2013-11-15T14:07:47-06:00 2012-12-31 861065772 DELOITTE TAX LLP 1750 TYSONS BLVD MCLEAN VA 221024219 990 2012-01-01 133240109 FINCA INTERNATIONAL INC FINC 2026821510 1101 14TH STREET NW 11TH FLOOR WASHINGTON DC 20005 DANE STEVEN MCGUIRE 2026821510 2013-11-15 1 YVETTE L WOODS P00364424 7032511000 2012 2016-02-25 16:41:14Z RUPERT W SCOFIELD 1101 14TH STREET NW 11TH FLOOR WASHINGTON DC 20005 43260083 0 X WWW.FINCA.ORG X 1984 NY FINANCIAL SERVICES TO THE WORLD'S LOWEST INCOME ENTREPRENEURS. FOR A FULL PICTURE, SEE SCHED O 15 13 149 70 62491 23580 25743712 18743053 27544456 11895482 5494178 4525702 3095260 8095846 61877606 43260083 0 0 0 0 16347889 18421833 78599 233160 3097701 27713815 28596425 44140303 47251418 17737303 -3991335 130491826 120656643 57871504 51117012 72620322 69539631 X FINCA'S MISSION IS TO PROVIDE FINANCIAL SERVICES TO THE WORLD'S LOWEST-INCOME ENTREPRENEURS SO THEY CAN CREATE JOBS, BUILD ASSETS, AND IMPROVE THEIR STANDARD OF LIVING. 0 0 36454703 0 19928837 MICROFINANCE LENDING: AS OF DECEMBER 31, 2012, FINCA PROVIDED MORE THAN 990,000 INDIVIDUALS ACROSS 21 COUNTRIES IN AFRICA, EURASIA, LATIN AMERICA, THE MIDDLE EAST, AND SOUTHERN ASIA WITH LOANS, SAVINGS, AND OTHER FINANCIAL SERVICES DESIGNED TO HELP THEM BUILD THEIR SMALL BUSINESSES AND IMPROVE THEIR OWN PROSPECTS AND THE LIVES OF THREE MILLION DEPENDENTS.SEE SCHEDULE O FOR MORE DETAILED INFORMATION. 36454703 1 1 0 0 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 1 1 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 1 1 0 1 X 46 0 1 149 1 1 1 1 AF AM AJ CG EC TI JO CA UK GT HA NU MI UG TZ MX ZA HO ES GG RS NL CJ KG OC 0 0 0 0 0 0 0 0 X 15 13 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AK AL AR CA CO CT DC DE FL GA HI IA ID IL IN KS KY LA MA MD ME MI MS MN MO MT NC ND NE NJ NH NM NY OH OK OR PA RI SC SD TN TX UT VA VT WA WI WV WY X X DANE STEVE MCGUIRE CFO 2026821510 1101 14TH STREET NW 11TH FLOOR WASHINGTON DC 20005 ROBERT W HATCH 10.00 X 0 0 0 JOHN K HATCH 10.00 X 35492 0 22940 RICHARD M WILLIAMSON 5.00 X 0 0 0 CARLOS CAMACHO SR 5.00 X 0 0 0 JOHN ELKINS 5.00 X 0 0 0 JO ANN FIELD 5.00 X 0 0 0 SHAWN HASSEL 5.00 X 0 0 0 AGRINA MUSSA 5.00 X 0 0 0 JAMES SEMAKADDE 5.00 X 0 0 0 DAVID E WEISMAN 5.00 X 0 0 0 RITA E SPILLMAN 5.00 X 0 0 0 SOLEDAD DELEON HURST 5.00 X 0 0 0 HAROLD D JASTRAM 5.00 X 0 0 0 PAUL LEFORT 5.00 X 0 0 0 RUPERT W SCOFIELD 50.00 X X 424578 0 103039 VOLKER RENNER 50.00 X 311444 0 50908 DONALD CRANE 50.00 X 268500 0 93677 DANE S MCGUIRE 50.00 X 306178 0 17113 SOLEDAD GOMPF 50.00 X 