OCEF 2003 FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2003

Prepared by Yuanjian Deng, Shiyi Chen, Lixuan Chen

Translated by Shannon Tan, Xiaolei Wu

1.	Total Balance as of January 1, 20031£º	$	78,829.58
	Account in the U.S.	$	73,483.75
	U.S. Dollar Account in China	$	4,728.35
	RMB Account in China	$	617.48
2.	2003 Total Receipts2:	$	102,131.22	% of Total
	Individual Donation	$	63,245.37	61.93%
	Corporation Donation	$	6,880.00	6.74%
	Non-profit Organization Donation	$	12,174.33	11.92%
	Corporation Matching	$	19,537.10	19.13%
	Interest	$	294.42	0.29%
3.	2003 Total Disbursements:	$	64,837.16
	(1) Tuition Program (03' Spring: 980 students; 03'  Fall: 1201 students; Total RMB 388,355.00)	$	46,990.17
	(2) School Construction Program (in cooperation with Enlightening Education Program)	$	11,000.00
	(3) Library Project (RMB10,047.51)	$	1,215.73
	(4) Operational Expenses3     OCEF website     Publication and Postage4     Office Supplies     Bank Transaction Fee     Fund Raising     Advertisement     Fund Remittance Fee (RMB 3,442.35)     Internal Auditor Reimbursement in China (RMB 2,862.80)	$ $ $ $ $ $ $ $ $	5,631.26 288.50 3,296.87 504.66 81.00 197.32 500.00 416.52 346.39
4.	Undisbursed Receipts from 2003 (Item 2-Item 3):	$	37,294.06
5.	Computational Balance as of December 31, 2003£º	$	116,124.005
6.	Actual Balance as of December 31, 20035	$	116,123.005
	Bank Account in the U.S.	$	82,583.36
	RMB Bank Account in China (RMB277,189.776 ):	$	33,539.41
Remarks: 1£ºThe beginning balance of the U.S. Dollar Account in China is converted at the exchange rate of RMB 8.26 to US$1.00 to conform to OCEF¡¯s tax filing in 2002. 2£ºThis item includes donations already deposited into the OCEF bank accounts by December 31, 2003. Donations received but not yet deposited by that date are excluded from this item. 3£ºOCEF Operational expenses come from special donations from Trustees and Board of Directors, as well as advertisement income from OCEF sponsors. All public donations and membership fees will be 100% used to support impoverished school-age children. The operational expense in 2003 ($5,631.21) accounts for 5.5% of the total receipt ($102, 131.22). 4£ºThis item includes RMB 7360.75 paid in China. 5£ºEstimated disbursements for 2004£º The $116,123 Balance includes $90,000 financial aids budgeted for 04' Spring, 04' Fall, and 05' Spring, and funds for special projects such as school and library building and road construction.£º Budgeted financial aids£º (1) to 1222 students in 04' Spring (average $43/student/year)£º$26,300 (2) to 1300 students in 04' Fall (average $49/student/year)£º $31,850 (3) to 1300 students in 05' Spring (average $49/student/year)£º$31,850 From 04' Fall, OCEF will adjust middle-school student aid from $48.4(about RMB 400) /student/year to $60.5(about RMB 500)/student/year, and the primary school student aid from $37.53 (about RMB 310)/student/year to $36.32 (about RMB 300)/student/year. Budgeted special projects (funded by donations designated for school and library building, and infrastructure improvements) (1) School Building Project (2004)£º $5,000 (2) Library Building Project (2004)£º $8,000 (3) Road Construction Project (2004)£º $5,000 (4) Other projects (2004)£º$1,523 Operational Expenses: Operational expenses for the year of 2004 are estimated to be $6,600, approximately 5.5% of the total annual receipts. All the operational expenses will be disbursed from special donations from Trustees and Board of Directors, as well as advertisement income from OCEF sponsors. Total Estimated Disbursement for 2004£º$116,123 6£ºThe total remittance to the U.S. Dollar Account in China, plus the account's beginning balance, amounts to US$ 82,723.81 after bank transaction fee. Of this amount, $81,440 was converted into RMB at the actual exchange rate of US$1.00 to RMB 8.2646. The other $1,283.81 was converted at various floating rates. Because the immateriality of the rate difference, the $1,283.81 is also converted at the uniform rate of $1 = £¤8.2646 in this report. Of the RMB 277,189.77 ending balance of the RMB Bank Account in China, RMB 219,515 will be distributed to 1,222 students in February 2004 to support their education expense for the spring semester. *The difference between actual balance and computational balance is due to the currency exchange.