This document provides financial statements for the Youth Empowerment Center (YEC) in Gaza, Palestine for the year ended December 31, 2017, as audited by Talal Abu Ghazaleh & Co. International. The independent auditor's report and various financial statements show that YEC had total assets of $494,522 in 2017, with $295,098 in current assets including cash, receivables, and other assets. YEC had total liabilities of $471,472 and net assets of $23,050 at the end of 2017. YEC's statement of activities shows total revenues of $820,474 and expenses of $904,209, resulting in a net loss of $83,735 for

1. Youth Empowerment Center (YEC)
Palestine–Gaza
Financial Statements
and Independent Auditor's Report
2017for the Year Ended December 31,
Talal Abu Ghazaleh & Co. International
Certified Public Accountants

2. Empowerment Center (YEC)Youth
Palestine–Gaza
Table of Contents
Page Exhibit
Independent Auditor's Report 1-3 ‫ــــ‬
Statement of Financial Position as at December 31, 2017 4 (A)
Statement of Activities for the Year Ended December 31, 2017 5 (B)
Statement of Changes in Net Assets for the Year Ended December 31,
2017
6 (C)
Statement of Cash Flows for the Year Ended December 31, 2017 7 (D)
Notes to the Financial Statements 8 - 14 ‫ــــ‬

6. 4
Exhibit (A)
Youth Empowerment Center (YEC)
Gaza – Palestine
Statement of Financial Position as at December 31, 2017
((AAmmoouunnttss aarree eexxpprreesssseedd iinn NNIISS))
December 31
Note 2017 2016
Assets
Current Assets
Cash and Cash Equivalents 3 213,226.38 120,845.01
Other Assets 4 10,301.71 257,098.29
Donors Receivables - Oxfam 71,570.33 ---
Total Current Assets 295,098.42 377,943.30
Non-Current Assets
Property, Plant and Equipment, Net 5 199,423.99 232,990.50
Total Non-Current Assets 199,423.99 232,990.50
Total Assets 494,522.41 610,933.80
Liabilities and Net Assets
Current Liabilities
Outstanding Cheques 83,695.93 142,214.38
Deferred Revenues 6 323,491.42 113,468.61
Accrued Liabilities 7 3,948.75 191,512.62
Total Current Liabilities 411,136.10 447,195.61
Non – Current Liabilities
Provision for End of Service Indemnity 8 60,336.16 22,038.22
Total Non – Current Liabilities 60,336.16 22,038.22
Total Liabilities 471,472.26 469,233.83
Net Assets
Net Assets - Beginning of the Year 141,699.97 254,688.00
Net Assets for the Year - Exhibit (B) (118,649.82) (112,988.03)
Net Assets – End of The Year -Exhibit (C) 23,050.15 141,699.97
Total Liabilities and Net Assets 494,522.41 610,933.80
The accompanying notes constitute an integral part of these financial statements

7. 5
Exhibit (B)
Youth Empowerment Center (YEC)
Gaza – Palestine
Statement of Activities for the Year Ended December 31, 2017
((AAmmoouunnttss aarree eexxpprreesssseedd iinn NNIISS))
December 31, 2018
Notes
Restricted Unrestricted Total
December
31, 2016
Revenues
Programs' and Projects' Donations 9 --- 791,386.18 791,386.18 2,633,427.65
Cash Donations 28,168.35 --- 28,168.35 19,132.76
Other Revenues 920.00 --- 920.00 440.00
Total Revenues 29,088.35 791,386.18 820,474.53 2,653,000.41
Expenses
Employees' Benefits 51,529.88 --- 51,529.88 14,440.00
Programs' and Projects' Expenses 10 --- 791,386.18 791,386.18 2,631,275.81
General & Administrative
Expenses
11 23,452.87 --- 23,452.87 72,627.29
Depreciation 5 37,840.55 --- 37,840.55 47,645.34
Total Expenses 112,823.30 791,386.18 904,209.48 2,765,988.44
Net Assets for the Year from
Activity
(83,734.95) --- (83,734.95) (112,988.03)
:Other Items
Prior Years Adjustments 12 (34,914.87) --- (34,914.87) ---
Net Assets for the Year – Exhibit
“A”
(118,649.82) --- (118,649.82) (112,988.03)
The accompanying notes constitute an integral part of these financial statements