153937 0 132597 GWEN ANDREOTTI 50.00 X 166603 0 65512 BRAULIO OLIVEIRA 50.00 X 229753 0 11897 JEFFREY A FLOWERS 50.00 X 276024 0 26500 MICHAEL A GAMA-LOBO 50.00 X 281078 0 25597 YURIY SHULHAN 50.00 X 313248 0 32201 JAMES LEMKE 50.00 X 141398 0 13543 STEFAN QUECK 50.00 X 168231 0 19417 CHIKAKO KUNO 50.00 X 253327 0 26883 TIMOTHY CHILDRESS 50.00 X 193108 0 23046 SCOTT TINDALL 50.00 X 171358 0 19879 LEONARDO POLIT 50.00 X 178365 0 30347 ZARLASHT WARDAK 50.00 X 271198 0 5141 RONALD AIZER 50.00 X 192834 0 9747 PEDRO FABIANO 50.00 X 178205 0 18136 JANA D CHMELNIZKI 50.00 X 177465 0 25516 MARIA V VILELA 50.00 X 162882 0 26602 JOV O'BRIEN 50.00 X 150416 0 18519 SCOTT GRAHAM 50.00 X 124813 0 16641 EVRIS BEAVERS 50.00 X 107434 0 12988 5237869 0 848386 39 1 1 0 THE PRODUCTION ADVANTAGE INC 13873 PARK CENTER ROAD HERNDON VA 20171 PRINTING & MAILING 3307465 BDO USA LLP 7101 WISCONSIN AVE SUITE 800 BETHESDA MD 20814 ACCOUNTING 596659 NAMES IN THE NEWS 180 GRAND AVENUE SUITE 1545 OAKLAND CA 946123799 MARKETING 354174 GSQUARED SOLUTIONS LLC 340 OAKHURST LEAF DRIVE ALPHARETTA GA 30004 INFORMATION SERVICES 278516 MELING & ASSOCIATES 56 MERCHANTS ROW RUTLAND VT 05701 CONSULTING 244421 15 4384964 14358089 174709 18743053 INTEREST REV -BRANCHES 522298 5164185 5164185 MANAGEMENT FEES 900099 3913966 3913966 AFFIL LOAN PORT. REV. 900099 2463198 2463198 OTHER REVENUE 900099 354133 354133 11895482 4525702 4525702 8033355 8033355 MEXICO INSURANCE - UBI 524298 62491 62491 62491 43260083 19928837 62491 4525702 4181866 2037113 2103438 41315 11927938 9070323 2475438 382177 174979 118312 48576 8091 985834 779715 177702 28417 1151216 853800 267996 29420 155635 136532 19103 919948 720743 199205 233160 233160 4494252 2907195 971783 615274 64040 62487 1553 4289898 1932779 692886 1664233 1143897 565109 578788 3347477 2462410 795789 89278 306602 163112 140658 2832 2315584 2315584 158032 136715 21317 86934 21414 65520 LOAN CAPITAL 3121507 3121507 DONATION EXPENSE 2362018 2357018 5000 FOREIGN WITHHOLDING TAX 1246466 1246466 UBI TAX 10572 10572 4573563 5446369 -876310 3504 47251418 36454703 7699014 3097701 8319420 12679538 14957683 11853427 1537412 1825157 23295384 2452777 18235183 26971519 236242 979764 2776311 2566735 173415 209576 9013 9191 1250445 62257867 62340002 272761 219762 1062931 130491826 120656643 3704607 7027104 9819310 10826482 36403638 25599818 7943949 7663608 57871504 51117012 X 70249501 67607840 2370821 1931791 72620322 69539631 130491826 120656643 X -3991335 -2771023 3681667 X X 0 1 X 1 1 1 X 27994081 