Independent Accountants’ Report

INDEPENDENT ACCOUNTANTS’ REPORT Executive Council American Association of Teachers of French, Inc. Carbondale, Illinois We have audited the accompanying statements of financial position of American Association of Teachers of French, Inc., a not-for-profit corporation, as of June 30, 2011 and 2010, and the related statements of activities and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, 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 by management, as well as evaluating the overall financial statement presentation. We believe that our audits 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 the American Association of Teachers of French, Inc. as of June 30, 2011 and 2010 and changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Kerber, Eck, & Braeckel, LLP Carbondale, Illinois November 30, 2011 ASSOCIATION NEWS 1245 AMERICAN ASSOCIATION OF TEACHERS OF FRENCH, INC. STATEMENTS OF FINANCIAL POSITION June 30, 2011 and 2010 General Fund Restricted National French and Total of All Funds National The French French Honor Designated Headquarters Review Contest Society Total Fund 2011 2010 ASSETS Cash and cash equivalents $137,560 $16,512 $51,005 $30,574 $235,651 $96,209 $331,860 $216,051 Investments, at fair value: Common and preferred stock — — — — — 1,028,695 1,028,695 812,614 Index funds — — — — — 372,427 372,427 245,867 Government and agency securities — — — — — 229,540 229,540 348,426 137,560 16,512 51,005 30,574 235,651 1,726,871 1,962,522 1,622,958 Equipment 21,907 — 224 — 22,131 — 22,131 22,131 Less accumulated depreciation (21,675) — (224) — (21,899) — (21,899) (21,174) 232 — — — 232 — 232 957 Accounts receivable — 650 1,831 — 2,481 — 2,481 9,239 Prepaid expense 55,660 — — — 55,660 — 55,660 38,900 Inventory — — 16,545 — 16,656 — 16,545 12,334 Due from others — — — 5,814 5,814 — 5,814 — TOTAL ASSETS $193,452 $17,162 $69,381 $36,388 $316,383 $1,726,871 $2,043,254 $1,684,388 The accompanying notes are an integral part of these statements. 1246 1247 AMERICAN ASSOCIATION OF TEACHERS OF FRENCH, INC. STATEMENTS OF FINANCIAL POSITION, CONTINUED June 30, 2011 and 2010 General Fund Restricted National French and Total of All Funds National The French French Honor Designated Headquarters Review Contest Society Total Fund 2011 2010 LIABILITIES Deferred revenue $164,559 $ — $ — $ — $164,559 $ — $164,559 $96,948 Accrued payroll — — — — — $ — — — Accrued payable 5,912 $ — $954 284 7,150 $ — 7,150 9,263 Accrued benefits 4,899 $ — — — 4,899 $ — 4,899 2,178 Accrued other — $ — — — — $ — — 125 Due to others 5,814 — — — 5,814 $ — 5,814 — Total liabilities 181,184 — $954 284 182,422 — 182,422 108,514 NET ASSETS 12,268 17,162 68,427 36,104 133,961 1,726,871 1,860,832 1,575,874 TOTAL LIABILITIES AND NET ASSETS $193.452 $17,162 $69,381 $36,388 $316,383 $1,726,871 $2,043,254 $1,684,388 The accompanying notes are an integral part of these statements. 1248 FRENCH REVIEW 85.6 AMERICAN ASSOCIATION OF TEACHERS OF FRENCH, INC. STATEMENTS OF ACTIVITIES Years Ended June 30, 2011 and 2010 2011 2010 Operating revenue Membership, subscriptions & senior awards $ 433,745 $ 448,583 Sales of certificates, pins & t-shirts 153,123 147,022 Sales of tests, tapes & cds 221,165 221,705 Advertising 26,695 7,650 Conference 106,813 35,193 Mailing list rental 5,046 4,942 Royalties 26,746 26,222 Other 179,675 204,800 Total operating revenue 1...