1. 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

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

3. 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

4. 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

5. NSPE Operating Results Through June 30, 2008

6. Breakdown of Revenue (in millions)

7. 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

8. 5-Year Dues Revenue Trend
Change by Year
2005 $(135,900)
(201,000)
( 27,200)
(146,400)
No changes to dues rates

9. 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.

10. Non-Dues Revenue Components

11. Non-Dues Revenue Programs Results for Top 7

12. 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

13. NSPE Operating Expense Through June 30, 2008

14. Largest Program Savings
Tenant rentals ( ) $31,700
Governance (22-01-VAR) 34,700
Licensure (32-01-var) 50,000
Convention ( ) 47,000
PE Magazine ( ) 84,200
Recruitment ( ) 69,400

15. 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

16. Capital Expenditures

17. 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