25535820 19228973 25743712 18743053 117245639 27994081 25535820 19228973 25743712 18743053 117245639 6002325 111243314 8236267 5153466 1389351 6116999 12559057 33455140 3681 38275 23580 65536 506342 2435260 2941602 153707917 94277663 0.72370 0.82460 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 290604 241346 49258 2485707 2325389 160318 209576 INVESTMENT IN PARTNERSHIP AND SUBS 62340002 C 62340002 DEFERRED DEFINED PENSION OBLIGATION 4854602 OTHER LIABILITIES 2809006 7663608 X DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: FINCA RECORDS UNRECOGNIZED TAX BENEFITS AS LIABILITIES IN ACCORDANCE WITH ASC 740 AND ADJUSTS THESE LIABILITIES WHEN ITS JUDGMENT CHANGES AS A RESULT OF THE EVALUATION OF NEW INFORMATION NOT PREVIOUSLY AVAILABLE. BECAUSE OF THE COMPLEXITY OF SOME OF THESE UNCERTAINTIES, THE ULTIMATE RESOLUTION MAY RESULT IN A PAYMENT THAT IS MATERIALLY DIFFERENT FROM OUR CURRENT ESTIMATE OF THE UNRECOGNIZED TAX BENEFIT LIABILITIES. THESE DIFFERENCES WILL BE REFLECTED AS INCREASES OR DECREASES TO INCOME TAX EXPENSE IN THE PERIOD IN WHICH NEW INFORMATION IS AVAILABLE. AT DECEMBER 31, 2012, FINCA'S UNRECOGNIZED TAX BENEFITS OF $941,935 RELATE TO AN EXPOSURE FROM THE TRANSFER OF A FOREIGN SUBSIDIARY AS PART OF THE 2011 REORGANIZATION. FINCA BELIEVES THAT IT IS NOT REASONABLY POSSIBLE THAT ANY UNRECOGNIZED TAX BENEFITS WILL SIGNIFICANTLY INCREASE OR DECREASE WITHIN 12 MONTHS OF THE REPORTING DATE. ESTIMATED INTEREST AND PENALTIES OF $463,183 ARE NOT INCLUDED IN THE INCOME TAX EXPENSE LINE ITEM, BUT ARE ACCRUED IN THE OTHER OPERATING EXPENSES UNDER GENERAL AND ADMINISTRATIVE EXPENSES IN THE CONSOLIDATED STATEMENT OF ACTIVITIES. $463,183 OF ACCRUED INTEREST AND PENALTIES ARE INCLUDED WITHIN THE RELATED ACCRUED LIABILITIES LINE IN THE CONSOLIDATED STATEMENT OF FINANCIAL POSITION. FINCA IS SUBJECT TO TAXATION IN THE UNITED STATES AND VARIOUS STATES AND FOREIGN JURISDICTIONS. AS OF DECEMBER 31, 2012, FINCA'S TAX YEARS OF 2005 AND 2007-2012 ARE SUBJECT TO EXAMINATION BY THE TAX AUTHORITIES. 1 CENTRAL AMERICA & THE CARIBBEAN 1 8 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 7046870 EUROPE (INCLUDING ICELAND & GREENLAND) 1 244 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 7200755 MIDDLE EAST AND NORTH AFRICA 1 1 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 234178 RUSSIA & THE NEWLY INDEPENDENT STATES 1 7 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 4674689 SOUTH ASIA 1 1 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 193865 