2015-08-04T14:01:42-05:00 2014-09-30 420714325 MCGLADREY LLP 1861 INTERNATIONAL DRIVE SUITE 400 MCLEAN VA 22102 990 2013-10-01 132702768 PACT INC PACT 2024665666 1828 L STREET NW NO 300 WASHINGTON DC 20036 ALIK HINCKSON EVP & CFO 2024665666 2015-08-04 1 YONG ZHANG CPA P01249785 7033366400 2013 2016-02-25 16:41:14Z ALIK HINCKSON 1828 L STREET NW NO 300 WASHINGTON DC 20036 109850371 0 X WWW.PACTWORLD.ORG X 1971 DC PACT ENABLES SYSTEMIC SOLUTIONS THAT ALLOW THOSE WHO ARE POOR AND MARGINALIZED TO EARN A DIGNIFIED LIVING, BE HEALTHY, AND TAKE PART IN THE BENEFITS THAT NATURE PROVIDES. PACT ACCOMPLISHES THIS BY STRENGTHENING LOCAL CAPACITY, FORGING EFFECTIVE GOVERNANCE SYSTEMS, AND TRANSFORMING MARKETS INTO A FORCE FOR DEVELOPMENT. 20 19 249 19 0 0 144211893 108869191 0 0 38363 89154 1376653 47572 145626909 109005917 89420360 56990115 0 0 35900740 33051663 0 0 2822811 20699820 19550475 146020920 109592253 -394011 -586336 47801532 25701784 44461320 22837434 3340212 2864350 X PACT ENABLES SYSTEMIC SOLUTIONS THAT ALLOW THOSE WHO ARE POOR AND MARGINALIZED TO EARN A DIGNIFIED LIVING, BE HEALTHY, AND TAKE PART IN THE BENEFITS THAT NATURE PROVIDES. PACT ACCOMPLISHES THIS BY STRENGTHENING LOCAL CAPACITY, FORGING EFFECTIVE GOVERNANCE SYSTEMS, AND TRANSFORMING MARKETS INTO A FORCE FOR DEVELOPMENT. 0 0 15201163 12649184 PACT YEKOKEB BERHAN PROGRAM FOR HIGHLY VULNERABLE CHILDREN:YEKOKEB BERHAN - "LIGHT EMANATING FROM THE STARS" IN AMHARIC - HAS TRANSFORMED THE LIVES OF HUNDREDS OF THOUSANDS OF PEOPLE IN ETHIOPIA. A COMPREHENSIVE, INTEGRATED PROGRAM, YEKOKEB BERHAN HELPS VULNERABLE CHILDREN IN AREAS MOST AFFECTED BY HIV AND AIDS BY SUPPORTING THEIR FAMILIES. IT IS ONE OF THE WORLD'S LARGEST PROGRAMS FOR VULNERABLE CHILDREN. MORE THAN 20,000 TRAINED VOLUNTEERS IDENTIFY AND ASSESS THE NEEDS OF HIGHLY VULNERABLE CHILDREN AND THEIR PARENTS OR GUARDIANS IN ACCORDANCE WITH ETHIOPIAN GOVERNMENT STANDARDS. THEY THEN WORK WITH LOCAL COMMUNITY COMMITTEES AND CIVIL SOCIETY ORGANIZATIONS TO DEVELOP AND IMPLEMENT CARE PLANS THAT EMPHASIZE ECONOMIC STRENGTHENING, BETTER PARENTING SKILLS AND LINKING FAMILIES TO LOCALLY AVAILABLE SERVICES TO BUILD RESILIENCY. CHILDREN RECEIVE HEALTH, NUTRITION, EDUCATION AND PSYCHOSOCIAL SERVICES WHILE PARENTS AND GUARDIANS RECEIVE TRAINING IN PARENTING SKILLS, GARDENING, MICRO-ENTERPRISE DEVELOPMENT AND EARLY CHILDHOOD DEVELOPMENT. OLDER CHILDREN ALSO RECEIVE VOCATIONAL SKILLS TRAINING. OVER TIME, PROGRAM HOUSEHOLDS CATEGORIZED AS "DESTITUTE" PROGRESS TO "STRUGGLING" AND THEN "GROWING." WITH A SYSTEMS-DEVELOPMENT APPROACH, YEKOKEB BERHAN HAS SUPPORTED COMMUNITY CHILD DEVELOPMENT CENTERS, TRAINED TEACHERS AND CHILD DEVELOPMENT STAFF, AND BUILT THE CAPACITY OF LOCAL SERVICE AND GOVERNMENT ORGANIZATIONS. 14226900 7031430 SHAE THOT: THE WAY FORWARDSHAE THOT USES AN INTEGRATED, HOLISTIC APPROACH TO ALLEVIATE POVERTY AND IMPROVE HEALTH IN VILLAGES IN MYANMAR BY TACKLING PROBLEMS IN A RANGE OF AREAS, INCLUDING MATERNAL AND CHILD HEALTH, LIVELIHOODS, FOOD SECURITY AND WATER, SANITATION AND HYGIENE. BY PARTNERING WITH LOCAL ORGANIZATIONS AND WORKING CLOSELY WITH COMMUNITIES, SHAE THOT IS BUILDING LOCAL CAPACITY FOR DECISION-MAKING AND LONG-TERM PLANNING, CREATING IMPACT THAT WILL LAST LONG BEYOND PACT'S PRESENCE. WITH ACTIVITIES IN NEARLY 