NJCPA Publishes Audit Report

BY JAMES HARDENBERG, CPA, CGMA, CAE, NJCPA CHIEF LEARNING OFFICER & INTERIM CHIEF FINANCIAL OFFICER

The combined financial statements for the NJCPA and Affiliates (NJCPA Education Foundation and NJCPA Scholarship Fund) for the year ended May 31, 2023, have been published.

Fiscal 2023 began with a full-fledged resurrection of many in-person events after two years of mostly virtual events due to the lingering effects of the coronavirus pandemic. Compared to the latter part of fiscal 2022, when three NJCPA chapters began to bring members back for a total of seven in-person training sessions, fiscal 2023 included 40 chapter in-person educational events, in addition to social gatherings, along with the Annual Convention & Expo in June and the Atlantic City CPE Cluster in August.

On a combined basis, unrestricted revenues increased by 6.8% from the prior year, with much of the increase attributable to chapter, Convention and Cluster educational program fees, as well as a reduction in the market value decline for all investment portfolios combined. A material employee retention credit (ERC) refund was also received in May, which helped buoy the fiscal year-end results.

NEW JERSEY SOCIETY OF CPA s

For the Society, membership dues were slightly lower compared to fiscal 2022 due to a reduction in dues-paying members. Overall, membership declined by the end of May 2023. To help address this challenge, a Pipeline Task Force was formed with the goal to help stabilize and maintain membership market share in the future.

Peer review fees were flat compared to fiscal 2022, as a small increase in rates helped offset ongoing firm mergers, acquisitions and practitioner retirements. The ERC refund helped boost the year-end results and offset the market value decrease in the NJCPA investment portfolio. Total expenses increased by 11% as the pandemic continued to recede, with more printing and distribution activities, more travel and meetings, and the conclusion of the NJCPA CEO search.

Njcpa Education Foundation

The Foundation continued to operate and attack in a “virtual-first” mode but also began phasing back into in-person events. As mentioned earlier, NJCPA chapters began hosting events again, though at a reduced level compared to pre-pandemic times. The Convention and Atlantic City CPE Cluster were also brought back after a two-year hiatus. Educational program fee revenue increased by 36% compared to fiscal 2022, with a corresponding increase in the direct costs of education programs due to food, beverage, audio visual and other site-related charges that are not found with virtual programs. The Foundation ended the fiscal year with a negative change to net assets of $142,000, and though a negative result was expected for this second fiscal year of the 2021-2023 licensing cycle, it was better than budget.

Njcpa Scholarship Fund

With NJCPA chapters only beginning to phase back into in-person events after a soft relaunch in fiscal 2022, chapter contributions to the Fund were again held back for a third year in a row. However, the Fund still managed to provide $309,000 in scholarships during the fiscal year. The Fund’s investment portfolio also experienced a similar decline as the Society and the Foundation, with the overall results being a $203,000 negative change to net assets, which was also better than budget.

MERGERS/ACQUISITIONS

Matthews, Panariello P.C., a full service Bergen County firm located in Paramus, is looking to merge or acquire firms, sole practitioners, or accounts (audits, reviews, compilations and tax preparation and compliance services). We are a peer reviewed firm with a strong track record of client retention. We have been successful in prior acquisitions; let's talk. Visit our website at www.mpcpas.com.

To confidentially discuss email Peter at pmanetta@mpcpas.com.

Whitman Transition Advisors has been helping CPA firms with their M&A needs since 2003. We are working with several new buyers in the marketplace that are paying cash up front, regardless of firm size. If your revenues exceed $1.50MM annually then we should talk today!

To confidentially discuss this opportunity, please email us at pw@ whitmantransition.com

Monmouth County CPA practice for sale. Approximately $750,000 annual revenue. Individual, business and trust income tax, including year-round advisement for high income clientele. Also write up and consulting services for solid year round income. Excellent growth opportunities within existing client base. No audits or reviews. The practice has a very strong fee structure. Owner will stay on for transition and is available to work. Reply in confidence at njcpa.org/classifieds

Traphagen CPAs & Wealth Advisors, a well-established firm in Bergen County with diverse client base and credentialed support staff is seeking small firms and sole practitioners for acquisition or merger. We are looking for firms ranging in size from $300K to $700K. This is an opportunity to align with a quality peer- reviewed firm, while continuing to provide your clients with exceptional service. To confidentially discuss this opportunity please email us at carolynn@tfgllc.com

Professional Services

Quality Review for CPA firms: Audit, Review, Compilation, Employee Benefit Plans, Yellow Book, Revenue Recognition, Leases. Contact James M. Sausmer, CPA at 732-261-7710 or james.sausmer@gmail.com

Seize a merger/acquisition opportunity with benefits for you. We are looking for firms ranging from $300,000 to $5,000,000 eager to combine forces as we continue to grow across northern NJ, Westchester and the Hudson Valley region. Goldstein Lieberman & Company is ideally situated to service all types of industries. Visit www.glcpas.com; email me, Phillip Goldstein, CPA, Managing Partner, philg@glcpas.com; or call me at 800-839-5767 to have a confidential conversation.

Small firm with offices in Princeton and Metuchen looking to expand seeks purchase of practices. Our staff consists of 2 CPAs, one EA and support staff. Lets talk. Contact Joe Gormley CPA at 732-549-1116.

To see additional classified listings or to place an ad, visit njcpa.org/classifieds.

New Jersey Practices for Sale: Gross revenues shown: $194K Bergen County, NJ CPA; $700K Somerset/ Hunterdon County, NJ CPA; $1.236M Eastern Bergen County, NJ CPA; $2.107M Morris County, NJ Partnership; $825k Atlantic/ Cumberland County Area, NJ CPA; $165K Warren County, NJ CPA; $790K Union County, NJ CPA; $700K Southeast Passaic County, NJ CPA; Coming Soon $1.6M Central Middlesex County, NJ CPA; For more information, call 800-397-0249 or visit www.aps.net.