PENNSYLVANIA INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS COMBINED FINANCIAL STATEMENTS FOR THE YEARS ENDED APRIL 30, 2016 AND 2015

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1 COMBINED FINANCIAL STATEMENTS

2 TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT 1-2 FINANCIAL STATEMENTS Combined Statements of Financial Position 3 Combined Statements of Activities 4 Combined Statements of Changes in Net Assets 5 Combined Statements of Cash Flows 6 Notes to Combined Financial Statements 7-15 SUPPLEMENTAL INFORMATION Combining Statements of Financial Position Combining Statements of Activities Combining Statements of Changes in Net Assets 20

3 INDEPENDENT AUDITORS' REPORT Board of Directors Pennsylvania Institute of Certified Public Accountants Philadelphia, Pennsylvania Report on the Financial Statements We have audited the accompanying combined financial statements of the Pennsylvania Institute of Certified Public Accountants (PICPA), which comprise the combined statements of financial position as of April 30, 2016 and 2015, and the related combined statements of activities, changes in net assets, and cash flows for the years then ended, and the related notes to the combined financial statements. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these combined financial statements in accordance with accounting principles generally accepted in the United States; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of combined financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the combined financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the combined financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the combined financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the combined financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the combined financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of the Pennsylvania Institute of Certified Public Accountants, as of April 30, 2016 and 2015, and the changes in its net assets, and its cash flows for the years then ended, in accordance with accounting principles generally accepted in the United States.

4 Page 2 Other Matter - Combining Information Our audits were conducted for the purpose of forming an opinion on the combined financial statements as a whole. The combining information as of April 30, 2016 and 2015, and for the years then ended is presented for purposes of additional analysis of the combined financial statements, rather than to present the financial position, activities, and changes in net assets of the individual entities, and is not a required part of the combined financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the combined financial statements. The combining information has been subjected to the auditing procedures applied in the audits of the combined financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the combined financial statements or to the combined financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States. In our opinion, the combining information is fairly stated in all material respects in relation to the combined financial statements as a whole. Media, Pennsylvania June 9, 2016

5 Page 3 COMBINED STATEMENTS OF FINANCIAL POSITION ASSETS APRIL 30, Cash and cash equivalents $ 1,420,989 $ 1,073,551 Investments 10,626,926 12,418,186 Accounts receivable 25,156 38,605 Prepaid expenses 300, ,108 Deposits 26,246 26,246 Property and equipment, net 666, ,957 TOTAL ASSETS $ 13,065,645 $ 14,530,653 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses $ 273,193 $ 288,175 Accrued compensation and related liabilities 490, ,450 Deferred revenue 1,606,127 2,133,772 Deferred rent 390, ,301 Total Liabilities 2,760,072 3,239,698 NET ASSETS Unrestricted Undesignated - Institute 6,674,324 7,287,340 Undesignated - Foundation 1,393,319 1,537,882 Total Unrestricted 8,067,643 8,825,222 Temporarily restricted - Scholarship Fund 2,186,419 2,414,222 Permanently restricted - Scholarship Fund 51,511 51,511 Total Net Assets 10,305,573 11,290,955 TOTAL LIABILITIES AND NET ASSETS $ 13,065,645 $ 14,530,653 The accompanying Notes are an integral part of these statements.

6 Page 4 COMBINED STATEMENTS OF ACTIVITIES FOR THE YEARS ENDED APRIL 30, UNRESTRICTED NET ASSETS Operating Support and Revenues Membership dues $ 4,650,182 $ 4,595,075 CPE programs 5,593,346 4,758,906 Chapter program income 417, ,877 Peer review income 407, ,975 Spending policy income 429, ,900 Partner royalties 129,829 82,198 Advertising 119, ,652 Investment return from short-term investments, net 10,806 20,388 11,757,423 10,768,971 Net assets released from restrictions 165, ,500 Total Operating Support and Revenues 11,922,423 10,966,471 Operating Expenses Personnel 5,277,649 5,143,565 CPE materials, speaker fees and facilities 3,127,607 2,691,829 Chapter program expenses 550, ,300 Committee activities 405, ,738 Occupancy 518, ,694 Office 530, ,293 Professional services 144, ,587 Information systems 335, ,330 Communications, image and recruitment PA CPA Journal and brochures 152, ,965 Careers in accounting 126, ,453 Image enhancement 100,235 99,187 Travel 250, ,213 Scholarships and awards 284, ,500 Total Operating Expenses 11,804,464 11,146,654 Change in Unrestricted Net Assets from Operating Activities 117,959 (180,183) Non-operating Support and Revenues Investment return net of spending policy allocation (875,538) 177,192 Change in Unrestricted Net Assets (757,579) (2,991) TEMPORARILY RESTRICTED NET ASSETS Support and Revenue Contributions - Scholarship Fund 57,259 68,068 Investment return (120,062) 170,731 Net assets released from restrictions (165,000) (197,500) Change in Temporarily Restricted Net Assets (227,803) 41,299 Change in Net Assets, as restated for 2015 $ (985,382) $ 38,308 The accompanying Notes are an integral part of these statements.

