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AMERICAN WATER WORKS ASSOCIATION FINANCIAL STATEMENTS AND

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									 AMERICAN WATER WORKS ASSOCIATION

      FINANCIAL STATEMENTS AND
     SUPPLEMENTARY INFORMATION

YEARS ENDED DECEMBER 31, 2009 AND 2008
                  AMERICAN WATER WORKS ASSOCIATION
                          TABLE OF CONTENTS
                     YEAR ENDED DECEMBER 31, 2009




INDEPENDENT ACCOUNTANTS’ REPORT                      1

FINANCIAL STATEMENTS

 STATEMENTS OF FINANCIAL POSITION                     2

 STATEMENT OF ACTIVITIES – 2009                       3

 STATEMENT OF ACTIVITIES – 2008                       4

 STATEMENTS OF CASH FLOWS                            5

 NOTES TO FINANCIAL STATEMENTS                       6

INDEPENDENT ACCOUNTANTS’ REPORT ON
 SUPPLEMENTARY INFORMATION                           22

SUPPLEMENTARY INFORMATION

 SCHEDULE OF FUNCTIONAL EXPENSES – 2009              23

 SCHEDULE OF FUNCTIONAL EXPENSES – 2008              25
                              Independent Accountants’ Report



Board of Directors
American Water Works Association
Denver, Colorado


We have audited the accompanying statement of financial position of American Water Works
Association (the Association) as of December 31, 2009, and the related statement of activities and
cash flows for the year then ended. These financial statements are the responsibility of the
Association's management. Our responsibility is to express an opinion on these financial statements
based on our audit. The financial statements of American Water Works Association for the year
ended December 31, 2008, were audited by other accountants whose report dated April 8, 2009,
expressed an unqualified opinion on those statements.

We conducted our audit in accordance with auditing standards generally accepted in the United States
of America. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement presentation. We believe
that our audit provides a reasonable basis for our opinion.

In our opinion, the 2009 financial statements referred to above present fairly, in all material respects,
the financial position of American Water Works Association as of December 31, 2009, and the
changes in its net assets and its cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.

                                                           \s\ BKD, LLP

April 21, 2010




                                                   (1)
                                      AMERICAN WATER WORKS ASSOCIATION
                                       STATEMENTS OF FINANCIAL POSITION
                                          DECEMBER 31, 2009 AND 2008




                                                                               2009             2008
                                         ASSETS
CURRENT ASSETS
 Cash and Cash Equivalents                                                 $    1,760,124   $    2,003,554
 Investments, Current Portion                                                   4,870,639        7,620,453
 Receivables:
   Trade, Net of Allowance for Doubtful Accounts of $130,000 and $79,684        1,097,338          911,895
   Interest                                                                        88,800          128,656
      Total Receivables                                                         1,186,138        1,040,551
 Prepaid Expenses and Other Assets                                                600,469          624,289
 Inventory, Net of Allowance for Obsolescence of $709,617 and $375,963          1,121,937        1,462,535
     Total Current Assets                                                       9,539,307       12,751,382
Investments, Net of Current Portion                                            12,801,000       10,936,000
Property and Equipment, Net                                                     9,073,665        8,845,687

Bond Issuance Costs, Net of Accumulated Amortization
 of $96,149 and $85,816                                                           36,642           46,975

Other Assets                                                                      46,773           45,950

      Total Assets                                                         $   31,497,387   $   32,625,994

                          LIABILITIES AND NET ASSETS

CURRENT LIABILITIES
 Payables:
   Trade                                                                   $    1,000,540   $    1,989,420
   Water For People                                                                 4,695           10,322
   Water Research Foundation                                                        4,056           24,018
   Research Contracts                                                              44,124          229,739
     Total Payables                                                             1,053,415        2,253,499
 Accrued Expenses                                                               1,249,936        1,353,478
 Deferred Revenue                                                               8,976,026       10,227,913
 Bonds Payable, Current Portion                                                   315,000          300,000
     Total Current Liabilities                                                 11,594,377       14,134,890
BONDS PAYABLE, NET OF CURRENT PORTION                                           1,025,000        1,340,000
ACCRUED MINIMUM PENSION LIABILITY                                               3,201,405        4,815,306
    Total Liabilities                                                          15,820,782       20,290,196
NET ASSETS
 Unrestricted:
   Undesignated                                                                13,648,599       10,430,192
   Board Designated                                                               350,000          300,000
     Total Unrestricted Net Assets                                             13,998,599       10,730,192
 Temporarily Restricted                                                           478,111          438,561
 Permanently Restricted                                                         1,199,895        1,167,045
     Total Net Assets                                                          15,676,605       12,335,798

      Total Liabilities and Net Assets                                     $   31,497,387   $   32,625,994




                                                           (2)
See accompanying Notes to Financial Statements
                                   AMERICAN WATER WORKS ASSOCIATION
                                        STATEMENT OF ACTIVITIES
                                      YEAR ENDED DECEMBER 31, 2009


                                                                                  2009
                                                                    Temporarily          Permanently
                                                 Unrestricted        Restricted           Restricted      Total
REVENUE AND OTHER SUPPORT
 Membership Dues                                 $ 12,128,412   $           -        $           -     $ 12,128,412
 Conferences                                        7,458,368               -                    -        7,458,368
 Publication Sales                                  3,893,772               -                    -        3,893,772
 Advertising                                        3,588,545               -                    -        3,588,545
 Subscriptions                                      1,050,096               -                    -        1,050,096
 Royalties and Other Income                         1,390,735               -                    -        1,390,735
 Grants                                                 6,517               -                    -            6,517
 Seminar, Teleconference and Workshop Fees            645,912               -                    -          645,912
 Water Research Foundation/Water For People           428,892               -                    -          428,892
 Investment Income                                    686,486            64,898                  -          751,384
 Consulting Income                                    257,769               -                    -          257,769
 Contributions                                         50,000            11,419               32,850         94,269
 Net Assets Released from Restriction                  36,767           (36,767)                 -              -
     Total Revenue and Other Support               31,622,271            39,550               32,850     31,694,671

EXPENSES
  Program Services:
    Committees                                      1,605,944               -                    -        1,605,944
    Conferences                                     4,667,363               -                    -        4,667,363
    Government Affairs                                751,928               -                    -          751,928
    Grants/Contracts                                  283,295               -                    -          283,295
    Information Services                            1,365,586               -                    -        1,365,586
    Member Section Services                         2,589,160               -                    -        2,589,160
    Public Affairs                                    403,259               -                    -          403,259
    Publication and Subscriptions                   8,043,036               -                    -        8,043,036
    Seminars, Teleconferences and Workshops         1,116,857               -                    -        1,116,857
    Standards and Materials Development             1,105,040               -                    -        1,105,040
    Technical and Education Programs                  337,397               -                    -          337,397
    Water Industry Technical Action Fund              849,199               -                    -          849,199
    Wolman and Larson                                  36,767               -                    -           36,767
       Total Program Services                      23,154,831               -                    -       23,154,831
  Supporting Services:
    General Administration                          4,920,959               -                    -        4,920,959
    Marketing                                       1,802,792               -                    -        1,802,792
       Total Supporting Services                    6,723,751               -                    -        6,723,751
       Total Expenses                              29,878,582               -                    -       29,878,582

CHANGE IN NET ASSETS, BEFORE
 RECOGNITION OF CHANGE IN
 MINIMUM PENSION LIABILITY                          1,743,689            39,550               32,850      1,816,089