8. 6
Exhibit (C)
Youth Empowerment Center (YEC)
Gaza – Palestine
Statement of Changes in Net Assets for the Year Ended December 31, 2017
((AAmmoouunnttss aarree eexxpprreesssseedd iinn NNIISS))
General
Net Assets
Investment
in Property,
Plant and
Equipment
Total
Net Assets on January 1, 2017 (91,290.53) 232,990.50 141,699.97
Net Assets for the Year - Exhibit (B) (118,649.82) --- (118,649.82)
Deprecation of Property, Plant and Equipment 37,840.55 (37,840.55) ---
Additions to Property, Plant and Equipment (4,274.04) 4,274.04 ---
Net Assets on December 31, 2017 – Exhibit (A) (176,373.84) 199,423.99 23,050.15
Net Assets on January 1, 2016 (23,796.00) 278,484.00 254,688.00
Net Assets for the Year - Exhibit (B) (112,988.03) --- (112,988.03)
Deprecation of Property, Plant and Equipment 47,645.34 (47,645.34) ---
Additions to Property, Plant and Equipment (2,151.84) 2,151.84 ---
Net Assets on December 31, 2016 – Exhibit (A) (91,290.53) 232,990.50 141,699.97
The accompanying notes constitute an integral part of these financial statements

9. 7
Exhibit (D)
Youth Empowerment Center (YEC)
Gaza – Palestine
Statement of Cash Flows for the Year Ended December 31, 2017
((AAmmoouunnttss aarree eexxpprreesssseedd iinn NNIISS))
December 31
2017 2016
Cash Flows from Operating Activities
Net Assets for the Year (118,649.82) (112,988.03)
Adjustments to Reconcile Net Assets for the Year
to Net Cash Provided by Operating Activities
Depreciation of Property, Plant and Equipment 37,840.55 47,645.34
Change in Provision for End of Service Indemnity 38,297.94 (7,461.78)
Change in Other Assets 246,796.58 (254,098.29)
Change in Accrued Liabilities (187,563.87) 190,538.62
Change in Deferred Revenue 210,022.81 (392,164.39)
Change in Outstanding Cheques (58,518.45) 113,141.38
Change in Donors Receivables - Oxfam (71,570.33) ---
Net Cash Flows Generated By (Used in) Operating Activities 96,655.41 (415,387.15)
Cash Flows from Investing Activities
Additions to Property, Plant and Equipment (4,274.04) (2,151.84)
Net Cash Flows (Used in) Investing Activities (4,274.04) (2,151.84)
Net Cash Flows Generated (Used)During the Year 92,381.37 (417,538.99)
Cash and Cash Equivalents, Beginning of the Year 120,845.01 538,384.00
Cash and Cash Equivalents, End of the Year – Exhibit (A) – Note (3) 213,226.38 120,845.01
The accompanying notes constitute an integral part of these financial statements

10. 8
Youth Empowerment Center (YEC)
Gaza – Palestine
Notes to the Financial Statements
((AAmmoouunnttss aarree eexxpprreesssseedd iinn NNIISS))
1. General Information
1-1 Legal Status
Youth Empowerment Centre (YEC) was established in Gaza Strip on March 25, 2008 and
registered at the Ministry of Interior under registration no. (8050) pursuant to the Non-
Profit Societies Act. No. (1) for the year 2000. The Authority obtained a professional
registration license from the Ministry of Youth and Sports under registration no.
(21/2010) on September 28, 2010 and obtained a professional license
with the Ministry of Social Affairs under registration no. (9122) on March 28, 2014.
Youth Empowerment Centre seeking to empower the community educationally,
economically, socially and healthily.
1-2 Goals & Objectives
Youth Empowerment Center (YEC) seeks towards achieving and embodiment the
following objectives:
1- Empower youth and young people to build a Association of healthy physical, social
and psychological environment through ensuring concepts of justice, equality and human
values.
2- Contribute to support the marginalized groups through facilitating their access to main
services.
3- Ingrate disabled people in Association to reduce social exclusion.
4- Empower women to participate fully in all aspect of the life across all sectors.
2. Summary of Significant Accounting Policies
2-1 Basis of Financial Statements Preparation
The financial statements have been prepared on historical cost basis and the accrual basis
of accounting.
2-2 Foreign Currencies
The financial statements are presented in the currency of the primary economic
environment in which the Association operates which is the Israeli Shekel (NIS).
Transactions in currencies other than the Israeli shekel are converted to Israeli Shekel
(NIS) according to the exchange rates prevailing on the date of transaction. At the date of
each statement of financial position monetary items denominated in other currencies are
translated to the Israeli Shekel (NIS) at rates prevailing at that date (closing date). The
rates on December 31, 2017 were as follows:
- USD = 3.4777 NIS
- Euro = 4.172 NIS
Differences arising are recognized in the statement of activities for the year.

