SCHOOLS INTEROPERABILITY FRAMEWORK ASSOCIATION - Access 4 Learning Statement of Activities Year Ended December 31, 2015

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2 Statement of Activities Year Ended December 31, 2015 Temporarily Permanently Unrestricted Restricted Restricted Total Revenue, Support and Gains Interest/Investments 1 1 Registrations & Certifications 54,030 54,030 Member Dues 632, ,976 TOTAL Revenue 687, ,007 Expenses and Losses Program Related 149, ,417 Wages/Payroll Taxes 409, ,083 Facility Related - - Operating 44,735 44,735 TOTAL 603, ,235 Operating Income 83, ,772 Loss on currency translation 11,494 11,494 Change in Net Assets 72, ,278 See notes to Financial Statements

3 Statement of Financial Position December 31, 2015 Assets Current Assets Cash 34,598 Short Term Investments 27 Accounts Receivable 121,351 Allowances (53,877) Total Current Assets 102,099 Property, Plant and Equipment 73,997 Accumulated Depreciation/Amortization (73,997) TOTAL ASSETS 102,099 Liabilities Current Liabilities Accounts Payable 92,005 Accrued Expenses 15,026 Total Current Liabilities 107,031 LT Notes/Mortgage - TOTAL LIABILITIES 107,031 Net Assets Unrestricted (4,932) Temporarily Restricted - Permanently Restricted - TOTAL NET ASSETS (4,932) Total Liabilities and Net Assets 102,099 See notes to Financial Statements

4 Cash Flow Statement for the period ending December 31, 2015 Cash Flows from Operating Activities Net Income 72,278 Increase in accounts receivable (Adjusted see note) (12,613) Decrease in accounts payable (62,384) Increase in accrued liabilities 5,108 Decrease in other current liabilities (69,889) Net cash provided by operating activities 2,389 Cash Flows from Investing Activities Cash from sale of long term assets Acquisition of long-term assets Sales of other long-term assets Net cash provided by investing activities 0 Cash Flows from Financing Activities Cash from borrowing Repay borrowed dollars (principle only) Net cash provided by financing activities 0 Net increase (decrease) in cash 2,389 Cash Balance end prior period 32,236 Cash Balance end current period 34,625 Non-cash investing and financing activities: Currency Translation reflected in Net Income (11,494) Total non-cash investing and financing activities 0

5 Statement of Functional Expenses Year Ended December 31, 2015 Program Related Management & General Fundraising Total 7210 Officers & directors salaries 198, , Salaries & wages - other 0 153, , Pension plan contributions 0 7,874-7, Employee benefits - not pension 0 29,200-29, Payroll taxes 0 20,488-20, Contract services 0 3,819-3, Accounting fees 0 5,332-5, Payroll Fees 0 12,352-12, Legal fees 0 10,046-10, Professional fees 21, , Web site development 7, , Temporary help - contract 39, , Non-personnel expenses 1, , Supplies 2, , Telephone & telecommunications 12, , Postage, shipping, delivery (2) 0 - (2) 8150 Mailing services Books, subscriptions, reference 1, , Computer Software Computer Equipment 2, , Airfare 11, , Hotel 14, , Meals Breakfast Lunch Dinner 2, , Other meals Local Transportation Limo/Taxi Train 1, , Other Local Travel Rental Parking Other general transportation Conference & Convention Fees 1, , Meeting Rental 20, , Scholarship Fund 3, , Insurance - non-employee 0 2,799-2, Taxes - other 0 2,879-2, Credit Card Fees 0 1,500-1, Bank fees 0 4,730-4, , , ,137

6 SCHOOLS INTEROPERABILITY FRAMEWORK ASSOCIATION Access 4 Learning NOTES Note 1 Summary of Significant Accounting Policies Schools Interoperability Framework Association is a non-profit organization based in Washington DC. The association is composed of schools, districts, local authorities, states, US and International Ministries of Education, software vendors and consultants who collectively address all aspects of learning information management and access to support learning. The A4L Community is Powered by SIF Specifications as its major technical tool to allow for this management and access simply, securely and in a scalable, standard way regardless of the platform hosting those applications. The Access 4 Learning Community has united these education technology end users and providers in an unprecedented effort to give teachers more time to teach. Accounting Policies include a. The organization presents accounting data on the accrual basis. b. There are no restricted accounts. c. Revenue is earned in the form of dues from members. There are members is multiple parts of the world. d. Cash consists of funds held in commercial checking and savings accounts for operating purposes. There is one material cash account held in the U.K. This account discussed in note #5. e. There are no material investments for the organization. f. There is no income tax associated required as the association is a 501 (c)(3) organization. g. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. h. There are no related party transactions beyond typical reimbursements. Note 2 Accounts Receivable and Revenue Recognition Schools Interoperability Framework Association invoices clients annually for membership. At the time of invoicing SIF records a debit to an accounts receivable account and a credit to an associate contra allowance account. Each month as dues revenue is earned SIF debit the allowance account and credits revenue. Based on this convention the end-of-year allowance account balance should equal Previous Correct Allowance Account Balance + Debits to Accounts Receivable in the year credit memos to Accounts Receivable during the year membership dues revenue recorded during the year. Two factors led to a significant audit adjustment to the accounts receivable and allowance accounts.

7 1. The allowance account was not properly valued leading to significantly understated net accounts receivable, total assets and net assets. 2. Cutoff tests indicated several members who were dropped or written off for various reasons. This resulted in reductions of revenue and accounts receivable. Audit adjustments corrected these balances leading to a lower change in net assets (net income) and a significantly stronger balance sheet. Inaccurate net accounts receivable in previous year(s) led to a plugged value in the indirect cash flow statement computation. Note 3 Fixed Assets Property and equipment are recorded at the original cost to the Association or, if donated, the appraised value at the time of donation. The assets are being depreciated using the estimated useful lives of the respective assets on a straight-line basis. Costs associated with the purchase of software are being amortized using the straight-line method over an estimated useful life of 36 months. As of December 31, 2015 all depreciable assets have been fully depreciated. Note 4 Payroll Services and Employee Benefit Plan The organization has a Professional Employer Organization Service agreement with Ambrose Group, LLC, who provides the Association with a comprehensive Personnel Management System which encompasses a broad range of services, including payroll administration and employer benefit programs. The benefit programs include a 401(k) plan that covers employees of the Association. Note 5 Foreign Currency The organization holds a cash account in the U.K. As of December 31, 2015 the value of the account was 7065 British Pounds. As of December 31, 2015 the value in American dollars, the functional currency of the organization, was $10,415. And audit adjustment was made to properly value the cash account.