7 Page 5 COMBINED STATEMENTS OF CHANGES IN NET ASSETS Temporarily Permanently Unrestricted Restricted Restricted Combined Balance, May 1, 2014 (as restated) $ 8,828,213 $ 2,372,923 $ 51,511 $ 11,252,647 Changes in net assets, year ended April 30, 2015 (as restated) (2,991) 41,299-38,308 Balance, April 30, 2015 (as restated) 8,825,222 2,414,222 51,511 11,290,955 Changes in net assets, year ended April 30, 2016 (757,579) (227,803) - (985,382) Balance, April 30, 2016 $ 8,067,643 $ 2,186,419 $ 51,511 $ 10,305,573 The accompanying Notes are an integral part of these statements.

8 Page 6 COMBINED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED APRIL 30, CASH FLOWS FROM OPERATING ACTIVITIES Changes in net assets $ (985,382) $ 38,308 Adjustments to reconcile changes in net assets to net cash used in operating activities: Depreciation and amortization 212, ,697 Net realized and unrealized loss (gain) on investments 811,251 (505,207) (Increase) decrease in assets Accounts receivable 13,449 4,786 Prepaid expenses (28,146) 77,337 Increase (decrease) in liabilities Accounts payable and accrued expenses (14,982) (74,668) Accrued compensation and related liabilities 103,759 23,938 Deferred revenue (527,645) (6,098) Deferred rent (40,758) (32,670) Net Cash Used in Operating Activities (455,474) (284,577) CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (177,097) (160,885) Purchase of investments (2,662,390) (3,968,020) Proceeds from sale of investments 3,642,399 3,706,433 Net Cash Provided by (Used in) Investing Activities 802,912 (422,472) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 347,438 (707,049) CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 1,073,551 1,780,600 CASH AND CASH EQUIVALENTS, END OF YEAR $ 1,420,989 $ 1,073,551 The accompanying Notes are an integral part of these statements.

9 Page 7 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE A - Summary of Significant Accounting Policies 1. Organization The Pennsylvania Institute of Certified Public Accountants (PICPA) is an active professional association working to further the well being of its members, while upholding the public interest by enhancing quality services founded on professional competence, integrity and objectivity; serving as an advocate for, and promoting the public image of its members; articulating positions on professional and public issues where the expertise of CPAs is relevant; and providing a broad spectrum of high-quality educational programs for members. 2. Principles of Combination The accompanying combined financial statements include the accounts of the Pennsylvania Institute of Certified Public Accountants (Institute), the PICPA Foundation for Education & Research (Foundation), and the Scholarship Fund of the Pennsylvania Institute of Certified Public Accountants (Scholarship Fund), collectively referred to as the PICPA. The individual entities have interrelated directors and trustees and share common facilities and personnel. Inter-entity transactions and balances have been eliminated in combination. 3. Basis of Presentation The statement of activities distinguishes changes in unrestricted net assets between operating and non-operating activities. Unrestricted operating activity includes revenues and other support, including investment income generated from short-term investments, as well as longterm investment income designated for unrestricted operations, and all expenses to provide program services, and support the administrative functions of the PICPA. Unrestricted nonoperating activity includes investment return in excess of (or less than) the PICPA's designated spending policy (see Note B). 4. Use of Estimates The preparation of the combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the combined financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. 5. Fair Value of Financial Instruments Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on assumptions that market participants would use, including a consideration of nonperformance risk. Management assesses the inputs used to measure fair value using a three-tier hierarchy based on the extent to which inputs used in measuring fair value are observable in the market. Level 1 inputs are quoted market prices for identical instruments in an active market that the entity has the ability to access and are the most observable. Level 2 inputs include quoted market prices for similar assets and observable inputs such as interest rates, currency exchange rates, commodity rates, and yield curves. Level 3 inputs are not observable in the market and include management's judgments about the assumptions market participants would use in pricing the asset or liability.

