AMERICAN ACADEMY OF NEUROLOGY AND AMERICAN ......2018/12/31 · Neurology and American Academy of Neurology Institute, which comprise the consolidated statements of financial position

AMERICAN ACADEMY OF NEUROLOGY AND

AMERICAN ACADEMY OF NEUROLOGY INSTITUTE

CONSOLIDATED FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION

YEARS ENDED DECEMBER 31, 2018 AND 2017

AMERICAN ACADEMY OF NEUROLOGY AND AMERICAN ACADEMY OF NEUROLOGY INSTITUTE

TABLE OF CONTENTS YEARS ENDED DECEMBER 31, 2018 AND 2017

INDEPENDENT AUDITORS’ REPORT 1

CONSOLIDATED FINANCIAL STATEMENTS

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 3

CONSOLIDATED STATEMENTS OF ACTIVITIES 4

CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES 5

CONSOLIDATED STATEMENTS OF CASH FLOWS 6

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 7

SUPPLEMENTARY INFORMATION

CONSOLIDATING STATEMENT OF FINANCIAL POSITION – 2018 23

CONSOLIDATING STATEMENT OF FINANCIAL POSITION – 2017 24

CONSOLIDATING STATEMENT OF ACTIVITIES – 2018 25

CONSOLIDATING STATEMENT OF ACTIVITIES – 2017 26

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INDEPENDENT AUDITORS’ REPORT

Board of Directors American Academy of Neurology and American Academy of Neurology Institute Minneapolis, Minnesota Report on the Consolidated Financial Statements

We have audited the accompanying consolidated financial statements of American Academy of Neurology and American Academy of Neurology Institute, which comprise the consolidated statements of financial position as of December 31, 2018 and 2017, and the related consolidated statements of activities and cash flows for the years then ended, the consolidated statement of functional expenses for the year ended December 31, 2018, and the related notes to the consolidated financial statements.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditors’ judgment, including the assessment of the risks of material misstatement of the consolidated 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 consolidated 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 consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Board of Directors American Academy of Neurology and American Academy of Neurology Institute

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Opinion

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated statement of financial position of American Academy of Neurology and American Academy of Neurology Institute as of December 31, 2018 and 2017, and the changes in their net assets and their cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America. Report on Supplementary Information

Our audits were conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating statements of financial position and consolidating statements of activities are presented for purposes of additional analysis and are not a required part of the consolidated 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 consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated in all material respects in relation to the consolidated financial statements as a whole.

CliftonLarsonAllen LLP

Minneapolis, Minnesota May 6, 2019


CONSOLIDATED STATEMENTS OF FINANCIAL POSITION DECEMBER 31, 2018 AND 2017

See accompanying Notes to Consolidated Financial Statements.

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2018 2017

ASSETS

CURRENT ASSETSCash and Cash Equivalents 24,553,287$ 24,121,247$ Grants and Gifts Receivable, Net 1,723,903 1,825,797 Accounts Receivable, Net 685,763 662,324 Prepaid Expenses 1,010,178 867,618 Other Assets - 50,503

Total Current Assets 27,973,131 27,527,489

PROPERTY AND EQUIPMENT, NET 16,935,759 16,901,444

OTHER LONG-TERM ASSETSInvestments 67,555,613 73,331,488 Investments Held in Trust 242,455 159,473 Grants and Gifts Receivable, Net of Current Portion 249,199 389,264

Total Other Long-Term Assets 68,047,267 73,880,225

Total Assets 112,956,157$ 118,309,158$

LIABILITIES AND NET ASSETS

CURRENT LIABILITIESAccounts Payable 2,279,535$ 2,260,432$ Notes Payable 772,447 771,959 Grants Payable 2,307,500 1,940,000 Deferred Revenue 18,556,224 18,527,029 Accrued Expenses 3,192,506 3,055,670

Total Current Liabilities 27,108,212 26,555,090

LONG-TERM LIABILITIESNotes Payable, Net of Current Portion 9,280,623 10,040,926 Funds Held for Others 7,026,907 7,642,857 Deferred Compensation 426,704 159,473 Deferred Revenue, Net of Current Portion 1,032,525 2,023,649 Grants Payable, Net of Current Portion 1,017,461 955,624

Total Long-Term Liabilities 18,784,220 20,822,529

Total Liabilities 45,892,432 47,377,619

NET ASSETSWithout Donor Restrictions:

Undesignated 57,719,371 61,909,801 Invested in Property and Equipment 6,882,689 6,248,032

Total Without Donor Restrictions 64,602,060 68,157,833 With Donor Restrictions 2,461,665 2,773,706

Total Net Assets 67,063,725 70,931,539

Total Liabilities and Net Assets 112,956,157$ 118,309,158$


CONSOLIDATED STATEMENTS OF ACTIVITIES YEARS ENDED DECEMBER 31, 2018 AND 2017


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Without Donor With Donor Without Donor With DonorRestrictions Restrictions Total Restrictions Restrictions Total

SUPPORT AND REVENUERoyalties 13,609,201$ -$ 13,609,201$ 12,799,192$ -$ 12,799,192$ Membership 9,845,152 - 9,845,152 9,522,355 - 9,522,355 Conference and Educational Fees 15,006,971 - 15,006,971 14,114,894 - 14,114,894 Grants and Gifts 3,779,368 4,117,242 7,896,610 3,333,330 4,849,462 8,182,792 Product Sales 375,009 - 375,009 646,744 - 646,744 Publishing Fees 7,076,957 - 7,076,957 6,993,128 - 6,993,128 Management and Service Fees 555,770 - 555,770 477,667 - 477,667 Other 130,104 - 130,104 118,919 - 118,919 Investment Income (Loss) (589,829) (20,351) (610,180) 1,305,567 33,506 1,339,073 Net Assets Released From Restrictions 4,408,932 (4,408,932) - 5,247,118 (5,247,118) -

Total Support and Revenue 54,197,635 (312,041) 53,885,594 54,558,914 (364,150) 54,194,764

