2012 nine month audited financial statements

TableofContents

IndependentAuditorsReport........................................................................................................1

StatementofFinancialPosition.......................................................................................................2

StatementofActivitiesandChangesinNetAssets.........................................................................3

StatementofCashFlows.................................................................................................................4

StatementofFunctionalExpenses..................................................................................................5

NotestoFinancialStatements........................................................................................................6

Note1DescriptionandPurposeoftheOrganization...............................................................7

Note2SummaryofSignificantAccountingPolicies..................................................................7

Note3CreditRisk.....................................................................................................................9

Note4OperatingLease............................................................................................................9

Note5Commitments...............................................................................................................9

Note6RetirementPlan............................................................................................................9

Note7SubsequentEvents.....................................................................................................10

1 0 4 W O O D M O N T B O U L E V A R D , S U I T E 1 2 0 N A S H V I L L E , T E N N E S S E E 3 7 2 0 5 P H O N E : ( 6 1 5 ) 2 7 9 - 0 0 8 8 F A X : ( 6 1 5 ) 2 7 9 - 9 5 9 9

M c K e r l e y N o o n a n . c o m

IndependentAuditorsReport

TotheBoardofDirectorsofBlood:WaterMission,Inc.Nashville,TNWehaveauditedtheaccompanyingstatementoffinancialpositionofBlood:WaterMission,Inc.(anonprofitorganization)asofSeptember30,2012,and the relatedstatementsofactivitiesand changes innet assets, and cash flows for theninemonths then ended. These financialstatementsare the responsibilityof theOrganizationsmanagement. Our responsibility is toexpressanopiniononthesefinancialstatementsbasedonouraudit.

WeconductedourauditinaccordancewithauditingstandardsgenerallyacceptedintheUnitedStates of America. Those standards require that we plan and perform the audit to obtainreasonable assurance about whether the financial statements are free of materialmisstatements.Anauditincludesexamining,onatestbasis,evidencesupportingtheamountsand disclosures in the financial statements. An audit also includes assessing the accountingprinciplesusedandsignificantestimatesmadebymanagement,aswellasevaluatingtheoverallfinancialstatementpresentation.Webelievethatourauditprovidesareasonablebasisforouropinion.

Inouropinion,thefinancialstatementsreferredtoabovepresentfairly,inallmaterialrespects,thefinancialpositionofBlood:WaterMission,Inc.asofSeptember30,2012,andthechangesinitsnetassetsanditscashflowsfortheninemonthsthenendedinconformitywithaccountingprinciplesgenerallyacceptedintheUnitedStatesofAmerica.

McKerley&Noonan,P.C.April16,2013

204205.1135849

Blood:WaterMission,Inc.StatementofFinancialPosition

September30,2012

Assets

CurrentAssets:CashinBank 557,051$MiscellaneousReceivable 537

TotalCurrentAssets 557,588

FixedAssets:OfficeFurnitureandEquipment 82,084LeaseholdImprovements 34,628Vehicles 15,873Less:AccumulatedDepreciation (68,982)

NetFixedAssets 63,603

OtherAssetsDeposits 3,782

3,782

TotalAssets 624,973$

LiabilitiesandNetAssets

CurrentLiabilities:AccountsPayableandAccruedExpenses 62,528$

TotalCurrentLiabilities 62,528

NetAssets:UnrestrictedNetAssets 537,445TemporarilyRestrictedNetAssets 25,000

TotalNetAssets 562,445

TotalLiabilitiesandNetAssets 624,973$

SeeNotestotheFinancialStatements 2

Blood:WaterMission,Inc.StatementofActivitiesandChangesinNetAssetsFortheNineMonthsEndedSeptember30,2012

TemporarilyUnrestricted Restricted Total

RevenuesandSupport:Contributions 1,221,611$ 919,542$ 2,141,153$InterestIncome 535 535MerchandiseNet 794 794NetAssetsReleasedfromRestriction 894,542 (894,542)

TotalRevenuesandSupport 2,117,482 25,000 2,142,482

Expenses:ProgramServices 1,649,108 1,649,108SupportingServices:

GeneralandAdministrative 321,606 321,606Fundraising 606,767 606,767

TotalExpenses 2,577,481 2,577,481

ChangeinNetAssets (459,999) 25,000 (434,999)

