Document droNmBqReVZY1pG3VZxzObb6

Jt PLAINTIFF'S EXHIBIT SAG-45 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. ARLINGTON, VIRGINIA AUDITED FINANCIAL STATEMENTS MARCH 31, 1982 OFFICERS 1981-1982 Chairman of the Board K. F. Keefe Vice Chairman of the Board R. M. Edmiston President F. E. Wilcher, Jr. BOARD OF TRUSTEES V. J. Clauson R. M. Edmiston E. J. Fierle N. G. Friesenborg L. E. Goldstein D. E. Houston K. F. Keefe C. S. Shoup R. M. Thomas MURRAY, JONSON, WHITE & ASSOCIATES, LTD. A Professional Corporation Certified Public Accountants Arlington, Virginia DKS 166 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. TABLE OF CONTENTS Accountants' Report Balance Sheet Statement of Income and Expenses Statement of Changes In Financial Position Notes to Financial Statements Accountants' Report on Other Financial Information Schedule of Actual and Budgeted Incomeand Expenses 1 2-3 4 5 6 7 8 DKS 167 Board of Trustees Industrial Safety Equipment Association, Inc. We have examined the balance sheets of Industrial Safety Equipment Association, Inc. as of March 31, 1982 and 1981, and the related statements of income and expenses and changes in financial position for the years then ended. Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of Industrial Safety Equipment Association, Inc. at March 31, 1982 and 1981, and the results of operations and changes in financial position for the years then ended, in accordance with generally accepted accounting principles applied on a basis consistent with that of the previous year. April 23, 1982 DKS 168 1 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. ARLINGTON, VIRGINIA BALANCE SHEETS March 31, ASSETS 1982____________________ Current Assets Cash on hand $ 125' Cash in bank General account Payroll account Regular savings account $ 23,187 4,235 2,635 30,057 $ 36,217 540 2,500 Total Cash $ 30,182 Accounts receivable Members for dues and initiation fee Members for rebills Prepaid expenses $ 9,327 4,111 13,438 337 $ 1,027 9,277 Headforms inventory 1,927 Note receivable - Safety Equipment Institute - Note 3 25,000 Total Current Assets $ 70,884 Inves tments Certificates of deposit 7.25% due 8/1/81 7.50% due 12/1/81 10.5% due 11/16/82 $- 25,357 $ 20,969 23,755 25,000 12.455% due 5/20/82 26,177 11.274% due 6/1/82 24,977 U.S. Treasury notes - Note 1 7-5/8% due 8/15/81 7-3/4% due 11/15/81 - 8,107 9,978 9% due 8/15/82 at cost (market $29,'490) 29,771 29,771 Scudder Investment Fund - At cost which approximates market 55,322 24,156 Total Investments 161,604 Fixed Assets - At Cost Office furniture and equipment - Note 1 $ 9,669 Less: Accumulated depreciation 7,071 2,598 $ 7,416 6,055 Other Assets Security deposit 616 Total Assets $235,702 1981 $ 125 39.257 $ 39,382 10,304 1,118 - $ 50,804 141,736 1,361 616 $194,517 The accompanying notes to financial statements are an integral part of this statement. DKS 169 2 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. ARLINGTON, VIRGINIA ' BALANCE SHEETS March 31, (Concluded) LIABILITIES. AND EQUITY BALANCE _______ 1982__________ ______________ 1981 Current Liabilities Accounts payable Withholding taxes payable Wages payable Prepaid dues and rebills from members Advance fees and .deposits Annual Meeting Total Current Liabilities Commitment and Contingencies - Note 2 Equity Balance Beginning balance - April 1, Add: Excess of income over expenses - Page 3 Ending balance - March 31, $142,501 49.209 $ 2,861 4,038 377 6,611 30.105 $ 43,992 191,710 $138, $ 2,881 13,485 35.650 $ 52,016 Total Liabilities and Equity Balance $235,702 $194,517 The accompanying notes to financial statements are an integral part of this statement. DKS 170 3 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC ARLINGTON, VIRGINIA STATEMENT OF INCOME AND EXPENSES For the Years Ended March 31, Income Membership dues Initiation fees Interest and ^dividend income Sale of headforms and publications Annual Meeting income (loss) SIEC management fee SEI management fee Mid-Year Meeting income Miscellaneous Total Income Expenses Administrative expenses Salaries, fringes and payroll taxes Office occupancy Equipment leases and service Stationery, supplies, and printing Postage Telephone and telegraph Travel Meeting expense Dues and subscriptions Contingencies Counsel fees Counsel expense Insurance Accounting service Public relations Automobile expense Total Administra-- tive Expenses Non-budget expenses Bank charges and miscellaneous Depreciation expense Total Expenses Excess of Income over Expenses 1982 $200,056 9,825 14,966 1,403 9,219 1,500 15,500 712 485 $253,666 1981 $171,971 5,958 13,581 526 (3,013) 1,500 278 786 $191,587 $117,235 14,336 5,441 2,700 3,539 3,716 2,391 3,479 3,724 1,004 26,278 2,191 1,609 1,350 9,399 4,885 $203,277 164 1,016 $204,457 $ 93,953 12,958 6,105 3,116 3,591 3-, 873 3,843 3,450 3,130 827 24,070 4,101 1,278 1,275 16,026 4,788 $186,384 896 $187,280 $ 49,209 $ 4,307 The accompanying notes to financial statements are an integral part of this statement. DKS 171 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. ARLINGTON, VIRGINIA STATEMENT OF CHANGES IN FINANCIAL POSITION (WORKING CAPITAL) For the Years Ended March 31, Sources of Working Capital Excess of