A profit of $119,465 on sale of investments resulted in a gain of $89,672 for the period.
Revenues grew 5.2% for the period while expenses grew 2.6%. There was an operating loss of $155,112 in the first six months of 2011.
Dues income rose 7.1% to $2,907,285, helped by a $30 (+13%) increase to $255 that took place in January.
“Registration,” apparently meaning advance payments for the 2012 annual conference in San Francisco Oct. 13-16, fell 14.6% to $813,853 from 2011’s $953,134.
PRS reported “deferred dues-membership” as $300,430,” an apparent violation of Financial Accounting Standards Board Rule 958-605-25-1 that says dues income must be booked over the period covered by the dues.
Non-profits usually defer about half of dues income.
The International Assn. of Business Communicators, with $6,096,886 in total 2011 income and dues of $3.2M, had a deferred dues account of $1,714,987.
If PRS deferred about half of its dues, its net assets of $3.4M would be reduced by about $1.4M.
PRS 2011 chair Rosanna Fiske and PRS COO William Murray attempted to rebut O’Dwyer claims that PRS is not living up to FASB rules as part of the 23 pages of charges leveled against this writer Sept. 1, 2011.
However, FASB was incorrectly referred by PRS to as the “Federal Accounting Standards Board” and a reference to the acceptability of nonrefundable revenues left out the word “dues.”
Nonrefundable revenues can be booked as received but not dues.
Passage from Sept. 1, 2011 PRS Letter to Jack O’Dwyer:
“PRS dues are nonrefundable. The Generally Accepted Accounting Principles (GAAP) established by the Federal Accounting Standards Board (FASB) state that it is acceptable to book nonrefundable revenues upon receipt. PRS’s current independent auditor, PKF International, as well as other independent auditors who have reviewed PRS’s finances over the course of several years, all have concluded that PRS dues revenue is accounted for properly in PRS’s quarterly and annual financial statements.”
Full text of the 23-page letter is at http://bit.ly/yc2LVT.