2015 Hudson Notice

CALIFORNIA
TEACHERS
ASSOCIATION
1705 Murchison Drive, Burlingame, CA 94010

P.O. Box 921, Burlingame, CA 94011-0921
phone 650.697 . 1400
October 15, 2015

Dear Fair Share Payer:
Your local chapter has identified you as a fair share payer and has notified you of your fair share
obligation. The purpose of this letter is to give you notice of your legal rights as a fair share
payer and to clarify the difference between fair share and member status.
As a fair share payer, you are not a member of your local chapter, CTA or NEA, and do not
have access to all the rights and benefits that come with membership. Fair share payers, and
members alike, have fees/dues deducted from their paychecks. For the 2015-16 year, the amount
of the fair share for a full time teacher is $644 for CTA and $185 for NEA.
You may become a full member of the Association and pay full unified dues to NEA/CTA/Local
Association, and take advantage of all rights and benefits that come with membershiR- Members
may vote for Association officers, are covered under the $1,000,000 Educators Employment
Liability coverage, have full access to legal representation as provided by the CTA Group Legal
Services Program, and are eligible for CTA-sponsored insurance programs and many other
valuable membership benefits. A full overview of CTA programs and membership benefits can
be found in the CTA New Member brochure/poster included with these materials.
We strongly urge you to join us in the Association. For your convenience, a membership
enrollment form is enclosed. If you choose to become a member of the Association, please
complete the enrollment form and return it to your local representative. If you do not know who
your local association representative is, you may return the form to our office at the address
shown on page 2 of this letter.
If you wish to continue as a fair share payer, please read the following information concerning
the rebate and arbitration request procedure. The right to receive a rebate is available only to
those who decline membership and pay a fair share.
In the United States Supreme Court decision in Abood, a fair share requirement was found
constitutional. However, if a fair share payer objects to supporting a union's political and
ideological activities unrelated to collective bargaining ("nonchargeable" activities) the fair share
payer is allowed to receive a rebate, upon request, of their proportionate share of these
expenditures. Pursuant to the United States Supreme Court Hudson decision, your collective
bargaining representative must provide you with an explanation of the expenditures which it
considers chargeable and nonchargeable. This information is to enable you to decide whether
you wish to have your fair share reduced so that you do not contribute to nonchargeable
expenditures. The information will also enable you to decide whether you wish to challenge the
amounts deemed chargeable and nonchargeable before a neutral decision-maker.
www.cta.org
.
The law allows chargeable fair share estimates to be based on the most recent fiscal year for
which audited figures are available. The California Teachers Association and the National
Education Association made calculations regarding their estimated chargeable and
nonchargeable expenditures for the 2015-16 school year based on audited financial statements
from the 2013-14 fiscal year, the most recent fiscal year for which such statements are available.
These summaries are attached and include a full explanation regarding how the calculations were
made. Under these calculations, the actual chargeable fair share for CTA for the 2013-14 year is
73.8% and the actual chargeable fair share for NEA for the 2013-14 year is 37.72%. To account
for any adjustments an arbitrator might order, CTA and NEA have applied a 3% and a 3.77%,
respectively, "cushion" to their chargeability figures, reducing these chargeable percentages to
70.8% and 33.95%, respectively.
In the 2015-16 year, CTA dues and fees include a $20 voluntary contribution. Several options
exist to redirect the voluntary contribution or request a refund. Fair share payers requesting a
fair share rebate will have the $20 refund added to the rebate unless a separate request for the
$20 refund was made and provided.
If you do not receive, concurrent with this letter, contrary notification from your local CTA
chapter, your chapter will be adopting CTA's chargeable fair share figure (including the 3%
cushion) as its own for 2015-16. This is based on the presumption that the local's percentage of
expenditures for representational purposes is at least as great, if not much greater, than this CTA
percentage. Many chapters, in fact, spend all their local fees for chargeable purposes. CTA's use
of the presumption has been upheld in twenty-eight annual fair share arbitration hearings based
on evidence presented regarding the expenditures of a representative and/or random sample of
CTA locals and other supporting evidence. Regardless of whether the presumption is adopted,
however, each local chapter will provide its fair share payers with a separate accounting of the
chapter's chargeable and nonchargeable expenditures.
If, after reading the enclosed information, you wish to object to your fee being spent for
nonchargeable activities, and to request that you receive a rebate for the nonchargeable amount,
you must complete the enclosed form (or provide the requested information without using the
form) and return it to Fair Share Rebate, CTA Membership Accounting Department, P.O. Box
4178, Burlingame, California 94011-4178. Your form must be postmarked on or before
November 15, 2015. The amount of the CTA and NEA fee required to be remitted by a full
time fair share payer who objects is $504.60. lfwe do not hear from you within that time, we
will assume you have no objection to expenditures for 2015-16. In addition, if you wish to
challenge the calculation for CTA's, NEA's or your local chapter's chargeable expenditures in an
arbitration hearing, you must check the appropriate boxes on the form. Again, the form must be
postmarked on or before November 15, 2015. You must indicate your name, home address,
the name of your school district and the name of your local chapter in any request for fair share
rebate and/or arbitration. Note that you may challenge the CTA and/or NEA calculations
without challenging your local's calculation. Many fair share payers decide to accept their
local's calculation and to challenge only CTA and/or NEA. By not checking the box
pertaining to the local on the form, we will treat your request for arbitration as a request to
arbitrate only the CTA and NEA calculations. This year's arbitration hearing is currently
scheduled for ebruary 22- 26, 29, March 1 - 4, and 7 - 11 , 2016. The hearing will be held in
Burlingame, Los Angeles, Santa Fe Springs and Natomas. The location for each date of hearing
will be on the notice of hearing that will be sent by the American Arbitration Association some
time in December or early January. If you wish to get this information sooner, you may contact
Nelia Lara in the CTA Legal Department at (562) 478-1353 or send an email to her at:
nlara@cta.org.
If you request a fair share rebate, CTA will immediately send you a check representing the
nonchargeable amount (including the cushion) for CTA, NEA and the local chapter for the entire
2015-16 year. (If your local chapter is not adopting the presumption, they will send the check
representing the local nonchargeable expenses.) If you do not request arbitration, no further
adjustment will be made based on the outcome of the arbitration hearing, if any is held. CTA's
rebate procedure provides that when an individual requests a rebate in advance of this notice,
CTA will mail the rebate within 30 days of receipt of the request, or by October 31, whichever is
later.
If you request an arbitration hearing to challenge the calculations of the chargeable amount, you
will receive a notice of hearing from the American Arbitration Association. Note that any
adjustment the arbitrator may make on the actual chargeable percentage for NEA, CTA or the
local will be offset, to the extent possible, by the cushion referred to above.
From the start of this school year, CTA has been placing all CTA and NEA fair share fees
received into an interest-bearing escrow account. Local chapters have similarly escrowed all
local fees received. If you request a rebate, your fees will continue to be held in escrow until the
rebate is paid. If no rebate request is made, your fees will be released from escrow when the
time period for making the request has passed. If you request arbitration, fees remaining after
payment of the rebate will continue in escrow until completion of the arbitration and rebate
adjustments, if any.
Enclosed herewith are the following appendices:
(1)
2013-2014 audited financial statements of CTA, including:

a. Detailed description of CTA's calculation of
nonchargeable/chargeable expenses;
b. Description of the procedure used by CTA to calculate its
nonchargeable/chargeable expenditures (footnote 1 to
calculation);
c. Description of CTA's major budget categories (footnote 2 to
calculation);
d. Definition of nonchargeable and chargeable expenses
(footnotes 3 and 4 to calculation); and
e. Verification of nonchargeable/chargeable calculation.
(2)
NEA Fiscal Year 2013-14 Auditor's Report and Financial Statement,

including detailed breakdown of chargeable/nonchargeable
expenditures for 2013-14, basis.for that breakdown, and verification of
chargeable/nonchargeable calculation.
(3)
Document entitled "National Education Association Chargeable and

Nonchargeable Audited Expenditures for the 2013-14 School Year".
(4)
Local Association statement of chargeable/nonchargeable

Expenditures if provided to CTA by the Local. (Otherwise, available
directly from Local Association.) Note, again, that if the Local is
adopting the presumption, the Local will use CTA's chargeable
percentage, including the 3% cushion, regardless of the percentage indicated
in the local's statement.
It is our sincere hope that after reading these materials you will realize more fully the efforts
made by the Association on your behalf and will choose to become an active member. We
believe active membership is the best way to protect your employment interests and to promote
educational excellence.
U'
c::,...,__'-_ __
David B. Goldberg
CTA Secretary-Treasurer
DBG:DS:ln 2016hudson.af
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Membership t:.nrollment Form
CALlfORNIA
TEACHERS
ASSOC IATION
Members h ip Y ea r
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Great Public S chools for Every S tudent.
P L EASE PRINT USING U PPER CASE ONLY - USE B L ACK OR BLU E INK ONLY
Last four
digits SS#
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Provide previous or current Individual ID#
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L oca l Asso ciation
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P revio us D istrict
Fi rst
Name
Home
A d dress
C ity
Other
Email
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Em a il
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Zip
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State
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L ast
Name
MI D
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Bldg /Wo rk S ite
Is this y o ur prima ry p lace of emp loyment?
If n o ,
No
District/College
Su bject
I I
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Pos iti o n/Job Title
(See Reverse Side For Subject and Position Co des)
I I I
A designated portion of CTA dues is normally allocated to the

Association for Better Citizenship (CTA/ABC) , a bipartisan
political fund through which CTA provides financial support
for educational issues and CTA-endorsed candidates for
local and state offices.
Please fill in if you choose not to allocate a portion of
your dues to the CTA/ABC account and want all of your
dues to remain in the General Fund .
D ate of H ire
rn -rn
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Multi-Ethnic
America n India n/Ala ska Native
Ge n der
Asian
P lease fill in o ne, s ee bac k of form

0
Category 1
C ategory 2
A O
C ategory 3
A 0
C ateg o ry 4
rn -rn -11191 I
Fema le
Registered Voter
Male
Yes
No
African American
Hispanic
Marital Status
Caucas ian
Native Hawaiian/Pacific Islander
Other
0
0
Track (if applic a ble)[ D
ASSOC IATION
Membe rsh ip C ate g o ry
so
so
I
CTA Dues*
LEA Dues
NEA-Fund**
Suggested Amou nt $50
Sirthdate
Single
Married
AMOUN T
NEA Dues
The foll owing informatio n is optio nal and a fai lure to a nswe r it will in no way affect
you r membership statu s, rights, or benefits in NEA, CTA, or any of their affiliates.
Ethnicity:
I I
I I
For Office Use Only
Party: Affiliation
0
Democrat
Republican
Independent
Other
ANNUAL TOTAL
MONTHLY DEDUCTION
I
I
Pay Method
0
Check
Payroll Deduction
I hereby designate and authorize the CTA/NEA/Chapter to act as my exclusive representative, pursuant to California Gov'!. Sections 3540 et. Seq ., for the purposes of meeting and negotiating
on wages, hours, and other terms and conditions of employment.
You are hereby authorized and directed to deduct the above total sum or prorated sum where applicable in installments, including NEA-Fund**, from regular contract salary warrants due to me.
The Chapter, State and/or NEA professional dues portions of said amount may be increased or decreased by any of said organ izations without additional authorization from me. The total amount
so deducted shall be transmitted to the California Teachers Association or its designated agent and upon rem itting the deduction to the Ca lifornia Teachers Association, the school district has fu lfilled
its entire obligation and will be held harmless with regard thereto by the California Teachers Association. This authorization is to remain in force from year to year until revoked or revised by me in
writing. Dues payments are not deductible as charitable contributions for federal income tax purposes. Dues payments (or a portion) may be deductible as a miscellaneous itemized deduction.
*CTA dues includes a $20 voluntary contribution per year to help fund CTA advocacy efforts and to fund the CTA Foundation for Teaching and Learning which provides scholarships to members and
supports teacher-led efforts to improve public schools. To opt out of the voluntary contribution complete a Voluntary Contribution Election Form. Forms are available on MyCTA at www.cta .org , from your
local membership contact or via email at membership@cta.org .
**The National Education Association Fund for Children and Public Education (NEA Fund) collects voluntary contributions from Association members and uses these contributions for political purposes ,
including, but not limited to, making contributions to and expenditures on
of friends of public education who are candidates for federal office. Only U.S. citizens or lawful permanent residents may
contribute to The NEA Fund. Contributions to The NEA Fund are voluntary; making a contribution is neither a condition of employment nor membership in the Association, and members have the right
to refuse to contribute without suffering any reprisal. A member may contribute more or less than the suggested amount, or may contribute nothing at all, without it affecting his or her membership status,
rights , or benefits in NEA or any of Its affiliates.
Contributions or gifts to The NEA Fund are not deductible as charltable contributions for federal income tax purposes.
Federal law requires us to use our best efforts to collect and report the name, mailing address, occupation, and name of the employer for each individual whose contributions aggregate in excess of $200
in a calendar year. Federal law prohibits The NEA Fund from receiving donations from persons other than members of NEA and Its affiliates, and their immediate families. All donations from persons other
than members of NEA and Its affiliates, and their immediate families, will be returned forthwith.
Association Representative Signature
Date
Member Signature
rn -rn -12101
Date
INSTRUCTIONS: Enrollment forms are for enrolling NEW MEMBERS (Check or P/R Deduction) or changing members' payroll deductions. Member
completes enrollment form. Issue member the fourth copy of the form . Checks should be made payable to the local association. Distribute completed
forms according to designations at the bottom of each copy. Do not distribute district copy if member pays dues by check.
ACTIVE MEMBERSHIP CATEGORIES

Those eligible for membership in more than one school district shall be enrolled in their primary place of employment.
ACTIVE FULL TIME:
(Category 1)
ACTIVE PART TIME:

(Category 2 - A)
For those faculty whose teaching assignment is more than 60% of a normal assignment, except for faculty employed as preschool, head start, child care, adult education , and substitute teachers whose salaries are less than the minimum teacher
salary for the district in which they are employed.
For those faculty whose teaching assignment is greater than 1/3 but not more than 50% of a normal assignment.
(Category 2 - B)
For those faculty whose teaching assignment is greater than 50% but not more than 60% of a normal assignment, or faculty
employed as pre-school, head start, child care, adult education , and substitute teachers whose salary in the district in which
they are employed is less than the minimum salary paid regular teachers in such district.
(Category 3 - A)
For those faculty or substitutes whose teaching assignment is 25% or less than a normal assignment, including faculty on
unpaid leave.
(Category 3 - B)
For those faculty whose teaching assignment is greater than 25% but not more than 1/3 of a normal assignment or those
faculty employed in private higher educational institutions or the University of California for whom no representation by the
Association in employer-employee relations exists or is immediately contemplated .
(Category 4)
For those adult education and community college employees employed only on a part-time or hourly basis.
POSITIONS
(K-12)
ADM W
Administrator
Adult Educator
ADED
Classroom Teacher
CLTR
Coach
COCH
CNSL
Counselor
Health/Therapist Asst!Tech HTAT
Librarian/Media Spclist
Licensed Prac Nurse
Literacy Coach
Psychologist
Reading Specialist
Registered Nurse
ROTC
Social Worker
Special/Develop Ed
Speech/Hearing Therapist
Other
LIBR
LPNU
LITC
PSYC
READ
RGNU
ROTC
SCWR
SDSP
SHTH
OTHR
SUBJECTS
(K- 12)
Adult Basic Ed
Agric. & Natural Resources
Algebra
Art
Basic Ed Curriculum
Basic Skills & Remed Ed
Bilingual Ed
Biology
Business Ed
Business Math
Civics/Govern/Pol Sci
ADED
AGNR
ALGE
ARTS
BEDC
BSRE
BIE D
BI OL
BSED
BSMA
CGPS
Coaching
Communications
Com puter & Info Sci
Data Processing
Drive r's Ed
Early Child Develop
Earth Sci/Geology
Economics
Engl/Lang Arts
Foreign Lang & Lit
General Subjects
COCH
COMM
CICS
DAPR
OREO
ECDE
ESCG
ECON
ELAR
FLU
GSUB
Geography
Gifted & Talented
Health & Phys Ed
History
Home Economics
Industrial Arts
Journalism
Mathematics
Music
Physical Sciences
Reading
GEOG
GTAL
HEPE
HIST
HOME
INAR
JOUR
MATH
MUSI
PHSC
READ
ROTC
Social Stds/Social Sci
Sociology
Special/Develop Ed
Sp/Dev Ed Early Childhood
Speech & Drama
Speech & Hearing Impaired
Trade & Industrial Ed
Work Experience
Other
ROTC
ssss
SOC I
SDED
SDEC
SPDR
SHIM
TIED
WEXP
OTH R
POSITIONS
(Higher Ed)
Adjunct Faculty
Adm inistrator
Assoc Professor
Counselor
Instructor
Lecturer
ADJF
ADMN
ACPR
Professor
Other
COLIN
INST
LECT
PROF
OTHR
SUBJ ECTS
(H igher Ed)
Area, Ethnic & Cul Stds
Agriculture
Architecture
Biological Science
Business
Communications
Computer & Info Sci
Criminal Justice
Education
Engineering
English Lang & Lit
* Directly hires, evaluates,
AECS
AGRI
ARC H
BI SC
BUSN
COMM
CISC
CRJU
EDUC
ENGR
ENLL
Envi ronmenta l Studies

Fine & App lied Arts
Foreign Lang & Lit
Forestry
Geography
Health Sciences
History
Home Economics
Humanities
Industrial Arts
Law Enforcement
disciplines or dismisses.
ENVS
FAAA
FLU
FORE
GEOG
HESC
HI ST
HOME
HUMA
INAR
LAEN
Law & Legal Studies

Liberal Arts & Sciences
Library Science
Marketing
Mathematics
Medical Science
Military Sci!Tech
Natural Science
Parks & Recreation
Philosophy
Physical Science
LALS
LIAS
LBSC
MARK
MATH
MEDS
MIST
NATS
PREC
PHIL
PHSC
Political Science
Psychology
Public Adm in & Srvcs
Religion & Theology
ROTC
Science Technology
Social Sciences
Visual & Perform ing Arts
Other
POLS
PSYC
PADS
RETH
ROTC
SCTE
sosc
VPAR
OTHR
2015-16
FAIR SHARE REBATE I ARBITRATION REQUEST FORM
City/State/Zip _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
Last 4 Digits of Social Security Number_ _ _ _ _ _ _ _ _ _ _ _ _ __
School District
------------------------
Local Association _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __
(Full Local Name)
I request a rebate of the nonchargeable portion of my fees.

I wish to challenge the following in an arbitration hearing
(check only those calculations you actually wish to challenge):
D
D
D
D
Local Association's calculation

CTA's calculation
NEA's calculation
Initial here if you have no objection to providing your name and address to
any other Fee Objector who seeks the identities of other Fee Objectors for
purposes related to the upcoming arbitration case. Such a requesting Fee
Objector is required to agree in writing in advance that no party or
representative of any party in this case shall use, or permit or enable the use
of, the names and addresses of Fee Objectors in these proceedings for any
purpose not immediately and directly related to this arbitration.
Send completed form to:

Fair Share Rebate
CTA Membership Accounting
P 0 Box 4178
Burlingame CA 94011-4178
FOR OFFICE USE ONLY
lndiv TD# --...:.:.-----..,----=-....:._
PR Ded
$_ _ _ _ _ _ __
Category ---,,...-----,,..--Date:
Initial:
California Teachers
Association
Combined Financial' Statements for the
Summary
Year Ended August 31, 2014,
and Detail Schedules of Nonchargeable and
Chargeable Expenditures of Agency Fees for
2013-2014, and Independent Auditors' Report'
CALIFORNIA TEACHERS ASSOCIATION

TABLE OF CONTENTS
INDEPENDENT AUDITORS' REPORT
1-2
COMBINED FINANCIAL STATEMENTS AS OF AND

FOR THE YEAR ENDED AUGUST 31, 2014:
Statement of Financial Position
Statement of Activities and Changes in Net Assets
Statement of Cash Flows
Notes to Combined Financial Statements

SUPPLEMENTAL SUMMARY FOR 2013-2014:
Summary ofNonchargeable and Chargeable Expenditures of Agency Fees for 2013-2014
Supplemental Detail of Nonchargeable and Chargeable Expenditures of Agency Fees
for 2012-2013
Notes to the Summary and Supplemental Detail Schedules of Nonchargeable
and Chargeable Expenditures of Agency Fees for 2013-2014 by Major Budget Category
6-13
14
15
I 6-27
28-40
Deloitte.
Deloltte & Touche LLP

555 Mission Street
Suite 1400
San Francisco. CA 94105
USA
Tel: +1 415 783 4000

www.deloitte.com
INDEPENDENT AUDITORS' REPORT
To the Board of Directors of

California Teachers Association:
We have audited the accompanying combined statements of financial position of the California Teachers
Association and its affiliates (collectively, the "Association"), a California not-for-profit corporation, all
of which are under common governance and management, as of August 31, 2014, and the related
combined statements of activities and changes in net assets and of cash flows for the year then ended, and
the related notes to the combined financial statements.
Management's Responsibility for the Combined Financial Statements
Management is responsible for the preparation and fair presentation of these combined 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 combined 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 combined financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in theUnited States of
America. Those standards require that we plan and perform tlie audit to obtain reasonable assurance about
whether the combined financial statements are free of material misstatement.
An audit involves perfonning procedures to obtain audit evidence about the amounts and disclosures in
the combined financial statements. The procedures selected depend on the auditor's judgment, including
the assessment of the risks of material misstatement of the combined financial statements, whether due to
fraud or error. In making those risk assessments, the auditor considers internal control relevant to the
companies' preparation and fair presentation of the combined 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 Association's internal control. Accordingly, we express rio 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 combined financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinion.
Member of
Dl!lottte Touche Tolvnatsu Umlted
Opinion
In our opinion, the combined financial statements referred to above present fairly, in all material respects,
the financial position of the Association as of August 31, 2014, and the combined changes in its net assets
and its combined cash flows for the year then ended in accordance with accounting principles generally
accepted in the United States of America.
Report on Supplemental Schedules

Our audits were conducted for the purpose of forming an opinion on the combined financial statements as
a whole. The supplemental schedules listed in the table of contents are presented for the purpose of
additional analysis and are not a required part of the combined financial statements. These schedules are
the responsibility of the Association's management and were derived from and relate directly to the
underlying accounting and other records used to prepare the combined financial statements. Such
schedules have been subjected to the auditing proc$ldures applied in our audits of the combined financial
statements and certain additional procedures, including comparing and reconciling such schedules directly
accounting and other records used to prepare the combined financial statements or to the
to the
combined financial statements themselves, and other additional procedures in accordance with auditing
standards generally accepted in the United States of America. In our opinion, such schedules are fairly
stated in all material respects in relation to the combined financial statements as a whole.
December 22, 2014, except as to the summary and detail schedules of nonchargeable and chargeable
expenditures of agency fees and related notes, for which the date is August 13, 2015.
'
-2-

COMBINED STATEMENT OF FINANCIAL POSITION
AS OF AUGUST 31, 2014
ASSETS
CURRENT ASSETS:
Cash and cash equivalents
Short-term investments
Membership dues and accounts receivable-net
Supplies, deposits, and prepaid expenses
$ 48,441,397
116,357,748
5, 123,676
1,439,631
Total current assets
171,362,452
PROPERTY AND EQUIPMENT-Net
50,500,048
LONG-TERM INVESTMENTS
20,993,089
$ 242,855,589
TOTAL
LIABILITIES AND NET ASSETS

CURRENT LIABILITIES:
Accounts payable and accrued expenses
Accrued payroll and related liabilities
Dues payable to affiliated organizations
Deferred membership dues income
Current portion of long-term obligations
9,923,383
2,014,768
17,467,321
663,256
6,308,971
36,377,699
Total current liabilities

LONG-TERM OBLIGA T10NS-Less current portion-accrued vacation,
sick leave, and other related costs
26,796,124
26,796,124
Total long-term obligations

NET ASSETS:
Unrestricted:
Undesignated
Designated
146,322,373
30,375,425
176,697 ,798
Total unrestricted
2,983,968
Temporarily restricted
179,681,766
Total net assets
$ 242,855,589
TOTAL
See notes to combined financial statements.
3-

COMBINED STATEMENT OF ACTIVITIES AND CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2014
UNRESTRICTED NET ASSETS:

Revenues:
Membership dues and fees
Investment income-net
Other
$175,360,616
16,942,784
6,022,544
Total revenues
198,325,944
Expenses:
Statewide programs
Local service delivery
Support services
Other
51,779,384
74,785,162
24,708,354
12,535,780
Total expenses
163,808,680
Net assets released from restriction
94442
Increase in unrestricted net assets
34,611,706
TEMPORARILY RESTRICTED NET ASSETS:

Contributions
Interest and investment income-net
Net assets released from restriction
87,459
271,088
(94,442) .
Increase in temporarily restricted net assets
264,105
INCREASE IN NET ASSETS
34,875,811
NET ASSETS-Beginning of year
144,805,955
NET ASSETS-End of year
$179,681,766
-4-

COMBINED STATEMENT OF CASH FLOWS
CASH FLOWS FROM OPERATING ACTIVITIES:

Increase in net assets
Adjustments to reconcile increase in net assets to net cash
provided by operating activities:
Depreciation
Net realized and unrealized gain on investments
Gain on disposal of property and equipment
Changes in operating assets and liabilities:
Membership 4ues and accounts receivable
Supplies, deposits, and prepaid expenses
Accounts payable and accrued expenses
Accrued payroll and related liabilities
Dues payable to affiliated organizations
Deferred membership dues income
Accrued vacation, sick leave, and other related costs
$ 34,875,811
2,464,151
(14,203,212)
(468,661)
(100,891)
64,516
(282,714)
109,794 .
453,494
(55,287)
382,476
Net cash provided by operating activities
23,239,477
CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of investments
Sales of investments
Purchase and construction of property and equipment
Proceeds from sale of property and equipment
(62,149,410)
35,271,744
(1,802,947)
699,307
Net cash used in investing activities
(27 ,981,306)
CASH FLOWS FROM FINANCING ACTIVITIES-Payments

on capital lease obligations
(5,635)
NET DECREASE IN CASH AND CASH EQUIVALENTS
(4,747,464)
CASH AND CASH EQUIVALENTS-Beginning of year
53,188,861
CASH AND CASH EQUIVALENTS-End of year
$ 48,441,397
SUPPLEMENTAL DISCLOSURE OF CASH FLOW-Construction in

progress included in accounts payable
-5-
575,422

NOTES TO COMBINED FINANCIAL STATEMENTS
AS OF AND FOR THE YEAR ENDED AUGUST 31, 2014
1.
ORGANIZATION
The California Teachers Association (the "Association" or CT A) is a California not-for-profit
corporation organized to advance the interests of the teaching profession and to promote and imprqve
public education in the state. The Association has common governance and management over California
Teachers Association Institute for Teaching (the "Institute"), an affiliate created in 1968 that provides
educational programs. The Association also has common governance and management over California
Teachers Association Disaster Relief Fund (the "Fund"), which was created in 2002 to provide disaster
relief assistance for members impacted by natural and other disasters, and the California Teachers
Association Foundation for Teaching and Leaming'(the "Foundation"), which was created in 2008 to
support high-quality teaching and high-quality public schools in the state of California, to make grants
of scholarships to qualified students, to provide disaster relief, and to perform all things incidental to or
appropriate for the achievement of said specific purposes. The Association is the sole member of the
California Teachers Association Voluntary Retirement Plans for Educators LLC (the "LLC"), a limited
liability company, created in 2012 to provide retirement savings plan $ervices to CTA members.
The accompanying combined financial statements have been prepared on the accrual basis of accounting
in accordance witl;l accounting principles generally accepted in the United States of America ("generally
accepted accounting principles"). Management has evaluated subsequent events during the period from
August 31, 2014 to December 22, 201.4, the date the combined financial statements were available to be
issued.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING J>OLICIES