NetAssets,BeginningoftheYear 997,444 997,444

NetAssetsEndoftheYear 537,445$ 25,000$ 562,445$


Blood:WaterMission,Inc.StatementofCashFlows

FortheNineMonthsEndedSeptember30,2012

CashFlowsfromOperatingActivities:ChangeinNetAssets (434,999)$AdjustmentstoReconcileChangeinNetAssetstoNetCashProvidedbyOperatingActivities:

Depreciation 14,232LossonDisposalofAssets 775IncreaseinMiscellaneousReceivable (526)DecreaseinPrepaids 500IncreaseinAccountsPayableandOtherLiabilities 40,689

TotalAdjustments 55,670NetCashUsedforOperatingActivities (379,329)

CashFlowsfromInvestingActivitiesAcquisitionofFixedAssets (9,479)

NetCashUsedforInvestingActivities (9,479)

NetDecreaseinCash (388,808)

Cash,BeginningoftheYear 945,859

Cash,EndofYear 557,051$

SupplementalCashFlowInformation:InterestPaid $


Blood:WaterMission,Inc.StatementofFunctionalExpenses

FortheNineMonthsEndedSeptember30,2012

SupportingServicesProgram GeneralandServices Administrative Fundraising Total

HumanResources 503,963$ 138,767$ 209,807$ 852,537$WellProjects 585,927 585,927KigaliFieldOffice 29,655 29,655HIV/AidsProjects 253,258 253,258Education&Storytelling 191,639 227 70,054 261,920Bank&CreditCardFees 2,525 39,874 42,399ProfessionalFees 8,307 30,990 3,500 42,797Printing&Photography 2,519 10,480 826 13,825Supplies&Postage 6,520 18,927 7,240 32,687StrategicDevelopment 173 7,427 310 7,910Occupancy 17,352 20,031 3,856 41,239Travel 27,167 329 1,647 29,143OtherExpenses 22,628 77,671 269,653 369,952Depreciation 14,232 14,232

TotalFunctionalExpenses 1,649,108$ 321,606$ 606,767$ 2,577,481$


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NotestoFinancialStatements

Blood:WaterMission,Inc.NotestoFinancialStatements

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NOTE1DESCRIPTIONANDPURPOSEOFTHEORGANIZATION

Blood:Water Mission, Inc. (the Organization) is a nonprofit grassroots organization thatempowerscommunitiestoworktogetheragainsttheHIV/AIDSandwatercrisesinAfrica.AlloftheOrganizationsincomeisderivedfromdonationsfromindividuals,churches,companies,andfoundations.

TheorganizationchangeditsfiscalyearendfromDecember31toSeptember30.Therefore,theaccompanying financial statements only reflect the operations for the nine months endedSeptember30,2012.

NOTE2SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES

The financial statements of the Organization have been prepared on the accrual basis ofaccountingwhichmeansthatrevenuesarerecognizedwhenearnedandexpensesarerecordedwhen incurred. ThesignificantaccountingpoliciesoftheOrganizationaredescribedbelowtoenhancetheusefulnessofthefinancialstatementstothereader.

UseofEstimatesThe preparation of financial statements in accordance with generally accepted accountingprinciples requiresmanagement tomakeestimatesandassumptions thataffect the reportedamountofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthe financial statements and the reported amounts of revenue and expenses during thereportingperiod.Actualresultscoulddifferfromthoseestimates.

FinancialStatementPresentationFor financial statement presentation, the Organization reports its financial informationaccording to three classes of net assets (unrestricted net assets, temporarily restricted netassets and permanently restricted net assets) based on the existence or absence of donorimposedrestrictions.

UnrestrictedNetAssetsUnrestricted net assets are donations that are not subject to donorimposedstipulations. Monies received without restriction or released from restriction aregenerallyusedtofinancethenormaldaytodayoperationsoftheOrganization.

TemporarilyRestrictedNetAssetsTemporarily restricted net assets are donations that are subject to donorimposedstipulations thatmayorwillbemet,eitherbyactionsof theOrganizationand/or thepassage of time. When a restriction expires, temporarily restricted net assets arereclassifiedtounrestrictednetassetsandreportedinthestatementofactivitiesasnet

Blood:WaterMission,Inc.NotestoFinancialStatements(Continued)

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assets released from restrictions. At September 30, 2012, there was $25,000 oftemporarilyrestrictedassetsrelatedtoagrantforprogramsinAfrica.