SUB-SAHARAN AFRICA 1 13 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 3201202 NORTH AMERICA 1 2 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 861565 SOUTH AMERICA 1 1 PROGRAM SERVICES FINANCIAL SERVICES TO THE POOR 1419485 CENTRAL AMERICA & THE CARIBBEAN 1 0 INVESTMENTS INVESTMENT 1900642 8 277 1 0 9 277 24832609 1900642 26733251 1 0 1 0 0 0 X X X X X X 1 PUBLIC INTEREST COMMUNICATIONS 7700 LEESBURG PIKE SUITE 301 NORT FALLS CHURCH VA 22043 TELEMARKETING 0 16784 36798 -20014 LAMB CONSULTING INC C/O CRAIG LAMB 117 1/2 MARTINEZ ST SANTA FE NM 87501 FUNDRAISING CONSULTING 0 0 62432 -62432 KOSOVO ADDIS 1205 CARDINAL LANE CHERRY HILL NJ 08003 FUNDRAISING CONSULTING 0 0 42000 -42000 INTEGRATED DIRECT MARKETING 1250 CONNECTICUT AVENUE NW 200 WASHINGTON DC 20036 FUNDRAISING CONSULTING 0 0 87390 -87390 16784 228620 -211836 AK AL AR AZ CA CO CT DC FL GA HI IL IN KS KY LA MA MD ME MI MN MO MS NC ND NH NJ NM NY OH OK OR PA RI SC TN TX UT VA WA WI WV X X X 1 1 X X X X X 0 1 0 0 0 0 1 1 0 RUPERT W SCOFIELD 373786 0 50000 0 792 0 93256 0 9783 0 527617 0 0 0 VOLKER RENNER 281444 0 30000 0 0 0 35777 0 15131 0 362352 0 0 0 DONALD CRANE 245208 0 22500 0 792 0 85021 0 8656 0 362177 0 0 0 DANE S MCGUIRE 250386 0 55000 0 792 0 0 0 17113 0 323291 0 0 0 SOLEDAD GOMPF 150409 0 3012 0 516 0 108872 0 23725 0 286534 0 0 0 GWEN ANDREOTTI 158827 0 7500 0 276 0 47362 0 18150 0 232115 0 0 0 BRAULIO OLIVEIRA 204700 0 20000 0 5053 0 1470 0 10427 0 241650 0 0 0 JEFFREY A FLOWERS 176606 0 73666 0 25752 0 10589 0 15911 0 302524 0 0 0 MICHAEL A GAMA-LOBO 152243 0 90969 0 37866 0 9772 0 15825 0 306675 0 0 0 YURIY SHULHAN 219476 0 0 0 93772 0 13057 0 19144 0 345449 0 0 0 JAMES LEMKE 128846 0 11902 0 650 0 366 0 13177 0 154941 0 0 0 STEFAN QUECK 150727 0 17232 0 272 0 0 0 19417 0 187648 0 0 0 CHIKAKO KUNO 192801 0 60250 0 276 0 1949 0 24934 0 280210 0 0 0 TIMOTHY CHILDRESS 172832 0 20000 0 276 0 1724 0 21322 0 216154 0 0 0 SCOTT TINDALL 157842 0 13000 0 516 0 0 0 19879 0 191237 0 0 0 LEONARDO POLIT 167505 0 10000 0 860 0 12033 0 18314 0 208712 0 0 0 ZARLASHT WARDAK 241485 0 29601 0 112 0 0 0 5141 0 276339 0 0 0 RONALD AIZER 167558 0 25000 0 276 0 740 0 9007 0 202581 0 0 0 PEDRO FABIANO 153063 0 24669 0 473 0 1555 0 16581 0 196341 0 0 0 JANA D CHMELNIZKI 147408 0 0 0 30057 0 6706 0 18810 0 202981 0 0 0 MARIA V VILELA 155074 0 7700 0 108 0 11408 0 15194 0 189484 0 0 0 JOV O'BRIEN 104724 0 24128 0 21564 0 0 0 18519 0 168935 0 0 0 SCOTT GRAHAM 124683 0 0 0 130 0 8728 0 7913 0 141454 0 0 0 EVRIS BEAVERS 104236 