Financial Statements

Aid for Africa

March 31, 2012

CONTENTS

Independent Auditor's Report

FINANCIAL STATEMENTS

EXHIBIT "A" - Statements of Financial Positionas of March 31, 2012 and 2011

EXHIBIT "B" - Statements of Activitiesfor the years ended March 31, 2012 and 2011

EXHIBIT "C" - Statements of Cash Flowsfor the years ended March 31, 2012 and 2011

EXHIBIT "D" - Statements of Expenses by Functional Areasfor the years ended March 31, 2012 and 2011

Notes to Financial Statements

D-S-CDAVIS , SITA & C O M P A N Y , P.A.

CERTIFIED PUBLIC ACCOUNTANTSBUSINESS CONSULTANTS

INDEPENDENT AUDITOR'S REPORT

To the Board of Directors ofAid for AfricaChevy Chase, MD

We have audited the accompanying statements of financial position of Aid for Africa (a non profitorganization) as of March 31, 2012 and 2011 and the related statements of activities, cash flows andexpenses by functional areas for the years then ended. These financial statements are the responsibilityof the management of Aid for Africa. Our responsibility is to express an opinion on these financialstatements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the UnitedStates of America. Those standards require that we plan and perform the audits to obtain reasonableassurance about whether the financial statements are free of material misstatement. An audit includesexamining, 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 bymanagement, as well as evaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects,the financial position of Aid for Africa as of March 31, 2012 and 2011, the changes in its net assets and itscash flows for the years then ended, in conformity with accounting principles generally accepted in theUnited States of America.

p. 4Certified Public Accountants

Novembers, 2012

7833 Walker Dr • Suite 520 • Greenbelt, Md 20770 • 301.220.1152 • fax 301.220.3814 • www.dsc-cpa.com

EXHIBIT "A"

AID FOR AFRICA

STATEMENTS OF FINANCIAL POSITIONMARCH 31. 2012 AND 2011

ASSETS2012 2011

Current assets:

Cash $ 638,570 $ 919,685Accounts receivable 158,437 191,203

Total current assets $ 797,007 $ 1,110,888

LIABILITIES AND NET ASSETS

Current liabilities:

Accounts payable and accrued expenses $ 725 $ 1,177

Total current liabilities 725 1,177

Net assets:

Unrestricted 305,418 424,851Temporarily restricted 490,864 684,860

Total net assets 796,282 1,109,711

Total liabilities and net assets $ 797,007 $ 1,110,888

See Accompanying Notes to Financial Statements

AID FOR AFRICA

STATEMENTS OF ACTIVITIESFOR THE YEARS ENDED MARCH 31, 2012 AND 2011

EXHIBIT "B"

TemporarilyUnrestricted Restricted

Revenue:

ContributionsManagement feeInterest incomeNet assets released due to

satisfaction of program restrictions

Total revenue

Expenses:

Program servicesManagement and generalFund raising

Total expenses

Change in net assets for the year

Net assets, beginning of year

Net assets, end of year

108,875 $57,5272,481

1,231,825

1,400,708

1,037,829

(1,231,825)

(193,996)

1,381,68182,93955,521

1,520,141

(119,433)

424,851

305,418 $

(193,996)

684,860

490,864

2012Total

1,146,70457,527

2,481

1,206,712

1,381,68182,93955,521

1,520,141

(313,429)

1,109,711

2011Total

1,653,08873,087

3,276

1,729,451

1,311,79665,56662,508

1,439,869

289,582

820,129

796,282 $ 1,109,711

See Accompanying Notes to Financial Statements

EXHIBIT "C"

AID FOR AFRICA

STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED MARCH 31. 2012 AND 2011

Cash flows from operating activities:

Change in net assets per Exhibit "B"

Adjustments to reconcile change in net assetsto net cash provided by (used in) operating activities:

(Increase) decrease in accounts receivableIncrease (decrease) in accounts payable and

accrued expenses

Net cash provided by (used in) operating activities

Net increase (decrease) in cash

Cash balance at beginning of year

Cash balance at end of year

2012

$ (313,429) $

32,766

(452)

(281,115)

(281,115)

919,685

$ 638,570 $

2011

289,582

(32,799)

(10,596)

246,187

246,187

673,498

919,685

See Accompanying Notes to Financial Statements

AID FOR AFRICA

STATEMENTS OF EXPENSES BY FUNCTIONAL AREASFOR THE YEARS ENDED MARCH 31, 2012 AND 2011

EXHIBIT "D"

ProgramServices

Managementand General Fund Raising

2012Total

2011Total

Program disbursementsSalaries and related benefitsPrinting/Publications/WebsiteAdvertising/PromotionalFundraising feesProfessional servicesConsultingSuppliesTelephoneGrants (non-member)Membership duesConferences & meetingsPostage/Shipping/DeliveryTravelInsuranceOtherEquipment rental & maintenance