Principles of Combination-The accompanying combined financial statements include the accounts of
the Associatio9 and its affiliates, the Institute, the Fund, the Foundation, and the LLC. All intercompany
balances and transactions have been eliminated.
Use of Estimates- The preparation of combined financial statements in confonnity with generally
accepte.d accounting principles 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 combined financial statements and tne reported amounts of revenues and expenses during the
reporting period. Actual results could differ from those estimates.
Revenues and Expenses-Membership dues are recognized as earned on the accrual basis of
accounting. Dues received prior to being earned are reported as deferred income untii they are earned.
Investment income-net consists principally of interest, dividends, both realized and unrealized gains,
and losses on investments. Other revenues consist of payments from affiliates, rental income fees,
advertising and other reimbursements.
Expenses are recognized when incurred on the accrual basis of accounting.
Cash and Cash Equivalents-The Association considers all highly liquid investments with a maturity
of three months or less when purchased to be cash equivalents. Financial instruments that potentially
subject the Association to concentrations of credit risk are primarily cash equivalents, short-term
investments, membership dues, and accounts receivable.
-6-
Fair Value of Financial Instruments-The carrying amounts of the Association's financial

instruments, including cash and cash equivalents, membership dues and accounts receivable, supplies,
deposits, and prepaid expenses, accounts payable, accrued liabilities, and other current liabilities,
approximate fair value due to their relatively short maturities.
Investments-Investments consist of marketable equity securities, treasury bills, corporate and
government bonds; and liquid asset funds. Investments are stated at fair market value or at amounts
approximating fair market value. Fair market value of marketable equity securities is based upon the last
quoted market price on the last business day of the fiscal year. Realized gains and losses from
investment transactions are calculated using the weighted-average method.
Investments in fixed-income securities that mature over one year from the date of the combined
' statements of financial position are classified as long-term investments.
Membership Dues--Membership dues and accounts receivable expose the Association to certain credit
risks. The Association manages its risk by regularly reviewing its accounts and contracts and by
providing allowances for uncollectible accounts.
The Association collects membership dues and fees on behalf of the National Education Association and
others and periodically remits these dues and fees to these organizations. Such dues and fees are not
recognized as membership revenue but instead reported as dues payable to affiliated organizations.
Property and Equipment-Property and equ.ipment are carried at cost, net of accumulated depreciation
and amortization. Provisions for depreciation and amortization of property and equipment are computed
using the straight-line method over estimated useful lives as follows:
15-40 years
3-10 years
Life of lease or estimated useful life,
whithever is shorter
Buildings
Furniture and equipment
Leasehold improvements
Accrued Vacation, Sick Leave, and Other Related Costs-Accrued vacation, sick leave, and other
related costs are accrued as earned. Such costs are allocated between current and long-tenn liabilities
based on estimates of settlement dates. Upon tennination, employees are entitled to compensation for
accrued vacation. AH employees are allowed to carry over balances of unused sick leave to the following
years. Upon termination, unused sick leave is generally forfeited. If an employee retires, accrued sick
leave is credited to years of service for purposes of determining retirement benefits. Eligible employees
and directors accrue postemployment benefits paid upon termination. Such accruals are estimated based
on employment agreement tenns, years of service, estimated forfeitures, and estimated salary increases.
The Association participates in a multiemployer pension plari (the "Plan"). The Association is
contractually obligated to make lump-sum payments to the Plan for additional service credit for
employees who retire with unused earned sick days. The additional service credit is based on fonnulas in
the respective employment contracts.
Income Taxes-The Association, the Institute, the Fund, and the Foundation are entities described in
the Internal Revenue Code (IRC) Section 501(c). Consequently, these entities are generally exempt from
federal and state income taxes under IRC Section SOl(a) and the corresponding California statute
whereby only unrelated business income, as defined by Section 512(a)(l) of the IRC, is subject to
federal income tax. The LLC is classified as a single-member disregarded entity and its activities are
included in the Association's federal tax return. The Association has no liability for uncertain tax
positions..
-7-
Net Assets-The Association classifies its net assets as unrestricted and temporarily restricted.
Temporarily Restricted-Net assets subject to externally imposed restrictions that can be fulfilled by the
actions of the Association or by the passage. of time.
Unrestricted-Net assets are not subject to externally imposed restrictions. Unrestricted net assets may
be designated for use by the board of directors of the Association. Such designations limit the area of
Association's operations for which expenditures of designated net assets may be made.
3.
INVESTMENTS
FASB Accounting Standards
(ASC) 820, Fair Value Measurement and Disclosures, a
framework for measuring fair value, establishes a fair value hierarchy based on the quality of inputs used
to measure fair value and enhances disclosure requirements for fair value measurements. The three-level
fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or
liabilities (Level 1}, securities not traded on an active market but for which observable market inputs are
readily available (Level 2), and the lowest priority to unobservable inputs (Level 3).
-8-
The following table summarizes the Association's investments as of August 31, 2014, under the
ASC 820 fair value hierarchy levels:
Fair Value Measurements at August 31 1 2014

Level1
Level2
Level3
Total
Cash equivalents
Mutual funds:
Blend funds
Equity funds
Fixed-income funds
Commodity funds
Other
Common stocks:
Basic materials
Capital goods
Consumer goods
Consumer services
Energy
Financial services
Health care
Industrial materials
Technology
Telecommunications
Utilities
Other
Preferred securities
U.S. government bonds
Corporate bonds:
Domestic corporate
obligations
International corporate
obligations
Government securities
Total
1,401,387
1,401,387
2,081,888
59,086,730
24,807,150
717,581
902,953
2,081,888
59,086,730
24,807,150
717,581
902,953
1,209,190
375,262
1,648,153
3,856,566
2,041,028
4,982,266
2,404,761
1,888,649
4,244,325
363,509
152,596
243,713
4,928,806
4,209,344
1,209,190
375,262
1,648,153
3,856,566
2,041,028
4,982,266
2,404,761
1,888,649
4,244,325
363,509
152,596
243,713
4,928,806
4,209,344
16,555,624
16,555,624
541
543,080
107, 122
. 543,080
107,663
$115,935,667
$21,415,170
$ 137 ,350,837
Level 1 valuations are based on quoted prices in active markets for identical assets or liabilities that the
prices in markets that are
Association has the ability to access. Level 2 valuations are based on
not active for which all significant inputs are observable, either direcdy or indirectly. Level 3 valuations
are based on inputs that are unobservable and significant to the overall fair value measurement.
The investment income-net in the accompanying combined statements of activities and changes in net
assets for the year ended August 31, 2014, is summarized as follows:
Interest and dividends
Net unrealized gain
Net realized gain
$ 2,999,294
9,438,390
4,505,1.00
Investment income-net
$16,942,784
-9-
4.
MEMBERSHIP DUES AND ACCOUNTS RECEIVABLE

Membership dues and accounts receivable as of August 31, 2014, consisted of the following:
$3,679,671
1,977,655
Membership dues and fees

Accounts receivable
5,657,326
/
(53'3,650)
Less allowance for doubtful accounts
$5,123,676
Membership dues and accounts receivable-net
5.
PROPERTY AND EQUIPMENT

Property and equipment
of August 31, 2014, consisted of the following:
Property and equipment:

Land
Buildings and leasehold improvements

Furniture and equipment
Construction in progress
$ .8,932,447
60,055,944
13,948,995
575,422
Total property and equipment
83,512,808
(33,012,760)
Less accumulated depreciation
6.
Property and equipment-net
$ 50,500,048
Net book value of assets under capital leases
EMPLOYEE BENEFIT PLANS

The Association provides retirement benefits to substantially all employees through participation in a
multiemployer defined benefit retirement plan. In addition, under a multiemployer health and welfare
plan, the Association provides health insurance benefits to.substantially all employees on a defined
contribution basis and to certain retired employees on a defined benefit basis. Each plan is administered
by a joint board of trustees. Contributions to these plans are determined by provisions of negotiated
labor contracts.
The Association's participation in the multiemployer defined benefit retirement plan (the "Plan") for the
year ended August 31, 2014, is outlined in the table below.
Pension Fund
California Teachers
Association Employees'
Retirement Benefits Plan
The Plan was established

eligible participants.
EIN/Penslon
Plan Number
68-0427229-001
Pension Protection Act

Zone Status for the
Years Ended December 31,
2013
2012
Green
Green
Contributions by the
Association for the
Years Ended
August 31,
2014
$17 ,438,525
Expiration Date
of Collectlva
Surcharge
Bargaining
Imposed
Agreement
No
August 31, 2017
1, 1999 to provide retirement, death, and disability benefits for
- 10-
The Plan had net assets available for benefits of $303,728,877 as of December 31, 2013. Actuarial
present value of accumulated plan benefits as of December 31, 2013 and 2012 were $381,534,263 . The
Plan received contributions of $20,382,343 for the year ended December 31, 2013.
The Association's contributions shown in the table above represent more than 5 % of the totai
contributions to the Plan for Plan year ended December 31, 2013. The Pension Protection Act Zone
Status is based on information that the Association received from the Plan and is certified by the Plan's
actuary. Among other factors, plans in the red zone are generally less than 65% funded, plans in the
yellow zone are less than 80% funded, and plans in the green zone are at least 80% funded. The
Association accounted for approximately 86% of total employer contributions to the Plan for the year
ended December 31, 2013. There have been no significant changes that affect the comparability of
employer contributions. There have been no' funding improvement or rehabilitation plans. implemented
or pending. The risk difference of participation in a multiemployer pension plan compared to a single
employer plan is that companies that remain in the Plan can face an increased burden as other companies
drop out or are unable to make required contributions.
The Association participates in a multiemployer health and welfare plan which provides hospital,
medical, dental, prescription drug, vision care, and psychiatric care to all eligible participants. The
Association's contributions to the health and welfare plan were $16,560,220 for the year ended
August 31, 2014.
The Association maintains a 401(k) Retirement Plan (the "40 J(k) Plan") covering substantially all fulltime employees. The Association contributes annually to the 401 (k) Plan based on the 40 I (k) Plan's
provisions in accordance with employment agreements. The Association's contributions to the
40 l(k) Plan were .$2,5 85 ,083 for the year ended August 31, 2014.
7.
RELATED-PARTY TRANSACTION
The Association is the Plan's sponsor for the Economic Benefits Trust (EBT), which provides certain
welfare benefits to members of the Association . The senior management.of the Association serves as the
trustees of EBT. The Association and EBT have entered into an expense reimbursement agreement in
which the, Association provides certain administrative services and EBT reimburses the Association for
its <:Jirect expenses. The expenses incurred on behalf of EBT were $1 ,385,023 during 2014.
8.
DEBT FACILITIES
The Association has a revolving loan agreement with Union Bank in the amount of $30,000,000. Interest
is payable monthly at the London InterBank Offered Rate (LIBOR), plus 1. 15%. The loan agreement is
collateralized by certain properties owned by the Association. The agreement also provides for a standby
was no balance outstanding on the revolving
letter of credit for $1,000,000. At August 31, 2014,
loan. The agreement expires on October 1, 2020.
The Association is in compliance with the financial covenants of its revolving loan agreements.
The Association obtained a line of credit from UBS Bank in the amount of $40,000,000 in December
2011. Interest is payable monthly at LIBOR, plus 1.00%. At August 31, 2014, there was no balance
1
outstanding on this line of credit.
- 11 -
9.
LEASES
The Association occupies certain
throughout California under rental agreements expiring at
various dates through fiscal year 2017. Substantially, all leases provide for minimum annual rentals with
escalation clauses for specified cost increases.
For the year ended August 31, 2014, gross rent expense amounted to approximately $1,580,858, and
rental income, principally from affiliated organizations, totaled approximately $236,337. The future
minimum rental commitments for all noncancelable operating leases having initial terms in excess of
one year as of August 31, 2014, are as follows:
Rental
Commitments
Sublease
Income
Net Rental
Commitments
2015
2016
2017
2018
Thereafter
$1,349,673
771,050
362,528
9,603
$ (22,012)
$1,327,661
771,050
362,528
9,603
Total
$2,492,854
$ (22,012)
$2,470,842
10. DESIGNATED NET ASSETS

The following funds have been designated by the Association's board of directors for specific purposes:
Debt Sen}ice Fund-This fund was established for the purpose of debt servicing and reduction.
Political Allocation Fund-This fund serves as a funding structure through which the Association's
members may give support for certain state and local issues and candidates for office.
Public Information Program Fund ("Media Fund'')-The purpose of this fund is to provide funding for
advertisements to educate the public about the achievements, the problems, and the needs of public
education from preschool through graduate school.
Initiative Fund- This fund was established for the purpose of participating in the support of or
opposition to certain ballot measures.
Advocacy Fund-The purpose of this fund is to promote policies to improve and fight back attacks on
public education.
Designated unrestricted net assets as of August 31, 2014, are summarized below:
Increase (Decrease)
in Designated
Net Assets
During the Year
Debt Service Fund

Political Allocation Fund
Media Fund
Initiative Fund
Advocacy Fund
Total
$9,164,707
- 12 -
98,834
(238,995)
1,108,944
7,782,261
413,663
Balance at
August 31,
2014
$ 5,481,203
378,113
4,101,597
8,790,502
11,624,010
$30,375,425
11. TEMPORARILY RESTRICTED NET ASSETS

Temporarily Restricted Net Assets-Temporarily restricted net assets are restricted for the following
purposes:
Disaster Relief Fund-The Fund provides financial assistance to the Association members who have
experienced losses due to disasters in California.
Temporarily restricted net assets as of August 31, 2014, are summarized as follows:
Disaster Relief Fund
$2,983,968
. $ 2,983,968
Total
Net assets were released from donor restrictions by incurring expenses satisfying the restricted purposes
or by occurrence of other events specified by the donors during the year ended August 31, 2014, as
follows:
Purpose restrictions accomplished:
Disaster Relief Fund
Institute for teaching
$94,442
$69,133
28,330
Total
$94,442
$97,463
12. COMMITMENTS AND CONTINGENCIES

In the ordinary course of business, the Association is a party to claims and legal actions by members,
vendors, and others. The Association's policy is to accrue for amounts related to these claims and legal
actions if it is probable that a liability has been incurred and the amount of the liability can be reasonably
estimated. The combined financial statements reflect any liabilities that meet the policy described above.
After consulting with legal counsel, the Association's management is of the opinion that any liability
that may ultimately result cif claims or legal actions will not have a material effect on the combined
financial position or results of operations of the Association.
******
- 13 -
SUPPLEMENTAL SCHEDULES
- 14 -

SUMMARY OF NONCHARGEABLE AND CHARGEABLE
EXPENDITURES OF AGENCY FEES FOR 2013-2014 (NOTE 1)
Budget Category
(Note 2)
Governance
Governmental Relations
Association for Better Citizenship
Legal Services
Regional Services
Negotiations and Organizational Development
Training, Information & Development
Communications
Human Rights
Instruction and Professional Development
Accounting
Business Services
Central Services
Conference Coordination Center
Governance Support
Human Resources Management
Integrated Systems-and Strategies
Management
Occupancy/Properties
Capital Expenditures/Depreciation
Debt Reduction and Service
Crisis Assistance Fund
Advocacy IF oundation
Media Advertising Fund
Initiative Fund
Expenditures
.:<
Subtotal
9,616,887
7,390,925
6,044,793
9,947.342
68,888,561
6,335,038
2.177,701
5,984,635
2,338,420
2,552,624
6,085,849
835, 127
3,029,590
2,261 .341
2,161 ,590
1,690.453
3,831,051
4,540,421
5,382,932
3,228,684
87,289
205,003
4,701.049
2,788,880
1,584.543
163,690.728
Non.chargeable
(Note 3)
493,955
7,390,925
6,044,793
.
4,593,984
123,231
1,480.726
2,418,678
1,200,977
86,958
960,910
110,240
3,454
475,800
444,610
273,025
4,701,049
2,788,880
1,584.543
41 ,607.363
See notes to the summary and supplemental detail schedule of
!!1690,728
'
..
Chargeable
(Note 4)
5. 1 % $ 7,702,813
100.0 %
100.0 %
64.6 %
3,516,717
67.0%
64,294,577
1.9 %
6,211,807
68.0 %
696,975
40.4 %
3,565,957
51.4 %
1,137,443
3.4 %
2,465,666
6,085,849
835,127
3,029,590
42.5 %
1.300,431
1,731 ,433
5. 1 %
1,690,453
1.0 %
3,827,597
908,738
10.5 %
8.3 %
4,938,322
8.5 %
2.955.659
87,289
205,003
100.0%
100.0 %
100.0 %
26.2 %
117,187;446
1,282,731
3,613,188
$42,890,094
$ 120,800,634
Allocable expenditures
TOTAL NONCHARGEABLE AND
CHARGEABLE EXPENDITURES
FINAL NONCHARGEABLE ANI!>
CHARGEABLE PERCENTAGES
26.2 %
and chargeable expenditures of agency fees.
- 15 -
Allocable
80.1 % $1,420,119
35.4 %
93.3 %
98.1 %
32.0 %
59.6 %
48.6 %
96.6 %
100.0 %
100.0%
100.0 %
57.5 %
80.1 %
100.0 %
99.9 %
20.0 %
91.7 %
91.5 %
100.0 %
100.0 %
73.8 %
319,917
14:8%
3,155,883
69.5 %
4,895,919
$4,895,919
73.8 %
14.8%

SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE
EXPENDITURES OF AGENCY FEES FOR 2013-2014
Governance
Total
Expenses
DEPARTMENTAL PROGRAMS:
1.0 State Council of Education
2.0 NEA Convention
3.0 Advisory Groups
4.0 Board of Directors
5.0 Executive Officers
$2,748,992
728,542
609,407
4,109,827
1,420,119
GOVERNANCE
$ 9,616,887
DEPARTMENTAL
NONCHARGEABLE,
CHARGEABLE AND
ALLOCABLE PERCENTAGES
Nonchargeable
,,.
1 <1
.:.r1
$ 137,450
Chargeable
5.0 % $2,611,542
728,542
58.5 %
252,902
4,109,827
356,505
Allocable
o/o
95.0 % $
41.5 %
- 1,420,119
$493,955
$7,702,813
5.1 %
$1,420,119
80.1 %
See notes to the summary and supplemental detail schedule of nonchargeable and, chargeable expenditures of agency fees.
- 16 -
14.8 %
(Continued)

Legal Services
Total
Expenses
Payroll (Note 5)
Staff travel and expenses (Note 6)
Office expenses (Note 6)
Law library
Departmental programs:
1.1 Legal Services
Public Employment Relations Board
Arbitration
Other Legal Services
1.3 Group Legal Services Attorneys Meeting
1.4 Commission on Professional Competency Panel
2.1 Kate Frank/DuShaae Unified Legal Services
Program (Note 8)
$ 4,851,655
238,732
43,716
77,994
LEGAL SERVICES
$ 9,947,342
Nonchargeable
815,078
40,107
7,344
o/o
Chargeable
16.8 % $4,036,577
16.8 %
198,625
16.8 %
36,372
77,994
o/o
83.2 %
. 83.2 %
83.2 %
21,881
39,295
8,293,735
25,199
16,969
1,935
13,252
8,293,735
25,199
16,969
8.8 %
33.7 %
19,946
26,043
91.2 %
66.3 %
(3,661,834)
(2,782,994)
76.0%
(878,840)
24.0 %
DEPARTMENTAL NONCHARGEABLE
AND CHARGEABLE PERCENTAGES
$ 6,430,625
$3,516,717
64.6 %
See notes to the summary and supplemental detail schedule of nonchargeable arid chargeable expenditures of agency fees.
- 17 -
35.4 %
(Continued)

Regional Services
Total
Expenses
Payroll (Note 5)
Regional services programs:
1.1 Service Center Councils
2.1 UniServ (Note 9)
3.1 Chapter Liability Insurance
4.1 Regional Conferences
_4.2 Regional Training
5.1 UTLA Consulting (Note 10)
5.2 CFA Consulting (Note 10)
6.1 Internal Organizing
6.2 Ethnic Minority Early Identification. Development Program
6.3 Urban Charter Scl)ool Organizing Project
Community outreach programs:
7 .1 Community Based Public Engagement Meetings
8.1 Community
and Events
8.2 Promotional Materials
8.3 Community Based Organizing
$ 34,066,696
2,388,630
594,995
REGIONAL SERVICES
$ 68,888,561
1,279,772
18,470,417
173,444
188,711
50,926
10,814,794
365,000
304,608
39,688
Nonchargeable
$1,873,668
131,375
32,725
-;
I
101,102
1,108,225
43,781
3,778
1,038,220
110,230
so,ooo
50,000
14,123
25,252
13,856
47,649
14,123
25,252
13,856
47,649
o/o
o/o
Chargeable
5.5 % $ 32,193,028
5.5 %
2,257,255
5.5 %
562,270
7.9 %
6.0 %
23.2
7.4
9.6
30.2
%
%
%
%
1,178,670
17,362,192
173,444
144,930
47,148
9,776,574
254,770
304,608
39,688
94.5 %
94.5 %
94.5 %
92.1 %
94.0 %
.,
...
76.8
92.6
90.4
69.8
%
%
%
%
'
$ 64,294,577
DEPARTMENTAL NONCHARGEABLE
AND CHARGEABLE PERCENTAGES
6.7 %
See notes to the summary and supplemental detail schedule of nonchargeable and chargeable expenditures of agency fees.
- 18 -
93.3 %
(Continued)

Negotiations and Organizational

Development
Payroll (Note 5)
1.2 Negotiations Database and Contract Reference Manual
1.3 Bargaining Strategy and Implementation
1.4 Publications
1.5 Salary and Benefits Data
2.1 Staff Training
2.2 Multimedia Resources and Materials
NEGOTIATIONS AND
ORGANIZATIONAL DEVELOPMENT
Total
Expenses
$5,499,539
519,502
75,460
96,000
29,080
22,392
27,500
59,063
6,502
$6,335,038
DEPARTMENT NONCHARGEABLE AND

CHARGEABLE PERCENTAGE
Nonchargeable
$ 82,493
7,793
1,132
1.5 % $5,417,046
511,709
1.5 %
1.5 %
74,328
20,000
68.8 %
11,813
20.0 %
,lg1231
Chargeable
96,000
9,080
22,392
27,500
47,250
6,502
98.5 %
98.5 %
98.5 %
31.2 %
80.0 %
$6,211,807
1.9 %
- 19-
98.1 %
(Continued)

SUPPLEM.ENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE
Training, Information & Development
Total
Expenses
Nonchargeable
Payroll (Note 5)
1.1 Multimedia Development
2.1 Organizing and Communications Projects Assistance
3.1 Polling
$1,777,785
126,345
29,360
$1,191,l lp
84,651
19,671
7,557
25,000
211,654
6,834
25,000
153,454
TRAINING, INFORMATION & DEVELOPMENT
$ 2,177,701
$1,480,726
DEPARTMENTAL NONCHARGEABLE AND

Chargeable
67 .0 % $ 586,669
67.0 %
41,694
67.0 %
9,689
33.0 %
33.0 %
33.0 %
90.4 %
723
9.6 %
72.5 %
58,200
27.5 %
$696,975
68.0 %
- 20 -
32.0 %
(Continued)

Total
Expenses
Communications
Payroll (Note 5)
1.1 Information Services/Media Contact
1.2 John Swett Awards
1.3 Gold Awards
- ...
2.1 California Educator (Note 7)
2.2 California Community College Advocate (Note 7)
2.3 Pocket Calendar
2.4 Organizational Handbook
::PT "
2.6 Special Publications
2. 7 Communications Awards
2.9 Web Page
W/i!.j;'Ji:l!
.
)..!! .
2.10 Web Site Development
3.1 Membership Promotion
3.2 Information Promotion
-
r,' :;:--.
COMMUNICATIONS
....
...
$3,853,770
281,541
47,759
$1,718,781
125,567
21,301
56,666
28,629
1,395
1,347,632
.J 2,953
191,229
5,845
, -14,879
1,902
...,. 86,674
.
30,064
63,557
50,140
33,261
28,629
1,395
235,836
3,109
101,229
..,_
f . ..
--
..
$5,984,635

Nonchargeable
1U
...-
....
1,902
25,222
' 8,749
63,557
50,140
$2,418,678
ti('
44.6 % $ 2,134,989
44.6 %
155,974
44.6 %
26,458
5.5.4 %
55.4 %
55.4 %
58.7 %
23,405
41.3 %
17.5 %
24.0 %
1,ll 1,796
9,844
:;
....
- .
't
29.1 %
29.1 %
,.,
'
t_..,:
,.,_;T
82.5 %
76.0 %
5,845
14,879
61,452
2131500.0%
70.9 %
70.9 %
$3,565,957
40.4 %
- 21 -
Chargeable
59.6 %
(Continued)

'
Human Rights
Total
Expenses
Payroll (Note 5)
Staff travel & expenses (Note 6)
I .I Human Rights Awards
2.1 11Training and Leadership Development
3.1 High-Risk: Student and Teacher
3.2 Contact Program- Human Rights, Women, and
GLBT Issues
3.3 Minority Teacher Recruitment Program
3.4 Unconscious Bias Training
3.5 Ethnic Minority Representation Program
-4.1 Student CTA
$1,850,87I
I 8 I ,478
32,156
HUMAN RIGHTS
$2,338,420
5,444
7,813
7,662
20,228
' 18,134
5,436
8,310
200,888

Nonchargeable
875,462
85,839
15,210
....._
47.3 % $ 975,409
47.3 %
95.,639
47.3 %
10,946
"
52.7 %
52.7 %
52.7 %
5,444
7,813
7,662
18,134
20,228
-'
..
5,436
8,310
.i
200,888
$1,200,977
$1,I37,443
51.4 %
See notes to the summary and supplemental detail schedule of nonchargeable and chargeable expenditures of agency fees .
- 22 -
Chargeable
48.6 %
(Continued)

