Association of Professional Chaplains 2013-2014 Annual Report...Chaplaincy Care• Support •...

Association of Professional Chaplains

2013-2014 Annual Report

Chaplaincy Care• Support • Healing• Spirituality

Letter from the President and CEO

In the following pages, you will read of the accomplishments of the Association of Professional Chaplains for the year that began on November 1, 2013 and ended on October 31, 2014. It is an honor for us to serve as president and CEO of this dynamic organization whose members are in many arenas, serving many people. It is thanks to our many dedicated members and volunteer leaders that our association continues to strengthen and grow, offering a multitude of resources for members, and a unified voice for diverse chaplains to our profession, our employers and those we serve.

We reached a new milestone as membership increased from 4,449 in 2013 and 5,097 in 2014. The number of BCCI certified chaplains also increased by 117 to a total of 3,430 as of October 31, 2014.

We journey together to set the direction of our organization and advance the chaplaincy profession. To guide us, we have the APC Strategic Plan, which the board has agreed to review at each meeting to make certain that our actions and activities are connected to accomplishing it. Our Strategic Plan focuses on: 1) Clinical Practice to help clarify what we do, improve it, and prepare for the future; 2) Organizational Identity to help us see who we are and to become what we can fully become; 3) Research to fill in the gaps of chaplains doing research, reading research properly and utilizing it to inform what we do as professional chaplains; and 4) Technology to develop and to deliver our best products technologically to our members.

As a result of focusing on our Strategic Plan, we hope to become better advocates for our profession. In the year ahead, we ask each of you to join us in helping to accomplish our strategic goals and advocating for our profession.

I don’t know what this year will bring with its blessings and challenges, but we invite you to join us in our efforts to bring our best to this world, those around us daily and APC, and to do our part in helping to fulfill our Strategic Plan.

Thank you for your continued support; it is essential for the success of our profession and our organization. APC reflects, serves and represents YOU.

Peace,

Rev. Darryl I. Owens MDiv CT CPLC BCCPresident

Patricia F. Appelhans JDChief Executive Officer

Rev. Darryl I. Owens MDiv CT CPLC BCC

Patricia F. Appelhans JD

Quality• Ethics • Professional Standards • Hope

APC 2013- 2014 Highlights

2014 Chaplain Symposium: APC developed and held our first one-day regional symposium, which was a success. With the theme of “Aligning Chaplaincy with Emerging Health Care Reali-ties,” it provided timely and relevant low-cost continuing educa-tion for members. Held on March 6, 2014, the symposium had 57 in-person participants and 171 participating sites, with an esti-mated 900 viewers participating remotely.

Membership: For the first time this year, APC offered online pay-ment of membership dues and certification fees. APC member-ship increased by 598, putting us past the 5,000 mark with a total of 5,097 members as of October 31, 2014.

Certification: The number of BCCI certified chaplains also in-creased by 117 to a total of 3,430 as of October 31, 2014. Of those, 3,135 are designated board certified chaplains.

Hospice and Palliative Care Specialty Certification: Four board certified chaplains received this designation in 2013-14, and ad-ditional applications were in process. APC is delighted to recognize the expertise, specialized skills, advanced education and unique experience of these professional hospice/palliative care chaplains with the board certified chaplain - hospice and palliative care certi-fied (BCC-HPCC) designation.

Professional Ethics: APC developed and held a one-day, face-to-face training session for nine Professional Ethics Committee mem-bers on the Collaborative Ethics Process between APC and ACPE. Maintaining a consistent and fair ethics process is essential to the integrity of our certification. The code of ethics to which our certi-fied chaplains must adhere provides assurance to employers and care recipients.

2014-2016 Strategic Plan: The plan was developed with a focus on Clinical Practice, Organizational Identity, Research and Technology. The APC board, committees and task forces made the Strategic Plan a priority and began to focus resources on the strategic goals.

Dialogue with The Joint Commission: A task force was formed with representatives from APC and the National Association of Cath-olic Chaplains, the Association for Clinical Pastoral Education, the COMISS Network and the National Association of Veterans Affairs Chaplains. Together, the organizations began to develop a plan to

advocate with The Joint Commission to require board certified chaplains at their institutions. The task force had a face-to-face meeting with The Joint Commission in July 2014 and discussed ways in which chaplaincy profes-sional organizations can get information to The Joint Commission surveyors. APC and our cognate partners will share leading practices on the provision of spiritual care with The Joint Commission for their Leading Practice Library. APC and our cognate partners have been invited by The Joint Commission to submit articles on the need for board certified chaplains for The Joint Commission Surveyors monthly newsletter. The task force will continue to work with The Joint Commission.

The Association of Professional Chaplains is a multifaith nonprofit organization of chaplaincy care providers endorsed by faith groups to serve persons in need, respecting their individual cultures, identities and beliefs, in diverse settings throughout the world.

Standards of Practice: Following the release of Standards of Practice for Profes-sional Chaplains in Acute Care, and in Long-term Care, the Quality in Chaplaincy Care Committee assembled a group of chaplains with experience and expertise in hospice/palliative care to work on Standards of Practice for Professional Chaplains in Hospice and Palliative Care. The Standards of Practice for Professional Chaplains in Hospice and Palliative Care document is a fluid document that will change as health care chaplaincy continues to mature and as situations change. The standards of practice were published for comment in APC e-News, November 2013, Vol. 15 No. 7. Initial feedback was integrated into the standards, which were presented to the APC board for affirmation in June 2014. The standards were then forwarded to the boards of our organizational partners with the request that they join us in affirming and supporting them.

