2014-11-05T15:53:37-06:00 2013-12-31 861065772 DELOITTE TAX LLP 7900 TYSONS ONE PLACE SUITE 800 MCLEAN VA 22102 990 2013-01-01 133240109 FINCA INTERNATIONAL INC FINC 2026821510 1201 15TH STREET NW 8TH FLOOR WASHINGTON DC 20005 DANE STEVEN MCGUIRE CHIEF FINANCIAL OFFICER 2026821510 2014-11-05 1 YVETTE L WOODS P00364424 7032511000 2013 2015-11-30 17:44:51Z X RUPERT W SCOFIELD 1201 15TH STREET NW 8TH FLOOR WASHINGTON DC 20005 72202657 0 X WWW.FINCA.ORG X 1984 NY FINANCIAL SERVICES TO THE WORLD'S LOWEST INCOME ENTREPRENEURS. FOR A FULL PICTURE, SEE SCHED O 13 10 149 67 120543 37604 18743053 27525208 11895482 31763541 4525702 8044174 8095846 4869734 43260083 72202657 0 0 0 0 18421833 26175290 233160 336715 3014620 28596425 37657615 47251418 64169620 -3991335 8033037 120656643 127327680 51117012 50743270 69539631 76584410 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 47807943 0 36512732 MICROFINANCE LENDING: AS OF DECEMBER 31, 2013, FINCA PROVIDED MORE THAN 1.64 MILLION INDIVIDUALS ACROSS 22 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 DEPENDENTS. SEE SCHEDULE O FOR MORE DETAILED INFORMATION. 47807943 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 64 0 1 149 1 1 1 1 AF AM AJ CJ CG EC ES GG GM GT HA HO JO KV KG MI MX NL NU PK RS TI TZ UG ZA 0 0 0 0 0 0 0 0 0 X 13 10 1 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 1 1 1 AK AL AR CA CT FL GA HI IL KS KY LA MA MD MI MS MN NJ NH NM NY OK OR PA RI SC TN UT VA VT WA WI WV WY X X DANE STEVE MCGUIRE CFO 2026821510 1201 15TH STREET NW 8TH FLOOR WASHINGTON DC 20005 ROBERT W HATCH CHAIRMAN 10.00 X 0 0 0 JOHN K HATCH SECRETARY & HISTORIAN 10.00 X 37607 0 0 RICHARD M WILLIAMSON ASSISTANT TREASURER 5.00 X 0 0 0 AGRINA MUSSA DIRECTOR 5.00 X 0 0 0 CARLOS CAMACHO SR DIRECTOR 5.00 X 0 0 0 DAVID E WEISMAN DIRECTOR 5.00 X 0 0 0 HAROLD D JASTRAM DIRECTOR 5.00 X 0 0 0 JAMES SEMAKADDE DIRECTOR 5.00 X 0 0 0 JO ANN FIELD DIRECTOR 5.00 X 0 0 0 JOHN ELKINS DIRECTOR 5.00 X 0 0 0 PAUL LEFORT DIRECTOR 5.00 X 0 0 0 RITA E SPILLMAN DIRECTOR 5.00 X 0 0 0 SHAWN HASSEL DIRECTOR 5.00 X 0 0 0 RUPERT W SCOFIELD PRESIDENT & CEO 50.00 X X 611420 0 99076 ANDREE SIMON VP & CHIEF OPERATIONS OFFICER 50.00 X 144230 0 16921 BRAULIO OLIVEIRA VP & CHIEF INFORMATION OFFICER 50.00 X 238225 0 20157 DANE S MCGUIRE VP & CHIEF FINANCIAL OFFICER 50.00 X 323806 0 15828 GWEN ANDREOTTI VP - KNOWLEDGE MANAGEMENT 50.00 X 213556 0 33441 JAMES LEMKE VP - HUMAN RESOURCES 50.00 X 161479 0 16908 JEFFREY A FLOWERS VP - REGIONAL DIRECTOR 50.00 X 289612 0 24833 MASOOD AZIZ VP & CHIEF RISK OFFICER 50.00 X 77926 0 9370 MICHAEL A GAMA-LOBO VP - REGIONAL DIRECTOR 50.00 X 217499 0 27574 P DANIEL SMITH VP & GENERAL COUNSEL 50.00 X 304187 0 16629 SCOTT TINDALL DIRECTOR - TREAS SERV 50.00 X 175388 0 19154 SOLEDAD GOMPF VP - NEW BUSINESS DEVELOPMENT 50.00 X 427342 0 68252 SONA GANDHI VP & DEPUTY TO CEO 50.00 X 179813 0 42256 VOLKER RENNER VP - CREDIT & SAVINGS 50.00 X 0 0 452394 CHIKAKO KUNO DIRECTOR, TEMA 50.00 X 262950 0 23596 RONALD AIZER DEPUTY CFO 50.00 X 219915 0 