EXPENSESProgram 44,424,510 - 44,424,510 43,730,183 - 43,730,183 Development 190,410 - 190,410 203,115 - 203,115 General and Administrative 8,738,236 - 8,738,236 7,270,697 - 7,270,697

Total Expenses 53,353,156 - 53,353,156 51,203,995 - 51,203,995

CHANGE IN NET ASSETS BEFORE NONOPERATING INVESTMENT INCOME 844,479 (312,041) 532,438 3,354,919 (364,150) 2,990,769

Nonoperating Investment Income (Loss) (4,400,252) - (4,400,252) 7,174,563 - 7,174,563

CHANGE IN NET ASSETS (3,555,773) (312,041) (3,867,814) 10,529,482 (364,150) 10,165,332

Net Assets - Beginning of Year 68,157,833 2,773,706 70,931,539 57,628,351 3,137,856 60,766,207

NET ASSETS - END OF YEAR 64,602,060$ 2,461,665$ 67,063,725$ 68,157,833$ 2,773,706$ 70,931,539$

20172018


CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES YEAR ENDED DECEMBER 31, 2018


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Clinical General and Total

Research Practice Membership Education Products Publications Advocacy Total Program Development Administrative Expenses

Salaries & Benefits -$ 1,926,720$ 1,948,530$ 5,378,549$ 6,088$ 2,545,880$ 2,721,754$ 14,527,521$ 111,902$ 5,099,981$ 19,739,404$ General Office - 30,443 316,497 682,869 59,434 38,049 65,774 1,193,066 1,455 339,275 1,533,796 Technology - 75,610 89,901 258,385 223 100,739 148,332 673,190 25,694 267,810 966,694 Occupancy - 83,873 83,034 254,914 283 107,682 254,590 784,376 4,857 323,015 1,112,248 Professional Services - 999,456 473,804 1,980,614 15,781 705,258 722,697 4,897,610 29,469 656,145 5,583,224 Subscriptions - - 4,177,626 - - - - 4,177,626 - - 4,177,626 Marketing - 56,400 181,135 988,744 20 528,729 88,480 1,843,508 3,760 22,927 1,870,195 Meeting & Conferences - 286,448 256,076 8,360,276 12 107,222 834,531 9,844,565 11,304 799,387 10,655,256 Stipends - 200,069 - 385,563 - 1,020,524 50,100 1,656,256 - 298,341 1,954,597 Grants 4,498,740 - - - - - - 4,498,740 - - 4,498,740 Depreciation & Amortization - 34,009 34,405 103,730 119 107,710 48,079 328,052 1,969 616,480 946,501 Interest - - - - - - - - - 314,875 314,875

Total Functional Expenses 4,498,740$ 3,693,028$ 7,561,008$ 18,393,644$ 81,960$ 5,261,793$ 4,934,337$ 44,424,510$ 190,410$ 8,738,236$ 53,353,156$

Program

AMERICAN ACADEMY OF NEUROLOGY AND AMERICAN ACADEMY OF NEUROLOGY INSTITUTE CONSOLDIATED STATEMENTS OF CASH FLOWS

YEARS ENDED DECEMBER 31, 2018 AND 2017


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2018 2017

CASH FLOWS FROM OPERATING ACTIVITIESChange in Net Assets (3,867,814)$ 10,165,332$ Adjustments to Reconcile Changes in Net Assets to Net Cash Provided by Operating Activities:

Depreciation 934,357 880,900 Bond Issuance Cost Amortization 12,144 12,144 Loss on Disposal of Assets 9,988 285,893 Decrease in Allowance on Investment - (2,514) Unrealized (Gain) Loss on Investments 7,463,272 (6,260,544) Realized Gain on Investments - (475,312) Change in Allowance for Doubtful Accounts (10,000) 10,000 (Increase) Decrease in Assets:

Grants and Gifts Receivable 241,959 1,033,885 Accounts Receivable (13,439) 701,827 Prepaid Expenses (142,560) 178,653 Other Assets 50,503 41,553

Increase (Decrease) in Liabilities:Accounts Payable 19,103 1,019,400 Grants Payable 429,337 124,458 Deferred Compensation 267,231 63,057 Deferred Revenue (961,929) 5,847,204 Accrued Expenses 136,836 132,965

Net Cash Provided by Operating Activities 4,568,988 13,758,901

CASH FLOWS FROM INVESTING ACTIVITIESPurchase of Property and Equipment (978,660) (523,910) Purchase of Investment Held in Trust (82,982) (63,057) Purchase of Investments (9,999,746) (5,062,737) Proceeds on Sale of Investments 7,696,399 3,337,760

Net Cash Used by Investing Activities (3,364,989) (2,311,944)

CASH FLOWS FROM FINANCING ACTIVITIESCash Payments on Capital Lease (21,959) (24,834) Cash Payments on Note Payable (750,000) (750,000)

Net Cash Used by Financing Activities (771,959) (774,834)

NET INCREASE IN CASH AND CASH EQUIVALENTS 432,040 10,672,123

Cash and Cash Equivalents - Beginning of Year 24,121,247 13,449,124

CASH AND CASH EQUIVALENTS - END OF YEAR 24,553,287$ 24,121,247$

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATIONCash Paid for Interest 311,558$ 351,678$

Income Taxes Paid During the Year 72,900$ 131,910$

Equipment Acquired through Capital Lease -$ 114,786$


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS DECEMBER 31, 2018 AND 2017

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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

American Academy of Neurology (the Academy) is a nonprofit, international, professional association of more than 36,000 neurologists and neuroscience professionals. The mission is to promote the highest quality patient-centered neurologic care and enhance member career satisfaction. American Academy of Neurology Institute (the Institute) is a nonprofit with the mission to advance the art and science of neurology, and thereby promote the best possible care for patients with neurological disorders. The Institute provides excellence in education through diverse programs in both clinical aspects of neurology and in basic neuroscience areas; supports the development of a practice environment that provides ethical, high quality care for patients with neurological disorders; and supports clinical and basic research. The Academy and Institute operate under an inter-organization agreement (the Agreement) that defines the rights of each, ownership of Academy journals, and allocation of royalties. They also operate under a resource allocation agreement that provides for the sharing of employees and facilities. The Agreement requires the reimbursement of expenses at cost or fair market value. Basis of Consolidation

