NATIONAL PTA. FINANCIAL STATEMENTS September (Unaudited)

Transcription

1 NATIONAL PTA FINANCIAL STATEMENTS September 2016

2 TABLE OF CONTENTS Executive Summary 1 National PTA Statement of Financial Position A 1 Statement of Net Assets A 4 Statement of Activities Actual vs. Budget A 5 Actual vs. Prior Year A 9 Endowment Fund of the National PTA Comparative Statement of Financial Position B 1 Comparative Statement of Activities Actual vs. Budget B 3 Actual vs. Prior Year B 4 National PTA Properties, LLC Comparative Statement of Financial Position C 1 Comparative Statement of Activities Actual vs. Budget C 4 Actual vs. Prior Year C 6 Statement of Cash Flows C 7 Consolidating Financial Statements Consolidating Statement of Financial Position D 1 Consolidating Statement of Activities D 3 Page

3 EXECUTIVE SUMMARY Consolidated Financial Results The change in net assets has a favorable budget variance of $1.1M for the three months ended September 30, Total revenue has a $686.0K favorable budget variance for the three months ended September 30, Membership dues have a favorable budget variance of $575.2K. Total expenses have a $117.1K favorable budget variance for the for the three months ended September 30, Current Ratio Operating Reliance 800.0% 600.0% 400.0% 200.0% 0.0% 200.0% 150.0% 100.0% 50.0% 0.0% Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15 Dec 15 Jan 16 Feb 16 Mar 16 Apr 16 May 16 Jun 16 Jul 16 Aug 16 Sep 16 Actual Goal Actual Goal Current Ratio indicates our organization s ability to meet shortterm financial obligations. The ratio is calculated by dividing current assets by current liabilities. Ideally, we want to have a current ratio of at least 100% and preferably greater. Operating Reliance is a ratio that assesses whether an organization could pay all of its expenses from program revenues. The ratio is determined by taking total unrestricted program revenue and dividing it by total expenses. A good nonprofit measure is 100%, and in some cases greater than 100%. 1

4 Program Efficiency (NPTA Only) 26.7% 14.8% 10.3% 13.0% 12.4% 23.5% 73.3% 85.2% 89.7% 87.0% 87.6% 76.5% 0.0% 20.0% 40.0% 60.0% 80.0% 100.0% MONTHSS Net Assets to Operating Expenses 200.0% 150.0% 100.0% 50.0% 0.0% OPERATING EXPENSES Supporting services Program services Months % of Net Assets Goal Program Efficiency calculates how much our organization is spending on our primary mission rather than administrative costs. The range of acceptable administrative costs are from 20% to 30%. Note: The calculation to allocate personnel and overhead changed in the 2016FY, which accounts for the variance from the previous year. Net Assets to Operating Expenses measures the organization s ability to weather financial downturns. Ideally, the Net Assets should equal or exceed 150% or 18 months of our organization s annual operating expenses. National PTA The National PTA s net assets increased $392.0K for the three months ended September 30, 2016, which was $914.7K more than the budgeted decrease of $522.7K. This favorable variance is primarily due to unrealized gains on investments of $164.1K and the favorable variance in membership dues of $575.2K. Total revenue had a favorable variance of $912.1K when compared to prior year, and total operating expenses had an unfavorable variance of $655.2K when compared to prior year. These variances are primarily due to the annual convention being split between FY16 and FY17 and open staff positions being filled after September 30, All remaining revenues and expenses for the 2016 Annual Convention were recognized in July Days cash of operating expenses as of September 30, 2016 was 86 days. 2

5 Endowment Fund of the National PTA The Endowment Fund s net assets increased by $183.2K or 3.9% for the three months ended September 30, The increase was primarily composed of unrealized gains on investments totaling $178.6K. Total revenue had a favorable variance of $4.3K and total operating expenses had an unfavorable variance of $2.2K when compared with the budget for the year. Total revenue had a favorable variance of $883 and total operating expenses had an unfavorable variance of $4.0K, when compared with the same period in the prior year. Through December 31, 2016, the Endowment Fund investments have increased approximately $3.8K resulting in an ending market value of $4.8M. National PTA Properties, LLC National PTA Properties provided $2.8K of cash from operating activities and had a net loss of $46.5K for the three months ended September 30, The total rental income was less than budgeted by $35.3K. Real estate taxes were less than budgeted by $89K due to a timing difference, while maintenance and repairs were greater than budgeted by $18.9K. 3

6 NATIONAL PTA FINANCIAL STATEMENTS September 2016

7 NATIONAL PTA Statement of Financial Position 12/31/ /31/2015 Variance ASSETS Current Assets Cash & Cash Equivalents $ 6,886,292 $ 6,985,193 $ (98,901) Accounts Receivable 1,530,591 1,919,289 [A] (388,700) Due from Endowment Fund 30,106 1,498 28,608 Due from National PTA Properties 70,999 70,999 Prepaid Expenses 201, ,653 (27,682) Total Current Assets 8,719,958 9,135,633 (415,675) Fixed Assets Furniture & Office Equipment 934, ,613 57,527 Software 263, ,095 Leasehold Improvements 16,388 16,388 Total Fixed Assets, Cost 1,213, , ,010 Accumulated Depreciation (763,315) (593,135) (170,179) Total Fixed Assets, Net 450, , ,831 Other Assets Investments 5,446,116 5,230, ,631 Investment in National PTA Properties 7,066,639 6,132, ,532 Security Deposit 67,176 67,176 Grants Receivable Long Term Portion 515,600 [C] 515,600 Total Other Assets 13,095,531 11,429,768 1,665,762 TOTAL ASSETS $ 22,265,797 $ 20,848,879 $ 1,416,918 Page A-1

8 NATIONAL PTA Statement of Financial Position 12/31/ /31/2015 Variance LIABILITIES & NET ASSETS Current Liabilities Accounts Payable & Accrued Expenses $ 380,951 $ 324,424 $ 56,528 Capital Lease Obligation, Current Portion 11,882 11,882 Deferred Revenue 642,004 75,804 [D] 566,199 Deferred Rent 161,163 (161,163) Due to Endowment Fund 6,015 36,640 (30,624) Due to National PTA Properties 851,820 [B] 851,820 Other Current Liabilities 197, ,316 (30,876) Total Current Liabilities 2,090, ,347 1,263,767 Other Liabilities Capital Lease Obligation Long Term Portion 1,702 28,603 (26,900) Total Other Liabilities 1,702 28,603 (26,900) Total Liabilities 2,091, ,950 1,236,866 Net Assets 20,173,981 19,993, ,051 TOTAL LIABILITIES & NET ASSETS $ 22,265,797 $ 20,848,879 $ 1,416,918 Page A-2

9 National PTA Statement of Financial Position Notes to Financial Statement Reference [A] [B] [C] Explanation Membership dues receivable were $388.7M less than the prior year balance due to a shift in the timing of when states reported dues during the 2016FY. The Board of Directors approved the funding of a Reserve Replacement Schedule using the Mortgage Relief designated net assets in November $731.0K will be transferred to National PTA Properties LLC in February 2017, when the new management company is in place. The grants received that span multiple fiscal years make up the balance in grants receivable longterm. As grantors are invoiced based on the grant document, this balance will be reduced. Grants receivable long term were reported as part of accounts receivable during the 2016FY. [D] Deferred revenue is $566.2 higher in 2016 when compared with 2015 because of contracts generated in the current and prior fiscal years that will have income recognized in subsequent years (i.e., 2017FY and beyond). Page A-3