9724 STEFAN QUECK VP - REGIONAL DIRECTOR 50.00 X 194051 0 20043 TIMOTHY CHILDRESS GLOBAL CONTROLLER 50.00 X 195666 0 31741 YURIY SHULHAN DIR., DELIVERY CHANNELS 50.00 X 283333 0 31310 ZARLASHT WARDAK VP - REGIONAL DIRECTOR 50.00 X 269237 0 5374 JANA D CHMELNIZKI LOCAL COUNTRY CEO 0.00 50.00 X 116843 75115 13182 JEREMY DANFORD GLOBAL TAX DIRECTOR 50.00 X 173488 0 9414 LEONARDO POLIT DIR., GL. TRANSFORMATION 50.00 X 176380 0 31663 PEDRO FABIANO GLOBAL CHIEF AUDITOR 50.00 X 172690 0 17519 STEPHANIE BAGOT SR. CORP. ATTORNEY 50.00 X 164400 0 7954 DONALD CRANE FORMER OFFICER 40.00 X 133606 0 15332 EDWARD GREENWOOD FORMER OFFICER 50.00 X 125464 0 13735 EVRIS BEAVERS FORMER OFFICER 50.00 X 125021 0 15236 JOV O'BRIEN FORMER OFFICER 0.00 50.00 X 0 211832 14798 SCOTT GRAHAM FORMER OFFICER 50.00 X 151959 0 16999 TIMOTHY TARRANT FORMER OFFICER 0.00 50.00 X 0 189179 10561 6167093 476126 1150974 52 1 1 0 THE PRODUCTION ADVANTAGE INC 13873 PARK CENTER ROAD HERNDON VA 20171 PRINTING AND MAILING 2754819 JAMES G DAVIS CONSTRUCTION CORPORATION 12530 PARKLAWN DRIVE ROCKVILLE MD 20852 CONSTRUCTION SERVICES 946964 DELOITTE & TOUCHE LLP 7900 TYSONS ONE PLACE STE 800 MCLEAN VA 22102 AUDIT SERVICES 831174 INSIGHT DIRECT USA INC 6820 S HARL AVE TEMPE AZ 85283 IT SERVICES 322447 NAMES IN THE NEWS 180 GRAND AVENUE STE 1545 OAKLAND CA 946123799 MARKETING 236943 21 12716907 14808301 135061 27525208 MANAGEMENT FEES 900099 18826555 18826555 AFFIL LOAN PORT. REV. 900099 9022414 9022414 INTEREST REV -BRANCHES 522298 3881322 3881322 OTHER REVENUE 900099 33250 33250 31763541 8044174 8044174 4749191 4749191 INSURANCE INCOME - UBI 524298 120543 120543 120543 72202657 36512732 120543 8044174 5422872 2394829 2988026 40017 17366193 12307031 4574506 484656 295572 190460 95189 9923 2099484 1443594 655890 991169 608418 355539 27212 471054 373689 97365 718054 195934 522120 336715 336715 25152 25152 6205132 4051187 1386094 767851 45294 45294 5935739 3899382 751063 1285294 590846 250918 339928 2604890 1075060 1529830 3725152 2752357 914026 58769 509165 256298 251370 1497 1946500 1946500 157488 77971 79517 165525 96302 69223 LOAN CAPITAL 9039750 9039750 FOREIGN WITHHOLDING TAX 1639354 1639354 UBI TAX 9000 9000 ALLOCATION OF INDIRECT 0 1523596 -1523596 3869520 3640019 226815 2686 64169620 47807943 13347057 3014620 12679538 12230447 11853427 4448505 1825157 3299683 2452777 4723451 26971519 28763040 979764 762631 3812056 1698929 209576 2113127 9191 9607 62340002 70666530 272761 281840 1062931 28819 120656643 127327680 7027104 13096451 10826482 3825116 25599818 28125707 7663608 5695996 51117012 50743270 X 67607840 74862003 1931791 1722407 69539631 76584410 120656643 127327680 X 8033037 122135 -1110393 X X 0 1 X 1 1 1 X 25535820 19228973 25743712 18743053 27525208 116776766 25535820 19228973 25743712 18743053 27525208 116776766 7133556 109643210 5153466 1389351 6116999 12559057 12793365 38012238 3681 38275 23580 37604 103140 506342 2435260 2941602 157833746 101057430 0.69470 0.72370 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 1867851 87587 1780264 1944205 1611342 332863 2113127 INVESTMENT IN PARTNERSHIP AND SUBS 70666530 C 70666530 DEFERRED DEFINED PENSION OBLIGATION 3504764 OTHER LIABILITIES 2191232 5695996 X 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, 2013, FINCA DID NOT RECORD ANY UNRECOGNIZED TAX BENEFITS. 