The consolidated financial statements include the accounts of the Academy and the Institute (collectively, the Organization). All significant intercompany balances and transactions have been eliminated. Financial Statement Presentation

Net assets, support, revenue, expenses, gains, and losses are classified based on donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as follows:

Net Assets Without Donor Restrictions – Net assets that are not subject to donor-imposed restrictions and may be expended for any purpose in supporting the mission of the Organization. Net Assets With Donor Restrictions – Net assets subject to stipulations imposed by donors, and grantors. Some donor restrictions are temporary in nature; those restrictions will be met by actions of the Organization or by the passage of time. Other donor restrictions are perpetual in nature, whereby the donor has stipulated the funds be maintained in perpetuity. Donor-restricted contributions are reported as increases in net assets with donor restrictions. When a restriction expires, net assets are reclassified from net assets with donor restrictions to net assets without donor restrictions in the statements of activities.

Cash and Cash Equivalents

The Organization maintains cash in bank accounts which, at times, may exceed federally insured limits. The Organization has not experienced any losses in such accounts.



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NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Receivables

Accounts, contributions, and royalty receivables are stated at net realizable value. Accordingly, the Organization accounts for uncollectible accounts by the reserve method, which is based on management’s judgment considering historical information. Payment is required 30 days after receipt of the invoice. Individual accounts past due more than 90 days are individually analyzed for collectability. When all collection efforts have been exhausted, the receivable is written off against the reserve. The Organization had an allowance for doubtful accounts of $-0- and $10,000 at December 31, 2018 and 2017, respectively. Property and Equipment

Property and equipment are recorded at original cost. Additions, improvements, or major renewals at or over $5,000 are capitalized. Any gains or losses on property and equipment retirements are reflected in the current year operations. Depreciation is computed using the straight-line method at rates based on estimated service lives as follows: Building 40 Years Office Furniture and Equipment 3 to 20 Years Software 3 to 5 Years Leasehold Improvements Lesser of 10 Years or Life of Lease Investments

Investments in marketable securities are recorded at fair value and consist primarily of equity funds and corporate bond funds. In addition, the Organization’s investments include two limited partnerships that are diversified funds of hedge funds, reported at the estimated fair value of the Organization’s share of the fund, calculated monthly by the custodian. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Cash from the liquidation of securities are classified as investments when the funds are intended to be reinvested in securities. Grants Payable

Grants payable consist of awards and grants approved for various research projects and fellowships. Long-term grants payable are discounted based on the year to be paid. Funds Held for Others

Funds held for others consist of investments held for the American Brain Foundation and Child Neurology Foundation.



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Deferred Compensation

Deferred compensation includes investment assets held in a 457(b) retirement plan and retention plan for the benefit of certain officers of the Organization. The fair value of the assets held are presented as investments held in trust and deferred compensation on the consolidated statements of financial position. Grants and Gifts

Grants and gifts received are recorded as support with donor restrictions or without donor restrictions, depending on the existence and/or nature of any donor restrictions. Gifts are recognized at fair value when the donor makes a promise to give to the Organization that is, in substance, unconditional. Conditional promises to give are recorded when the condition has been satisfied. Fair Value Measurement

The Organization categorizes its investments measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Investments valued at fair value are categorized based on the inputs to the valuation techniques as follows:

Level 1 – Inputs that utilize quoted prices (unadjusted) in active markets for identical assets or liabilities that an entity has the ability to access. Level 2 – Inputs that include quoted prices for similar assets and liabilities in active markets and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument. Fair values for these instruments are estimated using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. Level 3 – Inputs that are unobservable inputs for the asset or liability, which are typically based on an entity’s own assumptions, as there is little, if any, related market activity.

Subsequent to initial recognition, the Organization may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value.



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Revenue Recognition

Revenue related to conference and educational fees, royalties, sale of products and services, and publications is recognized at the time the events take place or the services are performed. Revenue that is received for future periods is recorded as deferred revenue and recognized in the periods to which the service relates. Membership dues are recognized as revenue over the period in which the dues relate. Dues represent services rendered on a calendar year basis. Dues collected in advance are recorded as deferred revenue until they are earned. Allocation of Expenses

The Organization’s costs of providing its various services have been classified on a program basis in the consolidated statements of activities. Accordingly, certain costs have been allocated among the program and support services benefited. Expenses are charged directly to programs and support services where possible. Remaining expenses are allocated based on actual time spent on programs and support services. Income Taxes

The Institute is organized and operates on a nonprofit basis and their tax-exempt status has been recognized by the Internal Revenue Service (IRS) under Section 501(c)(3). They are classified as an organization which is not a private foundation under the Internal Revenue Code (IRC) and charitable contributions by donors are tax deductible. The Institute is subject to unrelated business income taxes under the IRC for federal and state tax purposes. The Academy is organized on a nonprofit basis, and their tax-exempt status has been recognized by the IRS under Section 501(c)(6). The Academy is subject to unrelated business income taxes under the IRC for federal and state tax purposes. The Organization follows the provisions of the Financial Accounting Standards Board (FASB), which requires that a tax position be recognized or derecognized based on a more likely than not threshold. This applies to positions taken or expected to be taken in a tax return. The Organization does not believe its financial statements include any uncertain tax positions. The Organization’s tax returns are subject to review and examination by federal authorities. Other Concentrations

As of December 31, 2018 and 2017, 55% and 46% of grants and gifts receivable, respectively, were from two donors. The Organization also has a potential credit risk in grants and gifts receivable since the balance is due from a limited number of individuals and corporate contributions. As of December 31, 2018 and 2017, 41% and 24%, respectively, of accounts receivable were from one publisher. The Organization’s publications and royalty revenues are primarily from one publisher.



