NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
Financial Statements for the
Years Ended June 30, 2014 and 2013 and
Independent Auditor’s Report
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
Financial Statements for the
Years Ended June 30, 2014 and 2013 and
Independent Auditor’s Report
BOARD MEMBERS (2014)
Lindsey C. Walata, Chairman
Richard Alan Kolb, Vice-Chairman
John Stevens, Secretary-Treasurer
John William Miller
Robert Remsburg
Kenneth Belk Taylor
EXECUTIVE OFFICER
Barbara U. Geiger, Administrator
LEGAL COUNSEL
North Carolina Department of Justice
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
TABLE OF CONTENTS
Page
MANAGEMENT’S DISCUSSION AND ANALYSIS 1-2
INDEPENDENT AUDITOR’S REPORT 3-4
FINANCIAL STATEMENTS FOR THE
YEARS ENDED JUNE 30, 2014 AND 2013
Statements of Net Position 5
Statements of Revenues, Expenses and Changes in Net Position 6-7
Statements of Cash Flows 8
Notes to Financial Statements 9-15
1
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
This section of the Board’s financial report represents Management’s analysis of the Board’s financial
performance during the years ended June 30, 2014 and 2013. Please read it in conjunction with the
financial statements which follow this section.
Financial Highlights
During 2014, the Board’s net position increased by $20,999, or 3.4%, due primarily to annually recurring
revenues in excess of expenses. During 2013, the Board’s net position increased by $39,359, or 6.8%,
due primarily to annually recurring revenues in excess of expenses.
During 2014, the operating revenues of the Board decreased by $10,412, or 6.7%, due primarily to a
decrease in examination fees and late payment fees. During 2013, the operating revenues of the Board
increased by $2,823, or 1.9%, due primarily to an increase in application fees and late fees.
During 2014, the non-operating revenues of the Board decreased by $99, or 1.6%, due primarily to a
decrease in the investment rate of return earned by the Board. During 2013, the non-operating revenues
of the Board decreased by $4,156, or 40.6%, due primarily to a decrease in the investment rate of return
earned by the Board.
During 2014, the operating expenses of the Board increased by $7,849, or 6.5%, due primarily to an
increase in board members expenses. During 2013, the operating expenses of the Board increased by
$9,614, or 8.6%, due primarily to an increase in website expenses.
Overview of the Financial Statements
This financial report consists of two sections: Management’s Discussion and Analysis and the Financial
Statements. The Board has no other supplementary information required by GASB 34. The Financial
Statements also include notes to the financial statements that provide detail of the information included in
the financial statements.
Basic Financial Statements
The financial statements of the Board report information about the Board using accounting methods similar
to those used by private sector companies. These statements offer short and long-term financial information
about the activities of the Board.
The Statements of Net Position present the current and long-term portions of assets and liabilities
separately.
The Statements of Revenues, Expenses, and Changes in Net Position present information on how the
Board’s assets changed as a result of its operations.
The Statements of Cash Flows present information on how the Board’s cash changed as a result of its
financial activities.
2
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
MANAGEMENT’S DISCUSSION AND ANALYSIS
Condensed Financial Information
The following presents condensed financial information on the operations of the Board:
Current Year Current Year
as of and for as of and for
the year ended the year ended
June 30, 2014 June 30, 2013
Current assets $ 483,439 $ 484,665
Capital assets 70 70
Other assets 274,914 270,860
Total assets $ 758,423 $ 755,595
Current liabilities $ 122,425 $ 140,596
Total liabilities $ 122,425 $ 140,596
Investment in capital assets $ 70 $ 70
Unrestricted 635,928 614,929
Total net position $ 635,998 $ 614,999
Operating revenues $ 144,207 154,619
Operating expenses (129,185) (121,336)
Operating income 15,022 33,283
Non-operating revenues 5,977 6,076
Change in net position $ 20,999 $ 39,359
Events Affecting Future Operations
The Board has no significant events affecting future operations which are reportable pursuant to GASB 34.