Income over expenses Add: Expenses not requiring working capital Depreciation Working Capital from Operations Other sources of working capital Maturity of U.S. Treasury notes Total Sources of Working Capital Applications of Working Capital Investments Certificates of deposit Scudder Fund Purchase of fixed assets Total Funds Applied General Operating Accounts 1982 1981 $49,209 $ 4,307 1,016 $50,225 896 $ 5,203 18,085 $68,310 $ 5.203 $ 6,787 31,166 2,253 $40,206 $ 28,160 2,886 499 $ 31,545 Increase (Decrease) In Working Capital $28,104 $(26,342) Increases (Decreases) in Elements of Working Capital Cash Accounts receivable Prepaid expenses Notes receivable Prepaid membership dues Advance fees and deposits Accounts payable Wages payable Payroll taxes payable Increase (Decrease) in Working Capital $(9,200) . 3,134 1,146 25,000 6,874 5,545 (2,861) (377) (1,157) $28,104 $(21,399) (1,020) 140 " 897 (11,720) 7,361 '(601) $(26,342) The accompanying notes to financial statements are an integral part of this statement. DKS 172 5 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. ARLINGTON, VIRGINIA NOTES TO FINANCIAL STATEMENTS NOTE 1 - Accounting Policies and Presentation The significant accounting policies of the Association are as follow: (a). The Association has been granted tax exempt status under the -Internal Revenue Code Section 501(c)(3). Income is derived from assessment to members based on a predetermined annual formula. Billings are issued and payable on a quarterly basis. (b). The financial statement is presented on the accrual basis of accounting. (c). Depreciation on office furniture and fixtures is computed on a straight-line basis, with a life of eight years. (d). Investments are carried at cost. The Association has a policy of not amortizing discount and premiums on Treasury notes, which are regarded as immaterial in amount. NOTE 2 - Lease Commitment The Association occupies office which expires June 1, 1985 , for an $13,341. space under a lease agreement annual rental of approximately NOTE 3 - The Association has advanced $25,000 to establish the Safety Equipment Institute. The.advance was made free of interest; payment is due July 1, 1982. DKS 173 6 Board of Trustees Industrial Safety Equipment Association, Inc. The audited financial statements of the Association and our report thereon are presented in the preceding section of this report. The schedule of actual and budgeted information presented hereinafter, excepting the budget information, was derived from the accounting records tested by us as part of the auditing procedures followed In our examination of the aforementioned financial statements, and In our opinion, it is fairly presented in all material respects In relation to the financial statements taken as a whole; however, it is not necessary for a fair presentation of the financial position and results of operations of the Association. The budget amounts shown hereinafter in the schedule of actual and budgeted expenses were obtained from non-accounting records of the Association; we compared these amounts with the records from which they were obtained, and found them to be in agreement, but we did not make Independent tests thereof as they do not involve information which enters into the financial statements. April 23, 1982 Certified Public Accountants DKS 1'14 7 INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION, INC. ARLINGTON, VIRGINIA SCHEDULE OF ACTUAL AND BUDGETED INCOME AND EXPENSES Year Ended March 31, 1982 Income ._ Membership dues and initiation fees Interest SIEC manangement fees SEI management fees Other Total- Revenue Expenses Salaries, fringes and payroll taxes Office occupancy - Rent Equipment leases and services Stationery and supplies, printing Postage Telephone and telegraph Travel Meeting expense Dues and subscriptions Contingencies Counsel fees . Counsel expense Insurance Accounting services Public relations Automobile expense Total Expenses Income Over Expenses Actual $209,881 14,966 1,500 15,500 11,819 $253,666 Budget $200,395 11,000 1,500 - 300 $213,195 $117,235 14,336 5,441 2,700 3,539 3,716 2,391 3,479 3,724 1,004 26,278 2,191 1,609 1,350 9,399 4,885 $203,277 $ 50.389 $108,675 13,800 6,500 3,300 4,500 3,800 4,400 2,500 3,300 1,200 31,500 3,000 1,400 1,300 16,650 5,000 $210,825 $ 2,370 Actual to Budget $ 9,486 3,966 - 15,500 11,519 $40,471 $(8,560) (536) 1,059 600 961 84 2,009 (979) (424) 196 5,222 809 (209) (50) 7,251 115 $ 7,548 $48,019 DKS 175 8 -* INCOME AND EXPENSE BUDGET INDUSTRIAL SAFETY EQUIPMENT ASSOCIATION April 1, 1982 - March 31, 1983 INCOME Dues Product Group Fees Initiation Fees Interest and Dividends SIEC Management Fee SEI Management Fee SEI Office Occupancy Fee Mis cellaneous TOTAL $192,500 23,000 3,000 14.000 1,500 51.000 12,000 1,350 12987350 EXPENSES Salaries, Fringes and FICA Office Occupancy Equipment Leases & Service Stationery, Supplies, Printing Postage Telephone & Telegraph Travel Meeting Expense Dues & Subscriptions Contingencies Counsel Fees Counsel Expenses Insurance Accounting Services Public Relations Automobile Expense TOTAL $170,750 34,000 7,800 3,300 4,500 4,000 3,000 2,500 3,600 3,000 35,000 3,500 1,800 i,4oo 15,000 5,200 $298,350 DKS 176