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Use of Estimates

The presentation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. New Accounting Pronouncement

FASB issued Accounting Standards Update (ASU) 2016-14, Not-for-Profit Entities – Presentation of Financial Statements of Not-for-Profit Entities. The update addresses the complexity and understandability of net asset classification, deficiencies in information about liquidity and availability of resources, and the lack of consistency in the type of information provided about expenses and investment return. The Academy has adjusted the presentation of these statements accordingly. The ASU has been applied retrospectively to all periods presented with the exception of the functional expenses, which are presented only for the period ended December 31, 2018. Reclassifications

Certain reclassifications of amounts previously reported have been made to the accompanying financial statements to maintain consistency between periods presented. The reclassifications had no impact on net assets or the change in net assets. Subsequent Events

In preparing these financial statements, the Organization has evaluated events and transactions for potential recognition or disclosure through May 6, 2019, the date the financial statements were available to be issued.

NOTE 2 LIQUIDITY AND AVAILABILITY

The Academy monitors liquidity required to meet its operating needs and other contractual commitments as they become due, while also striving to maximize the investment of its available funds. The Academy has various sources of liquidity at its disposal, including cash and cash equivalents, marketable securities and line of credit. 94% of Academy investments are highly liquid and readily available. See Note 9 for information about the Academy’s line of credit. The Academy annual approves a surplus budget to support the operating needs. The Academy’s cash flow statement reflects increases in cash over the last two years.



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NOTE 2 LIQUIDITY AND AVAILABILITY (CONTINUED)

As of December 31, 2018, and 2017, the Academy held the following financial resources, including those that could be available within one year:

2018 2017Financial Assets Available to Meet General Operating Expenses in Next 12 Months:

Cash and Cash Equivalents 24,553,287$ 24,121,247$ Accounts Receivable 685,763 662,324 Investments Convertible to Cash in Less Than 12 Months 56,761,355 61,699,422 Less:Deferred Revenue Unavailable to Support Subsequent

Year Expenses (1,032,525) (2,023,649) Assets with Donor Restrictions (634,669) (869,010)

Total 80,333,211$ 83,590,334$

The Academy’s board of directors has established a cash reserve policy. The policy establishes the target level of cash to hold at the end of each year, annual reporting to the board and recommendation regarding any excess or shortfall. The levels were within acceptable levels and the line of credit is available to support any cash flow short falls during the year. During 2018 and 2017 draws on the line of credit, balance did not exceed $500,000 at any time.

NOTE 3 GRANTS AND GIFTS RECEIVABLE

Grants and gifts receivable at December 31 were as follows:

2018 2017Less than One Year 1,723,903$ 1,825,797$ One to Five Years 256,000 401,334

Total 1,979,903 2,227,131 Less: Discount to Present Value (6,801) (12,070)

Net Grants and Gifts Receivable 1,973,102$ 2,215,061$

Amounts are presented in the consolidated statements of financial position as follows at December 31:

2018 2017Current 1,723,903$ 1,825,797$ Long-Term 249,199 389,264

Total 1,973,102$ 2,215,061$

Grants and gifts expected to be received beyond one year are reflected at the present value of future cash flows at the date of donation using a discount rate of approximately 1% to 3%.



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NOTE 4 PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31:

2018 2017Land and Land Improvements 682,208$ 682,208$ Capital Projects in Progress 83,000 84,000 Building 17,202,176 17,202,176 Office Furniture, Equipment, and Software 5,095,653 4,182,908 Leasehold Improvements - 9,262

Total Property and Equipment 23,063,037 22,160,554 Less: Accumulated Depreciation (6,127,278) (5,259,110)

Net Property and Equipment 16,935,759$ 16,901,444$

NOTE 5 INVESTMENTS

Investments consisted of the following at December 31:

2018 2017Reserves:

Corporate Bond Funds 18,421,331$ 18,693,370$ Equity Funds - Foreign 11,182,556 13,672,987 Equity Funds - Mid-Cap 5,614,865 6,463,433 Equity Funds - Large Blend 18,432,436 19,600,754 Mutual Funds Held in Trust 242,455 159,473 Funds of Hedge Funds 4,277,869 4,531,774

Subtotal Reserves 58,171,512 63,121,791

Operating:Corporate Bond Funds 4,644,172 4,737,727 Equity Funds - Foreign 1,643,128 2,009,045 Equity Funds - Mid-Cap 838,754 965,513 Equity Funds - Large Blend 2,470,151 2,626,719 Temporary Cash Investments 30,351 30,166

Subtotal Operating 9,626,556 10,369,170

Total Investments 67,798,068$ 73,490,961$

Investments in the corporate bond funds, money market mutual funds, equity securities, and equity funds are recorded at fair market value. The funds of hedge funds are recorded at the estimated fair value of the Organization’s share of the fund, calculated monthly by the custodian.



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NOTE 5 INVESTMENTS (CONTINUED)

Investment income, which includes earnings on the demand deposit accounts, consists of the following for the years ended December 31:

2018 2017Interest and Dividends 2,452,840$ 1,777,780$ Unrealized Gain (Loss) on Investments (7,463,272) 6,260,544 Realized Gain on Sale of Investments - 478,312

Total Investment Income (5,010,432)$ 8,513,636$

The unrealized and realized gains and losses are included in investment income on the consolidated statements of activities. The Organization maintains long-term reserve investments through long-term investment holdings. These investments are separated from the Organization’s general checking and savings accounts. All investment returns on reserve investments are considered nonoperating.

