MIX Annual Report FY 2010 - Microfinance Information Exchange

IFADIFAD was created 30 years ago to tackle rural poverty,a key consequence of the droughts and famines of theearly 1970s. Since 1978, IFAD has invested more thanUS$10 billion in low-interest loans and grants that havehelped over 400 million very poor rural women and menincrease their incomes and provide for their families. IFADis an international financial institution and a specializedUnited Nations agency. It is a global partnership ofOECD, OPEC and other developing countries. Today, IFADsupports more than 200 programs and projects in 85developing countries and one territory.Michael & Susan Dell FoundationThe Michael & Susan Dell Foundation (www.msdf.org)is dedicated to improving the lives of children living inurban poverty around the world. With offices in Austin,TX, Cape Town, South Africa and New Delhi, India,the Dell family foundation funds programs that fosterhigh-quality public education and childhood health,and improve the economic stability of families livingin poverty. The foundation has committed more than$650 million to global children’s issues and communityinitiatives to date.Citi FoundationThe Citi Foundation is committed to enhancingeconomic opportunities for individuals and families,particularly those in need, so that they can improve theirstandard of living. Globally, the Citi Foundation focusesits strategic giving on microfinance, small and growingbusinesses and sustainable enterprises, education,financial education and asset building, the environment,and community development.Ford FoundationThe Ford Foundation is an independent, nonprofit grantmakingorganization. For more than half a century ithas worked with courageous people on the frontlinesof social change worldwide, guided by its mission tostrengthen democratic values, reduce poverty andinjustice, promote international cooperation, andadvance human achievement. With headquarters in NewYork, the foundation has offices in Latin America, Africa,the Middle East, and Asia.Deutsche Bank Americas FoundationThe Foundation’s work focuses on communitydevelopment projects, education programs, arts, andinitiatives for fostering intercultural understanding.The Foundation is also the center of competence forDeutsche Bank’s global microfinance programs. Theactivities of the Americas Foundation are financed solelyfrom Bank donations.

Letter from theChairman of the BoardDear Colleagues,In a year of rapid market changes and increased scrutiny, the importance of the Microfinance Information Exchange (MIX)as a global and reliable source of data on microfinance performance has been reinforced. MIX scaled up its informationservices, expanded its social performance analysis and reporting, and increased its reach in the microfinance community.MIX significantly improved its coverage of the microfinance market. At the end of the 2010 fiscal year (June 30, 2010),the MIX Market database listed more than 1,800 MFIs serving more than 92.4 million borrowers and 78.5 million savers in110 countries. MIX also increased the freshness of its data by providing interim financial reports for approximately200 leading MFIs. Finally, MIX deepened its analytical capabilities and published two dozen reports focused on country andregional research & analysis in the 2010 fiscal year.This year was also an important one for the implementation of Social Performance reporting and analysis at MIX, conductedin close coordination with the Social Performance Taskforce. More than 350 MFIs in more than 70 countries reported ontheir social performance using standardized indicators. This unique data set has already shed new light on MFI socialperformance management practices.Even as our data collection and analysis expanded into new terrain, MIX dedicated significant resources to enhancing theuser experience on our websites by offering our information in Spanish, French, and Russian. In addition, MIX extended itsdistribution of information on the microfinance industry through the use of social media (e.g., Twitter) and the launch of anew monthly newsletter, MIX Dispatch, designed to provide frequent insights and updates about the evolving MIX dataset.Looking ahead, MIX will expand its quarterly data collection efforts and offer current market intelligence through regularlyupdated country briefs. In addition, MIX will increase its social performance data collection and integrate social performanceinformation on the MIX Market website. Furthermore, MIX will launch a new funding structure database to present a uniqueview of the global MFI funding landscape. Finally, MIX will provide tools to improve access to data and training on analyticsthrough a new market assessment portal.PAge 04