2014 Annual Conference: Held in Anaheim, CA, the 2014 conference utilized new technology. An app was developed for conference attendees to access essential information on their mobile devices, including their personal conference sched-ules. An enhanced registration system was also introduced, allowing participants to pay their conference registration online. In addition, a conference e-newsletter was developed and sent out periodically to APC members and registered participants with information about the conference, hotel and answers to frequently asked questions about the conference. Themed “Re:Imagine - the Art and Business of Professional Chaplaincy,” the conference drew 530 par-ticipants. Plenary sessions included TED-style “APC Strong” talks from Imam Yusuf Hasan, Margo Richardson and John Simon; “Moral Injury in Veterans” by Rita Nakashima Brock and Herman Keizer; “Patient Experience: Essential for High-Value Care” by Dr. James Merlino; and “Partnering with Congrega-tions in Health Care” by Gary Gunderson.

National Coalition for Hospice and Palliative Care (NCHPC): APC was invited to join NCHPC in January 2014 as the voice of chaplains. Other NCHPC members included: American Academy of Hospice and Palliative Medicine, Center to Advance Palliative Care, Hospice and Palliative Nurses Association, National Palliative Care Research Center, Social Work Hospice and Palliative Care Network and the National Hospice and Palliative Care Organization. APC has been advocating for board certified chaplains to be part of the palliative care interdisciplinary team along with physicians, nurses and social workers.

Leadership Awards: Each year, the APC recognizes individuals who have made outstanding contributions to chaplaincy. From administrators who demonstrate exceptional commitment to the development of chaplaincy programs to chaplains who provide chaplaincy care in an exemplary manner, we celebrate the gifts of those who promote professional chaplaincy. The award recipients for 2014 were Christina M. Puchal-ski, Distinguished Service; Bonnie J. Meyer, Anton Boisen Profes-sional Service; Russell N. Myers, Outstanding Local Leadership; and Milton P. Snyder, Retired Chaplain. Leadership awards were presented on June 21 at the 2014 APC Annual Conference in Anaheim, CA. In addition, the Oskar Pfister Award, given by the American Psychiatric Association (APA) in collaboration with APC, was presented to C. Robert Cloninger at the APA Institute on Psychiatric Services on May 5, 2014 in New York, NY.

Beliefs• Culture• Religion• Humanity• Values

Peace• Wholeness• Meaning• Presence• Prayer

APC Board of Directors 2013-2014• Rev. Valerie R. Storms BA MDiv BCC, president, Executive Committee chair

• Rev. Darryl I. Owens MDiv CT BCC, president-elect, Executive Committee, Nominating Committee chair

• Rev. Dr. Marcia L. Marino BCC, treasurer, Ex-ecutive Committee, Finance Committee chair

• Rev. Kimberly Murman MDiv MA BCC, secre-tary, Executive Committee, Personnel Com-mittee chair, Finance Committee member, Nominating Committee member

• Joseph Perez BCC, BCCI representative, Executive Committee, BCCI Commission on Certification chair, Nominating Committee member

• Dr. Mary-Margaret (Margie) Atkinson BCC, director, Standards Committee board liaison

• Rev. Dr. Daniel H. Grossoehme BCC, director, Quality in Chaplaincy Care Committee chair

• Rev. Dr. Janet R. McCormack BCC, director, Personnel Committee member

• Rev. Floyd G. O’Bryan BCC, director, Member-ship Committee board liaison, Development Committee board liaison

• Rev. Dr. Ronald Oliver BCC, director, Educa-tion Committee board liaison, Quality in Chaplaincy Care Committee member

• Rev. Martha H. Rucker MDiv BCC, director, Professional Ethics Committee chair, 2015 Conference Planning Committee board liaison

• Rev. John Simon BCC, director, 2014 Conference Planning Committee board liaison, Finance Committee member

• Jana Troutman-Miller BCC, director Standards Committee member, Quality in Chaplaincy Care Committee member

• Ex-officio, Patricia F. Appelhans JD, Chief Executive Officer

APC’s affiliate, the Board of Chaplaincy Certification Inc., offers chaplains the opportunity to demonstrate their commitment to excellence through certification. Candidates demonstrate their competence, qualifications and ability to function as a professional chaplain. One purpose of certification is to assure the public and the employing organization that the chaplain has met established national standards for professional competence, and is held to a code of ethics. A second purpose is to promote the continuing education and development of certified chaplains.

National Office Staff• Patricia F. Appelhans JD, Chief Executive Officer

• Carol Pape CAE, Chief Operating Officer

• Rita Kaufman CAE, Manager of Marketing and Education

• Donna Kraar CMP, Conference and Meetings Manager

• Ewa Aksamit, Certification Coordinator

• Kim Clark, Administrative Coordinator

• Diane Gerard, Membership Coordinator

• Karen Parry, Certification Coordinator

• Heidi Staat, Meetings and Education Coordinator

• Beth Stalec, Continuing Education Coordinator

Members of the 2013-14 APC board included (standing) Ronald Oliver, Martha Rucker, John Simon, Floyd O’Bryan, Jana Troutman-Miller, Daniel Grossoehme, (seated) Mary-Margaret Atkinson, Darryl Owens, Valerie Storms, Kimberly Murman, Joseph Perez, Patricia Appelhans and Marcia Marino.