2,000 VILLAGES, THE PROGRAM HAS TRAINED HUNDREDS OF THOUSANDS OF COMMUNITY MEMBERS AND HEALTH WORKERS IN CHILD HEALTH AND NUTRITION; PROVIDED MOBILE-CLINIC HEALTH AND FAMILY PLANNING SERVICES TO TENS OF THOUSANDS; INCREASED THE PERCENTAGE OF WOMEN WHO GIVE BIRTH WITH A SKILLED BIRTH ATTENDANT; PROVIDED WIDE-RANGING HYGIENE TRAINING TO STEM THE SPREAD OF DISEASE; IMPROVED POTABLE WATER ACCESS BY HELPING COMMUNITIES IDENTIFY AND PRIORITIZE THEIR WATER NEEDS AND BUILD AND MAINTAIN THE INFRASTRUCTURE; DISTRIBUTED TENS OF THOUSANDS OF HOUSEHOLD SAFE WATER SYSTEMS; PROVIDED FINANCIAL LITERACY TRAINING TO TENS OF THOUSANDS OF PEOPLE; HELPED TENS OF THOUSANDS ACCESS FAIR FINANCIAL SERVICES, NAMELY CREDIT THAT THEY HAVE USED TO INCREASE THEIR INCOME; AND EXPANDED THE USE OF IMPROVED AGRICULTURE PRACTICES. 6783041 3132560 PAMOJA TUWALEE: LET'S BRING CHILDREN UP TOGETHERA FIVE-YEAR EFFORT, PAMOJA TUWALEE HELPS VULNERABLE TANZANIAN CHILDREN AND THEIR FAMILIES MEASURABLY IMPROVE THEIR LIVES. PACT WORKS WITH LOCAL NONPROFITS AND GOVERNMENT AGENCIES THAT, IN TURN, WORK WITH FAMILIES AND CAREGIVERS IN THEIR COMMUNITIES TO MEET THE BASIC NEEDS OF AT-RISK CHILDREN. BECAUSE THE MAJORITY OF TANZANIA'S VULNERABLE CHILDREN LIVE IN FEMALE-HEADED HOUSEHOLDS, PACT EMPLOYS ITS AWARD-WINNING WORTH MODEL, IN WHICH SMALL GROUPS OF WOMEN SAVE TOGETHER AND MAKE LOW-INTEREST LOANS TO ONE ANOTHER THAT HELP THEM LAUNCH OR EXPAND SMALL BUSINESSES. WITH INCREASED INCOME, WOMEN ARE BETTER ABLE TO CARE FOR THEIR CHILDREN. PAMOJA TUWALEE HAS PROVIDED MORE THAN 100,000 CHILDREN WITH KEY SERVICES AND MORE THAN 40,000 HOUSEHOLDS WITH ECONOMIC STRENGTHENING; STRENGTHENED THE CAPACITY OF LOCAL AUTHORITIES AND COMMUNITY ORGANIZATIONS TO MANAGE SERVICES FOR VULNERABLE CHILDREN IN THEIR REGION; COLLABORATED WITH THE PUBLIC AND PRIVATE SECTOR TO INCREASE TECHNICAL, FINANCIAL AND MATERIAL SUPPORT FOR VULNERABLE CHILDREN; AND FORMED TRAINED VULNERABLE-CHILDREN COMMITTEES AND DISTRICT CHILD PROTECTION TEAMS. 69484055 34176941 OTHER PROGRAMS 69484055 34176941 105695159 1 1 0 0 0 0 0 0 0 0 1 0 0 1 1 1 1 1 0 1 1 1 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 69 0 1 249 1 0 1 CB CG KE LT MA MI MG MZ WA NP NI RW SF OD WZ TZ TH UP VM ZI BM 0 0 0 0 0 0 0 0 X 20 19 0 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X X ALIK HINCKSON EVP AND CFO 2024665666 1828 L STREET NW STE 300 WASHINGTON DC 20036 NANCY MURPHY CHAIR 5.00 1.00 X X 0 0 0 STEPHEN H OLESKY BOARD MEMBER 1.00 1.00 X 0 0 0 MARK MINELLI BOARD MEMBER 1.00 X 0 0 0 EVA THORNE BOARD MEMBER 1.00 1.00 X 0 0 0 LYNDON HAVILAND BOARD MEMBER 1.00 1.00 X 0 0 0 DELIA MARSHALL BOARD MEMBER 1.00 X 0 0 0 KEVIN P MITCHELL BOARD MEMBER 1.00 1.00 X 0 0 0 PAMELA ROUSSOS BOARD MEMBER 1.00 1.00 X 0 0 0 FRANK SIMS BOARD MEMBER 1.00 1.00 X 0 0 0 DAVID WILSON BOARD MEMBER 1.00 X 0 0 0 JAMES BERNARD BOARD MEMBER 1.00 X 0 0 0 JOHN GRIMES BOARD MEMBER 1.00 X 0 0 0 BERNHARD LIESE BOARD MEMBER 1.00 X 0 0 0 JOHN KOHLER BOARD MEMBER 1.00 1.00 X 0 0 0 DAVID SKAGGS BOARD MEMBER 1.00 X 0 0 0 SAMANTHA CAREY BOARD MEMBER 1.00 X 0 0 0 JENNIFER SILBERMAN BOARD MEMBER 1.00 X 0 0 0 TAMELA NOBOA BOARD MEMBER 1.00 X 0 0 0 MARK FITZGERALD BOARD MEMBER 1.00 X 0 0 0 MARK VISO BOARD MEMBER & CEO 40.00 2.00 X X 329984 0 47139 WILLIAM WARSHAUER COO/SECRETARY 40.00 