CHANGE IN MINIMUM PENSION LIABILITY                 1,524,718               -                    -        1,524,718

CHANGE IN NET ASSETS                                3,268,407            39,550               32,850      3,340,807

Net Assets - Beginning of Year                     10,730,192           438,561            1,167,045     12,335,798

NET ASSETS - END OF YEAR                         $ 13,998,599   $       478,111      $     1,199,895   $ 15,676,605




                                                        (3)
See accompanying Notes to Financial Statements
                                   AMERICAN WATER WORKS ASSOCIATION
                                        STATEMENT OF ACTIVITIES
                                      YEAR ENDED DECEMBER 31, 2008


                                                                                   2008
                                                                     Temporarily          Permanently
                                                 Unrestricted         Restricted           Restricted      Total
REVENUE AND OTHER SUPPORT
 Membership Dues                                 $ 12,015,759    $           -        $           -     $ 12,015,759
 Conferences                                        7,994,516                -                    -        7,994,516
 Publication Sales                                  4,976,615                -                    -        4,976,615
 Advertising                                        4,194,493                -                    -        4,194,493
 Subscriptions                                      1,097,812                -                    -        1,097,812
 Royalties and Other Income                         1,540,450                -                    -        1,540,450
 Grants                                               141,941                -                    -          141,941
 Seminar, Teleconference and Workshop Fees            985,837                -                    -          985,837
 Water Research Foundation/Water For People           580,055                -                    -          580,055
 Investment Income                                    711,076             72,278                  -          783,354
 Consulting Income                                    138,593                -                    -          138,593
 Contributions                                            -                4,149               35,200         39,349
 Net Assets Released from Restriction                  47,617            (47,617)                 -              -
     Total Revenue and Other Support               34,424,764             28,810               35,200     34,488,774

EXPENSES
  Program Services:
    Committees                                      2,519,396                -                    -        2,519,396
    Conferences                                     4,715,838                -                    -        4,715,838
    Government Affairs                                975,706                -                    -          975,706
    Grants/Contracts                                  150,821                -                    -          150,821
    Information Services                            1,489,133                -                    -        1,489,133
    Member Section Services                         2,920,262                -                    -        2,920,262
    Public Affairs                                    726,671                -                    -          726,671
    Publication and Subscriptions                   8,863,551                -                    -        8,863,551
    Seminars, Teleconferences and Workshops         1,061,731                -                    -        1,061,731
    Standards and Materials Development             1,121,473                -                    -        1,121,473
    Technical and Education Programs                  445,223                -                    -          445,223
    Water Industry Technical Action Fund            1,609,400                -                    -        1,609,400
    Wolman and Larson                                  47,617                -                    -           47,617
       Total Program Services                      26,646,822                -                    -       26,646,822
  Supporting Services:
    General Administration                          5,519,847                -                    -        5,519,847
    Marketing                                       1,409,178                -                    -        1,409,178
       Total Supporting Services                    6,929,025                -                    -        6,929,025
       Total Expenses                              33,575,847                -                    -       33,575,847

CHANGE IN NET ASSETS, BEFORE
 RECOGNITION OF CHANGE IN
 MINIMUM PENSION LIABILITY                            848,917             28,810               35,200        912,927

CHANGE IN MINIMUM PENSION LIABILITY                (6,240,927)               -                    -       (6,240,927)

CHANGE IN NET ASSETS                               (5,392,010)            28,810               35,200     (5,328,000)

Net Assets - Beginning of Year                     16,122,202            409,751            1,131,845     17,663,798

NET ASSETS - END OF YEAR                         $ 10,730,192    $       438,561      $     1,167,045   $ 12,335,798




                                                        (4)
See accompanying Notes to Financial Statements
                                AMERICAN WATER WORKS ASSOCIATION
                                    STATEMENTS OF CASH FLOWS
                                    DECEMBER 31, 2009 AND 2008


                                                                     2009              2008

CASH FLOWS FROM OPERATING ACTIVITIES
 Change in Net Assets                                          $ 3,340,807        $ (5,328,000)
 Adjustments to Reconcile Change in Net Assets to
  Net Cash Provided (Used) by Operating Activities:
  Contributions Restricted for Endowment                              (32,850)          (35,200)
  Depreciation and Amortization                                       871,962           735,278
  Amortization of Discount on Bond Issuance Costs                      10,333             9,834
  (Gain) Loss on Disposal of Property and Equipment                    (8,500)           31,102
  Unrealized (Gain) Loss on Investments                               (67,832)          107,286
  Changes in Assets and Liabilities:
    Receivables                                                       (145,587)         103,554
    Prepaid Expenses and Other Assets                                   22,997           76,021
    Prepaid Pension Expenses                                                -         1,197,535
    Inventory                                                          340,598         (151,275)
    Payables                                                        (1,200,084)         970,148
    Accrued Expenses                                                  (103,542)        (224,676)
    Deferred Revenue                                                (1,251,887)         609,500
    Accrued Pension Obligation                                      (1,613,901)       4,815,306
      Net Cash Provided by Operating Activities                        162,514        2,916,413

CASH FLOWS FROM INVESTING ACTIVITIES
 Purchases of Investments                                          (10,812,972)       (9,252,000)
 Proceeds on Sale of Investments                                    11,765,618         6,790,189
 Purchases of Property and Equipment                                (1,099,940)       (1,327,501)
 Proceeds from Disposal of Property and Equipment                        8,500                -
      Net Cash Used by Investing Activities                           (138,794)       (3,789,312)

CASH FLOWS FROM FINANCING ACTIVITIES
 Payment on Bonds Payable                                            (300,000)         (285,000)
 Contributions Restricted for Endowment                                32,850            35,200
      Net Cash Used by Financing Activities                          (267,150)         (249,800)

NET DECREASE IN CASH AND CASH EQUIVALENTS                            (243,430)        (1,122,699)

Cash and Cash Equivalents - Beginning of Year                       2,003,554         3,126,253

CASH AND CASH EQUIVALENTS - END OF YEAR                        $ 1,760,124        $ 2,003,554


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
 Cash Paid for Interest                                        $       13,972     $      53,918

  Cash Paid for Income Taxes                                   $      358,200     $     294,500




                                                      (5)
See accompanying Notes to Financial Statements
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 1   ORGANIZATION

         The American Water Works Association (the Association) was organized for the purpose of
         promoting public health, safety and welfare through the improvement of the quality and quantity
         of water delivered to the public and the development and furtherance of understanding of the
         problems related thereto by:

            •   Advancing the knowledge of the design, construction, operation, water treatment and
                management of water utilities; and developing standards for procedures, equipment
                and materials used by public water supply systems

            •   Advancing the knowledge of the problems involved in the development of resources,
                production and distribution of safe and adequate water supplies

            •   Educating the public on the problems of water supply and promoting a spirit of
                cooperation between consumers and suppliers in solving these problems

            •   Conducting research to determine the causes of problems of providing a safe and
                adequate water supply and proposing solutions in an effort to improve the quality of the
                water supply provided to the public


NOTE 2   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

         Basis of Accounting
         The financial statements of the Association are presented on the accrual basis of accounting.
         Consequently, revenue is recognized when earned and expenses are recognized when the
         obligations are incurred.

         Use of Estimates
         The preparation of 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 and disclosures. Consequently, actual results
         could differ from those estimates.

         Income Tax Exemption
         The Association is exempt from federal income taxes under provisions of Section 501(c)(3) of
         the Internal Revenue Code (IRC). It has been determined that the Association is not a private
         foundation as defined in Section 509(a) of the IRC. The Association engages in certain
         activities that produce unrelated business income as defined by federal income tax regulations.
         Income tax expense on unrelated business activities and advertising totaled approximately
         $281,650 and $349,100 for the years ended December 31, 2009 and 2008, respectively.