DonorsNovember 1, 2013- October 31, 2014

Inclusivity• Diversity• Multifaith• Sacred

At the 2014 conference Member Recognition Luncheon, 50th and 25th membership anniversaries were honored. Pictured above are mem-bers in attendance who celebrated their 25th year of membership, David Klingensmith BCC, Marcia Marino BCC and Karen Ballard BCC

Chaplain Refat AbukhdeirRev. Kenneth AdditonChaplain Clark AistMr. Joseph ArchieRev. Robyn Axel-AdamsRev. S. BagleyChaplain Royce BallardChaplain Melba BanksMrs. Debora Barr-WrightChaplain Bruce Baum-bergerRev. Gina BiddleRev. Louis BierChaplain Willard BlackallChaplain Troy BlanRev. Dr. William BoldinRev. Mark BonsignoreDr. Marcus BramblettRev. James BrandisRev. Thomas BrennerRev. Gloria BrownRev. J. Michael CampbellRev. John CarrRev. Clyde CassimyRev. Carolann CelellaRev. Lorraine ChamberlainRev. Andrew ChaoChaplain Randall ChapmanChaplain Janet ClarkRev. Dennis ColeRev. Elizabeth CollierRev. Rhonda CooperRev. Emily DavisFather Joseph DetermanRev. George DoeblerRev. E. Scott DowChaplain Michael DunnRev. Peter DyckRev. Brand Eaton

Chaplain Eileen EnglishDr. Hugh FlemmingRev. Austin FrederickRev. Amy FurthRev. Enos GardinerChaplain David GarmanRev. Jena GarrisonChaplain Anne GentileRev. Denise GiacomozziRev. James GibbonsRev. Elizabeth GliddenChaplain Ellen GoodChaplain Carl GreenawaldChaplain Phyllis GreeneRev. Edith GreenleeChaplain Jerry GriffinDr. Alexandra GulianoChaplain Paul HaberstockRev. Jacalynn HarrisonRev. Henry HeffernanChaplain John HellerRev. William HockerChaplain Malcolm HoffmanRev. Janet HogstromChaplain Judith HoldingChaplain Lawrence HolstRev. Cam HolzerRev. Brian HurleyRev. David HurstRev. Louise Hutchinson

Rev. Susan JacquesRev. Tammy JamesChaplain Glendon JantziRev. George JarrellRev. Susan JelinekRev. Dr. Carole JohannsenRev. David JohnsonChaplain Kizzie JonesRev. Christine Jones-LeavyDr. Dennis KennyChaplain B. KinyonRev. Linda KnightRev. Marty KnorreRabbi Lowell KronickChaplain Phillip Lamar

Chaplain David LangdonFather Ronald LawsonRev. Garth LehmanRev. Arthur LillicroppRev. Ezra LuessenRev. Louise MacClanahanRev. Robert MaderRev. Craig MalbonRev. Marcia MarinoChaplain Angela MavesMr. Roy McAlpineChaplain Ella McCarrollDr. David McCurdyRev. Vernon McNearRev. Dr. James MelickRev. Hazel MichelsonChaplain Robert MorganRev. Kate MorseRev. Jeffery MurphyChaplain Alain Ndagiji-manaRev. Dr. Hiltrude Nusser-TelferRev. Gabriel OjihRev. Darryl Owens

With the generous support of our donors, APC promotes quality chaplaincy care of all persons in need by developing continuing education to strengthen professional excellence, establishing standards for board certification and professional practice, and providing essential information, knowledge and resources to chaplaincy professionals and institutions in which they serve.

Donors

Blessing • Clarity• Renewal • Listen • Comfort

Rev. Donald PattersonChaplain Joseph PerezRev. Douglas PhillipsRev. Nancy PiggottDr. Olive PoliksChaplain T. PonceChaplain R. Eugene PriceChaplain Stephen PrusinskiRev. Scott RailsbackRev. Carol Ramsey-LucasRev. Patricia RayRev. David ReevesDr. Ronald RoppRev. Jeffery ScheerChaplain Rozann ShackletonRev. Carol ShafferChaplain Thomas ShafferChaplain John ShawRev. Eleftheria SidiropoulouRabbi Jeffery SilbermanMarshall Sloane

Chaplain Satoe SogaChaplain Virgil SprungerChaplain Jeffrey StockChaplain James StoelRev. Eileen StoneChaplain Carolyn StrzyzykowskiMrs. Patricia TillmanChaplain Mark TjepkemaChaplain Jana Troutman-MillerRev. Edward UllrichDr. Glennys UlschakRev. Wayne Van KampenRev. Betty Vander LaanRev. Teunisje VelthuizenRev. John WatkinsRev. Daniel WengerChaplain Emanuel WilliamsChaplain James WilliamsChaplain C.H. (Skip) WisenbakerChaplain David Wolfe

Chaplain James YoderRev. Dr. Mary Zimmerli

Mundhenke FundDavid Campbell

In Honor ofIn honor of Wendy Cadge and Rabbi Terry Bard - Rev. Louis Bier

In Memory of In Loving Memory of Gregg Selander - Chaplain Carolynne FairweatherIn Memory of Frank Moyer - Chaplain Julian ByrdIn Memory of Sr. Charles Burrows - Rev. Valerie Storms

The 335 chaplains who were ratified as board certified, associate certified or provisional certified in the past year were celebrated during the annual conference Grand Banquet. Below are members of the class of 2013-2014 who attended the conference.

The mission of the Association of Professional Chaplains is to promote quality chaplaincy care through advocacy, education, professional standards and service to our members.

Values• Dignity and worth of all persons.• Faith as an essential dimension of wholeness.• Chaplaincy care of persons, communities, organizations

and systems.• Inclusivity and diversity.• Justice and equality for all.• Professional competency and ethical practice.

Vision• Strengthen the multifaith and multicultural professional

competency of chaplains.• Empower chaplains to demonstrate quality outcomes to

those whom they serve.• Demonstrate the distinctive value of professional chaplain-

cy, which can be understood by external stakeholders.• Collaborate with accrediting and hiring institutions, as

well as other organizations with which we have a common interest, in order to promote professional chaplaincy.