1.00 X 265983 0 38128 LEONARD WILLIAMS CFO/TREASURER 40.00 2.00 X 250275 0 43409 GRAHAM WOOD VP - PROGRAM ADVANCEMENT 40.00 X 206544 0 32529 LESLIE MITCHELL COUNTRY REP - ETHIOPIA 40.00 X 257871 0 32250 ERICA TUBBS DEP COP 40.00 X 169226 0 27666 MATTHEW TIEDEMANN CHIEF OF PARTY 40.00 X 260246 0 32166 KURT MACLEOD VP PROGRAM DELIVERY 40.00 X 211547 0 33599 CASSANDRA CRAVENS DEP COP 40.00 X 196203 0 27392 SAMSON RADENY CHIEF OF PARTY 40.00 X 211666 0 23396 SUZANNE REXING VICE PRESIDENT, OPPORTUNITY DEVELOPMENT 40.00 X 213820 0 22752 JEANNIE M ZIELINSKY REGIONAL VP 40.00 X 169716 0 36812 JOHN WHALEN PRESIDENT, PACT INSTITUTE 1.00 40.00 X 224078 0 36797 SEAN MOOD SR. VP 40.00 X 199025 0 31980 TODD MALONE COUNTRY DIRECTOR- TANZANIA 40.00 X 253166 0 29203 AMANDA CHILDRESS COUNTRY DIRECTOR- MADAGASCAR 40.00 X 217608 0 24601 CASIMIR CHIPERE SR. TECHNICAL ADVISOR 40.00 X 210729 0 24892 STEPHANIE POSNER COUNTRY DIRECTOR-NAMIBIA 40.00 X 195693 0 32190 LUCY KIEKEBUSC-STEINETZ DEP COP/TECHNICAL ADV 40.00 X 190420 0 24645 4233800 0 601546 69 0 1 0 TRUE TANDEM LLC 11911 FREEDOM DRIVE SUITE 590 RESTON VA 20190 SOFTWARE DEVELOPMENT 197371 MCGLADREY LLP 5155 PAYSPHERE CIRCLE CHICAGO IL 60674 AUDIT/TAX SERVICES 147300 BERKELEY RESEARCH GROUP LLC 2200 POWELL STREET SUITE 1200 EMERYVILLE CA 94608 FINANCIAL MANAGEMENT 124205 3 108776759 92432 108869191 85523 85523 848085 844454 3631 3631 3631 OTHER INCOME 900099 47572 0 47572 47572 109005917 0 0 136726 593222 593222 56396893 56396893 3371328 2394771 687865 288692 20382905 14491291 4835852 1055762 972519 89211 764404 118904 7024365 6832829 -172326 363862 1300546 364224 934766 1556 165204 56954 107943 307 281095 118209 162886 2790828 1770015 699469 321344 140065 87514 40576 11975 945978 850003 90687 5288 1482304 1027070 446233 9001 3728721 2448212 1279030 1479 3777215 2591438 872344 313433 3651650 3204731 409670 37249 21487 369 21118 569111 569111 245237 47277 197960 VEHICLE EXPENSES 944722 941667 882 2173 EQUIPMENT REPAIRS & MAI 309271 221120 88091 60 DUES & SUBSCRIPTIONS 146761 31018 114906 837 ALLOCABLE MGT & GENERAL 0 10944719 -11236854 292135 350826 192402 159670 -1246 109592253 105695159 1074283 2822811 350 350 30070264 11062081 4087748 4028553 1060655 1058841 5464941 2006566 661023 3458375 3116741 3336554 8804751 2757030 47801532 25701784 6378733 6229179 38082587 14972969 0 1635286 44461320 22837434 X 3340212 2864350 3340212 2864350 47801532 25701784 -586336 110474 0 X X 0 1 X 1 1 1 X 200660943 190605522 180860770 144211893 108869191 825208319 200660943 190605522 180860770 144211893 108869191 825208319 25964168 799244151 39992 63335 31734 38363 85523 258947 330750 96111 17557 1376653 47572 1868643 827335909 0.96600 0.96340 X SCHEDULE A, PART II, LINE 10, EXPLANATION OF OTHER INCOME: OTHER INCOME - 2009 AMOUNT: $ 330,750. 2010 AMOUNT: $ 96,111. 2011 AMOUNT: $ 17,557. 2012 AMOUNT: $ 1,376,653. 2013 AMOUNT: $ 47,572. