Accountants' Compilation Report

We have compiled the accompanying statement of financial position of the American Clinical and Climatological Association (a nonprofit organization) as of December 31, 2013, and the related statements of activities and cash flows for the year then ended. We have not audited or reviewed the accompanying financial statements and, accordingly, do not express an opinion or provide any assurance about whether the financial statements are in accordance with accounting principles generally accepted in the United States of America.

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America and for designing, implementing, and maintaining internal control relevant to the preparation and fair presentation of the financial statements.

Our responsibility is to conduct the compilation in accordance with Statements on Standards for Accounting and Review Services issued by the American Institute of Certified Public Accountants. The objective of a compilation is to assist management in presenting financial information in the form of financial statements without undertaking to obtain or provide any assurance that there are no material modifications that should be made to the financial statements.

The supplementary information on pages 11 and 12 is presented for purposes of additional analysis and is not a required part of the basic financial statements. The supplementary information has been compiled from information that is the representation of management. We have not audited or reviewed the supplementary information and, accordingly, do not express an opinion or provide any assurance on such supplementary information.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION STATEMENT OF FINANCIAL POSITION DECEMBER 31, 2013 (SEE ACCOUNTANTS' COMPILATION REPORT)

ASSETS
CURRENT ASSETS
Cash and cash equivalents	$ 668
Receivable for overpayment from hotel	12,035
Total current assets	$ 12,703
INVESTMENTS	577,943
OTHER ASSETS
Deposits	2,000
Total assets	$ 592,646
LIABILITIES AND NET ASSETS
LIABILITIES
Account payable	$ 1,710
NET ASSETS
Unrestricted net assets:
Designated by the Board of Trustees:
Endowment Fund	172,933
Metzger Fund	49,498
Woodward Fund	70,400
Undesignated	107,831
Total unrestricted net assets	400,662
Temporarily restricted net assets	109,124
Permanently restricted net assets	81,150
Total net assets	590,936
Total liabilities and net assets	$ 592,646

The accompanying notes are an integral part of this statement.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION STATEMENT OE ACTIVITIES FOR THE YEAR ENDED DECEMBER 31, 2013 (SEE ACCOUNTANTS' COMPILATION REPORT)

	Unrestricted	Temporarily Restricted	Permanently Restricted	Total
REVENUES AND SUPPORT
Dues and other support	$ 60,056	$ -	$ -	$ 60,056
Registration and conference fees	158,400	-	-	158,400
Net investment return	63,078	28,931	1,150	93,159
	281,534	28,931	1,150	311,615
Net assets released from restrictions	8,472	(8,472)	-	-
Total revenues and support	290,006	20,459	1,150	311,615
EXPENSES
Program services:
Meeting expenses	222,457	-	-	222,457
Total program services	222,457	-	-	222,457
Support services:
Administrative support	11,520	-	-	11,520
Professional fees	2,400	-	-	2,400
Office supplies and postage	3,296	-	-	3,296
Archive expense	3,348	-	-	3,348
Total support services	20,564	-	-	20,564
Total expenses	243,021	-	-	243,021
CHANGE IN NET ASSETS	46,985	20,459	1,150	68,594
Net assets - beginning of period	353,677	88,665	80,000	522,342
Net assets - end of period	$ 400,662	$ 109,124	$ 81,150	$ 590,936

The accompanying notes are an integral part of this statement.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION STATEMENT OF CASH FLOWS FOR YEAR ENDED DECEMBER 31, 2013 (SEE ACCOUNTANTS' COMPILATION REPORT)

CASH FLOWS FROM OPERATING ACTIVITIES
Change in net assets	$ 68,594
Adjustments to reconcile change in net assets to net cash used in operating activities:
Realized gains on investments - net	(9,746)
Unrealized gains on investments - net	(64,523)
Increase in receivable	(12,035)
Decrease in deposits	5,000
Increase in payable	859
Net cash used in operating activities	(11,851)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from sale of investments	22,700
Purchases of investments	(18,887)
Net cash provided by investing activities	3,813
Net change in cash and cash equivalents	(8,038)
Cash and cash equivalents - beginning of period	8,706
Cash and cash equivalents - end of period	$ 668

The accompanying notes are an integral part of this statement.

AMERICAN CLINICAL AND CLIMATOLOGIGAL ASSOCIATION NOTES TO FINANCIAL STATEMENTS

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.

The Association adopted the 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, 2010.

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.