10 National PTA Statement of Net Assets For the 6 Month(s) Ended 12/31/2016 For the 6 Month(s) Ended 12/31/2015 Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted TOTAL Unrestricted Restricted Restricted TOTAL Beginning Balance Undesignated $ 14,297,681 $ 1,437,155 $ 516,490 $ 16,251,326 $ 10,896,610 $ 2,701,095 $ 516,490 $ 14,114,195 Board Designated 243, , , ,710 Change in Net Assets 3,792,814 (113,289) 3,679,525 3,203,739 1,756,285 4,960,024 Ending Balance $ 18,333,625 $ 1,323,866 $ 516,490 $ 20,173,981 $ 15,020,059 $ 4,457,380 $ 516,490 $ 19,993,929 Board Designated Mortgage Relief $ $ 496,280 $ 731,000 Legacy Room 234, ,290 Database 80,000 Historical Preservation 8,420 8,420 Total Board Designated $ 243,130 $ 919, ,710 Page A-4

11 National PTA Statement of Activities (Actual vs. Budget) For the 6 Months Ended 12/31/2016 Unrestricted Temporarily Restricted TOTAL % of Favorable or Favorable or Favorable or Annual (Unfavorable) (Unfavorable) (Unfavorable) Annual Budget Actual Budget Variance Actual Budget Variance Actual Budget Variance Budget Met REVENUE Advertising $ 363,944 $ 264,013 $ 99,931 $ $ $ $ 363,944 $ 264,013 $ 99,931 $ 542, % Contributions Corporate 459, ,500 (8,020) 459, ,500 (8,020) 935, % Contributions Endowment Fund 157, % Contributions Individuals 25,386 42,500 (17,114) 25,386 42,500 (17,114) 85, % Contributions In kind 15,000 (15,000) 15,000 (15,000) 30, % Event Registration Fees 89,022 79,375 9,647 89,022 79,375 9, , % Exhibit Income 102, ,588 (48,558) 102, ,588 (48,558) 460, % Grant Revenue 306,000 [B] 306, , , % Interest & Dividend Income 121, ,045 (55,368) 121, ,045 (55,368) 205, % Membership Dues Revenue 7,159,903 7,229,359 (69,456) 7,159,903 7,229,359 (69,456) 8,322, % Rental Income 140, , , , % Royalty Income 18,374 37,500 (19,126) 18,374 37,500 (19,126) 75, % Sponsorship Income 188, ,200 36, , ,200 36, , % Subscription Income 8,850 5,525 3,325 8,850 5,525 3,325 11, % Other Income 25,652 2,500 23,152 25,652 2,500 23,152 5, % Temporarily Restricted Revenue Released from Restriction 419, , ,473 (419,289) (189,816) (229,473) 0.0% TOTAL Revenue 9,122,436 8,812,921 [A] 309,516 (113,289) (189,816) 76,527 9,009,147 8,623, ,042 11,591, % EXPENSES Personnel Expense (Schedule A) 3,139,004 3,127,390 (11,615) 3,139,004 3,127,390 (11,615) 6,216, % Operating Expenses (Schedule B) 2,275,165 2,448, ,385 2,275,165 2,448, ,385 5,727, % Total Personnel & Operating Expenses 5,414,169 5,575, ,771 5,414,170 5,575, ,771 11,943, % Allocated Expenses Overhead (5,130) 5,130 (5,130) 5, % Personnel (12,424) 12,424 (12,424) 12, % Total Allocated Expenses (17,554) 17,554 (17,554) 17, % TOTAL Expenses 5,396,615 5,575, ,325 5,396,616 5,575, ,325 11,943, % Net Operating Income or (Loss) 3,725,821 3,236, ,840 (113,289) (189,816) 76,527 3,612,532 3,047, ,367 (351,637) (1027.3%) Non Operating Revenue or (Expense) Unrealized Gain or (Loss) on Investments 66,993 66,993 66,993 66, % Total Non Operating Revenue or (Expense) 66,993 66,993 66,993 66, % Change in Net Assets $ 3,792,814 $ 3,236,980 $ 555,833 $ (113,289) $ (189,816) $ 76,527 $ 3,679,525 $ 3,047,165 $ 632,360 $ (351,637) (1046.4%) Page A-5

12 National PTA Statement of Activities (Actual vs. Budget) For the 6 Months Ended 12/31/2016 Unrestricted Temporarily Restricted TOTAL % of Favorable or Favorable or Favorable or Annual (Unfavorable) (Unfavorable) (Unfavorable) Annual Budget Actual Budget Variance Actual Budget Variance Actual Budget Variance Budget Met Schedule A Personnel Expense Salaries & Wages $ 2,530,817 $ 2,517,325 $ (13,492) $ $ $ $ 2,530,817 $ 2,517,325 $ (13,492) $ 4,983, % Stipends 22,027 29,717 7,690 22,027 29,717 7,690 59, % Payroll Tax Expense 177, ,017 1, , ,017 1, , % Retirement Expense 85,788 69,558 (16,230) 85,788 69,558 (16,230) 139, % Insurance Employees 283, ,448 (18,678) 283, ,448 (18,678) 531, % Payroll Processing Fees 4,851 (4,851) 4,851 (4,851) 0 0.0% Staff Recruitment & Retention 9,791 12,475 2,684 9,791 12,475 2,684 32, % Employee Membership Dues 190 3,155 2, ,155 2,965 6, % Staff Training & Development 14,025 39,945 25,920 14,025 39,945 25,920 79, % Temporary Staff 10,471 11,750 1,279 10,471 11,750 1,279 26, % Total Personnel Expense $ 3,139,004 $ 3,127,390 $ (11,614) $ $ $ $ 3,139,004 $ 3,127,390 $ (11,614) $ 6,216, % Page A-6