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1501527 317671 1183856 3963414 1688895 2274519 3458375 ADVANCES 2365008 SECURITY DEPOSITS 314165 DUE FROM RELATED PARTY 77857 2757030 DEFERRED RENT 1635286 1635286 X 109118442 110474 2051 112525 109005917 0 109005917 109594304 2051 2051 109592253 0 109592253 PART X, LINE 2: PACT, INC. IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER THE PROVISIONS OF SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. IN ADDITION, PACT, INC. QUALIFIES FOR CHARITABLE CONTRIBUTIONS DEDUCTION AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. INCOME WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. PACT HAD NO SIGNIFICANT NET UNRELATED BUSINESS INCOME FOR THE YEAR ENDED SEPTEMBER 30, 2014. MANAGEMENT EVALUATED PACT'S TAX POSITIONS AND CONCLUDED THAT PACT HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. GENERALLY, PACT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. 1 EAST ASIA AND THE PACIFIC 7 569 PROGRAM SERVICES DEMOCRACY & GOVERNANCE PROGRAMS 497638 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES HIV/AIDS AND HEALTH PROGRAMS 420362 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES LIVELIHOODS PROGRAMS 6685208 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES NATURAL RESOURCES MANAGEMENT PROGRAMS 1520743 EAST ASIA AND THE PACIFIC 0 0 GRANTMAKING 6902376 RUSSIA & THE NEWLY INDEPENDENT STATES 4 37 PROGRAM SERVICES NATURAL RESOURCES MANAGEMENT PROGRAMS 109610 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PROGRAM SERVICES DEMOCRACY & GOVERNANCE PROGRAMS 1916521 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PROGRAM SERVICES HIV/AIDS AND HEALTH PROGRAMS 1497887 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 GRANTMAKING 6441285 SOUTH AMERICA 2 17 PROGRAM SERVICES LIVELIHOODS PROGRAMS 706989 SOUTH AMERICA 0 0 GRANTMAKING 332326 SOUTH ASIA 4 43 PROGRAM SERVICES DEMOCRACY & GOVERNANCE PROGRAMS 1960921 SOUTH ASIA 0 0 GRANTMAKING 2575743 SUB-SAHARAN AFRICA 45 606 PROGRAM SERVICES DEMOCRACY & GOVERNANCE PROGRAMS 8145305 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES EDUCATION PROGRAMS 3761739 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES HIV/AIDS AND HEALTH PROGRAMS 16321792 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES E038380 - 07/20/15 08:50AM WORKSHEET SCHEDULE F 1260897 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES NATURAL RESOURCES MANAGEMENT PROGRAMS 545447 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES PEACEBUILDING PROGRAMS 1859671 SUB-SAHARAN AFRICA 0 0 GRANTMAKING 40145163 11 606 51 666 62 1272 19550345 84057278 103607623 EAST ASIA AND THE PACIFIC NATURAL RESOURCES MANAGEMENT PROGRAMS 464168 EAST ASIA AND THE PACIFIC LIVELIHOODS PROGRAMS 6438208 RUSSIA & THE NEWLY INDEPENDENT STATES DEMOCRACY & GOVERNANCE PROGRAMS 2931782 RUSSIA & THE NEWLY INDEPENDENT STATES HIV/AIDS AND HEALTH PROGRAMS 3055409 RUSSIA & THE NEWLY INDEPENDENT STATES NATURAL RESOURCES MANAGEMENT PROGRAMS 454094 SOUTH AMERICA LIVELIHOODS PROGRAMS 332326 SOUTH ASIA DEMOCRACY & GOVERNANCE PROGRAMS 2575743 SUB-SAHARAN AFRICA DEMOCRACY & GOVERNANCE PROGRAMS 8022935 SUB-SAHARAN AFRICA EDUCATION PROGRAMS 2980958 SUB-SAHARAN AFRICA HIV/AIDS AND HEALTH PROGRAMS 25810926 SUB-SAHARAN AFRICA LIVELIHOODS PROGRAMS 668403 SUB-SAHARAN AFRICA NATURAL RESOURCES MANAGEMENT PROGRAMS 169779 SUB-SAHARAN AFRICA PEACEBUILDING PROGRAMS 2492162 12 0 0 0 0 0 0 0 PART I, LINE 2: I. PURPOSE: TO SYNTHESIZE THE COMPLIANCE REQUIREMENTS FOR SUBRECIPIENT MONITORING. PROPER MONITORING SHOULD MEASURE PROGRESS TOWARD TARGETED RESULTS AND ENSURE THAT RESOURCES ARE USED ONLY FOR THE INTENDED PURPOSE. THIS POLICY IS APPLICABLE TO