Report on Finance and Operations Rick Niswander, Ph.D., CPA Chair, Audit & Finance Committee Scott Spiegel, CPA, CGMA, CITP Chief Financial Officer

Discussion Topics 2018 recap: 2019 update: Strategic initiatives and integrated report Audited combined results of Association AICPA pension plan 2019 update: Association budget Revenue trend monitoring Approve AICPA member dues rates

Strategic Initiatives Efforts to prepare the profession for the future Promote Competency Globally Evolve Auditing in the Future Open U.S. Market for CGMA Transform our Organization Future-proof Management and Public Accounting Audit standards Non-financial statement assurance Dynamic Audit Solution PCR and RIVIO Channel partnerships B2B & B2C Local solutions - UK, China, S. Asia Finance Leadership Program Unbundled CGMA CGMA brand recognition Modern systems & processes Scale KL hub NextGen value prop & MVP Updated exams Future of Finance CPA evolution Apprenticeships Integrated tax & planning services

Association Integrated Report 2nd year of preparing Integrated Report for the Association Integrated Reporting combines financial reporting with other elements to help stakeholders better understand how value is created

2018 Audited Combined Financial Highlights Association of International Certified Professional Accountants & Related Organizations Statement of Financial Position $43.4 million in cash and cash equivalents $116.4 million in investments $50 million line of credit $35 million net assets without donor restrictions Statement of Activities $338 million total revenue (before investment losses) Negative investment performance but recovered in Q1 2019

AICPA Pension Plan Update Plans remain liabilities of respective organizations, are frozen and benefits no longer accrue to participants $500,000 in net pension gain in 2018 Mitigate volatility via asset allocation strategies and continue to fund at least at minimum levels required AICPA plan 93% funded; evaluating plan annuitization options

Association — 2019 Budget ($ in thousands) 2018 Actual Variance Fav / (Unfav) Promoting Competency Globally $ 74,940 $ 69,399 $5,541 Exams 42,886 41,041 1,845 Cost of Sales/Marketing/Commissions (42,970) (48,977) 6,007 Net Contribution 74,856 61,463 13,393 Membership Dues 177,721 175,205 2,516 Other Revenue 30,453 28,867 1,586 Net Operating Revenue 283,030 265,535 17,495 Total Operating Expenses 282,030 266,039 (15,991) Net Excess (Deficit) of Operating Rev. Over (Under) Expense $ 1,000 $ (504) $ 1,504

2019 Revenue Trend Monitoring Responding to membership demographic shifts Product revenue is growing; product mix shifting to virtual and on demand learning

Council Resolution BE IT RESOLVED, That the proposed AICPA dues rates for the membership year beginning August 1, 2019, as presented to Council in item 12, are hereby approved.