Stating that it is in a "strong financial position with excellent liquidity," and aided by a reversal of nearly $2 million in pension liability, the American Institute of CPAs reported a $290,000 excess in operating revenue for fiscal 2004, versus a deficit of $1.25 million for its prior fiscal year.
However, the 340,000-member organization, headquartered here, said that fiscal 2004 operating revenue fell 3 percent below budget, to $3.9 million. The shortfall in operating revenue stems from a decline in a number of streams, including a $1.9 million, or 14 percent, dip in CPA exam revenue as a result of the conversion to the computer-based test, and a $677,000, or 9.4 percent, fall in advertising sales.
The institute also said that due to fewer new members and higher numbers of retired members, membership dues were $781,000 below budget, or 1.2 percent. Meanwhile, magazine subscriptions and software revenue fell $559,000, or 2.5 percent, as a result of decreased renewal rates and the termination of the Financial Accounting Standards Board loose-leaf subscription service.
On a combined basis -- which includes the AICPA, Web portal CPA2Biz and NorthStar Conferences -- fiscal 2004 operating expenses exceeded operating revenue by $3.8 million, compared with a $7.1 million deficit accrued for fiscal 2003. Also on a combined basis, the institute reported a net gain of $5.8 million on marketable securities, compared to a gain of $3.1 million for its prior fiscal year.
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