In closing, I would like to thank all of MIX global partners, CGAP, Bill & Melinda Gates Foundation, Citi Foundation, DeutscheBank, IFAD, and Omidyar Network as well as our project sponsors and research partner organizations; thanks to theircontinued commitment and support, MIX has made a significant impact on global microfinance and its infrastructure forinformation flows. I am also grateful to the MIX staff for their immeasurable dedication to the mission of MIX as well as theirtalent and hard work to strengthen the microfinance sector.With my warmest regards,Xavier ReilleChairman of the Board

MIX’s mission is to support the growth ofthe microfinance industry by providing aworld-class public information platformPaGe 06

About MIxThe Microfinance Information Exchange (MIX) is theleading business information provider dedicated tostrengthening the microfinance sector. Founded byCGAP, MIX was incorporated in 2002 as an independentorganization designed to improve transparency amongmicrofinance institutions (MFIs), provide a means ofstandardization, and help move the industry towardsmainstream financial markets.its own challenges and needs regarding the provisionof financial services to the poor. Standardization helpsMFIs understand the parameters under which theyare expected to operate, with the knowledge that byadhering to agreed upon guidelines, they are helpingstrengthen the industry. MIX is an active participant withother key organizations in providing a framework forstandardization for a global industry that is evolving.MIX’s core work centers on transparency. We collectand validate financial, operational, product, client,and social performance data from MFIs in all regionsof the developing world, standardizing the data forcomparability. We do this through our online informationexchange MIX Market (www.mixmarket.org) and througha variety of publications including the MicroBankingBulletin and reports and analysis on regional and countrylevel microfinance sectors. We also supply basic businessinformation on all actors in the industry- MFIs, fundersand investors, networks and service providers.By providing this critical information on a centralizedplatform, we offer microfinance practitioners, funders,policy maker, academia and others a way to gain a betterunderstanding of the operations of MFIs. The challengesthey may face, and patterns in MFI performance withinand across regions and markets. The MFI data, benchmarksand trend lines that MIX provides give users a view into anindustry in transition, growing towards maturity in somemarkets, while in others struggling for sustainability.Finally, through our data collection and transparencyefforts, we work to provide standardization to anindustry that is highly fragmented by its very nature.Microfinance institutions are active in virtually everycountry throughout the developing world. Each countryhas its own policies and regulations and each region hasHeadquartered in Washington, DC and regional officesin Peru, Morocco, and India, MIX is constantly strivingto provide fresh and relevant data to the microfinanceindustry around the world.Board of DirectorsXavier ReilleChairman of the BoardSenior Microfinance Specialist, CGAPRobert AnnibaleManaging Director, Citi Microfinance GroupJane EddyManaging Director, Standard & Poor’sMartin HoltmannHead of Microfinance, International Finance CorporationAsad MahmoodManaging Director, Deutsche BankStephanie Cohn RuppPrincipal, Omidyar NetworkPiyush TantiaSenior Researcher, Ideas 42 - Harvard UniversityObservers:Linda BirbaraSenior Vice President, Thomson ReutersHal SternVice President, Juniper Networks