13 National PTA Statement of Activities (Actual vs. Budget) For the 6 Months Ended 12/31/2016 Unrestricted Temporarily Restricted TOTAL % of Favorable or Favorable or Favorable or Annual (Unfavorable) (Unfavorable) (Unfavorable) Annual Budget Actual Budget Variance Actual Budget Variance Actual Budget Variance Budget Met Schedule B Operating Expenses Advertising & Marketing Expense $ 8,383 $ 149,717 $ 141,334 $ $ $ $ 8,383 $ 149,717 $ 141,334 $ 300, % Amortization & Depreciation 76,936 69,339 (7,597) 76,936 69,339 (7,597) 138, % Audio/Visual Expense 4,957 15,000 10,043 4,957 15,000 10, , % Audit & Accounting Fees 19,661 25,000 5,339 19,661 25,000 5,339 30, % Awards & Recognition 13,650 (13,650) 13,650 (13,650) 26, % Bank Charges & Fees 5,409 3,750 (1,659) 5,409 3,750 (1,659) 7, % Books, References & Subscriptions 28,754 20,871 (7,884) 28,754 20,871 (7,884) 41, % Business Registration Fees 535 6,100 5, ,100 5,565 8, % Conference Registration Fees 2,176 4,350 2,174 2,176 4,350 2,174 7, % Contracted Services 211, ,099 10, , ,099 10, , % Convention Services 93, ,144 22,946 93, ,144 22, , % Food & Beverage 118,955 97,816 (21,139) 118,955 97,816 (21,139) 446, % Grants Awarded 91,461 2,500 (88,961) 91,461 2,500 (88,961) 7, % Insurance 2,290 8,000 5,710 2,290 8,000 5,710 17, % Investment Management Fees 15,018 (15,018) 15,018 (15,018) 0.0% Legal Fees 24,462 53,125 28,663 24,462 53,125 28, , % Maintenance & Repairs Equipment 1,920 5,700 3,780 1,920 5,700 3,780 5, % Meeting Supplies 4,392 4, ,392 4, , % Membership Dues 8,234 13,460 5,226 8,234 13,460 5,226 26, % Merchant Processing Fees 10,175 16,000 5,825 10,175 16,000 5,825 25, % Office Supplies & Expense 58,341 34,555 (23,787) 58,341 34,555 (23,787) 69, % Postage & Shipping 35,849 67,062 31,212 35,849 67,062 31, , % Printing 47, , ,485 47, , , , % Research 11 (11) 11 (11) 0.0% Rent 702, ,841 (84,433) 702, ,841 (84,433) 1,010, % Security 4,000 4,000 4,000 4,000 13, % Speaker Fees 2,283 12,500 10,217 2,283 12,500 10,217 42, % Taxes Personal Property 3,600 3,600 3,600 3,600 3, % Technology 195, ,288 6, , ,288 6, , % Telephone & Telecommunications 44,513 39,125 (5,388) 44,513 39,125 (5,388) 85, % Training & Development Board 600 (600) 600 (600) 0.0% Travel Expense Staff 113, ,950 29, , ,950 29, , % Travel Expense Volunteers 207, ,534 (5,810) 207, ,534 (5,810) 646, % Travel Expense Board 125, ,182 (196) 125, ,182 (196) 336, % Total Operating Expenses $ 2,275,167 $ 2,448,553 $ 173,385 $ $ $ $ 2,275,165 $ 2,448,551 $ 173,385 $ 5,727, % Page A-7

14 NATIONAL PTA Statement of Activities (Actual vs. Budget) Notes to Financial Statement Reference [A] Explanation The favorable revenue variance to budget of $309.5 for the 6 months ended December 31, 2016, is due to corporate contributions / fee for service revenue for new contracts, rental income, and advertising. [B] A supplemental grant from the Bill & Melinda Gates Foundation was obtained in December Page A-8

15 National PTA Statement of Activities (Actual vs. Prior Year) For the 6 Months Ended 12/31/2016 Favorable or (Unfavorable) 12/31/ /31/2015 Variance REVENUE Advertising $ 363,944 $ 267,121 $ 96,823 Contributions Corporate 459,480 17, ,149 Contributions Individuals 25,386 13,534 11,852 Contributions In kind 99,394 (99,394) Event Registration Fees 89,022 (600) 89,622 Exhibit Income 102, ,030 Grant Revenue 306,000 1,756,285 (1,450,285) Interest & Dividend Income 121, ,945 (13,267) Membership Dues Revenue 7,159,903 7,444,321 (284,418) Rental Income 140, ,801 (93,801) Royalty Income 18,374 22,909 (4,534) Sponsorship Income 188, ,829 Subscription Income 8, ,825 Other Income 25,652 25,652 TOTAL Revenue 9,009,147 9,989,065 (979,917) EXPENSES Personnel Expense (Schedule A) 3,139,004 2,844,022 (294,982) Operating Expenses (Schedule B) 2,275,165 1,993,079 (282,087) Total Personnel & Operating Expenses 5,414,169 4,837,101 (577,069) Allocated Expenses Overhead (5,130) 15,781 20,911 Personnel (12,424) 12,424 Total Allocated Expenses (17,554) 15,781 33,334 TOTAL Expenses 5,396,615 4,852,882 (543,735) Net Operating Income or (Loss) 3,612,532 5,136,183 (1,523,652) Non Operating Revenue or (Expense) Realized Gain or (Loss) on Investments (50,992) 50,992 Unrealized Gain or (Loss) on Investments 66,993 (125,167) 192,160 Total Non Operating Revenue or (Expense) 66,993 (176,159) 243,152 Change in Net Assets $ 3,679,525 $ 4,960,024 $ (1,280,499) Page A-9

16 National PTA Statement of Activities (Actual vs. Prior Year) For the 6 Months Ended 12/31/2016 Favorable or (Unfavorable) 12/31/ /31/2015 Variance Schedule A Personnel Expense Salaries & Wages $ 2,530,817 $ 2,282,020 $ (248,797) Stipends 22,027 11,802 (10,225) Payroll Tax Expense 177, ,756 (5,163) Retirement Expense 85,788 53,469 (32,318) Insurance Employees 283, ,798 (90,327) Payroll Processing Fees 4,851 (4,851) Staff Recruitment & Retention 9,791 97,882 88,091 Employee Membership Dues 190 8,395 8,205 Staff Training & Development 14,025 11,756 (2,268) Temporary Staff 10,472 13,143 2,671 Total Personnel Expense $ 3,139,005 $ 2,844,021 $ (294,982) Page A-10

17 National PTA Statement of Activities (Actual vs. Prior Year) For the 6 Months Ended 12/31/2016 Favorable or (Unfavorable) 12/31/ /31/2015 Variance Schedule B Operating Expenses Advertising & Marketing Expense $ 8,383 $ 33,635 $ 25,252 Amortization & Depreciation 76, , ,638 Audio/Visual Expense 4,957 (4,957) Audit & Accounting Fees 19,661 15,949 (3,712) Awards & Recognition 13,650 22,400 8,750 Bad Debt Expense 2,106 2,106 Bank Charges & Fees 5,409 18,044 12,635 Books, References & Subscriptions 28,754 2,892 (25,863) Business Registration Fees 535 4,618 4,083 Conference Registration Fees 2,176 4,249 2,073 Contracted Services 211, ,446 43,953 Convention Services 93,198 (93,198) Donated Goods & Services 99,000 99,000 Food & Beverage 118,955 19,707 (99,248) Grants Awarded 91, ,658 19,197 Insurance 2,290 (2,290) Interest Expense Investment Management Fees 15,018 (15,018) Legal Fees 24,462 28,976 4,514 Maintenance & Repairs Equipment 1,920 10,514 8,594 Meeting Supplies 4, (3,832) Membership Dues 8,234 (8,234) Merchant Processing Fees 10,175 7,845 (2,330) Office Supplies & Expense 58,341 18,717 (39,624) Postage & Shipping 35,849 (9,542) (45,391) Printing 47,511 2,801 (44,709) Research 11 (11) Rent 702, ,422 18,148 Speaker Fees 2,283 (2,283) Taxes Personal Property 3,358 3,358 Technology 195, ,029 (6,370) Telephone & Telecommunications 44,513 48,427 3,915 Training & Development Board 600 (600) Travel Expense Staff 113,604 66,384 (47,220) Travel Expense Volunteers 207,344 72,215 (135,129) Travel Expense Board 125,378 66,934 (58,443) Total Operating Expenses $ 2,275,167 $ 1,993,079 $ (282,087) Page A-11