0 0 0 3198 0 8010 0 4978 0 120422 0 0 0 PART I, LINE 1A AIR TRAVEL ON A SERVICE OTHER THAN COACH IS PERMITTED AND REIMBURSED ONLY WHEN AUTHORIZED BY FINCA INTERNATIONAL'S BOARD OF DIRECTORS. FINCA INTERNATIONAL ALSO MAINTAINS A DEFERRED COMPENSATION AGREEMENT FOR CERTAIN OFFICERS AND DIRECTORS, WHICH PROVIDES BENEFITS PAYABLE UPON RETIREMENT FROM FINCA INTERNATIONAL. FOR 2012, FINCA INTERNATIONAL PROVIDED A TAX GROSS-UP PAYMENT TO A PLAN PARTICIPANT TO ASSIST WITH TAX PAYMENTS WITH RESPECT TO THE INCLUSION OF THE PRESENT VALUE OF THE BENEFIT DUE FOR PAST SERVICES. ALSO, YURIY SHULHAN AND JANA CHMELNIZKI RECEIVED GROSS-UP PAYMENTS ON COMPENSATION. HOUSING ALLOWANCES ARE PROVIDED FOR HOUSING COSTS PAID TO OUR EXPATRIATES LIVING OUTSIDE OF THE UNITED STATES FOR WORK AT OUR AFFILIATE OFFICES. THE GROSS-UP PAYMENTS AND HOUSING ALLOWANCES ARE TREATED AS TAXABLE COMPENSATION, WHEREAS FIRST-CLASS TRAVEL IS NOT TAXABLE COMPENSATION. PART I, LINE 4B THE FOLLOWING PERSONS PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: GWEN ANDREOTTI ($34,318 COST), SOLEDAD GOMPF ($98,122 COST), RUPERT SCOFIELD ($73,249 COST), JOHN HATCH ($22,940 COST), VOLKER RENNER ($18,777 COST), AND DONALD CRANE ($73,939 COST). JOHN HATCH RECEIVED A PAYMENT OF $25,027 DURING 2012; NO OTHER LISTED PERSON RECEIVED PAYMENT DURING 2012. THE PLAN IS A DEFINED BENEFITS PENSION PLAN. PART I, LINE 6 FINCA INTERNATIONAL HAS AN ESTABLISHED INCENTIVE PLAN PROGRAM THAT PAYS AN ANNUAL BONUS THAT USES BOTH FINANCIAL AND NON-FINANCIAL CRITERIA. ONE OF THE FINANCIAL CRITERIA IS BASED UPON THE NET OPERATING MARGIN OF CERTAIN SUBSIDIARIES WHICH IS CALCULATED AS TOTAL INCOME FROM OPERATIONS LESS TOTAL EXPENSES FROM OPERATIONS FOR THE PERIOD. THE FOLLOWING INDIVIDUALS PARTICIPATE IN THE PROGRAM: JEFFREY FLOWERS, YURIY SHULHAN, VOLKER RENNER, MIKE GAMA-LOBO, ZARLASHT WARDAK, AND STEFAN QUECK. PART I, LINE 7 FINCA INTERNATIONAL HAS AN ESTABLISHED INCENTIVE PLAN PROGRAM THAT PAYS AN ANNUAL BONUS TO CERTAIN EMPLOYEES BASED ON FINANCIAL AND/OR NON-FINANCIAL CRITERIA (E.G., PERFORMANCE EVALUATION). JULIE R HOUSER FAMILY MEMBER - CEO 61683 EMPLOYMENT 0 X 68 174709 COST OR SELLING PRICE 0 0 0 1 METHOD FOR DETERMINING NUMBER OF CONTRIBUTORS: PART I, COLUMN (B): THE AMOUNT IN COLUMN (B) REFERS TO THE NUMBER OF CONTRIBUTIONS. THIRD PARTY USE: PART I, LINE 32B: FINCA USES CHARLES SCHWAB BROKERAGE SERVICES TO SELL DONATED SECURITIES. FORM 990, PART VI, SECTION A, LINE 2 THE CHAIRMAN OF THE BOARD, ROBERT W. HATCH, IS THE BROTHER OF THE