improving lives in developing countries through health worker training

Annual Report2005

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ContentsContents

President’s letter 3

Program delivery – the case for Tanzania 5

Board of Directors 7

Our stakeholders since inception 9

Edson Rwamugata, medical student 12

Audited financial statements 13

TOUCH Foundation, Inc.P.O. Box 1420New York, NY 10150

TOUCH Foundation, Inc. is a 501(c)(3) publiccharity organized under the laws of Connecticut.Contributions to Touch are tax-deductible to theextent allowed by applicable law. As required byfederal law, Touch retains discretion and controlover all contributions received in support of itsgrants to foreign charities.

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Since the founding of Touch, we have seen anumber of exciting developments – so many, in fact,that we decided to issue our first annual report thisMarch, covering our starting period from inception inAugust 2004 to the end of our fiscal year on June 30,2005. Later this year, we will report on our first fullfiscal year of operations ending June 30, 2006.

Since we’ve started, we’ve made substantive progressin our work at the Bugando University College ofHealth Sciences (BUCHS). We’ve scaled up thenumber of medical students at BUCHS from 10 to 85and are on track to educate 250 medical students eachyear. In addition to training medical students, we’vedeveloped plans to begin funding Allied HealthScience programs, which will educate assistantmedical officers, pharmacists, and lab technicians.Toward this end, we have constructed a dormitorythat will house 320 students on the BUCHS campus.

We’ve also taken steps to formulate a longer-termplan for moving the needle on healthcare, not only inTanzania but throughout the developing world. Weheld a symposium on human resources for health(HRH) at which key players from the WHO, theWorld Bank, the U.S. and Tanzanian governments,university deans, foundations and corporate executivesshared ideas about tackling the HRH crisis. InDecember 2005, we launched a McKinsey strategystudy to determine how to most effectively expandtraining infrastructure and thereby improve healthoutcomes in Tanzania.

Finally, we’ve spent much of the past year meetingnew friends and finding new supporters who share theTouch Foundation’s mission. In the process, we’vegrown from a staff of one to six full-time employees.

Why Touch, and why now?

The shortage of healthcare workers in thedeveloping world, and sub-Saharan Africa inparticular, has created a burden of disease that isunprecedented in human history. Tens of millions oflives are lost each year, in large part because of thegrave shortage of health professionals available toeducate for disease prevention and provide properdiagnosis and treatment. Our response to this crisiscould have profound implications for the peoplewithin these afflicted geographies – and its rippleeffects could touch every inhabitant of the globe forgenerations to come.

Our mission is to increase the supply of HRH indeveloping nations in order to prevent death and

President’s letter

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mission of awareness throughout the globe bycreating a sense of urgency around health issuesin Tanzania and the developing world.

Finally, Touch is planning to share theknowledge we develop on solving HRH issueswith the global health community. Our aim isto produce an HRH knowledge portal thathouses all leading global HRH data andinformation sources under one umbrella andthat, over time, enables the capture anddissemination of our learnings. In so doing, wehope to create a tool for frontline playersaddressing the HRH crisis in developingnations.

The power of the partnership approach

To accomplish these objectives, Touch hasadopted a public-private partnership approachof applying rigorous for-profit practices tononprofit outcomes. We’ve partnered withinstitutions that have provided invaluable inputand financial support. McKinsey & Companyhouses the Touch Foundation in its New Yorkheadquarters, providing strategic consultingservices and ongoing administrative assistance.The Citigroup Foundation, and Sandy Weillpersonally, have furnished sizable financialsupport to Touch. Weill-Cornell MedicalCollege has incorporated BUCHS as an affiliateuniversity. Stroock & Stroock & Lavan hasgiven significant pro bono legal services. Finally,Maryknoll Fathers and Brothers and Fr. Dr.Peter Le Jacq are responsible for mobilizing theoriginal corps of BUCHS donors, whose circleof friends now make up a large part of oursupport base.

In line with our management philosophy is acommitment to treating donors likeshareholders who have a stake in the success ofour Foundation. We all have a stake in seeingcountries like Tanzania build healthcare-trainingcapacity – it’s the only viable option for treatingthe sick and poor in the developing world.Indeed, it is the only long-term, sustainablesolution for saving lives.