Mission Fulfillment: Financial Overview of APC and BCCI Activities

$504,421 29% $509,922 32% $284,382 19% $35,837 3% $97,593 6% $73,942 4% $119,380 5% $24,203 2% $13,343 0% -$11,711 0% $843 0%$1,652,155 100% Total

30%

30%

17%

2% 6% 4% 7%

2% 1% -1% 0%

APC & BCCI Support and Revenue

Member duesCertification maintenanceConferencesContributionsApplication feesCommunication & publicationsEducationInterest & dividendsRealized gain on investmentsUnrealized loss on investmentsMiscellaneous

$1,195,180 74%

$331,825 25%

$11,314 1%

$1,538,319 100%

Total

74%

25% 1%

APC & BCCI Expenses

Program services

General & administrative

Fundraising

Evidence-based• Holistic• Interdisciplinary

ASSOCIATION OF PROFESSIONALCHAPLAINS, INC.

AND BOARD OF CHAPLAINCY CERTIFICATION, INC.

Consolidated Financial Statements and Supplementary Information

As of October 31, 2014 andfor the Year then Ended

Association of Professional Chaplains, Inc.and

Board of Chaplaincy Certification, Inc.

Annual Financial Report

Table of Contents

Independent Auditor’s Report ..........................................................................................................1 - 2

Consolidated Financial Statements

Statement of Financial Position.......................................................................................................3

Statement of Activities ...................................................................................................................4

Statement of Cash Flows .................................................................................................................5

Notes to Consolidated Financial Statements ..................................................................................6 - 14

Supplementary Information

Consolidating Statements of Financial Position............................................................................15

Consolidating Statements of Activities .........................................................................................16

Consolidating Statements of Functional Expenses........................................................................17

Desmond &Ahern, Ltd.CERTIFIED PUBLIC ACCOUNTANTS & CONSULTANTS

Independent Auditor’s Report

To the Board of Directors ofAssociation of Professional Chaplains, Inc. andBoard of Chaplaincy Certification, Inc.Schaumburg, Illinois

We have audited the accompanying consolidated financial statements of the Association of Professional Chaplains, Inc. and Board of Chaplaincy Certification, Inc. (nonprofit organizations), which comprise the consolidated statement of financial position as of October 31, 2014 and the related consolidated statements of activities, and cash flows for the year then ended, and the related notes to the consolidated financial statements. We have previously audited the Association of Professional Chaplains, Inc. and Board of Chaplaincy Certification, Inc.’s 2013 consolidated financial statements, and we expressed an unmodified audit opinion on those audited financial statements in our report dated March 21, 2014. In our opinion, the summarized comparative information presented herein as of and for the year ended October 31, 2013, is consistent, in all material respects, with the audited consolidated financial statements from which it has been derived.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated 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

Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated financial

10827 S. WESTERN AVENUE, CHICAGO, IL 60643-3206 • PHONE 773-779-4720 • FAX 773-779-8310www.desmondcpa.com

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, we 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 consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Association of Professional Chaplains, Inc. and Board of Chaplaincy Certification, Inc. as of October 31, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Other Matters

Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The accompanying supplementary information, as listed in the table of contents, is presented for purposes of additional analysis and is not a required part of theconsolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare theconsolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

February 20, 2015Chicago, IL

-2-

See independent auditor's report and notes to the consolidated financial statements.-3-

ASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. AND BOARD OF CHAPLAINCY CERTIFICATION, INC.CONSOLIDATED STATEMENT OF FINANCIAL POSITIONAs of October 31, 2014 (with comparative totals for 2013)

2014 2013AssetsCurrent Assets Cash and equivalents 642,821$ 165,049$ Investments 1,113,620 1,154,905 Accounts receivables 1,555 3,335 Inventory 12,102 7,928 Prepaid expenses 57,136 44,958 Total current assets 1,827,234 1,376,175

Property and Equipment Furniture and fixtures 256,196 241,089 Less accumulated amortization and depreciation (215,779) (196,673) Net property and equipment 40,417 44,416

Other Assets Cash, permanently restricted 57,838 57,759 Total Assets 1,925,489$ 1,478,350$

Liabilities and Net AssetsLiabilities Accounts payable and accrued liabilities 7,968$ 13,503$ Accrued expenses 70,142 71,196 Deferred dues and webinar fees 233,178 65,495 Deferred certification income 218,265 34,330 Deferred rent 22,360 34,468 Total Liabilities 551,913 218,992

Net Assets Unrestricted (including designated net assets of $50,953) 1,311,847 1,198,011 Temporarily restricted 3,891 3,588 Permanently restricted 57,838 57,759 Total Net Assets 1,373,576 1,259,358 Total Liabilities and Net Assets 1,925,489$ 1,478,350$


ASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. AND BOARD OF CHAPLAINCY CERTIFICATION, INC.CONSOLIDATED STATEMENT OF ACTIVITIESFor the Year Ended October 31, 2014 (with comparative totals for 2013)

ConsolidatedTemporarily Permanently 2014 Total

Unrestricted Restricted Restricted Total 2013Support and RevenueMembership dues 504,421$ -$ -$ 504,421$ 450,901$ Certification maintenance 509,922 - - 509,922 493,229 Conferences 284,382 - - 284,382 292,308 Contributions 35,837 - 79 35,916 42,870 Application fees 97,593 - - 97,593 92,431 Communication and publications, net of cost of goods sold of $8,334 73,942 - - 73,942 64,348 Education 119,380 - - 119,380 81,231 Interest and dividends 24,203 303 - 24,506 32,036 Realized gain on investments 13,343 - - 13,343 (5,087) Unrealized loss on investments (11,711) - - (11,711) (758) Miscellaneous 843 - - 843 1,386 Total support and revenue 1,652,155 303 79 1,652,537 1,544,895

