TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY · 2011-06-01 · Texas State Board of Public Accountancy...

TEXAS STATE BOARD

OF

PUBLIC ACCOUNTANCY

ANNUAL FINANCIAL REPORT

For The Year Ended August 31, 2010

TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY


For the Year Ended August 31, 2010

WILLIAM TREACY EXECUTIVE DIRECTOR

Prepared by: Alan L. Hermanson, CPA Director of Administrative Services/CFO (512) 305-7814

Texas State Board of Public Accountancy 333 Guadalupe, Tower 3 Suite 900, Austin, Texas 78701 -3900

William Treacy, Executive Director

November 19, 2010

Honorable Rick Perry, Governor Honorable David Dewhurst, Lieutenant Governor Honorable Joe Straus, Speaker of the House Honorable Susan Combs, State Comptroller John O'Brien, Director, Legislative Budget Board John Keel, CPA, State Auditor

Lady and Gentlemen:

We are pleased to submit the Annual Financial Report of the Texas State Board of Public Accountancy for the year ended August 31, 2010, in compliance with TEX. GOVT CODE ANN §2101.011 and in accordance with the requirements established by the Comptroller of Public Accounts .

Due to the statewide requirements embedded in Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and Management's Discussion and Analysis -for State and Local Governments, the Comptroller of Public Accounts does not require the accompanying annual financial report to comply with all the requirements in this statement. The financial report will be considered for audit by the State Auditor as part of the audit of the State of Texas Comprehensive Annual Financial Report; therefore, an opinion has not been expressed on the financial statements and related information contained in this report .

If you have any questions, please call Alan Hermanson, CPA, at (512) 305-7814.

Enclosure

xc: Legislative Reference Library Texas State Library

Sincerely,


~?~~ WILLIAM TREACY U Executive Director

Enforcement Licensing Qualifications FAX Administration/ Accounting

(512) 305-7800

Automated Information

(512) 305-7870

ePE (512) 305-7844 (512) 305-7866 (512) 305-7853 (512) 305-7851

Peer Review

(512) 305-7853 (512) 305-7875 (512) 305-7854

www.tsbpa.state.tx.us An equal opportunity, affirmative action employer



For the Year Ended August 31,2010

MEMBERS OF THE BOARD (As of August 31,2010)

Gregory L. Bailes, CPA, Presiding Officer ............................................. Bee Cave

Dorothy M. Fowler, CPA, Assistant Presiding Officer ........................... Corpus Christi

James C. Flagg, PhD, CPA, Secretary .................................................. Brenham

A. Carlos Barrera, CPA, Treasurer ........................................................ Brownsville

David L. King, CPA, Executive Committee Member............................... Lago Vista

John W. (Jay) Dunbar, CPA .................................................................. EI Paso

Everett R. Ferguson, CPA ...................................................................... Abilene

Jon R. Keeney ........................................................................................ Taylor Lake Village

Evelyn Martinez, Esq. ............................................................................ San Antonio

Maribess L. Miller, CPA ......................................................................... Dallas

Steve D. Pena, CPA ............................................................................... Georgetown

James W. Pollard .................................................................................... Canadian

Thomas G. Prothro, CPA ........................................................................ Tyler

Catherine J. Rodewald .......................................................................... Dallas

John W. Steinberg .................................................................... ............. Marion

TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY Austin, Texas

TABLE OF CONTENTS

I. COMBINED FINANCIAL STATEMENTS

A. Exhibit I: Combined Balance Sheet/Statement of Net Assets -Governmental Funds "', .............. ,"", .... ,', .. ,"', .. ,', ...... , .... , .. " .. " .. " .. , ........ " .. , ..

B, Exhibit II: Combined Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities -Governmental Funds ...... , .. , .............. ', .. ,"',', ........ ,"', .... ,", .. "",...................... 2

II. NOTES TO THE FINANCIAL STATEMENTS ., .......................................................... ,................ 3

III. COMBINING STATEMENTS

A. Exhibit A-1:

B. Exhibit A-2:

C. Exhibit J-1:

Combining Balance Sheet - All General and Consolidated Funds ..................... ,.................................................. 17

Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All General and Consolidated Funds ,., .................... , ....................................... ,.,...... 18

Combining Statement of Changes in Assets and Liabilities - Agency Funds ...................................................................................... 19

D. Schedule 4:

1. Schedule of Modified to Full Accrual Adjustments -Governmental Funds - Balance Sheet/Statement of Net Assets """"""""."""". 20

2. Schedule of Modified to Full Accrual Adjustments -Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities ........................................ 21

IV. ADDENDA

A. Organization of the Board 23

B. Functions of the Board .................................................................................................... 24

C. Organization Chart .......................................................................................................... 26

D. List of Bonded Employees................................................................................................ 27

E. Statistical Information

1. Registration and Licensure.......................................................................................... 28

2. Qualifications ............................................................................................................. :.. 30

3. Enforcement................................................................................................................. 32

4. Collections.................................................................................................................... 36

5. Expenditures .......................................................................................................... ...... 38

I. COMBINED FINANCIAL STATEMENTS

A. Exhibit I:

B. Exhibit II:

Combined Balance Sheet I Statement of Net Assets -Governmental Funds

Combined Statement of Revenues, Expenditures, and Changes in Fund Balance I Statement of Activities -

Governmental Funds

This page intentionally left blank.

UNAUDITED

Texas State Board of Public Accountancy (457) Exhibit I - Combined Balance Sheet/Statement of Net Assets - Governmental Funds

August31,2010 Governmental Fund T~~es

General Governmental Capital Long-Term Statement Funds Funds Assets Liabilities of

(EXHA-1) Total Adjustments Adjustments Net Assets

ASSETS Current Assets:

Cash and Cash Equivalents: Cash on Hand $ 155,720.67 $ 155,720.67 $ $ $ 155,720.67 Cash in Bank (Note 3) 68,941.29 68,941.29 68,941.29

Cash in State Treasury 7,768,951.76 7,768,951.76 7,768,951.76 Short Term Investments (Note 3) 919,888.90 919,888.90 919,888.90

Due From Other Agencies (Note 12) Consumable Inventories 71,485.11 71,485.11 71,485.11

Total Current Assets 8,984,987.73 8,984,987.73 8,984,987.73

Non-Current Assets: Capital Assets (Note 2):

Depreciable Furniture and Equipment 353,534.65 353,534.65

Less Accumulated Depreciation (191,966.83) (191,966.83)

Vechicle, Boats, and Aircraft 16,348.14 16,348.14


Other Capital Assets Less Accumulated Depreciation

Receivables: Other Non-Current Assets

Total Non-Current Assets 161,567.82 161,567.82 Total Assets $ 8,984,987.73 $ 8,984,987.73 $ 161,567.82 $ $ 9,146,555.55

LIABILITIES AND FUND BALANCES

Liabilities: Current Liabilities:

Payables From: Vouchers Payable $ 202,293.89 $ 202,293.89 $ $ $ 202,293.89

Accounts Payable 33,503.73 33,503.73 33,503.73

Payroll Payable 260,842.26 260,842.26 260,842.26

Due To Other Agencies (Note 12) 1,993,858.15 1,993,858.15 1,993,858.15

Employees' Compensable Leave (Note 5) 167,200.99 167,200.99

Total Current Liabilities 2,490,498.03 2,490,498.03 167,200.99 2,657,699.02

Non-Current Liabilities: Employees' Compensable Leave (Note 5) 166,518.00 166,518.00

Total Non-Current Liabilities 166,518.00 166,518.00

Total Liabilities 2,490,498.03 2,490,498.03 333,718.99 2,824,217.02

FUND FINANCIAL STATEMENT - FUND BALANCES

Fund Balances (Deficits): Reserved for:

Encumbrances 12,551.17 12,551.17 12,551.17

Inventories 71,485.11 71,485.11 71,485.11

Undesignated: Board Policy Reserve (See Note 1.D) 1,500,000.00 1,500,000.00 1,500,000.00

Other 4,910,453.42 4,910,453.42 4,910,453.42

Total Fund Balances 6,494,489.70 * 6,494,489.70 * 6,494,489.70

Total Liabilities and Fund Balances $ 8,984,987.73 $ 8,984,987.73

GOVERNMENT-WIDE STATEMENT OF NET ASSETS

Net Assets: Invested in Capital Assets, 161,567.82 161,567.82

Net of Related Debt Restricted Unrestricted (333,718.99) (333,718.99)

Total Net Assets $ 161,567.82 * $ (333,718.99) * $ 6,322,338.53 *

* Column totals should agree to Exhibit II column totals.

The accompanying notes to the financial statements are an integral part of this statement.