With warmest regards,

Lowell Bryan

unnecessary suffering in these countries. TheTouch Foundation is committed to developingHRH capacity and capabilities through medicaltraining, productivity tools and metrics, healthmanagement techniques, and efficienthealthcare organization design in the short,medium, and long term.

Innovating to save lives

We are pursuing our mission along threeparallel paths. First, Touch is nurturingprograms that will increase the capacity andproductivity of HRH in Tanzania throughsupport of the BUCHS. We are developingBUCHS as a best-in-class medical traininginstitution to serve as a model for trainingHRH in developing nations. Touch iscollaborating with key stakeholders in Tanzaniato fill short-term gaps in the HRH system whiledeveloping new programs focused on improvingHRH productivity.

Second, the Touch Foundation is pursuing a

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The healthcare crisis facing Africa isemerging as perhaps the most significanthumanitarian issue of the 21st century. Infantmortality rates are 25% higher and average lifeexpectancy, at 44 years, is 25% shorter thanthe average of low income countries. Thespread of HIV/AIDS, which has infected over25 million people in sub-Saharan Africa andthreatens tens of millions more, isoverwhelming a healthcare system alreadyunder severe strain.

Clearly, underinvestment in all aspects ofhealthcare delivery is at the crux of this crisis.But equally important, the public-healthcommunity has begun to identify the shortageof HRH as the most significant bottleneck toany kind of meaningful response.

Skilled healthcare personnel have alwaysbeen scarce in sub-Saharan Africa, but theimbalance between supply and demand iswidening, driven by three primary factors:

The number of skilled healthcare personnelis failing to keep pace with population growth,resulting in increases in the already high ratioof healthcare personnel to population.

The healthcare needs of sub-SaharanAfricans are becoming more complex as aresult of the spread of HIV/AIDS andresurgent epidemics, increasing the need forprofessionals to diagnose and treat illnesses.

The productivity of healthcare personnel isdeteriorating as a result of poor pay, dangerousworking conditions, and a lack of equipment,supervision, and career prospects.

Correcting this growing imbalance has thepotential to expand the response to the crisisin African healthcare, positively affect theeconomic and social progress made in Africa,and help achieve the UN’s MillenniumDevelopment Goals (which include reducinginfant and maternal mortality by two-thirdsby 2015). Given the long lead times requiredto move the needle on the number of

Program delivery – the case for Tanzania

healthcare professionals, the time to act is now.

Tanzania’s healthcare crisis

Tanzania’s healthcare situation is among theworst in the world and is in dire need ofsupport. Driven by years of underinvestmentand the spread of communicable disease,Tanzania’s life expectancy – already one of thelowest in the world – has declined from 52years to 44 years over the past decade. Its infantand under-five mortality rates, which aresignificantly worse than peer averages, have alsobegun to deteriorate. And children under theage of 14 account for nearly 40% of deaths inTanzania. These are stark facts for a countryless ravaged by HIV/AIDS than other Africannations; 8% of Tanzanians are infected withHIV/AIDS compared with, for example, 38%of Botswanans.

While Tanzania has made improvements inthe overall number of healthcare professionalscompared with other sub-Saharan Africancountries, its mix of doctors is among thelowest in Africa. As a result, Tanzania has oneof the worst medical doctor-to-populationratios in the world: 4 doctors for every 100,000people, compared with 266 per 100,000 indeveloped countries.

Building HRH capacity

Despite the grim reality of Tanzania’shealthcare situation, it has many of theconditions needed for success in improvinghealthcare outcomes for its people. HelpingTanzania address its healthcare issues is crucial,both in terms of saving lives and serving as abeacon to others that real progress can be madeeven in nations as poor as Tanzania. Thepotential to have real impact on improvinghealth outcomes in Tanzania is enormous: in anation with 36 million people, closing just halfthe life expectancy gap (i.e., 7 to 8 years of life)

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between Tanzania and the world’s lowest-income countries would add 250 million to 300million person-years of life.

Tanzania is a peaceful, democratic nation thatenjoys a relatively stable political environment.Its government is committed to improving thewelfare of its people and has a history of forgingsuccessful partnerships, across government,religious, corporate and geographic lines toprovide the base conditions needed to attractoutside support for its efforts to improvehealthcare. Tanzania has a large pool ofqualified post-secondary candidates, owing toinvestments made in primary and secondaryeducation. Finally, Tanzania has been able toretain a large proportion of its locally traineddoctors (around 80%), in part by allowingdoctors to engage in private practice tosupplement their meager state incomes.

