Notes to the combined financial statements: (in thousands).

• Position: Annual Report 2015-2016

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 the Foundation are derived primarily from CPAs 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 public charity nonprofit organization, 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. All inter-organization transactions have been eliminated in combination.

   PRINCIPLES OF CONSOLIDATION--All inter-organization transactions have been eliminated in consolidation.

   BASIS OF PRESENTATION--The combined financial statements of the Society and the Foundation have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP), Net assets are classified bused on the existence or absence of donor-imposed restrictions. Accordingly, the Society and the Foundation classify their net assets and changes in net assets as follows:

   Unrestricted Net Assets--Net assets that are not subject to donor-imposed restrictions or the donor-imposed restrictions have expired. Temporarily Restricted Net Assets Net assets that ore subject to donor-imposed restrictions that may or will be met either by actions of the Society or the Foundation and for the passage of time. Permanently Restricted Net Asset!--Net assets that are to be held in perpetuity as directed by donors. The income from these net assets is available to support activities as designated by the donors. Revenues ore 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 or 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. Generally, the donors of assets allow the Society and the Foundation to use all or part of the income earned on the related investments for unrestricted or specific (temporarily restricted) purposes. CASH AND EQUIVALENTS--Cash and equivalents consist of cash on band and highly liquid investments with original or renaming maturities of three months or less at the time of purchase.

   CONCENTRATION OF CREDIT RISK--Financial instruments that potentially subject the Society and the Foundation to concentrations of credit risk consist of cash deposits and investments. Cash balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250 per banking institution. As of April 30.2016 and 2015, there were combined cash deposits of S5.908 and 58,036. respectively, in excess of FDIC limits. Investments are subject to a formal investment policy, which provides for diversification and oversight- Balances in investment accounts are insured up to $500, including a limit of 5250 for cash, by the Securities Investor Protection Corporation (SIPC). As of April 30, 2016 and 2015, there were combined balances of $31,695 and $34,778, respectively, in excess of SIPC limits. Management believes that the Society and the Foundation are not exposed to any significant credit risk related to cash and investments.

   ACCOUNTS RECEIVABLE--Accounts receivable are recanted at net realizable value consisting of the carrying amount less an allowance for uncollectible accounts. The allowance is established based on factors such as historical experience, credit quality and tire age of the account balances. As of April 30, 2016 and 2015, the total combined allowance for doubtful accounts was $31 and $8, 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.

   FIXED ASSETS--Acquisitions of fixed assets of one thousand dollar a or more are capitalized. land and building are stated at cost. Building costs include the purchase price, the value of rent concessions, plus other costs necessary to place the asset into service. Building depreciation is computed when...