Compliance Statement

For Period 5/1/2008 – 4/30/2009

AYW (American YouthWorks) is committed to providing high-quality health insurance to its employees. TRS (Teachers Retirement System) requires that school districts complete a comparability study every other year, to determine whether the medical insurance that they offer their employees is comparable to the medical insurance offered to Texas State Employees, through ERS (Employee Retirement System). TRS created a complex methodology and criteria for comparing district medical benefits with those of State employees. AYW has made its best effort to evaluate the factors identified by the Texas Education Code as necessary for determining comparability. We meet the criteria for the individual measures, as follows:

1. The deductible amount for services provided inside and outside of provider networks – our deductibles met, and exceeded, those of TRS during the 2006 comparability period. TRS has subsequently reduced their deductibles, so that ours are now higher.

2. The coinsurance percentages for services provided inside and outside of the network – Plan 1 and Plan 2 have higher coinsurance percentages, but Plan 3 exceeds the required coinsurance percentages.

3. The maximum amount of coinsurance payments a covered person is required to pay – our individual out-of-pocket maximums exceed those of TRS.

4. The amount of co-payment for an office visit – our co-payments exceed those of TRS.

5. The schedule of benefits and scope of coverage – both our plans and those of TRS offer a broad schedule of benefits and scope of coverage.

6. The lifetime maximum benefit amount -- our plans offer a $5 million lifetime maximum, which we have been advised should be more than adequate. In-Network, TRS offers no maximum.

AYW is in compliance with all other requirements of Section 22.004 of the Education Code.