1. MAINE HUMANITIES COUNCIL Maine Humanities Council 1 Financial Overview Presented by: Don Gaudet and Peter Hall RUNYON KERSTEEN OUELLETTE Recently, Maine Humanities Council completed the financial audit process. We are pleased to report that the Council received an unqualified “clean” opinion. Simply, this means that Maine Humanities Council’s financial statements are fairly presented in all material respects. Congratulations on this accomplishment. The remainder of this publication is dedicated to providing you with the results of the audit. We hope you find this information useful and understandable. Finally, we wish to express our appreciation to Erik, Mary and all the other members of the Council’s staff who were so helpful to us during the audit process. INSIDE 1. Assets 2. Liabilities and Net Assets 3-4. Revenues 5-6. Expenses 7. Ratio Analysis and Closing Remarks SUMMARY OF SIGNIFICANT CHANGES Increase in cash of is due to the timing of cash receipts and disbursements close to year end particularly with respect to receipt of expense reimbursements through various grant programs. Growth in investments due to better market returns and receipt of River Rock Foundation pledge of $250,000. Receivables declined primarily due to receipt of River Rock Foundation pledge payment coupled with close- outs of several government grants. Decrease in property and equipment is caused by another year’s worth of depreciation expense, only partially offset by new additions during the current year. FINANCIAL STATEMENT PRESENTATION October 31, 2007 ASSETS KEY PERFORMANCE INDICATORS

2. MAINE HUMANITIES COUNCIL Maine Humanities Council 2 SUMMARY OF SIGNIFICANT CHANGES The changes in both regrants payable and accounts payable are both due to the timing of the payment of invoices close to year end, coupled with payment this year of prior year’s TAH liability to MSAD 11. Increase in accrued expenses is due to the recording of the unpaid portion of the former Executive Director’s retirement compensation. Reduction in deferred revenue primarily associated with revenue recognized this year in connection with regrant expenditures. LIABILITIES NET ASSETS SUMMARY OF SIGNIFICANT CHANGES  Net investment in PP&E decreased by $15,000 due to another year’s worth of depreciation less current year’s additions. Temporarily restricted net assets represent funds that have been restricted by outside donors for a specified purpose or the passage of time. The increase versus the prior year is all associated with the Dorothy Schwartz Opportunity Fund. Permanently restricted net assets increased by $107,000 due to the earnings on the respective investment accounts. Undesignated net assets represents what’s left over after backing out the other classifications.

3. MAINE HUMANITIES COUNCIL Maine Humanities Council 3 REVENUES SUMMARY OF SIGNIFICANT CHANGES National Endowment for the Humanities (NEH) grants fell by $208,000 due to the closeout of several grants this year including We the People #1, Thoughtful Giving, and Hawthorne & Longfellow. Other grants increased by a net of $77,000 due to increased State funding, in particular for the Let’s Talk About It program. Contributions and gifts have fallen due to last year’s recognition of the River Rock Foundation grant of $250,000. Net investment income increased by $84,000 due to a higher investment base and stronger market conditions. Program income increased by $43,000 due to new programs this year including the Caring for the Caregiver conference and the Fall Weekend. In-kind revenue has fallen due to reduced donated non-cash resources in general, particularly in the Special Audiences programs.

4. MAINE HUMANITIES COUNCIL Maine Humanities Council 4 REVENUES, CONTINUED 2006 2007

5. MAINE HUMANITIES COUNCIL Maine Humanities Council 5 EXPENSES BY NATURAL CATEGORY SUMMARY OF SIGNIFICANT CHANGES Personnel has remained relatively flat compared to the prior year. Higher consultants expense is driven by final payments to TAH #1 contractors. Reduced in-kind expenses corresponds to the lower in-kind revenues mentioned earlier. Elimination of reserve for uncollectible accounts of $50,000 arises due to the receipt of the River Rock Foundation pledge payment this year. Travel expenses have fallen versus the prior year due to the closeout of several grants and the non-repeat of last year’s 30 th Anniversary event. Growth in regrants consistent with greater activity in this area. All other has fallen due to various other factors, including reduction in printing and publications costs.

6. MAINE HUMANITIES COUNCIL Maine Humanities Council 6 EXPENSES BY FUNCTION 2006 2007

7. MAINE HUMANITIES COUNCIL Maine Humanities Council 7 FINAL WORDS This presentation is intended as a tool to assist the Board of Directors and management of Maine Humanities Council in understanding its financial operating results. The information contained in this publication should be read in conjunction with the audited financial statements and related disclosures and should not be used for any other purposes without the expressed consent of RUNYON KERSTEEN OUELLETTE Please contact us at 207-773-2986 or 1-800-486-1784 20 Long Creek Drive, South Portland, ME 04106 FINAL WORDS This presentation is intended as a tool to assist the Board of Directors and management of Maine Humanities Council in understanding its financial operating results. The information contained in this publication should be read in conjunction with the audited financial statements and related disclosures and should not be used for any other purposes without the expressed consent of RUNYON KERSTEEN OUELLETTE Please contact us at 207-773-2986 or 1-800-486-1784 20 Long Creek Drive, South Portland, ME 04106 RATIO ANALYSIS