18 NATIONAL PTA Statement of Activities (Actual vs. Prior Year) Notes to Financial Statement Reference [A] Explanation Total revenue had an unfavorable prior year variance of $980.0K over the prior year, which is due to the new grants we received in the prior fiscal year. The unfavorable variance is offset by the $379.9K 2016 Annual Convention revenue being recognized in the current fiscal year. [B] [C] Personnel expenses were $295.0 higher when compared with the prior year due to open positions in the prior year being filled subsequent to December Operating expenses were $295.1 greater than the prior year due to Convention 2016 expenses being split between the 2016FY and 2017FY. Page A-12

19 NATIONAL PTA Statement of Financial Position 9/30/2016 9/30/2015 Variance ASSETS Current Assets Cash & Cash Equivalents $ 2,622,090 $ 2,024,790 [A] $ 597,300 Accounts Receivable 2,207,301 2,148,000 59,301 Due from Endowment Fund 27, ,967 Due from National PTA Properties 38,516 38,516 Prepaid Expenses 395, ,735 [B] 167,395 Total Current Assets 5,290,053 4,400, ,479 Fixed Assets Furniture & Office Equipment 934,140 1,456,126 [C] (521,986) Total Fixed Assets, Cost 934,140 1,456,126 (521,986) Accumulated Depreciation (728,710) (1,226,890) 498,180 Total Fixed Assets, Net 205, ,236 (23,806) Other Assets Investments 5,439,223 5,102,091 [D] 337,132 Investment in Natonal PTA Properties 6,335,639 6,120,970 [E] 214,669 Security Deposit 67,176 67,176 Grants Receivable Long Term Portion 1,177,613 [F] 1,177,613 Total Other Assets 13,019,651 11,290,237 1,729,414 TOTAL ASSETS $ 18,515,134 $ 15,920,047 $ 2,595,087 Page A-1

20 NATIONAL PTA Statement of Financial Position 9/30/2016 9/30/2015 Variance LIABILITIES & NET ASSETS Current Liabilities Accounts Payable & Accrued Expenses $ 722,627 $ 535,597 $ 187,030 Capital Lease Obligation, Current Portion 15,168 15,168 Deferred Revenue 603,892 15,000 [G] 588,892 Deferred Rent 18, ,608 (181,356) Due to Endowment Fund 10,414 44,137 (33,723) Other Current Liabilities 254, ,857 (30,873) Total Current Liabilities 1,625,337 1,080, ,138 Other Liabilities Security Deposit 9,803 (9,803) Capital Lease Obligation Long Term Portion 3,345 39,298 (35,953) Total Other Liabilities 3,345 49,101 (45,756) Total Liabilities 1,628,682 1,129, ,382 Net Assets 16,886,452 14,790,747 2,095,705 TOTAL LIABILITIES & NET ASSETS $ 18,515,134 $ 15,920,047 $ 2,595,087 Page A-2

21 National PTA Statement of Financial Position Notes to Financial Statement Reference [A] [B] [C] Explanation The cash and cash equivalents are greater in the current year primarily due to the increase in accounts payable and deferred revenue when compared with the prior year. The prepaid expense is greater than the prior year by $167.4K, primarily due to the ongoing investment in the new database. Once the database is placed in service, the prepaid expense will be converted to a fixed asset. The furniture & fixtures account decreased $550.6K when compared with the prior year because computer equipment, which was fully depreciated and not in use, was written off. [D] [E] Investments increased $337.1K or 6.6% when compared with the prior year. The investments have increase $166.2K or 3.2% since July 1, The investment in NPTA Properties LLC increased during the previous fiscal year, which resulted in the $214.7K variance when the current year is compared with the prior year. Beginning July 1, 2016, a due to/from account will be used to manage the intercompany transactions. This will assist management in evaluating the financial performance of the real estate held in this entity. [F] The grants received that span mulitiple fiscal years make up the balance in grants receivable longterm. As grantors are invoiced based on the grant document, this balance will be reduced. [G] Deferred revenue is $588.9K higher in 2016 when compared with 2015 because of contracts generated in the prior fiscal year that will have income recognized in subsequent years (i.e., 2017FY and beyond). Page A-3

22 National PTA Statement of Net Assets For the 3 Month(s) Ended 9/30/2016 For the 3 Month(s) Ended 9/30/2015 Temporarily Permanently Temporarily Permanently Unrestricted Restricted Restricted TOTAL Unrestricted Restricted Restricted TOTAL Beginning Balance Undesignated $ 13,486,681 $ 1,437,155 $ 516,490 $ 15,440,326 $ 11,876,772 $ 1,720,933 $ 516,490 $ 14,114,195 Board Designated 1,054,130 1,054, , ,710 Change in Net Assets 495,085 (103,089) 391,996 (243,158) (243,158) Ending Balance $ 15,035,896 $ 1,334,066 $ 516,490 $ 16,886,452 $ 12,553,324 $ 1,720,933 $ 516,490 $ 14,790,747 Board Designated Mortgage Relief $ 731,000 $ 731,000 Legacy Room 234, ,290 Database 80,000 80,000 Historical Preservation 8,420 8,420 Total Board Designated $ 1,054,130 $ 919,710 Page A-4

23 National PTA Statement of Activities (Actual vs. Budget) For the 3 Months Ended 9/30/2016 Unrestricted Temporarily Restricted TOTAL % of Favorable or Favorable or Favorable or Annual (Unfavorable) (Unfavorable) (Unfavorable) Annual Budget Actual Budget Variance Actual Budget Variance Actual Budget Variance Budget Met REVENUE Advertising $ 197,879 $ 139,013 $ 58,866 $ $ $ $ 197,879 $ 139,013 $ 58,866 $ 542, % Contributions Corporate 199, ,750 (34,046) 199, ,750 (34,046) 935, % Contributions Endowment Fund 157, % Contributions Individuals 15,382 21,250 (5,868) 15,382 21,250 (5,868) 85, % Contributions In kind 7,500 (7,500) 7,500 (7,500) 30, % Event Registration Fees 89,022 79,375 9,647 89,022 79,375 9, , % Exhibit Income 102, ,588 (48,558) 102, ,588 (48,558) 460, % Interest & Dividend Income 9,808 13,977 (4,169) 9,808 13,977 (4,169) 205, % Membership Dues Revenue 2,283,138 1,707, ,181 2,283,138 1,707, ,181 8,322, % Rental Income 105, , , , % Royalty Income 11,489 18,750 (7,261) 11,489 18,750 (7,261) 75, % Sponsorship Income 188, ,200 36, , ,200 36, , % Subscription Income 8,850 2,762 6,088 8,850 2,762 6,088 11, % Other Income 21,675 1,250 20,425 21,675 1,250 20,425 5, % Temporarily Restricted Revenue Released from Restriction 103,089 94,908 8,181 (103,089) (94,908) (8,181) 0.0% TOTAL Revenue 3,335,895 2,623,280 [A] 712,615 (103,089) (94,908) (8,181) 3,232,806 2,528, ,434 11,591, % EXPENSES Personnel Expense (Schedule A) 1,558,229 1,561,494 3,265 1,558,229 1,561,494 3,265 6,216, % Operating Expenses (Schedule B) 1,453,871 1,489,559 35,688 1,453,871 1,489,559 35,688 5,727, % Total Personnel & Operating Expenses 3,012,100 3,051,053 38,953 3,012,101 3,051,054 38,953 11,943, % Allocated Expenses Overhead (2,250) 2,250 (2,250) 2, % Personnel (4,975) 4,975 (4,975) 4, % Total Allocated Expenses (7,225) 7,225 (7,225) 7, % TOTAL Expenses 3,004,875 3,051,053 46,177 3,004,876 3,051,054 46,177 11,943, % Net Operating Income or (Loss) 331,020 (427,773) 758,792 (103,089) (94,908) (8,181) 227,930 (522,681) 750,611 (351,637) (64.8%) Non Operating Revenue or (Expense) Unrealized Gain or (Loss) on Investments 164, , , , % Total Non Operating Revenue or (Expense) 164, , , , % Change in Net Assets $ 495,086 $ (427,773) $ 922,859 $ (103,089) $ (94,908) $ (8,181) $ 391,996 $ (522,681) $ 914,678 $ (351,637) (111.5%) Page A-5

