Combining financial statements independent auditor's report 2008 to 2009.

• Position: 2009 annual report

CalCPA TREASURER'S REPORT

CalCPA finished its first century solidly. This last year presented a number of challenges both financially and to the profession. We met those challenges and we are ready for another century of growth and advancement. Membership continues to grow. We have more than 35,000 members, making us the largest state CPA society.

Operationally CalCPA had a very strong year, which resulted in an increase in net assets before investment losses of $1,744,000. The membership and organization both contributed to this increase. Our member retention rate was 94 percent for licensed CPA members, and dues revenue grew 13 percent over the previous year. Also, CalCPA responded to the uncertain financial and business climate with a concerted effort to reduce costs. The most significant reductions were in personnel costs, primarily due to a hiring freeze, reduced travel and training. Other major cost savings were achieved by electronically distributing member materials. We continue to realize substantial efficiencies and cost savings by combining administrative efforts of the Education Foundation and CalCPA.

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Last fiscal year, a decision was made to terminate and liquidate the defined benefit pension plan. In hindsight, this was a great decision. We avoided what would have been a significant increase in the cost of the plan due to the overall decline in the market. As of the end of the calendar year, the plan has been completely liquidated and is no longer a liability.

CalCPA continues to support those interested in joining our profession through contributions to the CalCPA Institute. Our members contributed via direct contributions, financial literacy programs and chapter events. We gave out almost $294,000 in scholarships. Additionally. CalCPA contributed $50,000 to the AICPA Foundation Doctoral Scholarship.

We are looking forward to another year of supporting the profession in California and nationally. Our break-even budget for 2009-10 continues to support strong member services, membership growth and government advocacy

--Conrad Davis, CPA

CALIFORNIA CPA EDUCATION FOUNDATION TREASURER'S REPORT

The Education Foundation has completed another successful year with operating revenues totaling $13.8 million. Attendance at our courses and conferences remained strong this year, and resort CE weeks were well received. Enhancements to our e-learning offerings, expansion of our instructor base, new courses and focused marketing efforts have contributed to this success. Expenses were controlled, primarily due to negotiations of on-site meeting costs, electronic marketing and the efficiency of shared services with CalCPA.

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Though results of operations were very strong, the Foundation experienced significant investment losses due to poor market conditions, and an overall decrease in net assets. At year-end, net assets were still healthy at $4.8 million.

The marketplace is increasingly competitive, but the Foundation is poised to meet those challenges. We are focused on learning trends and proactively responding to a changing environment. The Foundation will continue to pursue its goal to provide high-value, quality professional education and strive to meet and exceed the expectations of our customers and you, the members.

Michelle Walters, CPA

To the Council of the California Society of Certified Public Accountants

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