ALL SUBRECIPIENTS, DOMESTIC OR FOREIGN, RECEIVING FUNDS FROM PACT. II. POLICY: PACT, AS A PRIME RECIPIENT, IS RESPONSIBLE FOR MANAGING AND MONITORING SUBRECIPIENTS. III. PROCEDURE: THERE IS NOT A SINGLE METHOD FOR MONITORING SUBRECIPIENTS OR ONE TEMPLATE BECAUSE PROJECTS VARY BY THEIR NATURE AND REQUIREMENTS. MONITORING PLANS HAVE TO BE DEVELOPED SPECIFIC TO A GRANTS PROGRAM. A SOUND MONITORING PLAN SHOULD CAPTURE THE PROGRESS MADE TO ACCOMPLISH THE OBJECTIVES FOR WHICH THE AWARD WAS MADE. HOWEVER, THERE ARE CERTAIN COMMON ELEMENTS THAT COMPRISE GOOD MONITORING PLANS. THESE ARE: 1. PERFORMANCE REPORTS - THE TERMS AND CONDITIONS OF THE AWARD TO THE SUBRECIPIENT WILL PRESCRIBE THE FREQUENCY WITH WHICH PERFORMANCE REPORTS SHALL BE SUBMITTED. THEY WILL NOT BE REQUIRED MORE FREQUENTLY THAN QUARTERLY OR LESS FREQUENTLY THAN ANNUALLY. THEY SHOULD GENERALLY CONTAIN: (A) A COMPARISON OF ACTUAL ACCOMPLISHMENTS WITH THE GOALS AND OBJECTIVES ESTABLISHED FOR THE PERIOD AND (B) REASONS WHY ESTABLISHED GOALS WERE NOT MET, IF THEY WERE NOT MET. REPORTS SHOULD ALSO DESCRIBE PROBLEMS, DELAYS, OR ADVERSE CONDITIONS WHICH MATERIALLY IMPAIR THE ABILITY TO MEET THE OBJECTIVES OF THE AWARD AND INCLUDE A STATEMENT OF THE ACTION TAKEN OR CONTEMPLATED, AND ANY ASSISTANCE NEEDED TO RESOLVE THE SITUATION. 2. FINANCIAL REPORTS - THE TYPE AND FREQUENCY OF REPORTING REQUIRED WILL BE ESTABLISHED IN THE AWARD. NORMALLY, THE FINANCIAL REPORT SHALL NOT BE REQUIRED MORE FREQUENTLY THAN QUARTERLY BUT SUBRECIPIENTS THAT HAVE BEEN DETERMINED TO BE "AT RISK" MAY BE REQUIRED TO SUBMIT MONTHLY FINANCIAL REPORTS. 3. SITE VISITS - TO REVIEW FINANCIAL AND PROGRAMMATIC RECORDS AND OBSERVE OPERATIONS. NEW SUBRECIPIENTS AND THOSE OTHERWISE CONSIDERED HIGHER-RISK MAY REQUIRE CLOSER MONITORING. 4. AGREED-UPON PROCEDURES ENGAGEMENTS - THESE MAY BE ARRANGED FOR CERTAIN ASPECTS OF SUBRECIPIENT ACTIVITIES AND/OR COMPLIANCE AREAS TO BE TESTED SUCH AS INTERNAL CONTROLS, USE OF USAID FUNDS FOR AUTHORIZED PURPOSES (ACTIVITIES ALLOWED OR UNALLOWED), ALLOWABLE COSTS/COST PRINCIPLES, COST SHARING, AND SPECIAL AWARD CONDITIONS. V. AUDIT OF SUBRECIPIENTS 1) U.S. NONPROFIT SUBRECIPIENTS EXPENDING $500,000 OR MORE IN FEDERAL AWARDS DURING THEIR FISCAL YEAR ARE SUBJECT TO AUDIT REQUIREMENTS IN OMB CIRCULAR A-133. 2) NON-U.S. SUBRECIPIENTS ARE SUBJECT ONLY TO MONITORING BY PACT FOLLOWING APPLICABLE US GOVERNMENT AUDIT COMPLIANCE REQUIREMENTS, WHERE APPROPRIATE. PART I, LINE 3: THE ORGANIZATION USES GAAP TO REPORT EXPENDITURES IN A FOREIGN REGION. 1 PACT GLOBAL MICROFINANCE FUND 1828 L STREET NW STE 300 WASHINGTON DC 20036 455008824 501(C)(3) 593222 PROGRAM SUPPORT 1 0 PART I, LINE 2: I. PURPOSE: TO SYNTHESIZE THE COMPLIANCE REQUIREMENTS FOR SUBRECIPIENT MONITORING. PROPER MONITORING SHOULD MEASURE PROGRESS TOWARD TARGETED RESULTS AND ENSURE THAT RESOURCES ARE USED ONLY FOR THE INTENDED PURPOSE. THIS POLICY IS APPLICABLE TO ALL SUBRECIPIENTS, DOMESTIC OR FOREIGN, RECEIVING FUNDS FROM PACT. II. POLICY: PACT, AS A PRIME RECIPIENT, IS RESPONSIBLE FOR MANAGING AND MONITORING SUBRECIPIENTS. III. PROCEDURE: THERE IS NOT A SINGLE METHOD FOR MONITORING SUBRECIPIENTS OR ONE TEMPLATE BECAUSE PROJECTS VARY BY THEIR NATURE AND REQUIREMENTS. MONITORING PLANS HAVE TO BE DEVELOPED SPECIFIC TO A GRANTS PROGRAM. A