Instruction and Professional
Development
Total
Expenses
Payroll (Note 5)
1.1 Special Interest Workshops
2.1 Intervention Support
2.2 Special Education
2.3 English Language Learners
3.1 Accountability Support
3.2 QEIA Evaluation Contract
NEA Teacher Leadership and Common Core Grants
$1,989,318
240,826
38,966
INSTRUCTION AND PROFESSIONAL DEVELOPMENT
$2,552,624
38,098
234,486
4,122
4,006
111,275
188,927
(297,400)

Nonchargeable
$ 73,605
8,911
1,442
3,000
$ 86,958
Chargeable
3.7 % $1,915,713
3.7 %
231,915
3.7 %
37,524
96.3 %
96.3.%
96.3 %
7.9 %
92.1 %
35,098
234,486
4,122
4,006
111,275
188,927
(297,400)
$2,465,666
3.4 %
- 23 --
96.6 %
(Continued)

. SUPPLEMENTAL DETAIL OF NONCHARGEABLE AND CHARGEABLE
Total
Expenses
Conference Coordination Center
Payroll (Note 5)
..... - lJf'
'-'<'"-'. - - - - Office expenses (Note 6)
programs:
1.1 Good Teaching Conference
1.2 Equity/Human Rights Conference
1.3 Presidents Conference
;rl"
- --- 1.4 Summer Institute
1.5 GLBT Conference
1.6 CTA Issues Conference
:..<:.:,. '
2.1 Incentive Grants
3. l Conference and Hotel Management System ..
_.
'I, J
CONFERENCE COORDINATION CENTER
'
- - -...
- -
..
- ..
'
$ 1 281
093
38,585
'
_,_
68,250
23,997
75,360
197,347
263,757
28,466
144,750
71,660
68,076
R.
. . . ..
$ 2,261,341

Nonchargeable
$544,465
16,399
29,006
,_
.t.
.......
__-,
;fu_
<
1,128
25,622
43,614
150,078
11,358
38,648
71,660
28,932
$ 960,910
.>
'.ir_.1
Chargeable
42.5 % $ 736,628
22,18642.5 %
42.5 %
39,244
4.7
34.0
22.1
56.9
39.9
26.7
22,869
49,738
153,733
113,679
17,1_08
106,102
%
%
%
%
%
%
42.5 %
39,144
--r.
-
'
....--.
I
57.5 %
57.5 %
57.5 %
95.3
66.0
77.9
43.1
60.1
73.3
%
%
%
%
%
%
57.5 %
$1,300,431
42.5 %
- 24 -
57.5 %
(Contjnued)

Integrated Systems & Strategies
Total
Expenses
Payroll (Note 5)
1.1 Association Techiiical Support
1.3 Telecommunications
2.1 Deployment of Document Management System3.2 Cyber Cafe
$ 3,260,746
173,639
18,892
INTEGRATED SYSTEMS & STRATEOIES
$3,831,051
Nonchargeable
$ 3,261
174
19
136,199
239,127
1,834
614
DEPARTMENT NONCHARGEABLE AND

0.1 % $3,257,485
173,465
0.1 %
18,873
0.1 %
99.9 %
99.9 %
99.9 %
136,199
239,127
1,834
614
$ 3,454
$3,827,597
0.1 %
- 25 -
Chargeable
99.9 %
'
(Continued)

Total
Expenses
Management
Payroll (Note 5)
1.1 Corporate Counsel
-';
1.2 Audit Fees and Expenses
1.3 Consultants
1.4 Association Membership Fees
1.5 Professional Liability Insurance
CTA Long Term Strategic
Planning
CT A 150th Anniversary
MANAGEMENT
DEPARTMENTAL
NONCHARGEABLE,
CHARGEABLE AND
ALLOCABLE PERCENTAGES
$2,783,676
304,701
67,506
... .. ,..
451,877
203,321
303,707
15,000
184,240
,,.;rt
207,569
268,231
131,000
95,393
$4,540,421
Nonchargeable
......
%
% $
45 .9 %
..
..
244,308
203,321
35,476
15,000
184,240
r.':J
131,000
95,393
88.3 %
!I'
'
._
$475,800
10.5 %
..,.
..,,
"l
$ 908,738
20.0 %
Allocable
% $ 2,783,676
304,701
67,506
54.1 %
11.7 %
:f
$3,155,883
- 69.5 %
- 26 -
(Continued)

Total
Expenses
Crisis Assistance Fund
Departmental progi:ams:
Negotiations
Arbitration Fund
Crisis Panel Expenses
CRISIS ASSISTANCE FUND
Nonchargeable
$196,563
3,353
5,087
$205,003

o/o
Chargeable
% $196,563
-3,353
5,087
- 27 -
o/o
100 %
(Concluded)
CALIFORNIA TEACHERS ASSOCIATION .

NOTES TO THE SUMMARY AND SUPPLEMENTAL DETAIL SCHEDULES OF
NONCHARGEABLE AND CHARGEABLE EXPENDITURES OF AGENCY FEES
FOR 2013-2014 BY MAJOR BUDGET CATEGORY
1.
AGENCY FEE NONCHARGEABLE AND CHARGEABLE EXPENDITURES CALCULATION

The California Teachers Association ("Association" or "CTA") is required by law to have procedures in
effect to determine the amount of its expenditures which can be charged to objecting agency fee payers
for "representational" or "chargeable"
i.e., generally those related to collective bargaining,
consultation, contract administration, an.cl employee representation related to terms and conditions of
employment.
Based on relevant federal and state judicial and administrative decisions, the Association analyzed its
expenditures and determined which of those expenditures were nonchargeable to objecting agency fee
payers and which were chargeable to objecting agency fee payers.
The Association's annual expenses are divided into major departmental budget categories. For agency
fee purposes, these budget categories are designated as either "non-allocable" or "allocable." The
Association's non-allocable budget categories are: Governance (non-allocable portions only);
Governmental Relations; Association for Better Citizenship; Legal Services; Regional Services;
Negotiations and Organizational Devel9pment; Training, Information & Development;
Communications; Human Rights; Instruction and Professional Development; Accounting; Business
Services; Central Services; Conference Coordination Center; Governance Support (non-allocable
portions only); Human Resources Management; Integrated Systems and Strategies; Management (nonallocable portions only); Occupancy/Properties; Capital Expenditures/Depreciation; Crisis Assistance
Fund; Advocacy/Foundation; Media Advertising Fund; Initiative Fund. The Association's allocable
budget categories are: Governance (allocable portions only); Governance Support (allocable portions
only); Management (allocable portions only).
Expenditures in non-allocable budget categories are analyzed according to the type of activity involved
and are categorized as "nonchargeable" or "chargeable." See Notes 3 and 4, below, for definitions of
nonchargeable and chargeable activities. Once all non-allocable budget categories have been analyzed
for nonchargeable and chargeable expenditures, such expenditures are totaled and the overall
nonchargeable and chargeable percentages
for all non-allocable budget categories are determined.
I
Expenditures in budget categories designated allocable are alJocated as nonchargeable or chargeable in
proportion to these percentages.
All nonchargeable and chargeable expenditures are totaled. These totals provide the Final
Nonchargeable and Chargeable Percentages.
The Summary of Nonchargeable and Chargeable Expenditures of Agency Fees for 2013-2014 l?y Major
Budget Category represents, to the best of the Association's knowledge and belief, the Association's
actual nonchargeable and chargeable expenditures for the 2013-2014 year. The calculations have been
prepared using historical costs incurred by the Association during the year ended August 31, 2014,
which have been included in the Association's audited financial statements, and the application of
various assumptions in the allocation of these costs as nonchargeable and chargeable as discussed in the
accompanying notes.
- 28 -
. 2.
DESCRIPTION OF MAJOR BUDGET CATEGORIES OF EXPENDITURES

Governance-Provides for all of the direct membership involvement in the control, operation and.
direction of the Association. The Governance budget also provides for the direct cost of membership
policymaking and guidance of the program activities of the Association. The Governance structure with
its various internal processes serves membership needs as perceived and directed by the Association's
elected leadership.
Governmental Relations-Represents the Association in all aspects of governmental and political
relations. It designs, coordinates and implements advocacy programs to achieve the Association's
political goals and objectives. It provides political information and assistance to members. It serves as
liaison to government and private agencies.
Association for Better Citizenship-Provides bi-partisan funding to CTA recommended candidates for
local and state offices. It coordinates and directs the Association's involvement in issues and initiatives.
It provides membership political action training; membership database and maintenance; member and
general public surveying and polling to support CTA's political agenda. It supports CTA's plember
oversight and involvement in funding decisions.
by and for
Legal Services-The Chief Counsel and Legal Director oversee all legal work
services are delivered through the CTA Legal Department, the
CTA, its chapters and members.
CTA Group Legal Services Program, the use of other outside counsel as needed, and by advising CTA's
Officers, Directors and departments.
CTALegal:
1. Represents CTA, its chapters, and members in proceedings before state and federal trial and
appellate courts; the state public sector labor relations board; arbitrators appointed pursuant to the
collective bargaining agreements of CTA chapters; and other decision-making bodies. This may .
include the initiation of strategic, affirmative litigation.

2. Advises on a continual basis the CTA Officers, Directors, and departments on a wide range of labor,
employment, education, and related legal topics.
3. Trains and educates CTA leaders and staff on relevant legal issues of concern to CTA and its
membership through conferences, seminars, and publications. These programs include' multi-day
trainings in labor law for CTA staff; telephone and webinar discussions for CTA staff and GLS
attorneys about priority legal .issues as they arise; monthly summaries of legal work on behalf of
CTA, its chapters and members; and regular legal advisories to CTA staff.
4. Provides select training and education programs for CTA leaders and members including two tracks
at Summer Institute; presentations at Presidents' Conference and certain Leadership Conferences;
and a training for CTA members who serve on panels for the Commissions on Professional
Competence.
In certain cases of civil, disciplinary, criminal or credent.ial defense of current CTA members, NEA 's
Kate Frank/Dushane Unified Legal Services Program (ULSP) provides partial funding for attorneys'
fees. This program is administered through CTA's Group Legal Services, which is overseen by the CTA
Chief Counsel and Legal Director. CTA selects private attorneys and law finns to participate in the
program and determines whether funding applies to a particular case in accordance with Board-approved
guidelines. CTA Legal also administers the Educators Employment Liability (EEL) Insurance Program.
- 29-
Regional Services-The regional structures of staff and offices are responsible for providing and/or
coordinating most of CTA's programs and services for members and local chapters. The funding for the
local service delivery program, including staff and facilities, flows through the four' regions.
The 2013-2014 Regional Services program placed emphasis on the following areas:
1. Member advocacy, including bargaining and organizing
a.
Organizing in support of quality health care and health benefits.
b. Providing assistance with responsibilities as the exclusive representative under the Educational
Employment Relations Act, including: contract negotiations, impasse mediation and fact finding
hearings; grievance representation procedures, including arbitration processing; identifying and
filing unfair labor practice charges.
c.
Organizing in support of a successful conclusion to contract negotiations.
d. Organizing and training for political action activities at the state, local, and national levels.
e.
Supporting locals engaged in community outreach organizing activities.
f.
Providing support for the implementation of permissive bargaining issues within the framework
of California collective bargaining laws, including professional development and program
consultation.
g. Assisting in the implementation of the Group Legal Services program.

2.
Leadership development and supporting stronger local chapters

a.
Expanding CTA membership with K-12 teachers in regular and charter public schoois, higher
education faculty, education support professionals and early childhood educators.
b. Supporting the Ethnic Minority Early Identification and Development Program (EMEID).
c.
Developing stronger local chapters through leadership development and utilization of the five
Constant Organizing Gdals: achieving parity; developing alliances; improving communications;
developing new leaders; and evolving programs.
d. Consulting with leadership of Service Center Councils.

, 3. Teachers professionalism and teacher-led education reform
a.
Supporting local and regional organizing activities to influence the re-authorization of the
Elementary and Secondary EduG,ation Act (ESEA).
b. Continuing successful implementation of the Quality Education Investment Act (QEIA).

c.
Implementing teacher evaluation systems and "Local Control" consistent with CTA policy.
d.
Supporting teacher-led school site councils.
- 30-
4.
Representational organizing
a.
b.
Increasing representation of new chapters, focusing on K-12 charter schools.

charter schools.
Increasing CTA members in newly
5. . Community Outreach
The focus of the Community Outreach is to delve deeper into the relationship established with
organizations outside of CTA over the previous years. The objective is to continue to strengthen the
ties with organizations interested in meeting the diverse needs of members, students and
neighborhood schools. Through a program of grants to local associations, community partnerships,
trainings and statewide organizational efforts, Community Outreach now works more closely and
directly with associations and service center councils in all four CTA regions. Grants have been
utilized for a wide range of activities including: community fairs, education forums, parental
involvement workshops and school clean-ups.
Negotiations and Organizational Development-The Negotiations and Organizational Devc::lopment

Department (NODD) is a field based, client driven department in the Regional Services Divisi.on. The
Department provides resources and expertise in the areas of bargaining, training, budget anaiysis,
mediation, fact-finding support, organizational development and health benefits strategiesito assist
Primary Contact Staff (PCS) and leaders to achieve the best possible contracts for our members.
The department supports local bargaining teams during mediation, fact-finding, and organizing
around bargaining issues. In addition to School District Budget Analysis, Bargaining Advisories are
sent to staff as necessary on topics that may arise during negotiations.
The department analyzes the State Budget for staff and members and explains implications and uses
for this information for chapter activities.
A major department function is the coordination and implementation of training for the Presidents
Conference, Summer Institute, and CTA Issues Conference.
NODD develops, coordinates and delivers multi-day training sessions for staff members to help
ensure that they remain current on relevant issues.
NODD developed, maintains, and provides training on two CTA software programs that are
designed to assist the PCS and bargaining teams. Budget Essentials for Negotiations (BEN) analyzes
school district budgets 'and Salary Schedule Analysis (SSA) allows staff and leadership to accurately
cost out salary, benefits, step and column, and other aspects of the salary schedule.
NODD maintains CTA Search, an additional resource available to chapter presidents, bargaining
chairs and CTA staff. The CTA website has been expanded to allow staff and leaders !O download
contract language from negotiated agreements and the CTA Contract Reference Manual. The site
now includes Arbitration Decisions, Bargaining Advisories, Legal Advisories, Fact Finding Reports,
Chapter Presidents Handbooks, and other guides.
NODD provides assistance as consultants to CTA workgroups and State Council committees. In
addition, the department works with the Governmental Relations Department on issues such as the
State Budget, liaison activities, and negotiations/school finance related legislation .
. - 31 -
NODD responds to requests from leaders, members, staff and the general public for research about
California public schools, public education and other topics of interest.
NODD works with coalitions to address health care issues, provides consultants to various CT A
committees and provides training to members on health ca.re related topics.
NODD conducts research, develops curriculum, distributes materials and organizes activities on
taxation, education funding, economic development and reducing income and wealthy inequality in
support of CTA's mission to secure a more just, equitable and democratic society.
Training, Information & Development-The TIO Division and corresponding Department is

responsible for the coordinatjon of several CT A departments and programs: Communications, Human
Rights, Instruction and Professional Development, multimedia, video and website projects and the CTA
Media Fund. The Training, Information and Development Division provides services to elected
leadership, members, staff, community organizations and other departments like Governmental
Relations and Regional Services. The division is also in charge of CT A's message, brand and overall
image. Through these efforts the TID Department coordinates member, opinion and opposition research
in support of the organization's goals, policies, objectives and message.
Communications-The Communications Department is responsible for promoting the Association's
yrogram-including the specific programs of other departments-to educators and the public. The
Department is specifically charged with representing the Association's goals, policies, programs,
services and achievements in the best possible light and with working to raise the image of educators, of
public education and of the Association itself. Those responsibilities dovetail with the department's
further mission to produce materials for and to coordinate the Association's overall effort to recruit and
retain members. In discharging its responsibilities, the Department issues news releases and otherwise
maintains contact with people in the media; participates in the administration of the Association ' s
advertising program; publishes two periodicals and many other publications and printed materials for
educators. The Department oversees the CTA websites and social media channels and produces an
electronic newsletter and other communications for members and other departments. In addition, the
Department conducts training sessions in media relations, community action, internal communication,
and membership promotjon; and assists other Association units to prepare, produce and distribute
materi als.
Human Rights-The Human Rights Department serves as a support base for local affiliates, Service
Center Councils, member leaders, staff, advocacy groups, students and parents. Human Rights supports
the goals and objectives of the California Teachers Association by advocating equity in all aspects of
CT A activities. The Department provides training programs, acts as a consultant to various Association
committees, and administers several Association sponsored scholarships and award programs. The Club
Ed and Student CTA programs work to recruit minorities into the teaching profession as well as prepare
teacher candidates for active participation in CTA . The High Risk Training Program, Women 's
Leadership Program, Ethnic Minority Leadership Progr,am, the Gay, Lesbian, Bisexual, Transgender
Leadership Program, and the Unconscious Bias Training are highlighted trainings that assist our
members with current social issues.
- 32 -
Instruction and Professional Development-The mission of the Instruction and Professional

Development (IPD) Department is to advance the interest of teachers as organized professionals and to
assist in the maintenance of the integrity of public education. The issues related to standards-based
education, assessment, accountability and school improvement guide the department efforts to meet the
needs of educators and students. Uie IPD Department:
,
Works to maintain an active Association influence with state agencies and other related
organizations in the development of educational policy.
Provides leadership and support for commitment to, maintenance of, and improvement of public
education.
'
Provides assistance in support of efforts to improve student learning, especially schools in various
phases of improvement.
Reinforces CTA efforts to renew public confidence in California public schools by providing
materials and assistance to local chapters for building their capacity to meet member needs,
especially in areas of improving schools and student learning.
Promotes standards for quality professional development to be used by local chapters in bargaining
and consultation with districts.
Assists local chapters to identify and select resources to support the profes'sion.
Works to assist educators to assert their professional rights and responsibilities.
Provides support when professional and school issues are bargained and/or advocated.
Proposes, promotes and implements practices, policies and legislation, which advance the
professional interest of educators and education support professionals.
Facilitates the development of training and other professional growth experiences for educators.
Synthesizes and disseminates research and information on educational issues that promote student
learning and the profession of teaching.
Accounting-Accounting provides for the recording, maintenance and analysis 'of financial and
membership data. Major functions provided are:
Processing, verification, recording and monitoring of all receipts and disbursements in compliance
with CTA policies and procedures and generally accepted accounting principles.
Preparation of financial statements and reports for Association members, staff, external auditors, and
other entities as required.
Coordination with other departments and affiliates in the collection of data and information pertinent
to the operation and program development of the Association.
Reports and filings required by regulatory agencies.
Budget monitoring in accordance with Association guidelines and procedures.
- 33 -
Record keeping, reporting and coordinating in compliance with legal requirements for agency fee.
Service and assistance to affiliates, members and staff on membership processing and dues
accounting, and other fiscal matters.
Training sessions for affiliate financial representatives and staff in the areas of membership
processing, general accounting, and other financial areas.
'
Development, maintenance and analysis of the CTA membership database and connected systems
that support the programs and services of the Association.
Identify opportunities and implement processes to provide member information via the web.
Implement systems and processes that provide efficiencies and make better use of the Association's
assets.
Business Services-The Business Services Department objectives are: (I) provide a centralized
.organizational purchasing function. The department works closely with other, departments to determine
capital needs as well as working to secure favorable pricing and terms on a variety of goods and services
acquired by the Association. (2) Provide direct support to business application and system initiatives.
Busi:aess Services works with other departments in the Business Division regarding application soft\yare
selection, implementation as well as enhancements and upgrades to current business systems and
processes. (3) Identify and develop key strategic vendor relationships. Business Services works with
CTA's suppliers in an effort to deliver a high level of value and service for the Association at the right
price. Additionally, Business Services works closely with the Accounting Department and the
Controller's Office to ensure proper controls and procedures are in place for certain business and
financial transactions.
Central Services-Produces materials, maintains facilities and provides general office support for CTA
departments and programs:
In Office Services, graphics staff design, develop, and assist others in the creation of eye-catching
document covers, posters, printed media ads, flyers, pamphlets and other items for use at CTA
leadership meetings; conferences, training programs, in the print media, and, elsewhere.
Using state-of-the-art digital presses to generate quality color work, high speed copiers to make
millions of black and white impressions and off-set presses to produce letterhead stationery. and
envelopes. Staff in the copy centers and print shop provide printed 1vaterials for CTA departments,
Service Center Councils, UniServ Units and chapters.
Bindery staff receive and process incoming mail, greet visitors and route calls from the switchboard.
They use equipment to finish, fold, sort, bind, staple and tum printed materials into completed
products which are then processed to be mailed, shipped or delivered wherever needed. They also
maintain and scrub mailing lists, and presort mail when possible to reduce postage costs.
Record Center staff store and catalogue the Association's historical records and manage the on-site
and off-site storage facilities.
The Property Management department, on a statewide basis, oversees the maintenance of CTA
owned property and buildings, handles tenant relations, coordinates construction projects, searches
for new properties, makes recommendations for the sales of property when appropriate and manages
the off-site storage facility.
- 34 -
Building Services handles maintenance and repair projects at the Headquarters facility and skilled
staff from this department are deployed to other CTA offices as well. They also store CTA branded
forms, envelopes, and stationary, and coordinate receipt of office supplies from the Association's
primary vendor, and handle internal distribution of these items.
Conference Coordination Center-Working with other CTA departments, the Conference

Coordination Center (CCC) is responsible for coordination and delivery of CTA statewide conferences.
The Department provides increased services and value to conference attendees with the support and
coordinated efforts of all respective participating departments and leadership conference planning
committees. Conference and events under the purview of the Conference Coordination Center include
the President's Conference, Summer Institute, Good Teaching Conference-North, Good Teaching _
Conference-South, Equity and Human Rights Conference, CTA Issues Conference: Unity and Advocacy
in Public Education (combines the Rural Issues, Urban Issues and ESP Conference), Regional
Leadership Conferences, GLBT Conference, Joint Caucus Conference and the quarterly State Council of
Education Meetings. The Conference Coordination Center also coordinates statewide meetings for CTA
staff training, QEIA briefing sessions and several SCC Leadership Conferences. The Conference
Coordination Center provides support to various other meetings of CTA affiliates and service centers,
including site selection, hotel contract negotiations, on-line registration and
logistics planning.
Conference Coordination Center administers and funds minority and new leader grants to CTA members
so they can benefit from the many professional development opportunities at the CTA conferences.
Grants are also available to members from small chapters.
Governance Support-Governance Support coordinates all governance function.s for the Executive
Officers, the Board of Directors, State Council of Education and CTA's delegation to NEA's annual
Representative Assembly, including scheduling, logistics record keeping and secretarial services.
Governance Support provides:
Preparation, development and support for State Council meetings, including preparation of State
Council minutes and the State Council Board Report.
Preparation and support for Board of Directors meetings including the preparation and distribution
of minutes and Board Brieft.
Staff support for the Executive Officers and the Board of Directors.
Coordination of California's participation in the NEA Representative Assembly, including all

logistics for the California Caucus meetings and delegate housing arrangements.
Development and maintenance of State Council Representation records .
Staff support to the Representation Committee, Elections and Credentials Committee, and the Local
Governance Documents Review Committee:
Preparation and maintenance of the Board Advisory Group listing.
Facilitation of membership involvement on CTA advisory groups and attendance at non-CT A

conferences.
Reconciliation of leader/member expenses.
Development of the Orientation Handbook for State Council Members.
- 35 -
Development of the Handbook for State Council Committee Chairpersons.
Preparation of the State Council Representation Report.
Preparation of election publications, including the CTA Elections Manual and Guidelines for
Chapter Election
Preparation of the Requirements for Development ofBylaws and Election Standing Rules for
Chartered Chapters ofCTA.
Human Resources Management-Human Resources Management is responsible for the conduct of all
phases of the employer".'employee relationship between CTA as an employer and its staff. Specifically,
the department performs the following functions:
Coordinates implementation of staff collective bargaining agreements.
Coordinates implementation of policies governing non-bargaining unit staff.
Coordinates implementation of staff grievance procedures;
Conducts staff recruitment, screening and hiring.
Conducts new employee orientations.

