Secretary-Treasurer's Report

We have compiled the accompanying statement of financial position of the American Clinical and Climatological Association (a nonprofit organization) as of December 31, 2009, and the related statements of activities and cash flows for the year then ended, and the accompanying supplementary information contained in the Schedule of Cash and Investments as of December 31, 2009 and the Schedule of Meeting Expenses for the year ended December 31, 2009, which are presented only for supplementary analysis purposes, in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants.

A compilation is limited to presenting in the form of financial statements and supplementary schedules information that is the representation of management. We have not audited or reviewed the accompanying financial statements and supplementary schedules and, accordingly, do not express an opinion or any other form of assurance on them.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2009 (SEE ACCOUNTANTS' COMPILATION REPORT)

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 6,801
INVESTMENTS	471,747
OTHER ASSETS
Deposits	7,500
Total assets	$ 486,048
LIABILITIES AND NET ASSETS
LIABILITIES	$-
NET ASSETS
Unrestricted net assets:
Designated by the Board of Trustees:
Endowment Fund	142,783
Metzger Fund	42,520
Woodward Fund	58,127
Undesignated	89,033
Total unrestricted net assets	332,463
Temporarily restricted net assets	78,585
Permanently restricted net assets	75,000
Total net assets	486,048
Total liabilities and net assets	$ 486,048

The accompanying notes are an integral part of this statement.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA STATEMENT OF ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2009 (SEE ACCOUNTANTS' COMPILATION REPORT)

	Unrestricted	Temporarily Restricted	Permanently Restricted	Total
REVENUES AND SUPPORT
Contributions	$ 5,305	$-	$75,000	$ 80,305
Dues	47,100	-	-	47,100
Emeritus dues	4,480	-	-	4,480
Book sales	889	-	-	889
Registration and conference fees	39,037	-	-	39,037
Royalty income	552	-	-	552
Net investment return	66,876	32,973	-	99,849
	164,239	32,973	75,000	272,212
Net assets released from restrictions	7,885	(7,885)	-	-
Total revenues and support	172,124	25,088	75,000	272,212
EXPENSES
Program services:
Meeting expenses	77,478	-	-	77,478
Total program services	77,478	-	-	77,478
Support services:
Administrative fees	10,500	-	-	10,500
Professional fees	6,650	-	-	6,650
Office supplies and postage	316	-	-	316
Website expenses	2,798	-	-	2,798
Secretarial support	1,118	-	-	1,118
Archive expense	1,408	-	-	1,408
Total support services	22,790	-	-	22,790
Total expenses	100,268	-	-	100,268
CHANGE IN NET ASSETS	71,856	25,088	75,000	171,944
Net assets - beginning of period	260,607	53,497	-	314,104
Net assets - end of period	$ 332,463	$ 78,585	$ 75,000	$ 486,048

The accompanying notes are an integral part of this statement.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2009 (SEE ACCOUNTANTS' COMPILATION REPORT)

CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets	$ 171,944
Adjustments to reconcile change in net assets to net cash provided by operating activities:
Realized gains on investments - net	156
Unrealized gains on investments - net	(87,068)
Increase in deposits	(3,000)
Net cash provided by operating activities	82,032
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments	(87,909)
Proceeds from the sale of investments	12,000
Net cash used in investing activities	(75,909)
Net change in cash and cash equivalents	6,123
Cash and cash equivalents - beginning of period	678
Cash and cash equivalents - end of period	$ 6,801

The accompanying notes are an integral part of this statement.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA NOTES TO FINANCIAL STATEMENTS

1. Summary of Significant Accounting Policies

Organization and Nature of Activities

The American Clinical and Climatological Association (the Association) is a non-profit organization which provides an annual forum for the exchange of scientific information between involved professionals from many sectors of the medical community, including representatives from the practicing sector, academic medicine, medical research, national physicians' organizations, national educational organizations and various medically-involved governmental agencies. Presentations of these annual proceedings are published worldwide.

Basis of Accounting

The accompanying financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the Unites States of America (GAAP), which is contained in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC).

Financial Statement Presentation

The Association is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets and permanently restricted net assets.

Temporarily restricted net assets are those whose use by the Association has been limited by donors to a specific time period or purpose. Permanently restricted net assets have been restricted by donors to be maintained by the Association in perpetuity.

Cash and Cash Equivalents

Cash equivalents consist of short-term, highly liquid investments which are readily convertible into cash within ninety (90) days or less from the date of purchase and consist of demand deposits and money market accounts.