PAGE 1

UNAUDITED

Texas State Board of Public Accountancy (457) Exhibit II - Combined Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities - Governmental Funds For the Fiscal Year Ended August 31, 2010

General Governmental Funds Funds

(EXH A-2) Total REVENUES

Licenses, Fees & Permits $ 5,194,949.97 $ 5,194,949.97 Interest and Investment Income 74,373.58 74,373.58 Sales of Goods and Services Other 54,533.93 54,533.93

Total Revenues 5,323,857.48 5,323,857.48

EXPENDITURES Salaries and Wages 2,341,067.29 2,341,067.29 Payroll Related Costs 559,624.00 559,624.00 Professional Fees and Services 658,048.69 658,048.69 Travel 65,829.39 65,829.39 Materials and Supplies 329,862.76 329,862.76 Communication and Utilities 28,423.71 28,423.71 Repairs and Maintenance 34,608.43 34,608.43 Rentals & Leases 165,692.26 165,692.26 Printing and Reproduction 164,758.75 164,758.75 Claims and Judgments Public Assistance Payments 90,000.00 90,000.00 Other Expenditures 438,532.83 438,532.83 Capital Outlay 24,946.22 24,946.22 Depreciation Expense

Total Expenditures/Expenses 4,901,394.33 4,901,394.33

Excess (Deficiency) of Revenues Over Expenditures 422,463.15 422,463.15

OTHER FINANCING SOURCES (USES) Sale of Capital Assets 572.59 572.59 Transfers Out (Note 1.F.) (703,344.00) (703,344.00) Gain (Loss) on Sale of Capital Assets

Total Other Financing Sources and Uses (702,771.41) (702,771.41 )

SPECIAL ITEMS

EXTRAORDINARY ITEMS

Net Change in Fund Balances/Net Assets (280,308.26) (280,308.26)

FUND FINANCIAL STATEMENT - FUND BALANCES Fund Balances, Beginning 6,774,797.96 6,774,797.96

Adjustment to Fund Balances (Restatement) Note 14 Fund Balances, September 1, 2009, As Adjusted 6,774,797.96 6,774,797.96

Fund Balances, August 31,2010 $ 6,494,489.70 • $ 6,494,489.70 •

GOVERNMENT-WIDE STATEMENT OF NET ASSETS

Net Assets/Change in Net Assets 6,494,489.70

Net Assets-Beginning Restatements

Net Assets, September 1, 2009, as Restated

Capital Long-Term Assets Liabilities

Adjustments Adjustments

$

8,488.30

(24,946.22) 57,696.36 32,750.14 8,488.30

(32,750.14) (8.488.30)

(10,069.01 ) (10,069.01)

$

(42,819.15) (8.488.30)

207,673.96 (325,230.69) (3,286.99)

204,386.97 (325,230.69)

Net Assets, August 31, 2010 $ 161,567.82 • $ (333,718.99)' $

'Column totals should agree to Exhibit I column totals


PAGE 2

Statement of

Activities

5,194,949.97 74,373.58

54,533.93 5,323,857.48

2,349,555.59 559,624.00 658,048.69

65,829.39 329,862.76

28,423.71 34,608.43

165,692.26 164.758.75

90,000.00 438,532.83

57,696.36 4,942,632.77

381,224.71

572.59 (703,344.00)

(10,069.01 ) (712,840.42)

(331,615.71 )

6,774,797.96

6,774,797.96

6,443,182.25

6,443,182.25

(117,556.73) (3,286.99)

(120,843.72)

6,322,338.53 .

II. NOTES TO THE FINANCIAL STATEMENTS

UNAUDITED

TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY (457)

NOTES TO THE FINANCIAL STATEMENTS

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

A. ENTITY

The Texas State Board of Public Accountancy operates under the authority of the Public Accountancy Act, Chapter 901 of the Occupations Code (Vernon's 2007, as of September 1, 2007). The Board has the responsibility and authority to regulate the public practice of accounting in Texas. Its major functions include Licensing and Continuing Professioqal Education, Qualifications (Examination), Enforcement, Peer Review, Public Education and Sponsor Review. (For more detailed information about the Board and its functions, refer to Section IV of this report.)

The financial records of the Board comply with state statutes and regulations. This includes compliance with the Reporting Requirements for Annual Financial Reports of State Agencies, issued by the Texas Comptroller of Public Accounts.

Due to the statewide requirements embedded in Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements-and Management's Discussion and Analysisfor State and Local Governments, the Comptroller of Public Accounts does not require the accompanying annual financial report to comply with all the requirements in this statement. The financial report will be considered for audit by the State Auditor as part of the audit of the State of Texas Comprehensive Annual Financial Report; therefore, an opinion has not been expressed on the financial statements and related information contained in this report.

B. FUND STRUCTURE

The accompanying financial statements are presented on the basis of funds, each of which is considered a separate accounting entity.

GOVERNMENTAL FUND TYPES AND GOVERNMENT-WIDE ADJUSTMENT FUND TYPES

General Revenue Funds-Consolidated Senate Bill 3, 72nd Legislature, First Called Session, 1991, established a Funds Review Advisory Committee to submit a report to the Governor, the Legislature, and the Director of the Legislative Budget Board concerning the consolidation of funds into the General Revenue Fund to be effective August 31, 1993. Section 403.094(h), Government Code, 73rd Legislature, 1993, exempted 87 accounts from the loss of dedication on August 31, 1995. Subsequent legislative sessions have provided for additional exemptions to the loss of dedication for funds and accounts. Following are funds utilized by the Texas State Board of Public Accountancy with a description of the status in relation to funds consolidation.

Fund 0001, the General Revenue Fund, is used to account for all financial resources of the state except for those required to be accounted for in another fund.

General Revenue Account - Dedicated 0106, the Scholarship Fund for Fifth-Year Accounting Students, was established effective September 1, 1991, by the 72nd Legislature to fund scholarships for fifth-year accounting students. Section 901.155, Occupations Code, provides for an increase of $20 for each biennial license fee collected under Section 901.154, Occupations Code. Fees collected under this section are deposited to the credit of the scholarship fund for fifth-year accounting students. The fund may be used only by the Texas Higher Education Coordinating Board for providing scholarships to accounting students in the fifth year of a program

PAGE 3

UNAUDITED


that would qualify the recipient to apply to become a certified public accountant, as provided by Subchapter N, Chapter 61, Education Code, and by the Texas Higher Education Coordinating Board and the Texas State Board of Public Accountancy for paying associated administrative costs.

With passage of House Bill 2440 during the 2009 legislative session, responsibility for administering the fifth-year accounting students scholarship fund was transferred from the Texas Higher Education Coordinating Board (THECB) to the Texas State Board of Public Accountancy. ,Authority for the transfer went into effect on September 1. The Board worked closely with THECB to put rules and procedures in place and assumed full responsibility on January 1, 2010. The Board also tripled the amount of funds available for at least the next two school years, making possible larger grants to a larger number of students. Funds derived from a $10 (legislatively mandated) fee added to each Texas CPA's annual license renewal.

General Fund Senate Bill 1438 (1999) was passed and signed into law in 1999, now codified as Article 8930, V. T.C.S., the Self-Directed Semi-Independent Agency Project Act. Senate Bill 736, 77th Legislature, Regular Session, (2001), resolved conflicts with other laws and the agency became a self-directed, semi-independent agency effective September 1, 2001. The Board and two similar agencies are the focus of this pilot program. The Texas State Board of Public Accountancy operates under Fund 0858, Board of Public Accountancy Operating Trust Fund. For the fiscal year ending August 31, 2009, the Comptroller of Public Accounts staff advised this agency to report this fund as a General Fund departing from the past practice of reporting this fund as a Special Revenue Fund.

General funds are used to account for all financial resources except those accounted for in other funds.

Capital Asset Adjustment Fund Type Capital Asset Adjustment fund type will be used to convert governmental fund types' capital assets from modified accrual to full accrual.

Long-Term Liabilities Adjustment Fund Type Long-Term Liabilities Adjustment fund type will be used to convert governmental fund types' debt from modified accrual to full accrual.

FIDUCIARY FUND TYPES

Agency Funds Agency funds are used to account for assets the government holds on behalf of others in a purely custodial capacity. Agency funds involve only the receipt, temporary investment, and remittance of fiduciary resources to individuals, private organizations, or other governments. House Bill 11, 72nd Legislature, First Called Session, 1991, imposed an additional annual fee of $200 on all licensed CPAs. The Board acts as the collection agency for this fee, which is deposited into the General Revenue Fund (Fund 0001).

The implementation of GASB 34 requires agencies to transfer balances in agency funds - Fund Type 09 (Fiduciary Funds) to Fund Type 01 (General Funds).

PROPRIETARY FUND TYPES

No proprietary fund types have been identified.

PAGE 4

UNAUDITED


COMPONENT UNITS

No component units have been identified for this agency.

BASIS OF ACCOUNTING

The basis of accounting determines when revenues and expenditures or expenses are . recognized in the accounts reported in the financial statements. The accounting and financial reporting treatment applied to a fund is determined by its measurement focus.

Governmental fund types that build the fund financial statements are accounted for using the modified accrual method basis of accounting. Under the modified accrual basis, revenues are recognized in the period in which they become both measurable and available to finance operations of the fiscal year or liquidate liabilities existing at fiscal year end. The State of Texas considers receivables collected within sixty days after year-end to be available and recognizes them as revenues of the current year for fund financial statements prepared on the modified accrual basis. Expenditures and other uses of financial resources are recognized when the related liability is incurred.

Governmental adjustment fund types that will build the Government-wide Financial Statements are accounted for using the full accrual method of accounting. This includes capital assets, accumulated depreciation, unpaid Employee Compensable Leave, the unmatured debt service (principal and interest) on general long-term liabilities,long-term capital leases, and long-term claims and judgments and full accrual revenues and expenses. The activity will be recognized in these fund types.

C. BUDGETS AND BUDGETARY ACCOUNTING

Prior to September 1, 2001, the budget was prepared biennially and represented appropriations authorized by the Legislature and approved by the Governor (the General Appropriations Act). Encumbrance accounting was employed for budgetary control purposes. Unencumbered appropriations are generally subject to lapse 60 days after the end of the fiscal year for which they were appropriated.

Currently, under the Self-Directed Semi-Independent Project Act, an itemized budget covering operations for the year is prepared by the Board's staff and approved by the Board. During the year, the Board's financial activity is monitored against this budget.

D. ASSETS, LIABILITIES, AND FUND BALANCES/NET ASSETS

ASSETS

Investments Pursuant to the Funds Management Agreement with the Comptroller's Office, money held in the Texas Safekeeping Trust Fund accounts and sub accounts shall be fully invested at all times and reinvested by the Trust Company in authorized investments which include any investment described under Sections 404.024 and 404.106 of the Texas Government Code.