NOTE 6 FAIR VALUE MEASUREMENTS

The Organization uses fair value measurements to record fair value adjustments to certain investments and to determine fair value disclosures. For additional information on how the Organization measures fair value refer to Note 1 – Summary of Significant Accounting Policies. In determining the appropriate levels, the Organization performs a detailed analysis of the assets and liabilities. At each reporting period, all assets and liabilities for which the fair value measurement is based on significant unobservable inputs are classified as Level 3. The following tables present the balances of assets measured at fair value on a recurring basis by level within the hierarchy at December 31:

Level 1 Level 2 Level 3 TotalINVESTMENTS

Temporary Cash Investments 30,351$ -$ -$ 30,351$ Corporate Bond Funds 23,065,503 - - 23,065,503 Equity Funds - Foreign 12,825,684 - - 12,825,684 Equity Funds - Mid-Cap 6,453,619 - - 6,453,619 Equity Funds - Large Blend 20,902,587 - - 20,902,587 Mutual Funds Held in Trust 242,455 - - 242,455 Funds of Hedge Funds - - - 4,277,869

Subtotal - Fair Value 63,520,199$ -$ -$ 67,798,068$

2018



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NOTE 6 FAIR VALUE MEASUREMENTS (CONTINUED)

Level 1 Level 2 Level 3 TotalINVESTMENTS

Temporary Cash Investments 30,166$ -$ -$ 30,166$ Corporate Bond Funds 23,431,097 - - 23,431,097 Equity Funds - Foreign 15,682,032 - - 15,682,032 Equity Funds - Mid-Cap 7,428,946 - - 7,428,946 Equity Funds - Large Blend 22,227,473 - - 22,227,473 Mutual Funds Held in Trust 159,473 - - 159,473 Funds of Hedge Funds - - - 4,531,774

Subtotal - Fair Value 68,959,187$ -$ -$ 73,490,961$

2017

Fair value measurements of investments in certain entities that calculate net asset value per share (or its equivalent) as of December 31:

Net Asset Redemption RedemptionValue Notice Period Frequency

Fund of Hedge Funds 4,277,869 107 Days Semi-Annually

Net Asset Redemption RedemptionValue Notice Period Frequency

Fund of Hedge Funds 5,621$ In Liquidation N/AFund of Hedge Funds 4,526,153 107 Days Semi-Annually

2018

2017

Fund of hedge funds includes investments in multi-strategy and event driven funds. The fair value of the hedged funds in this category has been estimated using the net asset value per share of the investments (or its equivalent). There are no unfunded commitments as of December 31, 2018 and 2017. As of December 31, 2017, fund of hedge funds that was currently in liquidation had a reserve recorded against the value to fully allow for the remaining value.

NOTE 7 INCOME TAX

The Academy is subject to income tax on any unrelated business income. The provision for income taxes charged to operations was $72,900 and $131,400 at December 31, 2018 and 2017, respectively.

NOTE 8 FUNDS HELD FOR OTHERS

Funds held for others consists are the value of investments of two 501(c)(3) organizations (American Brain Foundation and Child Neurology Foundation). Their funds are pooled with investments of the Organization.



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NOTE 9 NOTES PAYABLE

Notes payable consisted of the following as of December 31:

2018 2017Revenue Bonds Due June 1, 2032 with a Fixed Interest Rate of 3.32% at December 31 10,125,000$ 10,875,000$ Capital Lease Obligations 92,827 114,786 Bond Issuance Costs (164,757) (176,901)

Total Notes Payable 10,053,070$ 10,812,885$

The city of Minneapolis, Minnesota issued Recovery Zone Facility Revenue Bonds to finance the construction and equipping of the Academy’s office building. Interest was payable monthly at a fixed rate of 3.32% through June 1, 2017 and principal payments are due semi-annually beginning December 2012. The notes were refinanced March 20, 2017 and the fixed interest rate was reset at 2.28% through March 22, 2022. The Organization may renegotiate the rate to determine if it remains fixed or transfers to a variable rate in March 2022. The bonds are secured by the Organization’s building. The bonds mature on March 9, 2022. The agreement includes a provision that automatically resets the interest rate for a change in the maximum federal corporate tax rate. The tax rate was revised on January 1, 2018 under the “Tax Cuts and Job Act.” The impact of the change was an increase in the interest rate to 2.89% effective January 1, 2018. All other terms remain unchanged as disclosed above. Amounts are presented in the consolidated statements of financial position as follows at December 31:

2018 2017Current 772,447$ 771,959$ Long Term 9,280,623 10,040,926

Total 10,053,070$ 10,812,885$

At December 31, 2018, the Organization believes they are in compliance with all financial covenant requirements. The Organization incurred interest expense related to notes payable of $314,875 and $352,357 in 2018 and 2017, respectively. The Organization leases certain office equipment under noncancelable leases. The leases have been capitalized and included in equipment. The cost of equipment under the capital leases was $114,786 at December 31, 2018. The related amortization expense is included with depreciation expense.



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NOTE 9 NOTES PAYABLE (CONTINUED)

Payments are due as follows:

Year Ending December 31, Revenue Bonds Capital Lease Total2019 750,000$ 22,447$ 772,447$ 2020 750,000 22,946 772,946 2021 750,000 23,456 773,456 2022 750,000 23,974 773,974 2023 750,000 - 750,000

Thereafter 6,375,000 - 6,375,000 Total 10,125,000$ 92,823$ 10,217,823$

The Organization has a line of credit with a bank in the amount of $2,500,000 for working capital purposes. The agreement matures October 25, 2019 and had an interest rate of 1.74% plus the one-month LIBOR rate as of December 31, 2018. As of December 31 2018 and 2017, there were no amounts outstanding on the line of credit. The bond was issued December 21, 2010 and the bond issuance costs are amortized over the life of the bond.

2018 2017Bond Issuance Costs 262,221$ 262,221$ Less: Accumulated Amortization (97,464) (85,320)

Net Bond Issuance Costs 164,757$ 176,901$

NOTE 10 GRANTS PAYABLE

Grants payable included the following at December 31:

2018 2017Current Portion of Grants Payable 2,307,500$ 1,940,000$ Long-Term Portion of Grants Payable 1,017,461 955,624

Net Grants Payable 3,324,961$ 2,895,624$

Amounts Due:One Year or Less 2,307,500$ 1,940,000$ One to Five Years 1,047,770 980,000 Discount to Present Value (30,309) (24,376)

Net Grants Payable 3,324,961$ 2,895,624$

Grants expected to be paid beyond one year are reflected at the present value of future cash flows using a discount rate of approximately 1% to 3%.



