2017 ANNUAL REPORT
Financial growth, strength, and diversity
Financial results for the Association of Social Work Boards, Inc., reflect growth, strength, and diversity. This growth provides organizational strength, as the association builds its reserve. Additionally, the association uses funds from growth to build diverse assets.
Under the association’s conceptual framework, 20 percent of net operating income is earmarked for general reserves and 80 percent of net operating income is earmarked for designated reserves. Designated reserves provide for the contingency of exam/legal defense (with a goal of $10 million funding) and for assurance of business continuation (with a goal of 18 months of operating expenses). Based on 2017 operating expenses, the designated reserves equal 78 percent of the combined goals.
The association has a portfolio of diversified investments professionally managed by Morgan Stanley. These investments are held in a conservative short-term fund and a moderately conservative long-term fund as defined by the association’s investment policy. The association’s acquisition of land and the ongoing development of the new headquarters represent another diversification of assets. Through December 31, 2017, the association had invested $2,398,000 in land for the facility and $275,000 in design and site development costs. Most of this cost has been covered via internal financing. Morgan Stanley offered a low-interest line of credit to help fund the purchase of land in 2016. By the end of 2017, the land loan had been paid off.
Download the 2017 financials in PDF format.
STABILITY. CONTINUITY. STEWARDSHIP.