This annual report provides a comparative financial status of the the American Association of State Colleges and Universities (AASCU) at fiscal year end June 30, 2005 versus fiscal year end June 30, 2004. AASCU continues to maintain its financial condition while providing programs and services desired by its members. Membership support remains strong and supportive of all activities. Membership dues provided 35 percent of AASCU's total revenue and 79 percent of its general fund revenue. General Fund expense represented 63 percent of the association's direct expenses and 93 percent of general fund expenses. Allocation of indirect cost recovery reduced this percentage to 48 percent. Salaries and benefits represented 65 percent of the total expense base, a decrease of 2 percent under last year's, reflecting position vacancies and increased health insurance costs. At the end of fiscal year 2005, the association remains in a solid financial position. The annual report also highlights areas in which the AASCU delivered advocacy, leadership and service in support of the membership, the students they serve and the missions they so ably represent.