I
Coordinates staff training programs and. the CTA Diversity Program.
Coordinates workshops for members who want to become UniServ staff.
Coordinates implementation of the NEA UniServ Pre-Employment Development Program.
Implements staff recog'nition program and staff compensation program.
Implements CTA 's Safety Programs which include: Injury and Illness Prevention frogram, <;::TA
Ergonomic Program, Workplace Violence Prevention Program,
Communication Program
and CTA's Emergency Action Plan ..
Liaison with the Health & Welfare Benefits Trust regarding administration of staff benefits.
Liaison to the CTA Employees' Retirement Benefits Trust.
Provides Human Resources services to affiliates that employ staff.
Provides communications and data collection and dissemination relative to personnel, labor relations
and staffing matters.
Represents CTA to governmental agencies concerned with Employer-Employee Relations.
Responsible for Code of Ethics.
- 36-
Integrated Systems & Strategies-Integrated Systems and Strategies Department (ISSD) provides for
the development and coordination of the Association's electronic data collection, processing, retrieval
and reporting system. The Integrated Systems and Strategies Department provides:
Statistical information of monitoring performance, measuring variances from CTA's goals, and
projecting alternative methods of action or possible results based on trend analysis, economic
conditions, demographics, and other inform.ation for all AssoCiation activities.
Coordinates the operation and monitors the reliability ofNEA computer systems.
Coordination of a variety of technology-related projects including, but not limited to, new computer
applications.
Evaluation, deployment, and coordination of new computer hardware and software as it relates to
CTA organizational use.
Coordination of the acquisition and implementation of computer equipment for CTA offices and
affiliates.
Support Of staff on the proper use of equipment and related software.
On-going support and assistance to computer users in CTA offices statewide.
Coordination of CTA staff access to the Internet and maintain CT A presence as a World Wide Web
site.
Deployment and support of the Association's Wide Area Network.
Management-Management is responsible for the overall supervision of operations and execution of

programs. Management also provides:
Assistance to CTA Executive Officers, Board of Directors, and other Governance groups in the
formulation of goals and policies in accordance with the needs and desires of the membership.
Planning and execution of Governance directed programs designed to fulfill the goals and objectives
of the Association.
Coordination and direction of all staff activities to ensure efficient use of staff time.
Legal assistance to the Association.
Coordination of independent financial reporting for the Association.
Maintenance and preservation of the Association's properties and other assets.
Establishment and maintenance of contacts with other education associations including state
agencies and related organizations.
Administration of the Association's corporate insurances.
Budget preparation in accordance with Association's guidelines and procedures.
- 37 -
Occupancy/Properties-Provides (or: Payments of rents, taxes, utilities, insurance and other

miscellaneous expenses of CTA properties and offices.
Capital Expenditures/Depreciation-Provides for: Purchase of equipment, furniture and fixturtjs
deemed necessary to improve, expand or create services essential to members and employee
performance; replacement of equipment; conversion of obsolete equipment; capitalized"'improvements to
buildings and properties for maintenanceof property value, safety standards or improvements of space
utilization.
Crisis Assistance Fund-Provides for: Financial support to chapters undergoing elections, negotiations,
crisis, and arbitration as administered by the Crisis Assistance Panel.
Advocacy/Foundation-The contribution is in the form of a voluntary $20.00 reverse dues check-off to
support CTA advocacy efforts for public education and a CTA foundation to support member
scholarship and grant programs, and teacher driven solutions for public schools. The default allocation
option for fiscal year 2013-2014 is $10.00 Advocacy $10.00 CTA Foundation.
Media Advertising Fund-The Media Advertising Fund consists of revenues designated for paid
advertisement to educate the public about the achievements, the problems, and the needs of public
education from preschool through graduate school.
Initiative Fund-The Initiative Fund supports initiatives that advance the cause of free, universal, and
quality public education, or to combat initiatives that are hostile to the CT A mission to advance the
cause of free, universal and quality education. The annual amount is $36.00 per applicable FDE and is to
be kept in reserve for the aforementioned purposes.
3.
DEFINITION OF NONCHARGEABLE EXPENSES

Nonchargeable expenses are those which do not relate to performing the duties of the exclusive
representative in dealing with the employer on labor-management issues. Nonchargeable expenses
generally include those related to:
Political candidate donations or support, including endorsement process and donations to political
parties;
Campaign donations or support on behalf of state or local ballot initiatives;
Support for political action committees;
Voter registration, get-out-the-vote, and political action training;
Lobbying and political efforts before state legislatures and state administrative agencies;
Public relations designed to enhance the image of the teaching profession generally and/or the image
of the association;
Litigation unless specifically related to the collective bargaining law, contract administration or
organizational maintenance;
Charitable contributions;
- 38 -
'
4.
Membership recruitment;
Establishing new or expanded bargaining units, or defending against challenges to exclusive

bargaining representative status or severance petitions;
Members-only benefits (e.g. educators employment liability insurance, and advisory groups on
members-only benefits); and
CTA retired and CTA student program activities.
DEFINITION OF CHARGEABLE EXPENSES

Chargeable expenses are expenses incurred by the Association in "performing the duties of an exclusive
representative of
employees in dealing with the employer on labor-management issues." These
expenses include "not only the direct costs of negotiating and administering a collective-bargaining
contract and of settling grievances and disputes, but also the expenses of activities or undertakings
normally or reasonably employed to implement or effectuate the duties of the union as exclusive
representative of the employees in the bargaining unit." Cumero v. Public Employment Relations Board
(1989) 49 Cal.3d 575, 588. Chargeable expenses generally include, but are not necessarily limited to,
those related to:
Negotiating collective bargaining agreements, including preparation for negotiations;
Organizing activities undertaken to support the union's efforts in bargaining, including lawful
strikes;
Consultation with the employer pursuant to the EERA on educational objectives, curriculum and
textbooks (Gov. Code section 3543.2 (a));
Contract administration, including investigating and processing grievances;
Arbitrations;
Advising bargaining unit members on workplace problems;
Professional development, curriculum development and implementation, teaching methods, and

other instructional skills;
Site-based decision-making that impacts on
Strategic planning and polling on priorities for association activities;
CTA State Council and Board of Directors; and
Litigation related to the collective bargaining law, contract administration and organizational
maintenance.
- 39-
chargeable subject areas;
S.
PAYROLL
Staff payroll includes salaries and fringe benefits of professional & associate staff and is allocated
according to time, sheets which indicate the percentage of time spent by professional staff op chargeable
and nonchargeable activities.
6.
STAFF TRAVEL AND EXPENSES, AND OFFICE EXPENSES

Staff travel and expenses, and office expenses, are allocated according to the percentages reflected in
staff payroll.
7.
CALIFORNIA EDUCATOR AND CALIFORNIA COMMUNITY COLLEGE ADVOCATE

California Educator and California Community College Advocate are allocated according to a columninch measurement of the chargeable and nonchargea"le content of those publications. Advertising
income has been subtracted from the publication
to yield a net cost.
8.
KATE FRANK/DUSHANE UNIFIED LEGAL SERVICES PROGRAM

The Kate Frank/DuShane Unified Legal Services Program includes moneyreceived _from National
Education Association ("NEA") to offset the costs oflegal services provided by the Association and is
allocated according to the percentage of chargeable and nonchargeable expenditures for which
reimbursement is received.
9.
UNISERV
UniServ expenditures are for salaries and fringe benefits of field staff assigned to UniServ Units. Like
staff payroll, the expenditures are allocated according to time sheets which indicate the percentage of
time spent by these field staff on chargeable and nonchargeable activities. Salaries and fringe. benefits of
field staff assigned to'Regional Resource Centers ("RRCs") are found under staff payroll. All field staff
are assigned to either an RRC or a UniServ unit.
10. UNITED TEACHERS LOS ANGELES ("UTLA") AND CALIFORNIA FACULTY

("CFA")
These block grants support the programs of UTLA and CFA. The costs are allocated between chargeable
and nonchargeable categories based on percentages provided by UTLA and CFA from their own agency
fee calculations.
******
-40-
nea
NATIONAL
UH JC/\TlON
1201 16th St .. N.W.
/\SSOCJ;\TION
lll';l.CJIL!,
Washington, DC 20036
Phone: (202) 833-4000
Lily Eskelsen Garcia

President
Rebecca S. Pringle
Vice President
Grrat Pub/le Schools

jllr E!JnY Stvdnit
Princess Moss
Secretary-Treasurer
John Stocks
Executive Director
August 6, 2015
California Teachers Association (CTA)
In order to satisfy its obligation under Chicago Teachers Union v. Hudson to provide
agency feepayers with "an adequate explanation of the basis for the fee," the National
Education Association (NEA) has included in this mailing the following documents:
(1)
A 16 page document entitled "National Education Association Chargeable

and Nonchargeable Audited Expenditures for the 2013-2014 Fiscal
Year"; and
(2)
The NEA Fiscal Year 2013-2014 Consolidated Financial Statements.
The first of the above-mentioned documents breaks down NEA's audited expenditures from its
most recently completed fiscal year on a category.by-category basis, and specifically indicates
the expenditures it has determined to be chargeable to feepayers and those it has determined
to be nonchargeable. A more detailed, i.e., output-by-output, explanation of this breakdown can
In addition, pages 45-52 of the latter
be found on pages 35-44 of the second
document contain an explanation of how NEA calculates its agency fee chargeable and
nonchargeable expenditures.
For purposes of this notice to agency feepayers in CTA, NEA has determined that in the
2013-2014 fiscal year, 37.72% of its expenditures went for chargeable activities and 62.28% of
those expenditures went for nonchargeable activities. Because there is relatively little
variation between NEA's 2013-2014 expenditures and completed activities and its 2014-2015
budgeted expenditures and planned activities, NEA's analysis of its percentages for the 20132014 fiscal year expenditures are being applied to the 2014-2015 fiscal year. However, to
assure against any possibility that there may be some unexpected variation in expenditures
between the 2013-2014 and 2014-2015 years, NEA has added a cushion of 3.77%, resulting in
a chargeable percentage of 33.95% and a nonchargeable percentage of 66.05%.
NATIONAL EDUCATION ASSOCIATION

OF THE UNITED STATES AND SUBSIDIARIES
CONSOLIDATED FINANCIAL STATEMENTS
AUGUST 31, 2014
Bethesda, MD
NATIONAL EDUCATION.ASSOCIATION
CONSOLIDATED FINANC:l:AL STATEMENTS

AUGUST 31, 2014
CONTENTS
PAGE
Report of Independent Auditors
Consolidated Statements of Financial Position
Consolidated Statements of Activities
Consolidated Statements of Cash Flows
Notes to Consolidated Financial Statements
Supplemental Notes and Schedules

Supplemental Summary Schedule of Agency Fee Chargeable and
Nonchargeable Expenditures
31
Notes to Supplemental Summary Schedule of Agency Fee Chargeable and

Nonchargeable Expenditures
45
Bethesda, MD
REPORT OF INDEPENDENT AUDITORS
To the Executive Committee and Members of the

National Education Association of the United States
We have audited the accompanying consolidated financial statements of the National Education
Association of the United States and its subsidiaries (NEA), which comprise the consolidated
statements of financial position as of August 31, 2014 and 2013, and the related statements of
activities and cash flows for the years then ended, 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.
Auditor's Responsibility
Our responsibility is to express an opinion on the 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 audits 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
auditor's 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 signjficant 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.
7501 Wisconsin Avenue I Suite 1200 West I Bethesda, MD 20814 j T: 202.331.9880 IF: 202.331.9890 I calibrecpa.com
Opinion
In our opinion, the consolidated financial statements referred to above present fairly, in all
material respects, the
position of the National Education Association of the United
States and its subsidiaries as of August 31, 2014 and 2013, and the changes in its net assets and
its cash flows for the years then e.nded in accordance with accounting principles generally
accepted in the United States of America.
Other Matter
Our audits were made for the purpose of forming an opinion on the basic consolidated financial
statements taken as a whole. The accompanying information included on pages 31 through 52 is
presented for purposes of additional analysis of the basic 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, except for the budgeted amounts (which is unaudited), has b{len
subjected to the auditing procedures applied in the audit of the consolidated 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.
w"'V",
Bethesda, MD
December 2, 2014
-2-

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

AUGUST
31, 2014 AND 2013
2014
2013
ASSETS
CURRENT ASSETS
Membership dues receivable . , net of allowance
Amount due from affiliates and other organizations - net
of allowance
Accounts receivable
Notes receivable
Prepaid expenses .
Deferred income taxes
Other current assets
Total current assets

LONG-TERM ASSETS
Notes receivable - net of current portion
Deferred leasing commission
Investments
Pension asset
Property and equipment - net.of accumulated depreciation
Total long-tenn assets
Total assets
176,214,555
31,377,081
.38,964,217
31,930,116
1,839,429
7,565,475
1,000,000
2,970,394
234,992
277,815
1,207,532
7,085,951
221,479,741
181,736,884
6,374,320
260,783
45,532,964
18,406,152
57,133,798
8,730,304
244,597
37,873,334
13,912,355
58,279,863
127,708,017
119,040,453
349,187,758
300,777,337
1,920,208
283,184
345,676
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES
Accounts-payable
Accrued liabilities
Deferred income
Accrued annual leave
Amount held for affiliates and other organizations
13,553,610
14,179,153
1,825,230
6,490,191
12051,672
37,099,856
Total current liabilities

See accompanying notes to financial statements.
-3-
15,494,274
13,377,840
2,689,696
6,389,854
9042927
38,856,591

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION (CONTINUED)
AUGUST
31, 2014 AND 2013
2014
''LONG-TERM LIABILITIES
Grant commitment
Accrued severance payable
Deferred income
Total long-term liabilities
600,000
5,972,811
16,576,748
6,679,971
292829,530
2013
700,000
5,851,089
.14,512,263
4 2908 2760
25 2972 2112
Total liabilities
662929,386
642828 2703
UNRESTRICTED NET ASSETS

Undesignated net assets
Designated net assels
Total unrestricted net assets
161,182,908
121,075,464
2822258,372
145,179,593
90 2769,041
2352948,634
Total liabilities and net assets

-4-
349,187,758

CONSOLIDATED STATEMENTS OF ACTIVITIES
YEARS ENDED AUGUST
31, 2014 AND 2013
2014
2013
OPERATING ACTIVITIES
UNRESTRICTED REVENUES
.NEA Programs:
$
Dues
Other
358,470,103
9,001,528
361,244,019
2,642,426
367,471,631
363,886,445
55,020,903
261,625
51,993,633
213,529
55,282,528
52,207,162
1,977,466
1,403,582
424, 731,625
417,497,189
266,376,742
261,887 ,836
Member Benefits programs

NEA Properties
43,103,166
1,510,684
41,900,236
1,384,218
Total program services
310 2990,592
305, 172,290
Total NEA programs

Member Benefits Programs:
Program revenues - supplier&
Other
Total member benefits programs
NEA Properties:
Rental income
Total unrestricted revenues
EXPENSES
Program services:
NEA programs
See accompanying notes to the financial statements.
-5-

OF THE UNITED STATES. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ACTIVITIES (CONTINUED)
YEARS ENDED AUGUST
31, 2014 AND 2013
2014
2013
OPERATING ACTIVITIES
EXPENSES (CONTINUED)
Support services: /
NEA programs
58,066, 786 .
59,682,758
Member Benefits programs

NEA Properties
7,844,280
81,258
8,207,968
79,213
Total support services
65,992,324
67,969,939
3 76,982,916
373,142,229
47,748,709
44,354,960
CHANGE IN PENSION OBLIGATION OTHER THAN NET

PERIODIC PENSION COST AND OTHER CHARGES
(1,438,971)
2,636,228
CHANGE IN NET ASSETS
46,309,738
46,991,188
235,948,634
188,957 ,446
Total expenses
CHANGE IN. NET ASSETS FROM OPERATIONS

NON-OPERATING ACTIVITIES
NET ASSETS
Beginning of year
End of year
See accompanying notes to the financial statements.
-6-
282,258,372
235,948,634

OF THE UNITED STATES AND S\]BSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
YEARS ENDED AUGUST
31, 2014 AND 2013
2014
CASH FLOWS FROM OPERATING ACTIVITIES
$
Changes in net assets
Adjustments to reconcile chariges in net assets to net
provided by (used for) operating activities
Depreciation and amortization
Bad debt expense
Net realized gain on investments
Net unrealized gain on investments
Write-off of furniture and equipment
Changes in assets and liabilities:
Decrease (increase) in membership dues receivable
Decrease (increase) in amount due from affiliates
and other organizations
Decrease (increase) in accounts receivable
Decrease (increase) in prepaid expenses
Decrease in other current assets
Increase in deferred leasing commission
Increase in pension asset
Decrease in accounts payable
Increase in accrued liabilities
Increase (decrease) in accrued annual leave
Increase in amount held for affiliates and other organizations
Decrease in grant commitment
Increase (decrease) in accrued severance payable
Increase in deferred income
Net cash provided by operating activities

-7-
46,309,738
6,078,482
1,536,290
(2,090,439)
(1,157,042)
6,864
1,819,403
(872,146)
2013
46,991,188
7,220,544
945,136
(460,262)
(628,926)
4,829
1,313,476
(663,048)
(559,482)
( 1,050, 186)
67,861
(16,186)
(4,493,797)
(l,940,664)
''801,313
100,337
146,745
(100,000)
121,722
1,200,019
205,563
683,952
222,274
131,484
(123,002)
(6,569,387)
(3,205,390)
1,011,114
(2, 180,831)
3,381
(100,000)
(785,716)
1,099,903
45,245,784
48!588,761
NATIONAL EDUCATION
CONSOLIDATED STATEMENTS OF CASH FLows (CONTINUED)
YEARS ENDED AUGUST
31, 2014 AND 2013
2014
2013
CASH FLOWS FROM INVESTING ACTIVITIES
Issuance of notes receivable

Repayment of notes receivable
Purchases of investments
Proceeds from sale of investments
Purchases of property and equipment
Net cash used for investing activities
NET CHANGE IN CASH AND CASH EQUIVALENTS
(144,016)
1,500,000
(14,410,181)
9,998,032
(4,939,281)
(459,847)
(20,449,382)
16,034,478
{2,404, 770)
(7,995,446)
(7,279,521)
37,250,338
41,309,240
138,964,217
97,654,977
CASH AND CASH EQUIV ALENTS
Beginning of year
End of year
176,214,555
138,964,217
Interest
18,832
4,400
Income taxes
1,349,314
6281118
SUPPLEMENTAL DISCLOSURE OF CASH FLOW

INFORMATION - CASH PAID DURING THE YEAR

-8-

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

'
NOTE 1.
AUGUST 31, 2014
0RGANIZA TION
The National Education

of the United States ("NEA") is a not-for-profit organization
incorporated under an Act of the United States Congress. Its mission statement reads: "our
mission is to advocate for education professionals and to unite our members and the nation to
fulfill the promise of public education to prepare every student to succeed in a diverse and
interdependent world."
To help realize this mission, the NEA adopted a vision of "a great public school for every
student." This vision guided NEA's strategic plan and budget, which is organized around two
Strategic Goals and six Core Function Areas.
The Strategic Goals
two key challenges:
Strong Affiliates for Great Public Schools - In partnership with state and local affiliates,
NEA will aggressively advance an organizing culture designed to build capacity to grow
membership, increase member activism, improve fiscal health, enhance public
education, and assist affiliates in fending off attacks to member rights and union
strength.
Uniting the Nation for Great Public Schools - In partnership with state and local
affiliates, NEA will empower educators to collaborate with school and community
stakeholders to co-create solutions designed to shape the future of education, improve
student learning, achieve educational equity, enhance professional practice and the
quality of professionals, and advance successful solutions that drive national, state, and
district level policies.
The Core Function areas address regular, ongoing programs and services:
Research, Policy, and Practice for Great Public Schools - Track and identify practices
that have been successful in encouraging student learning or in shaping the future of
learning. In partnership with organizations support of educator led transformation of
public education, use key learning and research to develop, identify, and implement
national, state,. and district policies that facilitate these practices.
- 9-
NOTEl.
ORGANIZATION (CONTINUED)
Organizing - In partnership with state and local affiliates, NEA will aggressively advance
an Association-wide 'culture of organizing' and engage members as a collective by
supporting affiliates to activate our vast network in pursuit of the vision.
Advocacy and Outreach - In partnership with state and local affiliates and other
organizations support of educator-led transformation of public education, advocate
educators' positions to national, state and district policymakers, education stakeholders,
and the public (with priority focus on parents, ethnic minority communities, and labor
partners) in order to influence policy development and debates to achieve equity of
. opportunity, access, and quality in public education; advance our members' views and
expertise about policy for great public schools for every student; promote social justice;
and advance and preserve members' voices, rights, and optimal conditions for teaching
and learning.
Communications - Utilize the best communication strategies to engage affiliates,

members, partners, parents and communities.
Business Operations - Administer the business operations in a manner that supports the
changing needs and priorities of the organization and.ensures efficient and effective
infrastructure that supports good fiscal management, uses technology
innovation and
strengthens NEA' s human capital.
Governance - In partnership with leadership, develop professional development and

decision making processes that clearly advance the organization's mission and vision.
NOTE2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation - The consolidated financial statements include the accounts ofNEA
and its wholly owned subsidiaries: NEA Properties, Inc. ("NEAPI"), NEA's Member Benefits
Corporation ("MBC"), and MBC's wholly-owned subsidiary, the NEA Professional Services
Fund, Inc.,
Corporation, and an affiliated entity, National Education Employees
("NEEAF"). NEAPI's primary purpose is to hold title to and manage certain commercial real
property in Indiana, collect income from that property and' periodically surrender the net
proceeds derived to NEA. MBC serves as a contractor for NEA's member benefits functions.
NEEAF is combined with the accounts ofNEA due to common control and an economic interest.
All intercompany accounts and transactions have been eliminated in consolidation.
Measure of Operations - NEA includes in its measure of operations all revenue and expenses
that are integral to its continuing core program services with the key objective being
predictability of indicated results. Non-operating income and expenses
unrealized
appreciation (depreciation) and defined benefit pension charges included in the change in
pension obligation other than net periodic pension cost and other charges.
-.10- .
NOTE2.
SUMMARY OF SIGNIFICANT ACCOUNTING.POLICIES (CONTINUED)
Basis ofAccounting - The accompanying consolidated statements are prepared on the accrual
basis of accounting. To ensure observance of its bylaws, the resources of NBA are classified
internally for accounting and reporting purposes into funds established according to their nature
and purpose. The assets, liabilities, net assets, and changes in net assets are reported in the
following two fund groups:
General Operating Fund -The bylaws ofNEA provide that the General Operating
Fund shallcomprise all income received in the form of dues, interest, dividends, fees,
earnings from advertising, sales ofNEA publications, payments for services, and funds
received by gift, bequest, devise, or transfer to NBA, which are not specifically
designated for deposit in the Capital Improvement Fund.
Special Purpose Funds - The Special Purpose Funds are grouped for reporting purposes
The Related Entity
into Bylaw, Related Entity, and Other Special Purpose
Special Purpose Funds are Member Benefits Program ("MBC"), NBA Properties, Inc.
("NBAPI"), Advocacy Fund, and the National Education Employees Assistance Fund
("NEEAF"). The bylaw man4ated Special Purpose Funds are the Capital Improvement
Fund, Great Public Schools Fund, Special Dues Ballot Fund, Special Dues Media Fund
and the UniServ Fund. TheOther Special Purpose Funds arethe Cash Stabilization,
External Partnership Grants, Infrastructure Reserve Fund, National Issues
Advancement Fund, Membership Organizing, and the NBA-Life Membership Fund.
Use ofEstimates - The preparation 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 financial statements and the
reported amounts of revenues and expenses during the reporting period. Significant items subject
to such estimates and assumptions include the .deferred revenue, useful life of fixed assets,
pension liability, reserve for uncollectible receivables, reserve for contingent liabilities, and
deferred tax. Actual results could differ materially, in the near
from the amounts reported.
Concentration of Risks - Financial instruments that potentially subject NBA to significant
concentrations of credit risk principally consist of cash, accounts receivable, and investments.
NBA places its cash in a financial institution that is federally insured under the Federal
Depository Insurance Corporation ("FDIC"). At August 31, 2014, the cash aggregate balances
were in excess of the FDIC insurance limits by approximately $180,274,000 and therefore, bear
some risk, since they were not collateralized. NBA has not experienced any losses on its cash to
date related to FDIC insurance limits.
- 11 -
NOTE
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
MBC had material revenues from two entities representing approximately 36 percent and 39
percent of revenues, respectively, for the year ended August 31, 2014, and approximately 39
percent and 43 percent of revenues, respectively, for the year ended August 31, 2013. As of
August 31, 2014, two entities accounted for approximately 16 percent and 42 percent of MBC 's
accounts receivable, respectively. As of August 31, 2013, two entities accounted for
approximately 30 percent and 50 percent of MBC's total accounts
respectively.
Cash and Cash Equivalents - Cash equivalents consist of interest-:-bearing deposits and securities
with original maturity of less than three months when purchased and are recorded at cost, which
approximates fair value.
Investments - Investments consist of mutual funds and exchange traded funds and are recorded
at fair value, with any gains or losses reflected in the consolidated statements of activities and
changes in net assets. Net realized gains from operating activities were $2,090,439 and $460,262
for the years ended August 31, 2014 and 2013, respectively. The net unrealized gain included in
operating activities was $1,145,673 and the unrealized gain included in non-operating activities
was $11,369, for a total net unrealized gain of $1,157,042 for the year ended August 31, 2014.
The net unrealized gain included in operating activities was $866,355 and the unrealized loss
included in non-operating activities was $237,429, for a total net unrealized gain of $628,926 for
the year ended August 31, 2013.
Property and Equipment - Property and equipment are recorded at cost. Depreciation is
provided using the straight-line method <;>ver the estimated useful lives of the respective assets.
The estimated useful lives range from 2 to 15 years for furniture, fixtures, and equipment and 25
to 40 years for buildings and leasehold improvements.
NEA capitalizes direct costs incurred during the application development and implementation
stages for developing software for internal use. These software costs are depreciated using the
straight-line method over the estimated useful life of the software, generally three to five years.
All costs incurred during the preliminary project stage are expensed as incurred.
Depreciation and amortization expense was $6,078,482 and $7 ,220,544 for the years ended
August 31, 2014 and 2013, respectively, and is reflected in NEA's support services expenses in
the consolidated statements of activities and changes in net assets.
Accrued Severance Payable - NEA has a policy entitling employees with over 10 years of
service to severance pay equal to 10 weeks of salary. NEA's accrued severance pay has been
calculated in accordance with Accounting Standards for Compensation-Nonretirement
Postemployment Benefits.
- 12 -
NoTE2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
NEA-Life Membership Fund ("NEA-Life'') - NEA offers life membership through a Special
Purpose Fund known as the NEA-Life Membership Fund. NEA-Life dues qualify retired
members for certain services provided to active members, as well as services designed
specifically for retired persons. NEA-Life dues income is recorded as deferred income when
received and amortized using the straight-line method over the estimated life expectancy of its
members.
Membership Dues - Membership dues are recognized as income over the membership
which is September 1 through August 31. Dues are assessed to members as provided in the
bylaws. An estimated provision for uncollectible receivables, write-offs, and cancellations is
charged against membership dues revenues.
In accordance with the bylaws, a percentage of the membership dues is allocated to UniServ
grants, which are included in NEA' s program services expenses, whereby NEA provides grants
to state affiliates to assist in funding their staff representatives, whose responsibilities are to
implement; improve, and coordinate programs ofNEA and the state affiliates.
Program Revenue - MBC's program revenues from

represent fees from contracts with
various program suppliers. Fees are recognized as revenue in the period in which they are
earned.
Rental Revenue - NEAPI rents office space to various tenants. Rental revenue from operating
leases is recognized on a straight-line basis over the term of the lease.
Income Taxes - NEA follows the authoritative guidance relating to accounting for uncertainty in
income taxes included in the Accounting Codification Standards (ASC) Topic on Income Taxes.
These provisions provide consistent guidance for the accounting for the uncertainty in income
taxes recognized in an entity's financial statements and prescribe a threshold of"more likely than
not" for recognition and derecognition of tax positions taken or expected to be taken in a tax
return. NEA believes that it has appropriate support for any tax positions taken and, as such,
does not have any uncertain tax positions that are material to the financial statements. NEA
Form 990, Return of Organization Exempt from Income Tax, for the years ended August 31,
2010 through 2012, are subject to examination by the Internal Revenue Service (IRS}, generally
for three years after they were filed.
Reclassifications - Certain amounts from the prior year have been reclassified to conform with
the current year presentation.
- 13 -
NOTE3.
INVESTMENTS
Investments, at fair value, consist of the following at August 31:

2014
Equity securities
Mutual funds - common stocks
Debt securities
Mutual funds - fixed income
Exchange traded funds
Total debt securities.
Total investments
NOTE4.
2013
17,185,956
$ 14,5362035
20,815,571
7,531,437
28,347 2008
15,799,567
7,537,732
23,337,299
45,532,964
$ 37,873,334
.NOTES RECEIVABLE
On May 16, 2009, NEA entered into a long-term promissory note agreement with the Indiana
State Teachers Association ("ISTA") to provide supplemental support and direct loans. The
promissory note was unsecured and bore interest at one half of one percent
the London
Interbank Offered Rate ("LIBOR") per annum. On January 13, 2014, the promissory note was
reduced to $15,000,000 and is payable in full on or before February 1, 2018. The new loan bears
a fixed interest rate of 2.5%. ISTA will receive an annual discount equivalent to the annual
interest accrued if all payments are received by due dates for the fiscal year. As of August 31,
2014 and 2013, the outstanding note balance including accrued interest is $13,500,000 and
$16,830,304, respectively. Due to the unsecure nature of the promissory note, NEA recognized
an uncollectible allowance of $6, 125,680 and $8, 100,000 for fiscal years ended August 31, 2014
and 2013, respectively.
NOTES.
. PROPERTY AND EQUIPMENT
Property and equipment consists of the following at August 31:

2014
Land:
NEA headquarters
MBC headquarters
NEA properties
Building and improvements:
NEA headquarters
MBC
NEA properties
Furniture, fixtures, and equipment
Software development costs
81,404,694
6,508,809
15,035,654
26,858,270
48,793,802
183,135,990
(126,002, 192)
Less accumulated depreciation and amortization

Total property and equipment
1,753,777
837,002
1,943,982
2013
- 14 -
57,133,798
1,753,777
837,002
1,943,982
79,727,724
6,452,841
14,901,835
25,580,749
47,077,425
178,275,335
(119,995,472)
58,279,863
NOTE 6.
COMMITMENTS AND CONTINGENCIES
MBC leases office space and personal property at a number of locations under noncancelable
operating leases expiring through 2017. Future minimum lease payments under these leases are
as follows:
Year. Ending August 31:
2015
2016
2017
66,375
21,469
5,796
Total future minimum lease payments
93,640
Rental expense for all operating leases was approximately $77,000 and $121,000 during 2014
and 2013, respectively.
NEA has been named as a party to a legal matter, the outcome of which cannot presently be
determined. In the opinion of management, an appropriate provision has been made to account
for probable losses and the ultimate resolution of this matter will not have a material impact on
NEA' s consolidated financial position or changes in net assets and cash flows.
Some of the employers participating in the multiemployer plan have employees that are covered
by collective bargaining agteements expiring in the next twelve months. The impacted
employers will be entering into negotiations with the covered employee groups.
The Department of Labor is conducting a review of certain issues surrounding the NEA
Members Insurance Plan of which NEA is the sponsor and administrator. The outcome of this
review is unknown at this time.
On September 8, 2011, the United States tax court issued its ruling in the matter of the National
Education Association of the United States ("NEA") v. Commissioner oflntemal Revenue. The
Tax Court's ruling affinned the Commissioner's assessments for the tax years at issue. In
response thereto, NEA paid total unrelated business income taxes for the affected tax years of
$1,080,813 and $1,434,610,
to the District of Columbia Office of Tax and Revenue
and the Internal Revenue Service ("IRS"). In fiscal year 2012, NEA pursued relief from the IRS
for a portion of the interest associated with the tax
On April 25, 2014, NEA
received notice from the IRS Appeals Office that it had granted NEA a partial abatement of the
disputed interest. As a result of the partial abatement, NEA does not anticipate any additional
liability due to the IRS.
- 15 -
NOTE 7
RETIREMENT BENEFITS
Employee's Retirement Plan of the National Education Association of the United States ..
NEA participates in a multiemployer, defined benefit retirement plan for NEA employees that
covers substantially all permanent employees. On June 1, 2009, the plan was amended to require
employee contributions at a rate of 3 .5% for employees hired by NEA on or after June 9, 2009.
NEA employs approximately 45.2% of the employees covered under the plan; the remaining
54.8% are employees of participating state and local affiliates ofNEA.
NEA contributes to the multiemployer pension plan jointly administered by NEA's management
and union representatives. The risk of participating in U.S. multiemployer pension plans is
different from single employer pension plans in the following aspects:
Assets contributed to the multiemployer plan by one employer may be used to

provide benefits of employment to other participating employers.
If a participating employer stops contributing to the plan, the unfunded obligations

of the plan may be borne by the remaining participating employers.
If NEA stops participating in its multiemployer pension plan, it may be required to

pay the plan an amount based on the underfunded status of the entire plan.
NEA 's participation in the above defined benefit plan for the years ended August 31, 2014, 2013
and 2012 is outlined in the following table. All information in the table is as of August 31 of the
relevant year unless otherwise noted. The Pension Protection Act ("PP A") zone status column
ranks the funded status of multiemployer pension plans depending upon a plan's current and
projected funding. The zone status is based on information that the NEA received from the plan.
Among other factors, the plan is in the Red Zone (Critical) if it has a current funded percentage
of less than 65%. A plan is in the Yell ow Zone (Endangered) or Orange Zone (Seriously
Endangered) if it has a current funded percentage of less than 80%, or projects a credit balance.
deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded
percentage greater than 80% and does not have a projected credit balance deficit within seven
years.
Funding Improvement Plan ("FIP")/Rehabilitation Plan ("RP") status column
indicates plans for which a FIP or RP is either pending or in place.
The following table contains information about NEA' s multiemployer pension plan for the years
ended December 31, 2013 and 2012.
Pemi:ln
Fund
Errpbycc's Re!Rnrit Plan

ofthc: Nalilnal Education
Associatim ofthc: Uoled
States
EIN/Pensi:ln Plan
Nuni>cr
530115260
Pensi:ln Prolecliln Acl

Zone StalUs Decenter 31
2013'
2012
Green
Green
F.iq>loyee Con1ribulilns
8/31/2014
19,681,283
__
(YIN_)_ _
Conlri>Ulions NF.A
8/31/2013
21.029.600
8/31/2012
23,719,211
-2013- -2012-
NEA currently has no intention of withdrawing from this multiemployer pension plan.
- 16 -
Expira1ion Date of
Collcc1ivcBarg;iiling
Agrecm:nl
AFSE6/l/2014 lo 5/31/2017;
IUOE 2/1/2014 to 1/31/2016:
NEASO 6/1/2012 to5/31/201S
NOTE 7.
RETIREMENT BENEFITS (CONTINUED)
NEA -40J(k) Retirement Savings Plan - NEA's employees are also eligible to participate in the
401(k) Retirement Savings Plan of the National Education Association (the "Plan") in which the.
employee can make voluntary, tax-deferred contributions within specified limits. The Plan was
established under the provisions of Internal Revenue Code Subsection 401(k) and has received a
favorable determination as to its tax status. NEA's contributions to the Plan, based on a set
percentage of employee contributions, amounted to $539,248 and $325,685 for the years ended
August 31, 2014 and 2013, respectively.
NEA - Postretirement Benefit Plan - In addition to providing pension benefits, NEA provides
certain healthcare and life insurance benefits to retirees. Prior to March 1, 2000, NEA provided
these benefits under a single emplo'yer defined posttetirement plan.
Effective March 1, 2000, NEA established and adopted the National Education Association and
Affiliate Retiree Health Plan (the "Plan") and Trust (the "Trust") for the purpose of providing
certain healthcare and life insurance benefits to eligible and retired employees of NEA and to
participating affiliates. The plan is a multiemployer postretirement benefits plan. The Internal
Revenue Service has approved the Plan and the Trust.
As a result of the adoption of the multiemployer plan, the Trust assumed the responsibility for
the payment of benefits and all future obligations under the Plan. NEA's liability under the single
employer plan as of March 1, 2000, which amounted to $29,427,901 was recognized as a
nonoperating charge in NEA' s consolidated statement of activities and changes in net assets. As
of August 3.1, 2014 and 2013, NEA net assets of$0 and $10,390,004, respectively were reserved
for postretirement benefit obligation.
Postretirement benefit expense under the multiemployer plan was $18,500,000 and $20,000,000
for the years ended August 31, 2014 and 2013, respectively.
MBC- 40J(k) Salary Deferral Plan -,NEA's Member Benefits Corporation ("MBC") maintains
a Section 40l(k) cash or deferred plan in which the employees can make voluntary, tax-deferred
contributions within specific limits. The Plan was established under the provision of the Internal
Revenue Code Subsection 401(k), and has received a favorable determination as to its tax status.
MBC's contributions to the Plan, based upon a set percentage of employee contributions,
amounted to $292,727 and $265,685, for the years ended August 31, 2014 and 2013,
respectively.
MBC....: Defined Contribution Plan - MBC maintains a Defined Contribution Plan and Trust,
which is noncontributory for MBC's employees, and covers substantially all'members of the
NEA Staff Organization ("NEASO") Collective Bargaining Unit. MBC contributes to the Plan a
percentage of compensation as set forth in a collective bargaining agreement with NEASO.
MBC's contributions to the Plan during the years ended August 31, 2014 and 2013 were
$713,376 and $658,931) respectively.
- 17 -
NOTE 7.
MBC-DeflnedBenefit Plan - MBC maintains a noncontributory defined benefit pension plan

covering substantially all employees not covered by a collective bargaining agreement. MBC has
an August 31 measurement date for its pension plan.
Benefit obligations, plan assets, and the funded status of the Plan at August 31 were as follows:
2014
2013
$ 24,514,664
$ 17,708,710
Fair value of plan investments
42,920,816
31,621,065
Funded status of the plan
18,406,152
Benefit obligation
13,912,355
The discount rate used in the calculation of the benefit obligation decreased from 5.00% to
4.25%.
Contributions to the Plan and benefits paid for the year ended August 31 were as follows:
2014
Employer contributions
Benefits paid
2013
6,743,272
237,079
3,180,424
217,306
Amounts recognized in the Statement of Financial Position consisted of:
N oncmrent assets
2014
2013
$ 18,406,152
$ 13,912,355
Amounts recognized in Accumulated Other Non-Operating Income consist of:

2014
Net actuarial loss

Prior service cost
Total (before tax effi:cts)
Tax etrect
3,200,885
3,672,379
2,801,567
2,001,697
6,873,264
4,803,264
(2,455,803)
(1,824,774)
$ - 4,417,461
- 18 -
2013
2,978;490
NOTE 7.
The accumulated benefit obligation is $21,933,192 and $15,757,068 atAugust 31, 2014 and
2013, respectively.
Net periodic benefit cost is $179 ,475 and $1,018,266 for the years ended August 31, 2014 and
2013, respectively.
Other changes in Plan assets and benefit obligations recognized in Other Non-Operating
Income were as follows:

2014
Net (gain) loss.
Prior service cost
Amortization of net gain
. Amortization of prior service cost
Total recognized in other non-operating
income
2013
$ (3,294,387)
399,318
2,420,560
(532,531)
(580,311)
(749,878)
Total recognized in net periodic benefit cost and

other non-operating income
2,070,000
$ (4,407,229)
2,249,475
$ (3,388,963)
Amounts expected to be recognized in Net Periodic Cost in the coming year are as follows:
2015
$ .694,399
Prior service cost recognition
Weighted-average assumptions used to determine benefit obligations at August 31 were as

.
Discount rate
Rate of salary increases
- 19 -
2014
2013
4.25%
4.00%
5.00%
4.00%
NOTE7.
Weighted-average assumptions used to determine net periodic benefit cost for the years ended
August 31 were as follows:
. Discount rate
Rate of salary increases
Expected long-term rate of return on assets
2014
2013
5.00%
4.00%
8.00%
4.25%
4.00%
8.00%
MBC determines the long-term expected rate of return on plan assets by examining historic
capital market returns, correlations between asset classes and the Plan's normal asset allocation.
Current and near-term market factors such as inflation and interest rates are then evaluated to
arrive at the expected return on Plan assets. Peer group, or benchrriarking data are also reviewed
to ensure a reasonable and appropriate return assumption.
MBC utilizes a total return investment approach based on modem portfolio theory. Multiple
asset classes are implemented in order to obtain the benefits of diversification and maximize
long-term total return for a given level of risk. Risk tolerance is developed by reviewing the
funded status 9f the plan, duration of the plan liabilities, the income and liquidity requirements,
legal .constraints, and the financial condition of MBC. The investment portfolio is comprised of a
diversified combination of equities, fixed income securities, alternative investments and cash
equivalents. MBC's investment policy states that the target allocations for plan assets are 60
percent equity securities, 22 percent fixed income securities, 10 percent alternative investments,
4 percent real estate assets and 4 percent cash equivalents. The aJlocation among equities and
fixed income securities is determined by prevailing market conditions and relative valuations
between asset cJasses. The Plan's financial condition is monitored on an ongoing basis by means
of quarterly investment portfolio reviews, an annual independent actuarial valuation, and
periodic asset/liability studies.
Pension plan allocations at August 31 were as foJlows:
Equities
Fixed income securitie.s
Alernative investments
Cash equivalents
Total
-20-
2014
2013
74%
19%
5%
2%
100%
75%
23%
- %
2%
100%
NOTE7.
The fair value ofMBC's pension plan assets at August 31, 2014 by asset cJass are as follows
(Levels defined in Note 14):
Fair Value Measurements at Reporting Date Using
Asset Class
Equity securities:
U.S. large-cap
U.S. mid-cap.
U.S. small-cap
REIT
Global equity
International
Emerging markets
Other investment' funds:
Equity long/short (a)
Multi-strategy mutual fund (b)
Fixed income securities:
U.S. fixed income
International fixed income
Alternative investments:
<;:ominglcd fund
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
$
669,945
Significant
Other
Observable
Inputs
(Level 2)
$
Significant
Unobservable
Inputs
(Level 3)
$
Total .
$
669,945
15,715,764
2,359,508
2,542,411
1,868,531
799,810
3,527,462
'1,361,589
15,715,764
2,359,508
2,542,411
1,868,531
799,810
3,527,462
1,361,589
2,359,581
1,613,906
2,359,581
1,613,906
5,587,422
2,514,887
5,587,422
2,514,887
$ 40,920,816
2,000,000
$ 2,000,000
2,000,000
$ ' 42,920,816
(a) This separately managed account class includes funds that by prospectus, have the
ability to take both long and short positions within the portfolio. The primary
investment vehicle is Exchange Traded Funds (ETFs). The manager of this fund has
the ability to rotate investments between various equity styles: value, growth and
blended; as well as multiple market capitalizations: large cap, mid cap, and small cap.
(b) This mutual fund class invests in multiple strategies, across multiple asset classes,
including but not limited to: global equities, global fixed income, REITS, and
commodities, in an effort to diversify risks and reduce volatility.
- 21 -
NOTE7.

'
A reconciliation of fair value measurements using significant unobservable inputs (Level 3) as of
August 31, 2014 was as follows:

Changes in Level 3 Category
Comingled fi.md
Beginning balance - 9/1/2013

Purchases
Ending balance - 8/31/2014
$
$
2,000,000
2,000,000
The fair value of MBC's pension plan assets at August 31, 2013 by asset class are as follows:
Asset Class
Equity securities:
U.S. large-cap
U.S. mid-cap
U.S. small-cap
REIT
Global equity
International
Emerging markets
Other investment funds:
Equity long/short (a)
Equity market neutral (b)
Multi-strategy mutual fund (c)
Fixed income securities:
U.S. fixed income
International fixed income
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
$
556,396
Significant
Other
Observable
Inputs
(Level 2)
$
Significant
Unobservable
Inputs
(Level 3)
$
Total
$
556,396
11,713,624
2,165,293
1,532,798
1,241,509
653,341
2,326,573
692,706
11,713,624
2,165,293
1,532,798
1,241,509
653,341
2,326,573
692,706
1,233,456
633,131
1,727,950
1,233,456
633,131
1,727,950
2,162,334
31,621,065
4,981,954
2,162,334
31,621,065
(a) This separately managed account class includes funds that by prospectus, have the
ability to take both long and short positions within the portfolio.The primary
investment vehicle is Exchange Traded Funds (ETFs). The manager of this fund has
the ability to rotate investments between various equity styles: value, growth and
blended; as well as multiple market capitalizations: large cap, mid cap, and smaU cap.
-22-
NOTE7.
(b) This mutual fund class includes funds that invest in strategies that match long and
short positions in different U.S. common stocks. The managers also employ other
strategies, such as merger arbitrage.
(c) This mutual fund class invests in multiple strategies, across multiple asset classes,
including but not limited to: global equities; global fixed income, REITS, and
commodities, in an effort to diversify risks and reduce volatility
The following estimates and assumptions were used to detennine the fair value of each class of
financial instruments listed above.
Cash equivalents - Cash equivalents include cash deposits in investment funds,
money market funds, and short-tenn U.S. Treasury securities, which are actively
traded. Cash equivalents are priced using independent market prices in the primary
trading market, and are classified as Level 1based on the availability of quotes for
identical assets.
Equity securities - Equity investments include stocks, separately held accounts, and
mutual funds. These assets, which are grouped by investment objective, consist of
publicly traded securities, diversified globally, and are classified as Level I.
Fixed income securities -These assets include mutual funds with fixed income
portfolios. These assets are valued using market prices, such as broker quotes, for
the same instruments; as these securities typically traded in active markets, they are
categorized as Level 1.
Alternative investments - Valued based on infonnation provided by Fund manager.
For fiscal year 2015, MBC expects to contribute the maximum deductible amount to its pension
plan as determined by the January I, 2014, actuarial valuation.
Benefit payments expected to be paid over the next five years and accumulated over the five
years thereafter are as follows as of August 31:
2015
2016
2017
2018
2019
2020-2024.
- 23 -
431,723
604,633
773,676
933,694
1,066,875
'7,012,338
NOTES.
NATIONAL EDUCATION EMPLOYEES ASSISTANCE FUND, INC.
The National Education Employees Assistance Fund, Inc. ("NEEAF") is a nonprofit corporation
established for the purpose of providing financial and other assistance to member organizations
and their individual members involved in disputes over terms and conditions of employment. In
this capacity, NEEAF, from time to time, has guaranteed loans made by lending institutions to
members who were involved in such disputes. These loans are collateralized by letters of credit
from those state affiliates that are members ofNEEAF. NEA commits the unrestricted resources
of the General Operating Fund to fulfill its obligation. NEA's commitment and the state
affiliate's line of credit is approximately $8,001,002. In the event of default on a loan, the bylaws
ofNEEAF provide that the bank shall first draw upon the letter of credit of the state affiliate
from which the funds were transmitted and, thereafter, proportionately from all other letters of
credit and/or lines of credit.
NOTE9.
THE NEA FOUNDATION FOR THE IMPROVEMENT OF EDUCATION
The NEA Foundation for the Improvement of Education ("NFIE") was created in 1969 by NEA
as a tax-exempt public charity to improve the quality of public education in the United States.
The NFIE has a separate Board of Directors and operates independently ofNEA. Accordingly,
financial statements do not include the activities ofNFIE.
the
The NFIE empowers public education employees to innovate, take risks, and become agents for
change to improve teaching and learning in our society.
During the years ended August 31, 2014 and 2013, payments totaling $1,890,642 and
$1,931,613, respectively, were made to NFIE for an endowment that will help fund programsto
meet critical needs of students and education employees in years to come. Such amounts are
reflected as reductions in "NEA Programs-Dues" in the Consolidated Statements of Activities
and Changes in Net Assets for the years ended August 31, 2014 and 2013.
NOTE 10.
NEA HEALTH INFORMATION NETWORK
The NEA Health Infonnation Network

a legally separate 501 (c)(3) not-for-profit
organization, was created in 1987 to provide a link between the education and health professions
to assure that public school employees and their students have the knowledge and skills
necessary to make decisions that enhance the quality of their lives, improve the environment in
which they work and learn, and build relationships within the communities they serve.
NEA-HIN manages and implements programs that provide training, technical
information, and referrals for NEA members and staff on a variety of health and safety issues
affecting school employees and students. NEA-HIN secures funds from public and private
sources to implement these programs.
- 24 -
NOTE10.
NEA HEALTH INFORMATION NETWORK (CONTINUED)
NEA-HIN establishes collaborative partnerships with other public and private entities to enhance
the content and scope of its activities and to bring the education employee/student perspective
into the planning and development process of relevant health initiatives at the national, state, and
local levels.
NEA's appropriations for NEA-HIN for both years ended August 31, 2014 and 2013 were
$550,000.
NOTE 11.
NEA MEMBERS INSURANCE TRUST
The.National Education Association Members Insurance Trust ("NEA-MIT") was organized to

provide certain employee welfare benefits to NEA members and their dependents, pursuant to
the NEA Members Insurance Plan.
NEA is the sponsor and administrator of the welfare plans that NEA-MIT provides. NBA may
appoint and remove the trustees ofNEA-MIT. NEA-MIT maintains an agreement with MBC to
provide administrative and promotional services for the programs.
NEA and NEA-MIT have an agreement whereby NEA provided systems administration,
maintenance, software development and facilities management in the amount of $527 ,862 and
$810,803 for the years ended August 31, 2014 and 2013, respectively.
NOTE 12.
INCOME TAXES
Under provisions of Section 501 ( c) of the Internal Revenue Code and the applicable income tax
regulations of the District of Columbia, NEA is exempt from taxes on income, other than taxes
on unrelated business income.
MBC follows the liability method of accounting for income taxes as required by the FASB
Accounting Standards Income Taxes. Income tax expense is recognized based on the amount of
income taxes currently payable or refundable plus the net change during the year in the deferred
tax liability or asset. The current or deferred tax consequences of all events that have been
recognized in the consolidated financial statements are measured based on provisions of enacted
tax law.
-25 -
NOTE 12.
INCOME TAXES (CONTINUED)
The provision for Federal and State income taxes is included in MBC's support service expenses
on the consolidated statements of activities and changes in net assets and consists of the
following:
2014
Current Provision
Federal
State
Deferred Provision
Federal
State
2013
(540,140)
{59,040)
{599,180)
2,716,291
{277,227).
2,439,064
Total
$ 1,839,884
582,684
148,077
730,761
578,569
697,290.
1,275,859
$ 2,006,620
A reconciliation of income taxes at the statutory rate to the provision for income taxes in the
financial statements is as follows:
Federal income tax provision at the statutory rate

State income tax expense; net of federal benefit
Permanent differences
Temporary differences
Total
2014
2013
$ 2,099,488
179,729
(37,668)
$ 1,395,897
218,401
52,781
339,541
$ 2,006,620
$ 1,839,884
At August 31, 2014 and 2013, the deferred tax assets and liabilities represent the tax effects of
the following temporary differences:
2014
Assets:
Deferred income
Accrued vacation
Bad debt
State taxes
Other
Gross deferred tax assets

Liabilities:
Pension costs
Other
Gross deferred tax liabilities
Total
-26:.
2013
$
259,387
20,517
368,856
17,583
262,155
314,649
197,705
463,113
34,548
666,343
1,272,170
(7 ,069;344)
(41,978)
(5,851,350)
{46,396)
(7,111,322)
{5,897,746)
$ (6,444,979)
$ (4,625,576)
NOTE 12.
INCOME TAXES (CONTINUED)
Amounts recognized in the consolidated statements of financial positions at August 31:

2014
Current deferred tax asset

Current deferred tax liability
329,580
(46,396)
283,184
389,373
{7,069,344)
{6,679,971)
Noncurrent deferred tax asset

Noncurrent deferred tax liability
Total
NOTE 13.
276,970
(41,978)
234,992
2013
942,590
{5,851,350)
(4,908,760)
CHANGE IN PENSION OBLIGATION OTHER THAN NET PERIODIC PENSION COST
The tax effects allocated to each component of the change in actuarial gain (loss) from the MBC
defined benefit plan and other charge for the year ended August 31, 2014 and 2013 are:
2014
Tax
(Expense)
or Benefit
Before-Tax
Amount
Defined Benefit Pension Plan:
Net .gain/(Joss) arising _during period
Amendments/prior Service cost
Less: amortization of net gain included
in net periodic pension cost
Less: amortization of prior service cost
included in net periodic pension cost
Total pension related other
non-operating expense
(399,318)
(2,420,560)
{224,478)
' 749,878
$
(2,070,000)
119,537
724,601
619,660
Net-of-tax
Amount
(279,781)
(1,695,959)
525,400
$ ( 1,450,340)
2013
Defined Benefit P.ension Plan:

Net gain/(loss) arising during period
Less: amortization of net gain included
in net periodic pension cost
Less: amortization of prior service cost
included in net periodic pension cost
Total pension related other
non-operating expense
Before-Tax
Amount
Tax
(Expense)
or Benefit
Net-of-tax
Amount
$ 3,294,387
$ (1,146,339)
$ 2,148,048
532,531
(185,304)
347,227
580,311
(201,929)
378,382
$ 4,407,229
- 27 -
$ 2,873,657
NOTE 14.
FAIR VALUE MEASUREMENTS
Accounting standards for fair value measurements defines fair value, establishes a framework for
measuring fair value and enhances disclosures about fair value measurements. Accounting
standards for fair value measurements defines fair value as the price that would be received to
sell an asset or paid to transfer a liability in an orderly transaction between market participants at
the measurement date. That framework provides a fair value hierarchy that prioritizes the inputs
to the valuation techniques used to measure fair value. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 inputs) and
the lowest priority to measurements involving significant unobservable inputs (Level 3 inputs).
The three levels of the hierarchy are as follows:
Level 1 - Observable inputs such as quoted prices for identical assets or liabilities in
active markets;
Level 2 - Inputs other than the quoted prices in active markets that are observable,
either directly or indirectly such as quoted prices for similar assets or liabilities in
active markets, quoted prices for identical or similar assets or liabilities in in,active
markets, inputs other than quoted prices that are observable or inputs that are
derived principally from or corroborated by observable market data by correlation or
other means; and
Level 3 - UnobserVable inputs in which there is little or no market data, which
requires management to develop its own assumptions.
The asset's or liability's categorization within the valuation hierarchy based upon the lowest
level of input that is significant to their fair value measurement. Valuation techniques used need
to maximize the use of observable inputs and minimize the use of unobservable inputs.
The following is a description cifthe valuation techniques used for assets measured at fair value:
Money market funds -Valued at cost, which approximates fair value. Valuation is
from an unadjusted quoted price;
Exchange traded funds -Valued at the closing price reported in an active market in
which the securities are traded; and
Mutual fonds - equity and fixed income securities -Valued at trading values on an
exchange and is calculated at the end of each business day.
The methods described above may produce a fair value calculation that may not be indicative of
net realizable value or reflective of future fair values. Furthermore, while NEA believes its
valuation methods are appropriate and consistent with other market participants, the use of
different methodologies or assumptiops to determine the fair value of certain financial
instruments could result in a different fair value measurement at the reporting date.
- 28 -
NOTE14.
FAIR VALUE MEASUREMENTS (CONTINUED)
The following table presents NEA's fair value hierarchy for financial assets measured on a
recurring basis at August 31, 2014:
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
Money market funds
Mutual funds - equity securities
Growth funds
Value funds
Blend fund
Mutual funds - fixed income securities
U.S. fixed income fund
International fixed income fund
950,996
7,531,437
Significant
Unobservable
Inputs .
(Level 3)
$
Total
$
950,996
7,531,437
6,433,292
9,097,003
l,655,661
6,433,292
9,097,003
1,655,661
20,346,264
469,307
20,346,264
469,307
46,483,960
Significant Other
Observable
Inputs
(Level 2)
$ 46,483,960
The following table presents NEA's fair value hierarchy for financial assets measured on a
recurring basis at August 31, 2013:
Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
Money market funds
Mutual funds- equity securities
Growth funds
Value funds
Blended fund
Mutual funds- fixed income securities
U.S. fixed income fund
International fixed income fund
631,696
7,537,732
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
8,141,715
5,384,885 .
1,009,435
15,368,248
431,319
$ 38,505,030
631,696
7,537,732
8,141,715
5,384,885
1,009,435
-29-
Total
15,368,248
431,319
$ 38,505,030
NOTE 15.
DESIGNATED NET ASSETS
Designated net assets consist of the following at August 31:

2014
$
Advocacy Fund
National Education Etq>loyees Assistance Fund
Uniserv F\Dld
Special Dues Ballot Fund
Special Dues Media Fund
Great Public
FUQ<l
Capital
Fmd
External Partnership Grants
NOTE 16.
8,346,441
125,045
640,301
42,928,322
34,476,819
4,267,300
30,304,170
(12,934)
121,075,464
2013
$
4,396,580
130,101
654,221
23,
27,319,542
3,000,000
32,115,015
90,769,041
SUBSEQUENT EVENTS .
Management has performed a subsequent event review from September l, 2014 to December 2,
2014; the date that the consolidated financial statements were available to ,be issued. This review
revealed no new material event or transaction which would require an additional adjustment or
disclosure in the accompanying consolidated financial statements.
- 30 -
SUPPLEMENTAL NOTES AND SCHEDULES
NATIONAL EDUCATION. ASSOCIATION

SUPPLEMENTAL SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE
EXPENDITURES
Chargeable
Expenditure
Nonchargeable
Expenditure
Total
Expenditures
EXPENSES BY STRATEGIC GOALS AND CORE FUNCTION AREAS

Strong affiliates for great public schools
I. Capacity building efforts lhat seek to achieve lhe following:
-partner with affiliales to in1egra1e, collecl and manage data to identify lhreats and opponunities
--partner with affiliates 10 achieve financial slability and sustainable fiscal health
-partner wilh affiliales to conduct polilical, legislative and issue campaigns
-joinlly develop strategies, enlerprise infrastruclure and protocols lo align and manage member
interactions across the associalion
--develop national slralegies and messages 10 educale lhc public about NEA's efforts lo
support public educalion
Tolal strong affiliates for greal public schools
436,403
46,702,900
47,139,303
436,403
46,702,900
47,139,303
i,458,279
547,908
2,006,187
Uniting the nation for great public schools

I. Create the next generation of success in priority schools
2. Create the next generalion of sludent success, educalion professionals,
and professional praclice
3. Creale lhe nexl generation of union leadership
4. Creale the next generation of communication strategies
Total uniting lhe nation for greal public schools
i,838,156
743,474
2.189,219
9,998
8,902,424
2,183,402
2,58 1,630
5.495,652
12.377,208
17,872.860
66,014
1,323,203
1,389,2 17
1,030,731
807,485
1,838.216
348,088
2,094,834
1,522,932
2,032.562
1,871,020
4,127,396
3,539,667
5,686,182
9,225,849
J,091,643
2,193.400
Research, policy and practice

I. Advocate for federal legislation and regulations lhal enhance sludent learning
and workforce qualily
2. Provide resources, technical assistance, !raining and support 10 affiliates to
achieve improvements in teaching and learning
3. Build, maintain, and slrengthen partnerships and relationships with external organizations
4. Provide research, information and expertise to affil iates, leaders, members and staff
Total research, policy and practice
- 31 -

SUPPLEMENT AL SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE
EXPENDITURES (CONTINUED)
Chargeable
Expenditure
Total
Expenditures
Nonchargeable
Expenditure
Organizing
I. Membership and organizing that seek to achieve the following:
--Grow NEA membership through research-based cal\lpaigns in targeted and local states
--Grow NEA membership through young member engagement
--Develop affi liate leaders and staff skills to thrive in a changing internal and
external environment
--Strengthen and align local stale and NEA research and techno logical infrastructures
lo support targeted member engagement, retention, and recruitment
--Assisi stale and local
lo develop operational systems
61.159.699
6 l.1 59,699
Total organizing
40,820.566
101,980,265
40,820,566
I 01,980,265
3,723,410
3. 723.4 IO
31,484,819
7,517,093
39,001,903
14,773
11,973,598
I 1,988,371
Advocacy and Outreach

I . Support the Association's efforts
10
achieve great public schools through federal
and state legislution

2. Provide advocacy too ls, legal services and insurance programs lo protect
the rights ofmcmbcrs and to attract and retain a high quality workforce
3. C'ollaborale with outside partners within ethnic minority communities to
advance NEA's strategic goals, mission, vision, core va lues, and social justice and
civi l rights agenda in public schools
4. Conduct events to address current trends wit h a direct focus
10
protect
member rights, support struggling publi c schools and recognize ethnic and
minority accomplishments
Total advocacy and outreach
- 32 -
395.262
825,739
1,221,001
31 ;894,845
24,039,840
55,934,685
NATIONAL EDUCATIONASSOCIATION
. OF THE UNITED STATES AND SUBSIDIARIES
FOR THE YEAR ENDED AUGUST
31 , 2014
Chargeable
Expenditure
Nonchargeable
Expenditure
Total
Expenditures
Communications
I. Design state-of-the-art campaigns that inform and engage members and
targeted audiences to advance public education
383,583
383,583
2. Design nafional education reform and student success campaigns that
942,212
942,212
1,442,972
1,442,972
238,715
238,715
2,548,I04
27,739,148
30,287,252
2,548, 104
30,746,630
33,294,734
5.741,5 16
8,52(031
14,265,547
5,108,371
2,072,938
7, 181 ,309
8,250,772
11 ,941,6 16
20, 192,388
advance the Association messaging and strengthens the NEA brand

3. Design strategic campaigns that advance the Association's vision, mission,
values and engage members, internal and external audiences in positive, proactive communication
4. Develop strategic and tactical communication support for NEA
and affiliate organizing campaigns
5 Develop integrated media and digital engagement activities, develop and

disseminate print publications, and design and produce creative serv ices
Total communications
Business Operations
I. Prdvide financial and legal support to NEA and affi liate lo enhance ability to
conduct Association
and meet regulatory requirements
2. Provide human resources support to workforce planning and manage human capital operations
3. Provide infrastructure and organization support to lead, direct , and align NEA's program
and services
4. Provide organization and strategy development by conducting on-going
Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis
814,995
8 14,995
5. Provide technology support lo applications, systems, infrastructure and technology-related

products and services for current and future needs of the delivery of Association
6. Provide facility management, operational support , meeting logistics and print media production
7. Partner with NEA member benefits on non-dues revenue properties
8,839,507
42,326,082
Total business operations
13,448,712
98 1,036
(1.404)
13,570,92 1
36,966,929
- 33 -
22,288,219
14,551,957
( 1,404)
79,293,011

QF THE UNITED STATES AND SUBSIDIARIES
31, 2014
Chargeable
Expenditure
Nonchargeable
Expenditure
Total
Expenditures
Governance
I. Facilitate and support well-infonned decision making by the executive officers,
executive committees, board of directors, and representative assembly
2. Facilitate and support well- infonned deliberations of appointed committees and councils
5.625,830
1,330,581
6,956,411
172,029
300,191
472,220
1,311,877
1,943,612
3,255,489
597,025
1,726,989
2,324,014
5,301.373
13,011.745
3. Develop activist leadersh ip to design and plan national leadership conferences

that will incorp<irate the core curriculum and meet the unique needs ofNEA's diverse membership
4. Provide strong national and global leadership engagement and influence to
strengthen NEA's alliances with US and international labor unions and advance NEA's goals
5. Innovate o'pcrationsand manage resources to promote alignment, efficiency and

fiscal stewardship and consistently implement governance policies and practices
3,611
Total governance
3.611
7,710,372
TOTAL EXPENDITURES- SUPPLEMENT SCHEDULE NOTE 4
- 34 -
155.110,824
202,64 I ,628
357,752,452

OF THE UNITED STATES AND.SUBSIDIARIESSUPPLEMENTAL SCHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE
31, 2014
C hargeable
Expenditure
Nonchargeable
Expenditu re
Total
Expenditures
EXPENSES BY STRATEGIC GOALS AND CORE FUNCTION AREAS

Strong affiliates for great public schools
I. Capacity building efforts that seek 10 achieve the following:
I. I
Partner with affilitates to integrate, collect and manage data to identify
threats and opportunities and to connect and activate our members.
I .2
Partner with affiliates lo achieve financial stbility and sustainable fiscal
health throuf:lh efficient revenue collection systems, timely performance
monitoring systems, and effective training for staff, management and
leaders at ail levels of the association.
1.3
Partner with affiliates to conduct political, legislative and issue campaigns
threat and
that build association capacity, target areas
opportunity, and seek legislative outcomes that spport great public
schools and sustainable organizational power.
1.4
Jointly develop strategies, enterprise infrastructure and protocols to
align and manage member interactions across the association to
increase the quality of member engagement, avoid duplicative efforts and
increase the depth of relationships between NEA and its members.
1.5
Develop national strategies and messages to educate the public
about NEA's efforts to support public education.
Total capacity building efforts

Uniting the nation for great public schools
I. Create the next generation of success in priority schools
Create the next generation of success in priority schools - Develop initiatives
I .I
I) build the capacity of our local affiiiates;.2) i.117prove the skills, knowledge,
linguistic (ELL) and cultural competence of educators; 3) improve the
conditions of teaching and learning; and 4) create partnerships with ethnic
minority organizations, parents and other community groups to support
students and families in priority schools.
Total create the next generation of success in priority schools
2.
Create the next generation of student success, education professionals,

and professional practice
2.1
Create the next generation of student success - Mobilize NEA education
professiona ls to ensure student success by securing community support
for whole-child initiatives, and by proposing authentic accountability
systems that promote equity, highlight progress, properly
problems,
and provide appropriate assistance.
98,093
307,778
405 ,87 1
3 17,670
153,596
47 1,266
20,640
45,702,3 12
45,722,952
225,036
225 ,036
314, 178
3 14, 178
436 403
46,702 ,900
47, 139,303
10
1,458,279
547,908
2,006, 187
1,45 8,279
547,908
2 006, 187
38,303
43, 773
82,076

31, 2014
Chargeable
Expenditure
2.2
2.3
Create the next generation of professionals - Develop initiatives and

partnerships to foster the next generation of education professionals by
changing policy and practice to recruit talent into the professions,
raise the bar for entry, and improve preparation.
Create the next generation of professional practice - Through initiatives
. and partnerships, change policy and practice to ensure quality professional
development, meaningful career paths, improved compensation systems, and
comprehensive assessment and evaluation systems.
Total create the next generation of student success, educa'tion professionals and
professional practice
3.
Create the next generation of union leadersh ip

3.1
Create the next generation of union leadership - Foster union-led professional
transformation by preparing both accomplished educators and association
activists to lead the development of student-centered policies and practices.
Total create the

4.
generation of union leadership
Create the next generation of communication strategies

4.1
Create the next generation of communication
to unite the nation for
great public schools - Develop mechanisms for collecting and communicating
affiliates' strategies and lessons they've learned about changing the role of the
union, improving the quality of educators, and improving student learning.
Total create the next generation of communication strategies
1,070,766
Nonchargeable
Expenditure
513,945
Total
Expenditures
1,584,711
729 087
185 756
914 843
1,838, 156
743 474
2,581,630
2, 189.219
8,902.424
11,091,643
2,189,219
8,902.424
11,091,643
9,998
2,183,402
2,193,400
9,998
2,183,402
2,193,400
66,014
1,323,203
1,389,217
66,014
1,323,203
1,389,217
434,068
450,231
884,299
Research, policy, and practice

I.
Advocate for federill lcgislation and regulations that enhance slUdent learning
and workforce quality
I. I
Pol.icy advancement - Advocate for federal legislation and regulations that
enhance student learning and workforce quality through good po licies and
practices.
Total advocate for federal legislation and regulations that enhance student learning
and workforce quality
2.
Provide resources, technical assistance, training and support to affiliates to

2.1
Affiliate support - Provide resources, technical assistance, and training to
affiliates 10 support their efforts to achieve improvements in
teaching and learning.
- 36 -

OF THE UNITED.STATES AND SUBSIDIARIES
SUPPLEMENTAL SCHEDULE OF
FEE CHARGEABLE AND NONCHARGEABLE
31, 2014
Chargeable
Expenditure
2.2
Leadership training - Provide training and professional development to

increase the effectiveness ofNEA leaders and members as advocates for
great public schools.
Total provide resources, technical assistance, training and support to afliliates to

3.
Build, maintain, and strengthen partnerships and relationships with external organizations
3. I
Partnerships and relationships - Build, maintain and strengthen partnerships and
relationships with external organizations to advance NEA's criteria for
great public schools.
Total build, maintain, and strengthen partnerships and relationships with external organizations
4.
Provide research, infonnation and expertise to affiliates, leaders, members and staff
4. I
Research - Provide research, infonnation and expertise to affiliates, leaders,
members and staff to support their efforts to improve teaching and learning.
Total provide research, infonnation and expertise to affiliates, leaders, members and staff
596,663
l,Q30,731
Noacharge1ble
Expenditure
357,254
Total
Expenditures
___
807 485
1,838,216
348 088
1,522,932
1,871 ,020
348 088
1,522,932
1,871,020
2,094,834
2,032,562
4,127,396
2,094,834
2,032,562
4 127,396
25,128,163
25,128,163
1,641,360
1,641,360
1,870,264
3,234,474
394,297
394,297
'
Organizing
I. Membership and organizing that seek to achieve the following:
I. I
Membership: Grow the NEA membership through research-based campaigns in
1.2
1.3
1.4
1.5
targeted locals and states that test and assess strategies for membership t,>Towth,
organizing culture, and Association relevance to members. Share successful
strategies/resources with all affiliates.
Young member engagement: Work in partnership with state and local alliliates
to develop a research-based model for a 10 year pipeline of membership
engagement within the Association, following members from the age of20-30.
Leadership and staff development : Develop the necessary skills within our
afliliate leaders and staff to thrive as organizers in a changing internal and
external environment.
Data and research: Strengthen and align local, state and NEA research, data
collection, data management, expertise, and technological infrastructures to
support targeted member engagement, retention and recruitment.
Operations support to affiliates: Assist state and local afliliates to develop
operational systems capable of adapting and innovating in a changing
internal and external environment.
Total membership and organizing
1,364,2 10
59,795,489
11,786,482
71 581,971
61,159,699
40i820,566
I 01 1980,265

OF THE UNITED ST ATES AND SUBSIDIARIES
FoR THE YEAR ENDED AUGUST
31 , 2014
Chargeable
Expendilure
Nonchargeable
Expenditure
Tot1l
Expenditures
Advocacy and Outreach

I.
Support the Association's efforts to achieve great public schools through federal
and state legislation
I. I
NEA's Government Relations department supports the Assoc iation's efforts to
achieve great public schools through federal and state legislation and policies
to strengthen public schools, colleges, and uni versities on behal f of the students
who are served in those schools and campuses.
Total support the Association's efforts to achieve great public schools through.federal
and state legislation
2.
Provide advocacy tools, legal services and insurance programs to protect

the rights of members and td attract and retain a high quality workforce
2. 1 Provide leadership, policy development and analysis, and advocacy tools
to state and loca l affi liates to mobilize and organize members to fend off
attacks to members' rights and promote strategies to improve education
outcomes for students in marginalized and under-served populations
(ELL, minority students, LGBTQ).
2.2
Provide support and technical assistance to affili ates and NEA departments
health care,
to promote and defend collective baq;aining, adequate
retirement security, and equitable and transparent compensation practices
that attract anci retain a high quality workforce.
2.3
Adm inister the legal services programs to strengthen affiliate capacity to defend
and advance the rig)lts of members.
2.4
Administer and promote NEA insurance programs that support member recruitment,
protect members, leaders, and stuff from professional liability, protect affiliates
from fiduciary losses, and indemni fy affiliates aga inst errors and om issions.
Total provide advocacy tools, legal services and insurance programs to protect
the rights of members and to attract and retain a high qual ity workforce
3: Co llaborate with outside partners within ethnic minority communities to

advance NEA's strategic goais, mission, vision, core values, and social-justice and
civil rights agenda in public schools
3. 1 Collaborate with out side partners to further NEA's social justice and
civi l rights agenda in public schools.
3.2
Promote and support external partnerships that advance NEA's policies on
compensation, healthcare, and retirement security.
3.3
Identi fy und connect wi th partners within the ethnic minority communities that are
immersed in work involving parenlal e.ngagcment and community organizing.
- 38 -
3,723,410
_$_ _ _
3,723,410
3,723,410
1,852,004
47,031
1,899,035
1,767,476
294,199
2,061,675
15,394,287
7, 175,863
22,570,150
12,471.043
12,471,043
31484 810
7,517,093
39,001,903
7,261
122,392
129,653
319,543
319,543
699,318
699,318

S UPPLEMENTAL S CHEDULE OF AGENCY FEE CHARGEABLE AND NONCHARGEABLE
FOR THE YEAR E N DED AUGUST
31, 2014
Chargeable
Expenditure
3.4
Methodical strategic approach 10 outreach 1ha1 leads lo meaningful partnershi ps

and organizing opportunities which focus on ethnic minority communities to
advance our strategic goals, mission, vision, and core values.
Total collaborate with o utside partners within ethnic minority communities lo

advance NEA's strategic goals, mission, vision, core values, and social justice and
civil rights agenda in public schools
4.
Conduct events 10 address current trends with a direct focus 10 protect

me mber rights, support struggling public schools and recognize e thnic and
minority accomplishmenls
4.1
Provide leadership and advocacy development in slate and loca'1a mlia1cs
to mobilize and organize members lo fend off allacks 10 members' ri ghts and
pro mote strategies lo enhance public educal ion.
4.2
Conduct the Human and Civil Rights pre-RA and NEA Board events 10
address trends with a direct focus around mobilizing our me mbers in an efTort 10
fend off public education attacks; prov ide resources
in support of
struggling public schools; and recognize accomplishments of wo men, LGBTQ, and
ethnic minorities.
Total
events 10 address current tre nds with a d irect foc us 10 protect
member rights, support struggling public schools and recognize ethnic a nd
minority accomplishmenrs
Communications
I. Design slale-of-lhe-art campaigns that in form and engage members and
targeted audiences 10 advance public education
Produce and distribute reliable, well-crafl ed s1a1e-o f-1he-art communications 1ha1
I. I
inform and e ngage NEA members and othe r target audiences of the Assoc iation's
acti vities 10 ad vance public education, counter the efforts of opponents of public
education and public c;mployec ad vocacy and strengthen the NEA brand.
Design and construe! stra tegic communications campaigns Iha! help defend stale
1.2
affiliates facing challenges and opposition or th reats within their state legislatures.
7 5 12
14 773
Nonchargeable
Expenditure
10,832,345
TotI
Expenditures
10,839,857
11,973,598
11 988371
6,693
6,693
395 262
8 19 046
1,2 14,30 8
395,262
825,739
I 22 1 001
237 ,2 11
237,2 11
146 372
146 372
383,583
383 583
11 9,843
119,843
Total design s1ate-o f-1he-art campaigns that in form and engage members and
targeted audiences lo adva nce pub lic education
2.
Design national education reform a nd student success campaigns Iha!

adva nce the Association messaging and strengthens lhe N EA brand
2. 1
Increase the capacity of association leaders, members and staff 10 communicate
research based messages effectively to ta rget audiences.
- 39 -
NATIONAL EDUCATION AssocIATION

FoR THE YEAR ENDED AUGUST
31, 2014
Chargeable
Expenditure
2.2
2.3
Design and execute rapid response and strategic communication campaigns that
advance Association messaging and strengthens the NEA brand via components
developed through the use of up-to-date researc h, planning and evaluation data.
Design and execute a systematic strategy to in fonn the opinion elite and
other key audiences ofNE A's Priority Schools Campaign.
789,581
Total
Expenditures
789,581
32,788
32 788
942,212
942 212
1,442,972
I 442 972
1,442,972
I 442 972
238 715
238 715
238 715
238 715
440,188
552,351
1,0 19,547
920,664
55,735
18,222,073
1,277,545
5,251,240
1,621,193
925,645
55,735
18,222,073
1,717,733
5,803,591
2,640,740
531 037
390 698
921,735
2,548, 104
27,739, 148
30,287,252
Total design national education refonn and student success campaigns that
advance the Association messaging arid strengthens the NEA brand
3.
Nonchargeable
Expenditure
Design strategic campaigns that advance the Association's vision, mission, values and
engage members, interna l and external audiences in positive, proactive communication
3.1
Design and execute strategic communication campaigns, spec ial projects and events,
that advance the Assoc iation's vision, mission, and values, and effectively
communicate the Association 's key messages, strengthen the NEA brand and
reputation, and engage members in positive, proactive communication
and outreach with internal and external audiences.
Total design ,strategic campaigns that advance the Association's vision, mission, values and
engage members, internal and ex ternal audiences in positive, proactive communication
4.
Develop strategic and tactical communication support for NEA

and affi liate organizing campaigns
4.1
The provision of holistic strategic and tactical communication support for NEA and
affiliate organizing campaigns.
Total develop strateg ic and tactica l communication support for NEA

and afliliat e organizi ng campaigns
5.
Develop integrated media and digital engagement activities, develop and

disseminate print publications, and design and produce creative services
5.1
Media Strat egy - Develop and execute med ia strategy.
5.2
Message and Intel - Develop message and intel.
5.3
Integrated Media - Conceive and implement integrated communications.
5.4
Plan, develop, execute and measure digito l engagement acti vities.
5.5
Develop and disseminate print publications.
5.6
Design and produce creati ve services.
5.7
Develop and execute strategic communications programs to engage delegates,
members and ex ternal audiences during the Representative Assembly and
provide communicat ions support fo r internal clients.
Total develop integrated media and digital engagement activities, develop and
disseminate print publications, and design and p;oduce creative services
- 40-
4,981

31, 2014
Chargeable
Expenditure
Nonchargeable
Expenditure
Total
Expenditures
Business operations
I.
Provide financial and legal support to NEA and affi liate to enhance ability to
conduct Association business and meet regulatory requirements
1.1
Systems and data: Provide ongoing support for NEA and affiliates through the
deployment of Association business systems and software applications.
Promote NEA and affiliate fiscal health through training and advisory services
1.2
for staff and governance that enhances their ability to conduct Association
business and meet regulatory requirements.
I .3
Manage and project the NEA's finances by monitoring revenues and
expenditures and analyzing factors that affect revenue streams and cause
expenditure variances.
1.4
Reduce loss and increase efficiency by executing a comprehensive risk
management program that includes audits, compliance monitoring, and
information security.
1.5
Provide legal advice, counseling, agency fee support and support for
the NEA Fund for Children and Public Education and Federal Election
Commission matters.
Total provide financial and legal support to NEA and affiliate to enhance ability to
conduct Association business and meet regulatory requirements
2.
Provide human resources support to workforce planning and manage human capital operations
2.1
Workforce planning including position control, recruitment,
internships, and Human Resource partner consulting.
2.2
Manage human capital operations including labor relations, payroll, benefits,
perfonnance management, and NEA stall's collective bargaining agreements.
2.3
Develop NEA's workplace culture to foster a workforce inspired to achieve
NEA's vision and strategy.
Total provide human resources support to workforce planning and

manage human capital operations
3.
Provide infrastructure and organization support to lead, direct, and a lign NEA's program
and services
3.1
Lead, direct, and align NEA's programs and services including engaging
staff and managing resources to effectively advance the Association's
strategic goals and core functions.
Align and leverage Association strategies and resources to promote innovation,
3.2
adaptability, and operational efficiencies and efTectivencss.
383,544
583,535
967,079
3,756,225
6,024,498
9,780,723
505,117
6 13,686
1, 11 8,805
359,504
20 1,595
561,099
737,126
1 100,7 17
I 837 843
5,74 1,51 6
8,524,03 1
14,265 547
1,1 50,038
2,072,938
3,222,976
3,849,407
3,849,407
108,926
108 926
5, I 08,371
2,072,938
7 181 ,309
8, 169,3 14
11 ,94 1,6 16
20, 110,930
81,458
8 1 458
Total provide infrastructure and organization support lo lead, dire;t. and align NEA's program
and services
8,250,772
- 41 -
11 94 1,6 16
20, 192,388

OF mE UNITED STATES AND SUBSIDIARIES
31, 2014
Chargeable
Expenditure
4.
Total
Expenditures
Provide organization and stralegy development by conducting ?n-going

Strenglhs,
Opportunities, and Threals (SWOT) analysis
4.1
Facilitate the development and alignment ofNEA slrategy and align
both strategy and operations.

