TREASURER S REPORT ACEC BOARD OF DIRECTORS MEETING SCOTTSDALE, AZ OCTOBER 27, 2013

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1 I. FISCAL YEAR 13 AUDIT: TREASURER S REPORT ACEC BOARD OF DIRECTORS MEETING SCOTTSDALE, AZ OCTOBER 27, 2013 The ACEC annual audit conducted by the CPA firm CliftonLarsonAllen gave the Council a clean bill of health and high marks for financial management. The auditor s report is included in the Board Agenda package along with this report. 1. Revenue: Membership Dues Revenue: Dues revenue for FY 13 was $8,032,000 against $7,931,000 budgeted (or 1.3 % increase). Non-Dues Revenue: Non-dues revenue for FY 13 was $5,175,000 against $4,711,000 budgeted (or 10% increase) attributed to higher than projected webinar, publication sales and meetings revenue. Total Revenue: Revenue for FY 13 was $13,207,000 against $12,642,000 budgeted. 2. Expenses: Total expenses for FY 13 were $12,950,000 against $12,861,000 budgeted (or.1% increase). 3. Net Operating Results: A total FY 13 budget surplus of $257,000 included restricted funds such as Minuteman Fund, Scholarships and the like. Excluding such restricted funds, the net operating surplus was $190,000, which will be used to offset the budgeted FY 14 use of the Reserve Account in the amount of $200,000 for the funding of the contracting out initiative approved by the Board of Directors on April 21, II. REVENUE 1. Membership Dues Revenue: As of August 31, 2013 (two months into the FY 14 budget year), dues revenue is projected at $8,364,000 for the year, as budgeted. 2. Non-Dues Revenue: As of August 31, 2013 (two months into the FY 14 budget year), non-dues revenue is projected at $5,153,000 for the year, as budgeted. 3. Total Revenue: As of August 31, 2013 (two months into the FY 14 budget year), total revenue is projected at $13,517,000 for the year, as budgeted.

2 III. EXPENSES As of August 31, 2013, total expenses are projected at $13,717,000 for the year, as budgeted. IV. NET ASSETS AND INVESTMENTS 1. Net Assets as of August 31, 2013: Net assets for current expenditures $ 1,250,285 Reserve Fund 3,295,537 Fixed assets (non-liquid) 544,468 Minuteman Fund 2,153,396 Coalitions & Special Interest Groups 871,324 Total Net Assets $ 8,115, Investment Profile as of August 31, 2013: Mutual Funds ($2,337,302 ACEC, $211,335 RMF) $ 2,548,638 Certificates of Deposit ($4,041,000 ACEC, $150,000 RMF) 4,191,000 Total $ 6,739,638 The Wells Fargo account s Performance Review report for the quarter ended June 30, 2013 showed a year-to-date return of 4.23% on the mutual funds. The CDs have original maturities of one to five years, and a current weighted average return of 1.05%. ACEC s medium to long-term capital including operating capital and reserves, Minuteman funds, and Coalitions and Special Interest Group funds are invested in mutual funds managed by Wells Fargo Advisors and Certificates of Deposit selected with the assistance of Great Eastern Management, Inc. Short-term operating capital, accounts receivable and related items are not invested. The mutual funds are a diversified blend of equity and fixed income securities designed for a conservative growth strategy. P. Strub 10/7/13

3 CliftonLarsonAllen LLP 4250 North Fairfax Drive, Suite 1020 Arlington, VA fax August 27, 2013 Mr. David A. Raymond President American Council of Engineering Companies th Street, NW Washington, DC Dear Mr. Raymond: We have completed our audit of the American Council of Engineering Companies (ACEC) for the year ended June 30, I want to personally inform you that the audit went very well. We found ACEC to have capable professional staff and well-designed policies and procedures in place. ACEC s effective planning and preparation for the audit and its sound financial practices and procedures indicate it is among the best managed associations we serve. Although ACEC began its audit only four weeks after the end of the Organization s fiscal year, the financial records were found to be in very good order and much better than many of the over 600 non-profit organizations we encounter. In this challenging economic climate, ACEC has preserved its financial health and established a solid foundation for continued progress. Fiscal policies and procedures were found to be functioning as documented, and the organization is on the right track in the management of financial resources. Our entire engagement team appreciates the efforts of your staff during the audit, and I am happy to discuss this report with you further as necessary. Sincerely, J. Andrew (Drew) Smith, CPA Partner drew.smith@claconnect.com

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