Annual Report 2014-2015: Independent Auditors' Report, Combined Financial Statements and Supplementary Information.

CalCPA TREASURER'S REPORT

I am pleased to report that CalCPA completed another successful year--in fact, a milestone year! We acquired a three-story office building in the San Francisco Bay Area and paid cash for it. CalCPA's volunteer leaders created a task force in 2001 to explore purchasing a building, and now, almost 15 years later, their vision has come to fruition. Construction, including retrofitting, is expected to start late 2015 or early 2016, with a targeted completion date in the 2017 fiscal year.

Fiscal year 2015 saw CalCPA introduce programs to support membership development, including nine professional issues updates held throughout the state that engaged members and encouraged active participation. Several newlicensee receptions also were held to celebrate our newly licensed members and to introduce CalCPA to potential members. CalCPA also offered free ethics CPE to all its licensed members as a tangible benefit that helps meet the California Board of Accountancy's mandatory license renewal requirements. More than 2,500 members took advantage of this benefit.

CalCPA has total assets of nearly $37 million, with a very healthy net asset balance of $25 million, while impressively maintaining almost $24 million in cash and investments--even after purchasing the new building. Thanks to the hard work of our many volunteer members and the dynamic, thoughtful management of our outstanding staff, CalCPA is well positioned for another successful year.

--Andrew Mintzer, CPA

CALIFORNIA CPA EDUCATION FOUNDATION TREASURER'S REPORT

Your CalCPA Education Foundation has maintained a strong financial position in the face of a changing CPE market and expanding competition. Despite a $377,000 reduction in operating revenues due to decline in registrations to courses and decrease in sales of the professional ethics course, the Education Foundation staff held costs in check, which led to a net increase in net assets of $9,000 from operations. Investment income and gains contributed $152,000 to the increase in net assets, which totaled $161,000 for the fiscal year. This increased the Education Foundation's total net assets to nearly $11 million. The Education Foundation has kept adequate liquidity, with total current assets in excess of $3 million. The majority of the Education Foundation's liabilities consist of deferred revenue from the sale of discount programs, including the various Value-Priced Education (VPE) products and coupons.

The trend toward digital delivery of our products continues, although at a slower pace. Of the 394,000 hours of courses and conferences provided by the Education Foundation last year, 66 percent was delivered by webcast, rebroadcast and on demand. Four years ago, only 25 percent of our hours were provided digitally. The Education Foundation's product innovation efforts have led to more on-demand content, and we expect the trend to continue based on market demands. This fiscal year saw an increase in our webcast partner states, which, with the addition of Texas, numbered 40 at year's end. We continue to partner with two associations, as well. Our partner states can now use their brand on the digital content they obtain from us, which allows them to keep a strong connection to their members.

The Education Foundation continues to execute its mission to deliver quality education and build knowledge to foster excellence and advance individuals and the profession. The changes occurring in our market present challenges, which mean opportunities. Through dedication to our core values, we will continue to offer innovative, high quality, timely professional education to CPAs in California and throughout the United States.

--Gregory M. Burke, CPA

ANNUAL REPORT TABLE OF CONTENTS Independent Auditors' Report Combined Financial Statements: Combined Statements of Financial Position Combined Statements of Activities Combined Statements of Functional Expenses Combined Statements of Cash Flows Notes to the Combined Financial Statements Supplementary Information: Combining Statements of Financial Position Combining Statements of Activities Combining Statements of Functional Expenses Combining Statements of Cash Flows Independent Auditors' Report

COUNCIL

CALIFORNIA SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS

and

BOARD OF TRUSTEES

CALIFORNIA CERTIFIED PUBLIC ACCOUNTANTS EDUCATION FOUNDATION

San Mateo, California

Report on the Combined Financial Statements

We have audited the accompanying combined financial statements of California Society of Certified Public Accountants (the Society) and California Certified Public Accountants Education Foundation (the Foundation), which comprise the combined statements of financial position as of April 30, 2015 and 2014, and the related combined statements of activities, functional expenses, and cash Rows for the years then ended, and the related notes to the financial statements.

Management's Responsibility for the Combined Financial Statements

Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error.

Auditors' Responsibility

Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free of material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditors' judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of California Society of Certified Public Accountants and California Certified Public Accountants Education Foundation as of April 30, 2015 and 2014, and the changes in their combined net assets and their combined cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.

Report on Supplementary Information--Combining Statements

Our audits were conducted for the purpose of forming an opinion on the combined financial statements as of and for the years ended April 30, 2015 and 2014 as a whole. The accompanying supplementary information is presented for purposes of additional analysis and is not a required part of the combined financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the combined financial statements. The information as of and for the years ended April 30, 2015 and 2014, has been subjected to the auditing procedures applied in the audit of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information as of and for the years ended April 30, 2015 and 2014 is fairly stated in all material respects in relation to the combined financial statements as a whole.

San Francisco, California

June 22,2015

COMBINED STATEMENTS OF FINANCIAL POSITION California Society of Certified Public Accountants | California Certified Public Accountants Education Foundation April 30, 2015 and 2014 (Amounts Expressed In Thousands) 2015 2014 Assets Current Assets: Cash and equivalents $9,675 $9,710 Certificates of deposit 1,915 Accounts receivable, net 411 284 Other receivables 191 322 Receivable--affiliates 26 36 Prepaid expenses and other 680 625 Total current assets 10,983 12,892 Investments 27,567 32,076 Investments--Endowment 50 50 Fixed Assets, net 10,579 2,651 Trust Assets--Deferred Compensation 1,134 1,049 Other Assets 163 130 Total assets $50,476 $48,848 Liabilities and Net Assets Current Liabilities: Accounts payable $554 $562 Accrued expenses 1,770 1,430 Deferred revenues 9,229 8,582 Deferred lease costs, current portion 119 210 Total current liabilities 11,672 10,784 Deferred Lease Costs, less current portion 1,860 1,704 Deferred Compensation 1,134 1,049 Total liabilities 14,666 13,537 Net Assets: Unrestricted: Board designated 7,500 Undesignated 33,922 25,855 Total unrestricted 33,922 33,355 Temporarily restricted 1,838 1,906 Permanently restricted 50 50 Total net assets 35,810 35,311 Total liabilities and net assets...