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. AT DECEMBER 31, 2013, THE ESTIMATED INTEREST AND PENALTIES OF $229,635 RELATED TO THE UNRECOGNIZED TAX BENEFIT ON THE TRANSFER OF A FOREIGN SUBSIDIARY AS PART OF FINCA'S 2011 REORGANIZATION 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. ACCRUED INTEREST AND PENALTIES ARE INCLUDED WITHIN THE RELATED ACCRUED LIABILITIES LINE IN THE CONSOLIDATED STATEMENTS OF FINANCIAL POSITION. FINCA IS SUBJECT TO TAXATION IN THE UNITED STATES AND VARIOUS STATES AND FOREIGN JURISDICTIONS. AS OF DECEMBER 31, 2013, FINCA'S TAX YEARS OF 2008-2013 ARE SUBJECT TO EXAMINATION BY THE TAX AUTHORITIES. 1 CENTRAL AMERICA & THE CARIBBEAN 1 1 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 8346858 SUB-SAHARAN AFRICA 2 15 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 7689499 EUROPE (INCLUDING ICELAND & GREENLAND) 1 160 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 5044476 RUSSIA & THE NEWLY INDEPENDENT STATES 2 10 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 2476556 SOUTH AMERICA 1 1 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 1139995 SOUTH ASIA 1 3 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 1078022 NORTH AMERICA 1 1 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 541787 MIDDLE EAST AND NORTH AFRICA 1 2 PROGRAM SERVICES FINANCIAL SERVICES FOR THE POOR 236304 CENTRAL AMERICA & THE CARIBBEAN 0 0 INVESTMENTS 1900000 SUB-SAHARAN AFRICA 0 0 INVESTMENTS 2067 10 193 0 0 10 193 26553497 1902067 28455564 1 0 1 0 0 0 X X X X X X 1 PUBLIC INTEREST COMMUNICATIONS INC 7700 LEESBURG PIKE FALLS CHURCH VA 22043 TELEMARKETING 0 114731 134245 -19514 SD&A TELESERVICES INC 5757 W CENTURY BLVD LOS ANGELES CA 90045 TELEMARKETING 0 4542 13270 -8728 INTEGRATED DIRECT MARKETING LLC 1250 CONNECTICUT AVE NW 200 WASHINGTON DC 20036 FUNDRAISING CONSULTING 0 0 147200 -147200 KOSOVO ADDIS 1205 CARDINAL LANE CHERRY HILL NJ 08003 FUNDRAISING CONSULTING 0 0 42000 -42000 119273 336715 -217442 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 1 1 X X X X X 0 1 0 1 0 0 1 1 0 RUPERT W SCOFIELD PRESIDENT & CEO 396778 0 50000 0 164642 0 90269 0 8807 0 710496 0 0 0 ANDREE SIMON VP & CHIEF OPERATIONS OFFICER 144155 0 0 0 75 0 10333 0 6588 0 161151 0 0 0 BRAULIO OLIVEIRA VP & CHIEF INFORMATION OFFICER 222949 0 15000 0 276 0 4865 0 15292 0 258382 0 0 0 DANE S MCGUIRE VP & CHIEF FINANCIAL OFFICER 267779 0 55000 0 1027 0 0 0 15828 0 339634 0 0 0 GWEN ANDREOTTI VP - KNOWLEDGE MANAGEMENT 159255 0 3289 0 51012 0 16169 0 17272 0 246997 0 0 0 JAMES LEMKE VP - HUMAN RESOURCES 145712 0 15000 0 767 0 750 0 16158 0 178387 0 0 0 JEFFREY A FLOWERS VP - REGIONAL DIRECTOR 182911 0 80949 0 25752 0 14654 0 10179 0 314445 0 0 0 