Accounts Receivable The Board may assess an administrative penalty against respondents involved in disciplinary proceedings in accordance with Section 901.551, Occupations Code. As of August 31,2010, $121,908.32 in penalties was outstanding and unpaid. Since the certainty and timing of these receipts is unknown, they are not included as part of Accounts Receivable on the Balance Sheet (Exhibit I). Rather, they are recorded as revenues when payments are received.

PAGE 5

UNAUDITED


Consumable Inventories Consumable inventories include supplies and postage on hand at year-end. Inventories for governmental funds are accounted for using the purchase method of accounting. The cost of these items is recognized as an expenditure at the time of purchase. These assets are offset by a fund balance reserve which indicates that they do not constitute "available spendable resources".

Capital Assets Assets with an initial, individual cost of more than $5,000 and an estimated useful life in excess of one year are capitalized. These assets are capitalized at cost or, if any purchased, at appraised fair value as of the date of acquisition. Purchases of assets by governmental funds are reported as expenditures. Depreciation is reported on all "exhaustible" assets. Assets are depreciated over the estimated useful life of the asset using the straight-line method.

LIABILITIES

Accounts Payable Accounts Payable represents the liability for the value of assets or services received at the balance sheet date for which payment is pending.

Deferred Revenue Resource inflows of an accounting period that will not be earned until a subsequent period must be reported as deferred revenue on the balance sheet and must not be reported as revenue until earned.

Unearned amounts are reported as deferred revenue. In governmental funds, earned amounts also are reported as deferred revenue until they are available to liquidate liabilities of the current period.

Employees' Compensable Leave Employees' compensable leave balances represent the liability that the agency will be required to liquidate in the future for employees' annual leave, compensatory time and overtime. (See Note 5.)

FUND BALANCE/NET ASSETS

The difference between fund assets and liabilities is 'Net Assets' on the government-wide, proprietary and fiduciary fund statements, and the 'Fund Balance' is the difference between fund assets and liabilities on the governmental fund statements.

Reservations of Fund Balance Reservations of fund balance represent fund balances of governmental fund types, which are legally restricted to a specific future use.

Reserved for Encumbrances This represents commitments of the value of contracts awarded or assets ordered prior to year-end but not received as of that date. Encumbrances are not included with expenditures or liabilities. They represent current resources designated for specific expenditures in subsequent operating periods.

Reserved for Consumable Inventories This represents the amount of supplies and postage on hand at year-end to be used in the next fiscal year.

PAGE 6

UNAUDITED


Un reserved/Desig nated Represents fund balance that is designated for a specific function or project. General Revenue Funds primarily fall under this category. The Board adopted a formal policy on May 18, 2006, and revised this policy on July 19, 2007 to be effective September 1, 2007, to establish the appropriate level of the agency's unreserved/designated fund balance to meet anticipated obligations for the following:

General Operating funds Enforcement funds Capital OutlaylDepreciation

Total Fund Balance Reserve

$ 900,000 500,000 100,000

$1.500,000

Included in this formal policy is an annual review of the unreserved/designated fund balance.

Un reserved/U ndesig nated Represents the unappropriated balance at year-end.

E. REVENUES AND EXPENDITURES

Licenses, Fees, and Permits includes the license, examination, and other fees collected by the Board.

Professional Fees and Services includes fees for the enforcement of major cases, computer programming services, and fees for financial and accounting services associated with disciplinary proceedings.

Public Assistance Payments In accordance with the Health & Safety Code, Chapter 467, Peer Assistance Programs, this category includes a grant to the Texas Society of Certified Public Accountants to support the Accountants Confidential Assistance Network (ACAN), a peer assistance program for CPAs, candidates, and accounting students.

Other Expenditures includes payment for the Statewide Cost Allocation Plan and for workers' compensation and risk management services.

F. INTERFUND ACTIVITIES AND BALANCES

TRANSFERS

Operating transfers represent routine transfers of resources. Operating transfers are reported in the Other Financing Sources (Uses) section of Exhibits II, and A-2.

Fund 0001

Transfers In - None

Transfers Out - None

Fund 0106

Transfers Out - None

Fund 0858

Transfers Out - includes $703,344.00 annual payment to General Revenue (Agency 902, Fund 0001) pursuant to Article 8930, Section 6(c).

PAGE 7

UNAUDITED


NOTE 2: CAPITAL ASSETS

A summary of changes in Capital Assets for the year ended August 31,2010 is presented below:

Governmental Activities:

Depreciable Assets:

Furniture and Equipment Vehicles, Boats & Aircraft

Total Depreciable Assets at historical costs:

Less accumulated depreciation for:

Furniture and Equipment Vehicle, Boats & Aircraft

Total accumulated depreciation

Depreciable assets, Net

Governmental Activities Capital Assets, Net

Business Type Activities:

PRIMARY GOVERNMENT Reclassifications

Inc- Dec-Balance Completed Int'agy Int'agy 9/1/2009 Adjustments CIP Trans Trans Additions* Deletions

$395,529.43 24,946.22 (66,941.00)

16,348.14 0.00 0.00

411,877.57 24,946.22 (66,941.00)

(187,855.47) (3,286.99) (57,696.36) 56,871.99

16,348.14) 0.00 0.00

(204,203.61 ) (3,286.99) (57,696.36) 56,871.99

207,673.96 (3,286.99) (32,750.14) (10,069.01 )

$20767396 $(328699) $(32750 14) ($1006901)

* The additions column represents current year purchases and depreciation.

Not applicable.

PAGE 8

Balance 8/31/2010

353,534.65

$16.348.14

$369,882.79

($191,966.83)

($16,348.14)

($208,314.97)

161,567.82

$161 56782

UNAUDITED


NOTE 3: DEPOSITS, INVESTMENTS, & REPURCHASE AGREEMENTS

Pursuant to the Funds Management Agreement with the Comptroller's Office, money held in the Texas Safekeeping Trust Fund accounts, and sub accounts shall be fully invested at all times and reinvested by the Trust Company in authorized investments which include any investment described under Sections 404.024 and 404.106 of the Texas Government Code.

A. DEPOSITS OF CASH IN BANK

As of August 31, 2010, the carrying amount of deposits was $68,941.29 as presented below:

Governmental and Business-Type Activities CASH IN BANK - CARRYING VALUE

Texas Treasury Safekeeping Trust Company

Cash in Bank per AFR

Governmental Funds Current Assets Cash In Bank GAAP Fund 1000, 023 Fund 1002 Exhibit A-1 GAAP Fund 0106,023 Fund 0106 Exhibit A-1 GAAP Fund 0858, 023 Fund 0858 Exhibit A-1 Cash in Bank per AFR

B. INVESTMENTS

$68,941.29

$68,941.29

$ 42,500.00 $ 2,120.00 $ 24,321.29 $ 68.941.29

As of August 31, 2010, the carrying value and fair value of investments are as presented below.

Governmental and Business-Type Activities Repurchase Agreements

Texas Treasury Safekeeping Trust Company

Total

Governmental Funds Current Assets Short -Term Investments GAAP Fund 1000, 023 Fund 1002 Exhibit A-1 GAAP Fund 0106, 023 Fund 0106 Exhibit A-1 GAAP Fund 0858, 023 Fund 0858 Exhibit A-1 Short -Term Investments per AFR

NOTE 4: SHORT - TERM DEBT

Not applicable.

PAGE 9

Carrying Value

$919,888.90

$919,888.90

Fair Value

$919,888.90

$919,888.90

$ 369,103.19 $ 16,072.52 $ 534,713.19

$ 919888.90

UNAUDITED


NOTE 5: LONG-TERM LIABILITIES

CHANGES IN LONG-TERM LIABILITIES

During the year ended August 31, 2010, the following changes occurred in long-term liabilities.

GOVERNMENTAL BALANCE BALANCE AMOUNTS ACTIVITIES 9/1/2009 ADDITIONS* REDUCTIONS 8/31/2010 DUE

WITHIN ONE YEAR

Notes and Loans N/A N/A N/A N/A N/A Payable General Obligation B/P N/A N/A N/A N/A N/A

Revenue Bonds Payable N/A N/A N/A N/A N/A

Claims and Judgments N/A N/A N/A N/A N/A

Capital Lease N/A N/A N/A N/A N/A Obligations Compensable Leave

$325,230.69 $232,654.25 $224,165.92 $333,718.99 $167,200.99 TOTAL GOVERNMENTAL ACTIVITIES $325,230.69 $232,654.25 $224,165.92 $333,718.99 $167,200.99

• The additions column includes salary adjustments at 9/1/09.

NOTES AND LOANS PAYABLE

Not applicable.

CLAIMS AND JUDGMENTS

Not applicable.

EMPLOYEES'COMPENSABLELEAVE

A state employee is entitled to be paid for all unused vacation time accrued in the event of their reSignation, dismissal, or separation from state employment, provided the employee has had continuous employment with the State for six months. The Board must either grant employees subject to the Fair Labor Standards Act (FLSA) time off at a rate of 1-1/2 hours for each hour of overtime worked during the twelve-month period following the date on which the overtime was accrued, or, at the discretion of the Board, pay them at a rate of 1-1/2 times the regular rate of pay.

Executive, administrative, and professional employees are expressly limited to compensatory time off, as determined by the Board, at an equivalent time rate. Expenditures for accumulated annual and compensatory leave are recognized as expenditures in the period paid or taken in governmental fund types. For these fund types, the liability for unpaid benefits is recorded in the Statement of Net Assets.

