Financial Statement
Fiscal Year Ending December 31, 2021
We are pleased to provide the American Jail Association’s Annual Auditor’s Report for the fiscal year ending December 31, 2021. 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, 2021 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, 2021, with no deficiencies in internal controls.
In summary, AJA had assets and liabilities of $1,117,959 in 2021, compared to $1,459,300 in 2020. Total revenues for 2021 were $1,558,643 compared to $594,176 in 2020. Total expenses in 2021 were $1,573,923 compared to $1,370,205 in 2020.
This resulted in a net-to-fund balance of ($15,280) in 2021, compared to a net-to-fund balance of ($776,029) in 2020. In addition, we had net unrealized and realized gains on investments of $1,097 compared with a loss of ($66,410) last year. This adjusted our end-of-year net assets to $13,432. Highlights of the Audit Report are as follows.
Revenue
Most revenue categories, with the exception of a few, increased significantly compared year over year and to budget due to the COVID-19 pandemic in 2020. With the cancellation of the in-person AJA Conference & Jail Expo and replacement with a virtual conference for 2021, it resulted in $522,724 in conference revenue.
Operational revenue, which includes magazine advertising and membership dues, was $1,558,643 for the year. Membership dues showed a decrease due to the cancellation of the annual conference, which normally drives renewals and new memberships. Publication advertising revenue was down again year over year as demand continues to lessen.
Expenses
Expenses for 2021 totaled $1,573,923, which was an increase over $1,370,205 from the year prior.
Program expenses totaled $1,098,372 for the year. General and administrative expenses totaled $475,551 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 gains on investments of $1,097.
End-of-year net assets were $13,432, which was down from $27,615 in the previous year.
For more information, please contact AJA headquarters.
Respectfully submitted by:
Eddie K. Lance, CJM
Treasurer
American Jail Association
Statement of Financial Position