The Touch Foundation and BUCHS

The Touch Foundation has a uniqueopportunity to help transform healthcaredelivery capacity within Tanzania and generate amodel for training healthcare workersthroughout the developing world by investing inBUCHS. Located in the Mwanza district ofTanzania, BUCHS is situated inside theBugando Medical Center, which is one of fournational tertiary care centers and serves as theonly referral hospital for approximately 12million people in the country (one third ofTanzania’s population).

BUCHS began operating three years ago withten students. Through Touch’s support,BUCHS is now training 85 first, second andthird-year medical students. Its first graduationof medical officers will take place in 2008. By2009 the university will be up to capacity,educating 250 medical students annually in acountry that has a total of 1,571 doctors (822MDs and 749 AMOs, as at the last census in2002). At the same time, the Touch Foundationis planning to help BUCHS incorporate theAllied Health Sciences program, now runthrough Bugando Medical Center, into itstraining curriculum. In the near-term, BUCHSplans to educate hundreds of students in theallied health sciences, e.g., assistant medicalofficers, lab technicians and radiographers.

These workers often bear the brunt ofhealthcare delivery in Tanzania, and the shorterlead times required will enable BUCHS to fillpriority gaps in Tanzania’s healthcare systemwhile also building longer-term structuralcapacity with MDs.

Helping BUCHS is its status as an affiliateuniversity of Weill Cornell Medical College.Weill Cornell will be funding two 1-yearfellowships for its residents that will likely entailclinical instruction and care in the areas ofpediatrics and infectious disease in Mwanza. Inaddition, Weill Cornell has begun working withBUCHS to integrate its computerized tools andproblem-based learning programs into theBUCHS curriculum. BUCHS also has thepotential to develop a “localized” curriculum,including specializations (e.g., HIV/AIDS,prenatal health, newborn-to-3-year-old health)that are most relevant in developing countriesand specifically Tanzania.

Building solutions

In addition to curriculum innovation, Touchis committed to finding solutions for the highstartup costs associated with building theclassrooms, dorms, library, and lab space needed.Touch is exploring low-cost innovativeconstruction materials and techniques forproviding the infrastructure that BUCHS, andother universities, will need to grow andflourish. We are also exploring new ways toincrease training capacity, upgrade healthcareworker skills, and improve productivity inTanzania, e.g., through continuing educationand curriculum changes and by improvingdistribution and staffing levels in rural areas.

By creating a best-in-class model forhealthcare training at BUCHS, our longer-termvision is to facilitate the education of thousandsof healthcare workers each year while alsodeveloping healthcare management systems andforming partnerships throughout Tanzania andthe developing world. The goal of increasing lifeexpectancy and improving health services formillions may seem daunting – but it is far fromimpossible. One doctor in Tanzania may well beable to administer over 150,000 treatments inthe course of a career. A single university couldhelp heal an entire nation.

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Board of Directors

Robert A. Jeffe, Chairman

Lowell L. Bryan, PresidentLowell Bryan is a director of McKinsey &

Company, where he serves major clients on a widerange of issues related to corporate strategy andorganization.

He has spoken and written extensively –particularly on topics related to strategy,organization, and financial services – for the past30 years. He is currently co-authoring a book onmanaging companies in the 21st century, a subjectthat reflects more than a decade’s worth ofresearch into the forces at work in the globaleconomy and their implications for corporations.His most recent book emerging from this researchwas Race for the World: Strategies to Build a GreatGlobal Firm, published by the Harvard BusinessPress in 1999.

Lowell has been the principal author of fouradditional books, including Market Unbound andBreaking Up the Bank. He has been a frequentcontributor to the Wall Street Journal editorialpage and has published articles in numerousperiodicals, including the Harvard BusinessReview and the McKinsey Quarterly.

Lowell earned a B.A. from Davidson College in1968 and an M.B.A., with distinction, from theHarvard Business School in 1970. Prior to joiningMcKinsey & Co. in 1975, he worked for the StateStreet Bank of Boston. He is a trustee of DavidsonCollege and just completed a term on the VisitingCommittee for Harvard Business School.

