February 15 Greater Philadel-phia Chamber of Commerceannounces its commitmentto double the number of employer-paid WorkReadysummer internships to1,000.

May 1 Training sessionsbegin for organizations contracted to operate summer programs; 446youth workers trained by beginning of July.

June 26 Greater PhiladelphiaChamber of Commercehosts press conference toannounce WorkReady internship goal reached:1,049 employer-paid slots,more than double the ’06number.

January 2 The City’s fourth E3 Center opens inLogan/Olney —operated by the Indochinese American Council and the Warren E. Smith Health Centers.

January 27 The School District launches its plan forsecondary education reform,which includes an ‘anchor’on dropout reduction basedon the work of Project U-Turn.

January 24 Largest Shadow-ing Day ever with 166 companies hosting 1,552 9th graders who spend timewith professionals at theirworksites to learn about career opportunities, what ittakes to succeed on the job,and the economic value ofeducation.

February 27 The PhiladelphiaDaily News releases a 12-page special report onyouth employment in theCity, highlighting WorkReadyand the E3 Centers.

February 6 Philadelphia CityCouncil holds hearings onPhiladelphia’s dropout crisis.

February

Dear Friends and Colleagues:

Each new year presents its own set ofunique challenges, opportunities and re-wards. The year 2007 was no exception.

This year’s annual report takes the formof a pictorial review – a timeline of PYN’sninth year, with highlights that include:

> The Greater Philadelphia Chamber ofCommerce’s embrace of WorkReadyPhiladelphia, and its successful campaign to double the number of employer-paid internships to at least 1,000;

> The alliance of organizations and constituencies from around the City todevelop new funding and ensure thatyouth internship opportunities were notlost as a result of the Commonwealth’snew minimum wage; and

> The continuing progress of Project U-Turn, which leveraged $10M in new funds, helped to establish 1,400new education program slots, and developed a new system for recon-necting out-of-school youth to educational options.

We extend our thanks and congratulationsto the dozens of dedicated partnersthroughout the City that helped to makethese accomplishments possible. Yourcommitment to young people inspires us,and we look forward to working with youon their behalf in the months and years to come.

Stacy Holland, Co-President and COO

Robert Schwartz, Chair, Board of Directors

Laura Shubilla, Co-President and CEO

“The time isalways rightto do what is right.”

—Martin Luther King, Jr.

Philadelphia Youth Network

Annual Report for the Year

“They say that time changes things, but you actually have to change them yourself.” —Andy Warhol

March 12 ‘Efforts to Outcomes’ data system expanded to collect information on participationand investment levels forpartners and employers.

MayJune 22 The City authorizes$1M to support WorkReadyPhiladelphia summer programs.

June 23 St. Joseph’s basket-ball coach Phil Martelli addresses WorkReady private sector interns duringone-day training symposiumdesigned to impart skills for successful workplace experiences.

April

April 13 Trained and sup-ported by PYN and the Children’s Commission, 26 youth organize a mayoralforum at the National Consti-tution Center attended bythree mayoral candidatesand 600 youth. June 4 Board of Directors

approves PYN’s first multi-year strategic plan – whichincludes a new vision that “All of Philadelphia’s youngpeople take their rightfulplaces as full and contribut-ing members of a world-class workforce for theregion.”

April 4 Representative Dwight Evans announces an $820,000 state grant to support WorkReady intern-ships and partially offset theadditional costs of the Commonwealth’s recently increased minimum wage.

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MarchMarch 5 PYN PresidentLaura Shubilla presents featured remarks at theMassachusetts Summit onImproving High SchoolGraduation Rates.

April 24 PYN receives majortwo-year grant from theWilliam Penn Foundation to continue to support the Project U-Turn campaign and the work of its manypartners.

January

March 8 American Youth Policy Forum convenes federal legislators and policy-makers to learn about Project U-Turn from SchoolDistrict CEO Paul Vallas, Collaborative leaders and researchers.