FOUNDER, JOHN HATCH, WHO IS ALSO A DIRECTOR AND A RETIRED EMPLOYEE. ROBERT HATCH, GIVEN SIGNIFICANT MANAGEMENT EXPERIENCE, ASSISTED IN FOUNDING THE ORGANIZATION AND IN PROVIDING LEADERSHIP AS BOARD CHAIRMAN THROUGHOUT FINCA'S HISTORY. JOHN HATCH, RICHARD WILLIAMSON, HAROLD JASTRAM, AND RUPERT SCOFIELD ARE ALL MEMBERS OF THE BOARD OF DIRECTORS AND MINOR SHAREHOLDERS FOR CEREAL INGREDIENTS, INC. WHICH IS OWNED BY ROBERT HATCH, THE CHAIRMAN OF FINCA INTERNATIONAL'S BOARD OF DIRECTORS. RICHARD WILLIAMSON HAS A FINANCIAL TRANSACTION WITH CEREAL INGREDIENTS, INC. RICHARD WILLIAMSON AND ROBERT HATCH ARE ALSO BOTH DIRECTORS OF THE HEALTHY BACK STORE. FORM 990, PART VI, SECTION A, LINE 6 UNDER FINCA INTERNATIONAL'S CONSTITUENT DOCUMENTS, MEMBERS ARE THE FUNCTIONAL EQUIVALENT OF SHAREHOLDERS BUT HOLD NO ECONOMIC INTEREST. THEY FUNCTION AS STEWARDS OF THE CHARITABLE MISSION AND SERVE AS THE ULTIMATE GOVERNANCE AUTHORITY FOR THE ORGANIZATION. FINCA HAS 4 (FOUR) MEMBERS, EACH OF WHOM HAVE EQUAL VOTING RIGHTS AND DEVOTE CONSIDERABLE TIME AND ATTENTION TO ITS ACTIVITIES. MEMBERSHIPS IN FINCA ARE NOT SOLD AS FUNDRAISING MECHANISMS. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS, AS DESCRIBED ON LINE 6, ELECT THE GOVERNING BODY OF FINCA, WHICH IS FINCA INTERNATIONAL'S BOARD OF DIRECTORS. FORM 990, PART VI, SECTION A, LINE 7B ANY DECISIONS OF THE GOVERNING BODY, FINCA INTERNATIONAL'S BOARD OF DIRECTORS, ARE SUBJECT TO THE APPROVAL BY THE MEMBERS OF THE ORGANIZATION. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS PRESENTED TO THE 990 REVIEW TEAM WHICH COMPRISES THE MANAGEMENT TEAM, THE GLOBAL CONTROLLER, AND THE HEADQUARTERS CONTROLLER. THERE IS ALSO A REPRESENTATIVE OF THE COMPENSATION COMMITTEE PRESENT IN THE MANAGEMENT TEAM. THE MANAGEMENT TEAM REVIEWS THE DOCUMENT AND A MEETING IS SCHEDULED TO DISCUSS PENDING QUESTIONS WITH THE DIRECTOR OF TAX. THIS PROCESS INCLUDES REVIEWING AND GIVING FINAL APPROVAL OF ALL SECTIONS, SCHEDULES, CHECKLISTS, AND ALL DISCLOSURES ON THE RETURN. A SIGN-OFF OF THE FINAL DOCUMENT IS APPROVED BY ALL AT THE CLOSING REVIEW MEETING. FORM 990, PART VI, SECTION B, LINE 12C OFFICERS, DIRECTORS, AND KEY EMPLOYEES ARE REQUIRED TO DISCLOSE ANY CONFLICTS OF INTEREST ON AN ONGOING BASIS. CONFLICTS OF INTERESTS ARE PROHIBITED BY THE FINCA CODE OF CONDUCT AND PERSONNEL MANUAL, SUBJECT TO ANY EXCEPTIONS BASED ON A STANDARD OF FAIRNESS AND BEST INTERESTS OF THE COMPANY BY AN INDEPENDENT AUDIT COMMITTEE. CONFLICTS, INCLUDING RELATED PARTY TRANSACTIONS, ARE STRONGLY DISCOURAGED