The following is a summary of changes in annual and compensatory balances for the year ended August 31, 2010, which reflects employee's accrued rights to future compensated absences. Changes and balances are stated in terms of hours.

Compensable Leave Hours (09/01/09) Additions Deductions Compensable Leave Hours (08/31/10)

PAGE 10

Annual Leave

10,397.98 6,568.30

(7,106.38) 9.859.90

FLSA & State Comp-time 478.00

1,236.00 (1,116.18)

597.82

Totals 10,875.98 7,804.30

(8,222.56) 10.457.72

UNAUDITED


NOTE: FLSA hours accumulated are 1 1/2 times hours worked. The Board's monetary liabilities for compensable future absences as of August 31,2010, as computed by USPS Report 574 (Compensable Leave Report for Fiscal Year 2010), were as follows:

Annual Leave FLSA & State Compensable time

NOTES: BONDED INDEBTEDNESS

Not applicable.

NOTE 7: CAPITAL LEASES

Not applicable.

NOTE 8: OPERATING LEASES

General Long-term Debt Account Group

$312,501.27 21.217.72

$333718.99 (Exhibit I)

Included in the expenditures reported in the financial statements are the following amounts of lease payments made or due under operating lease obligations for copier/reproduction equipment:

Fund Type General Fund

Amount $19,252.44

Future minimum lease payments under non-cancelable operating leases having an initial term in excess of one year are as follows:

Year End Aug. 31, 2011 (Future Year 1) 2012 (Future Year 2) 2013 (Future Year 3) 2014 (Future Year 4)

Total Minimum Future Lease Payments

NOTE 9: RETIREMENT PLANS

$ 20,100.00 20,100.00 20,100.00 20,100.00

$ 80.400.00

The State has joint contributory retirement plans for substantially all its employees. The Board participates in the plans administered by the Employees Retirement System of Texas. Future pension costs are the liabilities of the Retirement System. The System does not account for each state agency separately. Annual financial reports prepared by the System include audited financial statements and actuarial assumptions and conclusions.

NOTE 10: DEFERRED COMPENSATION

Two plans are available for employees' deferred compensation plan. Both plans are administered by the Employees Retirement System.

The state's 457 plan complies with the Internal Revenue Code, Section 457. GASB Statement No. 32, effective for financial statements for periods beginning after December 31, 1998, rescinds GASB

PAGE 11

UNAUDITED


Statement No.2 and amends GASB Statement No. 31. GASB Statement No.2, Financial Reporting of Deferred Compensation Plans Adopted under the Provisions of Inte'rnal Revenue Code Section 457, established reporting requirements for IRC Section 457 plans.

The state also administers another plan, "TexSaver" which was created in accordance with Internal Revenue Code Section 401 (k). However, the assets of this plan do not belong to the state nor does the state have a liability related to this plan.

NOTE 11: POSTEMPLOYMENT HEALTH CARE AND LIFE INSURANCE BENEFITS

Not applicable.

NOTE 12: INTERFUND BALANCES/ACTIVITIES

This information is reported on the USAS and Interagency Transaction Certification Form filed with the Comptroller's Office (see Note 1 F for transfer activity).

Interfund Receivable/Payable activity at August 31, 2010, follows:

• .

Due From Other Due To Other Due From/Due To Other Agencies Agencies AgenCies Source

GENERAL (01)

Agency 781, Appd Fund 0106, D23 Fund 0106 $1,484,554.96 A

Agency 902, GMP Fund 0001 $509,303.19 B

Total Due FromlTo Other Agencies (EXH.I) .. $1993,858.15

A Scholarship Fund for Fifth-Year Accounting Students, Cash in State Treasury and Due To reported by Texas State Board of Public Accountancy and Due From (receivable) reported by Higher Education Coordinating Board (Agency 781).

B Professional Fees collected and held by agency at year-end as either Cash on Hand or Short -Term Investments. Due To reported by this agency, and Due From reported by Comptroller's Office (Agency 902).

NOTE 13: CONTINUANCE SUBJECT TO REVIEW

The Texas Sunset Act requires that all state agencies be reviewed every 12 years to determine whether they provide essential services to the citizens of Texas and should continue operations. In 2003, the Texas State Board of Public Accountancy was continued as a separate agency of Texas State government.

Under the Texas Sunset Act, the Board will be abolished effective September 1, 2015, unless legislatively continued. If abolished, the Board may continue until September 1,2016 to close out its operations. This information may be verified with the Sunset Review Commission at (512) 463-1300.

PAGE 12

UNAUDITED


NOTE 14: ADJUSTMENTS TO FUND BALANCES AND NET ASSETS

Under the direction of the Comptroller's office, the Texas State Board of Public Accountancy added the value of two capital asset software items to existing furniture and equipment. As a result, depreciation for furniture and equipment recalculated in SPA for those prior year items. The restatement of depreciation is shown below:

" Accumulated Depreciation .. Furniture&'EQuipmeht'

D23 Fund 0099 Depreciation Balance at 8/31/09 (187,855.47)

Restatement (3,286.99) D23 Fund 0099 Depreciation Fund Balance at 9/01/10 as (191,142.46) Restated

NOTE 15: CONTINGENT LIABILITIES

Sick leave, the accumulation of which is unlimited, is earned at the rate of 8 hours per month, and is taken only in the event of illness or paid to the estate of an employee in the event of their death. The maximum sick leave that may be paid to an employee's estate is one-half of the employee's accumulated entitlement or 336 hours, whichever is less. Such payments are recognized as expenditures of governmental funds when paid. The contingent liability for future compensation of sick leave, based on accumulated sick leave balances as of August 31, 2010, was not considered material in relation to the Board's total financial position.

NOTE 16: SUBSEQUENT EVENTS

Not applicable.

NOTE 17: RISK MANAGEMENT

Not applicable.

NOTE 18: MANAGEMENT DISCUSSION AND ANALYSIS (MD&A)

Senate Bill 1438 was passed and signed into law in 1999, now codified as Article 8930, V.T,C.S., the Self-Directed Semi-Independent Project Act. Senate Bill 736, 77th Legislature, Regular Session (2001), resolved conflicts with other laws and the agency became self-directed, semi-independent, effective September 1, 2001 (FY 2002). The Board and two similar agencies are the focus of this pilot program to test the concept of de-regulating regulatory agencies in order to enhance their efficiency. Some of the basic points of the project are:

• Reinvent government. Under this plan, regulatory agencies would be accountable to their stakeholders and charged with operating as a business.

• The Governor continues to appoint Board members and to designate the Board's presiding officer.

• The regulatory agency establishes the fees charged to cover all costs of its operations.

• Licensees (clients) continue to pay the costs of regulation. • Sovereign immunity remains intact for enforcement and disciplinary functions.

PAGE 13

UNAUDITED


• An agency under the program remains subject to the Open Meetings Act and the Public Information Act.

• Regulatory agencies in the project are removed from the cost of state government (appropriations) .

• Applicable agencies continue to collect and remit the $200 annual professional fee for the General Revenue Fund.

• Agencies continue to be audited by the Office of the State Auditor and pay the associated costs.

• Oversight agencies such as the Legislative Budget Board and the Governor's Office of Budget and Planning are relieved of budget oversight responsibilities and associated costs.

• Licensees (clients) become directly involved in evaluating the cost of operating the agency.

• The state budget size is reduced. • The number of state employees on the state payroll is reduced.

HB 3249, 80th Legislature (2007), allows the Board and the two other agencies in the pilot project to continue operating as self-directed, semi-independent agencies until September 1, 2013.

NOTE 19: THE FINANCIAL REPORTING ENTITY

No component units have been identified for this agency.

NOTE 20: STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY

Not applicable.

NOTE 21: N/A

Note 21 is not applicable to the AFR reporting requirements process.

NOTE 22: DONOR-RESTRICTED ENDOWMENTS

Not applicable.

NOTE 23: EXTRAORDINARY AND SPECIAL ITEMS

Not applicable.

NOTE 24: DISAGGREGATION OF RECEIVABLE AND PAYABLE BALANCES

A. TAXES RECEIVABLE

Not applicable.

B. FEDERAL RECEIVABLE

Not applicable.

C. TAX REFUNDS PAYABLE

Not applicable.

D. OTHER RECEIVABLES - NON-CURRENT

Not applicable.

PAGE 14

UNAUDITED


E. OTHER PAYABLES - CURRENT

Not applicable.

NOTE 25: TERMINATION BENEFITS

A. VOLUNTARY TERMINATIONS

Not applicable.

B. INVOLUNTARY TERMINATIONS

Not applicable.

NOTE 26: SEGMENT INFORMATION

Not applicable.

