David M. Morris, C.P.A. Class A (nonalcoholic) Trustee General Service Board Treasurer

1. David M. Morris, C.P.A. Class A (nonalcoholic) Trustee General Service Board Treasurer AROUND THE PICNICTABLE Finance 2019 GSC

2. 2018 FINANCIAL HIGHLIGHTS • 7th Tradition of Self-Support – $8.4 million, almost equal to 2017 record • Cost of Services Provided to Fellowship – $11.4 million, up 11.8% from 2017 • Shortfall between 7th Tradition of Self-Support and Cost of Services Provided to the Fellowship – $3.0 million • AAWS publishing profits – $3.4 million, down 4%, used to cover shortfall between 7th Tradition and Cost of Services, resulting in net GSO profit – $0.4 million • Grapevine subscription levels declined in 2018. GV would have essentially broken even, if not for severance payments • General Fund support of La Viña service activity – $148 thousand • Reserve Fund – $15.9 million, resulting in ratio of 9.7 months

3. 2018 FINANCIAL HIGHLIGHTS

4. 2018 HIGHLIGHTS • 28,314 Groups made $6.7 millions of 7th Tradition contributions • Represents 41.3% of total groups • $237.35 average group contribution • 61% of 28,314 groups have consistently supported GSO during last 6 years • 5,169 Individuals made $819,000 of 7th Tradition contributions • 63% of contributions received through on-line contribution system • $158.50 average individual contribution • $11.4 million - Cost of Services provided to Fellowship • 25% for Outreach Activities • 19% for Service Leadership • 19% for Group Services • 73.4% of cost of services supported by 7th Tradition contributions • 902,004 Big Books sold, of which 83% were to A.A. groups, individuals, central offices, intergroups

5. NEW AUDITORS IN 2018 • Auditors changed to Mark Paneth • With this change, we also changed to “Limited Review” procedures for our quarterly results, versus prior “Compilation” procedures • “Limited Review” provides the Boards and Fellowship with a higher level of assurance that the quarterly results are accurate • Limited Review is not an audit, so the level of assurance is less than audit, but more than a compilation • Audited 2018 financial statements reflect new accounting presentation standards changing our income and functional expense statements, creating significant differences between the two.

6. COMMUNICATING TO THE FELLOWSHIP ABOUT FINANCE Spiritual Value of 7th Tradition Self-Support Slides 5 – 21 Services Provided to the Fellowship Slides 22 – 39 Publishing Activities Slides 40 – 48 Grapevine and La Viña Slides 49 – 54 Pension & Postretirement Medical Plans Slides 55 – 58 Reserve Fund Slides 59 – 61 2019 Budgets Slides 62 – 63 2020 International Convention Slides 64

7. SUMMARY OF ACTIVITY* – 2018

8. GRATITUDE 7TH TRADITION

9. 7TH TRADITION – 2018 – $8.4 MILLION 28,314 GROUPS - $6,720,287 5,169 INDIVIDUALS - $819,280 TOTAL 7TH TRADITION $8,385,009 NEAR RECORD 7TH TRADITON

