Memorandum

To: CERF Board Members

From: Mike McCracken, Treasurer, CERF

RE: 2006-07 Financial Statements (as of March 31)

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1. Attached are the audited financial statements as of 31 March 2007, including:

· Balance Sheet—Note that net assets, are higher by about $13,000 compared to last year. Liabilities are higher, representing deferred revenue received in the last fiscal year for this conference.

· Income Statement—reflects the 2006-07 activities, including the 2006 CEA conference at Montreal in May.

· Cash Flow—No additional general funding was received in the period.

2. If this Board accepts these statements, they will be put up on the web site.

3. In 2006-07, expenses associated with the Board meeting, the CEA and WES conferences, and administrative costs were $22,994. This was lower than last year since we had only one event.

4. CEA contributes to CERF to reflect the additional registrants attracted by the co-location of the CERF meetings and the CEA meetings. We received $4,000 from CEA for each of the 2005, 2006, and 2007 conferences. We can likely expect this amount to be received in coming years, if we continue meetings with them.

5. The steps taken in recent years to ensure that additional general funding or administrative costs be tacked on to conference budgets in which CERF is engaged has resulted in a much more favorable balance sheet. This reflects the uncompensated contributions from those who organize and participate in the Conferences.

6. There remains a risk of significant Conference expenses that could occur in excess of revenue for any number of reasons. However, we are in a position to use up some of the cash balances on hand for meeting some unanticipated shortfalls.

7. The financial situation of CERF is stable. There is room to undertake activities beyond the CEA co-meetings if the Board desires.