         Cash and Cash Equivalents
         For financial statement purposes, the Association considers cash and cash equivalents to
         include cash in the bank and liquid investments with an original maturity of three months or
         less. At December 31, 2009, cash equivalents consisted primarily of money market accounts.


                                                 (6)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 2   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Investments
         Investments are reported at fair value in the accompanying financial statements. Current
         investments are intended to fund current operations. In the event that the investments are not
         needed at the time of maturity, the funds are reinvested.

         Fair Value Measurements
         On January 1, 2008, the Association adopted Statement of Financial Accounting Standard
         No. 157, Fair Value Measurements, which was subsequently incorporated into the FASB
         Accounting Standards Codification (ASC) in Topic 820 (Topic 820). Topic 820 applies to
         reported balances that are required or permitted to be measured at fair value under an existing
         accounting pronouncement.

         Topic 820, Fair Value Measurements, defines fair value, establishes a framework for
         measuring fair value, establishes a fair value hierarchy based on the quality of inputs used to
         measure fair value, and requires expanded disclosures about fair value measurements.

         The Association accounts for its investments at fair value. In accordance with Topic 820, the
         Association has categorized its investments, based on the priority of the inputs to the valuation
         technique, into a three-level fair value hierarchy. The fair value hierarchy gives the highest
         priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the
         lowest priority to unobservable inputs (Level 3). If the inputs used to measure the financial
         instruments fall within different levels of the hierarchy, the categorization is based on the
         lowest level input that is significant to the fair value measurement of the instrument.

         The Association adopted Statement of Financial Accounting Standard No. 159, The Fair Value
         Option for Financial Assets and Liabilities, which was subsequently incorporated into the FASB
         Accounting Standards Codification in Topic 825 (Topic 825) on January 1, 2008. Topic 825
         allows entities the irrevocable option to elect fair value for the initial and subsequent
         measurement for certain financial assets and liabilities on an instrument-by-instrument basis.
         The Association has not elected to measure any existing financial instruments at fair value at
         January 1, 2008, as permitted under Topic 825. However, the Association may elect to
         measure newly acquired financial instruments at fair value in the future.

         Inventory
         Inventory is stated at the lower of cost or market and valued on an average cost basis.
         Inventory consists of work in progress and completed educational materials. Inventory in stock
         in excess of one year’s of sales is booked as a reserve for obsolescence. The reserve for
         obsolescence was $709,617 and $375,963 as of December 31, 2009 and 2008, respectively.




                                                 (7)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 2   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         Accounts Receivable
         Accounts receivable are stated at unpaid balances, less an allowance for doubtful accounts.
         The allowance is based on an analysis of accounts receivable aging. The Association charges
         uncollectible receivables against the allowance for doubtful accounts when all other options to
          pursue collection have been exhausted. The allowance for doubtful accounts is $130,000 and
         $79,684 at December 31, 2009 and 2008, respectively.

         Property and Equipment
         Acquisitions of furniture and equipment, including computers and software greater than $1,000
         ($5,000 for federal grants) are capitalized at cost and are depreciated using the straight-line
         method over the estimated useful lives of the assets, which range from 2 to 10 years.

         The building is stated at cost and depreciated using the straight-line method over an estimated
         useful life of 50 years. Building improvements greater than $1,000 are capitalized and
         amortized using the straight-line method over the remaining estimated life of the building or the
         estimated life of the asset, whichever is less. Land is recorded at cost.

         Net Assets
         The Association’s resources are classified for accounting and reporting purposes into net
         assets groups based on the existence or absence of donor-imposed restrictions. The net asset
         groups are as follows:

            •   Unrestricted net assets represent resources available for support of the operations of
                the Association. The minimum pension liability item is an amount representing the
                accumulated benefit obligation of the Association’s defined benefit plan (see Note 10)
                in excess of the plan’s assets. Furthermore, the Board of Directors designated
                $300,000 of unrestricted net assets for use by the Association’s Water Utility Council
                (WUC) and $50,000 to be included as part of the Wolman endowment fund

            •   Temporarily restricted net assets represent resources received by the Association from
                contributors that are purpose or time restricted by the donors

            •   Permanently restricted net assets represent resources that are to be held in perpetuity
                by the Association as stipulated by donors

         Revenue Recognition
         Revenue from membership dues, conferences, publications, advertising subscriptions and
         government funding is recognized in the year in which it is earned. Amounts received from
         these sources but not yet earned are recorded as deferred revenue in the accompanying
         financial statements.

         The Association recognizes contributions, including unconditional promises to give, as revenue
         in the period received. All contributions are considered to be available for unrestricted use
         unless specifically restricted by the donor. Temporarily restricted net assets become
         unrestricted when the time restrictions expire or the funds are used for their restricted purpose
         and are reported in the statement of activities as net assets released from restriction.
         Contributions and investment income that are originally restricted by the donor and for which
                                                  (8)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 2   SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

         the restriction is met in the same time period are recorded as temporarily restricted and then
         released from restriction.

         Donated Services
         Volunteers have made significant contributions of time in the furtherance of the Association’s
         programs. Under ASC 605-958, organizations are required to record contributed services, if
         the service (1) would typically need to be purchased by the organization if they had not been
         contributed, (2) require specialized skills, and (3) are provided by individuals with those skills.
         The value of the Association’s volunteer time is not reflected in the accompanying financial
         statements since these services do not meet the criteria for recognition under ASC 605-958.

         Advertising Costs
         Advertising costs are charged to expense when the advertising first occurs and amounted to
         $1,999,000 and $2,938,041 for the years ended December 31, 2009 and 2008, respectively.
         Advertising primarily relates to expenses associated with promoting the Association’s
         conferences, industry or issues affecting the Association’s members.

         Allocation of Expenses
         The Association’s expenses have been summarized on a functional basis in the accompanying
         statement of activities. Accordingly, certain costs have been allocated among programs and
         supporting services benefited.

         Subsequent Events
         Subsequent events have been evaluated through April 21, 2010, which is the date the financial
         statements were available to be issued.

         Reclassifications
         Certain reclassifications have been made to the 2008 financial statements to conform to the
         2009 financial statement presentation. These reclassifications had no effect on the change in
         net assets.


NOTE 3   CONCENTRATION OF RISK

         Financial instruments that subject the Association to a concentration of credit risk consist of
         cash and money market funds placed with financial institutions. At certain times during 2009,
         funds invested with financial institutions exceeded the insured limits. As of December 31, 2009,
         the Association’s cash and money market accounts exceeded insured limits by approximately
         $681,000. Management believes the risk of loss in these situations is minimal.




                                                  (9)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 4   INVESTMENTS

         At December 31, 2009 and 2008, investments consisted of the following:

                                                                           2009                2008

         Current:
          Certificates of Deposit                                     $    4,572,000      $    6,894,645
          U.S. Government Securities                                              -              500,625
          Mutual Funds - Fixed Income                                        298,639             225,183
              Total Current                                                4,870,639           7,620,453

         Non-Current:
          Certificates of Deposit                                         12,801,000           9,431,000
          U.S. Government Securities                                             -             1,505,000
             Total Non-Current                                            12,801,000          10,936,000

              Total                                                   $ 17,671,639        $ 18,556,453



         Investment income for the years ended December 31, 2009 and 2008 consisted of the
         following:

                                                                           2009                2008

         Interest and Dividends                                       $      683,552      $      890,640
         Unrealized Gain (Loss) on Investments                                67,832            (107,286)

                                                                      $      751,384      $     783,354


NOTE 5   FAIR VALUE MEASUREMENTS

         The Association uses fair value measurements to record fair value adjustments to certain
         assets and liabilities and to determine fair value disclosures. Securities available for sale are
         recorded at fair value on a recurring basis. Fair value measurement is based upon quoted
         prices, if available. If quoted prices are not available, fair values are measured using
         independent pricing models or other model-based valuation techniques such as the present
         value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions,
         and other factors such as credit loss assumptions. Securities valued using Level 1 inputs
         include fixed income mutual funds. Securities valued using Level 2 inputs include certificates
         of deposit. The Association does not have any securities that are valued using Level 3 inputs.

