· Consolidated Statements of Financial Position show an increase of $1.7M in cash and investments. Our net assets increased by $1.9M, which was the net revenue for 2004.  This change means our net assets (reserves) are now $4.8M.

· Consolidated Statements of Activities

· Conference revenue has increased by $761K because there were 500 additional attendees in 2004.

· Membership and chapter services revenue is up by $122K because there are an additional 330 individual members, and dues were increased by $15 per person.

· Advertising revenue is $99K higher because the general advertising marketplace improved during 2004.

· Other revenue is $193K more because of a tax refund, voided checks, and a forgiven liability that were recorded in 2004.

· Magazine and publishing has decreased $89K because of a timing difference in recognizing subscription revenue.  This line should even out in 2005.

· Investment income is $582K less because the unrealized gain on investments decreased. 

· Professional development expense is $62K higher because meals and meeting room costs increased.  Offsetting revenue increased by $42K.

· Consolidated Statements of Cash Flows – the variances from 2003 to 2004 on this schedule have been discussed above.  I would like to draw your attention to the middle of the page that shows net cash from operating activities is $707K higher in 2004 than in 2003.

Our net assets or reserves are $4.8M at December 31, 2004, or 42% of annual revenues, surpassing the Board’s stated goal of attaining at least 25% as a minimum reserve.   The task was not easy and the efforts of all are greatly appreciated.   Thanks for your continuing support of our financial objectives.

Respectfully submitted,

Michael Liebowitz, VP-Treasurer