2021/22 Audit Report
By James Hardenberg, CPA, CGMA, CAE, NJCPA Chief Learning Officer and Interim CFO –
November 18, 2022
The combined financial statements for the
New Jersey Society of CPAs and Affiliates
(NJCPA Education Foundation and
NJCPA Scholarship Fund) for the year
ended May 31, 2022, have been published.
Fiscal 2022 mirrored fiscal 2021 in
that it was executed almost exclusively on
a virtual basis due to the ongoing, lingering
effects of the coronavirus pandemic.
NJCPA staff and volunteer leadership
continually monitored the latest developments
and evolving protocols throughout
the year to keep the safety of members at
the forefront of all programs and services.
Three NJCPA chapters hosted seven in-person,
face-to-face meetings from January
through May, which attracted approximately
On a combined basis, unrestricted
revenues decreased by 11.8 percent from
the prior year, with much of the decrease
attributable to market value declines for all
investment portfolios combined, especially
during the first five months of calendar
2022. Paycheck Protection Program (PPP)
loan forgiveness helped offset these portfolio
losses while education programs fees
decreased as is commonplace at the start of
a triennial licensing cycle.
New Jersey Society of CPAs
For the Society, membership dues revenue
was slightly higher compared to fiscal 2021;
a small dues increase helped offset a reduction
in dues paying members. Overall,
membership declined by the end of May
2022, though nearly 75 percent of this
decline was attributable to the Student and
CPA Candidate member categories.
Peer review fees also declined by 7.2
percent compared to the prior year as the
number of firms in the program continued
to be impacted by mergers, acquisitions
and practitioner retirements.
PPP loan forgiveness in fiscal 2022 also
helped buoy the year-end results and offset
the market value decrease in the NJCPA
investment portfolio. Total expenses were
held in check and decreased by 2.6 percent
compared to the prior fiscal year. Overall,
the Society experienced a solid increase
of $868,000 in net assets.
NJCPA Education Foundation
The Foundation continued to operate in
a “virtual-first” mode due to the lingering
effects of the pandemic. After a record
reporting year in fiscal 2021, which captured
the calendar 2020 triennial attendance
spike as well as the CPE compliance
extension granted by the New Jersey State
Board of Accountancy through June 2021,
attendance declined as is common at the
start of each licensing cycle. Program fee
revenue decreased by 24.7 percent in fiscal
2022 compared to the prior fiscal year
though the volume of virtual program
alliance opportunities continued to expand.
The Foundation ended the fiscal year with
a negative change to net assets of $101,000,
and though a negative result was expected,
it was better than budgeted.
NJCPA Scholarship Fund
With NJCPA chapters only beginning to
re-open toward the back half of the fiscal
year, chapter contributions to the Fund
were again held back for a second year in
a row. However, the Fund still managed to
provide $328,000 in scholarships during the
fiscal year. The Fund’s investment portfolio
also experienced similar declines as the Society
and the Foundation with the results being
a $332,000 negative change to net assets.