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HighlightsFrom fiscal Year 2010During the 2010 fiscal year, MIX continued to focus on delivering the financial and social performance datanecessary for understanding the operations of microfinance providers and the growth of the industry.EXPANDED DATA COVERAGEMIX expanded its data capabilities which allowed usto provide our users with data of the highest quality.To accomplish this, MIX extended its data collectionto include both interim and yearly data from MFIsthroughout the developing world, covering financial,operational, and social performance information. Theinterim data collected includes some 200 MFIs and isavailable alongside the yearly financial data on individualMFI profiles. MIX also implemented new automatedmonitoring tools to make our data collection processmore efficient through additional quality checks, realtimeupdates, and constant communication with MFIs.The added collection technology also enabled MIX toimprove the freshness of the data presented on MIXMarket.By June 30, 2010, MIX Market had more than 1800 MFIs,representing 92.4 million borrowers and 78.5 millionsavers from throughout the developing world.180160140120100806040200MFI Reporting Interim Data on MIX Market49Eastern Europeand Central Asia19Eastern Asia andPacific154Latin America andthe Caribbean10South Asia16Middle East andNorth AfricaSOCIAL PERFORMANCEUsing the social performance data we have collectedfrom MFIs around the world, MIX helped to provide themicrofinance community with a better understandingof the contribution of MFIs to their surroundingcommunities. This data collection season, MIX expandedour involvement in the social performance communitythrough increasing our leadership capacity in the SocialPerformance Task Force, contributing to multiple socialperformance publications, and developing the newSocial Performance Indicators Blog.In 2010, MIX supported CGAP’s Social PerformanceReporting Awards recognizing transparency in socialperformance reporting. This year, 19 MFIs received GoldAwards and 32 received the Silver. Additionally, fivenetworks received awards for the strong social reportingof their affiliates.growth in borrowers and glpTECHNOLOGYThrough several significant technological advancements,MIX has evolved into the technological leader in themicrofinance sector. During FY 2010 we launched the newMIX Market technology platform, which incorporated anew MFI trend benchmarking feature, displayed countryand regional analysis, connected MIX with social mediaplatforms, and allowed us to provide users with MIXinformation in multiple languages. Technology alsocontributed to the automation of the data collectionprocess and helped MIX develop new products andservices, such as interim data. Additionally, MIXadopted open source software and implemented cloudcomputing technology to reduce capital expenditures.PAge 10

The vast majority of MFIs reporting to MIX providesupporting documents, such as audited financialstatements and ratings reports.Market InsightMIX produced the following analysis to provide themicrofinance industry with a context to view theperformance data that MIX collects from MFIs:MicroBanking Bulletin (MBB) Issue No. 19- TheMicroBanking Bulletin (MBB) featured articles on criticalmicrofinance industry topics, written by microfinancepractitioners and academics, and also provides MFIperformance benchmarks and trend lines, along with acomprehensive analysis of the data.Data Briefs- written by MIX Lead Researcher, AdrianGonzalez, MIX Market data is used to answer some of themicrofinance industry’s most interesting topics.••Consumption, Commercial or Mortgage Loans: Does itMatter for MFIs in Latin America?••Analyzing Microcredit Interest Rates: A Review of theMethodology Proposed by Mohammed YunusIs••Is Microfinance Growing Too Fast?••Microfinance Funders Profiles - A Short Guide for Youngand Small Institutions Still Looking for a MatchCountry and Regional Reports- MIX produces analysison each region of the developing world based on the MFIperformance data we have collected. These 24 countryand regional reports help readers better understand MFIperformance in view of many factors including currentregulations, regional economic issues, and legislations.Global 100- an annual report to help readers understandthe many components that comprise a successful MFI.This report is one way of viewing MFI performanceand attempts to point out the numerous factors thatcontribute to an MFI’s success, beyond size or profitability.LAC 100- a report that ranks the top performing MFIsLatin America and the Caribbean. The measure ofperformance used in the ranking is made up of three“pillars”: outreach, efficiency, and transparency.

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AssessingMIX’s ImpactIn Spring 2010, MIX once again hired a specialty firm toconduct a survey to measure user satisfaction with MIXproducts/services and learn how our data and analysisis used. This year, we translated our survey into Frenchand Spanish to reach the broadest cross section of ouraudience. With the responses from the user feedbacksurvey, we not only evaluated our performance, butalso learned how we can best serve the microfinanceindustry going forward. Survey highlights include:••Year-over-year, overall user satisfaction increased andalmost 9 out of 10 users are satisfied or very satisfiedwith MIX products & services••More than half of MIX users make operational and/orfinancial decisions for their organizations based onMIX data••The vast majority of users turn to MIX for benchmarkingand comparative analysis purposes and seek countryanalysisOVERALL USER SATISFACTIONI Don't Know3%Dissatisfied2%Neither Satisfiednor Dissatisfied8%Satisfied87%USE Use MIX mix TO to MAKE make BUSINESS business decisions DECISIONSRECOMmENDED MIXI Don't Know 5%Would NotRecommend MIXto a Colleague8%Don't Know3%No 26%Yes 58%Not Applicable 11%Would orHave Already Recommendedto a Colleague96%