ExpensesProgram services 1,195,180 - - 1,195,180 1,039,771 General and administrative 331,825 - - 331,825 352,628 Fundraising 11,314 - - 11,314 13,759 Total expenses 1,538,319 - - 1,538,319 1,406,158

Change in net assets 113,836 303 79 114,218 138,737

Net assets, beginning of year, 1,198,011 3,588 57,759 1,259,358 1,120,621 Net assets, end of year 1,311,847$ 3,891$ 57,838$ 1,373,576$ 1,259,358$


ASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. AND BOARD OF CHAPLAINCY CERTIFICATION, INC.CONSOLIDATED STATEMENT OF CASH FLOWSFor the Year Ended October 31, 2014 (with comparative totals for 2013)

2014 2013Operating ActivitiesChange in net assets 114,218$ 138,737$ Adjustments to reconcile change in net assets to net cash (used in) operating activities Depreciation and amortization 19,106 14,533 Net unrealized/realized (gain) loss on investments (1,632) 5,845 Contribution restricted to endowment (79) (1,000) Change in assets - decrease (increase) Accounts receivable 1,780 10,881 Change in inventory (4,174) 9,742 Prepaid expenses (12,178) (16,266) Change in liabilities - increase (decrease) Accounts payable and accrued expenses (6,589) (7,311) Deferred membership dues and webinar fees 167,683 (89,711) Deferred rent (12,108) (7,971) Deferred certification income 183,935 (98,730) Total cash provided by (used in) operating activities 449,962 (41,251)

Investing ActivitiesPurchase of fixed assets (15,107) (30,173) Purchase of investments (434,696) (798,412) Proceeds from sale of investments 477,692 546,226 Total cash provided by (used in) investing activities 27,889 (282,359)

Net increase (decrease) in cash 477,851 (323,610) Cash and equivalents, beginning of year 222,808 546,418Cash and equivalents, end of year 700,659$ 222,808$

Summary of Cash and EquivalentsCurrent assets 642,821$ 165,049$ Permanently restricted cash 57,838 57,759

700,659$ 222,808$

Unrelated business income tax paid during year 13,777$ -$


ASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. AND BOARD OF CHAPLAINCY CERTIFICATION, INC.CONSOLIDATING STATEMENT OF FINANCIAL POSITIONAs of October 31, 2014 (with comparative totals for 2013)

ConsolidatedConsolidated Total

APC BCCI Eliminations Total 2013AssetsCurrent Assets Cash and cash equivalents 223,988$ 418,833$ -$ 642,821$ 165,049$ Investments 752,275 361,345 - 1,113,620 1,154,905 Accounts receivables 1,555 - - 1,555 3,335 Inventory 12,102 - - 12,102 7,928 Prepaid expenses 57,136 - - 57,136 44,958 Due from related party 551,642 - (551,642) - - Total current assets 1,598,698 780,178 (551,642) 1,827,234 1,376,175

Fixed assets Property and equipment 256,196 - - 256,196 241,089 Less accumulated depreciation (215,779) - - (215,779) (196,673) Net fixed assets 40,417 - - 40,417 44,416

Other Assets Cash, permanently restricted 57,838 - 57,838 57,759 Total Assets 1,696,953$ 780,178$ (551,642)$ 1,925,489$ 1,478,350$

Liabilities and Net AssetsCurrent Liabilities Accounts payable 7,968$ -$ -$ 7,968$ 13,503$ Accrued expenses 67,048 3,094 - 70,142 71,196 Deferred dues and webinar fees 233,178 - - 233,178 65,495 Deferred rent 22,360 - - 22,360 34,468 Deferred certification income - 218,265 - 218,265 34,330 Due to Association-related party - 551,642 (551,642) - - Total current liabilities 330,554 773,001 (551,642) 551,913 218,992

Net Assets Unrestricted (includes $50,953 board designated) 1,304,670 7,177 - 1,311,847 1,198,011 Temporarily restricted 3,891 - - 3,891 3,588 Permanently restricted 57,838 - - 57,838 57,759 Total net assets 1,366,399 7,177 - 1,373,576 1,259,358 Total Liabilities and Net Assets 1,696,953$ 780,178$ (551,642)$ 1,925,489$ 1,478,350$

NOTES TO CONSOLIDATED FINANCIAL STATEMENTSASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. ANDBOARD OF CHAPLAINCY CERTIFICATION, INC.October 31, 2014

Note 1 – Nature of Operations and Summary of Significant Accounting Policies

Nature of OperationsThe Association of Professional Chaplains, Inc. (APC) is a multi-faith membership organizationestablished to promote and develop pastoral care and professional chaplaincy as well as serve its membership through education and additional services. This tax-exempt, nonprofit membership association was organized and incorporated under the laws of the State of Illinois and while APCwas officially founded in 1998, the philosophy and mission of APC was encompassed in several earlier associations since 1946. APC promotes the establishment and development of spiritual care of persons as an essential dimension of total care and also provides standards for professional competency, public advocacy, professional collegiality, and networking. With currently over 5,000 members, primarily in the United States, the major revenue sources are membership dues and conference fees.

The Board of Chaplaincy Certification, Inc. (BCCI) is a non-profit organization whose purpose is to foster excellence in chaplaincy through board certification. This tax-exempt, nonprofit organization was organized and incorporated under the laws of the State of Illinois and was officially founded in 1987. In the 2009 fiscal year BCCI became responsible for a certification program previously run by APC.

