Treasurer’s Report To NSPE Board of Directors July 24, 2008 Item 9.2 Attachment Treasurer’s Report To NSPE Board of Directors July 24, 2008

Overview Report looks at Operating Results for our fiscal year ended June 30, 2008 Report based on preliminary data, subject to final review & audit

Positive Results On a consolidated basis, the Society achieved a net operating surplus of $307,511 NICET achieved a substantial surplus of $291,304 NSPE General Fund earned a modest surplus of $3,205

NSPE General Fund Results Substantial shortfalls in revenue, both dues and non-dues Shortfalls offset by major expense savings Following slides address the major components of our year-end operating results

NSPE Operating Results Through June 30, 2008

Breakdown of Revenue (in millions)

Dues Revenue Dues revenue shortfall of $413,121 Revenue and membership decline continue (membership is 12.5% lower than in 2003) Earlier signs of a bottoming out in the decline were erased by very weak 4th quarter collections

5-Year Dues Revenue Trend Change by Year 2005 $(135,900) 2006 (201,000) 2007 ( 27,200) 2008 (146,400) No changes to dues rates

Non-Dues Revenue A few clear successes for certain products or programs Overall, a substantial shortfall from budgeted amounts Once again, numbers turned negative in 4th quarter Following charts provide more details on non-dues revenue.

Non-Dues Revenue Components

Non-Dues Revenue Programs Results for Top 7

Expenses Expenses were tightly controlled & closely monitored Major cost savings in program expenses Significant savings in staff & administrative costs, achieved mainly through downsizing Following charts provide more detail on expenses

NSPE Operating Expense Through June 30, 2008

Largest Program Savings Tenant rentals (21-30-001) $31,700 Governance (22-01-VAR) 34,700 Licensure (32-01-var) 50,000 Convention (32-03-021) 47,000 PE Magazine (32-06-001) 84,200 Recruitment (33-01-001) 69,400

Capital Purchases We invested heavily in two major areas Web Page: expedited development and implementation through use of outside consultants, rather than staff I/T Infrastructure: new cabling, servers, routers to ensure reliable operations and safety of data Cost overruns to be funded through new $2 million line of credit

Capital Expenditures

Conclusion We have not yet stopped the decline in membership and revenue that has persisted for many years. The annual operating results were weaker than expected due to a very poor 4th quarter, reflecting the nation’s economic downturn. We need to continue to focus on membership growth, while closely monitoring expenses