Robert A. Jeffe, ChairmanBob Jeffe joined Deutsche Bank in November

2004 as Chairman of the Corporate AdvisoryGroup in the Americas. He is also responsible forLarge Cap company coverage and is a member ofthe Mergers and Acquisitions OperatingCommittee. He came to Deutsche Bank afterspending three years as Senior Vice President forCorporate Business Development at GE.

Prior to joining GE, Bob was an investmentbanker for 28 years. For over twenty years he wasat Morgan Stanley, where he was ManagingDirector and served as Co-Head of the CorporateFinance Department, Head of the Global NaturalResources Group, and a member of theInvestment Banking Management Committee. Hewas also a Managing Director at Credit SuisseFirst Boston for six years and at Smith Barney Inc.(now part of Citigroup) for two years. At bothfirms, he was Head of Global Energy and Natural

Resources and a member of the InvestmentBanking Management Committee and GlobalLeadership Group.

Bob earned an MBA with honors from theStanford University Graduate School of Businessand a bachelor’s degree summa cum laude ineconomics from Dartmouth College, where hewas also elected to Phi Beta Kappa. He resides inGreenwich, Connecticut, with his wife Elizabeth,and has two grown children. He is also a memberof the advisory boards for the Stanford UniversityGraduate School of Business and MaryknollFathers and Brothers.

David M. Kirby, TreasurerDavid Kirby is the founder and Managing

Director of Kirby Capital Advisors, an alternativeinvestments advisory and placement agency firmestablished in 1994 that specializes in advising onand raising institutional capital for privatepartnerships. He has over 16 years of directinvestment industry experience, both as a plansponsor and as a placement agent.

David has led and completed fund raisingassignments for buyout, mezzanine, venturecapital, real estate and fund-of-funds partnerships(as well as placing secondary interests in suchpartnerships) for general partners located in theU.S., Europe, Asia and Latin America. He haspersonally raised in excess of U.S.$3.1 billion-equivalent from more than 100 separateinstitutional investors located in North America,Europe, the Middle East and Asia. He alsoprovides strategic consulting services to firmsregarding future fund raisings, due diligence andformation of new partnerships.

Prior to establishing Kirby Capital Advisors, hewas for five years the Chief Investment Officer ofthe Philip Morris (now Altria) pension plans,which initiated its alternative investmentsprogram during his tenure. He is a graduate of theGeorgia Institute of Technology and has an MBAfrom Harvard Business School.

Kevin J. CurninKevin Curnin is Special Counsel and Director

for Stroock & Stroock & Lavan’s Public ServiceProject. He is responsible for the overallmanagement of the program, including advisingand assisting associates and partners with their probono litigation and transactional work, and carries

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his own pro bono caseload in addition to handlingcommercial cases. During his tenure, the PublicService Project has won numerous awards fromcity, state, educational, and nonprofitorganizations.

Prior to his March 2001 appointment as theProject’s first Attorney Director, Kevin spent morethan five years handling a wide range ofcommercial litigation matters for Stroock. Hisareas of expertise include insurance, banking,securities, and arbitration.

Before joining Stroock, he clerked for the Hon.Loretta A. Preska, USDJ for the Southern Districtof New York, and served as a summer law clerk forthe Hon. John F. Keenan, also of the SDNY. Hehas also worked as a teacher and a journalist.

Louis F. Le JacqLou Le Jacq is the founder of Le Jacq

Publishing (now LeJacq Ltd.), a medicalpublishing company whose journals include TheAmerican Heart Hospital Journal, The AmericanJournal of Geriatric Cardiology, Congestive HeartFailure, Journal of the Cardiometabolic Syndrome,The Journal of Clinical Hypertension, PreventiveCardiology, Progress in Cardiovascular Nursing,SKINmed, and numerous other journals andmedical textbooks.

From 1954 until 1979, Lou served as a GroupPublisher, Associate Publisher and MarketingDirector at Dun & Bradstreet in the MedicalJournal and Industrial Journal Divisions. He beganhis publishing career at the Daily News in 1946while still in high school at Power Memorial inNew York City.