Consolidated Financial StatementsThe accompanying financial statements reflect the consolidation of the Association of Professional Chaplains, Inc. and the Board of Chaplaincy Certification, Inc. All material inter-organizational accounts and transactions have been eliminated in consolidation.

Basis of AccountingThe accounts and financial statements are maintained on the accrual basis of accounting and accordingly, reflect all significant accounts receivable, payable, and other liabilities.

Basis of PresentationThe Organizations’ report information regarding financial position and activities according to three classes of net assets: unrestricted, temporarily restricted, and permanently restricted net assets, as required by Generally Accepted Accounting Principles (GAAP).

Use of EstimatesThe preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of the revenues, expenses, gains, losses, and other changes in net assets during the reporting period. Actual results could differ from those estimates.

-6-


Note 1 – Nature of Operations and Summary of Significant Accounting Policies (cont.)

Income TaxAPC has been granted an exemption from Federal income taxes pursuant to Section 501(c)(3) of the Internal Revenue Code. BCCI has been determined to be exempt from Federal income taxes pursuant to Section 501(c)(6) of the Internal Revenue Code. The tax exempt purpose of the Organizations and the nature in which they operate is described in the first paragraph of Note 1. The Association and the Board continue to operate in compliance with their tax exempt purpose.

APC's activities related to job opportunity postings on their website are subject to unrelated business income tax. For the year ending October 31, 2014, APC has incurred $8,533 of income tax expense related to these revenues.

The annual tax returns filed with federal and state governments are subject to examination for the statutory periods October 31, 2011 through 2014.

Cash and Equivalents and Concentration of Credit RiskCash and equivalents consists of deposits, including money market accounts, in insured accounts and short-term and highly liquid investments. At October 31, 2014, the Organizations’ cash accounts exceeded insured limits of the Federal Deposit Insurance Corporation by $18,794.

InvestmentsInvestments consist of corporate bond funds and market index funds, and are recorded at the fair market value. The fair market value of investments is based on quoted market prices. Realized and unrealized gains and losses are reflected in the Statement of Activities.

Accounts ReceivableAccounts receivable are stated at the amount management expects to collect from outstanding balances. Management considers accounts receivable to be fully collectible.

Prepaid ExpensesPrepaid expenses are expenditures made for an event, product or service that will occur or be utilized subsequent to year end.

InventoryInventory consists of novelty items and is stated at cost.

Property and EquipmentExpenditures for long-lived assets and items which substantially increase the useful lives of existing assets are recorded at cost. APC provides for depreciation and amortization on the straight-line method at rates designed to depreciate the costs of assets over estimated useful lives of three to seven years.

-7-


Note 1 – Nature of Operations and Summary of Significant Accounting Policies (cont.)

Deferred Dues and Webinar FeesMembership dues and webinar fees collected in advance have been included in deferred revenue in the accompanying consolidated statement of financial position. Such deferred revenue is substantially recognizable within one year.

Support and RevenueThe Organizations report gifts of cash and other assets as restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. If a restriction is fulfilled in the same time period in which the contribution is received, the Organizations’ report the support as unrestricted.

Membership due are recognized as revenue over the applicable membership period. The dues are recorded as deferred revenue until recognized as revenue. Contributions are recognized as revenue when they are received or unconditionally pledged.

Conference fees are recognized as revenue in the period when the conference is held. Fees received for future conferences are included in deferred revenue.

Functional ExpensesThe costs of providing the various programs and activities are presented on a functional basis in an accompanying supplemental statement. Expenses, which are easily and directly associated with a particular program or supporting service, are allocated directly to that functional category. Certain expenses such as salaries, benefits and office costs have been allocated among the various programs and supporting services benefited.

A summary of functional expenses for APC for the year ending October 31, 2014 is as follows:

Program 1,090,992$

General and administrative 321,488

Fundraising 11,314

1,423,794$

Note 2 – Fair Value Measurements and Investments

Generally Accepted Accounting Principles defines fair value as the price that would be received for an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants on the measurement date.

-8-


Note 2 – Fair Value Measurements and Investments (cont.)

Generally Accepted Accounting Principles establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value:

Level 1: Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level 2: Significant other observable inputs other then Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

In many cases, a valuation technique used to measure fair value includes inputs from multiple levels of the fair value hierarchy. The lowest level of significant input determines the placement of the entire fair value measurement in the hierarchy.

The fair value of debt and equity investments that are readily marketable are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs) or by quoted market prices of similar securities with similar due dates or matrix pricing, This is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities but rather by relying on securities’ relationship to other benchmark quoted securities (Level 2 inputs).

Assets Measured on a Recurring BasisAssets measured at fair value on a recurring basis are summarized below:

Level 1 Level 2 Level 3

Assets - Investments 1,113,620$ -$ -$

Level 1 Level 2 Level 3

Assets - Investments 1,154,905$ -$ -$

Fair Value Measurements at October 31, 2014

Fair Value Measurements at October 31, 2013

-9-


Note 2 – Fair Value Measurements and Investments (cont.)

A summary of investments at October 31, are as follows:

2014 2014 2013

Cost Market Value Market Value

Association

Equities 120,953$ 134,673$ 124,106$

Fixed income 623,756 617,602 831,449

744,709 752,275 955,555

Board

Fixed income 363,910 361,345 199,350

Total investments 1,108,619$ 1,113,620$ 1,154,905$

Note 4 – Prepaid Expenses

Prepaid expenses October 31, 2014 consists of:

Conferences 30,558$

Insurance 14,465

Other 12,113

57,136$

Note 5 – Designated and Restricted Net Assets

Changes in net assets for the fiscal year ending October 31, 2014:

Permanently

Board Temporarily Restricted

Designated Restricted Endowment Total

Net assets, beginning of year 50,953$ 3,588$ 57,759$ 112,300$

Investment return

Investment income - 303 79 382

Total investment return - 303 79 382

Contributions - - -

Appropriation of endowment

assets for expenditure - - - -

Net assets, end of year 50,953$ 3,891$ 57,838$ 112,682$

-10-


Note 5 – Designated and Restricted Net Assets (cont.)