10 Page 8 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE A - Summary of Significant Accounting Policies - continued 6. Cash and Cash Equivalents Management considers money market funds to be short-term highly liquid investments that are readily convertible to known amounts of cash and debt instruments, purchased with an original maturity of three months or less, to be cash equivalents. 7. Concentration of Credit Risk The PICPA maintains cash accounts which, at times, may exceed federally insured limits. The PICPA s uninsured balance was approximately $800,000 on April 30, However, the PICPA has not experienced any losses from maintaining cash accounts in excess of these limits. Management believes that it is not exposed to any significant credit risk on its cash accounts. 8. Investments Investments are recorded at fair value based on quoted market prices in active markets. Realized gains and losses are recognized based on the average cost method. 9. Accounts Receivable Accounts receivable are stated at unpaid balances, less an allowance for doubtful accounts. The PICPA provides for losses on accounts receivable using the allowance method. The allowance is based on experience and other circumstances, which may affect the ability of customers to meet their obligations. It is the PICPA's policy to charge off uncollectible accounts receivable when management determines the receivable will not be collected. There was no allowance for doubtful accounts as of April 30, 2016 and Prepaid Expenses Continuing Professional Education (CPE) program costs are expensed in the period in which the related programs are conducted. Accordingly, payments for future programs are included in prepaid expenses. 11. Property and Equipment Property and equipment are carried at cost and depreciated or amortized using the straightline method over the following estimated useful lives: Computer hardware and software Furniture and equipment Leasehold improvements 12. Revenue Recognition 3-10 years 5-7 years Shorter of the remaining term of the lease or useful life of the asset Membership dues are recognized in equal monthly amounts over the membership period, which corresponds with the fiscal year. CPE program fee revenue is recognized when the program occurs. Membership dues, CPE program fees, and annual meeting fees received in advance of the fiscal year to which they relate are deferred.

11 Page 9 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE A - Summary of Significant Accounting Policies - continued 13. Contributions Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support depending on the existence and/or nature of any donor restrictions. Contributions are recognized as revenue in the period when the contributions (including promises to give) are received. Donor-restricted contributions are reported as increases in temporarily or permanently restricted net assets depending upon the nature of the restrictions. When the terms of a restriction are met, temporarily restricted net assets are reclassified to unrestricted net assets. 14. Advertising The PICPA uses advertising to promote its programs among the audiences it serves. Advertising costs are expensed as incurred. Advertising expense for the years ended April 30, 2016 and 2015 was approximately $150,000 and $152,000, respectively. 15. Donated Services A portion of the Institute's functions, including member services and committee and operational activities, is conducted by unpaid officers and volunteers. The value of this contributed time is not reflected in the accompanying financial statements since the volunteers' time does not meet the criteria necessary for recognition. 16. Income Taxes The Foundation and Scholarship Fund are exempt from federal income taxes under Section 501(c)(3) and the Institute is exempt from federal income taxes under Section 501(c)(6) of the Internal Revenue Service Code. The organizations are subject to tax on net income not related to the exempt purposes of the organizations. Since the revenues generated from unrelated business income did not exceed the related expenses, no provision for income taxes has been accrued. The tax filings for fiscal 2013, 2014, and 2015 are subject to examination, generally for three years after they were filed. 17. Reclassifications Certain reclassifications have been made to the 2015 financial statement presentation to correspond to the current year s format, including reclassification of certain revenue and expense accounts. Net assets and changes in net assets are unchanged due to these reclassifications. 18. Restatement The PICPA restated the 2015 financial statements to include all revenues and expenses of the Regional Chapters on a gross basis, which were previously reported as a net liability. This resulted in a decrease in liabilities of $636,852, an increase in beginning net assets of $692,930, an increase in revenue of $519,478, an increase in expenses of $575,556, and a decrease in the change in net assets of $56,078 in the 2015 financial statements.