Total

1,231,825104,731

14,6612,652

17,700

6,000

4,112

6,83011,98414,841

23,215750

8,1867,500

5,000

2,2001,2031,075

155

2,2779,762

16,98226,500

1,231,825113,83836,40734,47526,50023,21518,4508,1867,5006,0005,0004,1122,2001,2031,075

155

1,161,317107,18450,48835,212

19,56016,50010,02410,700

7,3295,700

12,4061,085

1652,200

$ 1,381,681 $ 82,939 $ 55,521 $ 1,520,141 $ 1,439,870

See Accompanying Notes to Financial Statements

AID FOR AFRICA

NOTES TO FINANCIAL STATEMENTSMARCH 31, 2012 and 2011

NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

a. Organization - Aid for Africa is a non-profit organization, incorporated in Maryland in2003. Previously the organization was known as Aid to Africa Federation, Inc. however its namewas changed in January 2007. Aid for Africa acts as a consortium of non-profit organizations thatprovide assistance to people who live in Africa. This assistance to Africa is encompassed in theorganization's programs which include providing informal education programs to members of thepublic about the problems of Africa, providing a forum for the members to collaborate and exchangeinformation and the soliciting of funds in support of its members' programs.

b. Basis of accounting - The accompanying financial statements are presented on theaccrual basis of accounting. Aid for Africa reports its financial position and activities according to thethree classes of net assets for unrestricted, temporarily restricted and permanently restricted, basedon the existence or absence of donor imposed restrictions. There are no permanently restricted netassets.

c. Revenue recognition - Contributions are recognized as revenue when received unless thedonor designates the gift for a specific period. Monies collected for the benefit of members and non-members are reflected on the accompanying financial statements as temporarily restricted revenue.

d. Cash and cash equivalents - Aid for Africa considers instruments with maturities of threemonths or less to be cash equivalents.

e. Income tax status - Aid for Africa is a non-profit organization which is exempt from federalincome taxes under the provisions of Section 501 (c)(3) of the Internal Revenue Code.

Aid for Africa follows the guidance of the Financial Accounting Standards Board AccountingStandards Codification 740-10, Accounting for Uncertainty in Income Taxes which clarifies the accounting forthe recognition and measurement of the benefits of individual tax positions in the financial statements,including those of non-profit organizations. Tax positions must meet a recognition threshold of more-likely-than-not in order for the benefit of those tax positions to be recognized in the financial statements.

Aid for Africa analyzes tax positions taken, including those related to the requirements set forth inIRS Sec. 501 (c) to qualify as a tax exempt organization, activities performed by volunteers and boardmembers, the reporting of unrelated business income, and its status as a tax-exempt organization underMaryland statute. Aid for Africa does not know of any tax benefits arising from uncertain tax positions andthere was no effect on the organization's financial position or changes in net assets as a result of analyzingits tax positions. Tax years ending on or after March 31, 2010 remain subject to examination by federal andstate authorities.

f. Management estimates - The preparation of financial statements in conformity withgenerally accepted accounting principles requires management to make estimates and assumptionsthat affect certain reported amounts and disclosures. Accordingly, actual results could differ fromthose estimates.

AID FOR AFRICA

NOTES TO FINANCIAL STATEMENTSMARCH 31. 2012 and 2011

NOTE 2 - TEMPORARILY RESTRICTED NET ASSETS

Aid for Africa is the focal point of a consortium of other non-profit organizations which havebeen organized with similar goals in support of the people of Africa. An organization can become amember of the consortium upon meeting certain membership criteria. In general, each member ofthe consortium must have been previously designated by the IRS as a not-for-profit organizationunder Section 501(c)(3) of the Internal Revenue Code, it must have provided or conducted realservices, benefits, assistance or program activities in Africa, it must have prepared IRS Form 990, itmust have had an accrual basis audit and it must have an active and responsible governing body.Aid for Africa collects contributions on behalf of its members. These donations are generally fromcampaign type organizations, such as the Combined Federal Campaign. A separate accounting ofeach member's contributions is maintained and funds are periodically forwarded to the members.Aid for Africa assesses a fee equal to 6% of the amount received to help defray the cost ofadministering the program.

Aid for Africa also receives contributions from non-members as a result of pursuingpartnerships with corporate, foundation and private donors. A separate accounting of each non-member's contributions is maintained and funds are periodically forwarded to the designatedrecipients. At this point, no fee is assessed on these contributions.

During the years ended March 31, 2012 and 2011 the total receipts and disbursements wereas follows:

2012 2011

Temporarily restricted net assets-beginning of year $ 684,860 $ 456,710Contributions received 1,037,829 1,389,466Program disbursements (1,174,298) (1,088,229)Management fees ( 57,527) (73,087)Temporarily restricted net assets-end of year $ 490,864 3L684,860

NOTE 3 - SPECIFIC DONOR DESIGNATIONS

The audited financial statements verify that Aid for Africa is honoring designations made toeach member organization by distributing a proportionate share of receipts based on donordesignations to members.

NOTE 4 - CONCENTRATION OF RISK

As of March 31, 2012 and at certain times during the year the organization has maintained abalance in a single cash account in excess of the Federal insured maximum of $250,000.