Notes to the combined financial statements.

Years Ended April 30, 2011 and 2010 (Amounts Expressed In Thousand

1. ORGANIZATION

   The California Society of Certified Public Accountants (Society) is a nonprofit incorporated membership organization whose purpose is to advance the profession of accountancy in the State of California. The Society provides its members with general and technical resources through its chapters and committees and administers the Peer Review Program on behalf of the American Institute of Certified Public Accountants in California, Arizona and Alaska. The California Certified Public Accountants Education Foundation (Foundation) is a nonprofit public benefit corporation organized to provide continuing professional education to Certified Public Accountants (CPAs) and other interested parties. The Society is governed by the CalCPA Council (Council) which is elected by the membership of the Society. The Foundation is governed by a Board of Trustees. Revenues for the Society and Foundation are derived primarily from certified public accountants in California, The Society and the Foundation share administrative functions. Such costs are allocated between the entities based on their estimated share. The California CPA Institute (CalCPA Institute), a nonprofit organization under Internal Revenue Code Section 501 (c)(3), was formed in October 2004 to administer scholarship activities, financial literacy and other programs. The activities of the CalCPA Institute are consolidated with the activities of the Society.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

   PRINCIPLES OF COMBINATION--The Board of Trustees of the Foundation consists of members of the Society who are elected by the governing Council of the Society. Because of common control by the Council, the accompanying financial statements reflect the combined statements of the Society and the Foundation.

   PRINCIPLES OF CONSOLIDATION--CalCPA Institute is reflected in the financial statements of the Society.

   BASIS OF PRESENTATION--The combined financial statements of the Society and Foundation have been prepared on the accrual basis. The Society and the Foundation report information regarding their financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets as follows:

   Unrestricted net assets--Net assets that are not subject to donor-imposed stipulations.

   Temporarily restricted net assets--Net assets subject to donor-imposed stipulations that may or will be met either by actions of the Society or the Foundation and/or the passage of time.

   Permanently restricted net assets--Net assets to be held in perpetuity as directed by donors. The income from the contributions is available to support activities as designated by the donors.

   Revenues are reported as increases in unrestricted net assets unless use of the related assets is limited by donor-imposed restrictions. Expenses are reported as decreases in unrestricted net assets. Gains and losses on assets and liabilities are reported as increases or decreases in unrestricted net assets unless their use is restricted by explicit donor restriction or by law.

   CASH AND EQUIVALENTS--Cash and equivalents consist of cash on hand and highly liquid investments with original or remaining maturities of three months or less at the time of purchase.

   CONCENTRATION OF CREDIT RISK--Financial instruments that potentially subject the Society and Foundation to concentrations of credit risk consist of cash deposits in interest bearing accounts. At April 30,2011 and 2010, there were combined cash balances on deposit of $5,397 and 510,311, respectively in excess of Federal Deposit Insurance Corporation coverage limits. Management believes the organizations are not exposed to any significant credit risk related to cash and equivalents.

   ACCOUNTS RECEIVABLE--Accounts receivable are recorded at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts. Management of the Society and the Foundation use the allowance method to account for uncollectible accounts receivable balances. The allowance is established based on factors such as historical experience, credit quality and the age of the account balances in determining the appropriate allowance. As of April 30,2011 and 2010, the total combined allowance for doubtful accounts was S6 and $17, respectively.

   INVESTMENTS--Investments are stated at fair value. Unrealized and realized gains and losses are included in investment income reported on the combined statements of activities. Investment income is reported net of related investment expenses.

   Alternative investments consist of those investments which are not valued based upon a quoted market price and include non-marketable hedge fund assets and are included in Other Investments. Hedge funds invest in various partnership interests, managed accounts, and other vehicles to generate investment return. These hedge funds are reported at estimated fair value as measured by their net asset value as reported by fund managers. That amount represents the Society's proportionate interest in the capital of the invested funds.

   INVESTMENT RISKS--Investment securities are exposed to various risks, such as interest rate, market and credit risk. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in the near term could materially affect the amounts reported in the accompanying combined financial statements.

   PROPERTY AND EQUIPMENT--Acquisitions of property and equipment of $1 or more are capitalized. Property and equipment are stated...