March 1 A fifth E3 Centeropens in Southwest—operated by Communities in Schools of Philadelphia. June

June 8 Youth applications for Summer WorkReady programs are due; 10,626youth complete the enroll-ment process.

June 28 ‘Walking across thestage’ for the first time are70 former dropouts and adjudicated youth recog-nized for achievements in education, citizenship, andemployment at first E3

Graduation, held at the Freedom Theater.

Board of Directors

David Brown, BrownPartners

Jeffrey Brown, Brown’s Super Stores, Inc. (Secretary)

Howard Cutler, Aetna

Pamela Crawley, Citizens Bank

Paul DiLorenzo, Casey Family Programs

Pamela Gallimore, Community College of Philadelphia (Vice Chair)

Elsa Perez, PFPC

Denise Ray, Philadelphia Family Court

Robert Schwartz, Esq., Juvenile Law Center (Chair)

Thomas Sheaffer, City of Philadelphia, Health & Opportunity (Treasurer)

Margie Tolen, Comcast

Deborah Zateeny, Zateeny Loftus LLP (Of Counsel)

As of June 30, 2008

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May 12 350 youth attend the “Make Yourself the Catalyst for Change” summitthrough the Youth Develop-ment Initiative, a place-based investment strategysupported by the WilliamPenn Foundation.

July 18 School District receives second of two U.S.Department of Labor grantstotaling $5.8 million to support new multiple path-ways options proposed through Project U-Turn.

August 10 SummerWorkReady programs end,having served 8,156 youthat 1,280 worksites through93 contracts.

September 5 Young Friendsof PYN is launched to support PYN’s missionthrough fundraising, eventsand networking.

October 8 PYN Training Lab opens and “Data Ambassadors” program established to supportPYN’s contracted providers.

July 2 WorkReady Philadel-phia 2007 summer pro-grams begin for more than8,000 young people.

August 9 Democratic MayoralNominee Michael Nutter addresses WorkReadyPhiladelphia concluding celebration and challengesPhiladelphia employers to double the number of unsubsidized workplace internships again in ‘08.

September 29 Young Leader-ship Connector Projectlaunched in partnership with LEADERSHIP Philadelphia.

October 31 PYN Youth Ambassadors co-facilitatetheir first presentation onyouth voice and leadership,at PA Service Academy Conference in Harrisburg, PA.

August

“Time is the coin of your life. It is the only coin you have, and only you can determine how it will be spent.” —Carl Sandburg

August 8 Teens who conductthe Youth Satisfaction Survey exceed goal ofreaching 30% of theWorkReady worksites.

2007 Funders

Aetna FoundationAllen Hilles Fund Bank of AmericaBarra FoundationBill & Melinda Gates Foundation*Brown’s Super Stores, Inc.Campbell Soup FoundationCarnegie Corporation of New York*Charles Stewart Mott Foundation*Citizens Bank FoundationCity of PhiladelphiaDolfinger-McMahon FoundationHerr Foods, Inc.Lincoln Financial FoundationNelson FoundationPennsylvania Commission on Crime and Delinquency

Pennsylvania Department of Labor and Industry

Pennsylvania Department of Public Welfare

Pennsylvania General AssemblyPhiladelphia City CouncilThe Philadelphia Coca-Cola Bottling Company

Philadelphia Department of Human Services

Philadelphia Education FundPhiladelphia FoundationPhiladelphia Housing AuthorityProvincial Foundation Prudential Community ResourcesRittenhouse Foundation Samuel S. Fels FundSchool District of PhiladelphiaSeybert Institution Sunoco Partners LLCU.S. CongressU.S. Department of LaborUnion Benevolent Association United Way of Southeastern PAWachovia FoundationWilliam Penn Foundation

* through the Youth Transition Funders Group

WorkReady Premier InternshipEmployers

Businesses that hired and paid foryouth internships at their worksitesin 2007

Abington Memorial HospitalACE American Insurance CompanyAcme Markets, Inc.AetnaAFSCME DC 33AFSCME Local 2187Albert Einstein Medical CenterAmerican Association for Cancer ResearchAqua AmericaBlank Rome

