Treasurer’s Report To NSPE Board of Directors & House of Delegates July 24 & 27, 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 Membership by Year 2002/3 50,539 2003/4 48,047 2004/5 46,458 2005/6 45,549 2006/7 43,214 2007/8 41,844 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 5

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 Budget 2007/2008 Budget $268,312 Spent $703,123 Variance ($434,811)

Capital Budget Major Variances Web Page Development (210,885) I/T Infrastructure Upgrade (152,113) NICET Fixed Assets (137,216)

Budgets 2008/2009 Operating Budget 2007/08 2008/09 Capital Budget 2007/08 2008/09 Revenue $7,265.9 $7,166.4 Direct Expenses $3,214.8 $3,213.5 Staff Costs Overhead $4,015.9 $3,952.9 Capital Budget 2007/08 Spent $703,123 2008/09 Budget $807,000

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