Contacting the Board’s Management
This financial report is designed to provide a general overview of the Board’s finances and to demonstrate
the Board’s accountability for the money it receives. If you have any questions about this report or need
additional information, contact: North Carolina Board for Licensing of Geologists, PO Box 41225, Raleigh,
NC 27629.
3
Shelton L. Hawley, CPA, PA
Certified Public Accountant
Suite B1
800 N. Raleigh St.
P.O. 1545
Angier, North Carolina 27501-1545
Telephone: (919) 639-4825
Facsimile: (919) 639-3102
INDEPENDENT AUDITOR’S REPORT
Members of the Board
North Carolina Board for Licensing of Geologists
Raleigh, North Carolina
Report on the Financial Statements
I have audited the accompanying financial statements and the related notes to the financial statements as
listed in the table of contents of the North Carolina Board for Licensing of Geologists (the "Board"), an
independent state agency which is a nonmajor enterprise fund of the primary government of the State of
North Carolina, as of June 30, 2014 and 2013.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
My responsibility is to express an opinion on these financial statements based on my audits. I conducted
my audits in accordance with auditing standards generally accepted in the United States of America. Those
standards require that I plan and perform the audits to obtain reasonable assurance about whether the
financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of
accounting policies used and the reasonableness of significant accounting estimates made by management,
as well as evaluating the overall presentation of the financial statements.
I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit
opinion.
Opinion
In my opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the North Carolina Board for Licensing of Geologists as of June 30, 2014 and 2013,
and the results of its operations and its cash flows for the years then ended in accordance with accounting
principles generally accepted in the United States of America.
4
INDEPENDENT AUDITOR’S REPORT (CONCLUDED)
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the Management’s
Discussion and Analysis be presented to supplement the basic financial statements. Such information,
although not a part of the basic financial statements, is required by the Governmental Accounting Standards
Board, who considers it to be an essential part of financial reporting for placing the basic financial
statements in an appropriate operational, economic, or historic context. I have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the methods
of preparing the information and comparing the information for consistency with management' s responses
to our inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic
financial statements. I do not express an opinion or provide any assurance on the supplementary
information because the limited procedures do not provide sufficient evidence to express an opinion or
provide any assurance thereon.
Shelton L. Hawley, C.P.A., P.A.
Angier, North Carolina
October 28, 2014
-5-
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
STATEMENTS OF NET POSITION
JUNE 30, 2014 AND 2013
June 30, 2014 June 30, 2013
Proprietary-
Enterprise
Fund
Proprietary-
Enterprise
Fund
ASSETS
Current assets:
Cash in State Treasurer (Note 2) $ 481,939 $ 483,165
Cash and cash equivalents - other (Note 2) 1,500 1,500
Total current assets 483,439 484,665
Capital assets (Note 1):
Furniture and office equipment 70 70
Total capital assets - net of depreciation 70 70
Other assets:
Investments (Note 2) 274,912 270,849
Accrued interest receivable (on investments) 2 11
Total other assets 274,914 270,860
TOTAL ASSETS $ 758,423 $ 755,595
LIABILITIES AND NET POSITION
Current liabilities:
Accounts payable $ 12,168 $ 18,538
Due to other state agencies 14,737 6,133
Unearned revenue (Note 3) 95,520 115,925
Total current liabilities 122,425 140,596
TOTAL LIABILITIES 122,425 140,596
NET POSITION (NOTE 4)
Investment in capital assets 70 70
Unrestricted net position 635,928 614,929
TOTAL NET POSITION 635,998 614,999
TOTAL LIABILITIES AND NET POSITION $ 758,423 $ 755,595
See notes to financial statements.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2014 AND 2013