SOUND MONITORING PLAN SHOULD CAPTURE THE PROGRESS MADE TO ACCOMPLISH THE OBJECTIVES FOR WHICH THE AWARD WAS MADE. HOWEVER, THERE ARE CERTAIN COMMON ELEMENTS THAT COMPRISE GOOD MONITORING PLANS. THESE ARE: 1. PERFORMANCE REPORTS - THE TERMS AND CONDITIONS OF THE AWARD TO THE SUBRECIPIENT WILL PRESCRIBE THE FREQUENCY WITH WHICH PERFORMANCE REPORTS SHALL BE SUBMITTED. THEY WILL NOT BE REQUIRED MORE FREQUENTLY THAN QUARTERLY OR LESS FREQUENTLY THAN ANNUALLY. THEY SHOULD GENERALLY CONTAIN: (A) A COMPARISON OF ACTUAL ACCOMPLISHMENTS WITH THE GOALS AND OBJECTIVES ESTABLISHED FOR THE PERIOD AND (B) REASONS WHY ESTABLISHED GOALS WERE NOT MET, IF THEY WERE NOT MET. REPORTS SHOULD ALSO DESCRIBE PROBLEMS, DELAYS, OR ADVERSE CONDITIONS WHICH MATERIALLY IMPAIR THE ABILITY TO MEET THE OBJECTIVES OF THE AWARD AND INCLUDE A STATEMENT OF THE ACTION TAKEN OR CONTEMPLATED, AND ANY ASSISTANCE NEEDED TO RESOLVE THE SITUATION. 2. FINANCIAL REPORTS - THE TYPE AND FREQUENCY OF REPORTING REQUIRED WILL BE ESTABLISHED IN THE AWARD. NORMALLY, THE FINANCIAL REPORT SHALL NOT BE REQUIRED MORE FREQUENTLY THAN QUARTERLY BUT SUBRECIPIENTS THAT HAVE BEEN DETERMINED TO BE "AT RISK" MAY BE REQUIRED TO SUBMIT MONTHLY FINANCIAL REPORTS. 3. SITE VISITS - TO REVIEW FINANCIAL AND PROGRAMMATIC RECORDS AND OBSERVE OPERATIONS. NEW SUBRECIPIENTS AND THOSE OTHERWISE CONSIDERED HIGHER-RISK MAY REQUIRE CLOSER MONITORING. 4. AGREED-UPON PROCEDURES ENGAGEMENTS - THESE MAY BE ARRANGED FOR CERTAIN ASPECTS OF SUBRECIPIENT ACTIVITIES AND/OR COMPLIANCE AREAS TO BE TESTED SUCH AS INTERNAL CONTROLS, USE OF USAID FUNDS FOR AUTHORIZED PURPOSES (ACTIVITIES ALLOWED OR UNALLOWED), ALLOWABLE COSTS/COST PRINCIPLES, COST SHARING, AND SPECIAL AWARD CONDITIONS. V. AUDIT OF SUBRECIPIENTS 1) U.S. NONPROFIT SUBRECIPIENTS EXPENDING $500,000 OR MORE IN FEDERAL AWARDS DURING THEIR FISCAL YEAR ARE SUBJECT TO AUDIT REQUIREMENTS IN OMB CIRCULAR A-133. 2) NON-U.S. SUBRECIPIENTS ARE SUBJECT ONLY TO MONITORING BY PACT FOLLOWING APPLICABLE US GOVERNMENT AUDIT COMPLIANCE REQUIREMENTS, WHERE APPROPRIATE. X 1 1 X X X 0 0 0 0 0 0 0 0 0 MARK VISO BOARD MEMBER & CEO 293353 0 32500 0 4131 0 31525 0 15614 0 377123 0 0 0 WILLIAM WARSHAUER COO/SECRETARY 227492 0 34100 0 4391 0 22514 0 15614 0 304111 0 0 0 LEONARD WILLIAMS CFO/TREASURER 233497 0 15000 0 1778 0 30449 0 12960 0 293684 0 0 0 GRAHAM WOOD VP - PROGRAM ADVANCEMENT 162780 0 6454 0 37310 0 21475 0 11054 0 239073 0 0 0 LESLIE MITCHELL COUNTRY REP - ETHIOPIA 129849 0 5059 0 122963 0 17228 0 15022 0 290121 0 0 0 ERICA TUBBS DEP COP 96682 0 3823 0 68721 0 12728 0 14938 0 196892 0 0 0 MATTHEW TIEDEMANN CHIEF OF PARTY 131721 0 5236 0 123289 0 17192 0 14974 0 292412 0 0 0 KURT MACLEOD VP PROGRAM DELIVERY 172938 0 6879 0 31730 0 22545 0 11054 0 245146 0 0 0 CASSANDRA CRAVENS DEP COP 94962 0 3781 0 97460 0 12448 0 14944 0 223595 0 0 0 SAMSON RADENY CHIEF OF PARTY 104390 0 4175 0 103101 0 8422 0 14974 0 235062 0 0 0 SUZANNE REXING VICE PRESIDENT, OPPORTUNITY DEVELOP 193731 0 19367 0 722 0 17091 0 5661 0 236572 0 0 0 JEANNIE M ZIELINSKY REGIONAL VP 162249 0 6468 0 999 0 21198 0 15614 0 206528 0 0 0 JOHN WHALEN PRESIDENT, PACT INSTITUTE 201535 0 20000 0 2543 0 21183 0 15614 0 260875 0 0 0 SEAN MOOD SR. VP 185784 0 12050 0 1191 0 16414 0 15566 0 231005 0 0 0 TODD MALONE COUNTRY