12 Page 10 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE B - Investments APRIL 30, (Level 1 inputs) Investments in mutual funds: Vanguard Total Stock Market Index Fund $ 1,941,568 $ 2,032,863 Vanguard Growth Index Fund 990,766 1,038,325 Vanguard Small-Cap Growth Index Fund 429, ,122 Vanguard Small-Cap Value Index Fund 458, ,172 Vanguard Total International Stock Index Fund 1,516,305 1,775,295 Vanguard International Value Fund 865,515 1,036,107 Vanguard Emerging Markets Stock Index Fund 538, ,243 Vanguard International Growth Fund 940,927 1,084,199 Vanguard Short-Term Bond Index Fund 949,579 1,046,773 Vanguard GNMA Fund 727, ,057 Vanguard Total Bond Market Index Fund 728, ,244 Vanguard Intermediate Term Bond Index Fund 260, ,330 Vanguard Interm-Term Investment-Grade Adm Fund - 7,078 Vanguard Short-Term Investment-Grade Adm Fund 280, ,187 Vanguard Short-Term Treasury Adm Fund - 152,191 Total Investments $ 10,626,926 $ 12,418,186 The fair value of the mutual funds are based on quoted market prices in active markets for identical investments (Level 1 inputs).

13 Page 11 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE B - Investments - continued The following schedule summarizes the investment return and its classification in the statements of activities for the years ended April 30, 2016 and 2015: Unrestricted Temporarily Temporarily Restricted Total Unrestricted Restricted Total Interest and dividends $ 169,657 $ 48,474 $ 218,131 $ 172,057 $ 53,869 $ 225,926 Net realized and unrealized gain (loss) on investments (615,895) (168,536) (784,431) 405, , ,897 Total return on investment portfolio (446,238) (120,062) (566,300) 577, , ,823 Spending Policy Allocation (429,300) - (429,300) (399,900) - (399,900) Investment return in excess of (less than) the spending policy allocation $ (875,538) $ (120,062) $ (995,600) $ 177,192 $ 170,731 $ 347,923 A portion of the returns from PICPA s investment portfolio has been allocated as operating revenue per PICPA s spending policy. According to the spending policy, 5.5% of the average balance in the long-term reserve fund of the preceding five years will be allocated as operating revenue. PICPA s spending policy is reviewed and approved on an annual basis. All other investment returns and losses from the investment portfolio are considered non-operating. Investment return from short-term investments in the statement of activities includes net realized and unrealized loss on investments of $26,820 and $16,690 for the years ended April 30, 2016 and 2015, respectively.

14 Page 12 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE C - Property and Equipment APRIL 30, Furniture and computer hardware and software $ 1,778,909 $ 3,173,349 Leasehold improvements 12,500 23,030 1,791,409 3,196,379 Less accumulated depreciation and amortization 1,125,335 2,494,422 NOTE D - Restricted Net Assets 1. Permanently Restricted Net Assets $ 666,074 $ 701,957 Permanently restricted net assets are restricted by the donors in perpetuity. These net assets are held by the Scholarship Fund and the related income is restricted by the donors to the funding of student scholarships. 2. Temporarily Restricted Net Assets Temporarily restricted net assets are available to fund student scholarships and awards. In most cases, the donors have not limited the amounts that can be used for scholarships in a given year. NOTE E - Commitments The Institute has lease agreements for office space in Philadelphia, Pittsburgh, and Harrisburg. Additionally, the PICPA leases various equipment under operating leases. Rent expense for the years ended April 30, 2016 and 2015 was approximately $485,000 and $471,000, respectively. Minimum annual lease payments due under noncancelable operating leases with initial terms in excess of one year are: Year Ending April 30, 2017 $ 487, , , , ,400 Thereafter 350,000 Total $ 2,668,900 These minimum lease commitments do not include future escalations for real estate taxes and building operating expenses. NOTE F - Line of Credit The PICPA has a $500,000 unsecured line of credit with a regional bank to support general working capital requirements. There were no amounts outstanding at April 30, 2016 and 2015.