-6-
2014 2013
Proprietary-
Enterprise
Fund
Proprietary-
Enterprise
Fund
OPERATING REVENUES:
License and renewal fees $ 123,955 $ 126,585
New application fees and packets 7,260 7,985
Examination fees 10,800 15,260
Late payment fees 1,250 3,525
Miscellaneous operating income 942 1,264
Total operating revenues $ 144,207 $ 154,619
OPERATING EXPENSES:
Contractual management services (Note 5) $ 57,000 $ 54,000
Management service staff expenses 266 233
Board members expenses 12,655 4,736
Peer review expenses (Note 6) 3,868 5,236
Telephone 2,096 1,721
Exam expenses 9,580 13,415
Public relations expenses - law awareness 237
Office supplies 455 837
Printing and copying (including newsletter) 1,840 4,439
Postage and freight 992 1,016
Dues 4,500 4,500
Insurance 1,658 1,508
Legal (including related costs), accounting and audit fees 16,566 10,286
Credit card discount fees 2,409 2,831
Stamps 745 819
Website expenses 14,205 15,759
Miscellaneous expenses 113
Total operating expenses $ 129,185 $ 121,336
Operating income (loss) $ 15,022 $ 33,283
See notes to financial statements.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
YEARS ENDED JUNE 30, 2014 AND 2013
2014 2013
Proprietary-
Enterprise
Fund
Proprietary-
Enterprise
Fund
-7-
NON-OPERATING REVENUES (EXPENSES):
Interest income $ 5,977 $ 6,076
Total non-operating revenues $ 5,977 $ 6,076
Change in net position $ 20,999 $ 39,359
Net position - beginning of year 614,999 575,640
Net position - end of year $ 635,998 $ 614,999
See notes to financial statements.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
STATEMENTS OF CASH FLOWS
YEARS ENDED JUNE 30, 2014 AND 2013
-8-
2014 2013
Proprietary-
Enterprise
Fund
Proprietary-
Enterprise
Fund
Cash flows from operating activities:
Cash received from fees and other operating income $ 123,802 $ 165,634
Cash payments for operating expenses (126,951) (107,313)
Net cash provided by operating activities $ (3,149) $ 58,321
Cash flows from investing activities:
Interest earned 5,977 6,076
Transfers from (to) investments $ (4,054) $ (4,266)
Net cash provided by investing activities $ 1,923 $ 1,810
Net increase in cash $ (1,226) $ 60,131
Cash - beginning of year 484,665 424,534
Cash - end of year $ 483,439 $ 484,665
Reconciliation of operating income
to net cash provided by operating activities:
Operating income (loss) $ 15,022 $ 33,283
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Changes in assets and liabilities:
Other receivables $ $ 155
Accounts payable 2,234 14,023
Unearned revenue (20,405) 10,860
Total adjustments $ (18,171) $ 25,038
Net cash provided by operating activities $ (3,149) $ 58,321
See notes to financial statements.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-9-
Note 1 - Nature of Activities and Significant Accounting Policies
Description of Organization
The North Carolina Board for Licensing of Geologists (the "Board") is an independent State agency. It
is an occupational licensing board and is authorized by Chapter 89E of the North Carolina General Statutes.
The Board is composed of six members who are appointed by the Governor of the State of North Carolina.
The Board is a nonmajor enterprise fund of the primary government of the State of North Carolina and is
reported as such in the State’s Comprehensive Annual Financial Report (CAFR).
The Board is established to maintain minimum standards for services provided by geologists.
The Board’s operations are financed with self-generated revenues from fees charged to examinees and
licensees.
Basis of Presentation
The accompanying financial statements have been prepared in accordance with accounting principles
generally accepted in the United States of America. The Governmental Accounting Standards Board
(GASB) is the accepted standard setting body for establishing governmental accounting principles and
reporting standards.
All activities of the Board are accounted for within a single proprietary (enterprise) fund. Proprietary funds
are used to account for operations that are financed and operated in a manner similar to private business
enterprises where the intent of the governing body is that the cost of providing goods or services to the
general public on a continuing basis be financed or recovered primarily through user charges.