Support and Revenue

The Association receives its support primarily from active member dues and returns on investments. Additional revenue is received from emeritus dues and outside book sales.

Investments

Investments are carried at estimated fair value. Investment returns are allocated based on the average balances of the individual funds. Allocated investment returns include interest income, dividends, realized gains and losses and unrealized gains and losses.

Deposits

Deposits represent prepayments to vendors for future rental of meeting facilities.

Contributions

Contributions received are recorded as unrestricted, temporarily restricted, or permanently restricted support, depending on the existence or nature of any donor restrictions. All contributions are considered to be available for unrestricted use unless specifically restricted by the donor. When a donor restriction expires (that is, when a stipulated time restriction ends or purpose restriction is accomplished), temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates.

Income Taxes

The Association was organized exclusively for education and scientific purposes and is exempt from federal income tax under Section 501(c)(3) of the Internal Revenue Code and, therefore, has made no provision for federal income taxes in the accompanying financial statements.

On January 1, 2009, the Association adopted the recent accounting guidance related to accounting for uncertainty in income taxes which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.

The statute of limitations for the examination of the Association's income tax returns is generally three years from the due date of the tax return, including extensions. The federal tax years open for assessment are years ending on or after December 31, 2006.

Designated Funds

If the Board of Trustees (the Board) specifies a purpose where none has been stated by the original donor, such funds are classified as designated funds. Since these funds resulted from an internal designation and are not donor-restricted, they are classified and reported as unrestricted net assets. Also, see Note 4. The Board has designated funds for the following purposes:

Endowment Fund - established to account for undesignated contributions received by the Association. Use of the resources is determined annually by the Board.

Metzger Fund - established in 1960 to be used for purposes considered worthwhile by the Board, generally for expenses incurred by lecturers.

Woodward Fund - established in 1993 by a gift from Theodore Woodward. The unrestricted funds will be used to pay for an annual award to the lecturer with the best presentation of clinical skills.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA NOTES TO FINANCIAL STATEMENTS

2. Investments

Investments at December 31, 2009, are summarized as follows:

	Cost	Unrealized (Depreciation) Appreciation	Estimated Fair Value
Mutual funds:
American Funds:
Washington Mutual Investors Fund	$ 40,852	$ (4,998)	$ 35,854
Bond Fund of America	62,792	7,293	70,085
New Perspective Fund	36,219	(1,089)	35,130
Small Cap World	44,005	(7,876)	36,129
Capital Income Builder	45,438	(4,163)	41,275
Cap World Bond Fund	34,690	1,843	36,533
Capital World Growth and Income	15,910	(1,156)	14,754
Fundamental Investors	32,830	(6,058)	26,772
Growth Fund of America	47,705	(8,364)	39,341
Income Fund of America	51,091	(10,962)	40,129
American Balanced Fund	77,371	18,374	95,745
Total investments	$ 488,903	$ (17,156)	$ 471,747

The following schedule summarizes the net investment return and its classification in the statement of activities for the year ended December 31, 2009:

	Unrestricted	Temporarily Restricted	Total
Interest and dividends	$ 8,665	$ 4,272	$ 12,937
Realized losses on investments-net	(104)	(52)	(156)
Unrealized gains - net	58,315	28,753	87,068
Net investment return	$ 66,876	$ 32,973	$ 99,849

3. Fair Value Measurements

The Association uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. GAAP defines fair value as the price that would be received to sell an asset or paid to transfer of a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. GAAP also establishes a fair value hierarchy for valuation inputs. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. These levels are as follows:

• Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include investment securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

• Level 2 - Valuation is based on inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

• Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.

The Association's investments consist of mutual funds, which are measured at fair value on a recurring basis according to quoted market prices available from actively traded exchanges and, therefore, meet Level 1 criteria.

4. Endowed Net Assets

The Association's endowed net assets consist of individual funds established for a variety of purposes. Endowed net assets include both donor-restricted endowment funds and funds designated by the Board of Trustees to function as endowments (See Note 1). As required by GAAP, net assets associated with endowment funds, including funds designated by the Board of Trustees to function as endowments, are classified and reported based on the existence or absence of donor-imposed restrictions.

The Wilson Fund was established in 1936 to be used for the expenses for the Gordon Wilson Lectureship. Expenses include honorarium and travel expenses of the lecturer. Temporarily restricted funds received are for specific purposes and are released from restriction when that particular need or program occurs.

