1. { PIHOA Financial Packet Presented to the Board on March 11, 2014

2. For the last 3 years, PIHOA has been able to attain an unqualified opinion for our fiscal and A-133 audits for the fiscal years ended June 30, 2011, 2012, and 2013  2011 Annual expenses of 1,663,000  2012 Annual expenses of 1,925,000  2013 Annual expenses of 2,013,000 With the attainment of the NPHII grant during FY2011, PIHOA increased our expenses and revenue from FY2010 to FY2011 by approximately 100% As an organization we went from an annual budget of $800K to $1.6M. Looking Back…….

3. Over the last three years we have experienced a steady growth ranging from 5%-18% in revenue and expenses.  Growth of 4 full time staff to 7 full time and 1 part time staff  Increase in the number of contracts maintained by PIHOA  Increase in sponsored workshops, training, and meetings in the region  Maintenance of 5 sub-recipient agreements Looking Back…….

4.  For the 6 months ended December 2013, PIHOA has incurred approximately $1.2M in expenses. With the upcoming activities for the remaining 6 months of the year we expect to top $2M once again in FY2014.  As of today, PIHOA has identified grant/contract revenue in the amount of approximately $1.7M that will sustain current operations until Fall of 2014.  The PIHOA Secretariat has been actively searching and will continue to search for federal, private, and other funding sources. PIHOA FY2014

5. HRSA and CDC grant revenue fund 60% of PIHOA’s current activities over the past 5 years NOTE: Graph is taken from page 41 of the financial packet PIHOA FY2014

6. Over the last 5 years PIHOA has an unrestricted revenue source of 10% of overall revenue. In the last 2 years, with the drop in dues that unrestricted revenue source has dropped to about 3% NOTE: Graph is taken from page 41 of the financial packet and is based upon the last 5 years. PIHOA FY2014

7. PIHOA’s Operating Reserve  It is recommended that not-for-profits have an operating reserve of 3-6 months of operational expenses on hand. For PIHOA, this would be a reserve balance of $250K or $500K based upon our estimated daily operational budget of $1M on page 45 of the financial packet.  Considerations for the reserve……..  Where will PIHOA hold this money (e.g. savings account or investment account  How will we raise the funds to build the reserve (e.g. membership dues, contributions, etc.)

8. Where is PIHOA heading? Questions the Board needs to consider to assist the Secretariat to properly serve them and fulfill the mission of PIHOA? Are current activities in line with the Board’s vision and mission of PIHOA? What capacity would the Board like the Secretariat to serve in the future? What type of future activities and services would the Board like to see from the Secretariat in the next 3-5 years?

9. Where is PIHOA heading? Options identified by the Secretariat A – Continue current operations as a technical assistance arm for the USAPI B – Scale down operations similar to those prior to 2007 when PIHOA was more of a coordinating, networking body for the USAPI C – Possibly absorb into another organization that offers similar services in line with our current activities. D – Cease operations when our funding runs out