PermanentlyRestrictedNetAssetsPermanentlyrestrictednetassetsaredonationssubjecttodonorimposedstipulationsthat they bemaintained permanently by theOrganization. Generally, the donors ofthese assetspermit theOrganization touse allorpartof the income earnedon anyrelated investmentsforgeneralorspecificpurposes. AsofSeptember30,2012,therewerenopermanentlyrestrictednetassets.

DonatedServicesDonatedservicesthatrequirespecializedskillsandwouldbepurchased ifnotprovidedbythedonorarerecognizedassupportandexpensesbasedonthefairvalueoftheservicesreceived.FromtimetotimetheOrganizationreceivesdonatedservices fromprofessionalmusicians forwhich the value is difficult to estimate; the value of those services are not reflected in thefinancialstatements.

CashandCashEquivalentsFor purposes of the statement of financial position and the statement of cash flows, cashconsistsofcashandotherhighly liquidresourceswithanoriginalmaturityofthreemonthsorlesswhenpurchased.

FixedAssetsFixedassetsarerecordedatcostandaredepreciatedusingthestraightlinemethodbasedonthefollowingestimatedusefullivesoftheassets.

LeaseholdImprovements 15yearsVehicle 5yearsFurniture&Equipment 57yearsIntangibles(Software) 3years

Significant additions and betterments are capitalized. Expenditures formaintenance, repairsandminor renewals are charged to expense as incurred. Depreciation expense for the ninemonthsendedSeptember30,2012amountedto$14,232.

ClassificationofExpensesExpensesareclassifiedfunctionallyasameasureofserviceeffortsandaccomplishments.Directexpenses, incurredforasinglefunction,areallocatedentirelytothatfunction. Jointexpensesapplicable to more than one function are allocated on the basis of objectively summarizedinformationormanagementestimates.


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IncomeTaxesThe Organization is recognized as a taxexempt organization under Section 501(c)(3) of theInternal Revenue Code, and therefore, no provision for federal or state income taxes isapplicable.

TheOrganizationhasadoptedtheguidanceinASC740onaccountingforuncertaintyinincometaxes. ForalltaxpositionstakenbytheOrganization,managementbelieves it isclearthatthelikelihood is greater than 50 percent that the full amount of the tax positions takenwill beultimatelyrealized.Withfewexceptions,theOrganizationisnolongersubjecttoU.S.federaltaxexaminationsbytaxauthoritiesforyearsbefore2009.TheOrganizationincurrednointerestorpenaltiesduringtheninemonthsendedSeptember30,2012.

NOTE3CREDITRISK

During2012,theOrganizationmaintainedatvarioustimescashbalancesinexcessof$250,000inhigh creditqualitybanks,which are insuredby the FederalDeposit InsuranceCorporation(FDIC)upto$250,000.

NOTE4OPERATINGLEASE

OnDecember15,2007,theOrganizationenteredintoaleaseforofficespaceforatermofthreeyearsandfourmonths.Theagreementexpiredduring2011,andasofDecember31,2011theOrganizationisrentingtheirspaceonamonthtomonthbasis.TheOrganizationalsoleasesanapartmentinRwandaonamonthtomonthbasis.

Atotalexpenseof$42,364wasincurredbytheOrganizationforoperatingleasesin2012.

NOTE5COMMITMENTS

TheOrganization has entered into nonbindingmemorandums of understanding (MOU)withseveral strategicpartners for thepurposeofaccomplishing theOrganizationsgoals inAfrica.TheseMOUsdocumenttheexpectedcostsofeachproject,thetimeframes involved,andthedesiredresults.

NOTE6RETIREMENTPLAN

TheOrganizationhasaSimpleIRAretirementplaninwhichallemployeeswhohavereceivedatleast$5,000incompensationduringanytwoprioryearsandreasonablyexpectedtoreceiveatleast$5,000incompensationinthecurrentyearareeligible.Employeesmaycontributepretaxdeferralsup to$11,500 for the year. TheOrganizationmatches thosedeferralsup to3%ofcompensation.TheOrganizationmade$15,200ofmatchingcontributionsduring2012.


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NOTE7SUBSEQUENTEVENTS

Management has evaluated subsequent events through April 16, 2013, the date that thefinancialstatementswereavailabletobeissued.

2012 nine month audited financial statements

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