Financial Statement
Fiscal Year Ending December 31, 2022
We are pleased to provide the American Jail Association’s Annual Auditor’s Report for the fiscal year ending December 31, 2022. In accordance with the bylaws of AJA, the books of accounts of the organization have been audited by the independent auditing firm of Smith Elliott Kearns & Company, LLC.
The audit produced an opinion based on review of our financial statements and accounting practices that the changes in our net assets and cash flow for the calendar year ending December 31, 2022 were in accordance with Generally Accepted Accounting Principles (GAAP). Further, that in the opinion of the auditors, the organization’s financial statements present fairly, in all material respects, the financial position of AJA for the year ending December 31, 2022, with no deficiencies in internal controls.
In summary, AJA had assets and liabilities of $1,186,666 in 2022, compared to $1,117,959 in 2021. Total revenues for 2022 were $2,141,069 compared to $1,558,643 in 2021. Total expenses in 2022 were $1,923,517 compared to $1,573,923 in 2021.
This resulted in a net-to-fund balance of $188,507 in 2022, compared to a net-to-fund balance of ($14,183) in 2021. In addition, we had net unrealized and realized losses on investments of ($29,045) compared with a gain $1,907 last year. This adjusted our end-of-year net assets to $177,047. Highlights of the Audit Report are as follows.
Revenue
Most revenue categories, with the exception of training seminars, increased significantly compared year over year and to budget. With the cancellation of the in-person AJA Conference & Jail Expo and replacement with a virtual conference for 2021, the amount of conference revenue in 2022 doubled to $1,165,845.
Operational revenue, which includes magazine advertising and membership dues, was $1,558,643 for the year. AJA also received a payment from the IRS for $274,760 for the Employee Retention Tax Credit.
Expenses
Expenses for 2022 totaled $1,923,517, which was an increase over $1,573,923 from the year prior.
Program expenses totaled $1447,03 for the year. General and administrative expenses totaled $476,514 for the year—this was a decrease from $506,987 over the prior year.
Investments and Net Assets
The association had net unrealized and realized losses on investments of ($29,045). End-of-year net assets were $201,939, which was down from $13,432 in the previous year.
For more information, please contact AJA headquarters.
Respectfully submitted by: Eddie K. Lance Treasurer American Jail Association
Statement of Financial Position