Lou holds a BS from New York University andserved as a Lieutenant in the US Army from 1952-1954. He is an Honorary Fellow at the AmericanCollege of Cardiology and the Association ofCardiovascular and Pulmonary Rehabilitation. Heis Director of the American Irish HistoricalSociety and the International Center for Healthand Cooperation, and is a member of the Societyof Geriatric Cardiology and a founding member ofthe Heart Failure Society of America and thePreventive Cardiology Society of America.

Lou has been married to his wife Kathleen since1952. They have five children and eightgrandchildren, and their commitment tohealthcare in Tanzania dates back to their firstfamily visit to Tanzania and Bugando Hospital in1990.

Vikram MalhotraVik Malhotra is a director of McKinsey &

Company, where he has served major financialinstitutions focused on life insurance, wholesalebanking, asset management, private banking, andretail banking. Vik currently leads the NortheastOffice, which encompasses the New York, Boston,and Stamford offices, and is a member ofMcKinsey’s Shareholders Council (Board ofDirectors) and Director Review Committee.

During his tenure at McKinsey, Vik has ledMcKinsey’s Financial Institutions, Life Insurance,and Personal Financial Services practices, and hasco-led the Emerging Markets Financial InstitutionsPractice. His consulting experience covers a widerange within the financial industry, includingcorporate strategy, business unit strategy, growthstrategies, organizational design, operationalimprovement, and business process offshoring.

Before joining McKinsey, Vik graduated fromthe Wharton School of the University ofPennsylvania. Prior to his MBA he worked at theaccounting firm of Ernst & Whinney in London,and received his undergraduate degree ineconomics from the London School of Economics.

Charles V. RaymondChip Raymond is Managing Director of the

Strategic Wealth Advisory for the Global WealthManagement Group, which provides advisoryservices – including philanthropic, family, art, andmulti-dwelling and farm advisory – to ultra-high-net-worth clients. He was President of CitigroupFoundation from 1999 to 2005, prior to which hewas President of the Travelers Foundation. Whileat Travelers, he also served as Chief AdministrativeOfficer for the Law Departments and VicePresident for Training and Operations.

Before joining Travelers Group, Chip held avariety of positions, including Commissioner ofthe NYC Department of Homeless Services,Deputy Commissioner of the NYC Departmentof Housing Preservation and Development, andManaging Director of the New York City Ballet.

He received a Bachelor of Arts degree from theMaxwell School at Syracuse University andattended graduate school at Syracuse Universityand New York University. In addition to serving asa board member for Touch, he is also on the Boardof Directors of the Bowery Residents’ Committee,The After School Corporation, the MeaningfulAssets Fund, and the Civic Capital Corporation.

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Our stakeholders since inception

$1,000,000 and aboveRobert & Elizabeth JeffeCitigroup FoundationLowell L. Bryan

$250,000 to $999,999Louis & Kathleen Le JacqMcKinsey & CompanyJoan & Sanford I. Weill

$100,000 to $249,999Stroock & Stroock & Lavan LLP

$25,000 to $99,999Daniel & Maureen CahillCitigroup Inc.Adolf & Josephine DiBiasioJuan & Lorena FerraraAndrew FisherSarita Kenedy East FoundationRichard M. & Elizabeth S. Cashin Family FundGeneral Atlantic LLC.Chris & Robert KleinertSarah Lutz & John van RensPaul & Katherine WatsonLynne Wheat

$10,000 to $24,999Christian & Amanda BriggsJohn & Barbara Burns, Jr.Catholic Foreign Mission SocietyRichard ComeauKevin & Dee ConwayDennis & Eileen DenihanDeutsche BankThe Fifth Child FoundationThe Winifred & William O’Reilly FoundationMr. & Mrs. Rolando Gonzalez-BunsterSarah & Tony HowellDavid & Rita KirbyJeffrey & Jane LightcapVikram MalhotraMeadWestvacoBruce & Elizabeth MillerRobert Rosiello & Barbara MullinRobert & Kate NiehausMary PedersenThomas PeterffySalim RamjiJack StephensonWeill, Gotshall & Manges LLPCarl A. Tietjen & Frances Tietjen Wiener