15 Page 13 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE G - Deferred Rent The Institute's Philadelphia office lease contains predetermined fixed escalations of the minimum rentals during the original term of the lease. Additionally, under this lease agreement, the Institute was not required to make any payments for sixteen months of the lease beginning with the first full month of the lease which was February The Institute recognizes the related net rental expense on a straight-line basis over the life of the lease and records the difference between the amounts charged to operations and amounts paid as deferred rent. NOTE H - Retirement Plans The PICPA has a 401(k) defined contribution retirement plan covering substantially all employees. During fiscal years 2016 and 2015, the PICPA contributed 2% of a participant's salary and matched contributions made by each participant up to 6% of a participant's salary. All contributions are subject to limits prescribed by the Internal Revenue Code and all contributions are fully funded on a current basis. For the years ended April 30, 2016 and 2015, the PICPA contributed $280,166 and $258,496, respectively, to the plan. Effective May 1, 2015, the PICPA entered into a deferred compensation plan for the benefit of a key employee. The plan will accrue annual credits, as determined by the PICPA's Compensation Committee, to a deferred compensation account which will remain unfunded until January 1, 2022, the date the benefits are payable. The credits will earn interest at the greater of 3% or 150% of the federal AFR mid-term rate compounding annually on April 30 of each calendar year. The deferred compensation account becomes fully vested on December 31, The PICPA recognized $59,243 in deferred compensation expense and $2,100 in interest expense related to the plan for the service period ended April 30, The liability for this benefit was $61,343 at April 30, NOTE I - Functional Classification of Expenses The costs of providing the various programs and other activities have been summarized on a functional basis. Accordingly, the expenses directly related to the program are combined with allocations of certain common costs of the PICPA which have been allocated based on estimates made by management. FOR THE YEARS ENDED APRIL 30, Program services: Membership $ 2,266,691 $ 2,184,367 Educational programs 5,217,106 4,718,865 Peer review and audit quality 522, ,761 Pipeline and scholarship 731, ,866 Advocacy and image enhancement 1,126,295 1,103,547 9,864,217 9,264,406 Supporting services: General and administrative 1,268,624 1,230,701 Fundraising 74,624 72,394 Membership development 596, ,153 1,940,247 1,882,248 $ 11,804,464 $ 11,146,654

16 Page 14 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE J - Related Parties The Foundation has directly supported the activities of the Scholarship Fund with financial contributions. The Foundation donated $100,000 to the Scholarship Fund in each of the years ended April 30, 2016 and These inter-entity transactions were eliminated in the combined statements of activities. The PICPA is related to organizations that are not included in the accompanying combined financial statements. These organizations are the Certified Public Accountants Political Action Committee (CPA-PAC) and the Insurance Trust of the PICPA (Insurance Trust). The resources of the CPA-PAC and Insurance Trust are restricted to accomplish their stated purposes and are therefore, not available for the direct benefit of the Institute, the Foundation, or the Scholarship Fund. The CPA-PAC and the Insurance Trust have calendar year-ends. 1. CPA-PAC The CPA-PAC is a political action committee. Staffing for the CPA-PAC is provided primarily by employees of the PICPA. The value of these contributed services for the years ended December 31, 2015 and 2014 was approximately $73,000 and $72,000, respectively and are included in revenue and support and expenses in the financial information below. Condensed financial information for the CPA-PAC is presented below: DECEMBER 31, UNRESTRICTED NET ASSETS COMPRISED OF CASH AND CASH EQUIVALENTS $ 109,651 $ 77,075 FOR THE YEARS ENDED DECEMBER 31, REVENUE AND SUPPORT $ 270,244 $ 277,318 EXPENSES 237, ,732 Changes in Unrestricted Net Assets $ 32,576 $ 7, Insurance Trust The Insurance Trust was established to provide insurance plans for the benefit of Institute members, their employees, and the employees of the PICPA. In previous years, the PICPA provided administrative services to the Trust. There was no activity in the Trust for the years ended December 31, 2015 and 2014.

17 Page 15 NOTES TO COMBINED FINANCIAL STATEMENTS NOTE K - Subsequent Events In preparing these financial statements, the PICPA has evaluated events and transactions for potential recognition or disclosure through June 9, 2016, the date the financial statements were available to be issued.