IN-DEPTH DATA ANALYSISUsing the data collected in FY 2010, MIX analystsconducted in-depth analysis of the state of themicrofinance industry in specific countries and regionsas well as addressed leading industry topics. This analysiswas published in 24 country and regional reports.Additionally, MIX’s lead researcher, Adrian Gonzalez,addressed some of the industry’s most burning questionsin MIX’s Data Briefs:••Consumption, Commercial or Mortgage Loans: Doesit Matter for MFIs in Latin America? MIX Data BriefNo. 3, September 2009. With data on the diverse LatinAmerica microfinance market, this paper exploresthe specific combinations of credit types offered byMFIs (commercial, consumption, microenterprise andmortgages) and the role they play in determining anMFI’s performance.••Analyzing Microcredit Interest Rates: A Review of theMethodology Proposed by Mohammed Yunus: MIXData Brief No. 4, March 2010. This data brief examinesthe effect that interest rates charged on microcredithas on the performance of microfinance institutions.••Is Microfinance Growing Too Fast? MIX Data BriefNo. 5, June 2010. This paper quantifies the points atwhich the level of growth appears to overstretch MFIresources and at which portfolio quality begins todecline for any higher growth level that is essentialin understanding the trade-offs between growth andportfolio quality.••Microfinance Funders Profiles - A Short Guide forYoung and Small Institutions Still Looking for aMatch: MIX Data Brief No. 6, June 2010. This paperfocuses on those MFIs that presumably have moredifficulty getting funding; they can generally bedescribed as younger, smaller, less profitable, andhaving lower portfolio quality than the typicalinstitution. By concentrating on this group of MFIs,this report seeks to answer questions like: Who lendsto young MFIs? What types of lenders fund institutionswith higher credit risk? Where are smaller MFIssourcing their on-lending funds?FUTURE PLANS FOR MIX DATA COLLECTIONIn July 2010, MIX will launch a new feature on MIX Marketthat will allow users to view the funding landscape of morethan 850 individual MFIs from more than 85 countries.The funding structure database will feature informationabout the types of lenders, amounts outstanding,and costs and terms of loans. MIX will also expand itscollection of interim data to include a larger number ofmicrofinance institutions and expand its data coverageof various markets around the world. In the future, MIXMarket will feature country briefings that will provideusers with succinct analysis and updates on microfinancein the biggest and most sought after markets aroundthe globe. Briefings appear alongside our quantitativedata and draw on the breadth of MIX’s up-to-date MFIdata and our sector expertise. Through these briefings,readers will get a snapshot of the microfinance market,supply and demand, funding for microfinance, andMFI performance. Finally, MIX will update its diamondranking system for MFIs to reflect additional informationsubmitted such as social performance and fundingstructure information.

