Copyright 2016 INSIDE Public Accounting THE 2016 / INSIDE PUBLIC ACCOUNTING SURVEY & ANALYSIS OF FIRMS

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Copyright 2016 THE 2016 / INSIDE PUBLIC ACCOUNTING SURVEY & ANALYSIS OF FIRMS 39-43 Mergers / Acquisitions Do not include lateral hires, professional staff or partners that were hired from another

1 Copyright 2016 THE 2016 / INSIDE PUBLIC ACCOUNTING SURVEY & ANALYSIS OF FIRMS Mergers / Acquisitions Do not include lateral hires, professional staff or partners that were hired from another firm with a book of business in this area. M&A should be considered a firm (partners and staff) acquisition Mergers / Acquisitions If your firm acquired another firm during your firm's reporting year, please provide the TOTAL number (headcount) of all partners / staff and revenues from the acquisition(s). s will be held in confidence. Do not include effects of lateral hires in this section. 46 Gross Total gross revenue from all entities at the firm's FYE, net of client reimbursables. Subsidiary revenue should be reported. If the CPA firm owns less than 100% of the subsidiary, include the percentage (%) of revenue equal to the percentage (%) of ownership of the subsidiary. The actual dollar amount should represent all revenues that your time and billing system says you should charge at standard rates. Report accrual basis revenues before bad debt write-offs. 47 Net Billed amount (net of actual client reimbursables) from all entities included in the firm's GROSS REVENUE. Write-ups and write-downs should be included in this number, but bad debts should not. 48 Net - Organic Growth Percentage growth (+ or -) from the previous reporting year organic growth only. Do not include effects of mergers on net revenue percentage change. However, revenues from existing clients brought into the firm through lateral hires (a partner with existing book of business) is considered organic growth. 49 Net - All Growth Percentage growth (+ or -) from the previous reporting year from all sources of revenue for the firm including mergers. 50 Percentage of Net Other Than Charge Hours Many firms provide services that generate revenue regardless of charge hours (such as revenues on assets under management or 'success fees' over and above the work performed). Please indicate the percentage of the firm's total net revenues derived from something other than charge hours. If none, please enter "0%." Net by Service Area Please ensure that Rows equal total NET REVENUES as entered on Row Industry Niches Indicate the top three industry niches of your firm, based on total net revenues derived from those niches, if applicable. If an industry niche is not provided in the drop-down menu, please select "other" and define it in column C of the appropriate row on the survey input tab. Please also indicate the total percentage of net revenues that the industry niche accounts for. 84 Total Net Income before EQUITY partner distributions Net revenue (Row 47) less expenses. Include among expenses; payments to non-equity partners; payments to retired partners, DO NOT include as expenses any unique equity partner benefits such as car allowance(s), salaries / compensation or return-on-capital of current equity partners.

