Financial Statement
Fiscal Year Ending December 31, 2023
I am pleased to provide the American Jail Association’s Annual Auditor’s Report for the fiscal year ending December 31, 2023. 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, 2023 were in accordance with Generally Accepted Accounting Principles. 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, 2023, with no significant deficiencies in internal controls.
In summary, AJA had assets and liabilities of $1,144,091 in 2023, compared to $1,186,666 in 2022 with most of the difference being attributable to depreciation.
Revenue
Total revenues for 2023 were $1,879,756 compared to $2,141,069 in 2022. The primary reason for the drop in revenue was due to AJA receiving a COVID related Employee Retention Credit of $274,760 in 2022. If you remove that from the calculator, AJA’s total revenue actually increased by $13,447 between 2022 and 2023.
Expenses
Total expenses in 2023 were $1,980,987 compared to $1,923,517 in 2022. This resulted in a decrease of $95,663 in 2022, compared to a net-to-fund balance of $188,507 in 2022 – again with most of last year’s net being attributable to the Employee Retention Tax Credit.
Investments, Net Assets, Reserves
In addition, we had net unrealized and realized gain on investments of $5,568 compared with a loss of ($29,045) last year. At the end of 2022, we had $152,133 in our reserves. At the end of 2023, that amount had increased to $178,538 due to additional contributions we made. And last month, we moved an additional $50,000 from our operating funds to our reserves bringing the total to $228,538. Our goal for our reserves is $289,473, which would fully sustain operations for 3 months in case of another catastrophic event such as COVID. End-of-year net assets were $106,276 which was down from $201,939 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