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NOTE 11 DEFERRED REVENUE

Deferred revenue consisted of the following at December 31:

2018 2017Future Year Dues 6,358,796$ 5,984,797$ Conference Revenues 2,331,931 2,690,088 Publication Bonus 2,000,000 3,000,000 Publications 7,410,824 7,150,652 Registration 1,261,562 1,414,398 Other 225,636 310,743

Total Deferred Revenue 19,588,749 20,550,678 Current Portion of Deferred Revenue (18,556,224) (18,527,029)

Long-Term Portion of Deferred Revenue 1,032,525$ 2,023,649$

NOTE 12 NET ASSETS WITH DONOR RESTRICTIONS

Net assets with donor restrictions were available for the following purposes at December 31:

2018 2017Annual Meeting and Other Programs 1,995,720$ 2,248,570$ Education, Research and Award Funds 100,276 120,126 BrainPAC 227,419 266,760 Perpetual Endowment 138,250 138,250

Total 2,461,665$ 2,773,706$

NOTE 13 NET ASSETS RELEASED FROM RESTRICTIONS

Net assets were released from donor restrictions by the Organization incurring expenses satisfying the restricted purposes or by occurrence of other events specified by donors for the following purposes as of December 31:

2018 2017Annual Meeting and Other Programs 2,262,932$ 3,350,399$ Education, Research and Award Funds 1,735,000 1,572,719 BrainPAC 411,000 324,000

Total 4,408,932$ 5,247,118$



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NOTE 14 ENDOWMENT

The Organization’s donor-restricted endowment consists of three individual funds established to support research and awards and, as required by accounting principles generally accepted in the United States of America, net assets associated with those endowment funds are classified and reported based on the existence or absence of donor-imposed restrictions. The board of directors of the Organization has determined the presentation of the fair value of the original gift as of the gift date of the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a result of this interpretation, the Organization classifies as net assets with donor restrictions (a) the original value of gifts donated to the perpetual endowment, (b) the original value of subsequent gifts to the perpetual endowment, and (c) accumulations to the perpetual endowment made in accordance with the direction of the applicable donor gift instrument at the time the accumulation is added to the fund. The Organization considers the following factors when making a determination to appropriate or accumulate donor-restricted funds:

1. The duration and preservation of the fund

2. The purposes of the Organization and the donor-restricted endowment fund

3. General economic conditions

4. The possible effect of inflation and deflation

5. The expected total return from income and the appreciation of investments

6. Other resources of the Organization

7. The investment policies of the Organization The Organization has adopted investment and spending policies for endowment assets that attempt to provide a predictable stream of funding to programs supported by its endowment while seeking to maintain purchasing power of the endowment assets. Under this policy, as approved by the board of directors, the endowment assets are invested in a manner that is intended to produce a real return, net of inflation and investment management costs, of at least 8% over the long term. Actual returns in any given year may vary from this amount. To satisfy its long-term rate-of-return objectives, the Organization relies on a total return strategy in which investment returns are achieved through both capital appreciation (realized and unrealized) and current yield (interest and dividends). The Organization targets a diversified asset allocation that places a greater emphasis on equity-based investments to achieve its long-term objective within prudent risk constraints. The Organization has a policy of appropriating for distribution each year 4.5% of its endowment fund’s moving average fair value over the prior 12 months through the calendar year-end preceding the fiscal year in which the distribution is planned. In establishing this policy, the Organization considered the long-term expected return on its endowment. Accordingly, over the long term, the Organization expects the current spending policy to allow its endowment to grow at an average of the long-term rate of inflation.



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NOTE 14 ENDOWMENT (CONTINUED)

This is consistent with the Organization’s objective to maintain the purchasing power of the endowment assets held in perpetuity for a specific term as well as to provide additional real growth through new gifts and investment return. From time to time, the fair value of assets associated with individual donor-restricted endowment funds may fall below the level that the donor or the Uniform Prudent Management of Institutional Funds Act requires the Organization to retain as a fund of perpetual duration. There were no such deficiencies as of December 31, 2018 and 2017. Changes in endowment net assets for the fiscal years ended December 31 consisted of the following:

Total With DonorPurpose Perpetual Restrictions

Balance - December 31, 2016 85,122$ 138,250$ 223,372$ Investment Income 33,506 33,506 Contributions - - - Changes in Donor Restrictions - - - Appropriation of Endowment Funds (2,500) (2,500)

Balance - December 31, 2017 116,128 138,250 254,378 Investment Income (20,351) (20,351) Contributions - - - Changes in Donor Restrictions - - - Appropriation of Endowment Funds (2,500) - (2,500)

Balance - December 31, 2018 93,277$ 138,250$ 231,527$

NOTE 15 RETIREMENT PLAN

The Academy has a defined contribution retirement plan for its employees who meet certain service requirements. The Academy makes monthly contributions to the plan of 10.5% of the base salaries of qualifying participants. Retirement plan expenses were approximately $1,249,000 and $1,141,000 for the years ended December 31, 2018 and 2017, respectively.

NOTE 16 COMMITMENTS

Lease Commitments

The Organization leases space in Rochester, New York, and Washington, DC, with varying terms through 2018. Total rent expense for these leases, including maintenance and operating costs, for the year ended December 31, 2018 totaled $132,615.



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NOTE 16 COMMITMENTS (CONTINUED)

Lease Commitments (Continued)

Future minimum lease payments required under the noncancelable operating leases are as follows at December 31, 2018:

Year Ending December 31, Amount2019 138,135 2020 144,099 2021 24,171

Total Minimum Lease Payments 306,405$

Hotel and Convention Center Commitments

As of December 31, 2018, the Organization had signed commitments with various hotels and convention centers for the upcoming annual meetings. At December 31, 2018, the Organization was liable for approximately $5,500,000 if the Organization cancels the agreements. Over $3,000,000 of these commitments are scheduled to be fulfilled in May 2019. The Organization has obtained insurance to cover the future annual meetings.