AND APPROVED, IF AT ALL, ON AN EXCEPTIONAL BASIS. THE PROCESS IS MONITORED THROUGH ACKNOWLEDGMENT OF THE POLICY PROHIBITING AND REQUIRING REPORTING OF ANY CONFLICTS, ALONG WITH INTERNAL AUDITS AND OTHER CONTROLS (INCLUDING THE CONTRACT REVIEW PROCESS). THE FINCA CODE OF CONDUCT, APPLICABLE TO ALL FINCA PERSONS GLOBALLY, PROVIDES A CONFIDENTIAL REPORTING MECHANISM ("HOTLINE") FOR REPORTING VIOLATIONS OF THE CODE, INCLUDING CONFLICTS OF INTERESTS. FORM 990, PART VI, LINE 13 : THE FINCA GLOBAL CODE OF CONDUCT CONTAINS A FORMAL CONFIDENTIAL REPORTING MECHANISM, OR "WHISTLEBLOWER" PROCESS, FOR REPORTING SUSPECTED VIOLATIONS OF THE CODE OR OF LAW. THE CODE OF CONDUCT PROVIDES A SET OF STANDARDS FOR ETHICAL BUSINESS CONDUCT FOR ALL FINCA PERSONS WORLDWIDE. EMPLOYEES HAVE BEEN TRAINED ON THE CODE AND ON THE REPORTING MECHANISM, INCLUDING REINFORCEMENT BY THE CHIEF EXECUTIVE OFFICER THAT THE CODE REPRESENTS FINCA STANDARDS. REPORTS MAY BE MADE TO LOCAL MANAGEMENT OR DIRECTLY THROUGH A CONFIDENTIAL REPORTING LINE TO THE GLOBAL VICE PRESIDENT AND GENERAL COUNSEL OR THE GLOBAL VICE PRESIDENT HUMAN RESOURCES. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING THE CEO'S COMPENSATION INCLUDED A REVIEW AND APPROVAL BY EXTERNAL PARTIES, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. 2011 WAS THE LAST YEAR FOR AN EXTERNAL REVIEW OF THE CEO'S SALARY; THE OTHER PROCESSES ARE PERFORMED ANNUALLY. FORM 990, PART VI, LINE 15B : THE PROCESS FOR DETERMINING ALL OFFICERS' COMPENSATION INCLUDED A REVIEW AND APPROVAL BY EXTERNAL PARTIES, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION. 2011 WAS THE LAST YEAR FOR AN EXTERNAL REVIEW OF OFFICERS' SALARIES; THE OTHER PROCESSES ARE PERFORMED ANNUALLY. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE GENERAL PUBLIC UPON REQUEST AND ON ITS OWN WEBSITE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: RESERVES -919,860. UNAMORTIZED PENSION PRIOR SERVICE COSTS -595,440. PARTNERSHIP K-1 INCOME 5,196,967. OVERSIGHT OF AUDIT: FORM 990, PART XII, LINE 2C THERE HAVE BEEN NO CHANGES DURING THE YEAR IN THE PROCESS FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS. FORM 990, PART XII, LINE 2A & 2B: FINCA INTERNATIONAL'S FINANCIAL STATEMENTS WERE AUDITED ON A CONSOLIDATED BASIS. ADDITIONAL INFORMATION ON PROGRAMS FORM 990, PART III, LINE 4A OVER THE COURSE OF 2012, OVER 9,800 FINCA EMPLOYEES DISBURSED NEARLY $1.2 BILLION IN LOANS AVERAGING $736 TO ITS CLIENTS, 60% OF WHOM ARE WOMEN. IN AFRICA, AVERAGE VILLAGE BANKING LOAN SIZES WERE