24 National PTA Statement of Activities (Actual vs. Budget) For the 3 Months Ended 9/30/2016 Unrestricted Temporarily Restricted TOTAL % of Favorable or Favorable or Favorable or Annual (Unfavorable) (Unfavorable) (Unfavorable) Annual Budget Actual Budget Variance Actual Budget Variance Actual Budget Variance Budget Met Schedule A Personnel Expense Salaries & Wages $ 1,253,695 $ 1,258,962 $ 5,266 $ $ $ $ 1,253,695 $ 1,258,962 $ 5,266 $ 4,983, % Stipends 8,209 14,858 6,649 8,209 14,858 6,649 59, % Payroll Tax Expense 91,296 89,509 (1,787) 91,296 89,509 (1,787) 358, % Retirement Expense 40,018 34,779 (5,239) 40,018 34,779 (5,239) 139, % Insurance Employees 148, ,224 (16,409) 148, ,224 (16,409) 531, % Staff Recruitment & Retention 2,261 3,738 1,477 2,261 3,738 1,477 32, % Employee Membership Dues 190 1,578 1, ,578 1,388 6, % Staff Training & Development 6,418 19,973 13,555 6,418 19,973 13,555 79, % Temporary Staff 5,031 5, ,031 5, , % Total Personnel Expense $ 1,558,230 $ 1,561,496 $ 3,265 $ $ $ $ 1,558,229 $ 1,561,494 $ 3,265 $ 6,216, % Page A-6

25 National PTA Statement of Activities (Actual vs. Budget) For the 3 Months Ended 9/30/2016 Unrestricted Temporarily Restricted TOTAL % of Favorable or Favorable or Favorable or Annual (Unfavorable) (Unfavorable) (Unfavorable) Annual Budget Actual Budget Variance Actual Budget Variance Actual Budget Variance Budget Met Schedule B Operating Expenses Advertising & Marketing Expense $ 2,743 $ 74,984 $ 72,241 $ $ $ $ 2,743 $ 74,984 $ 72,241 $ 300, % Amortization & Depreciation 42,332 34,670 (7,663) 42,332 34,670 (7,663) 138, % Audio/Visual Expense 4,957 10,000 5,043 4,957 10,000 5, , % Audit & Accounting Fees 22,000 (22,000) 22,000 (22,000) 30, % Awards & Recognition 11,600 (11,600) 11,600 (11,600) 26, % Bank Charges & Fees (103) 1,875 1,978 (103) 1,875 1,978 7,500 (1.4%) Books, References & Subscriptions 13,253 10,435 (2,818) 13,253 10,435 (2,818) 41, % Business Registration Fees (140) (140) ,000 (1.8%) Conference Registration Fees 1,580 3,275 1,695 1,580 3,275 1,695 7, % Contracted Services 135, ,800 (34,765) 135, ,800 (34,765) 584, % Convention Services 93, ,144 22,946 93, ,144 22, , % Food & Beverage 114,000 92,492 (21,508) 114,000 92,492 (21,508) 446, % Grants Awarded 30,721 2,500 (28,221) 30,721 2,500 (28,221) 7, % Insurance 1,787 4,750 2,963 1,787 4,750 2,963 17, % Investment Management Fees 7,343 (7,343) 7,343 (7,343) 0.0% Legal Fees 16,113 26,563 10,450 16,113 26,563 10, , % Maintenance & Repairs Equipment 640 5,700 5, ,700 5,060 5, % Meeting Supplies 4,342 4, ,342 4, , % Membership Dues 7,886 6,877 (1,009) 7,886 6,877 (1,009) 26, % Merchant Processing Fees 9,401 6,750 (2,651) 9,401 6,750 (2,651) 25, % Office Supplies & Expense 15,430 17,277 1,847 15,430 17,277 1,847 69, % Postage & Shipping 20,798 39,306 18,507 20,798 39,306 18, , % Printing 41,209 96,913 55,703 41,209 96,913 55, , % Rent 367, ,826 (16,011) 367, ,826 (16,011) 1,010, % Security 4,000 4,000 4,000 4,000 13, % Speaker Fees 2,283 12,500 10,217 2,283 12,500 10,217 42, % Taxes Personal Property 3,600 3,600 3,600 3,600 3, % Technology 113,973 99,908 (14,065) 113,973 99,908 (14,065) 401, % Telephone & Telecommunications 35,173 23,063 (12,110) 35,173 23,063 (12,110) 85, % Traing & Development Board 600 (600) 600 (600) 0.0% Travel Expense Staff 82,867 86,475 3,608 82,867 86,475 3, , % Travel Expense Volunteers 185, ,972 3, , ,972 3, , % Travel Expense Board 69,463 63,057 (6,406) 69,463 63,057 (6,406) 336, % Total Operating Expenses $ 1,453,871 $ 1,489,559 $ 35,688 $ $ $ $ 1,453,871 $ 1,489,559 $ 35,688 $ 5,727, % Page A-7

26 NATIONAL PTA Statement of Activities (Actual vs. Budget) Notes to Financial Statement Reference Explanation [A] The favorable revenue variance to budget of $712.6K for the 3 months ended September 30, 2016, is primarily due to membership dues income being $575.2K higher than budgeted. The variance represents a shift in membership reporting with dues being reported earlier in the year when compared with the prior year. It is anticipated that this variance will decrease over time during the fiscal year. Page A-8