MICHAEL A GAMA-LOBO VP - REGIONAL DIRECTOR 169132 0 10000 0 38367 0 12632 0 14942 0 245073 0 0 0 P DANIEL SMITH VP & GENERAL COUNSEL 254007 0 50000 0 180 0 325 0 16304 0 320816 0 0 0 SCOTT TINDALL DIRECTOR - TREAS SERV 163863 0 10000 0 1525 0 0 0 19154 0 194542 0 0 0 SOLEDAD GOMPF VP - NEW BUSINESS DEVELOPMENT 169023 0 159017 0 99302 0 43914 0 24338 0 495594 0 0 0 SONA GANDHI VP & DEPUTY TO CEO 164694 0 15000 0 119 0 14270 0 27986 0 222069 0 0 0 VOLKER RENNER VP - CREDIT & SAVINGS 0 0 0 0 0 0 19021 0 433373 0 452394 0 0 0 CHIKAKO KUNO DIRECTOR, TEMA 202393 0 60051 0 506 0 2100 0 21496 0 286546 0 0 0 RONALD AIZER DEPUTY CFO 194639 0 25000 0 276 0 975 0 8749 0 229639 0 0 0 STEFAN QUECK VP - REGIONAL DIRECTOR 163775 0 30000 0 276 0 843 0 19200 0 214094 0 0 0 TIMOTHY CHILDRESS GLOBAL CONTROLLER 175390 0 20000 0 276 0 8829 0 22912 0 227407 0 0 0 YURIY SHULHAN DIR., DELIVERY CHANNELS 214362 0 0 0 68971 0 12721 0 18589 0 314643 0 0 0 ZARLASHT WARDAK VP - REGIONAL DIRECTOR 254565 0 14000 0 672 0 0 0 5374 0 274611 0 0 0 JANA D CHMELNIZKI LOCAL COUNTRY CEO 91153 75115 937 0 24753 0 5141 0 8041 0 130025 75115 0 0 JEREMY DANFORD GLOBAL TAX DIRECTOR 173368 0 0 0 120 0 109 0 9305 0 182902 0 0 0 LEONARDO POLIT DIR., GL. TRANSFORMATION 170656 0 5000 0 724 0 11657 0 20006 0 208043 0 0 0 PEDRO FABIANO GLOBAL CHIEF AUDITOR 172174 0 0 0 516 0 1658 0 15861 0 190209 0 0 0 STEPHANIE BAGOT SR. CORP. ATTORNEY 156792 0 7500 0 108 0 393 0 7561 0 172354 0 0 0 DONALD CRANE FORMER OFFICER 133177 0 0 0 429 0 10675 0 4657 0 148938 0 0 0 EDWARD GREENWOOD FORMER OFFICER 106034 0 0 0 19430 0 8483 0 5252 0 139199 0 0 0 EVRIS BEAVERS FORMER OFFICER 119961 0 5000 0 60 0 9600 0 5636 0 140257 0 0 0 JOV O'BRIEN FORMER OFFICER 0 133010 0 0 0 78822 0 0 0 14798 0 226630 0 0 SCOTT GRAHAM FORMER OFFICER 134822 0 17000 0 137 0 9438 0 7561 0 168958 0 0 0 TIMOTHY TARRANT FORMER OFFICER 0 118799 0 0 0 70380 0 9504 0 1057 0 199740 0 0 PART I, LINE 1A FINCA INTERNATIONAL HAS PROVIDED TAX GROSS-UP PAYMENTS TO THE FOLLOWING EMPLOYEES IN RELATION TO LIFE INSURANCE POLICY PREMIUM PAYMENTS: RUPERT SCOFIELD, SOLEDAD GOMPF, AND GWEN ANDREOTTI. FINCA INTERNATIONAL HAS PROVIDED TAX-GROSS-UP PAYMENTS FOR THE FOLLOWING EXPATRIATE EMPLOYEES: VOLKER RENNER, EDWARD GREENWOOD, JOV O'BRIEN, JANA CHMELNIZKI, TIMOTHY TARRANT, AND YURIY SHULHAN. HOUSING ALLOWANCES ARE PROVIDED FOR HOUSING COSTS PAID TO THE FOLLOWING EXPATRIATE EMPLOYEES: JEFFREY FLOWERS, MICHAEL GAMA-LOBO, EDWARD GREENWOOD, JOV O'BRIEN, JANA CHMELNIZKI, TIMOTHY TARRANT, AND YURIY SHULHAN. THE GROSS-UP PAYMENTS AND HOUSING ALLOWANCES ARE TREATED AS TAXABLE COMPENSATION. PART I, LINE 4B THE FOLLOWING PERSONS PARTICIPATED IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN: GWEN ANDREOTTI ($3,013 DEFERRED COMPENSATION), SOLEDAD GOMPF ($29,514 DEFERRED COMPENSATION), RUPERT SCOFIELD ($67,269 DEFERRED COMPENSATION), JOHN HATCH (NO DEFERRED COMPENSATION), AND VOLKER RENNER ($1,521 DEFERRED COMPENSATION). JOHN HATCH RECEIVED A PAYMENT OF $59,792 DURING 2013; NO OTHER LISTED PERSON RECEIVED PAYMENT DURING 2013. THE PLAN IS A DEFINED BENEFITS PENSION PLAN. PART I, LINE 5 FINCA INTERNATIONAL HAS AN ESTABLISHED INCENTIVE PLAN PROGRAM THAT PAYS AN ANNUAL BONUS CONTINGENT ON GRANT AND CONTRIBUTION REVENUE TO ONE INDIVIDUAL. 