12100 Sunset Hills Road, Suite 130, Reston, Virginia 20190 703/437-4377 Fax 703/435-4390

Memorandum

TO:Michael Clarke

FROM:David Stumph

RE:November2012CSE Financial Statements

DATE:December 31, 2012

CC: Ken Heideman, Heather Goodell, May Piotrowski, and Thomas Farquhar

Attached are the CSE financial statements for November2012, the 11th month of the CSE fiscal year. For purposes of this report, figures have been rounded to the nearest whole number. All references to “pace” in this report represent 91.7% for the 11-month period.

Balance Sheet:

Total assets are $958,121, upfrom $767,722at this time last year.
Cash in checking is up significantly at $143,337 compared to $91,665 last year.
Total liabilities are $45,191, up from $34,916 for the prior year. This includes deferred dues collected in 2012 belonging to 2013 amounting to $35,484.

Net revenue to date, including both the AJPP and investment gainsis $153,066.
Net revenue, without the AJPP and investment gains, is $121,785.
The two restricted funds for the Scholarship Fund and AJPPare $9,666and $21,615 respectively, totaling $31,281.

Profit & Loss Statement (P&L)

Income Highlights:
Dues receipts to date are at 82.6% of the annual budget.
The Certificate program has exceeded its budget for the year by 20%.
Annual Meeting Revenue exceeded budget by 23.7%.
Educational events including Short Courses and Webinars are below pace for the yearat 81.4%.The first Webinar was quite well received exceeding its income budget by 41.9%. The second Webinar that was held in November was free to attendees, thus no income is recorded.
Publication revenue remains ahead of pace to date at 100.3% of budget.
Total income for the year has met and exceeded its goal by 2.1% of budget YTD.While membership is below its projections, the outcome of the Annual Meeting has help to make up the difference. As of November 1, 2012, membership is 799 compared to 818 at this time last year.
Administration income had exceeded budget projections for the year by 15.7%. The primary contributors are the job bank, Website advertising, and interest and dividend income.
There are no other significant income variances to report at this time.

Expense Highlights:
Total ordinary expenses arebelowpace for the year at 82.3%.
Total expenses for the 2012 Annual Meeting are 98.5% of budget. Considering the total income for the conference, which exceeded budget by 23.7% and expenses to date which are under budget by 1.5%, this represents a total positive budget swing of 25.2%!
Total administrative expenses remain below pace at 80.6%.
There are no other significant expense variances to bring to your attention this time.

Investment:

Novembershowed a gain in investments of $3,369, the YTD gain is $52,501. Investments for December are expected to be flat and should not have a dramatic affect on the YTD position.

Conclusion:

The bright spots to date remainthe Annual Conference, the Certificate Program, Publications, and Administrative revenuewhich are ahead of pace for the year. The majority of all dues revenue that will be received between now and year-end will be deferred to 2013. As a result, CSE is unlikely to realize much in the way of revenue generation for the remainder of the year. That being the case, we project a year-end surplus of between $75K and $85K. The overall trends to date, with the exception of membership revenue, remain positive.