PAGE 15

UNAUDITED


PAGE 16

III. COMBINING STATEMENTS

UNAUDITED

Texas State Board of Public Accountancy (457) Exhibit A-1 - Combining Balance Sheet - All General and Consolidated Funds August 31,2010

General Acct. - Dedicated

(1000) (0106) (0858) (0858) Total UlF(1002) UlF(0106) U/F (0858) U/F (8858) (EXH I)


Cash and Cash Equivalents: Cash on Hand $ 97,700.00 $ 4,751.67 $ 53,269.00 $ 155,720.67 Cash in Bank (Note 3) 42,500.00 2,120.00 24,321.29 68,941.29 Cash in State Treasury 2,655,416.53 4,098,655.88 1,014,879.35 7,768,951.76

Short Term Investments (Note 3) 369,103.19 16,072.52 534,713.19 919,888.90 Consumable Inventories 71,485.11 71,485.11 Due From Other Agencies (Note 12)

Total Current Assets 509,303.19 2,678,360.72 4,782,444.47 1,014,879.35 8,984,987.73

Non-Current Assets: Restricted:

Cash and Cash Equivalents: Other Non-Current Assets

Total Non-Current Assets Total Assets $ 509,303.19 $ 2,678,360.72 $ 4,782,444.47 $ 1,014,879.35 $ 8,984,987.73

LIABILITIES AND FUND BALANCES Liabilities:

Current Liabilities: Payables From:

Vouchers Payable 202,293.89 202,293.89 Accounts Payable 33,503.73 33,503.73 Payroll Payable 260,842.26 260,842.26

Due To Other Agencies (Note 12) 509,303.19 1,484,554.96 1,993,858.15 Total Current Liabilities 509,303.19 1,484,554.96 496,639.88 2,490,498.03

Non-Current Liabilities: Total Non-Current Liabilities

Total Liabilities 509,303.19 1,484,554.96 496,639.88 2,490,498.03

FUND FINANCIAL STATEMENT - FUND BALANCES Fund Balances (Deficits):

Reserved for: Encumbrances 12,551.17 12,551.17 Inventories 71,485.11 71,485.11

Undesignated: Board Policy Reserve (See Note 1.0) 1,500,000.00 1,500,000.00 Other 1,193,805.76 2,701,768.31 1,014,879.35 4,910,453.42

Total Fund Balances 1,193,805.76 4,285,804.59 1,014,879.35 6,494,489.70 Total Liabilities and Fund Balances $ 509,303.19 $ 2,678,360.72 $ 4,782,444.47 $ 1,014,879.35 $ 8,984,987.73


PAGE 17

UNAUDITED

Texas State Board of Public Accountancy (457) Exhibit A-2 - Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - All General and Consolidated Funds F or the Fiscal Year Ended August 31, 2010

General Ace!. - Dedicated

(0106) (0858) (0858) Total u/F (0106) U/F (0858) U/F (8858) (EXH II)

REVENUES Licenses, Fees & Permits 630,709.14 4,564,240.83 5,194,949.97 Interest and Investment Income 922.35 73,451.23 74,373.58 Sales of Goods and Services Other 10.00 54,523.93 54,533.93

Total Revenues 630,719.14 4,619,687.11 73,451.23 5,323,857.48

EXPENDITURES Salaries and Wages 2,341,067.29 2,341,067.29 Payroll Related Costs 559,624.00 559,624.00 Professional Fees and Services 658,048.69 658,048.69 Travel 65,829.39 65,829.39 Materials and Supplies 329,862.76 329,862.76 Communication and Utilities 28,423,71 28,423.71

Repairs and Maintenance 34,608.43 34,608.43

Rentals and Leases 165,692.26 165,692.26

Printing and Reproduction 164,758,75 164,758.75

Claims and Judgments Public Assistance Payments 90,000.00 90,000,00

Other Expenditures 438,532.83 438,532.83

Capital Outlay 24,946.22 24,946.22

Depreciation Expense Total Expenditures/Expenses 4,901,394.33 4,901,394.33

Excess (Deficiency) of Revenues Over Expenditures 630,719,14 (281,707.22) 73,451.23 422,463.15

OTHER FINANCING SOURCES (USES) Sale of Capital Assets 572.59 572.59

Transfers Out (Note 1,F.) (703,344,00) (703,344.00)

Total Other Financing Sources and Uses (702,771.41) (702,771.41 )

SPECIAL ITEMS

EXTRAORDINARY ITEMS

Net Change in Fund Balances/Net Assets 630,719.14 (984,478.63) 73,451.23 (280,308.26)

FUND FINANCIAL STATEMENT - FUND BALANCES Fund Balances, Beginning 563,086.62 5,270,283,22 941,428,12 6,774,797.96

Adjustment to Fund Balances (Restatement) Note 14 Fund Balances, September 1, 2009 563,086.62 5,270,283.22 941,428.12 6,774,797.96

Fund Balances, August 31, 2010 $ 1,193,805.76 $ 4,285,804.59 $ 1,014,879.35 $ 6,494,489.70


PAGE 18

UNAUDITED

Texas State Board of Public Accountancy (457) Exhibit J·1 . Combining Statement of Changes in Assets and Liabilities· Agency Funds August31,2010

Beginning Ending Balance Balance

Se~tember 1, 2009 Additions UNAPPROPRIATED RECEIPTS

Deductions August 31,2010

General Revenue Fund {1000l U1F {0002l ASSETS

Current Cash on Hand $ $ $ $ Cash in State Treasury 12,193,380.86 12,193,380.86 Short Term Investments Interfund Receivable

Total Assets $ $ 12,193,380.86 $ 12,193,380.86 $

LIABILITIES Current

Payables $ $ 8,760.00 $ 8,760.00 $ Funds Held for Others 12,193,380.86 12,193,380.86

Total Liabilities $ $ 12,202,140.86 $ 12,202,140.86 $

Texasaver Hold·Transmit 401 K {0942l U/F {0942l ASSETS

Current Cash on Hand $ $ $ $ Cash in State Treasury 128,658.45 128,658.45 Accounts Receivable, net 128,658.45 128,658.45

Total Assets $ $ 257,316.90 $ 257,316.90 $

LIABILITIES Current

Payables $ $ $ $ Funds Held for Others 128,658.45 128,658.45

Total Liabilities $ $ 128,658.45 $ 128,658.45 $

TOTALS· ALL AGENCY FUNDS

ASSETS Current

Cash on Hand $ $ $ $ Cash in State Treasury 12,322,039.31 12,322,039.31 Short Term Investments Accounts Receivable, net 128,658.45 128,658.45 Interfund Receivable

Total Assets $ $ 12,450,697.76 $ 12,450,697.76 $

LIABILITIES Current

Payables $ $ 8,760.00 $ 8,760.00 Funds Held for Others 12,322,039.31 12,322,039.31

Total Liabilities $ $ 12,330,799.31 $ 12,330,799.31 $


PAGE 19

UNAUDITED

Texas State Board of Public Accountancy (457) Schedule 4 " Schedule of Modified to Full Accrual Adjustments" Governmental Funds " Balance Sheet/Statement of Net Assets

August 31,2010

Long-Term Governmental Capital Assets Liabilities Statement of Net

Funds Total Adjustments Adjustments Assets


Cash On Hand $ 155,720.67 $ $ $ 155,720.67 In Bank (Note 3) 68,941.29 68,941.29 In State Treasury 7,768,951.76 7,768,951.76

Short Term Investments (Note 3) 919,888.90 919,888.90 Due From Other Agencies (Note 12) Consumable Inventories 71,485.11 71,485.11

Total Current Assets $ 8,984,987.73 $ $ $ 8,984,987.73

Non-Current Assets: Interfund Receivables Capital Assets (Note 2):

Depreciable: Furniture and Equipment 353,534.65 353,534.65


Vehicle, Boats and Aircraft 16,348.14 16,348.14 Less Accumulated Depreciation (16,348.14 ) (16,348.14)

Total Non-Current Assets $ $ 161,567.82 $ $ 161,567.82

Total Assets $ 8,984,987.73 $ 161,567.82 $ $ 9,146,555.55

LIABILITIES AND FUND BALANCES Liabilities

Current Liabilities: Payables From

Vouchers 202,293.89 202,293.89

Accounts 33,503.73 33,503.73

Payroll 260,842.26 260,842.26

Due To Other Agencies (Note 12) 1,993,858.15 1,993,858.15

Employees' Compensable Leave (Note 5) 167,200.99 167,200.99

Total Current Liabilities $ 2,490,498.03 $ $ 167,200.99 $ 2,657,699.02

Non-Current Liabilities Employees' Compensable Leave (Note 5) 166,518.00 166,518.00

Total Non-Current Liabilities $ $ $ 166,518.00 $ 166,518.00

Total Liabilities $ 2,490,498.03 $ $ 333,718.99 $ 2,824,217.02

Fund Financial Statement Fund Balances (Deficits):

Reserved for Encumbrances 12,551.17 12,551.17

Inventories 71.485.11 71,485.11

Unreserved/Undesignated for: Board Policy Reserve (See Note 1.0) $ 1,500,000.00 1,500,000.00

Other 4,910,453.42 4,910,453.42

Total Fund Balances 6,494,489.70 6,494,489.70

Total Liabilities and Fund Balances $ 8,984,987.73

Government-Wide Statement of Net Assets Net Assets

Invested in Capital Assets, net of Related Debt 161,567.82 161,567.82

Unrestricted (333,718.99) (333,718.99)

Total Net Assets $ 161,567.82 $ (333,718.99) $ 6,322,338.53

The accompanying notes to the financial statements are an integral part of this financial statement.