11. 9
2-3 Property, Plant and Equipment
Property, plant and equipment held for use in production or supply of goods or services,
or for administrative purposes, are initially recognized at their cost being their purchase
price plus any other costs directly attributable to bringing the assets to the location and
condition necessary for them to be capable of operating in the manner intended by
management. After initial recognition, Property, Plant and Equipment are carried in the
statement of financial position at cost less accumulated depreciation and any accumulated
impairment in value. The depreciation charge for each year is recognized in the statement
of activities. Depreciation is calculated on a straight-line basis according to the
depreciation ratios listed in NGOs' financial and management procedures manual as
illustrated in (Note 5).
Category
Depreciation
Rate
Category
Depreciation
Rate
Buildings 5% Furniture 10%
Vehicles 10% Computer Software 10%
Computers 25%
Electrical Devices 20%
The property, plant and equipment have been counted by the Association’s management
for the year ended at December 31, 2017.
2-4 Provisions
Provisions are present obligations (legal or constructive) resulted from past events, the
settlement of the obligations is probable and the amount of those obligations can be
estimated reliably. The amount recognized as a provision is the best estimate of the
expenditure required to settle the present obligation at the statement of financial position
date, that is, the amount that the Association would rationally pay to settle the obligation
at the statement of financial position date or to transfer it to a third party.
The Association calculates a provision for end of service indemnity for its employees in
accordance with the Palestinian labor law. The provision is computed at one month salary
for each year of service according to the last salary paid.
2-5 Projects' Expenses
The expenses of activities that resulted from the provision of services to beneficiaries and
which is the main objective of the Association.
2-6 General and Administrative Expenses
The expenses which related to the management and not included within the projects'
expenses.
2-7 Revenues and Expenses
- Revenues are recognized when earned.
- Expenses are recognized when incurred and recorded including V.A.T.
2-8 Cash and Cash Equivalents
For the purpose of the cash flows preparation the cash and cash equivalents on December
31, 2017 comprise cash on hand and current balances and short-term deposits which
matures within three months.

12. 10
2-9 Other Liabilities
Liabilities are recognized for amounts payable in the future for purchase or services
received, whether or not claimed by the suppliers.
3. Cash and Cash Equivalents
December 31
2017 2016
Cash on Hand
General Cash 1,787.00 867.62
Petty Cash 86.93 ---
Total Cash on Hand 1,873.93 867.62
Cash at Banks
Al-Quds Bank
A/C 457504 – 0 Current NIS 16,399.07 126.83
A/C 457504 – 1 Current NIS --- 100,103.43
A/C 457504 – 2 Current NIS --- 143.48
A/C 457504 – 1 Current (Staff Savings) 36.04 5,583.38
A/C 457504 – 0 Current USD 818.90 253.40
A/C 457504 – 1 Current USD 80.70 7,049.66
A/C 457504 –2 Current USD 179,242.86 6,315.46
A/C 457504 – 0 Current Euro 14,373.13 ---
Total Cash at Al-Quds Bank 210,950.70 119,575.64
Islamic National Bank
A/C 01023923 – 1 Current NIS - Savings 401.75 401.75
Total Cash at Islamic National Bank 401.75 401.75
Total Cash at Banks 211,352.45 119,977.39
Total Cash and Cash Equivalents – Exhibit (A) 213,226.38 120,845.01
4.Other Assets
December 31
2017 2016
Cash Deposits (Al-Quds Bank) 3,000.00 3,000.00
Accrued Revenue (Caritas Projects) 7,301.71 173,613.77
Accrued Revenue (Oxfam Projects) --- 80,484.52
Total Other Assets – Exhibit (A) 10,301.71 257,098.29