$5,000 to $9,999AnonymousDominic BartonKevin BrineClare ByrneRoger Vincent ColemanTerrence & Maura ConnollyBarbara CookD. Ronald DanielFrancis & Anne DarcyJohn & Nancy DonnellyWilliam & Cathleen EllsworthFinancial Sec. Assurance, Inc.The Charles A Mastronardi FoundationElizabeth & Frank Ingrassia FoundationJeremy Bulow & Rhona Mahony Philanthropic

FundJanet GraceJeanne Hardy-SloanWilliam & Anne Harrison, Jr.John & Maureen KenlonNorthern TrustCraig OverlanderRobert & Karen PorterEmily & Philip RestifoCharles & Diana RevsonRichard & Ellen RichmanThe John H. and Dorothy M. Scully TrustFrancis Coughlin, Jr. & Ellen Waznik

$1,000 to $4,999Zack AlcyoneJurek & Stephanie AntoszewskiJonathan & Jessika AuerbachKaren AylwardSusan & Jim AzzaritoTom and Michelle BlairMartin BradySarah BriggsRuth BroderickAnthony CalendaChelsea ClintonAdam Cioth & Beth CobertKevin & Mary ConnollyJames & Delores ConwayRaymond & Carol CookLaura CorbKevin DannToos DaruvalaRobert & Lisa DaviesJames & Anne DeNautDonald & Deirdre DenihanMichael & Doris DenihanKenneth Deregt

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Louis Dicerbo IIThomas DodgeJudy DonovanMichael & Hanne DonovanEmma DornRichard & Katherine DragoChristine EdwardsAndrew & Pamela FarleyWilliam & Mary Beth FesslerMarisa Lago & Ronald FiniwThe Healey Family FoundationThe Husking FoundationThe Parsons Family FoundationJane FraserMichael & Dorothy FreeburgThomas & Dolores GahanWayne & Valerie GattinellaGeraldine GenoveseAnita GilbertJohn & Patricia GlynnGary & Nancy GoodenoughPeter & Beth GreeneDonald GrossAndre & Hillary HarocheBrian & Laura HullJames & Mary JudgeMartha JeffreyBrian & Ann JenningsPaul & Sonia JonesClaudia JoyceJoann & Art KalakaLeo & Katherine KarlBrian KellyJohn & Kathleen KellyRobert KligermanRoger & Susan KlineJohn & Deborah Ann KucharczykStephen LackeyMadeline LacovaraThomas Carroll & Judith LavelleRev. Dr. Peter Le JacqPeter & Diane LeverichJames & Paula LiangJim & Cricket LockhartLarry & Victoria LuntLionel & Catherine MaillouxHerbert & Lori McCooeyMary McDermottAsheet MehtaLenny MendoncaTimothy & Theresa MillerTom & Jackie NastosColleen O’HoraPatrick & Sandra O’NeillMichael & Julia PapaThe Pavlovich FamilyLester Petracca

Nicholas PetragliaBarnet & Sharon PhillipsHarrison & Margaret PierceLeslie & Eileen Quick, IIIR. Patrick & Marjorie QuinnCharles & Jan RaymondJohn Grimes & Laura RutledgeEdward & Joanne ShapoffJohn & Pamela ShillingJohn Gardell & Vera Silvestro-GardellVictoria & Spyrous SkourasMary & Dana StreepThomas & Sharon TelesCharles & Geraldine Trunz, IIIRobert & Ruth Anne VagtDiodato VillamenaKevin & Donna WangHoward & Anne WardBarraud & Lynn WatsonSeth & Sheila WaughOded WeissNicholas Prouty & Valantina WhitlockVeronica WhitlockDonald & Patricia WiesenFred & Abbie WymanMichael & Crissy Zimmerman

$500 to $999Charles AyssehDonald Bendernagel & Sally BrazilDeborah BryanLawrence & Jeanne CerielloDaniel ChaoGustave ChapporyMarilyn Chinitz-PozziAlexandre Martinez ColillasFrank & Mary CollinsRonald & Suzanne ConnorsChristian & Jeanne CorinCecilie CrugerGail CunninghamKevin & Annemarie CurninRyan DaviesGlenn & Virginia DesimoneBrian DineenMr. & Mrs. Richard DonskyJames & Lynn DowdTheodore & Marea Ann DumbauldMary FeloneyEdgar FitzsimmonsMichelle ForrestThe Nickle FoundationThe Peter and Caroline Striano FoundationThe Simmons Family FoundationThe Purchase FundDominick GadaletaJohn Genovese