27 National PTA Statement of Activities (Actual vs. Prior Year) For the 3 Months Ended 9/30/2016 Favorable or (Unfavorable) 9/30/2016 9/30/2015 Variance REVENUE Advertising $ 197,879 $ 84,500 $ 113,379 Contributions Corporate 199,704 17, ,374 Contributions Individuals 15,382 7,307 8,075 Contributions In kind 394 (394) Event Registration Fees 89,022 89,022 Exhibit Income 102, ,030 Grant Revenue 290,000 (290,000) Interest & Dividend Income 9,808 11,065 (1,257) Membership Dues Revenue 2,283,138 1,760, ,358 Rental Income 105, ,222 (31,222) Royalty Income 11,489 13,132 (1,643) Sponsorship Income 188, ,829 Subscription Income 8, ,825 Other Income 21,675 21,675 TOTAL Revenue 3,232,806 2,320,756 [A] 912,050 EXPENSES Personnel Expense (Schedule A) 1,558,229 1,443,466 [B] (114,763) Operating Expenses (Schedule B) 1,453, ,386 [C] (540,485) Total Personnel & Operating Expenses 3,012,100 2,356,852 (655,249) Allocated Expenses Overhead (2,250) 18,991 21,241 Personnel (4,975) 4,975 Total Allocated Expenses (7,225) 18,991 26,216 TOTAL Expenses 3,004,875 2,375,843 (629,033) Net Operating Income or (Loss) 227,931 (55,087) 283,017 Non Operating Revenue or (Expense) Realized Gain or (Loss) on Investments (62,903) 62,903 Unrealized Gain or (Loss) on Investments 164,066 (125,167) 289,234 Total Non Operating Revenue or (Expense) 164,066 (188,070) 352,137 Change in Net Assets $ 391,997 $ (243,157) $ 635,154 Page A-9

28 National PTA Statement of Activities (Actual vs. Prior Year) For the 3 Months Ended 9/30/2016 Favorable or (Unfavorable) 9/30/2016 9/30/2015 Variance Schedule A Personnel Expense Salaries & Wages $ 1,253,695 $ 1,162,951 $ (90,744) Stipends 8,209 5,901 (2,308) Payroll Tax Expense 91,296 91,181 (115) Retirement Expense 40,018 34,143 (5,875) Insurance Employees 148,633 93,784 (54,849) Staff Recruitment & Retention 2,261 42,491 40,231 Employee Membership Dues Staff Training & Development 6,418 4,663 (1,755) Temporary Staff 5,031 7,993 2,962 Total Personnel Expense $ 1,558,229 $ 1,443,466 $ (114,763) Page A-10

29 National PTA Statement of Activities (Actual vs. Prior Year) For the 3 Months Ended 9/30/2016 Favorable or (Unfavorable) 9/30/2016 9/30/2015 Variance Schedule B Operating Expenses Advertising & Marketing Expense $ 2,743 $ 12,835 $ 10,092 Amortization & Depreciation 42,332 80,776 38,443 Audio/Visual Expense 4,957 (4,957) Audit & Accounting Fees 22,000 (22,000) Awards & Recognition 11,600 19,200 7,600 Bad Debt Expense Bank Charges & Fees (103) 8,828 8,931 Books, References & Subscriptions 13,253 2,537 (10,716) Business Registration Fees (140) Conference Registration Fees 1,580 3,746 2,166 Contracted Services 135,565 80,101 (55,464) Convention Services 93,198 (93,198) Food & Beverage 114,000 19,466 (94,535) Grants Awarded 30,721 52,000 21,279 Insurance 1,787 (1,787) Interest Expense Investment Management Fees 7,343 (7,343) Legal Fees 16,113 5,316 (10,797) Maintenance & Repairs Equipment 640 1, Meeting Supplies 4,342 9 (4,333) Membership Dues 7,886 (7,886) Merchant Processing Fees 9,401 6,512 (2,889) Office Supplies & Expense 15,430 10,346 (5,084) Postage & Shipping 20,798 4,813 (15,986) Printing 41,209 1,561 (39,649) Rent 367, ,059 (17,777) Speaker Fees 2,283 (2,283) Taxes Personal Property Technology 113, ,222 28,249 Telephone & Telecommunications 35,173 19,187 (15,986) Traing & Development Board 600 (600) Travel Expense Staff 82,867 20,676 (62,190) Travel Expense Volunteers 185,020 57,483 (127,537) Travel Expense Board 69,463 12,739 (56,724) Total Operating Expenses $ 1,453,870 $ 913,385 $ (540,485) Page A-11

30 NATIONAL PTA Statement of Activities (Actual vs. Prior Year) Notes to Financial Statement Reference [A] Explanation Total revenue had a favorable variance of $912.1K over the prior year, which is due to the $379.9K 2016 Annual Convention revenue being recognized in fiscal year 2016, as well as favorable variances of $522.4K in membership dues and $113.4K advertising income. The increase in membership dues is primarily due to a timing difference in dues being reported when compared to the prior year. [B] Personnel expenses were $114.8K higher for the 3 months ended September 30, 2016 when compared with the prior year due to open positions in the prior year being filled subsequent to September [C] Operating expenses were $540.5K higher for the 3 months ended September 30, 2016 due to Convention 2016 expenses being split between the 2016FY and 2017FY. Page A-12

31 ENDOWMENT FUND FINANCIAL STATEMENTS September 2016

32 Endowment Fund of the National PTA Statement of Financial Position 9/30/2016 9/30/2015 Variance ASSETS Cash & Cash Equivalents $ 126,405 $ 99,583 $ 26,822 Investments 4,768,012 4,343,523 [A] 424,489 Due from National PTA 10,414 44,137 [B] (33,723) TOTAL Assets $ 4,904,831 $ 4,487,243 $ 417,588 LIABILITIES & NET ASSETS Due to National PTA $ 27,016 $ [B] $ 27,016 Net Assets Unrestricted Net Assets 3,034,057 3,158,926 (124,869) Board Designated Net Assets 1,660,520 1,660,520 Change in Net Assets 183,238 (332,203) 515,441 Total Net Assets 4,877,815 4,487, ,572 TOTAL Liabilities & Net Assets $ 4,904,831 $ 4,487,243 $ 417,588 Page B-1

33 Endowment Fund of the National PTA Statement of Financial Position Notes to Financial Statements Reference [A] [B] Explanation Investments were $424.5K or 9.8% greater than the prior year. The investment portfolio grew $183.5K or 4.0% for the 3 months ended September 30, Intercompany balances were paid during the previous fiscal year, which resulted in a decrease in these balances when compared with the prior year. Page B-2

34 Endowment Fund of National PTA Statement of Activities For the 3 Months Ended Friday, September 30, 2016 % of Favorable or Annual (Unfavorable) Annual Budget Actual Budget Variance Budget Met REVENUE Contributions $ 4,770 $ 3,250 $ 1,520 $ 13, % Founders Day Dues , % Life Time Achievement Awards 1,175 4,500 (3,325) 18, % Event Registration Fees 2,475 2, % Interest & Dividend Income 20,851 18,000 2, , % Total Revenue 30,087 25,750 4, , % EXPENSES Operating Expenses Accounting & Audit Fees 7, % Audio/Visual Expense % Business Registration Fees % Convention Registration Fees 1, % Food & Beverage 3,545 3,545 3, % Investment Management Fees 13,350 14,750 (1,400) 59, % Office Supplies & Expense (827) 3, % Travel Expense Board 7, % Total Operating Expenses 17,865 15,700 2,165 82, % Allocated Expenses Overhead % Personnel % Total Allocated Expenses % Total Expenses 18,700 15,700 2,999 82, % Net Operating Income or (Loss) 11,387 10,050 1, , % Non Operating Income or (Expense) Realized Gain or (Loss) on Investments (6,742) (6,742) 0.0% Unrealized Gain or (Loss) on Investments 178, , % Distribution to NPTA (157,314) 0.0% Change in Net Assets $ 183,237 $ 10,050 $ 173,188 $ 37, % Page B-3