2 85 Organic Growth Only in Net Income Percentage growth (+ or -) in net income from the previous reporting year as a result of organic growth only. Do not include effects of mergers on net income percentage growth or decline. However, income from revenue from existing clients brought into the firm through lateral hires (a partner with existing book of business) should be included in the firm's organic growth. 86 All Growth in Net Income Percentage growth (+ or -) in net income from the previous reporting year from all sources of income including mergers. 87 Percentage of Total Net Income Distributed to Equity Partners What percentage (%) of the total net income reported for the firm's FY was distributed, or will be distributed in the first six months of the firm's current FY, to equity partners in the form of compensation, bonuses, unique benefits, profit sharing etc.? 91 Firmwide Realization Percentage (Billed) The formula is Total Amount Billed divided by (Actual Charge Hours x Standard Billing Rates.) The numerator would be what was ACTUALLY BILLED. The denominator would be ALL CHARGE HOURS (before any write-offs) multiplied by full standard billing rates (before any write-downs or writeups). This metric is a measurement of 1) chargeable time that was not recorded, 2) captured time that was not billed, and 3) billing rates that were different (up or down) from standard rates. 93 Total Billed Receivables at FYE Total accounts receivable (accrual) and include allowance for doubtful accounts. 95 Total Unbilled Work in Progress (WIP) at FYE Total Unbilled Work in Progress (WIP) should be adjusted, if applicable, for any additional potential write-offs or write-downs to reflect truer value. 99 Firmwide Personnel Costs as a (Exclude all equity partner compensation and unique benefits). Include ALL firm costs for administrative staff, professional staff, compensation, commissions, bonuses, payroll taxes and direct benefit costs for ALL non-equity partners, interns, professional staff, administrative staff and all firmwide staff. Exclude all equity partner compensation and unique benefits. 100 Professional Liability Insurance Costs as a Please include all costs associated / related to your professional liability insurance for your firm s fiscal year. Professional liability insurance costs should not be more than 3.0% of the firm's net revenues, based on historical data. 101 Marketing Costs as a (Exclude all equity partner compensation and unique benefits). Include all marketing staff (in-house or outsourced) compensation (INCLUDING what is entered in Row 99) bonuses, payroll taxes, direct benefits costs and all direct marketing costs (brochures, media, advertising, all other costs attributable to the marketing budget). EXCLUDE equity partner compensation and time. 102 Technology Costs as a Include all technology staff (in-house or outsourced) compensation (INCLUDING what is entered in Row 99) bonuses, payroll taxes, direct benefits costs and all IT direct costs (hardware, software, hardware/software training costs, related to technology budget). EXCLUDE equity partner compensation and time. 103 Professional Staff Training Costs as a percentage (%) of Net Include all professional staff-related training costs, which includes travel expenses, seminar costs, registration fees, in-house trainer compensation (INCLUDING what is entered in Row 99), etc. EXCLUDE equity partner compensation and time.

3 104 Recruiting Costs as a Include all direct recruiting costs, such as travel, office visits, job placements, college recruiting, staff time associated with recruiting efforts, travel reimbursements, meals, outsourced recruiter fees, in-house recruiter compensation (INCLUDING what is entered in Row 99) etc. EXCLUDE equity partner compensation and time. 106 Total Square Feet Utilized by the Firm If the firm leases space: enter the total square footage committed to in the lease(s). If the firm owns space, do not include in the total any and all space that is sublet, or not currently used by the firm Firm Capital The classic accrual basis 'GAAP' definition Assets minus liabilities = capital. (This is equity partners' equity in the firm, partners' capital in a partnership and members' capital in an LLC.) Exclude any liabilities for retirement obligations, and any funded retirement assets Full Time Equivalent (FTE) (FULL-TIME EQUIVALENTS - FTE) Complete the FTE metrics on Rows , Col. C as: Total No. of FTE available to you during your entire fiscal year (not the FTE number on the day of your fiscal year end). Please provide Full Time Equivalent (FTE) numbers only based on 2,080 hours per year. FTE can never be more than 1.0 FTE, but can be less than 1.0 FTE. Example: 1 equity partner works 2,600 hrs. annually; 2 professional staff members work 1,040 hrs. annually and 1 professional staff works 520 hrs. annually. The FTE for this group would be 2.25 FTE. Include in the FTE count a prorated number for partial year staff (e.g. staff hired six months into your fiscal year would equal 0.5 FTE), and any and all seasonal staff, including interns. Note: Professional staff years of experience are based on the amount of time a staff member has worked in public accounting, not necessarily your firm. 118 non-unique benefits. Column D Charge Hours Firmwide Provide the total CHARGE hours for each specified GROUP in Rows 118, 122, , based on the firm's total FTE for each GROUP. Firmwide totals will be auto-summed in Row 135. Column E Work Hours Firmwide Provide the total WORKED hours for each specified GROUP in rows 118, 122, , , based on the firm's total FTE for each GROUP. Include all professional training time, CPE, but EXCLUDE PTO - vacation, paid holidays, sick time, jury duty, etc. Firmwide totals will be autosummed in Row 135 Column F Average Stated Billing Rates Please provide your average stated billing rates for each specified GROUP. 122 Non-Equity Partner Average Annual Compensation Please include all compensation, bonuses, commissions (W-2) reporting All Client Service Professional Staff Please indicate the number of Full Time Equivalents (FTEs) in each GROUP, by years of experience. Please include interns in the 0-2 year GROUP. Paraprofessionals should be included in Row 128. Exclude ALL partners from this calculation.