Reporting Entity
The concept underlying the definition of the financial reporting entity is that elected officials are
accountable to their constituents for their actions. As required by accounting principles generally accepted
in the United States of America (GAAP), the financial reporting entity includes both the primary
government and all of its component units. An organization other than a primary government serves as a
nucleus for a reporting entity when it issues separate financial statements. The accompanying financial
statements present all funds and activities for which the Board is responsible.
For financial reporting purposes, the Board is a nonmajor enterprise fund of the primary government of
the State of North Carolina and is reported as such in the State’s Comprehensive Annual Financial Report
(CAFR). These financial statements for the Board are separate and apart from those of the State of North
Carolina and do not present the financial position of the State nor changes in the State’s financial position
and cash flows.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-10-
Note 1 - Nature of Activities and Significant Accounting Policies (Continued)
Basis of Accounting
In accordance with Statement of Governmental Accounting Standards 34 (as amended, if applicable), the
Board herewith presents Statements of Net Position, Statements of Revenues, Expenses, and Changes in
Net Position; and Statements of Cash Flows. These statements reflect entity-wide operations of the Board.
The Board has no fiduciary funds or component units.
The Statements of Revenues, Expenses, and Changes in Net Position demonstrate the degree to which the
direct expenses of the Board are offset by license and examination fees.
The financial statements report all activities of the North Carolina Board for Licensing of Geologists using
the economic resource measurement focus and the full accrual basis of accounting. Revenues are
recognized in the accounting period in which they are earned and become measurable. Expenses are
recognized when incurred, if measurable, regardless of the timing of cash flows.
Operating revenues and expenses consist of those revenues and expenses that result from the ongoing
principal operations of the Board. Operating revenues consist primarily of license fees. Operating expenses
are all expense transactions incurred other than those related to capital and noncapital financing or investing
activities as defined by GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable
Trust Funds and Governmental Entities That Use Proprietary Fund Accounting. Non-operating revenues
and expenses consist of those revenues and expenses that are related to investing, capital, and non-capital
financing activities; and are classified as non-operating in the financial statements.
Cash in State Treasurer
This classification consists of funds deposited by the Board with the cash accounts of the North Carolina
State Treasurer.
Cash and Cash Equivalents
This classification includes undeposited receipts, petty cash, checking accounts and time deposits (excluding
certain certificates of deposit, if any) held by the Board.
Investments
The Board is authorized to invest idle funds in accordance with North Carolina General Statutes. This
classification consists of certain certificates of deposits held by the Board for investment. Investments
generally are reported at fair market value. Certificates of deposit are reported at cost (which is the same
as fair value) if purchased in the primary certificate of deposit market, and at fair value if purchased in the
secondary certificate of deposit market (as determined by quoted market prices). The net increase
(decrease) in the fair value of investments for certificates of deposit is recognized as a component of
investment interest income.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-11-
Note 1 - Nature of Activities and Significant Accounting Policies (Continued)
Fair Value of Financial Instruments
The carrying amounts of the Board’s financial instruments approximate their fair value.
Capital Assets
Capital assets are stated at cost and are being depreciated over their useful lives on a straight-line basis.
The Board capitalizes assets that have a value or cost of $500 or greater at the date of acquisition and an
estimated useful life of more than one year. Depreciation is computed using the straight-line method of
depreciation over the estimated useful lives of the assets, generally estimated as follows: office furniture
and equipment, 5 to 7 years. Summaries follow:
Cost
06-30-13 Acquisitions Disposals
Cost
06-30-14
Accumulated
Depreciation
Net
Amount
Furniture/Equipment $ 1,237 $ - $ - $ 1,237 $ 1,167 $ 70
$ 1,237 $ - $ - $ 1,237 $ 1,167 $ 70
Cost
06-30-12 Acquisitions Disposals
Cost
06-30-13
Accumulated
Depreciation
Net
Amount
Furniture/Equipment $ 1,237 $ - $ - $ 1,237 $ 1,167 $ 70
$ 1,237 $ - $ - $ 1,237 $ 1,167 $ 70
When an asset is disposed of, the cost of the asset and the related accumulated depreciation are removed
from the books. Any gain or loss on disposition is reflected in earnings for the period. No depreciation
expense was recorded for the fiscal year ended June 30, 2014 or for the fiscal year ended June 30, 2013.