In January 2009, the Association received donor-restricted funds in the amount of $75,000, establishing the Bert and Peggy DuPont Lecture Endowment Fund (the DuPont Fund), to remain in perpetuity. The annual spending allocation, which is restricted to 5 percent, can be used in support of an annual lecture or for support of the Association's expenses. The DuPont Fund's spending policy dictates that no portion of the inflation-adjusted corpus calculated on an annual basis, as defined by the donors, is to be allocated for spending. The amounts in excess of the inflation-adjusted corpus are classified as temporarily restricted net assets and may be subject to the annual spending allocation.

The Association has established investment and spending policies with the objective of maintaining the purchasing power of its assets and to provide a stable level of support. The Association has a diversified investment allocation that places emphasis on equity-based investments to achieve its long-term return objectives, through both capital appreciation (realized and unrealized) and current yield (interest and dividends). To achieve these objectives, the Association's investment allocation strategy is reviewed periodically and adjusted to target a total return that covers inflation, administrative expenses, and spending allocations, while minimizing volatility.

Changes in endowed net assets for the year ended December 31, 2009 were as follows:

	Unrestricted (Endowment, Metzger, Woodward)	Temporarily Restricted (Wilson, Dupont)	Permanently Restricted (DuPont)	Total
Endowment net assets, beginning of year	$ 190,818	$ 53,497	$ -	$ 244,315
Contributions	3,873	-	75,000	78,873
Investment returns:
Investment income	6,325	4,272	-	10,597
Net appreciation	42,494	28,701	-	71,195
Other revenues and support	67,202	-	-	67,202
Appropriation of endowment assets for expenditure	(67,282)	(7,885)	-	(75,167)
Endowment net assets, end of year	$ 243,430	$ 78,585	$ 75,000	$ 397,015
Donor-restricted endowment	$ -	$ 78,585	$ 75,000	$ 153,585
Board-designatred endowment	243,430	-	-	243,430
Total	$ 243,430	$78,585	$ 75,000	$ 397,015

5. Subsequent Events

The Association has evaluated subsequent events through the date that the financial statements were available to be issued, March 30, 2010, and determined that no events occurred that require disclosure. No subsequent events occurring after this date have been evaluated for inclusion in these financial statements.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA SUPPLEMENTARY INFORMATION SCHEDULE OF CASH AND INVESTMENTS DECEMBER 31, 2009 (SEE ACCOUNTANTS' COMPILATION REPORT)

	Operating Fund	Endowment Fund	Metzger Fund	Woodward Fund	Wilson Fund	DuPont Fund	Total All Funds
CASH AND CASH EQUIVALENTS
Merrill Lynch Bank USA	$ 6,801	$ -	$ -	$-	$ -	$ -	$ 6,801
Total	$ 6,801	$ -	$ -	$ -	$ -	$ -	$ 6,801
INVESTMENTS (AT ESTIMATED FAIR VALUE)
Washington Mutual Investors Fund (1455.115 shares)	$ 5,680	$ 10,852	$ 3,232	$ 4,418	$ 4,795	$ 6,878	$ 35,855
Bond Fund of America (5939.438 shares)	11,102	21,213	6,317	8,636	9,373	13,445	70,086
New Perspective Fund (1370.130 shares)	5,565	10,633	3,166	4,329	4,698	6,739	35,130
Small Cap World (1145.853 shares)	5,723	10,935	3,256	4,452	4,832	6,931	36,129
Capital Income Builder (861.863 shares)	6,539	12,493	3,720	5,086	5,520	7,918	41,276
Cap World Bond Fund (1821.173 shares)	5,787	11,057	3,293	4,501	4,886	7,008	36,532
Capital World Growth and Income (535.067 shares)	2,337	4,466	1,330	1,818	1,973	2,830	14,754
Fundamental Investors (817.966 shares)	4,241	8,103	2,413	3,299	3,580	5,136	26,772
Growth Fund of America (1439.471 shares)	6,232	11,907	3,546	4,847	5,261	7,547	39,340
Income Fund of America (2590.628 shares)	6,357	12,146	3,617	4,945	5,367	7,698	40,130
American Balanced Fund (5906.576 shares)	15,167	28,978	8,630	11,796	12,805	18,367	95,743
Total	$ 74,730	$ 142,783	$ 42,520	$ 58,127	$ 63,090	$ 90,497	$ 471,747

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION BATON ROUGE, LOUISIANA SUPPLEMENTARY INFORMATION SCHEDULE OF MEETING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2009 (SEE ACCOUNTANTS' COMPILATION REPORT)

Banquet charges	$ 24,086
Audio visual	8,345
Band and florist	3,318
Travel expenses	20,295
Printing	2,171
Publishing	14,296
Honoraria	873
Speaker fees	4,094
	$ 77,478