PAGE 20

UNAUDITED

Texas State Board of Public Accountancy (457) Schedule 4 - Schedule of Modified to Full Accrual Adjustments - Governmental Funds - Statement of Revenues, Expenditures, and Changes in Fund Balances/Statement of Activities For the Fiscal Year Ended August 31,2010

Long-Term Governmental Capital Assets Liabilities Statement of Funds Total Adjustments Adjustments Activities

REVENUES License, Fees & Permits $ 5,194,949.97 $ 5,194,949.97 Interest and Other Investment Income 74,373.58 74,373.58 Sales of Goods and Services Other 54,533.93 54,533.93

Total Revenues $ 5,323,857.48 $ $ 5,323,857.48

EXPENDITURES Salaries and Wages 2,341,067.29 8,488.30 2,349,555.59 Payroll Related Costs 559,624.00 559,624.00 Professional Fees and Services 658,048.69 658,048.69 Travel 65,829.39 65,829.39 Materials and Supplies 329,862.76 329,862.76 Communication and Utilities 28,423.71 28,423.71 Repairs and Maintenance 34,608.43 34,608.43 Rentals and Leases 165,692.26 165,692.26 Printing and Reproduction 164,758.75 164,758.75 Claims and Judgments Public Assistance Payments 90,000.00 90,000.00 Other Expenditures 438,532.83 438,532.83 Capital Outlay 24,946.22 (24,946.22) Depreciation Expense 57,696.36 57,696.36

Total Expenditures/Expenses $ 4,901,394.33 $ 32,750.14 $ 8,488.30 $ 4,942,632.77

Excess (DefiCiency) of Revenues over Expenditures ~ 422,463.15 $ (32,750.14) $ (8,488.30) $ 381,224.71

OTHER FINANCING SOURCES (USES) Sale of Capital Assets $ 572.59 572.59 Transfers Out (Note 1.F.) (703,344.00) (703,344.00) Gain (Loss) on Sale of Capital Assets (10,069.01) (10,069.01)

Total Other Financing Sources (Uses) $ (702,771.41) (10,069.01) $ (712,840.42)

SPECIAL ITEMS

EXTRAORDINARY ITEMS

Net Change in Fund Balances/Net Assets $ (280,308.26) $ (331,615.71)

Fund Financial Statement - Fund Balances Fund Balances, Beginning $ 6,774,797.96 $ 6,774,797.96

Adjustment to Fund Balances (Restatement) Note 14 Fund Balances, September 1, 2009, As Adjusted $ 6,774,797.96 $ 6,774,797.96

Fund Balances, August 31, 2010 $ 6,494,489.70 $ 6,443,182.25

Government-Wide Statement of Net Assets

Net Assets/Net Change in Net Assets $ 6,494,489.70 (42,819.15) (8,488.30) $ 6,443,182.25

Net Assets, Beginning 207,673.96 (325,230.69) (117,556.73) Restatements (3,286.99) (3,286.99) Net Assets, September 1, 2009, as Restated 204,386.97 (325,230.69) (120,843.72)

Net Assets as of August 31, 2010 $ 161,567.82 $ (333,718.99) $ 6,322,338.53

The accompanying notes to the financial statements are an integral part of this financial statement.

PAGE 21

UNAUDITED


PAGE 22

IV. ADDENDA

UNAUDITED


ADDENDA

ORGANIZATION OF THE BOARD

The Texas State Board of Public Accountancy operates under the authority of the Public Accountancy Act, Chapter 901 of the Occupations Code (Vernon's 2007). The Act provides for fifteen Board members appointed by the Governor, with the advice and consent of the Senate, for six-year overlapping terms. Appointments expire on January 31 of odd-numbered years. Board members are required to be citizens of the United States and residents of Texas.

The Act provides that ten members shall be Certified Public Accountants, at least eight of whom shall be sole practitioners or owners or employees of firms engaged in public practice on the date of their appointment to the Board. Five members shall be public member representatives who are not Certified Public Accountants and who are not financially involved in an organization subject to Board regulation.

Members of the Board may receive $30 per diem for each day on which the member conducts Board business. The Board, by rule, may determine activities that constitute Board business. In addition, members are reimbursed for actual and necessary expenses incurred in discharging their official duties. (NOTE: Meals and lodging expenses are reimbursable up to the maximum amounts per day as determined by the General Services Administration's (GSA) federal travel rates for both in-state and out-of-state travel).

Members of the Board as of August 31,2010, were: TERM

EXPIRES NAME RESIDENCE JANUARY 31,

Gregory L. Bailes, CPA, Presiding Officer Bee Cave 2011

Dorothy M. Fowler, CPA, Assistant Presiding Officer Corpus Christi 2011

James C. Flagg, PhD, CPA, Secretary Brenham 2015

A. Carlos Barrera, CPA, Treasurer Brownsville 2013

David L. King, CPA, Executive Committee Member Lago Vista 2013

John W. (Jay) Dunbar, CPA EI Paso 2011

Everett R. Ferguson, CPA Abilene 2015

Jon R. Keeney Taylor Lake Village 2015

Evelyn M. Martinez, Esq. San Antonio 2013

Maribess L. Miller, CPA Dallas 2015

Steve D. Pena, CPA Georgetown 2013

James W. Pollard Canadian 2011

Thomas G. Prothro, CPA Tyler 2015

Catherine J. Rodewald Dallas 2011

John W. Steinberg Marion 2013

PAGE 23

UNAUDITED


FUNCTIONS OF THE BOARD

The Texas State Board of Public Accountancy has the responsibility and authority to regulate the practice of public accountancy in Texas. This is accomplished through the following means:

LICENSING AND QUALIFICATIONS

Evaluation - Under Section 901.302 of the Public Accountancy Act, the Board evaluates the education and moral character of individuals who desire to take the Uniform CPA Examination. The evaluation is completed throughout the year, and applicants are informed of education deficiencies that need to be completed before applying to take the examination.

Qualifications - The Board, in conjunction with the American Institute of Certified Public Accountants (AICPA), the National Association of State Boards of Accountancy (NASBA) and Prometric, offers the Uniform CPA Examination on a year-round basis at various testing centers throughout the state. Only applicants who were determined by the Board as eligible to test may schedule and take the CPA examination. Eligibility is reassessed with each application submitted to the Board.

Certification - The Board certifies: • Applicants who have passed all sections of the Uniform CPA Examination in Texas and

have met all other statutory requirements under Section 901.252 of the Public Accountancy Act for the CPA certificate in Texas;

• Applicants who have passed all sections of the Uniform CPA Examination in another jurisdiction and transferred those sections to Texas under Section 901.258 of the Public Accountancy Act and have met all other statutory requirements under Section 901.252 of the Public Accountancy Act for the CPA certificate in Texas; and

• Individuals licensed as certified public accountants in other jurisdictions who wish to practice public accountancy in Texas and receive a Texas CPA certificate under Section 901.259 of the Public Accountancy Act (Certification Based On Reciprocity).

Registration - The Board requires registration of the following entities: • professional corporations, partnerships, limited liability companies, limited liability

partnerships, and sole proprietorships engaged in the practice of public accountancy; and

• individuals qualifying under Section 901.355 of the Public Accountancy Act.

Licensure - The following entities must be licensed by the Board in order to lawfully practice public accountancy in Texas: • certified public accountants; • public accountants; • individuals registered under Section 901.355 of the Public Accountancy Act; and • offices: professional corporations, partnerships, professional limited liability companies

(PLLC), registered professional limited liability partnerships (PLLP), and sole proprietorships engaged in the practice of public accountancy.

Continuing Professional Education - CPAs are required to comply with the Board's program of mandatory continuing professional education.

Sponsor Review Program - The sponsor review program is charged with ensuring that CPE sponsors are in compliance with the Board's requirements. The program will monitor Board registered CPE sponsors and their courses with the goal of emphasizing high quality education and compliance with professional standards.

Peer Review - The Board has promulgated rules governing peer review and has implemented a program whereby the work product of persons or firms practicing public accountancy is measured for adherence to quality control standards adopted by practitioners and the profession.

PAGE 24

UNAUDITED


ENFORCEMENT When a licensee or other entity registered with the Board violates statutory provisions related to the practice of public accountancy or the Rules of Professional Conduct, the Board has the authority to revoke a certificate, suspend a license, refuse to renew a license or registration, or take other disciplinary action. In addition, the Board has the authority to enforce specific statutory prohibitions against practicing or offering to practice public accountancy without a valid license.

PUBLIC EDUCATION The Board operates a coordinated system of public information to provide all interested parties with information concerning the Public Accountancy Act, as well as Board rules and procedures pertaining to qualification, examination, licensing and peer review.

PAGE 25

~ Q m N Ol

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I

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LICENSING &

QUALIFICATIONS

I

LICENSING I QUALIFICATIONS I., (EXAM) 11

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TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY ORGANIZATION CHART

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INTERNAL AUDIT

(Contracted) !-

EXECUTIVE DIRECTOR

William Treacy

I

GENERAL COUNSEL

PUBLIC INFORMATION

ENFORCEMENT

&

SPECIAL PROGRAMS

EXECUTIVE 1------1 SUPPORT STAFF

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INFORMATION RESOURCES

I CONTINUING i' PROFESSIONAL I

SPONSOR " PEER REVIEW

EDUCATION . REVIEW PROGRAM _w

IITSBPA FolderslREPORTSIAFR 1010rgChart FY 10 with SRP

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ACCOUNTING & ADMINISTRATIVE

SERVICES

(Includes Chief Audit Executive &

Risk Management)

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FINANCIAL REPORTING ~ I ADMINISTRATIVE I

SERVICES

c z » c o =i m o

UNAUDITED


LIST OF BONDED EMPLOYEES

During the year, the Board had in force a surety bond covering all employees through the Garrett Abney Company in the amount of $300,000. The following employees were covered as of August 31,2010.