         All Certificates of Deposit are held to maturity.




                                                 (10)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 5   FAIR VALUE MEASUREMENTS (CONTINUED)

         The following table presents the Association’s fair value hierarchy for those assets measured
         at fair value on a recurring basis as of December 31, 2009 and 2008:

                                                                            2009

                                                 Level 1       Level 2                 Level 3               Total

         Investments:
           Certificates of Deposit           $         -     $ 17,373,000          $         -           $ 17,373,000
           Mutual Funds - Fixed Income             298,639            -                      -                298,639

                                             $     298,639   $ 17,373,000          $         -           $ 17,671,639




                                                                            2008

                                                 Level 1       Level 2                 Level 3               Total

         Investments:
           Certificates of Deposit           $         -     $ 16,325,645          $         -           $ 16,325,645
           U.S. Government Securities                  -        2,005,625                    -              2,005,625
           Mutual Funds - Fixed Income             225,183            -                      -                225,183
                                             $     225,183   $ 18,331,270          $         -           $ 18,556,453




NOTE 6   PROPERTY AND EQUIPMENT

         At December 31, 2009 and 2008 property and equipment consisted of the following:

                                                                            2009                      2008

         Building and Improvements                                   $    9,445,800              $    9,334,386
         Land and Improvements                                              574,190                     574,190
         Furniture, Fixtures and Equipment                                2,194,791                   2,220,417
         Computer Hardware                                                  859,225                     797,024
         Computer Software                                                3,896,400                   2,978,973
                                                                         16,970,406                  15,904,990
         Less Accumulated Depreciation and Amortization                  (7,896,741)                 (7,059,303)

                                                                     $      9,073,665            $    8,845,687




                                                    (11)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 7   DEFERRED REVENUE

         At December 31, 2009 and 2008 deferred revenue consisted of the following:


                                                                           2009               2008

         Membership Dues                                              $    6,110,253      $   6,713,474
         Subscriptions                                                       484,588            521,364
         Conference Exhibit Fees                                           1,260,468          1,667,657
         Other                                                               327,246            422,431
         Water Industry Technical Action Fund                                793,471            902,987

                                                                      $    8,976,026      $ 10,227,913




NOTE 8   BONDS PAYABLE

         The Association has $1,340,000 in term bonds that bear a variable interest rate (0.67% at
         December 31, 2009). The Association makes payments of principal annually on April 1 and
         interest monthly with the final term bond maturing in 2013.

         These bonds are collateralized by a letter of credit which contains certain restrictive covenants,
         and is collateralized by the building. For the year ended December 31, 2009, the Association
         was in compliance with all covenants.

         Future minimum principal payments on these bonds for the year ending December 31 are as
         follows:

                        Year Ending December 31,                           Amount

                                   2010                                $     315,000
                                   2011                                      325,000
                                   2012                                      340,000
                                   2013                                      360,000
                                   Total                               $    1,340,000


         Interest expense relating to these bonds totaled $23,207 and $60,182 for the years ended
         December 31, 2009 and 2008, respectively.




                                                 (12)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 9   RESTRICTED NET ASSETS AND ENDOWMENTS

         The Association has donor restricted endowment funds established for the purposes of
         providing income to awards and scholarships. The Association receives contributions in
         support of the following awards:

                 • Wolman - an award of excellence to recognize those whose careers in the water
                   works industry exemplify vision, creativity, and excellent professional performance
                   characteristic of Abel Wolman’s long and productive career

                 • Larson - scholarships honor the memory of Dr. Larson by providing support and
                   encouragement to outstanding graduate students preparing for careers in the fields
                   of science or engineering to which Dr. Larson made significant contributions

         As required by GAAP, net assets of the endowment fund are classified and reported based on
         the existence or absence of donor-imposed restrictions. The Board of Directors of the
         Association has interpreted the State’s Uniform Prudent Management of Institutional Funds Act
         (UPMIFA) as requiring the preservation of the fair value of the original gift as of the gift date of
         the donor-restricted endowment funds absent explicit donor stipulations to the contrary. As a
         result of this interpretation, the Association classifies as permanently restricted net assets (a)
         the original value of gifts donated to the permanent endowment, (b) the original value of
         subsequent gifts to the permanent endowment, and (c) accumulations to the permanent
         endowment made in accordance with the direction of the applicable donor gift instrument at the
         time the accumulation is added to the fund. The remaining portion of the donor-restricted
         endowment fund that is not classified in permanently restricted net assets is classified as
         temporarily restricted net assets until those amounts are appropriated for expenditure by the
         Association in a manner consistent with the standard of prudence prescribed by UPMIFA. In
         accordance with UPMIFA, the Association considers the following factors in making a
         determination to appropriate or accumulate donor-restricted endowment funds:

                    (1) The duration and preservation of the fund
                    (2) The purposes of the Association and the donor-restricted endowment fund
                    (3) General economic conditions
                    (4) The possible effect of inflation and deflation
                    (5) The expected total return from income and the appreciation of investments
                    (6) Other resources of the Association
                    (7) The investment policies of the Association

         The Association’s endowment investment policy is focused on preservation of capital and all
         amounts are invested in certificates of deposit. The Association has a spending policy of
         appropriating for expenditure each year the amounts needed for spending in accordance with
         the purpose restrictions as outlined by the donors.




                                                  (13)
                         AMERICAN WATER WORKS ASSOCIATION
                           NOTES TO FINANCIAL STATEMENTS
                             DECEMBER 31, 2009 AND 2008



NOTE 9   RESTRICTED NET ASSETS AND ENDOWMENTS (CONTINUED)

         The endowment net asset composition by type of fund at December 31, 2009 and 2008:

                                                                              2009
                                                                Temporarily          Permanently
                                            Unrestricted         Restricted           Restricted      Total

         Donor-restricted endowment funds   $             -     $   478,111      $ 1,199,895       $ 1,678,006
         Board-designated endowment funds              50,000           -                -              50,000
           Total Funds                      $          50,000   $   478,111      $ 1,199,895       $ 1,728,006


                                                                              2008
                                                                Temporarily          Permanently
                                            Unrestricted         Restricted           Restricted      Total

         Donor-restricted endowment funds   $             -     $   438,561      $ 1,167,045       $ 1,605,606
         Board-designated endowment funds                 -             -                -                 -
           Total Funds                      $             -     $   438,561      $ 1,167,045       $ 1,605,606


         The Association’s Board of Directors authorized a contribution to the Wolman Endowment
         Fund of $50,000. It is a board-designated contribution.