35 Endowment Fund of National PTA Statement of Activities For the 3 Months Ended Favorable or (Unfavorable) 9/30/2016 9/30/2015 Variance REVENUE Contributions $ 4,770 $ 3,115 $ 1,655 Founders Day Dues 816 6,575 (5,758) Life Time Achievement Awards 1,175 1,270 (95) Event Registration Fees 2,475 2,475 Interest & Dividend Income 20,851 18,244 2,607 Total Revenue 30,087 29, EXPENSES Operating Expenses Audio/Visual Expense 847 (847) Business Registration Fees Food & Beverage 3,545 (3,545) Investment Management Fees 13,350 14,559 1,208 Office Supplies & Expense 123 (123) Total Operating Expenses 17,865 14,674 (3,191) Allocated Expenses Overhead 254 (254) Personnel 581 (581) Total Allocated Expenses 835 (835) Total Expenses 18,700 14,674 (4,026) Net Operating Income or (Loss) 11,387 14,530 (3,142) Non Operating Income or (Expense) Realized Gain or (Loss) on Investments (6,742) 82,243 (88,985) Unrealized Gain or (Loss) on Investments 178,592 (428,977) 607,568 Change in Net Assets $ 183,237 $ (332,204) $ 515,441 Page B-4

36 NATIONAL PTA PROPERTIES, LLC FINANCIAL STATEMENTS September 2016

37 National PTA Properties, LLC Statement of Financial Position 9/30/2016 9/30/2015 Variance ASSETS Current Assets Cash & Cash Equivalents $ 467,660 $ 429,743 [A] $ 37,917 Accounts Receivable 60,410 [B] 60,410 Accrued Rent 41,644 43,671 (2,027) Prepaid Expenses 58,507 16,210 [C] 42,297 Total Current Assets 628, , ,222 Fixed Assets Land 1,822,366 1,822,366 Building 7,289,464 7,289,464 Building Improvements 1,121,162 1,087,898 33,264 Tenant Improvements 1,378,069 1,378,069 Furniture & Fixtures 627, ,997 Total Fixed Assets Cost 12,239,058 12,205,794 33,264 Less: Accumulated Depreciation (2,523,253) (2,110,713) (412,540) Total Fixed Assets Net 9,715,805 10,095,081 (791,816) Other Assets Loan Acquisition Costs Net 36,250 1,120 35,130 TOTAL ASSETS $ 10,380,276 $ 10,585,825 $ (205,549) Page C-1

38 National PTA Properties, LLC Statement of Financial Position 9/30/2016 9/30/2015 Variance LIABILITIES & MEMBER EQUITY Liabilities Current Liabilities Accounts Payable & Accrued Expenses $ 21,615 $ 30,082 $ (8,467) Mortgage Note Payable Current Portion 319,393 6,389,040 [D] (6,069,647) Total Current Liabilities 341,008 6,419,122 (6,078,114) Other Liabilities Mortgage Note Payable Long Term Portion 5,930,669 [D] 5,930,669 Security Deposits 18,673 18,673 Due to National PTA 38,516 38,516 Total Other Liabilities 5,987,858 18,673 5,969,185 Total Liabilities 6,328,866 6,437,795 (108,929) Member Equity Beginning Balance, July 1 4,085,392 4,175,009 (89,617) Current Year Investment 2,715 (2,715) Net Income or (Loss) (33,982) (29,694) (4,288) Total Member Equity 4,051,410 4,148,030 (96,620) TOTAL LIABILITIES & MEMBER EQUITY $ 10,380,276 $ 10,585,825 $ (205,549) Page C-2

39 National PTA Properties, LLC Statement of Financial Position Notes to Financial Statement Reference [A] [B] [C] [D] Explanation Cash & cash equivalents are $37.9K higher when compared with the previous year due to the cash received from the escrow fund held by the previous mortgage company. Accounts receivable increased when compared with the prior year due to National PTA's rent being paid in January 2017, for the month of September Prepaid expenses increased due to making the 4th Floor space at 1240 N. Pitt Street market ready. The balance will be recorded as a marketing expense when the work is completed. The current portion of the mortgage decreased when compared with the previous year because of the refinancing of the mortgage in February The organization currently has a 4.15% naturally fixed rate mortgage that is fully amortized over a 15 year period. Page C-3

40 National PTA Properties, LLC Statement of Activities (Actual vs. Budget) For the 3 Months Ended 9/30/2016 % of Favorable or Annual (Unfavorable) Annual Budget Actual Budget Variance Budget Met REVENUE Rental Income $ 240,503 $ 263,314 [A] $ (22,811) $ 1,057, % Interest & Divident Income % Total Revenue 240, ,377 (22,733) 1,058, % EXPENSES Operating Expenses Amortization & Depreciation 104, ,297 (757) 413, % Audit & Accounting Fees 8, % Bank Charges & Fees 210 (210) 0.0% Facilities & Equipment 14,247 12,000 (2,247) 48, % Insurance Property & Liability 8,250 8,250 33, % Interest Expense 66,559 63,551 (3,008) 254, % Janitorial Services 1, (204) 3, % Leasing Commissions 801 3,979 3,178 3, % Legal Fees 104 (104) 0.0% Maintenance & Repairs 50,113 31,250 [B] (18,863) 125, % Property Management Fees 8,441 15,000 6,559 60, % Taxes Real Estate 89,000 89,000 89, % Utilities 22,553 21,250 (1,302) 85, % Total Operating Expenses 268, ,527 80,291 1,123, % Allocated Expenses Overhead 1,996 (1,996) 0.0% Personnel 4,394 (4,394) 0.0% Total Allocated Expenses 6,390 (6,390) 0.0% Total Expenses 274, ,527 73,901 1,123, % Net Income or (Loss) $ (33,982) $ (85,150) $ 51,168 $ (64,988) 71.5% Page C-4

41 National PTA Properties, LLC Statement of Activities Notes to Financial Statement Reference [A] [B] Explanation Rental income has an unfavorable year to date budget variance of $22.8K or 8.7%. This variance is due to the 4th floor not being rented until April In addition, the lease for JPS was renegotiated to a lower monthly amount for a new 5 year term beginning in August No tenant improvement allowances were provided with the new lease, which justified offering a lower monthly rent. Maintenance & Repairs has an unfavorable year to date budget variance of $18.9K or 60.3% due to HVAC repairs that were incurrred in the month of August 2016 for the 2nd and 4th floors in building Page C-5