Program Manager gave a presentation on the socialperformance indicators at a number of internationalconferences such as the IADB Conference in Peru,Investors conference in Amsterdam; MFC Conference inAstana, European Microfinance Conference in London,SPTF Annual Meeting in Bern, MABS/Rural Banks AnnualConference in Manila and Redcamif Social PerformanceConference in Managua. During the reporting period,MIX was also engaged to contribute input to a series ofpublications related to social performance, such as: the2010 Report of Blue Orchard in Social Performance; the2010 Report of Sanabel; the 2010 Latin American Leagueof the IDB; and the Cuaderno Monografico of Nantik LumFoundation/European Microfinance Network.SOCIAL PERFORMANCE INDICATORS BLOGDuring this period, MIX extended its outreach in thesocial performance community by establishing aplatform of social performance information through thecreation of the Social Performance Indicators Blog. Theblog was used to encourage the discussion of currentissues in social performance reporting, keep the industryup-to-date with MIX’s social performance innovations,and answer specific visitor questions.THE FUTURE OF SOCIAL PERFORMANCELooking ahead, MIX will expand our data collectionand analysis efforts to provide the users with a betterand deeper understanding of the state of social performancemanagement in the industry. Using the socialperformance data collected from MFIs, MIX will publisha report in July 2010, featuring an in-depth regressionanalysis of the tradeoffs and synergies between financialand social performance information. MIX will also becontributing to a publication with IMP-ACT Consortiumaimed at analyzing the status of practice in both socialperformance reporting and management, to be publishedin early 2011. Moreover, we will integrate socialperformance data with MFI financial information on MIXMarket to provide users with a more encompassing viewof MFIs’ performance. Going forward, each of our countryand regional analysis reports will provide an integratedand more comprehensive view of the microfinance landscapeby including social performance analysis. Finally,in the coming months, MIX will lead the TransparencyWorking Group of the Social Performance Task Force torefine the set of indicators currently used to evaluate socialperformance.

TechnologyAt the Forefront of the Microfinance IndustryMIX technology reached new heights in 2010 as itextended itself beyond the scope of MIX services tobecome a technology leader in the microfinance industry.These new technological developments have provideda benchmark for other microfinance organizations,propelling MIX to the forefront of technological servicesin the sector.the MIX Market database were made possible thanksto an ongoing partnership with The MasterCardFoundation.The 2010 fiscal year saw much technologicaladvancement at MIX including: the launch of the new MIXMarket technology platform, development of new MIXproducts and services, implementation of improved datastandards, re-engineering of data collection processes,and the adoption of open source and cloud computingtechnologies to continue to deliver innovative productsand services.THE NEW AND IMPROVED MIX MARKETThe MIX Market platform underwent significantchanges this year in an effort to provide its users withbetter tools to assess the current andhistorical state of the microfinanceindustry. To accomplish this, MIXimplemented a new, user-friendlywebsite platform which features a larger amountof data on MFI profile pages as well as country andregional sections of the site. The new data offeringsinclude: interim data, trend benchmarking, andmacroeconomic information. The upgraded platformalso extended the outreach of the MIX websites bymaking its content available in multiple languages:English, Spanish, French, and Russian. Furthermore, theenhanced platform enables the seamless connectionto social media platforms (i.e. Twitter, Facebook, etc.) tosupport our user outreach efforts and strengthen ourindustry impact. These considerable advancements tolatest PRODUCTS AND SERVICESAdvancements in MIX technology allowed us to takeour product and service offerings to a new level.For the first time, MIX Market features interim MFIdata collected from approximated 200 microfinanceinstitutions internationally, providing our users withfresher information about the microfinance industry.Additionally, MIX Market furthered its mission ofPAge 18

