FOUNDATION TREASURER'S REPORT.

I am pleased to present the year-end financial results for the CPA Education Foundation. The Foundation continues to be a most effective resource of continuing professional education programs for our members and other financial professionals in California and nationwide at a very reasonable cost.

The positive results this year are a combination of many factors that include continued popularity and use of our VP cards and coupon books, which firms are buying and sharing with staff. Another reason for our success is the amount of non-VP (full-pay registrations) from non-CPAs or non-member CPAs who pay a higher premium for our programs than if they were members. The higher than expected conference attendance contributes greatly to the bottom line since the attendees tend to be non-CPAs or non-members.

Our Foundation team should be congratulated for the outstanding performance in controlling costs while our programs are growing and expanding. This cost containment in a robust economy has been a significant factor in our success this year.

The success of the Foundation Alliance Partners, such as Boot Camp, E-Mind and others also has contributed to our bottom line, and the Foundation continues to seek other alliances to maintain our low pricing structure and provide members with more benefits. The Foundation recently purchased a new line of self-study products from a company called Western Schools. This product line will allow us to offer more products and at the same time increase the contribution to our fund balance.

During this coming year, the board of trustees will review the fund balance and make strategic decisions as to how best use these funds to enhance our CPE offerings and to continue offering very reasonably-priced products and services to our membership.