Brown’s Family ShopRitesCampus PhillyCancer Treatment Centers of AmericaCannon GraphicsThe Children’s Hospital of Philadelphia Citizens BankCohen Placitella & RothComcastCommerce BankCommunications Workers of AmericaCommunity Behavioral HealthCommunity College of Philadelphia Community CouncilConsumer Credit Counseling Service

of Delaware CountyDay & ZimmermannDrexel University, Institute for Women’s

Heath and LeadershipDrexel University, Office of ResearchEconomy League of Greater PhiladelphiaEducational Data SystemsElliott-LewisEpiscopal Community ServicesESM ProductionsFA DavisFox Chase Cancer CenterThe Franklin InstituteGreater Philadelphia Chamber of

CommerceGreater Philadelphia Tourism

Marketing CorporationIKON Office SolutionsIndependence Blue CrossJ.A. Reinhold Asset ManagementJEVS Human ServicesJewish Federation of Greater

PhiladelphiaKeystone Mercy Health PlanKPMGLaSalle UniversityLife Science Career AllianceLincoln Financial GroupMercy Hospital of PhiladelphiaMorgan Lewis & Bockius LLPNazareth HospitalNeatReceiptsPA Real Estate Investment TrustPBS Kids SproutPennoni AssociatesThe Pennsylvania Horticultural SocietyPepsi Bottling GroupPhiladelphia Business JournalPhiladelphia College of Osteopathic

MedicinePhiladelphia Convention & Visitor’s

BureauPhiladelphia Council AFL-CIOPhiladelphia Council for Community Advancement

Philadelphia Federation of TeachersThe Philadelphia FoundationPhiladelphia Industrial Development

Corporation

Philadelphia JT Board Unite HerePhiladelphia NewspapersPhiladelphia O.I.C., Inc.Philadelphia Safe and SoundThe Philadelphia TribunePhiladelphia Workforce Investment

BoardPhiladelphia Youth NetworkPNCReit Management & Research LLCSaint Joseph’s UniversitySaul EwingSchnader Harrison Segal & LewisSovereign BankStradley Ronon Stevens & YoungSunoco, Inc.SynterraTalson Solutions, LLCTemple UniversityThomas Jefferson University HospitalTierney CommunicationsTop of the TowerTowers PerrinUnion PackagingUnited Communities of Southeast

PhiladelphiaUniversity of PennsylvaniaWPVI-TVWyeth PharmaceuticalsYoh Services, LLC

WorkReady Internship Investors

Businesses and corporate foundationsthat sponsored youth internships innon-profit organizations or smallbusinesses in 2007

Aetna FoundationBank of AmericaCampbell Soup FoundationComcast SpectacorDeloitteGreater Philadelphia Chamber of

CommerceIndependence FoundationLeadership Philadelphia-Junto OneLincoln Financial Group FoundationMEDecisionMichael LillysPriceWaterhouseCoopersPrudential FoundationShire PharmaceuticalsUPSUnited Way of Southeastern Pennsylvania

WorkReady Seal-of-Approval Internship Employers

Businesses that hosted their own internship programs that metWorkReady’s criteria for excellencein 2007

The Academy of Natural SciencesAramarkBallard Spahr*Bank of AmericaCamp Dresser McKeeCatholic Social ServicesCity of Philadelphia, Fleet ManagementCommunities in Schools Urban Technology Project

Conrad O'Brien Gellman & Rohn, PC*Dechert*Delaware Valley Industrial Resource

CorporationDiversified SearchDuane Morris LLP*Free Library of PhiladelphiaGlaxoSmithKlineThe KeVen Parker CompanyKleinbard Bell & Brecker LLP*Lockheed Martin IS & SMEE ProductionsMercy HospitalMontgomery, McCracken, Walker