18 SUPPLEMENTAL INFORMATION

19 Page 16 COMBINING STATEMENT OF FINANCIAL POSITION APRIL 30, 2016 Institute Foundation Scholarship Fund Combined ASSETS Cash and cash equivalents $ 777,635 $ 638,021 $ 5,333 $ 1,420,989 Investments 8,319,329-2,307,597 10,626,926 Accounts receivable 19,156-6,000 25,156 Prepaid expenses 220,620 79, ,254 Deposits 26, ,246 Property and equipment, net 666, ,074 TOTAL ASSETS $ 10,029,060 $ 717,655 $ 2,318,930 $ 13,065,645 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses $ 82,724 $ 109,469 $ 81,000 $ 273,193 Accrued compensation and related liabilities 404,932 85, ,209 Deferred revenue 753, ,552-1,606,127 Due to (from) affiliate 1,722,962 (1,722,962) - - Deferred rent 390, ,543 Total Liabilities 3,354,736 (675,664) 81,000 2,760,072 NET ASSETS Unrestricted Undesignated - Institute 6,674, ,674,324 Undesignated - Foundation - 1,393,319-1,393,319 Total Unrestricted 6,674,324 1,393,319-8,067,643 Temporarily restricted - Scholarship Fund - - 2,186,419 2,186,419 Permanently restricted - Scholarship Fund ,511 51,511 Total Net Assets 6,674,324 1,393,319 2,237,930 10,305,573 TOTAL LIABILITIES AND NET ASSETS $ 10,029,060 $ 717,655 $ 2,318,930 $ 13,065,645

20 Page 17 COMBINING STATEMENT OF FINANCIAL POSITION APRIL 30, 2015 Institute Foundation Scholarship Fund Combined ASSETS Cash and cash equivalents $ 701,896 $ 366,331 $ 5,324 $ 1,073,551 Investments 9,834,777-2,583,409 12,418,186 Accounts receivable 24,605-14,000 38,605 Prepaid expenses 198,417 73, ,108 Deposits 26, ,246 Property and equipment, net 701, ,957 TOTAL ASSETS $ 11,487,898 $ 440,022 $ 2,602,733 $ 14,530,653 LIABILITIES AND NET ASSETS LIABILITIES Accounts payable and accrued expenses $ 72,553 $ 78,622 $ 137,000 $ 288,175 Accrued compensation and related liabilities 300,206 86, ,450 Deferred revenue 1,214, ,472-2,133,772 Due to (from) affiliate 2,182,198 (2,182,198) - - Deferred rent 431, ,301 Total Liabilities 4,200,558 (1,097,860) 137,000 3,239,698 NET ASSETS Unrestricted Undesignated - Institute 7,287, ,287,340 Undesignated - Foundation - 1,537,882-1,537,882 Total Unrestricted 7,287,340 1,537,882-8,825,222 Temporarily restricted - Scholarship Fund - - 2,414,222 2,414,222 Permanently restricted - Scholarship Fund ,511 51,511 Total Net Assets 7,287,340 1,537,882 2,465,733 11,290,955 TOTAL LIABILITIES AND NET ASSETS $ 11,487,898 $ 440,022 $ 2,602,733 $ 14,530,653