JUST $228, AND IN LATIN AMERICA 83% OF FINCA CLIENTS WERE WOMEN. MORE THAN 310,000 INDIVIDUALS VOLUNTARILY SAVE ON A REGULAR BASIS, WITH TOTAL SAVINGS OF OVER $23 MILLION, EQUATING TO AN AVERAGE SAVINGS OF $73 PER CLIENT. FINCA MICRO-INSURANCE POLICIES PROTECTED MORE THAN HALF A MILLION FAMILIES AROUND THE WORLD IN 2012. AS OF DECEMBER 31, 2012, FINCA'S COUNTRIES OF OPERATION AND NUMBER OF MICRO LOAN RECIPIENTS ARE: AFRICA * DEMOCRATIC REPUBLIC OF CONGO: 84,538 BENEFICIARIES * MALAWI: 30,832 BENEFICIARIES * TANZANIA: 71,219 BENEFICIARIES * UGANDA: 54,788 BENEFICIARIES * ZAMBIA: 33,646 BENEFICIARIES LATIN AMERICA & CARIBBEAN * ECUADOR: 51,561 BENEFICIARIES * EL SALVADOR: 9,335 BENEFICIARIES * GUATEMALA: 39,188 BENEFICIARIES * HAITI: 2,445 BENEFICIARIES * HONDURAS: 11,083 BENEFICIARIES * MEXICO: 136,480 BENEFICIARIES * NICARAGUA: 27,561 BENEFICIARIES GREATER MIDDLE EAST * AFGHANISTAN: 19,305 BENEFICIARIES * JORDAN: 15,416 BENEFICIARIES EURASIA * ARMENIA: 52,450 BENEFICIARIES * AZERBAIJAN: 136,956 BENEFICIARIES * GEORGIA: 41,852 BENEFICIARIES * KOSOVO: 10,520 BENEFICIARIES * KYRGYZSTAN: 118,294 BENEFICIARIES * RUSSIA: 15,959 BENEFICIARIES * TAJIKISTAN: 26,961 BENEFICIARIES FINCA HAS EMBARKED ON A COMPREHENSIVE INITIATIVE TO MONITOR AND MANAGE SOCIAL PERFORMANCE THAT INCLUDES IDENTIFYING AND TRACKING SOCIAL PERFORMANCE INDICATORS ON AN ONGOING BASIS TO ENSURE THAT FINCA REMAINS FOCUSED ON CLIENT WELFARE AND PROTECTION, INCREASES TRANSPARENCY WITH PARTNERS, AND DEVELOPS NEW PRODUCTS THAT ARE TAILORED TO ENHANCE CLIENT WELL-BEING. THE ESTABLISHMENT OF A BOARD LEVEL SOCIAL PERFORMANCE AUDIT COMMITTEE SIGNIFIES THE ORGANIZATION'S UNWAVERING COMMITMENT TO IMPROVE THE LIVELIHOODS OF CLIENTS THROUGH THE PROVISION OF PRODUCTS AND SERVICES THAT CLIENTS SAY THEY NEED. BUILDING ON THE PIONEERING CLIENT ASSESSMENT TOOL THAT FINCA INTERNATIONAL USES TO MEASURE THE IMPACT OF OUR PRODUCTS AND SERVICES ON THE THE LIVES OF OUR CLIENTS AND THEIR FAMILIES, THE SOCIAL PERFORMANCE AUDIT COMMITTEE HAS CREATED A SPECIFIC, COMPREHENSIVE AND MEASURABLE DEFINITION OF FINCA INTERNATIONAL'S SOCIAL PERFORMANCE. TO BE SUCCESSFUL IN ITS COMMITMENT TO SOCIAL PERFORMANCE, FINCA INTERNATIONAL NEEDS TO SHOW THAT IT HAS: *EXPANDED ACCESS TO FINANCIAL SERVICES, PRIMARILY AMONG UNDERSERVED, LOW-INCOME PEOPLE AND COMMUNITIES; *INCREASED EMPLOYMENT AND INCOMES; *IMPROVED LIVING STANDARDS; AND, *EMPOWERED OUR CLIENTS AND HELPED THEM ACHIEVE THEIR PERSONAL ASPIRATIONS. 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