Treasurer’s Report

To NSPE Board of Directors

September 29, 2007

Item 7.1 Attachment – pt2

3 Topics of Discussion

Final operating results for our fiscal year ended June 30, 2007

Early results for our current fiscal year

Budgetary challenges in the new fiscal year

FY 06-07 Final Results

In line with preliminary estimates provided at our July meeting

Consolidated Surplus of $56,419– NICET achieved a substantial surplus of

$313,575– NSPE General Fund incurred a deficit of

$270,289

NSPE Operating ResultsFY 2006/07

Budget Actual Variance

Revenue 7,179.3 6,906.4 (272.9)

Expense 7,235.8 7,176.7 59.1

Net (56.5) (270.3) (213.8) 13

FY 06-07 Results(Continued)

The NSPE operating deficit was the product of a shortfall in revenue

Dues revenue was $266,700 below budget

Dues revenue shortfall in our last fiscal year will have an impact on our current year, as we shall discuss later.

Current Year Operations

Very early in year to identify trends So, far expenses are in check and below

budget pace Revenue is also below budget pace Next slide shows operating results through

August 31st (16.7% of year completed)

NSPE Operating ResultsThrough August 31, 2007

Budget Actual Percent

Revenue 7,265.8 1,106.1 15.2%

Direct Exp 3,214.8 452,.4 14.1%

Staff & OH 4,015.9 643.9 16.0%

Surplus 35.1 9.8 13

Interim Operating Results

Clearly, our challenge in the current year is to attain—or exceed—our revenue goals.– Non-dues Revenue: some early positive trends– Dues Revenue: needs to be watched carefully

Non-Dues Revenue ProgramsThrough August 31, 2007

Budget Actual %

Affinity Card $625,000 $104,200 16.7%

HQ Rentals 592,100 88,600 15.0%

EJCDC 403,800 53,700 13.3%

Job Board 175,000 48,500 27.7%

Investments 130,000 30,000 23.1% 13

Non-Dues Revenue Programs(Continued)

Affinity card on budget pace Tenant rentals slightly below pace. One suite

vacant on 5th floor. Expect new lease soon. EJCDC sales will improve with release of

newly revised documents this year. Job Board & Investments well above budget

pace

Dues Revenue

Budget Target is $3,882,000 Revenue through August is $589,000 Revenue currently 1.5% below budget pace. Budget target is clearly a challenging one:

– Target based on results thru 3rd quarter last year– Fourth quarter results fell short of expectations– Resulted in smaller than expected carry forward

of deferred dues into our current year

Dues Revenue(continued)

The challenge we have faced in meeting our dues revenue budgets in recent years is directly related to the decline in our membership.

The following 2 slides present some historical data on our membership totals.

5-Year Membership Trend(excluding student members)

39,00040,00041,00042,00043,00044,00045,00046,00047,00048,00049,000

'03 '04 '05 '06 '07

Members

Change by Year

2004 -4.3% 2005 -3.0% 2006 -2.2% 2007 -4.0%

4 Month Membership Trend(Increase of 1,373 Members—3.3%)

40,500

41,000

41,500

42,000

42,500

43,000

43,500

May June July August

Members (excl students)

Conclusion

Very early in our fiscal year to identify trends or make meaningful projections

Our major challenge is to grow our revenue streams:– Membership dues– Non-dues programs

We need to be cautious and control spending until we have a clearer view of the direction of membership.