42 National PTA Properties, LLC Statement of Activities (Actual vs. Prior Year) For the 3 Months Ended Favorable or (Unfavorable) 9/30/2016 9/30/2015 Variance REVENUE Rental Income $ 240,503 $ 248,072 $ (7,569) Interest & Divident Income Total Revenue 240, ,159 (20,010) EXPENSES Operating Expenses Amortization & Depreciation 104, ,842 (2,212) Bank Charges & Fees 210 (210) Facilities & Equipment 14,247 11,315 (2,932) Interest Expense 66,559 92,390 25,831 Janitorial Services 1, (220) Leasing Commissions 801 (801) Legal Fees 104 (104) Maintenance & Repairs 50,113 42,549 (7,564) Property Management Fees 8,441 8,195 (246) Utilities 22,553 20,628 (1,925) Total Operating Expenses 268, ,853 9,617 Allocated Expenses Overhead 1,996 (1,996) Personnel 4,394 (4,394) Total Allocated Expenses 6,390 (6,390) Total Expenses 274, ,853 3,227 Net Operating Income or (Loss) (33,982) (29,694) (4,288) Net Income or (Loss) $ (33,982) $ (29,694) $ (4,288) Page C-6

43 National PTA Properties, LLC Statement of Cash Flows For the Three Months Ended September 30, 2016 CASH FLOWS FROM OPERATING ACTIVITIES Net Income or (Loss) $ (33,982) Adjustments to reconcile change in net assets to net cash to net cash used by operating activities: Amortization & depreciation 104,054 (Increase) or decrease in: Accrued rent (5,141) Accounts receivable (60,410) Prepaid expenses (31,221) Increase or (decrease) in: Accrued expenses (267) Prepaid rent received (8,757) Due to National PTA 38,516 Net cash provided by operating activities 2,792 CASH FLOWS FROM FINANCING ACTIVITIES Principal payment on mortgage loan (77,233) Cash & cash equivalents as of June 30, ,101 CASH & CASH EQUIVALENTS as of SEPTEMBER 30, 2016 $ 467,660 Page C-7

44 NATIONAL PTA CONSOLIDATED FINANCIAL STATEMENTS September 2016

45 National PTA & Affiliates Consolidating Statement of Financial Position 9/30/2016 Endowment NPTA Eliminating Consolidated NPTA Fund Properties Entries Total ASSETS Current Assets Cash & Cash Equivalents $2,622,089 $ 126,405 $ 467,660 $ $ 3,216,154 Accounts Receivable 2,207,302 60,410 (60,410) 2,207,302 Due from Endowment Fund 27,016 (27,016) Due from National PTA 10,414 (10,414) Due from National PTA Properties 38,516 (38,516) Accrued Rent 41,644 41,644 Prepaid Expenses 395,130 58, ,637 Total Current Assets 5,290, , ,221 (136,356) 5,918,737 Fixed Assets Land 1,822,366 1,822,366 Building 7,289,464 7,289,464 Building Improvements 1,121,162 1,121,162 Tenant Improvements 1,378,069 1,378,069 Furniture, Fixtures & Equipment 934, ,997 1,562,137 Software Total Fixed Assets Cost 934,140 12,239,058 13,173,198 Less: Accumulated Depreciation (728,710) (2,523,253) (3,251,963) Total Fixed Assets Net 205,430 9,715,805 9,921,235 Other Assets Investments 5,439,223 4,768,012 10,207,235 Grants Receivable Long Term Portion 1,177,611 1,177,611 Loan Acquisition Costs Net 36,250 36,250 Security Deposits 67,176 67,176 Investment in NPTA Properties PLLC 6,335,639 (6,335,639) Total Other Assets 13,019,649 4,768,012 36,250 (6,335,639) 11,488,272 TOTAL ASSETS 18,515,132 4,904,831 10,380,276 (6,471,995) 27,328,244 Page D-1

46 9/30/2016 Endowment NPTA Eliminating Consolidated NPTA Fund Properties Entries Total LIABILITIES & NET ASSETS LIABILITIES Current Liabilities Accounts Payable & Accrued Expenses $ 722,626 $ $ 21,615 $ (60,410) $ 683,831 Deferred Revenue 603, ,892 Deferred Rent 18,251 18,251 Capital Lease Obligation, Current Portion 15,168 15,168 Due to National PTA 27,016 38,516 (65,532) Due to Endowment Fund 10,414 (10,414) Mortgage Payable Current Portion 319, ,393 Other Current Liabilities 254, ,984 Total Current Liabilities 1,625,335 27, ,524 (136,356) 1,895,519 Other Liabilities National PTA & Affiliates Consolidating Statement of Financial Position Capital Lease Obligation Long Term Portion 3,345 3,345 Mortgage Payable Long Term Portion 5,930,669 5,930,669 Security Deposits 18,673 18,673 Total Other Liabilities 3,345 5,949,342 5,952,687 Total Liabilties 1,628,680 27,016 6,328,866 (136,356) 7,848,206 NET ASSETS Member Equity 4,085,392 (6,335,639) (2,250,247) Net Assets 16,494,456 4,694,577 21,189,033 Change in Net Assets 391, ,238 (33,982) 541,252 Total Net Assets 16,886,452 4,877,815 4,051,410 (6,335,639) 19,480,038 TOTAL LIABILITIES & NET ASSETS $ 18,515,132 $ 4,904,831 $ 10,380,276 $ (6,471,995) $ 27,328,244 Page D-2

47 National PTA & Affiliates Consolidating Statement of Activities For the 3 Month(s) Ended 9/30/2016 Favorable or Endowment NPTA Eliminating Consolidated Consolidated (Unfavorable) NPTA Fund Properties Entries Total Budget Variance REVENUE Advertising $197,879 $ $ $ $ 197,879 $ 139,013 $ 58,866 Contributions Corporate 199, ,704 83, ,954 Contributions Individuals 15,382 6,761 22,143 29,000 (6,857) Contributions In kind 7,500 (7,500) Event Registration Fees 89,022 2,475 91,497 79,375 12,122 Exhibit Income 102, , ,588 (48,558) Foundation/Fee for Service Revenue 150,000 Interest & Dividend Income 9,808 20, ,800 32,040 (1,240) Membership Dues Revenue 2,283,138 2,283,138 1,707, ,181 Rental Income 105, ,503 (181,230) 164,273 82,084 82,189 Royalty Income 11,489 11,489 18,750 (7,261) Sponsorship Income 188, , ,200 36,629 Subscription Income 8,850 8,850 2,762 6,088 Other Income 21,675 21,675 1,250 20,425 TOTAL Revenue 3,232,806 30, ,644 (181,230) 3,322,307 2,636, ,038 EXPENSES Personnel Expense (Schedule A) 1,558,229 1,558,229 1,561,494 3,265 Operating Expenses (Schedule B) 1,453,872 17, ,236 (181,230) 1,558,743 1,672, ,816 Total Personnel & Operating Expenses 3,012,101 17, ,236 (181,230) 3,116,972 3,234, ,081 Allocated Expenses Overhead (2,250) 254 1,996 Personnel (4,975) 581 4,394 Total Allocated Expenses (7,225) 835 6,390 TOTAL Expenses 3,004,876 18, ,626 (181,230) 3,116,972 3,234, ,081 Net Operating Income or (Loss) 227,930 11,387 (33,982) 205,335 (597,784) 803,119 Non Operating Revenue or (Expense) Realized Gain or (Loss) on Investments (6,742) (6,742) (6,742) Unrealized Gain or (Loss) on Investments 164, , , ,658 Total Non Operating Revenue or (Expense) 164, , , ,916 Change in Net Assets $ 391,996 $ 183,237 $ (33,982) $ $ 541,251 $ (597,784) $ 1,139,035 Page D-3