                                                                              2009
                                                                Temporarily          Permanently
                                            Unrestricted         Restricted           Restricted      Total

         Wolman                             $          50,000   $   372,712      $ 1,006,957       $ 1,429,669
         Larson                                           -         105,399          192,938           298,337

           Total Funds                      $          50,000   $   478,111      $ 1,199,895       $ 1,728,006


                                                                              2008
                                                                Temporarily          Permanently
                                            Unrestricted         Restricted           Restricted      Total

         Wolman                             $             -     $   338,630      $       974,107   $ 1,312,737
         Larson                                           -          99,931              192,938       292,869

           Total Funds                      $             -     $   438,561      $ 1,167,045       $ 1,605,606




                                                (14)
                              AMERICAN WATER WORKS ASSOCIATION
                                NOTES TO FINANCIAL STATEMENTS
                                  DECEMBER 31, 2009 AND 2008



NOTE 9    RESTRICTED NET ASSETS AND ENDOWMENTS (CONTINUED)

          The endowment net assets and activity for 2009 and 2008 consisted of the following:

                                                                                             Net Assets
                                                                             Temporarily           Permanently
                                                              Unrestricted       Restricted            Restricted       Total
          Endowment Fund Balance as of
            December 31, 2007                                 $       -      $      409,751        $    1,131,845   $   1,541,596

          Contributions                                               -                4,149               35,200         39,349

          Earnings:
            Interest and Dividends                                    -              72,278                    -          72,278
            Realized and Unrealized Gains and Losses                  -                  -                     -                -
                                                                      -              72,278                    -          72,278

          Appropriations                                              -              (47,617)                  -          (47,617)

          Endowment Fund Balance as of
            December 31, 2008                                         -             438,561             1,167,045       1,605,606

          Contributions                                            50,000            11,419                32,850         94,269

          Earnings:
            Interest and Dividends                                    -              64,898                    -          64,898
            Realized and Unrealized Gains and Losses                  -                  -                     -                -
                                                                      -              64,898                    -          64,898

          Appropriations                                              -              (36,767)                  -          (36,767)

          Endowment Fund Balance as of
           December 31, 2009                                  $    50,000    $      478,111        $    1,199,895   $   1,728,006




NOTE 10   EMPLOYEE BENEFIT PLANS

          Defined Benefit Pension Plan
          The Association, Water Research Foundation (the Foundation) and Water for People (WFP)
          participate in a common defined benefit pension plan (the Plan) to provide pension benefits to
          substantially all employees. Each organization’s plan assets, periodic benefits costs and
          funded status are allocated based upon the projected benefit obligation. As of December 31,
          2009, the Association’s percentage was approximately 72.6%. The Plan was amended as of
          January 1, 2007 approving: Water For People as a participating employer in the Plan and
          participation in the Plan by Water For People employees. Benefits under the Plan are based
          upon the participant’s length of service and level of compensation. The Association’s policy is
          to make periodic contributions in conformity with minimum funding requirements.

          Effective December 31, 2007 the participating employers froze the defined benefit pension
          plan for all participants.

                                                       (15)
                           AMERICAN WATER WORKS ASSOCIATION
                             NOTES TO FINANCIAL STATEMENTS
                               DECEMBER 31, 2009 AND 2008



NOTE 10   EMPLOYEE BENEFIT PLANS (CONTINUED)

          In the Statement of Financial Position at December 31, 2009 and 2008, a pension liability in
          the amount of $3,201,405 and $4,815,306, respectively, is recognized. The measurement
          dates used for the Plan disclosures are as of December 31, 2009 and 2008.

          The changes in the projected benefit obligation are as follows:

                                                                    2009              2008
          Change in Projected Benefit Obligation
           Projected Benefit Obligation at Beginning of Year   $ 17,105,634      $ 15,593,402

              Interest Cost                                         1,013,330         1,012,234
              Actuarial Losses                                        398,604         1,073,294
              Benefits Paid                                          (626,154)         (573,296)
                Total                                                 785,781         1,512,232

            Projected Benefit Obligation at End of Year        $ 17,891,414      $ 17,105,634


                                                                    2009             2008
          Change in Plan Assets
           Fair Value of Plan Assets at Beginning of Year      $   12,290,328    $ 16,790,937

             Employer Contributions                                   617,508           578,800
             Benefits Paid                                           (626,154)         (573,296)
             Actual Return on Plan Assets                           2,408,327        (4,506,113)
              Total                                                 2,399,681        (4,500,609)

            Fair Value of Plan Assets at End of Year           $ 14,690,009      $ 12,290,328

          Funded Status of the Plan
           Benefit Obligation                                  $ 17,891,414      $ 17,105,634
           Fair Value of Plan Assets                             14,690,009        12,290,328

            Funded Status at End of Year                       $   (3,201,405)   $   (4,815,305)

          Components of Net Periodic Benefit Costs
           Interest Cost                                       $    1,013,330    $    1,012,234
           Expected Return on Plan Assets                            (897,734)       (1,240,320)
           Amortization of Loss                                       756,531               -

            Net Periodic Pension Cost                          $     872,127     $    (228,086)




                                                   (16)
                            AMERICAN WATER WORKS ASSOCIATION
                              NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2009 AND 2008



NOTE 10   EMPLOYEE BENEFIT PLANS (CONTINUED)


          Over/Underfunded Plan Information
                                                                      2009                   2008
          Projected Benefit Obligation at End of Year               $17,891,414            $17,105,634
          Accumulated Benefit Obligation at End of Year              17,891,414             17,105,634
          Fair Value of Assets at End of Year                        14,690,009             12,290,328


          Weighted average assumptions used to determine net periodic benefit cost as of
          December 31, 2009 and 2008 are as follows:

                                                                       2009                   2008
          Assumptions Used to Determine Benefit Obligations
           at December 31:
             Assumed Discount Rate                                         5.83%                  6.14%

          Assumptions Used to Determine Benefit Obligations
           for Years Ended December 31:
             Assumed Discount Rate                                         6.14%                  6.40%
             Assumed Annual Increase in Salaries                              N/A                    N/A
             Expected Long-term Return on Plan Assets                      7.50%                  7.50%


          The Plan uses fair value measurements to record fair value adjustments to certain assets and
          to determine fair value disclosures. The following table presents the fair value hierarchy for the
          balances of the assets of the Plan measured at fair value on a recurring basis as of
          December 31, 2009:

                                                     Level 1        Level 2             Level 3            Total

          Collective Trust Funds:
           Equity Funds                         $          -     $ 8,858,564        $         -       $ 8,858,564
           Fixed Income Funds                              -       4,627,060                  -         4,627,060
           Other                                           -       1,204,385                  -         1,204,385
                                                $          -     $ 14,690,009       $         -       $ 14,690,009


          Equity funds are allocated between U.S. equity securities (79%) and international securities
          (21%). These portfolios are diversified and primarily include investments in growth/value
          portfolio, mid-cap companies and small-cap companies primarily located in the United States
          as well as investments in international growth portfolio and overseas equity portfolio.

          Fixed income funds include investments in intermediate fixed income portfolio, diversified in
          government and corporate bonds, and represents 31% of the total investment portfolio.

          Other investments are comprised of cash equivalents and stable value (Guaranteed Interest
          Contract portfolio) and represent 8% of the total investment portfolio.

                                                    (17)
                            AMERICAN WATER WORKS ASSOCIATION
                              NOTES TO FINANCIAL STATEMENTS
                                DECEMBER 31, 2009 AND 2008



NOTE 10   EMPLOYEE BENEFIT PLANS (CONTINUED)

          Basis Used to Determine Expected Long-term Rate of Return
          The determination of the long-term rate of return on assets was developed based on the mix of
          assets in the portfolio. Based on an overall strategic mix of the plan assets, the overall long-
          term rate of return is expected to approximate 7.5%, of which 5.9% is expected from equity
          funds and 1.74% is expected from fixed income funds.

          In general, investments are exposed to various risks, such as interest rate, credit and overall
          market volatility risk. Due to the level of risk associated with certain investments, it is
          reasonably possible that changes in the values of the investments will occur in the near term
          and that such changes could materially affect the investment balances and the amounts
          reported in the Statements of Financial Position.