Net asset composition by type of fund at October 31, 2014 are as follows:

Permanently

Board Temporarily Restricted

Designated Restricted Endowment Total

Board Designated Funds 50,953$ -$ -$ 50,953$

Mundhenke Mission & Programs - 3,891 37,838 41,729

Philips Endowed Lecture - - 20,000 20,000

Total Funds 50,953$ 3,891$ 57,838$ 112,682$

Board designated net assets at October 31, 2014 of $50,953 represent designations approved by the board. There are three designated purposes:

$20,000 to assist in funding the key speaker at the Annual Conference $20,000 for operational reserves and $10,953 to foster research and development projects

Temporarily restricted net assets at October 31, 2014 of $3,891 represents income earned on the Phillips endowment balance. The balance is restricted for a speaker honorarium at the annual conference for the Charles and Shirley Phillips Endowed Lectures.

The permanently restricted net assets are:

Mundhenke Mission & Programs: The Fund’s purpose is to financially support the Association of Professional Chaplain’s mission and programs with a preference for supporting the speaker for the Anton Boisen and Russell Dicks Memorial Lecture.

Phillips Endowed Lecture: The Fund’s purpose is to defray the costs of a key speaker chosen by the Association to lecture at each Annual Conference arranged through the Association to motivate its members to achieve excellence in the personal and spiritual skills required of them in their ministries. This lecture is to be known and publicized by the Association at the “Charles and Shirley Phillips Endowed Lectures.”

Interpretation of Relevant Law for Endowments

The governing body has interpreted the Uniform Prudent Management of Institutional Funds Act ("UPMIFA" as requiring the preservation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result

-11-



of this interpretation, the Association classifies as permanently restricted net assets (a) the original value of gifts donated to the permanent endowment, (b) the original value of subsequent gifts to the permanent endowment, and (c) accumulation to the permanent endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund.

The remaining portion of the donor-restricted endowment fund that is not classified in permanently restricted net assets is classified as temporarily restricted net assets until those amounts are appropriated for expenditure by the Association in a manner consistent with the standard of prudence prescribed by UPMIFA. In accordance with UPMIFA, the Association considers the following factors in making a determination to appropriate or accumulate donor-restricted endowment funds:

(1) The duration and preservation of the fund(2) The purposes of the Association and the donor-restricted endowment fund(3) General economic conditions(4) The possible effect of inflation and deflation(5) The expected total return from income and the appreciation of investments(6) Other resources of the Association(7) The investment policies of the Association

Return Objectives and Risk Parameters

The Association has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by it endowment while seeking to maintain the purchasing power of the endowment assets. Endowment assets include those assets of donor-restricted funds that the Association must hold in perpetuity or for a donor-specified period as well as board-designated funds. Under this policy, as approved by the Board of Directors, the endowment assets are invested in a manner that is intended to produce results that exceed the price and yield results of the S&P 500 index while assuming a moderate level of investment risk. The Association expects its endowment funds, over time, to provide an average rate of return .25% and 5% annually. Actual returns in any given year may vary from this amount.

Strategies Employed for Achieving Objectives

To satisfy its long-term rate -of-return objectives, the Association relies on a total return strategy in which investment returns are achieved through current yield (interest and dividend). The Association places a greater emphasis on fixed income investments to achieve its long-term return objectives within prudent risk constraints.

-12-



Spending Policy and How the Investment Objectives Relate to Spending Policy

The Association has a policy to set spending equal to the total return of the portfolio value each year unless specific endowment agreements limit the spending amount. In establishing this policy, the Association considered preservation of the principal on its endowment. Therefore, these funds may tend toward a more conservative investment strategy. This is consistent with the Association's objective to maintain the purchasing power of the endowment assets held in perpetuity or for a specified term as well as the provide additional real growth through new gifts and investment return.

Note 6 – Retirement Plans

The Association maintains a qualified 403(b) plan that covers eligible employees. Eligible employees make deferrals under the terms of the plan. The Association determines the employer contributions to the plan. The contributions for the year ended October 31, 2014 were $28,490.

Note 7 – Lease

The Association rents office space in Schaumburg, Illinois under a non-cancellable operating lease arrangement. The lease terms stipulate monthly rent in the amount of $6,629, plus annual escalations as defined in the lease agreement. The lease expires February 28, 2016. Rental and utilities expense for this lease included in the statement of activities for the fiscal year ended October 31, 2014 amounted to $95,970.

As the result of incentives executed at the lease inception, there is a difference between the rent expense using the straight line method over the term of the lease and the actual rent paid. The differences are recorded as deferred rent. Deferred rent at October 31, 2014 is $22,360.

Future minimum fiscal year payments under this lease are as follows:

2015 111,780$

2016 37,744

149,524$

Note 8 – Future Commitments – Annual Conferences

APC has contracted with hotels to provide accommodations and services for the Annual Conferences through 2016. In the event of cancellation by the Association, cancellation fees could be assessed upon projected revenue lost by the hotels. An estimate of fees for the 2015 and 2016 conferences is approximately $234,000.

APC has also contracted for event management services through 2016. Total annual fees for the contract amount to approximately $7,500.