13. 11
5. Property, Plant and Equipment Net
Buildings Vehicles
Computers
& Printers
Electrical
Devices
Furniture
Computer
Software
Total
Cost
January 1, 2017 191,472.00 93,600.00 51,371.27 74,647.57 77,626.00 4,397.00 493,113.84
Additions --- --- 4,274.04 --- --- --- 4,274.04
December 31, 2017 191,472.00 93,600.00 55,645.31 74,647.57 77,626.00 4,397.00 497,387.88
Accumulated Depreciation
January 1, 2017 31,801.46 71,657.42 51,370.27 64,607.10 37,832.15 2,854.94 260,123.34
Deprecation 9,573.60 9,360.00 665.18 10,039.47 7,762.60 439.70 37,840.55
December 31, 2017 41,375.06 81,017.42 52,035.45 74,646.57 45,594.75 3,294.64 297,963.89
Net Book Value
December 31, 2017 150,096.94 12,582.58 3,609.86 1.00 32,031.25 1,102.36 199,423.99
December 31, 2016 159,670.54 21,942.58 1.00 10,040.47 39,793.85 1,542.06 232,990.50
-The property, plant and equipment have been counted by the Association’s management for the year ended at December 31, 2017.

14. 12
6. Deferred Revenues
December 31
2017 2016
Oxfam GB 119,924.89 100,103.49
CARITAS 203,566.53 13,365.12
Total Deferred Revenues – Exhibit (A) 323,491.42 113,468.61
7. Accrued Liabilities
December 31
2017 2016
Salaries and Wages (Project) 1,341.00 120,985.38
Professional Fees 2,607.75 16,243.20
Other Expense --- 54,284.04
Total Accrued Liabilities – Exhibit (A) 3,948.75 191,512.62
8. Provision for End of Service Indemnity
2017 2016
Balance 1/1 22,038.22 29,500.00
Additions 13,883.00 12,840.00
Adjustments 32,842.28 ---
Uses (8,427.34) (20,301.78)
Total Provision for End of Service Indemnity – Exhibit (A) 60,336.16 22,038.22
9. Grants’ and Projects’ Donations
December 31
2017 2016
Education in Emergencies Program - Caritas Switzerland 447,714.34 1,764,214.47
Public Health Program - Oxfam 343,671.84 793,961.75
Bait Jododona Project - Help-Age International --- 75,251.43
Total Grants’ and Projects’ Donations - Exhibit (B) 791,386.18 2,633,427.65

15. 13
10.Grants’ and Projects’ Expenses
December 31
2017 2016
Education in Emergencies Program - Caritas Switzerland 447,714.34 1,764,214.47
Public Health Program - Oxfam 343,671.84 791,809.91
Bait Jododona Project - Help-Age International --- 75,251.43
Total Grants’ and Projects’ Expenses - Exhibit (B) 791,386.18 2,631,275.81
11. General and Administrative Expenses
December 31
2017 2016
Transportation 6,214.20 200.00
Bank Expenses 2,068.62 1,775.87
Professional Fees 2,607.75 11,328.75
Currency Differences 878.35 54,309.74
Miscellaneous Expenses 384.10 4,009.33
Communications 3,518.81 ---
Halls Rental Fees 6,460.00 ---
Electricity and Water 1,321.04 ---
Vehicles Insurance --- 1,003.60
Total General and Administrative Expenses - Exhibit (B) 23,452.87 72,627.29
12.Prior Years Adjustments
December 31
2017 2016
Prior Years Project Adjustments Provision for EOS Indemnity (32,842.28) ---
Prior Years Project Adjustments – Project (2,072.59) ---
Total Prior Years Adjustments - Exhibit (B) (34,914.87) ---

16. 14
13.Legal Lawsuits
We did not receive a confirmation letter from the legal counsel of the Association
which shows the legal cases that may the Association is a part of engage in for the
financial year ended on December 31, 2017.
a. Foreign currency risk:
The Association’s management undertakes certain transactions denominated in
foreign currencies, which imposes sort of risk due to fluctuations in exchange rates
during the year. The Association maintains policies and procedures to manage the
exchange rate risk exposure.
b. Credit risk:
Credit risk refers to the risk that a debtor will default in its contractual obligations
resulting in financial loss to the Association. The Association maintains a credit policy
that states dealing with only creditworthy parties and obtaining sufficient collateral
where appropriate.
c. Liquidity risk
The Board of Directors adopted an appropriate liquidity risk management framework
as the responsibility of liquidity risk management rests with the Board of Directors.
14. Fair value of Financial Instruments
The carrying values of the financial assets and liabilities are not materially different
from their fair values as at the financial position date.
15. Number of Employees
The number of the employees at the Association during December 2017 was (2)
Permanent employees, (29) projects' employees.
16. Comparative Figures
Certain balances for the previous year were reclassified to conform to the current year
presentation.