transparency by creating the foundation of a tool thatwill allow users to access MFI funding structure data.to integrate microfinance institutions into the impact investinguniverse, but allows users worldwide to accessricher data more easily and more frequently than everbefore.USING TECHNOLOGY TO ENHANCEBUSINESS PROCESSESTo enhance its core business practices, MIX turned tonew software programs with the goal of increasing theefficiency of our data collection process. In addition, MIXAnalysts implemented new work flow notifications togenerate up-to-date status information about the progressof MFI data collection. The MIX analysts also extended theiruse of SalesForce to track contacts as well as identify areasfor improvement in the data collection cycle. Finally, theMIX technology team implemented metrics to measureend-to-end business processes as a basis for improvement.employing global DATA STANDARDSXBRL — eXtensible Business Reporting Language — isa language for modeling and exchanging financial andnon-financial informationfor business. MIX employedXBRL as a way to structuredata so that it can be easily understood and exchangedacross platforms. In early 2010, we launched a projectwith the Impact Reporting and Investment Standards(IRIS) project of the Global Impact Investing Network(GIIN). Through the support of the Rockefeller Foundation,MIX and GIIIN are working together to build a datafeed that will enable IRIS, and the public at large, to subscribeto updates to MIX Market profiles and to directlydownload raw data in XBRL. This initiative not only helpsRIGHT-SIZING TECHNOLOGY COSTSThis year, MIX continued its effort to be the industry’sleader in technology by utilizing advanced open sourceand cloud computing technology to meet our endusers’expectations in an effective and efficient manner.The use of cloud based data integration as a means forinformation storage successfully allowed MIX to limitcapital expenditures on software licensing as well asreduce the time required to deliver its products andservices to the market. The adoption of open sourcetechnology (Drupal, Apache, Linux, mySQL) as thefoundation for the MIX Market platform allows MIX todeliver the innovative products and services our usersneed while keeping underlying technology infrastructurecosts within sustainable levels.

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LOOKING TO THE FUTUREIn the coming year, MIX will continue to dedicate itselfto being the technological leader in the microfinanceindustry; we willfurther our mission tothe transparency offinancial and social performance of MFI information withthe extension of our technology platform to allow for aseamless exchange of data from multiple data suppliersand multiple data consumers. MIX will also implementa new publications platform on www.themix.org, whichwill offer all MIX publications in HTML format to enhancethe user experience and allow for more frequent featurearticle posts. The updated platform will also be thehome to the newest MIX publication, MIX MicrofinanceWorld. Furthermore, MIX plans to use technologystandards to streamline information flows even furtherin 2011 and develop a new, integrated resource formarket assessment that draws on data from MIX andother sources to create regional and/or country-levelresource centers with aggregate data and improvedaccess to market information. Made possible by thegenerous support of The McGraw-Hill Companies, MIXwill offer a series of online training sessions, designedto help users navigate MIX Market, access data ascompletely and efficiently as possible, and learn howMIX can better serve their business needs. In July 2010,MIX will launch a tool to allow users to view MFI fundinglandscape information. Finally, we plan to integrate allsocial performance information with the financial dataon individual MFI profiles, making it easier than ever tomonitor the financial and social performance of MFIs.

WHAT’S NEXTLOOKING AHEAD, WHAT TO EXPECT IN FY 2011In FY 2011, MIX is going to further enhance thecoverage and impact of our information. Our effortscombine a focus on improved freshness of data, morecomprehensive view of MFI performance and funding,and new tools and features to help users unlock the fullvalue of our detailed data in the broader market context.IMPROVED DATA FRESHNESSBuilding on our technology investments in the past twoyears, MIX has been able to leverage the flexibility androbustness of its XBRL-based platform to streamline howdata flows from MFIs to MIX Market, even while increasingthe quality of reporting. In FY 2011, MIX will continuethis development by expanding our reporting of interim(primarily quarterly) data in a number of markets.In addition, MIX’s technology for automated dataauditing will remove many time-consuming steps in datamanagement and allow us to focus manual data auditswhere they are most needed. The system also providesus with a useful platform for continuous improvement inthe quality and speed of processing incoming data.Matching the investments in how data is received, MIXwill enhance the ease by which our data can be accessedand used. For example, in FY 2011, we will put thefinishing touches on a new platform for data delivery.Working with the Global Impact Investing Network (GIIN)to establish a robust technology solution for deliveringMIX data “in bulk,” we will establish new solutions forrapid data access by other data partners.A MORE COMPREHENSIVE VIEW OF MFIPERFORMANCE AND FUNDINGAfter two years of data collection (covering more than 400MFIs), MIX’s Social Performance Indicators continue tomature. In FY 2011, MIX will work closely with the industryactors (through the Social Performance Taskforce) to refinethe set of indicators used to measure social performance.In addition, MIX will make technology investments tointegrate social performance data with MFIs’ financialinformation that is displayed on MIX Market.We are excited about the impact that these efforts willhave in raising the profile of MFI social performance, andhow they contribute to providing a truly integrated viewof MFIs. MIX will continue the effort to support integratedperformance assessment by exploring ways to adjust ourdisclosure diamond system to more explicitly includesocial performance reporting.In addition to the effort to improve users’ access to socialperformance data, MIX will provide the industry withunprecedented detail on MFI liability funding – crucialinformation for MFIs, funders and networks to stay up todate on institutions’ cost of capital by source, currencyand term. Drawing on detailed data on MFI individualliabilities across both domestic and international sources,MIX is able to present country aggregates that informfunding decisions of both MFIs and funders.NEW TOOLS AND FEATURESAs MIX’s dataset continues to expand in scope, wewill also sharpen our focus on improving the userexperience. To that effect, MIX will launch an enhancedplatform for delivering its market analysis. Among theseenhancements is a conversion of the MicroBankingBulletin (MBB) from a printed, semi-annual format to anonline, ongoing delivery through themix.org.In addition, MIX is planning to launch new user featureson MIX Market that will help unlock the full value of ourPAge 22