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Louise & Malcolm GoodridgeFrances GormleyMargaret GraceJohn & Antonina GrazioliKevin & Mary Ellen GrimmRobert Kane & Linda HaaseThomas & Laura HanleyScott & Alissa HartmanEdward & Angela HendersonScott HerrickAnita Fouilhoux HoustonChris HusseyRajive JohriJames KaufmanSomesh KhannaAnn Marie KinbergWilliam KingKathleen KnightElizabeth KontulisBrett & Mark KristoffThomas LeddyEleanor LorigThomas & Janice LuddyGeorge & Kathleen MalhameManhasset High SchoolMark ManleyRobert MarksPaula & Andrew MartinSamarjit MarwahaDavid MauThomas & Patricia McGrathKevin McLaughlinThomas & Rosemary MulliganFrank NotoKeith & Kim OverlanderJohn & Laura PapaMr. & Mrs. Carl PateJoanne PearsonPercy & Ali Pine, IVPhilip PopeElizabeth & John ProcaccinoEdmund & Anne Marie ResorLaura RooseveltFurio & Lisa SavoneDavid SchoemanRon SegalSpencer SeguraNadine SeltzerNicholas & Claire SotellSt. John’s Episcopal ChurchRowan & Julie TaylorJohn & Susan ThompsonTimothy & Kathleen ThorntonRichard UngChristina VanderlipCynthia VanneckLeigh WeissAlan & Frances Wiener ©

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Edson Rwamugata, medical student

Third year, Bugando UniversityCollege of Health Sciences

Q: Tell me a little bit about yourself.A: I’m 26 years old. I come from the Kigara

region in the Lake Victoria zone. I havetwo younger brothers and five youngersisters. I grew up in a simple village wheremy father is a teacher and my mother is ahousewife.

Q: Will you be the first in your family tobecome a doctor?

A: Not only am I going to be the first doctorin my family but I am also the first in myfamily to attend university.

Q: What made you want to become a doctor?A: I’ve wanted to be a doctor since I was

very young. It’s something that comesfrom my heart. I remember going to thehospital when I was a child and seeingmany people waiting to be treated by adoctor who never came. I was sick andvery scared, and at that moment I said tomyself, “Why shouldn’t I be among thesevery important people? Why shouldn’t Ibe a doctor so that I can heal others andsave lives?” It was then that I decidedwhat my profession would be.

Q: Is there a medical specialty in which youare interested?

A: I’ve been planning on becoming agynecologist. Many of the healthcareproblems in this country are faced bywomen in the rural areas and many oftheir problems relate to gynecology. Ithink I can do the most good by focusingin this field.

Q: Do you know where you want to practicemedicine?

A: I’d like to return home to my village andpractice there.

Q: How many people live in your village?A: Not many people live in my village, but

in my district there are about 800,000people.

Q: Do you know how many doctors practicein your district?

A: There are very few. I know of only onemedical officer [doctor]. The rest areassistant medical officers but becausethere are so few doctors we often refer tothe assistant medical officers as doctors.

Q: Is there a subject you’ve learned thatinterests you most?

A: Of course, I enjoy obstetrics andgynecology, which is where I think myfocus will be. But I am really lookingforward to beginning my clinicalrotations next year and gaining exposureto all the departments, such as pediatricsurgery and internal medicine. I thinkI’ll reserve judgment on my favoritesubject until after I’ve completed all mycourses and graduated.

Q: Can you tell me what you think are someof the greatest healthcare challenges facingTanzanians?

A: Without question, the biggest problemwe face is not having enough doctors.Right now, we have something like 1doctor for every 25,000 people. It is notenough. Too many people do not getproper treatment. Too many people aredying because of it.

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Financial statements

Independent Auditors’ ReportTo the Board of Directors ofTOUCH Foundation, Inc.