Total provide organization and strategy development by conducting on-going
Strengths, Weaknesses, Opportunities, and Thrcals (SWOT) analysis
5.
Nonchargeable
Expeadlture
Provide 1cc'hnology support to applications, systems, infrastructure and technology-related

products and services for current and furure needs of the delivery of Associarion
5. I Ensure thal the Association's applications, databases, and systems are aligned
with the organizations goals and objeclives.
5.2
Align and manage the delivery of lechnology-related products and
services to meet the Association's current needs and anticipate future
needs of the Association.
5.3
Build and operate a reliable and robust technology infras1ruc1ure to support
1he Association's growing communicalion and information lechnology needs.
Total provide 1echnology support to applicalions, systems, infrastructure and technology-related

producls and services for current and future needs of the delivery of Association
6. Provide facili1y management, operational support, meeting logistics and print media production
6.1 Implement building projects thal improve NEA's infrastructure, and con1inue
to make NEA a green environment.
6.2
Manage NEA facililies, operational support, meeling logistics, and
prinl media production.
TolBI provide facili1y management, operational support,Jneeting logistics and
prinl media produclion
814,995
::.S_ _ __
814 995
814 995
814 995
3,920,780
5,965,201
9,885,981
3,717,175
5,655,430
9,372,605
I ,201 ,552
1,828,081
3,029,633
8,839,507
13,448,712
22,288,219
558,886
558,886
13,012,035
981 036
13,993,071
13,570,921
981,036
14 551 957
7. Partner wilh NEA member benetils on non-dues revenue properties

Unify NEA properties, programs, and product sales under a consolidated
7. I
business development plan to leverage brand asscls, increase revenue, and
promote.the Associa1ion's image.
Total partner with NEA member benefits on non-dues revenue properties
(1,404)
.(1,404)
(1,404)
(1,404)
Governance
I.
Facilitale and support well-infonned decision making by the executive officers,

excculive commillccs, board of direclors, and rcprcsenlative assembly
1.1
Develop 2 lsl ccn1ury governance: Proactively assess NEA's governance
procedures and i>olicies to en.sure 1hat the organization has the procedural
and structural ability lo effcclively respond to lhrcals, advance its goals, and
operale wilh maximum efficiency.
- 42 -
98,968
150,574
249,542

31, 2014
Chargeable
Expenditure
1.2
1.3
1.4
Facilitate and support wellinfonned decision-making by the Executive

Officers and Committee to advance the organization's present
and anticipated needs.
Facilitate and support well-infonned decision-making by the Board of
Directors that meets the contemporary and future needs of the organization.
Facilitate and support well-infonned decision-making by the Representative
Assembly that meets the contemporary and future needs of the organization.
Total facilitate and support well-infonned decision making by the executive officers,
executive committees, board of directors, and representative assembly
2,221 ,407
Total
Expenditures
Nonchargeable
Expenditure
1,180,007
3,401,414
2,269,856
2,269,856
1,035,599
1,035,599
5,625,830
1,330,581
6,956,41 I
172,029
172 029
300,191
300 191
472,220
472 220
376,638
573,030
949,668
895,373
1,362,249
2,257,622
39,866
8 333
48 199
1 311 877
1,943,612
3,255,489
597,025
908,333
1,505,358
2.
Facilitate and support well-infonned deliberations of appointed committees and councils

2.1
Facilitate and
wellinfonned deliberations of appojnted committees
and councils.
Total facilitate and support well-infonned deliberations of appointed commiltees and councils
3. Develop activist leadership to design and plan national leadership conferences
that will incorporate the core curriculum and meet the unique needs ofNEA's diverse membership
3.1 Approach holistically, the organization' s investment in leadership development,
conferences and trainings and develop the next generation of activist leaders:
Design, deliver and validate a core curriculum to be used as part of all national
trainings, conferences, and leadership meetings that will deepen leadership skills
of current and potential member-leaders, and that will engage high-level acti vists
who can demonstrate, through action, a deep commitment to the goals, mission
and vision of the NEA.
3.2 Take a unified and holistic approach to design and plan national
leadership conferences, for implementation that will incorporate the core
curriculum and meet. the unique needs of NEA's diverse membership and
develop the next generation of
leaders.
3.3 Coordinate learning opportunities for leaders and members in order lo ensure they
have the decision-making skills, advocacy skills, knowledge, and tools necessary
to positively impact NEA goals and be effective in the roles in which they serve.
Total develop activist leadership to design and plan national leadership conferences that
will incorporate the core curriculum and meet the unique needs ofNEA's diverse membership
4. Provide strong na1ional and global leadership engagement and influence to
strengthen NEA's alliances with US and inlematiOnal labor unions and advance NEA's goals
4.1
Provide strong Association leadership voice and engagement, giving highest
priority to !hose events, topical issues, and relationships that will best advance
NEA 's goals.
- 43 -

31, 2014
Chargeable
Exl!cndllurc
4.2
Facilitate and support leadersh ip in itiatives that strengthen NEA's al liances with
U.S. and internacional labor unions.
Nonchitrgeable
818,656
Total
818,656
Toca! provide strong national and global leadership engagement a nd influence to screngthen
597,025
NEA's alliances with US and internalional labor unions and advance NEA's goals
5.
Innovate operacions and manage resources to promote alignment, efficiency and

fiscal steivardship and consistently implement governance policies and practices
5.1 Innovate OP,Crations and manage resources to promote al ignmenl, efficiency and
fiscal stewardship; consistentl y implement governance business policies and
practices; and provide a high level of cus1omer service to suppon an effecti ve
governance corps.
1,726,989
2,324,014
3 611
3 611
3 611
3,611
Tocal innovate operations and manage resources 10 promote alignment, efficiency and
lisca l stewardship and consistently implement governance policies and practices
TOTAL EXPENDITURES - SUPPLEMENTAL SCHEDULE NOTE 4
- 44 -
155, 11 0,824
202,64 11628
35717521452

NOTES TO SUPPLEMENTAL SUMMARY SCHEDULE OF AGENCY FEE CHARGEABLE
AND NON.CHARGEABLE EXPENDITURES
FOR THE YEAR ENDED AUGUST 31,
NOTE 1.
2014
AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES
The National Education Association (NEA) collects agency or service fees from non-members of
NEA. These non-members are referred to as "agency feepayers." NEA is required by law to
have procedures in effect to determine the amount of its expenditures that can be charged to
objecting agency feepayers. The procedures that NEA applies have received the approval of
arbitrators, public sector labor boards, and courts. The legal interpretations and standards that
NEA currently utilizes to make its determinations of chargeability have been developed by the
NEA's Office of General Counsel based on relevant case Jaw.
NEA has analyzed its expenditures and determined which of those expenditures were
"chargeable" to objecting agency feepayers and which of them were "nonchargeable" to those
agency feepayers. Based on relevant federal and state judicial and administrative decisions, it
was determined that chargeable activities and expenditures were related to the following matters:
1. collective bargaining;
2.
preparations for strikes, and activities undertaken in connection with lawful strikes;
3.
contract administration;
4. grievance processing, including arbitration;

5.
specific terms and conditions of employment that may be negotiable, such as wages,
hours, benefits, working conditions, employment discrimination, promotions,
discipline, discharge, retirement benefits, performance evaluation, overtime
compensation, environmental issues in the workplace, etc.;
6.
communications with bargaining unit members regarding services they receive;
7. professional development (including teacher education, continuing education, and

certification), curriculum development and implementation, teaching methods and
other instructional skills, information and materials intended for instructional
purposes, site-based decisionmaking, and education generally, except to the extent
that such activities and expenditures involve lobbying and other political activities,
membership organizing or recruitment activities, and/or external public relations;
- 45 -
NOTE 1.
AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES (CONTINUED)
8.
uses of technology in education;
9. publications, portions of publications, or any other communications which involve

chargeable issues, such as those related to activities or expenditures listed herein as
chargeable, if the publications are provided to agency feepayers;.
10. unemployment .and job opportunities in education;
11. insurance programs and other benefits for which.both members and agency
feepayers are eligible;
12. NEA award programs;
13. Association leadership and management skills training and techniques, strategic
planning;
14. NEA Representative Assembly, Executive Committee and Board of Directors; and
15. employee relations and NEA staff grievances.
It was further determined that nonchargeable activities and expenditures were related to the
following matters:
1. lobbying and political efforts before state legislatures, state administrative agencies,
Congress, federal agencies or other executive branch officials, and ballot initiatives,
as well as any grassroots lobbying activities related to the Great Public Schools
Program, unless any of the preceding are specifically related to ratification or
implementation of a col1ective bargaining agreement;
2. external public relations (unless specifically related to collective bargaining or
contract administration), American Education Week, National Teacher Day, and any
public relations related to the Great Public Schools Program;
3. litigation, unless specifically related to collective bargaining, contract administration
or organizational maintenance;
4. voter registration and get-out-the-vote activities for members, and campaign

techniques (i.e., training programs designed to prepare leaders, staff and/or members
to work with members in support of candidates for any public office);
5. supporting or contributing to charitable, religious or ideological causes (e.g., direct

or in-kind contributions to such causes, expenditures designed primarily to assist
such causes, and payments to fundraisers for groups which promote such causes);
-46-
NOTE 1.
AGENCY FEE CHARGEABLE AND NONCHARGEABLE EXPENDITURES (CONTINUED)
6.
supporting political organizations or candidates for public office (e.g., activities in

connection with the endorsement of political candidates, activities in connection
with the NEA Fund for Children and Public Education, including its administration,
consulting with/or providing training for state/local political action committees);
7. publications, portions of publications or any other communications which involve

nonchargeable
issues, such as those related to activities or expenditures listed herein
I
as nonchargeable;
8. organizing or recruiting new members, establishing new or expanded bargaining
units, organizing and recruitment activities related to the Great Public Schools
Program; defending against challenges to exclusive bargaining representative status;
9. various ideological
unrelated to collective bargaining or organizational
maintenance, such as reproductive freedom (including abortion .and birth control),
anti-flag burning laws, balanced budget amendment, prayer in school, school
vouchers, race relations in Africa and Asia, energy conservation, human rights,
nuclear arms freeze, child support enforcement, judicial or executive appointments,
student scholarships, etc.;
10. illegal job actions and administration of the National Education Employees
Assistance Fund;
11. monitoring and opposing activities of groups and individuals whose purpose is to
undermine public education;
12. members,.only benefits, (e.g., DUES-TAB Insurance);
13. NEA-;Retired and NEA Student Program activities; and
14. international relations, the Education International.
Expenditures in the following categories were analyzed by examining staffs daily activity
reports, vouchers and financial reports, written or audiovisual publications, service or funding
agreements, meeting or conference agendas/materials, research surveys, etc., in the context of
the criteria listed above: Portions of Strong affiliates for great public schools; Upiting the nation
for great public schools; Research, policy and practice; Organizing; portions of categories 2-4 of
Advocacy and Outreach; and portions of categories 1-3 and 5 of Communications. Based upon
these analyses, NEA determined which of its expenditures were chargeable and which were
nonchargeable.
- 47 -
NOTE 2.
STATE AFFILIATE DETERMINATION OF CHARGEABLE EXPENDITURES
The total chargeable and nonchargeable expenditures included in the Affiliate Financial
Assistance Program, Small States Foundation Program, Unified State Executive Director
Program, Local Presidents Release Time Program, and UniServ Grants Program (all in category
(category 2 of Advocacy-and
l of Organizing), and in the Unified Legal
Outreach), have been allocated based on a conservative estimate of the average chargeable
percentages reported by the state affiliates for the year ended August 31, 2013. That is because,
at the time of this audit, state affiliates have not yet completed their own audits for the year
ended August 31, 2014. State affiliates will subsequently report their respective chargeable and
nonchargeable percentages for the year ended August 31, 2014, when complete, audited
information is available for them to make such determinations. Therefore, the chargeable and
nonchargeable expenditures of those programs listed in this document are estimates for purposes
of these schedules and will subsequently be adjusted to actual upon receipt of the chargeable and
nonchargeable percentages from state affiliates.
The expenditures in category 2 of Advocacy and Outreach include amounts for Educators
Employment Liability (EEL) insurance and the Attorney Referral Program (ARP), which are not
provided to agency feepayers in some states. For purposes of this presentation, the EEL-related
treated as chargeable; however, in the states where
and ARP-related expenditures have
either the EEL insurance or ARP is not provided to agency feepayers, the expenditures will be
considered nonchargeable.
NOTE 3.
OVERHEAD FUNCTIONS
The expenditures in the following Core Function Areas and Strategic Goals are considered
programmatic in nature: Strong affiliates for great public schools; Uniting the nation
great
public schools; Research, policy and practice; Organizing; Advocacy and Outreach; and
Communications.
The expenditures in the following Core Function Areas and Strategic Goals are considered
support or overhead: Portions of Strong affiliates for great public schools; category 4 and
portions of category 1 and 5 of Communications; Business Operations; and Governance. In view
of this relationship, management believes it is fair and reasonable to allocate the expenditures in
the support or overhead areas by the percentage determined as chargeable for the programmatic
activities, but only after specific clearly chargeable or clearly nonchargeable expenditures have
been separated and treated as fully chargeable or nonchargeable, respectively.
The support or overhead expenditures, which are considered clearly chargeable, are as follows:
Strategic Goal 1 - Strong A.ffiliates for great public schools
1. Provide financial training, technical assistance and managerial
support to NEA and affiliates
Tactic 1.2
Affiliate support and association fiscal health
-48-
217,246
NOTE 3.
OVERHEAD FUNCTIONS (CONTINUED)
Core Function Area 5 - Business Operations

1. Provide business systems, legal, and financial expertise to NEA
. and affiliates
Agency fee activities
Tactic 1.3
Tactic 1.4
Internal audit/risk management
Agency fee support - legal
Tactic 1.5
$.
100,043
227,001
49,112
2. Manage employee benefits and services, labor relations, and

workforce costs
Tactic 2.1
Workforce planning, position control
Human capital, labor relations, payroll
Tactic 2.2
Tactic 2.3
Morale management and skills development
307,014
3,849,407
108,926
3. Provide departmental infrastructure and business intelligence

systems that align with NEA 's strategic goals and core functions
Infrastructure support
Tactic 3.1
Tactic 3.2
Annual meeting assessment/innovations
1,196,203
81,458
4. Sustain NEA as a high-performance learning organization and

archive its records for current and future generations
Operational review/SWOT analyses
Tactic 4.1
6. Provide facility management, operational support, and meeting
logistics
Tactic 6.1
Building projects
Tactic 6.2
Facilities management, operational support
814,995
558,886
12,354,211
$ 19,647,256
Core Function Area 6 - Governance

1. Provide support to governance and the NEA policy making
process
Tactic 1.2
Executive committee
Board of directors
Tactic 1.3
Tactic 1.4
RA strategic and advisory committees
3. Develop activist leadership
Tactic 3.3
3-l(G) workshop
5. Manage governance infrastructure
Handbook, minutes and proceedings
Tactic 5.1
- 49-
$ 1,445,816
2,269,856
1,035,599
34,390
3,611
$ 4,789,272
NOTE 3.
The support or overhead expenditures that are
clearly nonchargeable are as follows:
Strategic Goal 1 - Strong affiliates for great public schools

1. Provide financial training, technical assistance and managerial
support to NEA and affiliates
Tactic 1.2
Online membership enrollment
Tactic 1.3
Campaign support services
(
$
$
808
95,535
96,343
237,211
Core Function Area 4 - Communications

1. Produce .and distribute strategic communication campagins to
defend and strengthen the NEA brand
Leverage communication vehicles
Tactic 1.1
4. Provide communication support for organizing campaigns
Tactic 4.1
Strategy development and implementation
238,715
5. Communication Operations
Tactic 5.1
Metrics analysis
Tactic 5.2
Message and intel development
Tactic 5.4
Digital engagement audit
.
Tactic 5.6
Creative services design and production
98,719
55,735
1,389
70,020
701,789
Core Function Area 5 -Business operations

1. Provide business systems, legal, and financial expertise to NEA
and affiliates
Tactic 1.2
PAC compliance systems
Tactic 1.5
FCPE policy support services
. 2. Manage employee benefits and services, labor relations, and
workforce costs
Tactic 2.1
Workforce planning, position control
3. Provide departmental infrastructure and business intelligence
systems that align with NEA's strategic goals and core functions
Tactic 3.1
Infrastructure support
- 50 -
309,656
53,950
790,333
1,332,500
NOTE 3.
6. Provide facility management, operational support, and meeting

logistics
Tactic 6.2
NBA HQ tenant
7. Develop and evaluate potential non-dues revenue

Tactic 7.1
Professional materials and publications
(19,800)
(1,404)
$ 2,465,235
Core Function Area 6 - Governance

2. Facilitate and support well-informed deliberations and appointed
committees and councils
Tactic 2.1
Committees and Councils
38,459
818,656
857,115
4. Provide national and global leadership engagement

Tactic 4.2
Alliance with national and international labor
unions
NOTE 4.
RECONCILIATION OF TOTAL EXPENSE TO AUDITED FINANCIAL STATEMENT

EXPENSES
The following is a reconciliation of the total expenses in this schedule to the total expenses as
reported in NEA's audited financial statements:
Total Expenses (included on page 4)
Expenses included in this report, but eliminated through

consolidation in the audited financial statements
376,982,916
33,308,924
'
Expenses not included in this report, but included

in expenses of the audited financial statements:
Member Benefits Programs
NEA Properties
(50,947,446)
(1,591,942)
- 51 -
357,752,452
NOTE 4.
RECONCILIATION OF TOTAL EXPENSE TO AUDITED FINANCIAL STATEMENT

EXPENSES (CONTINUED)
For purposes of this schedule, the chargeable and nonchargeable expenditures ofthe remaining
support or overhead areas are based upon a chargeable percentage figure that has been derived
from the chargeable programmatic activity expenditures as they appear elsewhere in the
schedule. Because, as explained in Note 2, the chargeable percentages for some programmatic
activities will vary from state to state in accordance with certain specific expenditures of those
state affiliates, the chargeable and nonchargeable expenditures of those remaining support or
overhead areas are not final. Once NEA receives the appropriate information from the state
affiliates, it will calculate a final chargeable programmatic activity percentage for each state
the expenditures in the remaining support or
affiliate and then use that percentage to
overhead areas. Consequently, new NEA total chargeable and nonchargeable expenditures will
result for each state affiliate.
*****
- 52 -
nea
NAllON/\l.
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1201 16th St., N.W. I Washington. DC 20036 I Phone: (202) 833-4000
Lily Eskelsen Garcia
President
Ill'! Ill.
Rebecca S. Pringle
Vice Preside111
Princess Moss
Secre/ary-Treasurer
John Stocks
Exec111ive Director
.California
August 6, 2015

CHARGEABLE AND NONCHARGEABLE AUDITED
EXPENDITURES FOR THE 2013-2014 FISCAL YEAR
CHARGEABLE & NONCHARGEABLE AUDITED EXPENDITURES
BY CORE FUNCTION AREA AND STRA TEG/C GOAL CATEGORY
I.
PROGRAMMATIC ACTIVITIES
The National Education Association's (NEA) programmatic activities are organized

into nineteen Strategic Goal and Core Function Categories.
STRONG AFFILIATES FOR GREAT PUBLIC SCHOOLS
'!
Il
I
I!
i'
ti
!
Category 1 - Partner with affiliates to build capacity and promote strategies designed
rights by providing financial support,
to enhance public education and support
technical assistance, field support, member engagement support, communications support,
and facilitating the sharing of best practices throughout the Association: Recommended and
implemented processes that enable a more seamless flow of data between the NEA and
affiliates, while ensuring security and data integrity. Reviewed national, state, and local
policies that affect data exchanges. Developed strategies and enterprise infrastructure to
create a customer relations management system (CRM) that aligns and manages member
interactions across the association, increases the quality of member engagement, limits
duplicative communication with members, and increases the depth of relationships among
NEA and its members. Enhanced the financial and economic knowledge and skills of NEA
and Affiliate staff, management and leaders_through regional and/or affinity group training.
Collected existing employee benefit plan data from state affiliates to enable analysis and
recommend changes that improve the effectiveness, efficiency and sustainability of
employee contracts. Enhanced web presence and streamlined new-member experiences
through establishment of policies and technical infrastructure to enable a single
nationwide, self- enroHment web site. Created, cultivated and maintained strategic
partnerships with non-traditional allies, third party validators, key legislators and
committees. Developed and executed a strategic operations system that tracks threat
assessments, opposition monitoring and opportunities for push back. Recruited, engaged
and prepared members to take political, legislative, and legal action, moving them along a
continuum of activism that lives beyond any single campaign, and engaged and partnered
with ESP, retired, student, higher education and K-12 members on issues and values that
resonate in their lives and profession. Built capacity and empowered targeted state
affiliates with appropriate research and technical assistance to fend off attacks on the
rights of educators and their students with offensive strategies for equitable tax, economic
development, and education funding (TEF) policies. Inventoried, identified needs, and used
research and data to develop a strategy for managing the Association's member
interactions at all levels of the organization, employs a customer relations management
system to aggregate information, and allows for the refinement of our engagement
strategy.
Chargeable audited expenditures ...........
Nonchargeable audited expenditures...............
Total audited expenditures...............................
$117,183
$46,451,410
$46,568,593
UNITING THE NATION FOR GREAT PUBLIC SCHOOLS
Category 1 - Create the next generation ofsuccess in priority schools by developing

initiatives to build the capacity of local affiliates, improve the skills, knowledge, linguistic and
cultural competence of educators, and improve the conditions of teaching and learning; and
create partnerships with ethnic minority organizations, parents, and other community groups
to support students and families in priority schools: Analyzed local resources and data
relevant to the GPS (Great Public Schools) Indicators. Supported members in accessing
English Language Learner HCR (ELL) training. Utilized the ELL Culture and Equity
advocacy and HCRorganizing module to support NEA affiliates' membership growth and
support their capacity to advocate for English learner-supportive policies. Introduced Keys
to Excellence for Your Schools (KEYS) and conduct KEYS training and workshops for local
and school leaders in Priority Schools to collectively voice organizational issues that need
improvement and to assume leadership roles essential to bring about school change.
Developed a network within and across NEA's targeted priority schools designed to build
local capacity to design, implement, and assess teacher-led, high quality professional
development activities and systems to improve in.structional practice.
Chargeable audited expenditures ................... ..

Nonchargeable audited expenditures ...............
Total audited expenditures ............................. ..
$1,458,279
. $547,908
$2,006,187
Category 2 - Create the next generation ofstudent success, education professionals,

and professional practice: Provided technical assistance and advocacy strategy assistance
to our Priority Schools effort by analyzing and creating sample memorandum of
understanding. Collaborated with existing partners, family and community stakeholders
and institutions of higher education to advance sound policies, programs and leadership
practices for English learners. Designed and implemented formative and summative
procedures for measuring the process and outcomes of the Center's work related to
creating the next generation of student success. Provided advocacy tools for local affiliates
such as sample contract language, school board policies, or sample municipal petitions that
-2-
help achieve the GPS criteria. Built support and protected job security for education
support professionals in a quality public education workforce by promoting
professionalism and enhancing the relevance of E:SP professions. Developed foundation of
knowledge by producing research briefs (such as Myth busters), secondary analyses and
meetings with experts which highlight the Center's work
to creating the next
generation of professionals; disseminate research information via Inside NEA/Research
Info. Implemented state level partnerships in at least 10 states to engage state affiliates,
higher education, and licensing authorities in the development, implementation, and
assessment of classroom-based teacher performance assessments. Worked with partners
such as the U.S. Department of Education and Educational Testing Service to convene a
national forum on teacher recruitment and diversity. Designed multiple options for Career
Path Compensation System and create a Compensation Systems toolkit for use by state and
local affiliates to advance alternative compensation models. Provided support for the
professionalization of teaching through research that enhances teacher knowledge,
professional development, collaboration and evaluation. Developed a training system
targeted to Peer Coaches and Peer Reviewers to prepare classroom teachers to serve in
new Peer Assistance and Review programs.
Nonchargeable audited expenditures ........... :...
$1,838,156
. $743,474
$2,581,630
Category 3 - Create the next generation of union leadership: Worked in coordination

with the Center for Great Public Schools in helping to define new roles for union leadership
for our members. Expanded leadership effectiveness in leading ESP professions through
. the delivery of the NEA Leaders for Tomorrow (LFT) program and supporting the
development of state-based leadership development programs. Trained members via the to
be leaders and organizers in communities to benefit our intensive support sites in our
Priority Schools effort and/or equip members to organize around our Leading the
Professions effort. Created leadership strategies to engage and support local leaders in
developing and implementing programs and activities that engage members in professional
issues. Developed an initiative to expand the scope of the NEA Foundation's Institute for
Innovation in Teaching and Learning and create a network of at least 75 partnerships.
Piloted a teacher leadership practicum or fellowship focused on instructional, policy, and
union leadership and targeted to teachers in NCUEA (National Council of Urban Education
Associations) or TURN (Teacher Union Reform Network) locals and teachers in Priority
Schools.
$2,189,219
Chargeable audited expenditures .................... .
Nonchargeable audited expenditures .............. .
$8,902,424
Total audited expenditures ............................... $11,091,643
Category 4 - Create the next generation of communication strategies to unite the

nation for great public schools: Increased understanding and support by key policymakers
and other critical external audiences of the successes of NEA's Priority Schools Campaign,
highlighting best practices, partnerships and other supports, and the successes of other
NEA affiliate-led work to improve schools, promoting policies and programs that advance
Great Public Schools. Developed message frames to promote to target audiences NEA's
-3-
Leadership initiatives in the Raise Your Hand initiatives, including: student success,
accomplished professionals, dynamic leadership and collaboration. Increased NEA
members' and target audiences understanding of the focus, progress, promising practices
of NEA's school improvement programs, including Priority Schools and Raise Your Hand,
and Teacher Leader.ship initiatives. Provided message and media training and
communication materials for capacity building efforts and message discipline/resourcing
to develop Association leaders, NCSEA, NCUEA, state affiliates and NEA spokespersons'
abilities to effectively communicate NEA's mission, vision, as well as examples of union-led
education reform and leadership. Designed and implemented formative and summative
procedures for measuring the process and outcomes of the Center's work related to
creating the next generation of communication strategies to Unite the Nation for Great
Public Schools by reviewing the literature on knowledge utilization and crafting measures
of coverage in the education press, magazines, and journals.
$9,998
$2,183,402
$2,193,400
RESEARCH, POLICY, AND PRACTICE

Category 1 - Research that supports Association efforts to advocate for enhanced
student learning and workforce quality through good policies and practices: Analyzed federal
legislation and regulations to advance federal public education policy. Worked with state
affiliates to provide technical assistance on federal legislation and regulations. Developed
and circulated. information that highlights the contributions of ESPwork resulting in
pro-public education
positive educational outcomes and informs ESP members
initiatives.

Total
expenditures ........... :...................
$66,014
$1,323,203
$1,389,217
Category 2 - Provide resources, technical assistance, and training to affiliates to

support their initiatives designed to achievements in teaching and learning: Developed and
disseminated resources, materials, and information to support integrated issue campaigns
related to teaching and learning issues. Coordinated the activities of the Early Childhood
Education Leadership Cohort (ECELC) to provide early language, mathematics, and science
literacy and early childhood policy trainings to state affiliates. Provided online resources to
enhance the effectiveness of ESP advocates through the ESP Virtual Career Center for ESP
members and Virtual Library for NEA leaders and staff. Developed and provided
specialized training to enhance ESP effectiveness in furthering school support and wraparound services. Sustained, grew, and institutionalized comprehensive online tools devoted
to education policy, research and practice focused on the criteria and indicators for Great
Public Schools that can be assessed and rated as useful and relevant.