DIRECTOR- TANZANIA 109194 0 4389 0 139583 0 14259 0 14944 0 282369 0 0 0 AMANDA CHILDRESS COUNTRY DIRECTOR- MADAGASCAR 109311 0 4344 0 103953 0 9663 0 14938 0 242209 0 0 0 CASIMIR CHIPERE SR. TECHNICAL ADVISOR 80650 0 3296 0 126783 0 9918 0 14974 0 235621 0 0 0 STEPHANIE POSNER COUNTRY DIRECTOR-NAMIBIA 132058 0 5288 0 58347 0 17246 0 14944 0 227883 0 0 0 LUCY KIEKEBUSC-STEINETZ DEP COP/TECHNICAL ADV 116220 0 4631 0 69569 0 9365 0 15280 0 215065 0 0 0 PART I, LINE 1A THE FOLLOWING EMPLOYEES RECEIVED HOUSING ALLOWANCE, WHICH IS TAXABLE. GRAHAM WOOD: $31,734 LESLIE MITCHELL: $37,310 ERICA RUBBS: $37,949 MATTHEW TIEDEMANN: $59,731 KURT MACLEOD: $27,560 CASSANDRA CRAVENS: $28,713 SAMSON RADENY: $24,831 TODD MALONE: $75,012 AMANDA CHILDRESS $41,369 CASIMIR CHIPERE: $59,040 STEPHANIE POSNER: $35,804 LUCY KIEKEBUSC-STEINETZ: $21,120 FORM 990, PART VI, SECTION A, LINE 4 THE ORGANIZATION'S BYLAWS WERE AMENDED IN DECEMBER 2013 TO MAKE A NUMBER OF PREDOMINANTLY ADMINISTRATIVE CHANGES: IT FORMALIZED THE REQUIREMENT THAT PACT SHALL DESIGNATE AND MAINTAIN A REGISTERED AGENT IN THE DISTRICT OF COLUMBIA. THE PRESIDENT & CEO OF PACT IS NOW A MEMBER OF THE BOARD. ADMINISTRATIVE CHANGES TO BOARD MEETING SCHEDULE, REQUIRING AN ANNUAL MEETING AND A BIENNIAL BOARD ELECTION MEETING, AND MODIFYING THE WAY BOARD MEMBER TERMS WORK SO THAT TERMS END AT BIENNIAL ELECTION MEETINGS. ADMINISTRATIVE CHANGES WERE MADE TO MEETING NOTICE REQUIREMENTS, AND TO THE CONDUCT OF BUSINESS BETWEEN BOARD MEETINGS. CHAIR AND CHAIR-ELECT TERMS WERE MODIFIED; MEMBERS SERVING AS CHAIR AND CHAIR-ELECT ARE NOT SUBJECT TO THE TERM LIMITS IN THE BY-LAWS. THE TYPES OF COMMITTEES OF THE BOARD HAVE BEEN MODIFIED TO REFLECT CURRENT ORGANIZATIONAL NEEDS. COMMITTEE PROCEDURES HAVE BEEN OUTLINED AND CLARIFIED. FORM 990, PART VI, SECTION B, LINE 11 ONCE PACT'S FORM 990 IS COMPLETED BY ITS TAX PREPARER, IT IS REVIEWED IN DETAIL BY THE CONTROLLER. ONCE THE CONTROLLER IS SATISFIED THAT THE RETURN IS COMPLETE AND ACCURATE, IT IS REVIEWED BY PACT'S CFO. ONCE THE CFO IS SATISFIED, THE RETURN IS SIGNED AND PREPARED FOR FILING. PACT'S 990 IS PROVIDED TO ITS BOARD OF DIRECTORS PRIOR TO FILING. THE RETURN IS POSTED ON A SECURE WEBSITE FOR A PERIOD OF TIME, AND THE BOARD IS NOTIFIED OF ITS LOCATION, AS WELL AS THE PASSWORD. ANY COMMENTS RECEIVED BY BOARD MEMBERS ARE ANALYZED AND ADDRESSED, AS APPROPRIATE, PRIOR TO SUBMITTING THE RETURN. FORM 990, PART VI, SECTION B, LINE 12C ALL EMPLOYEES ARE REQUIRED TO SIGN A CONFLICT OF INTEREST POLICY AT HIRING. AS OF APRIL 2011, PACT ALSO REQUIRES AN ANNUAL UPDATE (REVIEW OF THE CONFLICT OF INTEREST POLICY, AND SIGNING OF A DISCLOSURE FORM) BY ALL EMPLOYEES. THREE OFFICERS (PRESIDENT, SECRETARY & TREASURER) ARE ALSO EMPLOYEES. PACT'S BOARD HAS AN ANNUAL CONFLICT OF INTEREST ACKNOWLEDGEMENT PROCESS - EACH BOARD MEMBER IS REQUIRED TO READ THE POLICY AND COMPLETE THE ACKNOWLEDGEMENT FORM ANNUALLY, IN CONNECTION WITH THE BOARD'S APRIL MEETING EACH YEAR. FORM 990, PART VI, SECTION B, LINE 15 PACT'S BYLAWS STATE THAT THE "SALARY OF THE PRESIDENT AND CHIEF EXECUTIVE OFFICER AND THE TERMS OF HIS OR HER EMPLOYMENT SHALL BE FIXED BY THE BOARD OF DIRECTORS. THE SALARIES OF ALL OTHER STAFF AND THE TERMS OF THEIR EMPLOYMENT SHALL BE FIXED BY THE PRESIDENT AND CHIEF EXECUTIVE