EMPLOYED AT AUGUST 31,2010

Diana Aguilar Brie Allen Sharon Backus Kristin Batres Sandra Bradshaw Josephine Briones Roel Cantu Andrea Carter Ismael Castillo Jr. Jennifer Costilla Karen Davis Jackie Frazier Patrick Dore Karleta Genzer Gilbert Gutierrez James Hamilton Alan Hermanson Micaela Hernandez Jerry Hill Donna Hiller Jean Ickes John Kays V. Jean Keith Betty Lackey Maria Lagunas Steven Mahaffey Marissa Mahoney Rachael Martinez Susan McFarlane Kyle McGaw Virginia Moher Patrick Myers Karen New Margaret Robison Marisa Rios Anthony Sanchez Lorna Schwimmer April Serrano C. Lewis Smalley Barbara Stooksberry William Treacy Maria Turner Margaret Warpenburg

PAGE 27

Accounting Technician I Administrative Assistant III Inspector III Administrative Assistant III Inspector III Administrative Assistant II Program Specialist I Attorney IV Executive Assistant I Inspector III Systems Analyst VI Accountant IV Administrative Assistant II Accountant III Inspector IV Director I Dir. of Administrative Services/CFO I nspector III General Counsel III Director I Program Specialist I Inspector III Director I Administrative Assistant I Accountant II Program Specialist I Administrative Assistant II I nspector III Administrative Assistant II Systems Analyst IV Attorney IV Attorney IV Administrative Assistant IV Staff Services Officer II Legal Assistant I Inspector III Investigator I Program Specialist I Systems Analyst IV Information Specialist III Executive Director Administrative Assistant IV Systems Analyst IV

UNAUDITED


STATISTICAL INFORMATION

REGISTRATION AND LICENSURE

Current Statistics

The number of licenses issued by the Board in fiscal years 2010 and 2009 were as follows:

Certified Public Accountants Public Accountants Offices Other States/Foreign Countries

Total Licenses

AUGUST 31, 2010 2009

64,733 63,381 8 10

9,921 9,665 58 60

74,720 73,116

The number of firms practicing public accountancy in Texas at the end of fiscal years 2010 and 2009 were as follows:

Corporations Partnerships Sole Proprietorships

Total Firms*

AUGUST 31, 2010 2009

3,083 551

5,997

2,854 530

6,012

*The total number of firms does not equal the number of offices because some firms have more than one Office.

The number of individuals certified or registered by the Board in fiscal years 2010 and 2009 were as follows:

CPA Certifications Reciprocity

Total Certifications and Registrations

Statistical Trends

AUGUST 31, 2010 2009

1,695 290

1,679 251

As shown in Table I, the number of licensees governed by the Texas State Board of Public Accountancy has increased by 77.5%, from 42,104 in 1988 to 74,720 in 2010. Note that between 1989 and 1990, the number of licensees increased by 20%. In 1990, the Board began licensing each office for all Texas firms and required sole proprietorships to be licensed.

PAGE 28

UNAUDITED


80,000

~ 70,000

~ 60,000 00 00 50,000 .... 00 40,000 I'ol 00 z: 30,000 I'ol V 20,000 .... -< 10,000

0 -

10T1/EXCEL

TABLE I

LICENSES ISSUED FROM 1988 TO 2010

-----.-/

88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 as 06 07 08 09 10

YEAR

INCREASE TOTAL OVER

YEAR LICENSES PREVIOUS YEAR 1988 42,104 1.09% 1989 44,347 5.33% 1990 53,478 20.59% 1991 53,706 0.43% 1992 54,952 2.32% 1993 58,235 5.97% 1994 59,787 2.67% 1995 59,668 -0.20% 1996 60,785 1.87% 1997 63,091 3.79% 1998 64,105 1.61% 1999 64,874 1.20% 2000 65,932 1.63% 2001 66,719 1.19% 2002 67,763 1.56% 2003 68,651 1.31% 2004 69,857 1.76%

2005 70,081 0.32% 2006 70,577 0.71%

2007 70,798 0.31%

2008 71,715 1.30%

2009 73,116 1.95%

2010 74,720 2.19%

PAGE 29

i

UNAUDITED


QUALIFICATIONS

Current Statistics

The following table indicates the number of candidates who sat for the Uniform CPA examination during the last two fiscal years. The counts are shown by four 2-month testing windows.

CPA EXAM TESTING WINDOWS

FY 10 FY09

JULI APR/ JAN/ OCT/ JULI APR/ JAN/ OCT/ AUG MAY FEB NOV AUG MAY FEB NOV 2010 2010 2010 2009 2009 2009 2009 2008

Total Successful Candidates * 573 529 338 453 494 508 312 496

Total Unsuccessful Candidates 2,918 2,275 2,228 2,429 2,245 2,153 2,063 2,107

Total Candidates sitting for the 3.491 2.804 2.566 2.882 2.939 2.661 2,375 2.603 Examination

* Candidates who are classified as "Successful Candidates" are those who received credit during the testing window for any remaining sections of the exam required for certification. These candidates may have passed two or more sections of the examination in a previous testing window. Candidates who are classified as "Unsuccessful Candidates" have not passed all of the sections of the examination required for certification by the end of the testing window. (A candidate must pass four sections of the examination to be certified.)

Candidates Sitting for the CPA Exam:

A candidate can be counted in multiple testing windows during a fiscal year. The number of examination candidates increased from 10,578 in 2009 to 11,743 in 2010. (See Table II)

Candidates are utilizing the computer-based format for the Uniform CPA Examination more than had been anticipated.

PAGE 30

LLOO O~ et::c:( WO m-::E O ~Z Z ~

UNAUDITED


TABLE II

16,000

14,000

12,000

Ir f.;

'"' I"

10,000

8,000

6,000

4,000

2,000

I." I; Ie

~ ,l ~ r~

~ f'- I~ ~ 0

CANDIDATES TAKING THE CPA EXAM FROM 1991 TO 2010

,.. I" - I" ,..

I "

~I ,.. I"

~ " r; '" I, f~ 1.1

,. I'"

I' l~ 1"( I:

I'"

I" - I .~' I'"

~~ f.~ ~ I'~

,.. ,.. I"

ti·. Ii' I;~ ~ I~

[ ~

t1 '-,

91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10

YEAR

CHANGE CANDIDATES FROM

YEAR TESTING PREVIOUS YEAR 1991 15,728 -3.33% 1992 12,570 -20.08% 1993 11,317 -9.97% 1994 11,305 -0.11% 1995 10,344 -8.50% 1996 10,509 1.60% 1997 10,841 3.16% 1998 11,365 4.83% 1999 7,528 -33.76% 2000 6,790 -9.80% 2001 5,719 -15.77% 2002 6,017 5.21% 2003 6,497 7.98% 2004 5,763 -11.30% 2005 7,198 24.90% 2006 7,421 3.10% 2007 8,909 20.05% 2008 10,056 12.87% 2009 10,578 5.19% 2010 11,743 11.01%

C:\Documents and Settings\usralh\Local Settings\Temporary Internet Files\OLKD4D\10t2 xlsV2.xls

PAGE 31

UNAUDITED


ENFORCEMENT

COMPLAINTS OPENED

During this period the Board issued 76 Cease and Desist Orders against individuals who were misrepresenting themselves to be accountants.

Also during this period, the Executive Committee of the Board did not conduct any emergency suspension hearings.

From September 1, 2009 through August 31, 2010, the Board opened 3,473 investigative files against licensees and nonlicensees alleged to be in violation of the Public Accountancy Act. Of those complaints, 1,430 remained open at year end. The pending cases consist of 1,090 administrative complaints and 340 disciplinary complaints. All 340 disciplinary complaints will require committee and Board review.

Complaints originated from the following sources: Note: Some licensees may have more than one complaint filed, therefore the total complaints opened does not equate to the total of sources.

Exchange Commission State Board of Public Accountancy

& Urban Development Department of Transportation

Department of Education

Inspector General I n"'~"nn," Accountancy Board

Education Agency

COMPLAINTS CLOSED

From September 1, 2009 through August 31, 2010 the Board closed 3,633 complaints. The average time to close a complaint during fiscal year 2010 was 7.55 months. The disposition of these complaints is presented in the following chart:

Administrative Complaints: Voluntary Compliance Dismissed Revoked Suspension Public Reprimand Other Limited Scope Probation Total Administrative Complaints

Disciplinary Complaints: Voluntary Compliance Dismissed Revoked Suspension Public Reprimand Other Limited Scope Probation Total Disciplinary Complaints

Total

PAGE 32

2,488 136 329 129

3 3

2 3,090

308 87 18

15

115

543

3633

UNAUDITED

TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY (457) ALLEGED AND ACTUAL VIOLATIONS

The complaints closed in fiscal year 2010 contained alleged and actual violations set forth in the chart below. Many complaints contained more than one alleged or actual violation of the Rule and the Public Accountancy Act.

Discreditable Acts 2 0 0



0 0

of Rules of Professional Conduct 2 0 0

44 0 4

Principles 34 0 2

11 0

Professional Standards 0

13 0 0

Compensation 3 0 0

Integrity and Objectivity 13 0

Competence 77 0 7

Competence 3 0 0

I Client Communications 6 0

Records 20 0 3

4 0 0

I or Resignation 3 0

0 0

0 0

7 0

Firm Names 9 6

Complaint Notice 0

Discreditable Acts 37 2

501.90 (2) dishonesty, fraud or gross neg in the practice of public 20 0 0

501.90 (4) 11 0 8

501.90 (5) I conviction of a crime or imposition of deferred 8 0 4 or community supervision

501.90 (6) I revocation, suspension or refusal to 4 0 2 to practice as a certified public accountant or

accountant by any other state for any cause than failure to pay the appropriate registration fee

such other state

501.90 (7) or revocation of or a voluntary consent 7 0 2 concerning the right to practice before any state

agency for a cause which in the opinion of Board warrants its action

501.90 (8) participating in the preparation of a false or 5 0 0 0 misleading financial statement or tax return

501.90 (9) dishonesty or breach of fiduciary responsibility 14 0 4 0

(continued on next page)

PAGE 33

5.40

4.95

6.36

756

7.61

5.20

9.38

7.05

7.67

UNAUDITED


ALLEGED AND ACTUAL VIOLATIONS (continued)

The complaints closed in fiscal year 2009 contained alleged and actual violations set forth in the chart below. Many complaints contained more than one alleged or actual violation of the Rules and the Public Accountancy Act .