-13-


Note 9 – Related Party

BCCI does not have staff of its own and pays APC for various services performed including managerial and program-related activities. For the year ended October 31, 2014, BCCI paid $208,674 to APC for these services.

Note 10 – Subsequent Events

For the year ended October 31, 2014, management has evaluated subsequent events through February 20, 2015, which is the date the financial statements were available to be issued. Nosubsequent events have been identified that are required to be disclosed.

-14-

SUPPLEMENTARY INFORMATION


ASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. AND BOARD OF CHAPLAINCY CERTIFICATION, INC.CONSOLIDATING STATEMENT OF ACTIVITIESFor the Year Ended October 31, 2014 (with comparative totals for 2013)

BCCI ConsolidatedTemporarily Permanently Consolidated Total

Unrestricted Restricted Restricted Unrestricted Eliminations Total 2013Support and RevenueMembership dues 504,421$ -$ -$ -$ -$ 504,421$ 450,901$ Certification maintenance - - - 509,922 - 509,922 493,229 Conferences 284,382 - - - - 284,382 292,308 Contributions 322,465 - 79 - (286,628) 35,916 42,870 Application fees - - - 97,593 - 97,593 92,431 Communication and publications, net of cost of goods sold of $2,369 73,942 - - - - 73,942 64,348 Education 119,380 - - - - 119,380 81,231 Management fees 208,674 - - - (208,674) - - Interest and dividends 19,568 303 - 4,635 - 24,506 32,036 Realized gain (loss) on investments 12,771 - - 572 - 13,343 (5,087) Unrealized (loss) on investments (8,816) - - (2,895) - (11,711) (758) Miscellaneous 843 - - - - 843 1,386 Total support and revenue 1,537,630 303 79 609,827 (495,302) 1,652,537 1,544,895

ExpensesProgram services 1,090,992 - - 480,617 (376,429) 1,195,180 1,039,771 General and administrative 321,488 - - 124,257 (113,920) 331,825 352,628 Fundraising 11,314 - - 4,953 (4,953) 11,314 13,759 Total expenses 1,423,794 - - 609,827 (495,302) 1,538,319 1,406,158

Change in net assets 113,836 303 79 - - 114,218 138,737

Net assets, beginning of year 1,190,834 3,588 57,759 7,177 - 1,259,358 1,120,621 Net assets, end of year 1,304,670$ 3,891$ 57,838$ 7,177$ -$ 1,373,576$ 1,259,358$

APC


ASSOCIATION OF PROFESSIONAL CHAPLAINS, INC. AND BOARD OF CHAPLAINCY CERTIFICATION, INC.CONSOLIDATING STATEMENT OF FUNCTIONAL EXPENSESFor the Year Ended October 31, 2014 (with comparative totals for 2013)

ConsolidatedGeneral and General and Consolidated Total

Program Administrative Fundraising Total Program Administrative Fundraising Total Eliminations Total 2013Salaries 441,284$ 137,633$ 2,454$ 581,371$ -$ -$ -$ -$ -$ 581,371$ 527,173$ Employee benefits 76,136 23,244 925 100,305 - - - - - 100,305 86,197 Payroll taxes 39,139 11,950 475 51,564 - - - - - 51,564 51,837 Retirement contributions 21,625 6,602 263 28,490 - - - - - 28,490 24,791

578,184 179,429 4,117 761,730 - - - - - 761,730 689,998

Conferences, meetings, and workshops 277,319 14,508 - 291,827 94,022 640 - 94,662 386,489 388,196 Management fees - - - - 158,592 47,995 2,087 208,674 (208,674) - - Contributions to others - - - - 217,837 65,925 2,866 286,628 (286,628) - - Dues and subscriptions 21,971 2,881 - 24,852 - - - - - 24,852 8,491 Equipment rental and maintenance 5,877 1,795 71 7,743 - - - - - 7,743 8,306 Insurance 4,760 1,453 58 6,271 - - - - - 6,271 6,352 Office 51,714 3,633 145 55,492 10,166 1,537 - 11,703 - 67,195 55,910 Other expenses 368 2,003 - 2,371 - - - - - 2,371 5,360 Outside services - 3,915 - 3,915 - - - - - 3,915 7,500 Professional fees - 54,819 - 54,819 - 4,905 - 4,905 - 59,724 43,072 Promotion - 500 5,565 6,065 - - - - - 6,065 6,171 Occupancy 75,433 23,031 916 99,380 - - - - - 99,380 99,373 Scholarships 2,550 - - 2,550 - - - - - 2,550 2,335 Staff development - 12,203 - 12,203 - - - - - 12,203 5,779 Information technology 22,888 8,357 266 31,511 - - - - - 31,511 37,415 Symposium 8,059 - - 8,059 - - - - - 8,059 - Travel 27,367 - - 27,367 - 3,255 - 3,255 - 30,622 19,717 Taxes - 8,533 - 8,533 - - - - - 8,533 7,650 Total expenses before depreciation 1,076,490 317,060 11,138 1,404,688 480,617 124,257 4,953 609,827 (495,302) 1,519,213 1,391,625

Depreciation 14,502 4,428 176 19,106 - - - - - 19,106 14,533 Total Expenses 1,090,992$ 321,488$ 11,314$ 1,423,794$ 480,617$ 124,257$ 4,953$ 609,827$ (495,302)$ 1,538,319$ 1,406,158$

APC BCCI

Association of Professional Chaplains 2013-2014 Annual Report...Chaplaincy Care• Support •...

Documents

Transcript of Association of Professional Chaplains 2013-2014 Annual Report...Chaplaincy Care• Support •...