data. More advanced tools for analyzing MIX’s data willhelp users tailor their analysis of trends and patterns, anda new market assessment portal will provide users withthe information (e.g., news and macro data) required tounderstand the state of a country’s microfinance in abroader market context.Looking towards FY 2011, we are excited to see how theseenhancements in MIX technology, data and analyticaltools will allow us to continue our support of theinformation needs of a broad range of users, from webvisitors with a casual interest to the most sophisticatedanalysts.

Our DataPartnersMIX’s expanded data coverage is made possible through our data partner relationships, with whomwe continually work to increase the depth and breadth of our data to better serve the microfinancecommunity.AfricaAEMFIGHAMFINAsiaMabs MISFA Ltd CMF IntellecapMCPI MICRA PMN rmdcEastern Europe and Central AsiaAMFArMCPAge 24

Latin America and the Caribbeanfgv RADIM finrural RedCamif CopemeProDesarrollo Asofin rfr fePCMAC MICROFINAZAS PARA ELDESARROLLOMiddle EastSanabelInternationalACCION International fINCa oPPortunity MicrocreditInternational Summit Campaign

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AuditedFinancialsSTATEMENTS OF FINANCIAL POSITIONAssets 30 June 2010 30 June 2009Cash and cash equivalents $1,465,044 $1,813,116Accounts receivable 57,200 -Grants and contributions receivable 2,431,425 2,783,795Employee travel advances 1,053 1,285Prepaid expenses 7,014 13,578Equipment, net 1,052,519 1,228,533Deposits 10,879 6,390Total Assets $5,025,134 $5,846,697LIABILITIES AND NET ASSETSLiabilities:Notes payable $ - $7,223Accounts payable 20,927 51,041Accrued payroll 30,908 -Accrued vacation 58,658 40,991Deferred revenue 493,620 519,469Total Liabilities $604,113 $618,724Net Assets:Unrestricted $1,198,888 $1,106,794Temporarily restricted 3,222,133 4,121,179Total Net Assets $4,421,021 $5,227,973Total Liabilities and Net Assets $5,025,134 $5,846,697