Income Taxes
The Board is a nonmajor enterprise fund of the primary government of the State of North Carolina and is
exempt from federal and state income taxes.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the
United States of America requires management to make estimates and assumptions that affect certain
reported amounts and disclosures. Accordingly, actual results could differ from those estimates.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-12-
Note 2 - Deposits and Investments
Cash in State Treasurer Short Term Investment Fund (STIF)
Pursuant to North Carolina General Statute 147-69.3(b), the Board voluntarily deposits to the North
Carolina Short Term Investment Fund (STIF). Disbursements are through the issuance of warrants by the
Board. Investments of the Short Term Investment Fund are limited to those authorized for the State’s
General Fund, generally high quality money market investments and US Government/agency securities.
FDIC insurance and deposit collateralization rules do not apply.
Deposit and investments risks associated with the State Treasurer’s Investment Pool (which includes the
State Treasurer’s Short-Term Investment Fund) are included in the State of North Carolina’s
Comprehensive Annual Financial Report. An electronic version of the financial report is available by
accessing the North Carolina Office of the State Controller’s internet home page, www.ncosc.net, and
clicking on “Financial Reports”, or calling the State Controller’s Financial Reporting Section at (919) 707-
0500.
At June 30, 2014, the Board’s deposits with the State Treasurer STIF account had a carrying value and fair
market value of $481,939 (including undeposited receipts), and a bank balance of $444,599 (including
$25,800 in uncertified deposits). At June 30, 2013, the Board’s deposits with the State Treasurer STIF
account had a carrying value and fair market value of $483,165 (including undeposited receipts), and a
bank balance of $472,660 (including $5,265 in uncertified deposits).
Deposits in Financial Institution(s)
All of the Board’s deposits which are uninsured are uncollateralized [unless collateralized pursuant to NC
Administrative Code (20 NCAC 7)] by the financial institution holding said deposits. For deposits,
custodial credit risk is the risk that in the event of the failure of the depository (or counterparty), the Board
will not be able to recover the value of its deposits that are in the possession of the outside party. The
Board does not have policies regarding custodial credit risk for deposits.
At June 30, 2014, the Board’s deposits had a carrying amount of $276,412 and a bank balance of
$276,412. Of the bank balance, $251,500 was covered by federal depository insurance, and $24,912 was
uninsured and uncollateralized [unless collateralized pursuant to NC Administrative Code (20 NCAC 7)].
Certificates of deposit in the amount of $274,912 are considered time deposits for this disclosure and are
classified as investments on the Statement of Net Position. At June 30, 2013, the Board’s deposits had a
carrying amount of $272,349 and a bank balance of $272,349. Of the bank balance, $251,500 was covered
by federal depository insurance, and $20,849 was uninsured and uncollateralized [unless collateralized
pursuant to NC Administrative Code (20 NCAC 7)]. Certificates of deposit in the amount of $270,849 are
considered time deposits for this disclosure and are classified as investments on the Statement of Net
Position.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-13-
Note 2 - Deposits and Investments (Continued)
Investments
At June 30, 2014 and 2013, the Board had the following investments and maturities.
June 30, 2014 June 30, 2013
Investment Type Fair Value Over 12 Months Fair Value Over 12 Months
Certificate of Deposit $ 141,091 $ 141,091 $ 137,296 $ 137,296
Certificate of Deposit 133,821 133,821 133,553 133,553
Total $ 274,912 $ 274,912 $ 270,849 $ 270,849
Risk Disclosures for Investments
Interest rate risk - As a means of limiting its exposure to fair value losses arising from rising interest rates,
the Board limits its investment in certificates of deposits to maturities of no more than 60 months.
Credit risk - State law limits the investments of the Board to certain types of investments, however the
Board’s present policy for managing credit risk is to limit its investments to certificates of deposits.