. ',':.:,'

20 6

misrepresenting facts or making a misleading or 5 a 1 statement to a client

501.90 (13) swearing or perjury in any comunication to the 2 a hnRrn

501.90 (14) threats of bodily harm or retribution to a client a a

501.90 (16) voluntarily disclosing information a a 501.90 (17) breaching the terms of an Agreed Consent Order 2 a a 501.90 (18) any crime of moral turpitude involving grave 2 0 0

infringement of the moral sentiment of the community

Event 9 5 a

ing Frivolous Complaints a 0

0 0 4

Responses 0

Responses 2 0 2 0

Mandatory CPE 0 2,204 0 130

Affidavit of Firm 2 0 0

Firm Offices 0 0

(d) Firm Offices 4 0 4

Failure to Complete license Renewal 0 383 0

Misdemeanor - Deceptive Business Practice 2 0 0

of the OR Program 0 a 7

to the OR Program 0 0 2

Reporting Requirements 0 a 0

PAGE 34

11.09

0.43

21.42

42.23

5.60

5.09

42.90

5.16

12.68

5.09

42.90

11.18

5.60

33.20

UNAUDITED


ALLEGED AND ACTUAL VIOLATIONS (continued)

The chart below includes alleged and actual violations of the Public Accountancy Act.

Practice

Practice

Practice

Use of Accountant or Auditor Restricted

Use of Accountant or Auditor Restricted

- Client Privilege

Final Felony Conviction 4 0

Final Felony Conviction 5 0

Lack of Fitness 0

Lack of Fitness 158 0

Other Rule or Order Violation 8 0

Other Rule or Order Violation 3 0

Dishonesty, Fraud, Gross Negligence 9 0

Fraud, Gross Negligence 0

to File License Holder's Own Tax

0

of 901.401 4

of Rule

of Rule 165 0

3 0

Debarring by an Agency 4 0

Explanation of Columns:

3

4

0

26

4

0

0

0

0

0

40

3

0

Column C is a count of the number of times that this alleged violation occurred for complaints that were opened during FY 2010.

Column D is a count of the number of times that this alleged violation occurred for complaints that were closed during FY 2010, with this being one of the rules actually violated.

0

0

0

0

0

0

313

0

0

0

0

0

Column E is the average amount of time that it took to close all of the investigative files that were closed during this fiscal year, regardless of the fiscal year in which they were opened and where that particular rule was listed as being the primary rule that was violated.

Zeros occur in column D when there were no complaints closed during FY 2010 that had this violation as one of many alleged violations.

Zeros occur in column E when there were no complaints closed during FY 2010 that had this alleged violation as an actual violation.

PAGE 35

3.85

61.60

10.16

14.24

16.42

4.95

46.87

42.23

11.90

5.09

35.50

10.16

13.99

25.24

18.93

UNAUDITED


COLLECTIONS

LICENSES, FEES, AND PERMITS

The Board collects fees for examination, certification, registration and licensure. The Board determines the actual fees to be charged, as follows:

CPA Examination Fees: Application of Intent Eligibility fee:" per part

License Fees: Individual license

Scholarship Firm Office License

Other Fees: Reciprocal registration CPA certificate fee Transfer of Credit - Application of Intent

Sponsor Review Fees: No. of Course Titles Offered:

1-10 11-40 41+

* As of August 31, 2010

STATUTORY MAXIMUM

$100

$125

$10 $200

$250 $50

$100

ACTUAL*

$50 $15

$45 $30 $10 $50

$100 $50

$100

$400 $750

$1,250

through 08116108 effective 08117108

The Board collected $17.5 million during fiscal year 2010. Table III presents these collections by type, providing percentages of specific fees to total funds collected.

PAGE 36

UNAUDITED


TABLE III

FUNDS COLLECTED BY TYPE For the Fiscal Year Ended August 31,2010

PROFESSIONAL FEE ($200) 69%

CPA LICENSE

FIRM OFFICE LICENSE

OTHER COLLECTIONS 4%

FY 2010

$ 1,946,983.01

690,908.64

SCHOLARSHIP FEE (EXH. A-2 & II) 630,719.14

EXAM FEES 503,365.00

PENALTIES - LATE PAYMENT 772,012.00

PROFESSIONAL FEE ($200) 12,219,844.04

OTHER COLLECTIONS 779,869.69

CPA LICENSE 11 %

11.10%

3.94%

3.60%

2.87%

4.40%

69.65%

4.45%

TOTAL FUNDS COLLECTED $17,543,701.52 A 100.00%

A Excluding Funds Collected for Scholarship Fee

and Professional Fee

Reference Exhibits /I and A-2. $ 4,693,138.34

C:IDocuments and SetiingslusralhlLocal SettlngslTemporary Inlemet FliesIOLKD4Dl1013.xIS

PAGE 37

I I $

FIRM OFFICE LICENSE 4%

SCHOLARSHIP FEE (EXH. A-2 & II)

3%

EXAM FEES 3%

PENALTIES - LATE PAYMENT

4%

FY 2009

1,986,121.62

677,082.47

624,744.00

454,713.32

790,979.25

12,183,233.33

834,446.30

11.32%

3.86%

3.56%

2.59%

4.51%

69.41%

4.75%

$17,551,320.29 A 100.00%

$4,743,342.96

UNAUDITED


EXPENDITURES

BY ACTIVITY

For the fiscal year ended August 31, 2010, the total expenditures of the Board were approximately $4,901,394 million, as shown in Table IV and Exhibit A-2.

Administration includes executive support staff, information resources, accounting, administrative services, and Board member expenditures.

BY OBJECT OF EXPENDITURE

Table V presents expenditures by object.

The Board's expenditures for Salaries and Payroll Related Costs were 59% of total expenditures, which is typical of a service-oriented organization.

The next largest expenditure groups in fiscal year 2010 were for Professional Fees, which includes expert witness fees and legal services; Other Expenditures, which includes payment for the Statewide Cost Allocation Plan and for workers' compensation and risk management services, and Materials and Supplies, which includes postage and consumables.

PAGE 38

UNAUDITED


TABLE IV

PAYROLL RELATED COSTS 11%

MAJOR CASE ENFORCEMENT 7% ---

PUBLIC EDUCATION __ _

11%

LICENSING AND CPE

ENFORCEMENT 13%

SPONSOR REVIEW PROGRAM (SRP)

EXAM - ADMINISTRATION

ENFORCEMENT

MAJOR CASE ENFORCEMENT

PUBLIC EDUCATION

PAYROLL RELATED COSTS

PEER REVIEW

ADMINISTRATION

TOTAL EXPENDITURES

EXPENDITURES BY ACTIVITY

Fund 0858 For the Fiscal Year Ended August 31, 2010

PEER REVIEW 2%

ADMINISTRATION

EXAM - ADMIN . 7%

SPONSOR REVIEW PROGRAM

6%

LICENSING & CPE 14%

FY 2010 I I FY 2009

$666,523.81 13.6% $531,805.04

315,859.68 6.4% 309,770.31

331,035.21 6.8% 307,864.85

634,321 .79 12.9% 483,891.19

330,790.64 6.7% 398,931.76

533,331.62 10.9% 489,817.56

559,624.00 11.4% 516,233.41

84,777.76 1.7% 73,987.30

1,445,129.82 29.5% 1,514,166.47

$4,901 ,394.33 100.0% $4,626,467.89

(Exhibit /I)

C:IDocuments and Settln slusralhlLocal SettingslTem ora Internet FilesIOLKD4D\1 Ot4.xls

PAGE 39

11.5%

6.7%

6.7%

10.5% 8.6%

10.6% 11.2%

1.6%

32.7%

100.0%

UNAUDITED


TABLE V

EXPENDITURES BY OBJECT Fund 0858

For the Fiscal Year Ended August 31, 2010

COMMUNICATION AND UTILITIES

1%

OTHER EXPENDITURES 9%

PRINTING AND REPRODUCTION

3%

RENTALS 3%

SUPPLIES 7%

REPAIRS AND MAINTENANCE

1%

PROFESSIONAL FEES TRAVEL 13% 1%

PUBLIC ASSISTANCE CAPTAL OUTLAY

SALARIES AND WAGES

PAYROLL RELATED COSTS

PROFESSIONAL FEES AND SERVICES

TRAVEL

MATERIALS AND SUPPLIES

RENTALS AND LEASES

PRINTING AND REPRODUCTION

REPAIRS AND MAINTENANCE

COMMUNICATION AND UTILITIES

OTHER EXPENDITURES

CAPITAL OUTLAY

PUBLIC ASSISTANCE PAYMENTS

TOTAL EXPENDITURES

PAYMENTS 1% 2%

FY 2010

$2,341,067.29

559,624.00

658,048.69

65,829.39

329,862.76

165,692.26

164,758.75

34,608.43

28,423.71

438,532.83

24,946.22

90,000.00

$4,901,394.33

(Exhibit /I)

Internet Files\OLKD4D\10tS.xls

PAGE 40

47.8%

11.4%

13.4%

1.3%

6.7%

3.4%

3.4%

0.7%

0.6%

8.9%

O.S%

1.8%

100.0%

SALARIES 50%

PAYROLL RELATED COSTS 11%

FY 2009

$2,310,711.05

516,399.84

611,701.52

65,989.93

234,220.41

126,296.43

130,536.60

36,725.18

32,530.59

436,525.71

28,285.00

90,000.00

$4,61 9,922.26

SO.O%

11.2%

13.2%

1.4%

S.1%

2.7%

2.8%

0.8%

0.7%

9.4%

0.6%

1.9%

100.0%

TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY · 2011-06-01 · Texas State Board of Public Accountancy...

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Transcript of TEXAS STATE BOARD OF PUBLIC ACCOUNTANCY · 2011-06-01 · Texas State Board of Public Accountancy...