Audited consolidating financial statements.

TAX EXECUTIVES INSTITUTE, INC. AND TEI EDUCATION FUND June 30, 2011 Independent Auditor's Report FINANCIAL STATEMENTS Consolidating statements of financial position Consolidating statements of activities Consolidating statements of cash flows Notes to the consolidating financial statements Independent Auditor's Report

To the Board of Directors

Tax Executives Institute, Inc. and TEI Education Fund

We have audited the accompanying consolidating statements of financial position of Tax Executives Institute, Inc. and TEI Education Fund (collectively, the Organization) as of June 30, 2011 and 2010, and the related consolidating statements of activities and cash flows for the years then ended. These consolidating financial statements are the responsibility of the Organization's management. Our responsibility is to express an opinion on these consolidating 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 audits to obtain reasonable assurance about whether the consolidating financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidating financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidating financial statements referred to above present fairly, in all material respects, the individual and consolidated financial positions of Tax Executives Institute, Inc. and TEI Education Fund as of June 30, 2011 and 2010, and the changes in their net assets and their cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Tote & Tryon

Washington, DC

July 22, 2011

Consolidating Statements of Financial Position Years Ended June 30, 2011 and 2010

Consolidating Statements of Financial Position Years Ended June 30, 2011 and 2010 2011 TO TEIF Total Assets Cash and cash $ 680,973 $ 119,869 $ 800,842 equivalents--Note B Short-term 6,467,759 6,467,759 investments--Notes B & C Accounts receivable 54,405 54,405 Due (to) from (6,508) 6,508 -- affiliate Prepaid expenses 65,359 65,359 Long-term 4,746,125 4,746,125 investments--Notes B & C Investments held for 61,337 61,337 deferred compensation--Notes C & D Property and 395,482 395,482 equipment--Note E Total assets $ 12,464,932 $ 126,377 $ 12,591,309 Liabilities and net assets Accounts payable 61,239 -- 61,239 Accrued liabilities 178,228 178,228 Investment trades 700,000 700,000 pending payable Deferred revenue--Note 3,454,504 3,454,504 F Deferred rent and 273,207 273,207 lease incentive-- Note I Deferred 61,337 61,337 compensation--Note D Total liabilities 4,728,515 -- 4,728,515 Commitment and -- contingency--Note I Net 7,736,417 126,377 7,862,794 assets--unrestricted Total liabilities and $ 12,464,932 $ 126,377 $ 12,591,309 net assets 2010 TEI TEIF Total Assets Cash and cash $ 834,963 $ 117,273 $ 952,236 equivalents--Note B Short-term 6,099,829 6,099,829 investments--Notes B & C Accounts receivable 64,188 64,188 Due (to) from (4,882) 4,882 -- affiliate Prepaid expenses 55,945 55,945 Long-term 4,921,734 4,921,734 investments--Notes B & C Investments held for 45,807 45,807 deferred compensation--Notes C & D Property and 452,021 452,021 equipment--Note E Total assets $ 12,469,605 $ 122,155 $ 12,591,760 Liabilities and net assets Accounts payable 102,853 -- 102,853 Accrued liabilities 168,383 168,383 Investment trades 991,371 991,371 pending payable Deferred revenue--Note 2,945,348 2,945,348 F Deferred rent and 234,162 234,162 lease incentive-- Note I Deferred 45,807 45,807 compensation--Note D Total liabilities 4,487,924 -- 4,487,924 Commitment and -- contingency--Note I Net 7,981,681 122,155 8,103,836 assets--unrestricted Total liabilities and $ 12,469,605 $ 122,155 $ 12,591,760 net assets Consolidating Statements of Activities Years Ended June 30, 2011 and 2010

Consolidating Statements of Activities Years Ended June 30, 2011 and 2010 2011 Revenue TO TEIF Total Continuing education $ 1, 650,089 $ -- $ 1, 650,089 Sponsorships 1,636,750 1,636,750 Membership dues 1,404,067 1,404,067 Royalty 520,174 520,174 Publications 406,619 406,619 Initiation Fees 136,175 136,175 Investment income-- 71,420 45 71,465 Note C Other 10,922 10,922 Management Fees-- (10,753) 10,753 -- Note G Total revenue 5,825,463 10,798 5,836,261 Expense Program Services Continuing education 1,913,279 5,622 1,918,901...