Custodial credit risk - For an investment, custodial credit risk is the risk that in the event of the failure of
the depository (or counterparty), the Board will not be able to recover the value of its investments that are
in the possession of the outside party. The Board does not have policies regarding custodial credit risk for
investments.
Concentration of credit risk - The Board places no limit on the amount that it may invest in any one issuer.
All of the Board’s deposits and investments are with one financial institution (other than deposits with the
North Carolina State Treasurer).
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-14-
Note 2 - Deposits and Investments (Continued)
Reconciliation of Deposits and Investments
A reconciliation of deposits and investments for the Board to the basic financial statements at June 30, 2014
and 2013, is as follows:
June 30, 2014 June 30, 2013
Carrying Amount of Cash in State Treasurer $ 481,939 $ 483,165
Carrying Amount of Bank Deposits 1,500 1,500
Certificates of Deposits 274,912 270,849
Total Deposits and Investments $ 758,351 $ 755,514
Current:
Cash in State Treasurer $ 481,939 $ 483,165
Cash and Cash Equivalents - Other 1,500 1,500
Noncurrent:
Investments 274,912 270,849
Total Deposits and Investments $ 758,351 $ 755,514
Note 3 - Unearned Revenue
The Board’s fees are assessed and collected on an annual basis for the period July 1 through June 30, which
corresponds with the Board’s accounting period. License renewal fees received in the latter part of the
fiscal year are unearned and recognized as revenue over the one year period to which they relate.
Note 4 - Net Position
Investment in capital assets - This component of net position consists of capital assets, net of accumulated
depreciation and reduced by the outstanding balances of any loan proceeds that are attributable to the
acquisition, construction, or improvement of those capital assets.
Restricted net position - This component of net position consists of net position which the Board is legally
or contractually obligated to spend in accordance with restrictions imposed by external parties. The Board
had no restricted net position at year end.
Unrestricted net position - This component of net position consists of net position that does not meet the
definition of restricted or investment in capital assets.
NORTH CAROLINA BOARD FOR LICENSING OF GEOLOGISTS
NOTES TO FINANCIAL STATEMENTS
YEARS ENDED JUNE 30, 2014 AND 2013
-15-
Note 5 - Contractual Management Services
The Board does not have any employees. The Board contracts with a management service to provide
services for the Board. The contract includes all services related to the process of licensure application
and renewal and various other clerical duties. The Board also reimburses the management service for
printing, copying, postage and miscellaneous office supplies and expenses. Payments to the management
service totaled $62,660 during the fiscal year ended June 30, 2014. Payments to the management service
totaled $61,193 during the fiscal year ended June 30, 2013.
Note 6 - Related Party Transactions
The Board contracts with former Board members to perform peer review services for the Board. Peer
review services are expenses incurred and paid for professional services rendered to investigate complaints
against Board licensees and to investigate unlicensed practice. Payments to former Board members (for
peer review services) totaled $486 during the fiscal year ended June 30, 2014. Payments to former Board
members (for peer review services) totaled $4,766 during the fiscal year ended June 30, 2013.
Note 7 - Risk Management
The Board is exposed to various risks of loss related to torts; theft of, damage to, and the destruction of
assets; errors and omissions; injuries to employees; and natural disasters. These exposures to loss are
handled by participation in certain state-administered risk programs and self retention of certain risks.
Additionally, the Board protects itself from exposure to loss through the purchase of commercial insurance
coverage.
Note 8 - Contingencies
The Board is involved in occasional disciplinary hearings throughout the year which arise in the ordinary
course of its operations. In the opinion of management of the Board, the results of such actions during the
years under audit do not materially affect the Board’s operations, changes in financial position, or cash
flows for the years herein ended.
Note 9 - Subsequent Events
Subsequent events have been evaluated through October 28, 2014, the date the financial statements were
available to be issued. Events occurring after that date have not been evaluated to determine whether a
change in the financial statements would be required.
This audit required 45 audit hours at a cost of $4,295.