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. IN 2013 FIVE INDIVIDUALS PARTICIPATED IN THE PROGRAM. 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 49730 EMPLOYMENT 0 JOHN HATCH FAMILY MEMBER - DIRECTOR 37607 EMPLOYMENT 0 X 59 135061 COST OR SELLING PRICE 0 0 1 1 PART I, COLUMN (B): THE AMOUNT IN COLUMN (B) REFERS TO THE NUMBER OF CONTRIBUTIONS. 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 IS COMPRISED OF THE AUDIT COMMITTEE, THE HEADQUARTERS CONTROLLER, AND REPRESENTATIVES FROM HUMAN RESOURCES AND LEGAL. THE 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. 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 AND KEY EMPLOYEES' 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 AND KEY EMPLOYEES' 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. FORM 990, PART XI, LINE 9: OTHER -1,110,393. FORM 990, PART XII, LINE 2A & 2B: FINCA INTERNATIONAL'S FINANCIAL STATEMENTS WERE AUDITED ON A CONSOLIDATED BASIS. FORM 990, PART XII, LINE 2C: OVERSIGHT OF AUDIT: THERE HAVE BEEN NO CHANGES DURING THE YEAR IN THE PROCESS FOR OVERSIGHT OF THE AUDIT OF THE FINANCIAL STATEMENTS. FORM 990, PART III, LINE 4A: OVER THE COURSE OF 2013, OVER 11,700 FINCA EMPLOYEES DISBURSED NEARLY $1.5 BILLION IN LOANS AVERAGING $833 TO ITS CLIENTS, 57% OF WHOM ARE WOMEN. IN AFRICA, AVERAGE VILLAGE BANKING LOAN SIZES WERE JUST $242, AND IN LATIN AMERICA 83% OF FINCA CLIENTS WERE WOMEN. MORE THAN 727,000 INDIVIDUALS VOLUNTARILY SAVE ON A REGULAR BASIS, WITH TOTAL SAVINGS OF OVER $66 MILLION, EQUATING TO AN AVERAGE SAVINGS OF $86 PER CLIENT. FINCA MICRO-INSURANCE POLICIES PROTECTED MORE THAN HALF A MILLION FAMILIES AROUND THE WORLD IN 2013. AS OF DECEMBER 31, 2013, FINCA'S COUNTRIES OF OPERATION AND NUMBER OF BENEFICIARIES ARE: AFRICA * DEMOCRATIC REPUBLIC OF CONGO: 170,947 BENEFICIARIES * MALAWI: 44,048 BENEFICIARIES * TANZANIA: 120,664 BENEFICIARIES * UGANDA: 178,211 BENEFICIARIES * ZAMBIA: 129,737 BENEFICIARIES LATIN AMERICA & CARIBBEAN * ECUADOR: 71,620 BENEFICIARIES * EL SALVADOR: 13,132 BENEFICIARIES * GUATEMALA: 32,261 BENEFICIARIES * HAITI: 10,244 BENEFICIARIES * HONDURAS: 16,910 BENEFICIARIES * MEXICO: 131,818 BENEFICIARIES * NICARAGUA: 41,588 BENEFICIARIES GREATER MIDDLE EAST * AFGHANISTAN: 27,236 BENEFICIARIES * JORDAN: 19,022 BENEFICIARIES * PAKISTAN: 200,489 BENEFICIARIES EURASIA * ARMENIA: 53,474 BENEFICIARIES * AZERBAIJAN: 152,825 BENEFICIARIES * GEORGIA: 48,623 BENEFICIARIES * KOSOVO: 11,424 BENEFICIARIES * KYRGYZSTAN: 128,341 BENEFICIARIES * RUSSIA: 15,688 BENEFICIARIES * TAJIKISTAN: 28,932 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 EXISTENCE 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 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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