& Rhoads LLPOteri’s BakeryPepper Hamilton LLP*The Philadelphia Coca-Cola

Bottling CompanyPhiladelphia Water Department*Philadelphia ZooPA Real Estate Investment TrustReed Smith LLP*Schaff & Young*Social Security AdministrationSt. Christopher’s Hospital for ChildrenThomas Jefferson University*Thomas Jefferson Univ. Hospital*The Union League of PhiladelphiaU.S. Army Corp of EngineersUniversity of PennsylvaniaThe Wistar InstituteWolfBlock LLP*

*through the Bridges Program

Contracted Youth-Serving Organizations in 2007:

African American InterdenominationalMinistries, Inc.

African Cultural Alliance of North AmericaAllegheny West FoundationASPIRA, Inc. of PennsylvaniaBoys & Girls Clubs of PhiladelphiaThe Bridge, a subsidiary of the Philadelphia Health Management Corporation

Cambodian Association of GreaterPhiladelphia

Camden County Council on Economic Opportunity

Center for LiteracyCheyney University/Healthlink

International ProgramThe Children’s Hospital of PhiladelphiaCity of Philadelphia Department of

RecreationCommunities in Schools of Philadelphia, Inc.

Community Action Agency of Delaware County

Congreso de Latinos Unidos, Inc.District 1199C Training and

Upgrading FundDiversified Community ServicesEducationWorksFoundations, Inc. / KidZone PhiladelphiaFrankford Community Development

CorporationFree Library of PhiladelphiaGermantown SettlementGirard College Development FundGoodwill IndustriesGreater Philadelphia Federation of

SettlementsGreater Philadelphia Urban Affairs

Coalition

Horizon HouseIndochinese American CouncilIntercultural Family Services Inc.JEVS Human Services Korean Community Development

Services CenterLULAC National Educational

Services CenterManagement & Environmental Technologies, Inc.

Marriott FoundationMt. Airy USAMulticultural Youth ExchangeNew Foundations Charter SchoolNew Jersey Academy for Aquatic

SciencesNorris Square Civic AssociationNorth Light Community CenterOpportunities Industrialization Centers

of America, Inc.Open Borders ProjectPennsylvania School for the DeafPhiladelphia Academies, Inc.Philadelphia Housing AuthorityPhiladelphia Commercial Development

CorporationPhiladelphia FuturesPhiladelphia Mural Arts ProgramPlease Touch MuseumResources for Human DevelopmentRespond, Inc.Temple University To Our Children’s Future with HealthUnited Communities of Southeast

PhiladelphiaUniversity of PennsylvaniaVariety-The Children’s CharityYouthBuild Philadelphia Charter SchoolYouth Empowerment Services

November

September 9 PYN announcesnew leadership structure,with Stacy Holland andLaura Shubilla as co-presidents.

December 12 PYN providesstaffing and content supportfor the inaugural meeting ofthe Pennsylvania Council onthe Workforce of Tomorrow,the successor body to thestate Youth Council.

“It is never too late to becomewhat you might have been.”

—George Eliot

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info@pyninc.org

STATEMENT OF FINANCIAL POSITION / June 30, 2007

ASSETS

CURRENT ASSETSCash and Cash Equivalents $ 3,352,762Contracts Receivable 3,268,837Advances, Subcontractors 256,002Prepaid Expenses, Advances, and Deposits 168,293

Total Current Assets 7,045,894FIXED ASSETS, Net of Accumulated Depreciation of $521,995 267,879

Total Assets 7,313,773

LIABILITIES AND NET ASSETS

CURRENT AND OTHER LIABILITIESAccounts Payable, Contractors 2,429,579 Accounts Payable, Other 247,412 Accrued Expenses 257,335 Deferred Revenue 3,746,898 Total Liabilities 6,681,224

NET ASSETSUnrestricted 632,549Temporary Restricted Total Liabilities 632,549

Total Liabilities and Net Assets 7,313,773

FUNCTIONAL STATEMENT OF ACTIVITIES / July 1, 2006 to June 30, 2007

SUPPORT AND REVENUE

Contracts $ 20,202,794Contributions 131,812In-Kind Contributions 3,520Interest and Other Fees 319,329