10. 7TH TRADITION SELF-SUPPORT – 2018

11. 7TH TRADITION SELF-SUPPORT DETAIL – 2018

12. 7TH TRADITION SELF-SUPPORT – 3 YEAR HISTORY 7 – S 2

13. 7TH TRADITION SELF-SUPPORT – 2017

14. 7TH TRADITION SELF-SUPPORT DETAIL – 2017

15. INTERNATIONAL LITERATURE FUND CONTRIBUTIONS

16. GROUP CONTRIBUTIONS – 2018 AVERAGE GROUP CONTRIBUTION – $237.35

17. GROUP CONTRIBUTIONS – 2018

18. GROUP CONTRIBUTIONS – 2017 AVERAGE GROUP CONTRIBUTION – $231.34

19. PERCENTAGE OF GROUPS THAT HAVE CONSISTENTLY CONTRIBUTED DURING THE LAST SIX YEARS

20. NUMBER OF GROUPS THAT HAVE CONSISTENTLY CONTRIBUTED DURING THE LAST SIX YEARS

21. CONTRIBUTIONS FROM GROUPS THAT HAVE CONSISTENTLY CONTRIBUTED DURING THE LAST SIX YEARS

22. AVERAGE DOLLAR CONTRIBUTION FROM GROUPS THAT HAVE CONSISTENTLY CONTRIBUTED DURING THE LAST SIX YEARS

23. BIRTHDAY GIFTS FROM GROUPS – 2018

24. BIRTHDAY GIFTS FROM GROUPS – 2017

25. CONTRIBUTIONS FROM INDIVIDUALS – 2018 AVERAGE INDIVIDUAL CONTRIBUTION – $158.50

26. CONTRIBUTIONS FROM INDIVIDUALS – 2018

27. CONTRIBUTIONS FROM INDIVIDUALS – 2017 AVERAGE INDIVIDUAL CONTRIBUTION – $132.85

28. BIRTHDAY GIFTS FROM INDIVIDUALS – 2018

29. GROWTH OF ON-LINE CONTRIBUTIONS 2010 – 2018

30. BIRTHDAY GIFTS FROM INDIVIDUALS – 2017

31. GROWTH OF ON-LINE CONTRIBUTIONS2010 – 2018

32. GROUPSON-LINE VERSUS MAIL CONTRIBUTIONS – 2018

33. GROUPSON-LINE VERSUS MAIL CONTRIBUTIONS – 2017

34. INDIVIDUALSON-LINE VERSUS MAIL CONTRIBUTIONS – 2018

35. INDIVIDUALSON-LINE VERSUS MAIL CONTRIBUTIONS – 2017

36. $7.40 CHALLENGE CAMPAIGN – 2018

37. $7.27 CHALLENGE CAMPAIGN – 2017

38. 7TH TRADITION SELF-SUPPORT – 2004 – 2018

39. PERCENTAGE OF GROUPS CONTRIBUTING – 2004 – 2018

40. 7TH TRADITION SELF-SUPPORT – 2004 – 2018 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

41. A DOLLAR IS NOT WHAT IT USED TO BE 1935: $1.00 2018: $18.55 • Remember inflation when deciding upon your • 7th Tradition • Self-Support • Contributions for: • Group Meetings • Online Recurring Contributions • Birthday Gifts • November Gratitude Month

42. INFLATION CALCULATOR COST OF A DRINK OVER TIME Bill W. & Dr. Bob Average Delegate’s Sobriety – 25 Years

43. THROUGH OUR OWN SELF-SUPPORT

44. Publishing Services on Behalf of the G.S.B. G.S.O.’s TWO BASIC FUNCTIONS Group Records

45. UNDERSTANDING 2018 TOTAL EXPENSES – $25.3 M $ in Thousands 25,292 TOTAL COSTS & EXPENSES – SLIDE 4 LESS— COST OF LITERATURE RECURRING OPERATING EXPENSES – SLIDE 24 & SLIDE 60 LESS — OPERATING EXPENSES –GSO, GV & LV COST OF SERVICES PROVIDED TO FELLOWSHIP – SLIDE 30 5,556 19,736 8,309 11,427

46. SUMMARY OF ACTIVITY* – 2018

47. UNDERSTANDING TOTAL EXPENSES – 3 YEAR HISTORY

48. UNDERSTANDING 2017 TOTAL EXPENSES – $23.3 M $ in Thousands 23,326 TOTAL COSTS & EXPENSES – SLIDE 4 LESS— COST OF LITERATURE RECURRING OPERATING EXPENSES – SLIDE 24 – S 1 - & SLIDE 60 LESS — OPERATING EXPENSES –GSO, GV & LV COST OF SERVICES PROVIDED TO FELLOWSHIP – SLIDE 30 5,267 18,059 7,837 10,222

49. SUMMARY OF ACTIVITY* – 2017

50. RECURRING OPERATING EXPENSES – 2018 – $19.7 MFINANCIAL STATEMENT EXPENSE CATEGORIESPERCENTAGE BREAKDOWN