FAST FORWARD Building the Profession of Tomorrow Finance and Operations Report Tom Hilton, CPA, CGMA Anthony Pugliese, CPA, CGMA, CITP Spring Council | May 18-20, 2014 Item 12

Agenda Review 2014 Forecast Membership, Operational, and Balance Sheet Highlights Pension Update Review Proposed 2015 Budget 2

2014 Forecast Update ($ in thousands) 3 * FY14 forecast is 3% higher than FY13 actual

2014 Membership Highlights General Membership Retention rate of 94% versus budget of 94.75% On track to meet or exceed this year’s budget Sections and Credentials Retention trends in line with prior years International expansion CGMA Designation On track to meet budget of 42,000 designees Exam launch in Spring

2014 Operational Highlights Leveraging Horizons 2025 to advance AICPA’s Digital Strategy Re-designing and re-launching Journal of Accountancy website Implementing new operating systems to enhance member service and interaction Growing Product Lines and Revenue Created new on-demand and group study products Enhanced marketing efforts and streamlined product delivery methodology 5

® $97.0M $97.7M AICPA L/T Investments vs. Blended L/T Indices 6 Liquidated $10M in October-2013 $7.2M gains year to date

Domestic CPA Exam Reinvestment ($ in millions) 7 Max. Deferred Liability

International CPA Exam Administering in six countries Collaborating with NASBA on expansion to other countries 2014 profit of $1.4 million and 10,000 sections 8

Long-Term ($ in millions) 9

Pension Plan Update Environmental factors for plan sponsors: Negatively being impacted by low interest rate environment Mortality table changes will increase pension expense Increase in PBGC premiums may accelerate plan funding strategy Recent changes to reduce pension exposure: Accelerated plan freeze from April 30, 2017 to June 30, 2013 Offered lump sum payouts to terminated vested participants 10

2015 Proposed Budget ($ in thousands) 11

Cash Flow Projections through July

Council Resolution Resolved: That the proposed operating budget for the American Institute of Certified Public Accountants for the fiscal year, as presented to Council as agenda item 12, be approved and adopted. 13

2014 AICPA Spring Council Scottsdale, Arizona May 18-20, 2014