Total Revenues 20,657,455

EXPENSES

Contracted Provider Services 10,157,941Youth Wages, Stipends, and Fringe Benefits 5,093,675Direct Services 4,108,669

Total Program Services 19,360,285

Management and General 1,282,345Fundraising 13,442

Total Expenses 20,656,072

Changes In Net Assets 1,383

Net Assets, Beginning of Year 631,166

Net Assets, End of Year 632,549

A complete copy of the Independent Auditors' Report and Financial Statements, dated June 30, 2007, is available upon request. Please e-mail

December 6 WorkReady intern request process becomes available on-line;employers can downloadforms and upload job descriptions atwww.workreadyphila.org.

November 17 Project U-TurnSymposium held at SchoolDistrict of Philadelphia Education Center, markingthe one-year anniversary ofthe U-Turn campaign launch,and reporting to the publicon progress made duringthe first year.

September

November 28 PhiladelphiaYouth Council recognizesTracee Hunt, Vice Presidentof the Philadelphia Coca-Cola Bottling Company, asshe steps down after twoyears as Council Chair.

December 4 PYN staff presentworkshops at national meet-ings of the National YouthEmployment Coalition andthe National Association ofWorkforce Development Professionals.

October

Lead

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Our Vision: All of Philadelphia’s young people

take their rightful places as full and contributing

members of a world-class workforce for the

region.

Our Mission: As a catalyst for collective action,

the Philadelphia Youth Network makes connec-

tions among individuals, organizations and

systems. We increase capacity and resources

in order to provide world-class preparation so

our City’s youth can thrive in a regional and

global economy.

Enterprise Leadership Team

Carol Austin, Vice President, Strategic Initiatives

Jenny Bogoni, Vice President, Partnerships

Harvey Chism*, Vice President, Educational Initiatives

Rebecca Fabiano*, Vice President, Capacity Building

Stacy Holland, Co-President and Chief Operations Officer

Anthony Marzolino*, Chief Financial Officer

Melissa Orner, Sr. Vice President, Communications andDevelopment

Michael Pompey*, Chief Information Officer

Laura Shubilla, Co-President and Chief Executive Officer

* also on Operations Leadership Team

Operations Leadership Team

Maryum Darby-Madison, Director, Program Design and Support

Chekemma Fulmore-Townsend, Director, PerformanceManagement

Stephanie Gambone, Director, School Support and Business Partnerships

Karen Howard, Director, Student Success Centers

C. Kemal Nance, Director, Student Leadership Initiatives

Derrick Perkins, Director, Provider Support

Joanne Sabasino, Sr. Budget Analyst

Nancy Santiago-Negrón, Director, Policy & Planning

Janine Wright, Director, E3 Initiatives

Staff List Current as of June 30, 2008

July 1 The state minimumwage increases from $6.25to $7.15.

November 1 After consultingwith staff from PYN and the School District ofPhiladelphia, New York becomes the first city toreplicate the Student SuccessCenter Model, with a centeropening at Brooklyn’s Bushwick High School.

December

Workforce Investment Act (WIA) - Formula

5,937,485

City of Philadelphia - Dept. of Human Services

5,612,867

Temporary Assistance for Needy Families (TANF)

3,336,621

William Penn Foundation

2,434,036

School District of Philadelphia

1,408,643

WIA - Youth Offender Grant

456,146

Fee-Based Revenues - Employer-Paid Internships

343,744

Youth Transition Funders Group

299,671

Youth Opportunity Grant

27,6678

Philadelphia Housing Authority

203,791

Corporations

107,344

PA Dept. of Labor and Industry (RCEP)

92,449

Foundations - Other

75,748

Other Revenue and Interest Income

72,232

Total Funding $ 20,657,455

REVENUE, BY FUNDING STREAM

July