OFFICER." CEO: PACT'S CURRENT CEO WAS HIRED IN APRIL 2009. IN CONNECTION WITH THE SEARCH FOR THE CEO, THE BOARD USED AN EXECUTIVE SEARCH FIRM. THAT FIRM, IN ASSISTING THE BOARD, CONDUCTED A COMPENSATION SURVEY AND BENCHMARKING ACTIVITIES TO DETERMINE AN APPROPRIATE MARKET-BASED COMPENSATION FOR PACT'S CEO, TAKING INTO ACCOUNT ORGANIZATION SIZE, COMPLEXITY, AND OTHER RELEVANT FACTORS. THE EXECUTIVE COMMITTEE OF THE BOARD ULTIMATELY SET THE CEO'S SALARY, WHICH WAS INFORMED BY THE INFORMATION PROVIDED BY THE SEARCH FIRM. THE BOARD CONDUCTS AN ANNUAL EVALUATION OF THE CEO AND AWARDS MERIT-BASED INCREASES AS DEEMED APPROPRIATE. OTHER OFFICERS OR KEY EMPLOYEES: THE CEO IS RESPONSIBLE FOR THE COMPENSATION OF OTHER EMPLOYEES, BUT IS DIRECTLY INVOLVED ONLY IN THE HIRING AND SALARY NEGOTIATIONS OF C-LEVEL POSITIONS. IN THESE CASES, WHERE PACT IS UTILIZING A SEARCH FIRM, THE FIRM HAS PROVIDED MARKET INFORMATION TO ASSIST IN THE DETERMINATION OF APPROPRIATE COMPENSATION LEVELS. FOR KEY EMPLOYEES BEYOND THE C-SUITE, PACT'S SVP OF HUMAN RESOURCES IS RESPONSIBLE FOR SALARY DETERMINATIONS. IN MANY CASES, PACT'S EMPLOYEES ARE PAID UNDER A FEDERAL AWARD AND THE COMPENSATION IS INCLUDED IN A PROPOSAL AND IS APPROVED BY THE AWARDING AGENCY, SUBJECT TO THE AGENCY'S COMPENSATION STANDARDS. IN OTHER CASES, PACT USES A SERIES OF ANNUAL SALARY SURVEYS OF PEER ORGANIZATIONS, CONDUCTED BY AN INDUSTRY TRADE ASSOCIATION, TO INFORM SALARY LEVELS. INSIDENGO, THE TRADE ASSOCIATION OF INTERNATIONAL NGO ORGANIZATIONS, CONDUCTS THREE ANNUAL SURVEYS: SALARY AND BENEFITS SURVEY FOR HQ STAFF, US EXPATRIATE/TCN SALARY AND ALLOWANCES SURVEY, AND LOCAL NATIONAL SALARY AND BENEFITS INFORMATION SURVEY. PACT ALSO CONSULTS THE FORMS 990 OF SIMILAR ORGANIZATIONS FOR SALARY INFORMATION. ALL PACT EMPLOYEES ARE EVALUATED ON AN ANNUAL BASIS, AND MERIT-BASED INCREASES ARE DETERMINED AND AWARDED FROM AN APPROVED POOL, ADMINISTERED BY PACT'S SVP OF HUMAN RESOURCES. FORM 990, PART VI, SECTION C, LINE 19 PACT'S IRS DETERMINATION LETTER, ANNUAL REPORTS, AND AUDITED FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST, AS WELL AS ON GUIDESTAR. MOST RECENT FORMS 990 ARE ON PACT'S WEBSITE. FORMS 990 ARE AVAILABLE ON GUIDESTAR FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). OTHER GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSEEING THE AUDIT OF THE FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT THAT AUDITED THE FINANCIAL STATEMENTS HAS BEEN CONSISTENT WITH PRIOR YEARS. FORM 990, PART I, LINE 5 THE FIGURE NOTED IN ITEM 5 REPRESENTS ONLY EMPLOYEES OF PACT WHO ARE US CITIZENS. PACT HAS MANY OTHER EMPLOYEES, INCLUDING THIRD COUNTRY NATIONALS AND LOCAL NATIONALS, WORKING IN OUR OFFICES AROUND THE WORLD, WHO ARE NOT SUBJECT TO US WAGE AND TAX REPORTING REQUIREMENTS. PACT INSTITUTE 1828 L STREET NW STE 300 WASHINGTON DC 20036 522131854 RESEARCH DC 501(C)(3) LINE 11A, I PACT INC 1 PACT GLOBAL MICROFINANCE FUND 1828 L STREET NW STE 300 WASHINGTON DC 20036 455008824 OPERATE MICROFINANCE PROGRAMS DE 501(C)(3) LINE 11A, I PACT INC 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0 PACT GLOBAL MICROFINANCE FUND B 593222 CASH PACT INSTITUTE L 875000 CASH PACT GLOBAL MICROFINANCE FUND L 1108000 CASH PACT INSTITUTE Q 7009310 CASH PACT GLOBAL MICROFINANCE FUND Q 552202 CASH