2. Investments

Investments at December 31, 2013, are summarized as follows:

	Cost	Unrealized (Depreciation) Appreciation	Estimated Fair Value
Mutual funds:
American Funds:
Washington Mutual Investors Fund	$ 17,105	$ 5,720	$ 22,825
Bond Fund of America	63,068	9,390	72,458
New Perspective Fund	27,745	7,518	35,263
Small Cap World	51,126	13,080	64,206
Capital Income Builder	61,273	5,849	67,122
Cap World Bond Fund	35,299	1,539	36,838
Capital World Growth and Income	7,423	1,422	8,845
Fundamental Investors	28,226	8,280	36,506
Growth Fund of America	35,195	9,897	45,092
Income Fund of America	66,594	(4,322)	70,916
American Balanced Fund	65,678	52,194	117,872
Total investments	$ 458,732	$ 119,211	$ 577,943

The following schedule summarizes the net investment return and its classification in the statement of activities for the year ended December 31, 2013:

	Unrestricted	Temporarily Restricted	Permanently Restricted	Total
Interest and dividends	$ 12,790	$ 5,866	$ 233	$ 18,889
Realized gains on investments - net	6,599	3,027	120	9,746
Unrealized gains - net	43,689	20,038	797	64,524
Net investment return	$ 63,078	$ 28,931	$ 1,150	$ 93,159

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 which are allocated to the DuPont Fund 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 longterm 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, 2013 were as follows:

	Unrestricted (Endowment, Metzger, Woodward)	Temporarily Restricted (Wilson, DuPont)	Permanently Restricted (DuPont)	Total
Endowment net assets, beginning of year	$ 258,964	$ 88,665	$ 80,000	$ 427,629
Investment returns:
Investment income (loss)	14,154	8,893	353	23,400
Net appreciation (depreciation)	31,893	20,038	797	52,728
Other revenues and support	159,473	-	-	159,473
Appropriation of endowment assets for expenditure	(171,653)	(8,472)	-	(180,125)
Endowment net assets, end of year	$ 292,831	$ 109,124	$ 81,150	$ 483,105
Donor-restricted endowment	$ -	$ 109,124	$ 81,150	$ 190,274
Board-designatred endowment	292,831	-	-	292,831
Total	$ 292,831	$ 109,124	$ 81,150	$ 483,105

5. Subsequent Events

The Association has evaluated subsequent events through the date that the financial statements were available to be issued, October 24, 2014, and determined that no events occurred that required additional disclosure. No events occurring after this date have been evaluated for inclusion in these financial statements.

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION SUPPLEMENTARY INFORMATION SCHEDULE OF CASH AND INVESTMENTS DECEMBER 31, 2013 (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		$ 668	$ -	$ -	$ -	$ -	$ -	$ 668
Total		$ 668	$ -	$ -	$ -	$ -	$ -	$ 668
INVESTMENTS (AT ESTIMATED FAIR VALUE)
	Shares
Washington Mutual Investors Fund	578,879	$ 3,745	$ 6,380	$ 1,955	$ 2,780	$ 3,030	$ 4,485	$ 22,825
Bond Fund of America	5,843,388	11,890	21,681	6,206	8,826	9,619	14,236	72,458
New Perspective Fund	938,849	5,787	10,551	3,020	4,296	4,681	6,928	35,263
Small Cap World	1,306,327	10,536	19,212	5,499	7,821	8,523	12,615	64,206
Capital Income Builder	1,146,399	11,014	20,084	5,749	8,177	8,910	13,188	67,122
Cap World Bond Fund	1,831,853	6,045	11,023	3,155	4,487	4,890	7,238	36,838
Capital World Growth and Income	195,177	1,451	2,647	758	1,077	1,174	1,738	8,845
Fundamental Investors	702,438	5,990	10,923	3,127	4,447	4,846	7,173	36,506
Growth Fund of America	1,048,648	7,399	13,492	3,862	5,493	5,986	8,860	45,092
Income Fund of America	3,434,172	11,637	21,220	6,074	8,638	9,414	13,933	70,916
American Balanced Fund	4,826,865	19,344	35,270	10,093	14,358	15,648	23,159	117,872
Total		$ 94,838	$ 172,933	$ 49,498	$ 70,400	$ 76,721	$ 113,553	$ 577,943

AMERICAN CLINICAL AND CLIMATOLOGICAL ASSOCIATION SUPPLEMENTARY INFORMATION SCHEDULE OF MEETING EXPENSES FOR THE YEAR ENDED DECEMBER 31, 2013 (SEE ACCOUNTANTS' COMPILATION REPORT)

Banquet charges	$ 134,833
Audio visual	9,125
Band	3,146
Travel expenses	27,166
Printing	2,579
Publishing	33,696
Honoraria	10,772
Awards	1,140
	$ 222,457