NOTE 17 RELATED PARTY TRANSACTIONS

United Council for Neurologic Subspecialties (UCNS) is a nonprofit corporation which provides certification and accreditation for physicians in neurological subspecialties. UCNS was formed by American Academy of Neurology and four other nonprofit neurology associations. The Academy provides various operational services to UCNS including leased employees as follows:

2018 2017Services Provided 170,460$ 152,591$ Leased Employees 439,600 440,400 Account Receivable 70,183 78,990

The American Brain Foundation (ABF) is a nonprofit corporation established to support vital research into finding cures for brain disease. The Academy provides various operational services to the ABF including leases employees. The total amount of services provided by the Academy for the years ended December 31, 2018 and 2017 was as follows:

2018 2017Services Provided 339,560$ 299,356$ Leased Employees 877,000 770,200 Account Receivable 98,373 90,151

The Academy, in 2018 and 2017, awarded and paid grants of $750,000 and $950,000, respectively, to the Foundation in support of their operations.



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NOTE 17 RELATED PARTY TRANSACTIONS (CONTINUED)

The Academy, in 2018 and 2017, received a grant from the Foundation of $1,375,000 and $700,000, respectively, to support clinical research training scholarships. The Foundation also provided support to the Academy for various awards in 2018 and 2017, totaling $182,400 and $178,800, respectively. As of December 31, 2018 and 2017, the Academy had a receivable from the Foundation of $727,500 and $510,000, respectively, related to these grants. The Foundation pools their long-term investments with the Academy as described in Note 4 to the financial statements. Certain members of the Academy’s board of directors are individuals from which the Academy purchases services in the normal course of business. During the years ended December 31, 2018 and 2017, the Academy purchased $308,739 and $479,244, respectively, of services from individuals who are members of the board of directors.


CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2018

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The American

American Academy ofAcademy of NeurologyNeurology Institute Eliminations Consolidated

ASSETS

CURRENT ASSETSCash and Cash Equivalents 13,121,092$ 11,432,195$ -$ 24,553,287$ Grants and Gifts Receivable, Net - 1,723,903 - 1,723,903 Accounts Receivable, Net 641,122 44,641 - 685,763 Intercompany Receivable 1,541,422 - (1,541,422) - Prepaid Expenses 522,943 487,235 - 1,010,178

Total Current Assets 15,826,579 13,687,974 (1,541,422) 27,973,131

PROPERTY AND EQUIPMENT, NET 1,052,202 15,883,557 - 16,935,759

OTHER LONG-TERM ASSETSInvestments 8,674,034 58,881,579 - 67,555,613 Investments Held in Trust 242,455 - - 242,455 Grants and Gifts Receivable, Net of Current Portion - 249,199 - 249,199

Total Other Long-Term Assets 8,916,489 59,130,778 - 68,047,267

Total Assets 25,795,270$ 88,702,309$ (1,541,422)$ 112,956,157$


CURRENT LIABILITIESAccounts Payable 1,856,188$ 423,347$ -$ 2,279,535$ Notes Payable 22,447 750,000 - 772,447 Grants Payable 5,000 2,302,500 - 2,307,500 Intercompany Payable - 1,541,422 (1,541,422) - Deferred Revenue 14,039,030 4,517,194 - 18,556,224 Accrued Expenses 2,904,659 287,847 - 3,192,506

Total Current Liabilities 18,827,324 9,822,310 (1,541,422) 27,108,212

LONG-TERM LIABILITIES Notes Payable, Net of Current Portion 70,380 9,210,243 - 9,280,623 Funds Held for Others - 7,026,907 - 7,026,907 Deferred Compensation 426,704 - - 426,704 Deferred Revenue, Net of Current Portion 1,032,525 - - 1,032,525 Grants Payable, Net of Current Portion - 1,017,461 - 1,017,461

Total Long-Term Liabilities 1,529,609 17,254,611 - 18,784,220

Total Liabilities 20,356,933 27,076,921 (1,541,422) 45,892,432

NET ASSETS Without Donor Restrictions 5,210,918 59,391,142 - 64,602,060 With Donor Restrictions 227,419 2,234,246 - 2,461,665

Total Net Assets 5,438,337 61,625,388 - 67,063,725

Total Liabilities and Net Assets 25,795,270$ 88,702,309$ (1,541,422)$ 112,956,157$


CONSOLIDATING STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2017

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The American


ASSETS

CURRENT ASSETSCash and Cash Equivalents 14,012,486$ 10,108,761$ -$ 24,121,247$ Grants and Gifts Receivable, Net - 1,825,797 - 1,825,797 Accounts Receivable, Net 564,425 97,899 - 662,324 Intercompany Receivable 1,078,529 - (1,078,529) - Prepaid Expenses 508,011 359,607 - 867,618 Other Assets 50,503 - - 50,503

Total Current Assets 16,213,954 12,392,064 (1,078,529) 27,527,489

PROPERTY AND EQUIPMENT, NET 516,804 16,384,640 - 16,901,444

OTHER LONG-TERM ASSETSInvestments 9,421,924 63,909,564 - 73,331,488 Investments Held in Trust 159,473 - - 159,473 Grants and Gifts Receivable, Net of Current Portion - 389,264 - 389,264

Total Other Long-Term Assets 9,581,397 64,298,828 - 73,880,225

Total Assets 26,312,155$ 93,075,532$ (1,078,529)$ 118,309,158$


CURRENT LIABILITIESAccounts Payable 1,237,726$ 1,022,706$ -$ 2,260,432$ Notes Payable 21,959 750,000 - 771,959 Grants Payable 5,000 1,935,000 - 1,940,000 Intercompany Payable - 1,078,529 (1,078,529) - Deferred Revenue 13,919,263 4,607,766 - 18,527,029 Accrued Expenses 2,761,908 293,762 - 3,055,670

Total Current Liabilities 17,945,856 9,687,763 (1,078,529) 26,555,090

LONG-TERM LIABILITIES Notes Payable, Net of Current Portion 92,827 9,948,099 - 10,040,926 Funds Held for Others - 7,642,857 - 7,642,857 Deferred Compensation 159,473 - - 159,473 Deferred Revenue, Net of Current Portion 2,023,649 - - 2,023,649 Grants Payable, Net of Current Portion 4,842 950,782 - 955,624

