APPA: THE ASSOCIATION OF HIGHER EDUCATION FACILITIES OFFICERS Executive Summary, Preliminary Draft March 31, 2014 Audit

2014 Audit Highlights Unmodified (Clean) Opinion on GAAP Financial Statements. 2013 Statements updated to reflect proper recognition of income in the amount of $84,800. Total net income, $260,367 in FY 2014 compared to $159,085 (as restated) in FY 2013 Total Assets Increased 13% Total Liabilities Increased 13% Net Assets Increased 13% Net assets represent 47% of total expense compared to 44% in prior year

Review of Draft Financial Statements Statements of Financial Position Total Assets Increased 13% to $4,202,719 in FY 2014 ($ 3,731,230 in FY 2013). Significant changes in Assets: Cash/CD 539K Total Liabilities Increased 13% to $1,889,692 in FY 2014 from $1,678,570 in FY 2013. Significant changes in Liabilities: AP/Accrued Exp 66k Deferred Revenue 105k Net Assets Increased $260K Net Assets to Total Expense Ratio Industry Minimum Goal = 30-50% 2014 APPA = 47% 2013 APPA = 44%

Review of Draft Financial Statements Statements of Activities 2014 total revenue increased 8% to $5,180,198 Education 193k Membership 91k Supervisor’s Toolkit 72k 2014 expenses increase 6% to $4,919,831. Education 64k Publication 99k Membership 77k Expenses Presented on a Functional Basis (Costs Allocated to Programs and Supporting Services) in accordance with Nonprofit Standards. Cost Allocations Based on Estimates of Staff Time Devoted to Activities. Expenses also presented on a natural basis in the back of the audit report.

Review of Draft Financial Statements General Observations (ASAE 2–5 Million Range) Operating Efficiency Ratio (Total Revenue/Total Assets) 1.23, ASAE 1.1 Leverage (Total Liabilities / Total Net Assets), .82, ASAE .80 * Membership income represents 36% of total revenue, ASAE Median Benchmark is 39.9%. Source: ASAE 14th Edition of the Operating Ratio Report, Revenues $2-$5 million, 700 Associations reporting. Total personnel expenses as a percent of total revenue is 30.9%; ASAE 40.5%; similar budget Salary expense as a percent of total revenue is 23.2%, ASAE is 33.1%, similar budget Revenue per employee, $470,927, ASAE $228,609