policy"). Any exceptions to the Policy are noted on the statement. All conflicts of interest are disallowed without the prior approval of the President and Chief Executive Officer of NASBA or the Chair of the Audit Committee. New vendor relationships are reviewed during the year to determine if any conflicts of interest exist. Form 990, Part VI, Section B, Line 15 The NASBA Executive Compensation Committee ("Compensation Committee") is comprised of the Chair, the Vice Chair, the Past Chair, the Secretary, and the Treasurer of the Board of Directors. These Compensation Committee members are disinterested directors who are subject to NASBA's Conflict of Interest Policy. The Compensation Committee assesses and determines compensation for NASBA's President and Chief Executive Officer ("CEO"), ensuring that his or her compensation aligns with NASBA's mission and values, its compensation philosophy, its bylaws, extant contracts and governing laws. To ensure the competitiveness of the compensation of the CEO, the Compensation Committee undertakes an annual process that includes reviewing comparable data and reports prepared by external consultants. In addition, the external consultants provide a reasonableness letter regarding the CEO compensation. All compensation deliberations and decisions regarding the CEO are contemporaneously documented in the Executive Committee/Compensation Committee minutes. The Board of Directors has final approval authority over the compensation of the CEO. Documentation of the compensation decision is provided to the Chief Financial Officer and Chief Human Resource Officer. Form 990, Part VI, Section C, Line 19 The governing documents and annual report, which includes the audited financial statements, are available on NASBA's website. The governing documents, Conflict of Interest Policy and financial statements are also available upon request. Form 990, Part XI, Line 8 The prior period adjustment resulted from the adoption of Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326)("ASU 2016-13") effective August 1, 2023. The adoption of ASU 2016-13 was applied using a cumulative adjustment of net assets at the date of initial application. Form 990, Part XI, Line 9 Capitalized software development costs; $2,720,135; Amortization of software development costs; $-2,712,214 NASBA Center for the Public Trust 150 Fourth Avenue North Suite 700 Nashville TN 372192417 201746267 Championing the public trust by advancing ethical leadership in business, institutions and orgs. TN 501(c)(3) 10 National Association of State Boards of Accountancy 1 Aequo International LLC 150 Fourth Avenue North Suite 700 Nashville TN 37219 471785864 International education evaluation services for non-accounting related occupations and institutions DE National Association of State Boards of Accountancy C -72691 72597 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 1 0 0 Aequo International LLC a-iv 7026 Actual Incurred NASBA Center for the Public Trust a-iv 22976 Actual Incurred NASBA Center for the Public Trust b 150000 Actual Paid Aequo International LLC b 100000 Actual Paid NASBA Center for the Public Trust o 369784 Fair Value NASBA Center for the Public Trust q 424042 Actual Paid Aequo International LLC q 126270 Actual Paid