Total audited expenditures ...............................
-4-
$1,030,731
$807,485
$1,838,216
Category 3 - Partner with affiliates and others to support workforce quality and
advance NEA 's criteria for great public schools and workforce quality: Coordinated
symposia to engage stakeholders in public policies important to public education.
Collaborated with national partners to influence public policy related to ESP Quality and
NEA's workfoi:ce quality agenda. Developed strategic engagement with selected education
research think tanks and academic, forums focused on public school reform and closing the
achievement gaps. Built and maintained partnerships and relationships with educational,
social, and community,organizations that will meaningfully and measurably advance NEA's
Great Public Schools criteria and local, state, and federal policy agenda. Provided staff
support to the National Council for Accreditation of Teacher Education (NCATE) and the
National Board for Professional Teaching Standards (NBPTS) and other governance
functions.
$348,088
$1,522,932
$1,871,020
Category 4 - Provide support, research, and information to staft members and

affiliates to support efforts to improve teaching and learning: Provided technical assistance,
policy analysis, materials and information to state affiliates. Researched, drafted, and
published policy briefs and other documents, as well as host webcasts and meetings and
participate in NEA and affiliate meetings to gather and share information. Developed and
provided training, technical assistance, and resources to promote understanding ESP job
families and demonstrate the positive ESP impact on quality learning. Enhanced KEYS
components including incorporating online access to current school improvement
resources into the KEYS data reports, redesigning and testing the KEYS data reports for the
recently modified KEYS Family and Community surveys and the newly developed KEYS
Student survey, as well as to develop strategies for capturing online KEYS user feedback to
evaluate implementation effectiveness, learn "what works" well and. disseminate "best
practices." Constructed, refined and maintai'ned Research Info site in order to house and
disseminate research information and data. Provided employment and compensation
information on K- 12 public education employees. Provided information on the opinions,
priorities, and concerns of public education employees, parents, and the public. Provided
research on ESP labor force and members to elevate the professions. Provided research to
advance Higher Education through collective action. Continued the ongoing collecting,
transferring, and cataloguing of records, documents, and related materials for permanent
housing in the NEA Archives at George Washington University's Gelman Library, and
oversee the development of user aids for researchers and the general public. Responded to
content-related requests from other NEA departments and state and local affiliates.
Nonchargeable audited expenditures ..... .........
-5-
$2,093,629
$2,030,729
$4,124,358
ORGANIZING
Category 1 - Partner with state affiliates to .engage members as a collective by

supporting affiliates to activate our vast network in pursuit of the Association's vision and
provide leadership development: Used values-based.organizing to build member
engagement/empowerment and association capacity by providing teams oflead organizers
working in close partnership with targeted affiliates. Tested the next generation of
professional practice in selected sites to establish efficacy and relevance to members.
Implemented and assessed strategies to create the next generation of student success by
securing community support for teaching and learning initiatives. Developed and tested
organizing models for new and non- traditional membership types through strategic
investment in affiliation of independents, outside organizations, and new markets.
Researched value stream of young members and design effective methods to recruit and
retain them, including Student NEA. Engaged young people in joint national campaigns on
issues meaningful to them, such as social justice, student loans, and job creation.
Investigated and experimented with alternative dues structures for potential members
entering the professions. Developed and implemented 21st century models, programs, and
initiatives to cultivate an organizing culture among affiliate staff and leaders; with a special
emphasis on UniServ staff, UniServ Managers, and local leaders. Used leadership
conferences and shared staffing to provide training and field experience in targeted sites.
Provided selected affiliate-based training that builds staff, leader and association capacity.
Used data collected internally and externally to target innovation sites and provide ongoing
data for more strategic planning and implementation. Enhanced NEA/state affiliate
relationships through ongoing two-way communications and coordination of NEA
resources designed to meet state needs. Administered policies and guidelines and
disbursed the funds for the Small States Foundation Program, UniServ Program, Local
President Time Release Program and the Unified State Executive Director Program
(USE DP).
Chargeable audited expenditures..................... $.66,489,646*
Nonchargeable audited expenditures............... $35,490,619
Total audited expenditures............................... $101,980,265
ADVOCACY AND OUTREACH
Category 1 - Supports the.Association's efforts to achieve great public schools through

federal and state legislation: Prevented anti-working family legislation from passing at the
federal level, including threats to retirement security, collective bargaining, and secure
funding, for public K 12 and higher education. Advanced and passed pro-public education
legislation at the federal level that main fains a federal focus on disadvantaged groups of
students (i.e. high poverty, special education, ELL) and promotes the creation of a Great
Public School for every student. Provided direct resources and assistance to affiliates in
working with their state legislators and other elected officials to enact pro-public education
and working family legislation. Established, built, and reinforced relationships with
intergovernmental organizations to help raise awareness of state legislative battles and to
leverage support for federal initiatives, including addressing regulations and legal
remedies to ensure a secure funding system at the state and local level for public education.
-6

audited expenditures, ..............
$-0$3, 723,410
$3,723,410
Category 2 - Provides leadership, policy development and analysis, and advocacy tools
to affiliates seeking to mobilize to protect members' rights and strategies to improve
educational outcomes: Provided Diversit,Y, Social Justice, LGBTQ, and. Bullying and Sexual
Harassment training to assist state and local leaders in identifying, organizing, and
mobilizing diverse people withjn their communities, and their Association to fend off
attacks on public education. Helped educators to organize actions that advance NEA's
reform agenda by providing support and resources in struggling schools through
professional development. Provided assistance and support to affiliates through advocacy
language, policy briefs, analysis and messaging on critical Social Justice and Civil Rights
issues. Maintained and updated tools used to track collective bargaining developments and
assist affiliates in achieving bargaining goals, including the contract databases, the
collective bargaining laws database, and state legislative tracking on selected collective
bargaining issues. Developed and provided proactive approaches to protecting and
public pensions and public educator retirement security; share best practices
hcross the country. Worked with state affiliates and other appropriate NEA operations to
develop alternative vehicles for delivery of information designed to minimize the exposure
of members to liability situations. Researched, prepared and provided specialized
documents such as benefit comparisons, legislative or regulatory comments on
professional liability provisions in response by another NEA unit or a state affiliate in
recruitment, maintenance or advocacy for members.
Chargeable audited expenditures..................... $10,l 78,715t
Nonchargeable audited expenditures............... $28,823,188
Total audited expenditures............................... $39,001,903
Category 3 - Partnerships with parents, families, communities, and other stakeholders

who are essential to quality public education. Col/a borate with outside organizations about
social justice, civil rights issues, members rights, particularly in ethnic minority communities:
Partnered with LGBTQ, Anti-bullying, Women'.s, Minority, and Social Justice Organizations
to position NEA as a leader in social justice and human and civil rights. Participated in,
represented NE.A at, and ensured NEA policy goals are furthered with external partners in
the health care arena. Assisted NEA affiliates with outreach, engagement, and organizing of
communities and partners, particularly ethnic minority communities, in an effort to better
support NEA Priority Schools sites. Assisted state and local affiliates enhancement of their
own partnerships and minority community outreach and engagement, including assessing
gaps in affiliates' partnerships and outreach efforts, as well as supporting and enhancing
MLTP graduates and other NEA members to organize in communities. Developed and
executed a strategic, measureable,and .robust system of communication and outreach to
outside organizations, entities, and individuals about the work of the NEA and its affiliates'
to improve public education, fight for economic and social justice, and fulfill the NEA
mission, vision, and core values. Identified new and potentially impactful organizations and
entities, as well as identify trends in outside organizations' advocacy, organizing, civic
engagement, communications, or research strategies that may impact NEA's work.
-7-
Developed arid implemented detailed processes and procedures for making, monitoring,
and evaluating annual financial and in-kind contributions to partner organizations to
ensure sufficient and impactful returns on investment, monitored progress towards NEA's
strategic goals, and overall outreach outcomes assessed.
Chargeable audited expenditures .................
$14,773
$11,973,598
$11,988,371
Category 4- Leadership and advocacy training to NEA activists and NEA's education
reform agenda:
leadership and advocacy development in state and local affiliates
to mobilize and organize members to fend off attacks to member's rights and promote
strategies to enhance public education. Conducted.the NEA Joint Conference on Concerns
of Minorities and Women and the Ethnic Leaders Meeting with a continued. increased focus
on developing activists in the organization to be leaders in and out of the association.
Conducted NEA Board Observances and engaged Observance speakers in supporting and
advancing the mission of the NEA.
$395,262
$825;739
$1,221,001
COMMUNICATION
Category 1 - Produce and distribute reliable, well-crafted state-of-the-art

communications that inform and engage NEA members and other target audiences of the
Association's activities to advance public education, counter the efforts of opponerits of public
education and public employee advocacy and strengthen the NEA brand: Leveraged
communications vehicles to advance pubJic education policies and champions in support of
NEA endorsed or supported issues, policies or candidates at the federal level. Provided
strategic counsel and crisis counsel and personnel to assist state affiliates with earned
media, social media and other communication defensive campaigns.
NonchC!rgeable audited expenditures ...............
Total audited
............................. ..
$-0$146,372
$146,372
Category 2 - Design and execute rapid response and strategic communication

campaigns that advance Association messaging and strengthens the NEA brand via
components developed through the use of up-to-date research, planning and evaluation data:
Designed, engineered and maintained a platform of the GPS Network. Planned and
implemented special events. Leveraged communication resources to demonstrate NEA
leadership within the Raise Your Hand initiatives in the areas of student success,
accomplished professionals, dynamic collaboration and leadership.
Nonchargeable audited expenditures ............. ..
Total audited expenditures ... .'......................... ..
-8-
$-0$942,212
$942,212
Category 3 -Design and execute strategic communication campaigns, special projects

and events, that advance. the Association's vision, mission, and values, and effectively
communicate the Association's key messages, strengthen the NEA brand and reputation, and
engage members in positive, proactive communication and outreach with internal (,md
external audiences: Planned and implemented strategic communication campaigns, special
projects, and events. Planned and implemented special projects/events related to NEAsponsored programs such as Back to School, American Education Week, National Teacher
Day, ESP Day, and additional Association co-sponsored programs. Implemented
nationwide "Read Across America" program.
Chargeable audited expenditures ... ;................ .
$-Q$1,442, 972
$1,442,972
Category 5 - Develop and execute media strategies in support of the Association's

efforts targeting national, state and regional media: Developed, conceived and executed
comprehensive media across all platforms: traditional media, print, TY, radio, and other
forms of media. Designed robust research and mapping program targeting multiple levels
of Opinion Makers, using qualitative and. quantitative research. Executed audit of digital
engagement capabilities, products and protocols.
developed and executed
technical training with NEA ITS to reinforce existing and expand Communications Center
website publishing and IT operations capabilities. Planned, developed, produced and
performed performance assessment of member engagement and advocacy digital products.
Developed and disseminated creative and strategic guidelines, templates, stock
photography of NEA members, motion graphics, info-graphics and other related materials
on NEAs revised branding standards and overall brand management strategies to assure a
consistent identity with affiliates, members, partners and the public. Informed NEA's
affiliates, leaders, members, and agency feepayers about NEA policies, programs, and
accomplishments through an internal network of printed publications, including NEA
TODAY and specialized constituency periodicals. Executed strategic communication
programs at NEA's Representative Assembly.
Nonchargeable audited expenditures ............. ..
$1,155,436
$25,394,433
$26,549,869
BUSINESS OPERATIONS
Category 1 - Provide ongoing support for NEA and affiliates through the deployment
ofAssociation business systems and software applications: Maintained the financial and
management software applications at a level to meet the evolving business needs of NEA
and its affiliates, Assisted NEA and affiliates by providing financial and membership
analysis and advice; financial management reporting and training; and newsletters and
other communications including updates on specific regulatory issues. Assisted NEA and
affiliates in the accurate and timely processing and reporting of financial and membership
business transactions including the Annual Meeting. Managed and projected the
Association's finances by monitoring revenues and expenditures and analyzing factors that
affect revenue streams and cause expenditure variances. Developed sound risk
-9-
management practices pertaining to business continuity, crisis management, safety,

security, and insurance programs. Implemented a comprehensive business continuity
program and conducted a training for at least 75 percent of headquarters staff on safety
procedures. Provide legal and policy support to governance (e.g., Executive Committee,
Board, constitution, Bylaws, Resolutions, etc.) at the national and state levels.
$5,000
$5,000
$10,000
PROGRAMMATIC ACTIVITY SUMMARY

Total Programmatic Activity Chargeable Audited Expenditures ........ $ 87,390,129
Total Programmatic Activity Nonchargeable Audited Expenditures $173,280,510
Total Programmatic Activity Expenditures ..........................................$260,670,639
Programmatic Activity Chargeable Percentage .................................... 33.54%
Programmatic Activity Nonchargeable Percentage ............................. 66.46%
II.
SUPPORJ/OVERHEAD
NEA'S Support and Overhead Activities
organized in 17 Core Function Categories.*
STRONG AFFILIATES FOR GREAT PUBLIC SCHOOLS

Category 1(Tactics1.1-1.2): Partnered with affiliates to integrate, collect, and
manage data to identify threats and opportunities and to. connect and activate our
members. Delivered timely crisis management strategies, jointly developed for NEA and
affiliates, for transitioning affiliates to alterQative revenue collection methods. Planned and
supported campaigns wi,th metrics and mobilization strategies that meet association goals,
and test and strengthen association capacity and membership engagement beyond a single
campaign effort. Inventoried, identified needs, and used research and data to develop a
strategy for managing the Association's member interactions at all levels of the
organization, employs a customer relations management system to aggregate information,
and allows for the refinement of our engagement strategy.

-10-
$303,484
$267,226
$570,710
RESEARCH, POLICY, AND PRACTICE

Category 1 (Tactic 4.1): Continued the ongoing collecting, transferring, and
cataloguing of RES records, documents, and related materials for permanent housing in the
NEA Archives, and oversee the development of user aids for researchers and the general
public.

Nonchargeable audited expenditures ..... : .........
Total audited expenditures ............ : ......... ..
$1,019
$2,019
$3,038
COMMUNICATIONS
Category 1(Tactics1.1-1.2): Leveraged.the full suite of communications vehicles to
advance public education policies and champions in support of NEA endorsed or supported
issues, policies or candidates at the federal level. Provided strategic counsel and crisis
counsel and personnel to assist state affiliates with earned media, social media and other
communication defensive campaigns.
$-0$ 237,211
$237,211
Category 4 (Tactics 4.1): Assessed communication capabilities and capacity.

Developed and implemented strategy, tactics and training.
Chargeable audited expenditures ............. ;...... .
$-0$ 238, 715

$238,715
Category 5 (Tactics 5.4., 5.6): Planned, developed, produced and performed

assessment of Nea.org digital products .. nevelope.d and disseminated creative and strategic
guidelines, templates, stock photography of NEA members, motion graphics, info-graphics
and other related materials on NEAs revised branding standards and overall brand
management strategies to assure a consistent identity with affiliates, members, partners
and the public.
$1,177,762
$2,559,621
$3,737,383
BUSINESS OPERATIONS
Category 1(Tactics1.1-1.5): Maintained financial and management software
applications at a level to meet the evolving business needs of NEA and its. affiliates.
Promoted NEA and affiliate fiscal nealth through training and advisory services for staff
and governance that enhances their ability to conduct Association business and meet
regulatory requirements. Managed and projected the Association's finances by monitoring
-11-
revenues al)d expenditures and analyzing factors that affect revenue streams and cause
expenditure variances. Reduced loss and increased efficiency by executing a
comprehensive risk management program that includes audits, compliance monitoring,
and information security. Provided legal advice, counseling, agency fee support and
support for the NEA Fund for Children and Public Education and Federal Election
Commission matters.
$4,909,349
$9,346,198
Total audited expenditures ............................... $14,255,547
Category 2 (Tactics 2.1-2.3): Managed position control, classification costs, and all
other workforce HR costs and their effect on the personnel line.

NEA's
workplace culture to foster a workforce inspired to achieve NEA's vision and strategy. Led,
directed, and aligned NEA's programs and services by engagingstaff and managing
resources to effectively advance the Association's strategic goals and core functions.
$4,978,283
$2,203,026
$7,181,309
Category 3 (Tactics 3.1-3.2): Led, directed, and aligned NEA's programs and services
by engaging staff and managing resources to effectively advance the Association's strategic
goals and core functions. Aligned and leveraged Association strategies and resources to
promote innovation, adaptability, and operational efficiencies and effectiveness.

Tota.I audited expenditures ............................. ..
$ 7,174,740.
$13,017,648
$20,192,388
Category 4 (Tactic 4.1): Facilitated the development of NEA strategy and align both
strategy and operations.

Total audited expenditures.'. ........................... ..
$814,995
$-0$814, 995.
Category 5 (Tactic 5.1-5.3): Ensured that the Association's applications, databases,
and systems are aligned with the organization's goals and objectives. Aligned and managed
the delivery of technology-related products and services meet the Association's current
needs and anticipate future needs of the Association. Built and operated a reliable and
robust technology infrastructure to support the Association's growing communication and
information technology needs.
-12-
$ 7,475,469
$14,812,750
$22,288,219
Category 6 {Tactic 6.1-6.2): Implemented building projects that improved NEA's

infrastructure, and continue to make NEA a green environment. Managed NEA facilities,
operational support, meeting logistics, and print media production.
Chargeable audited expenditures.....................

$13,469,411
$ 1,082,546
$14,551,957
Category 7 [Tactic 7.1): Developed a new distribution platform to promote and. sell
professional materials, publications, and logo/program support merchandise.

$-0$-1,404
$-1,404
GOVERNANCE
Category 1(Tactics1.1-1.4): Assessed NEA's governance procedures and policies to
ensure that the organization has the procedural and structural ability to effectively respond
to threats, advance its goals, and operate with maximum efficiency. Facilitated and
supported well-informed decision-making by the
Officers and Committee to
advance the organization's present and anticipated needs. Facilitated and supported wellinformed decision-making by the Board of Directors that meets the contemporary and
future needs of the organization. Facilitated and supported well-informed decision-making
by the Representative Assembly that meets the contemporary and future needs of the
organization.

Nonchargeable aud_ited expenditures .............. .
$5,490,876
$1,465,535
$6,956,411
Category 2 (Tactic 2.1): Facilitated and supported well-informed deliberations of
appointed committees and councils.

Chargeable audited expenditures ..... .............. .
Total audited expenditures ...... ,...................... ..
$145,482
$326,738
$472,220
Category 3 [Tactics 3.1-3.3): Designed, delivered and validated a Core Curriculum to

be used as part of all national trainings, conferences, and leadership meetings that will
deepen leadership skills of current and potential member-leaders, and that will engage
high-level activists who can demonstrate, through action, a deep commitment to the goals,
mission and vision of the NEA. Designed and planned two national leadership conferences
(east and west), for implementation in-the second year of the budget, that will incorporate
the core curriculum and meet the unique needs of NEA's diverse membership and develop
the next generation of activist leaders. Coordinated learning opportunities for leaders and
members in order to ensure they have the decision-making skills, advocacy skills,
-13-
knowledge, and tools necessary to positively impact NEA goals and be effective in the roles
in which they serve.
$1,114,746
$2,140,743
$3,255,489
Category 4 (Tactics 4.1-4.2): Provided strong Association leadership voice and

engagement, giving highest priority to those e\!ents, topical issues, and relationships that
best advanced NEA's goals. Facilitated and supported leadership initiatives that
strengthened NEA's alliances with U.S. and international labor unions.
Total audited expenditures .............................. .
$ 504,897
$1,819,117
$2,324,014
Category 5 (Tactics 5.1): Implemented governance business policies and practices

and provided a high level of customer service to support an effective governance corps.
Chargeable audited expenditures ....................
$3,611
$-0-'
$3,611
SUPPORT/OVERHEADSUMMARY
Total Support/Overhead Chargeable Audited Expenditures ................. $47,564,124
Total Support/Overhead Nonchargeable Audited Expenditures ... _....... $49;517,689
Total Support/Overhead Audited Expenditures ............... .....................$97,081,813
III.
OVERALL ANALYSIS OF NEA AUDITED EXPENDITURES
Total Chargeable Audited Expenditures ................................................ $134,954,253

Total Nonchargeable Audited Expenditures .......................................... $222,798,199
Total Audited Expenditures ....................................................................$357,752,452
Final Chargeable Percentage ................................................................... 37.72%
Final Nonchargeable Percentage ................................................ -............ 62.28%
In light of the U.S. Supreme Court's decisions in Lehnert v. Ferris Faculty Ass'n, 500
U.S. 507 (1991), and Locke v. Karass, 555 U.S. 207 (2009), NEA has aIJocated its UniServ
(continued ... )
-14-
grants program expenditures on the basis of California Teachers Association's (CTA)

determination of the chargeable percentage of the grants it received in the 2013-2014
fiscal year, 94%. Thus, the resulting UniServ chargeable amount is $60,131,340, rather
than$ 55,013,779 that was used for purposes of the NEA audit. The reason for the
difference between the new figure for this program and its counterpart in the NEA audit is
that, at the time the audit was conducted, most of the agency fee state affiliates had not yet
determined their fiscal year 2013-2014 chargeable percentages. Accordingly, for purposes
of the audit, the expenditures in the UniServ grants program were allocated using a
conservative adjustment of the average chargeable percentage of UniServ grants to agency
fee state affiliates for the year e;nded August 31, 2013, 86%.
In addition, NEA has allocated its expenditures in the Small States Fondation
Program in accordance with CTA's determination of the overall chargeable percentage of
its total expenditures for the 2013-2014 fiscal year 73.80%, resulting in a chargeable
amount of $2,237,259, rather than $2,122,061 that was used for purposes of the NEA audit
The reason for the difference between the new figure for this program and its counterpart
in the NEA audit is that, at the time the audit was conducted, most of the agency fee state
affiliates had not yet determined their fiscal year 2013-2014 chargeable percentages.
Accordingly, for purposes of the audit, the expenditures in the Small States Foundation
program were allocated using a conservative adjustment of the average chargeable
percentage of agency fee state affiliates' total e:icpenditures for the year ended August 31,
2013, 70%.
Similarly, NEA allocated its expenditures in the Unified State Executive Director
Program ("USEDP") in accordance with CTA's.determination of the chargeable percentage
of its executive director's salary and benefits for the 2013-2014 fiscal year, 73.80%,
resulting in a chargeable amount of $1,081,325, as compared with $1,054,952 that was " ,.
used for purposes of the NEA audit. Again, the reason for the difference between the new
figure and its counterpart in the NEA audit is that, at the time the audit was conducted,
most of the agency fee state affiliates had not yet determined their fiscal year 2013-2014
percentages. Accordingly, for purposes of the audit, the expenditures in the US EDP were
allocated using a conservative adjustment of the average chargeable percentage of
expenditures for the salary and benefits of agency fee state affiliate executive directors for
the year ended August 31, 2013, 72%.
Finally, since the agency fee locals affiliated with CTA
allocated their 2013-14
expenditures into chargeable and nonchargeable categories, NEA is allocating its
expenditures in the Local Presidents Release Program by the average chargeable
percentage, 80%, reported by those locals, resulting in a chargeable amount of $261,121, as
compared with $244,801 that was used for purposes of the NEA audit. The reason for the
difference between the new figure for this program and its counterpart in the NEA audit is
that, at the time the audit was conducted, most of the agency fee affiliates had not yet
determined their fiscal year 2013-2014 chargeable percentages. Accordingly, for purposes
of the audit, the expenditures in the Local Presidents Release Program were allocated using
a conservative adjustment of the average chargeable percentage of agency fee local
affiliates' total expenditures for the fiscal year ended August 31, 2013, 75%.
(continued ... )
. -15-
NEA has allocated its expenditures in the Affiliate Financial Assistance Program in
accordance with CTA's determination of the overall chargeable percentage of its total
expenditures for the 2013-14 fiscal year, 73:80%, resulting in a chargeable amount of
$1,058,346, rather than the amount of $1,003,851 that was us'ed for purposes of the NEA
audit. The reason for the difference between the new figure for this program and its
counterpart in the NEA audit is that, at the time the audit was conducted, most of the
agency fee state affiliates had not yet determined their fiscal year 2013-2014 chargeable
percentages. Accordingly, for purposes of the audit, the expenditures in the Affiliate
Financial Assistance Program were allocated using a conservative adjustment of the
average chargeable percentage of agency fee state affiliates' total expenditures for the year
ended August 31, 2013, 70%.
As a result of these modifications to the allocation of expenditures in the UniServ
grants, Small States Foundation, USEDP, Local Presidents Release, and Affiliate Financial
Assistance Programs, the total chargeable amount for Category 1 of Organizing is .
$66,489,646, as comparedwith $61,159,699 in the NEAaudit.
In light of the decisions in Lehnert and Locke, see note*, which recognized that
"part of a local's affiliation fee which contributes to the pool of resources potentially
available to the local is assessed for the bargaining unit's protection, even if it is not
actually expended on that unit in any particular membership year," NEAhas allocated its
Unified Legal Services Program (ULSP) reimbursements on the basis of the CTA's
determination of the chargeable percentage of the reimbursements it received in the 20132014 fiscal year, 24%. Thus, the resulting ULSP chargeable amount is $5,370,162. This
from the ULSP chargeable amount used for purposes of the
figure
chargeable/nonchargeable schedule included in the NEA audit, $15,215,460, because the
amount in the audit was based upon a cqnservative adjustment of the average chargeable
percentage of ULSP reimbursements to a'gency fee 'state affiliates for the year ended August
31, 2013. That percentage was 68%. NEA used this method because, at the time its audit
was conducted, most of those state affiliates
not yet determined their fiscal year 20132014 chargeable percentages. In addition, for purposes of the NEA audit, Educators
Employment Liability (EEL) insurance expenditures and Attorney Referral Program
expenditures (ARP). were treated as chargeable. However, CTA does not make EEL and
ARP coverage available to agency feepayers and therefore such expenditure, $11,460, 797,
has been treated as nonchargeable with regard to CTA. Thus, the resulting chargeable total
for Category 2 of Advocacy and Outreach is $10,178,715, as compared with $31,484,810 in
the NEA audit.
' t
*As a result of the adjustments in the programmatic activities, see notes* and t, the
Programmatic Activity Chargeable Percentage is 33.54% as compared with 39.66% that
was in the NEA audit Therefore, for purposes of these calculations, the figure 33.54% was
used to allocate certain expenditures in the Support/Overhead activities in accordance
with the procedure discussed in footnote 3 on pages 48-51 of the NEA audit.
-16-

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CALIFORNIA

1705 Murchison Drive, Burlingame, CA 94010

October 15, 2015

2013-2014 audited financial statements of CTA, including:

NEA Fiscal Year 2013-14 Auditor's Report and Financial Statement,

Document entitled "National Education Association Chargeable and

Local Association statement of chargeable/nonchargeable

Membership t:.nrollment Form

Great Public S chools for Every S tudent.

Provide previous or current Individual ID#

I (From Membership Card)

L oca l Asso ciation

Bldg /Wo rk S ite

Is this y o ur prima ry p lace of emp loyment?

Pos iti o n/Job Title

(See Reverse Side For Subject and Position Co des)

A designated portion of CTA dues is normally allocated to the

America n India n/Ala ska Native

P lease fill in o ne, s ee bac k of form

Native Hawaiian/Pacific Islander

Track (if applic a ble)[ D

Membe rsh ip C ate g o ry

For Office Use Only

Association Representative Signature

ACTIVE MEMBERSHIP CATEGORIES

ACTIVE PART TIME:

* Directly hires, evaluates,

Envi ronmenta l Studies

Law & Legal Studies

I request a rebate of the nonchargeable portion of my fees.

Local Association's calculation

Send completed form to:

FOR OFFICE USE ONLY

lndiv TD# --...:.:.-----..,----=-....:._

CALIFORNIA TEACHERS ASSOCIATION

INDEPENDENT AUDITORS' REPORT

COMBINED FINANCIAL STATEMENTS AS OF AND

Statement of Activities and Changes in Net Assets

Statement of Cash Flows

Notes to Combined Financial Statements

Deloltte & Touche LLP

Tel: +1 415 783 4000

INDEPENDENT AUDITORS' REPORT

To the Board of Directors of

due to fraud or error.

Report on Supplemental Schedules

CALIFORNIA TEACHERS ASSOCIATION

Total current assets

PROPERTY AND EQUIPMENT-Net

LIABILITIES AND NET ASSETS

Total current liabilities

Total long-term obligations

Total net assets

See notes to combined financial statements.

CALIFORNIA TEACHERS ASSOCIATION

UNRESTRICTED NET ASSETS:

Net assets released from restriction

Increase in unrestricted net assets

TEMPORARILY RESTRICTED NET ASSETS:

Increase in temporarily restricted net assets

INCREASE IN NET ASSETS

NET ASSETS-Beginning of year

NET ASSETS-End of year