AuditedFinancialsStatements of ActivitiesFor the year ended June 30, 2010unrestricted Temporarily Restricted totalsRevenue:Contributions $75,000 $- $75,000In-kind contributions 26,028 - 26,028Grants and contracts 351,983 $1,828,866 2,180,849Consulting income 54,758 - 54,758Sales and other income 1,817 - 1,817Investment income 1,585 - 1,585Net assets released from restrictions $2,727,912 ($2,272,912) -Total Revenue $3,239,083 $ (899,046) $2,340,037Expenses:Program services $2,577,023 $- $2,577,023Supporting services:Management and general $491,567 $- $491,567Fundraising 78,399 $- 78,399Total supporting services $569,966 $- $569,966Total Expenses $3,146,989 $- $3,146,989Change in Net Assets $92,094 $(899,046) $(806,952)Net Assets, Beginning of Year 1,106,794 4,121,179 5,227,973Net Assets, End of Year $1,198,888 $3,222,133 $4,421,021PAge 28

For the year ended June 30, 2009unrestricted temporarily Restricted totals$200,000 $- $200,0006,000 - $6,000213,618 4,351,140 4,564,75821,413 - 21,41312,681 - 12,6813,990 - 3,9901,637,109 (1,637,109) -$2,094,811 $2,714,031 $4,808,842$1,619,461 $- $1,619,461$454,925 $- $454,92515,868 $- 15,868$470,793 $- $470,793$2,090,254 $- $2,090,254$4,557 $2,714,031 $2,718,5881,102,237 1,407,148 2,509,385$1,106,794 $4,121,179 $5,227,973

AuditedFinancialsStatements of Functional ExpensesFor the year ended June 30, 2010Program Services Management fundraisingand GeneralSalaries and benefits $891,932 $267,417 $44,321Travel and subsistence 152,254 812 10,600Professional fees 719,622 75,447 22,593Printing and reproduction 38,262 795 -Postage and delivery 5,924 1,346 555Telecommunications 43,992 919 -IT Technology Infrastructure 147,553 - -Depreciation expense $471,434 - -Equipment rental and service - 12,437 -Insurance - 7,181 -Memberships, dues and subscriptions 10 - -Office supplies 2,258 15,181 -Rent 9,460 102,845 -Grant expense 64,600 - -Miscellaneous 29,722 7,187 330Totals $2,577,023 $491,567 $78,399PAge 30

For the year ended June 30, 2009total Program Services Management fundraising totaland General$1,203,670 $862,423 $177,628 $15,178 $1,055,229163,666 119,399 3,287 - 122,686817,662 478,774 74,474 - $553,24839,057 18,705 7,089 - 25,7947,825 10,712 346 - 11,05844,911 5,847 21,991 - 27,838147,553 - - - -471,434 102,254 44,749 - 147,00312,437 - 11,786 - 11,7867,181 1,716 4,703 - 6,41910 1,761 472 690 2,92317,439 3,234 15,952 - 19,186112,305 7,693 87,401 - 95,09464,600 - - - -37,239 6,943 5,047 - 11,990$3,146,989 $1,619,461 $454,925 $15,868 $2,090,254

AuditedFinancialsStatements of Cash FlowsCash Flows from Operating Activities for the year ended For the year endedJune 30, 2010 June 30, 2009Change in net assets $(806,952) 2,718,588Adjustments to reconcile change in net assets to netcash (used in) provided by operating activities:Depreciation 471,434 147,003Changes in assets and liabilities:Accounts receivable (57,200) 7,800Grants and contributions receivable 352,370 (1,620,770)Employee travel advances 232 3,483Prepaid expenses 6,564 (627)Deposits (4,489) -Accounts payable (30,114) (115,392)Accounts payroll 30,908 -Accrued vacation 17,667 13,985Deferred revenue (25,849) 283,162NET CASH (USED IN) PROVIDED BY OPERATING ACTIVITIES $(45,429) $1,437,232Cash Flows from Investing Activities:Purchase of equipment (295,420) (689,374)Cash flows from Financing ActivitiesCurtailments on debt (7,223) (13,318)Net (decrease) increase in cash and equivalents $(348,072) $734,540Cash and equivalents, beginning of year 1,813,116 1,078,576Cash and equivalents, end of year $1,465,044 $1,813,116Supplemental Information:Cash paid during the year for:Interest $315 $1,726PAge 32