4 All Client Service Professional Staff Avg. Compensation Include salary, bonuses, overtime and commissions. If less than FTE of 1.0, please annualize total compensation. When providing an average for 0-2 year experience staff, please EXCLUDE INTERN compensation. 129 Other Professional Staff Not Elsewhere Classified in Rows Enter all other client-serving professional staff (FTE) that were not included in Rows For outsourced staff under Compensation please indicate the annual fee paid for the services of the outsourced provider (please include fees only not direct costs for projects, etc.). 131 Total Client Service Professional Staff with a Current Certified Public Accountant (CPA) License Indicate the Full Time Equivalent (FTE) client service professionals that have an active CPA license. Exclude ALL administrative staff. This FTE count will not be duplicated into the firmwide totals, and should be a separate FTE from all other FTE data. 133 Administrative and Support Staff Include all Full Time Equivalent (FTE) administrative staff whose primary client is the firm and other staff who do not directly serve clients as the main part of their job, e.g., marketing, administrative assistants. 134 All Other Non-Client Service Staff (FTE) Include all other staff (non client serving) not elsewhere classified to ensure the right number of TOTAL FTE STAFF in row Percentage of Professional Staff Turnover This is the percentage of Full Time Equivalent (FTE) professional staff (including all professional staff, paraprofessionals, all partners) who left the firm during your FY divided by the number of FTE professional staff at the start of the firm's FY. EXCLUDE ALL interns and seasonal staff. 138 Number of Voluntary Professional Staff Turnover The Full Time Equivalent (FTE) number of professional staff (including all professional staff, paraprofessionals, all partners) who left the firm on their own. EXCLUDE ALL interns and seasonal staff. 139 Number of Involuntary Professional Staff Turnover The Full Time Equivalent (FTE) number of professional staff (including all professional staff, paraprofessionals, all partners) who were terminated. EXCLUDE ALL interns and seasonal staff Average Continuing Professional Education (CPE) per Professional Staff Compensation, Years of Experience for Firm Operations Indicate the average annual hours per professional staff based on your firm's requirements. Do not include any training / continuing education for administrative / non-professional staff. Include salary, bonuses, overtime and commissions. If less than 1.0 FTE, please annualize total compensation. If outsourced, include the fees paid directly for the service, do not included any other costs, other than compensation for the outsourced professional fee. If available, please also provide years of experience and years with the firm (years under contract with the firm) for outsourced professionals. 148 Chief Executive Officer (CEO) (Not the managing partner or executive committee) This person is an administrative executive reporting directly to the MP and / or executive committee / partner group. It is NOT a former client-service partner who no longer has client responsibility. 195 Newly Admitted Non-Equity Partner Compensation Include salary, bonuses, overtime and commissions. If less than 1.0 FTE, please annualize total compensation.

5 Newly Admitted and Current unique benefits. 200 Total Managing Partner Compensation benefits Credits Does your current partner compensation formula provide / allow for greater compensation opportunities for success in the areas identified in rows ? 235 Dollar Amount That The MP Personally Manages This is the MPs book of business, direct client responsibilities. Should not be the entire firmwide client base. 243 Average New Equity Partner Capital Requirement What is the firm's current buy-in (Capital Requirement) amount for new equity partners? Equity Partner Retirement Plan Indicate if the firm's partnership agreement defines terms for a retirement plan for equity partners. A traditional 401(k) would not qualify as a partner retirement plan. 247 Equity Partner Retirement Funding If yes on Row 245, what is the funding instrument(s)? May include firm profits, life insurance, ESOP, defined benefit plans, annuity contracts, etc. DO NOT INCLUDE ANY 401(k) PLAN. 402 Opt Out uses the results of this survey to identify firms for published accolades such as Best of the Best, IPA 100, 200 and 300 firms and the fastest-growing firms. IPA strongly encourages all firms to be considered for ranking purposes and for accolades - but you may opt-out here if you choose not to be included. 403 Managing Partner / CEO Approval To ensure data is correct, please have the managing partner / CEO review this survey prior to submission. Thank you for your cooperation!

AIA 2017 Compensation Survey Survey Questions

Contact Info AIA 2017 Compensation Survey Survey Questions Contact Info *1. I currently work for a firm that has at least 1 domestic office with 3 or more architecture, at least 1 of whom is full-time.