          Investment Policies and Strategies, Including Target Allocations
          The investment policy for the plan is to have approximately 60% of the plan’s assets in equity
          funds and approximately 40% in fixed income investments. The percentage allocation to each
          asset class may vary as much as plus or minus 10% from original target depending upon
          market conditions. The percentage of the fair value of total plan assets held as of
          December 31, 2009 and 2008 (the measurement date) by asset category is as follows:

                                                                     2009                2008
          Asset Category:
           Equity Funds                                                     61%                 55%
           Debt Funds                                                       31%                 35%
           Other                                                             8%                 10%
                                                                          100%                100%



          The Association attempts to mitigate investment risk by rebalancing between debt and equity
          classes as the Association’s contributions and monthly benefit payments are made. Although
          changes in interest rates may affect the fair value of a portion of the investment portfolio and
          cause unrealized gains and losses, such gains and losses would not be realized unless the
          investments are sold.

          Expected Association contributions in fiscal year 2010 are $1,300,000. Estimated future
          benefit payments are as follows:

          Year Ending December 31,                   Amount

                        2010                    $        762,928
                        2011                             846,756
                        2012                             917,759
                        2013                             981,072
                        2014                           1,041,374
                     2015 - 2019                       5,946,877




                                                    (18)
                          AMERICAN WATER WORKS ASSOCIATION
                            NOTES TO FINANCIAL STATEMENTS
                              DECEMBER 31, 2009 AND 2008



NOTE 10   EMPLOYEE BENEFIT PLANS (CONTINUED)

          Defined Contribution Plan
          The Association and Water For People also participate in a common defined contribution
          pension plan (the Plan). The Plan was established under the provisions of Internal Revenue
          Code Subsection 403(b). All employees are eligible to participate upon hire. The Association
          matches 100% of the first 3% of the employee’s salary on a payroll by payroll basis. Starting
          January 1, 2008 the Association added a safe harbor employer contribution of 3% of the
          employee’s salary, and a discretionary employer contribution of 3% of employee’s salary to the
          Plan. The Association’s contribution to the Plan included $897,122 for the year ended
          December 31, 2009 and $959,551 for the year ended December 31, 2008. Water Research
          Foundation participated in the Plan until January 1, 2009.

          Executive Benefit Plan
          Effective January 1, 1994, the Association adopted a non-qualified deferred compensation plan
          (the Plan) covering certain key employees. Under this Plan, eligible participants can elect to
          defer a portion of their salary in accordance with limits specified by the Plan and the
          Association may elect to contribute to the Plan. The Association made no contributions to the
          Plan in 2009.


NOTE 11   COMMITMENTS

          Operating Leases
          The Association rents equipment, warehouse space and office facilities under non-cancelable
          operating leases that expire between the years 2010 and 2015. In 2009 and 2008, rent
          expense for non-cancelable leases and other rental agreements totaled $1,178,702 and
          $1,155,741, respectively.

          Minimum annual rental payments under these leases are as follows:

                         Year Ending December 31,

                                  2010                               $     435,449
                                  2011                                     384,406
                                  2012                                     395,795
                                  2013                                     351,169
                                  2014                                     318,861
                                Thereafter                                 255,603

                                   Total                             $    2,141,283




                                                 (19)
                           AMERICAN WATER WORKS ASSOCIATION
                             NOTES TO FINANCIAL STATEMENTS
                               DECEMBER 31, 2009 AND 2008



NOTE 11   COMMITMENTS (CONTINUED)

          Member Section Allotments
          The Association’s Board of Directors approved an annual allotment in January 2009 to its
          member sections payable in 2009. This allotment provides operating funds for the calendar
          year. The allotments are based upon the membership dues received by the Association from
          members in each section’s geographic area for the year ended the previous August. The
          commitment for section allotments to be paid in 2010 is $1,925,200.

          Line of Credit
          The Association has a $1,000,000 line of credit with a financial institution. The interest rate is
          equal to JP Morgan’s prime rate. As of December 31, 2009, no amounts were outstanding on
          this line of credit. This line of credit expires on June 1, 2010 and management anticipates
          renewal of the line of credit.

          Contracts
          The Association entered into various contracts with hotels or other hospitality providers for
          purposes of hosting the Association’s various conferences. The contracts include terms for the
          minimum room nights to be reserved by conference attendees and the minimum number of
          meals served. The Association is generally liable for compensating the hospitality providers if
          minimum room and meal quotas are not met. At December, 31, 2009, the Association’s
          commitments to hospitality providers totaled approximately $5.86 million.


NOTE 12   RELATED PARTIES

          Water Research Foundation
          The Association is affiliated with the Water Research Foundation (the Foundation). The
          Association appoints nine of the twenty-three members on the Foundation’s Board of Trustees.
          One member of the Foundation’s Board of Trustees serves on the Association’s Board of
          Directors.

          The Foundation is charged by the Association for its share of costs associated with occupancy
          of the Association’s building and other operating expenses as defined in the provisions of its
          lease agreement. Rental income from the Foundation for the years ended December 31, 2009
          and 2008 totaled $240,000 and $451,800, respectively. The Foundation’s share of operating
          expenses for the years ended December 31, 2009 and 2008 totaled $84,953 and $128,255,
          respectively. The current rental agreement is through December 31, 2011. The Foundation
          will have three separate options to renew this lease for a period of three years each. Minimum
          annual rental payments for 2010 are $247,500.

          The Association bills and collects membership dues on behalf of the Foundation. The
          Association remits amounts collected to the Foundation on a monthly basis. In prior years the
          Association published certain Foundation research reports. The Association has agreed to pay
          royalties to the Foundation for sale of certain of these published research reports at a rate of
          15%. Royalties paid to the Foundation for the years ended December 31, 2009 and 2008
          totaled $781 and $885, respectively. The Association also made contributions to the
          Foundation in the amounts of $72,147 and $83,391 during the years ended December 31,
          2009 and 2008, respectively.
                                                  (20)
                           AMERICAN WATER WORKS ASSOCIATION
                             NOTES TO FINANCIAL STATEMENTS
                               DECEMBER 31, 2009 AND 2008



NOTE 12   RELATED PARTIES (CONTINUED)

          The Association and the Foundation participate in jointly funded projects for a combined value
          of approximately $951,093 with a remaining commitment of approximately $107,517. The
          Association is leading the effort on two of the eight projects, and the Foundation is leading the
          effort for six of the projects.

          At December 31, 2009 and 2008, the Association was indebted to the Foundation for $4,056
          and $24,018, respectively.

          Water For People
          The Association is affiliated with Water For People (WFP). One member of the Association’s
          Board of Directors serves along with twenty-nine other members on WFP’s Board of Directors.
          One member of the WFP’s Board of Directors serves on the Association’s Board of Directors.

          The Association provided WFP with in-kind contributions totaling $132,115 and $287,860 for
          the years ended December 31, 2009 and 2008, respectively. These in-kind contributions
          consisted of donated services (e.g., staff, pension audit and actuarial costs, business
          insurance, etc.). In addition, the Association provided WFP with cash contributions of $99,722
          and $114,505 for the years ended December 31, 2009 and 2008, respectively.

          A rental agreement with Water For People is effective as of January 1, 2009. This rental
          agreement is effective through December 31, 2013. Water For People will have two separate
          options to renew this lease for a period of five years each. Rental income from Water For
          People for the year ended December 31, 2009 totaled $103,939. Minimum annual rental
          payments for 2010 are $115,884.