21 Page 18 COMBINING STATEMENT OF ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2016 Institute Foundation Scholarship Fund Eliminations Combined UNRESTRICTED NET ASSETS Operating Support and Revenues Membership dues $ 4,650,182 $ - $ - $ - $ 4,650,182 CPE programs - 5,649,406 - (56,060) 5,593,346 Chapter program income 417, ,353 Peer review income 407, ,500 Spending policy income 429, ,300 Partner royalties 129, ,829 Advertising 119, ,107 Investment return from short-term investments, net 8,206 2, ,806 Other ,410 (15,410) - 6,161,477 5,652,006 15,410 (71,470) 11,757,423 Net assets released from restrictions ,000 (100,000) 165,000 Total Operating Support and Revenues 6,161,477 5,652, ,410 (171,470) 11,922,423 Operating Expenses Personnel 3,310,630 1,967,019 15,410 (15,410) 5,277,649 CPE materials, speaker fees and facilities - 3,127, ,127,607 Chapter program expenses 606, (56,060) 550,317 Committee activities 396,314 9, ,430 Occupancy 406, , ,793 Office 257, , ,348 Professional services 96,242 47,035 1, ,277 Information systems 201, , ,633 Communications, image and recruitment PA CPA Journal and brochures 152, ,982 Careers in accounting 126, ,828 Image enhancement 100, ,235 Travel 223,675 26, ,365 Scholarships and awards 20, , ,000 (100,000) 284,000 Total Operating Expenses 5,898,955 5,796, ,410 (171,470) 11,804,464 Change in Unrestricted Net Assets from Operating Activities 262,522 (144,563) ,959 Non-operating Support and Revenues Investment return net of spending policy allocation (875,538) (875,538) Change in Unrestricted Net Assets (613,016) (144,563) - - (757,579) TEMPORARILY RESTRICTED NET ASSETS Support and Revenue Contributions - Scholarship Fund ,259 (100,000) 57,259 Investment return - - (120,062) - (120,062) Net assets released from restrictions - - (265,000) 100,000 (165,000) Change in Temporarily Restricted Net Assets - - (227,803) - (227,803) Change in Net Assets $ (613,016) $ (144,563) $ (227,803) $ - $ (985,382)

22 Page 19 COMBINING STATEMENT OF ACTIVITIES FOR THE YEAR ENDED APRIL 30, 2015 Institute Foundation Scholarship Fund Eliminations Combined UNRESTRICTED NET ASSETS Operating Support and Revenues Membership dues $ 4,595,075 $ - $ - $ - $ 4,595,075 CPE programs - 4,815,162 - (56,256) 4,758,906 Chapter program income 382, ,877 Peer review income 418, ,975 Spending policy income 399, ,900 Partner royalties 82, ,198 Advertising 110, ,652 Investment return from short-term investments, net 16,134 4, ,388 Other ,805 (15,805) - 6,005,811 4,819,416 15,805 (72,061) 10,768,971 Net assets released from restrictions ,500 (100,000) 197,500 Total Operating Support and Revenues 6,005,811 4,819, ,305 (172,061) 10,966,471 Operating Expenses Personnel 3,162,400 1,981,165 15,805 (15,805) 5,143,565 CPE materials, speaker fees and facilities - 2,691, ,691,829 Chapter program expenses 575, (56,256) 519,300 Committee activities 352,008 7, ,738 Occupancy 393, , ,694 Office 254, , ,293 Professional services 67,863 41,724 1, ,587 Information systems 226, , ,330 Communications, image and recruitment PA CPA Journal and brochures 141, ,965 Careers in accounting 138, ,453 Image enhancement 99, ,187 Travel 221,339 24, ,213 Scholarships and awards 20, , ,500 (100,000) 316,500 Total Operating Expenses 5,654,193 5,351, ,305 (172,061) 11,146,654 Change in Unrestricted Net Assets from Operating Activities 351,618 (531,801) - - (180,183) Non-operating Support and Revenues Investment return net of spending policy allocation 177, ,192 Change in Unrestricted Net Assets 528,810 (531,801) - - (2,991) TEMPORARILY RESTRICTED NET ASSETS Support and Revenue Contributions - Scholarship Fund ,068 (100,000) 68,068 Investment return , ,731 Net assets released from restrictions - - (297,500) 100,000 (197,500) Change in Temporarily Restricted Net Assets ,299-41,299 Change in Net Assets (as restated) $ 528,810 $ (531,801) $ 41,299 $ - $ 38,308

23 Page 20 COMBINING STATEMENTS OF CHANGES IN NET ASSETS Scholarship Fund Institute Foundation Temporarily Permanently Unrestricted Unrestricted Restricted Restricted Combined Balance, May 1, 2014 (as restated) $ 6,758,530 $ 2,069,683 $ 2,372,923 $ 51,511 $ 11,252,647 Changes in net assets, year ended April 30, 2015 (as restated) 528,810 (531,801) 41,299-38,308 Balance, April 30, 2015 (as restated) 7,287,340 1,537,882 2,414,222 51,511 11,290,955 Changes in net assets, year ended April 30, 2016 (613,016) (144,563) (227,803) - (985,382) Balance, April 30, 2016 $ 6,674,324 $ 1,393,319 $ 2,186,419 $ 51,511 $ 10,305,573