1. Treasurer’s Report To NSPE Board of Directors & House of Delegates July 24 & 27, 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
Membership by Year
2002/ ,539
2003/ ,047
2004/ ,458
2005/ ,549
2006/ ,214
2007/ ,844
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 5

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

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

17. Budgets 2008/2009 Operating Budget 2007/08 2008/09 Capital Budget
2007/ /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

18. 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