Total Long-Term Liabilities 2,280,791 18,541,738 - 20,822,529

Total Liabilities 20,226,647 28,229,501 (1,078,529) 47,377,619

NET ASSETS Without Donor Restrictions 5,818,748 62,339,085 - 68,157,833 With Donor Restrictions 266,760 2,506,946 - 2,773,706

Total Net Assets 6,085,508 64,846,031 - 70,931,539

Total Liabilities and Net Assets 26,312,155$ 93,075,532$ (1,078,529)$ 118,309,158$


CONSOLIDATING STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2018

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The American


CHANGES IN NET ASSETS WITHOUT DONOR RESTRICTIONS

SUPPORT AND REVENUERoyalties 7,802,022$ 5,807,179$ -$ 13,609,201$ Membership 8,575,152 1,270,000 - 9,845,152 Conference and Educational Fees 99,645 14,916,326 (9,000) 15,006,971 Grants and Gifts - 3,779,368 - 3,779,368 Product Sales 275,634 99,375 - 375,009 Publishing Fees 7,076,957 - - 7,076,957 Management and Service Fees 2,770,060 1,795,939 (4,010,229) 555,770 Other 63,882 66,222 - 130,104 Investment Income (Loss) (690,820) 100,991 - (589,829) Net Assets Released From Restrictions 411,000 3,997,932 - 4,408,932

Total Support and Revenue 26,383,532 31,833,332 (4,019,229) 54,197,635

EXPENSESProgram Expenses:

Grants and Awards 96,915 4,401,825 - 4,498,740 Clinical Practice - 3,693,028 - 3,693,028 Membership 7,130,482 436,226 (5,700) 7,561,008 Education 698,242 17,695,402 - 18,393,644 Products 81,960 - - 81,960 Publications 5,261,793 - - 5,261,793 Advocacy 4,606,500 331,137 (3,300) 4,934,337

Total Program Expenses 17,875,892 26,557,618 (9,000) 44,424,510

Support Services:Development - 190,410 - 190,410 General and Administrative 9,115,470 3,632,995 (4,010,229) 8,738,236

Total Support Service Expenses 9,115,470 3,823,405 (4,010,229) 8,928,646

Total Expenses 26,991,362 30,381,023 (4,019,229) 53,353,156

CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS BEFORE NONOPERATING INVESTMENT INCOME (607,830) 1,452,309 - 844,479

Nonoperating Investment Income (Loss) - (4,400,252) - (4,400,252)

CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS (607,830) (2,947,943) - (3,555,773)

CHANGES IN NET ASSETS WITH DONOR RESTRICTIONS

Grants and Gifts 371,659 3,745,583 - 4,117,242 Investment Income - (20,351) - (20,351) Net Assets Released From Restrictions (411,000) (3,997,932) - (4,408,932)

Change in Net Assets With Donor Restrictions (39,341) (272,700) - (312,041)

TOTAL CHANGE IN NET ASSETS (647,171) (3,220,643) - (3,867,814)

Net Assets - Beginning of Year 6,085,508 64,846,031 - 70,931,539

NET ASSETS - END OF YEAR 5,438,337$ 61,625,388$ -$ 67,063,725$


CONSOLIDATING STATEMENT OF ACTIVITIES YEAR ENDED DECEMBER 31, 2017

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The American


CHANGES IN NET ASSETS WITHOUT DONOR RESTRICTIONS

SUPPORT AND REVENUERoyalties 7,353,066$ 5,446,126$ -$ 12,799,192$ Membership 8,382,355 1,140,000 - 9,522,355 Conference and Educational Fees 147,568 13,976,326 (9,000) 14,114,894 Grants and Gifts 6,899 3,326,431 - 3,333,330 Product Sales 287,694 359,050 - 646,744 Publishing Fees 6,993,128 - - 6,993,128 Management and Service Fees 2,852,346 1,604,902 (3,979,581) 477,667 Other 51,070 67,849 - 118,919 Investment Income 1,251,987 53,580 - 1,305,567 Net Assets Released From Restrictions 324,000 4,923,118 - 5,247,118

Total Support and Revenue 27,650,113 30,897,382 (3,988,581) 54,558,914

EXPENSESProgram Expenses:

Grants and Awards 120,175 4,562,474 - 4,682,649 Clinical Practice - 3,806,843 - 3,806,843 Membership 6,960,093 398,984 (5,700) 7,353,377 Education 1,216,612 16,542,434 - 17,759,046 Products 91,218 - - 91,218 Publications 5,489,572 - - 5,489,572 Advocacy 4,184,194 366,584 (3,300) 4,547,478

Total Program Expenses 18,061,864 25,677,319 (9,000) 43,730,183

Support Services:Development - 203,115 - 203,115 General and Administrative 8,254,093 2,996,185 (3,979,581) 7,270,697

Total Support Service Expenses 8,254,093 3,199,300 (3,979,581) 7,473,812

Total Expenses 26,315,957 28,876,619 (3,988,581) 51,203,995

CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS BEFORE NONOPERATING INVESTMENT INCOME 1,334,156 2,020,763 - 3,354,919

Nonoperating Investment Income - 7,174,563 - 7,174,563

CHANGE IN NET ASSETS WITHOUT DONOR RESTRICTIONS 1,334,156 9,195,326 - 10,529,482

CHANGES IN NET ASSETS WITH DONOR RESTRICTIONS

Grants and Gifts 407,332 4,442,130 - 4,849,462 Investment Income - 33,506 - 33,506 Net Assets Released From Restrictions (324,000) (4,923,118) - (5,247,118)

Change in Net Assets With Donor Restrictions 83,332 (447,482) - (364,150)

TOTAL CHANGE IN NET ASSETS 1,417,488 8,747,844 - 10,165,332

Net Assets - Beginning of Year 4,668,020 56,098,187 - 60,766,207

NET ASSETS - END OF YEAR 6,085,508$ 64,846,031$ -$ 70,931,539$

Documents

AMERICAN ACADEMY OF NEUROLOGY AND AMERICAN ......2018/12/31 · Neurology and American Academy of Neurology Institute, which comprise the consolidated statements of financial position