          At December 31, 2009 and 2008, the Association was indebted to Water For People for $4,695
          and $10,322 respectively.

          AWWA California Nevada Section
          The Association is affiliated with the AWWA California Nevada Section (the Section). Two
          members of the Section’s Board of Directors serve on the Association’s Board of Directors.

          On January 27, 2008, the Association’s Board of Directors approved a Motion authorizing the
          AWWA Executive Director to co-sign a lease in the amount of approximately $210,000 with Cal
          First Leasing for the purchase of hardware and software by the Section. The term of the lease
          is 60 months. The Section is responsible for maintaining insurance on the equipment and for
          the monthly payments. In the event that the Section misses a payment and the Association is
          required to assume responsibility for the payment(s), then the Association will deduct the
          amount of the missed payment(s) and late fees from the monthly remittance to the Section of
          section assessments and multi-section dues and the Section’s annual allotment (if necessary).




                                                  (21)
                           Independent Accountants’ Report on
                               Supplementary Information



Board of Directors
American Water Works Association
Denver, Colorado


Our audits were conducted for the purpose of forming an opinion on the basic financial statements as
of and for the year ended December 31, 2009, taken as a whole. The accompanying supplementary
information for the year ended December 31, 2009, is presented for purposes of additional analysis
and is not a required part of the basic financial statements. Such information for the year ended
December 31, 2009, has been subjected to the procedures applied in the audit of the basic financial
statements as of and for the year ended December 31, 2009, and, in our opinion, is fairly stated, in all
material respects, in relation to those basic financial statements taken as a whole. The supplementary
information for the year ended December 31, 2008, was audited by other accountants whose report
dated April 8, 2009, expressed an unqualified opinion on such information in relation to the basic
financial statements as of and for the year ended December 31, 2008, taken as a whole.

                                                          \s\ BKD, LLP

April 21, 2010




                                                  (22)
                                                                    AMERICAN WATER WORKS ASSOCIATION
                                                                     SCHEDULE OF FUNCTIONAL EXPENSES
                                                                       YEAR ENDED DECEMBER 31, 2009



                                                                                                                   Program Services
                                                                                                                                           Member                                 Publications          Seminars
                                                                           Government                                  Information         Section            Public                  and           Teleconferences
                                    Committees         Conferences           Affairs           Grants/Contracts         Services           Services           Affairs             Subscriptions     and Workshops


Salaries                        $       544,254    $        980,809    $        492,283        $        34,337     $        554,688    $      252,691     $      128,217      $       1,791,764     $      318,487
Benefits                                209,548             372,087              15,882                 14,013              212,916             97,020            49,390                685,374            121,067
Recruiting and Training                  14,523              32,977                     23                  360              16,370              9,160              3,234                59,193             11,161
Insurance                                16,416             102,987                     47                  433              18,639             10,443              3,638                67,658             12,884
Outside/Professional Services            51,076             173,613              42,356               101,696               207,675             28,874            65,032                250,967            178,282
Interest                                  1,838               4,315                        5                 46               2,050              1,144                  402                 7,441            1,411
Repairs/Maintenance                      40,505              93,881                2,238                   2,076             80,922             25,676              8,968               167,771             31,599
Depreciation                             67,870             162,558                    177                 1,674             77,292             43,395            15,098                280,379             52,650
Utilities/Telephone                      46,501              63,478              12,313                    8,315             30,433             18,400              6,834               113,571             24,804
Rent (Including Conf)                    65,820             545,040             162,586                 87,199               16,853             13,333              3,263               166,261             51,082
Supplies                                 19,047              49,686                    348                 3,563             17,436             10,439              3,340                80,210             16,912
Postage/Freight                           9,199              27,246                    975                  746               7,204              4,820              2,320               466,495              9,308
Allotments                                   -                  -                      -                     -                     -         1,974,097                  -                     -                 -
Promotion                                10,327             361,911                    -                     -                5,693                   -          102,350                959,832             85,391
Travel                                  261,590              65,306              14,766                 19,287                4,704             44,065              4,566                38,501             22,516
Conference/Seminar/Workshop             204,000           1,502,892                3,252                   8,804                230             32,596                  -                     -            136,906
Cost of Goods Sold                           -                  -                      -                     -                     -                  -                 -             1,839,202                 -
Printing and Related Expense              7,581                 -                  4,597                     22                 380              1,540                  175             827,990             16,031
Complimentary Publications                   -               50,955                    -                     -                     -                  -                 -                78,164              2,256
Contributions                                -                  -                      -                     -                     -                  -                 -                     -                 -
Contingencies and Reserves                   -                  -                      -                     -                     -                  -                 -                     -                 -
Administrative Services                  30,548              71,108                     80                  724              34,724             18,453              6,432               160,798             23,110
Scholarships                                 -                  -                      -                     -                     -                  -                 -                     -                 -
Other                                     5,301               6,514                    -                     -               77,377              3,014                  -                   1,465            1,000

           TOTAL EXPENSE        $      1,605,944   $      4,667,363    $        751,928        $      283,295      $      1,365,586    $     2,589,160    $      403,259      $       8,043,036     $     1,116,857




                                                                                                    (23)
                                                                         AMERICAN WATER WORKS ASSOCIATION
                                                                          SCHEDULE OF FUNCTIONAL EXPENSES
                                                                            YEAR ENDED DECEMBER 31, 2009



                                                                             Program Services                                                             Supporting Services
                                Standards and            Technical            Water Industry         Wolman                                                                           Total
                                     Materials       and Educational             Technical            and              Total            General                                     Supporting
                                    Development          Programs                Action Fund         Larson           Program           Admin                  Marketing            Services            Total


Salaries                        $        550,884     $       100,739         $        192,668    $            -   $    5,941,821    $    2,922,704         $       537,737      $      3,460,441    $    9,402,262
Benefits                                 218,107              38,534                   55,205                 -        2,089,143         1,138,679                 205,708             1,344,387         3,433,530
Recruiting and Training                   14,522               3,257                         -                -          164,780                  43                18,088                18,131          182,911
Insurance                                 16,514               3,783                    1,161                 -          254,603                  (51)              20,846               20,795           275,398
Outside/Professional Services             52,179               9,780                  326,572                 -        1,488,102                  211               60,266               60,477          1,548,579
Interest                                   1,834                 413                         -                -           20,899                      6              2,302                 2,308           23,207
Repairs/Maintenance                       40,850               9,088                         -                -          503,574                  142               51,231               51,373           554,947
Depreciation                              68,917              15,295                         -                -          785,305                  231               86,426               86,657           871,962
Utilities/Telephone                       30,367               8,253                    5,974                 -          369,243                  88                35,116               35,204           404,447
Rent (Including Conf)                     30,618               3,443                    7,817                 -        1,153,315             4,255                  21,132                25,387         1,178,702
Supplies                                  16,779              15,537                    3,538                 -          236,835           (39,291)                 20,184               (19,107)         217,728
Postage/Freight                            7,211               3,669                      119                 -          539,312                      5              7,433                 7,438          546,750
Allotments                                       -                   -                       -                -        1,974,097                  -                    -                       -         1,974,097
Promotion                                        -                       3                   -                -        1,525,507                  691              472,802              473,493          1,999,000
Travel                                    18,083              22,549                  208,024                 -          723,957           238,105                  14,505              252,610           976,567
Conference/Seminar/Workshop                2,620              10,224                   47,542                 -        1,949,066             2,711                   6,660                 9,371         1,958,437
Cost of Goods Sold                               -                   -                       -                -        1,839,202                  -                    -                       -         1,839,202
Printing and Related Expense               4,404               1,847                      429                 -          864,996           (82,513)                 97,201               14,688           879,684
Complimentary Publications                       -                   -                       -                -          131,375                  -                101,347              101,347           232,722
Contributions                                    -                   -                       -                -                 -          171,869                     -                171,869           171,869
Contingencies and Reserves                       -                   -                       -                -                 -           17,890                     -                  17,890           17,890
Administrative Services                   30,110               6,674                      150                 -          382,911           351,983                  37,416              389,399           772,310
Scholarships                                     -                   -                       -          36,767            36,767                  -                    -                       -           36,767
Other                                      1,041              84,309                         -                -          180,021           193,201                   6,392              199,593           379,614

