Consolidated Statement of Operations and Changes in Net Position

Revenues and Expenses

Revenues

     Interest, Non-Federal                                     $82,931      Interest, Federal                                         847,844      Other Revenue                                                 316                                                                -------           Total Revenues                                       931,091 

Expenses

     Guaranteed Loan Subsidy Expense                         2,651,988      Direct Loan Subsidy Expense                               436,132      Elementary and Secondary Education Grants               9,324,757      Postsecondary Education Grants                          8,149,761      Special Education and Rehabilitative Services Grants    5,580,045      Other Grants                                            2,035,320      Interest Expense                                        1,036,332      Salaries and Administrative Expenses                      401,932      Contractual Program Expenses                              667,261      Bad Debt and Write-offs                                     2,919      Other Expenses, Net                                           559                                                             ----------           Total Expenses                                    30,287,006                                                             ---------- Net Operating Activity                                    $(29,355,915) 

Changes in Net Position

Net Position, Beginning of the Year                        $22,665,634  Net Operating Activity                                     (29,355,915) 

Plus (Minus) Non-Operating Changes

Appropriated Funds Received                                 33,274,634 Appropriated Funds Returned                                    875,040 Appropriations Transferred from Others                          34,218                                                            ----------- Net Position, End of Year                                   25,743,645 

NOTE: The accompanying notes are an integral part of these statements
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[Consolidated Statement of Financial Position]

[Consolidated Statement of Cash Flows]