We have audited the accompanying statement of financial position of TOUCH Foundation, Inc. as of June 30, 2005,and the related statements of activities and changes in net assets, functional expenses and cash flows for the periodAugust 5, 2004 (date of inception) to June 30, 2005. These financial statements are the responsibility of theFoundation’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit 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 financialstatements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accounting principles usedand significant estimates made by management, as well as evaluating the overall financial statement presentation. Webelieve that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial positionof TOUCH Foundation, Inc. as of June 30, 2005, and the changes in its net assets and its cash flows for the periodfrom August 5, 2004 (date of inception) to June 30, 2005, in conformity with accounting principles generally acceptedin the United States of America.

Anchin, Block & Anchin LLPNew YorkAugust 18, 2005

Statement of Financial PositionJune 30, 2005

AssetsCash and cash equivalents 487,192Pledges receivable, net 1,973,000Prepaid assets 1,123Property and equipment, net of accumulated depreciation of $1,309 5,737

Total assets 2,467,052

Liabilities and net assetsLiabilitiesGrants payable 400,000Accounts payable and accrued expenses 15,308 Total liabilities 415,308Net assetsUnrestricted 1,273,744Temporarily restricted 778,000 Total net assets 2,051,744

Total liabilities and net assets 2,467,052

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Statements of Activities and Changes in Net AssetsFor the period from August 5, 2004 (Date of Inception) to June 30, 2005

TemporarilyUnrestricted Restricted Total

Revenues and public supportContributions $2,433,129 $778,000 $3,211,129Donated services 302,114 -.- 302,114

2,735,243 778,000 3,513,243Special event income 79,850 -.- 79,850Direct benefit to donor (12,650) -.- (12,650) Net special event income 67,200 -.- 67,200Interest income 535 -.- 535 Total revenues and public support before net assets released from restrictions 2,802,978 778,000 3,580,978Net assets released from restrictions -.- -.- -.-

Total revenues and public support 2,802,978 778,000 3,580,978

ExpensesProgram services 1,111,242 -.- 1,111,242Supporting services: Management and general 218,955 -.- 218,955 Fundraising 199,037 -.- 199,037 Total supporting services 417,992 -.- 417,992

Total expenses 1,529,234 -.- 1,529,234

Changes in Net AssetsChange in net assets 1,273,744 778,000 2,051,744Net assets - August 5, 2004 (date of inception) -.- -.- -.-

Net assets - June 30, 2005 $1,273,744 $778,000 $2,051,744

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Statement of Functional ExpensesFor the period from August 5, 2004 (Date of Inception) to June 30, 2005

Supporting Services

ManagementProgram and TotalServices General Fundraising Subtotal Expenses

Grant to BUCHS $1,000,000 $-.- $-.- $-.- $1,000,000Depreciation 327 327 655 982 1,309Donated services 59,099 157,679 85,336 243,015 302,114Maintenance 105 105 210 315 420Miscellaneous expenses 1,380 1,380 2,759 4,139 5,519Office supplies and other misc. 59 59 400 459 518Printing and publications -.- 9,133 9,133 18,266 18,266Professional and consulting fees 27,792 27,792 55,585 83,377 111,169Salaries and related expenses 21,309 21,309 42,616 63,925 85,234Telephone and postage 224 224 449 673 897Travel 947 947 1,894 2,841 3,788

Total expenses $1,111,242 $218,955 $199,037 $417,992 $1,529,234

Statement of Cash FlowsFor the period from August 5, 2004 (Date of Inception) to June 30, 2005

Cash flows from operating activitiesChange in net assets $2,051,744Adjustments to reconcile change in net assets to net cashprovided by operating activities: Depreciation 1,309 Increase in: Pledges receivable (1,973,000) Prepaid expenses (1,123) Increase in: Grants payable 400,000 Accounts payable and accrued expenses 15,308

Net cash provided by operating activities 494,238

Cash flows from investing activitiesAcquisition of property and equipment (7,046)Net increase in cash and cash equivalents 487,192Cash and cash equivalents - beginning of period -.-

Cash and cash equivalents - end of period $487,192

Supplemental Disclosure of Cash Flow InformationNon-cash donated goods and services $302,114

For a complete copy of the audited financial statements, please write to the Director of Finance,Touch Foundation, Inc., P.O. Box 1420, New York, NY 10150.

Population per MD in the United States –400.

Population per MD in Tanzania –40,000.

Life expectancy in the United States –78.

Life expectancy in Tanzania –44.

www.touchfoundation.org

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