           TOTAL EXPENSE        $      1,105,040     $       337,397         $        849,199    $      36,767    $   23,154,831    $    4,920,959         $     1,802,792      $      6,723,751    $   29,878,582




                                                                                                     (24)
                                                                    AMERICAN WATER WORKS ASSOCIATION
                                                                     SCHEDULE OF FUNCTIONAL EXPENSES
                                                                       YEAR ENDED DECEMBER 31, 2008



                                                                                                                   Program Services
                                                                                                                                           Member                                 Publications          Seminars
                                                                           Government                                  Information         Section            Public                  and           Teleconferences
                                    Committees         Conferences           Affairs           Grants/Contracts         Services           Services           Affairs             Subscriptions     and Workshops


Salaries                        $       778,855    $        992,658    $        552,972        $        24,131     $        596,143    $      426,196     $      173,907      $       1,888,426     $      282,784
Benefits                                271,701             343,244              70,995                 10,942              214,510           150,406             61,726                665,190             98,941
Recruiting and Training                  34,038              38,169                    232                   64              26,011             18,075              7,387                79,191             12,651
Insurance                                29,882              79,569                    20                    81              23,468             16,639              6,852                74,194             11,114
Outside/Professional Services           105,224             179,590              55,098                 68,975              191,915             58,046           214,452                348,610            126,585
Interest                                  7,575               9,643                        7                 22               5,980              4,263              1,747                18,923              2,859
Repairs/Maintenance                      69,938              88,839                3,377                    190              56,443             39,692            16,372                178,774             26,048
Depreciation                             92,616             119,558                    66                   230              73,034             51,783            21,383                229,917             34,292
Utilities/Telephone                      60,589              57,791              17,597                     529              35,240             25,130            10,410                126,295             20,364
Rent (Including Conf)                   100,689             500,171             239,753                    2,410             20,716             23,994              5,868               161,513             41,980
Supplies                                 39,710              44,590                3,845                   2,976             19,735             15,741              5,528                81,013             19,904
Postage/Freight                          30,422              36,965                3,503                   1,717             10,452              9,479              4,754               532,551              9,996
Allotments                                   -                  -                      -                     -                     -         1,932,564                  -                     -                 -
Promotion                                23,085             417,722                    -                     -               11,217                   -          170,203              1,592,429            135,489
Travel                                  472,931             108,726              18,203                 43,242               18,635             45,873            12,929                 39,101             40,066
Conference/Seminar/Workshop             304,313           1,556,986                4,636                   1,128                389             40,740                  -                     -            139,736
Cost of Goods Sold                           -                  -                      -                     -                     -                  -                 -             1,554,842                 -
Printing and Related Expense             15,596                 -                  5,330                   5,647                556              8,079                  687           1,064,382             20,191
Complimentary Publications                   -               68,341                    -                     -                     -                  -                 -                93,964              2,347
Contributions                                -                  -                      -                     -                     -                  -                 -                     -                 -
Contingencies and Reserves                   -                  -                      -                     -                     -                  -                 -                     -                 -
Administrative Services                  53,708              69,995                    72                   111              42,965             29,856            12,466                132,651             20,368
Scholarships                                 -                  -                      -                     -                     -                  -                 -                     -                 -
Other                                    28,524               3,281                    -               (11,574)             141,724             23,706                  -                   1,585           16,016

           TOTAL EXPENSE        $      2,519,396   $      4,715,838    $        975,706        $      150,821      $      1,489,133    $     2,920,262    $      726,671      $       8,863,551     $     1,061,731




                                                                                                    (25)
                                                                         AMERICAN WATER WORKS ASSOCIATION
                                                                          SCHEDULE OF FUNCTIONAL EXPENSES
                                                                            YEAR ENDED DECEMBER 31, 2008



                                                                           Program Services                                                           Supporting Services
                                Standards and            Technical          Water Industry         Wolman                                                                         Total
                                     Materials       and Educational           Technical            and              Total            General                                   Supporting
                                    Development          Programs              Action Fund         Larson           Program           Admin                Marketing             Services           Total


Salaries                        $        527,570     $       125,750       $        204,748    $            -   $    6,574,140    $    3,335,305       $       324,492      $      3,659,797    $   10,233,937
Benefits                                 199,262              43,748                 56,560                 -        2,187,225         1,024,323               117,721             1,142,044         3,329,269
Recruiting and Training                   20,694               5,890                       -                -          242,402                  301             13,439                13,740          256,142
Insurance                                 18,196               4,970                  1,232                 -          266,217                  351             12,788                13,139          279,356
Outside/Professional Services            107,527              39,813                860,517                 -        2,356,352             1,028                45,099                46,127         2,402,479
Interest                                   4,589               1,281                       -                -           56,889                  76               3,217                 3,293           60,182
Repairs/Maintenance                       43,518              11,710                       -                -          534,901                  770             30,357                31,127          566,028
Depreciation                              56,563              15,482                       -                -          694,924             1,034                39,320                40,354          735,278
Utilities/Telephone                       28,835              12,666                  6,427                 -          401,873                  528             19,115                19,643          421,516
Rent (Including Conf)                     16,815               4,883                 18,084                 -        1,136,876             4,163                14,702                18,865         1,155,741
Supplies                                  18,853              37,435                  3,063                 -          292,393           (44,769)               10,615               (34,154)         258,239
Postage/Freight                            9,844               4,405                  1,088                 -          655,176                  151              5,343                 5,494          660,670
Allotments                                       -                   -                     -                -        1,932,564                  -                  -                        -        1,932,564
Promotion                                        -             2,950                       -                -        2,353,095            45,381               539,565              584,946          2,938,041
Travel                                    25,562              34,147                392,924                 -        1,252,339           388,595                23,323              411,918          1,664,257
Conference/Seminar/Workshop                5,619               8,181                 60,317                 -        2,122,045             6,516                11,577                18,093         2,140,138
Cost of Goods Sold                               -                   -                     -                -        1,554,842                  -                  -                        -        1,554,842
Printing and Related Expense               4,620               3,095                  4,215                 -        1,132,398          (105,413)               61,027               (44,386)        1,088,012
Complimentary Publications                       -                   -                     -                -          164,652                  -              115,294              115,294           279,946
Contributions                                    -                   -                     -                -                 -          198,700                   -                198,700           198,700
Contingencies and Reserves                       -                   -                     -                -                 -           41,070                   -                  41,070           41,070
Administrative Services                   32,217               9,109                    225                 -          403,743           331,497                22,184              353,681           757,424
Scholarships                                     -                   -                     -          47,617            47,617                  -                  -                        -          47,617
Other                                      1,189              79,708                       -                -          284,159           290,240                   -                290,240           574,399

           TOTAL EXPENSE        $      1,121,473     $       445,223       $      1,609,400    $      47,617    $   26,646,822    $    5,519,847       $     1,409,178      $      6,929,025    $   33,575,847




                                                                                                    (26)

								
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