PAN AMERICAN DEVELOPMENT FOUNDATION
2007 annual report
gener ations of grow th
LOOKING BACK—MOVING FORWARD 45 Years, Three Generations
2 MESSAGES FROM OUR LEADERSHIP 4 LEAVING COCA FOR CACAO: Meet Miguel Daza Alternative Development and Areas for MunicipalLevel Alternative Development in Colombia 6 OVERCOMING BARRIERS TO EDUCATION: Meet Ana Noemí González Ramos Manos Unidas por El Salvador 8 GROWING A BUSINESS: Meet Julio Contreras Internally Displaced Persons in Colombia 10 SMILING AGAIN: Meet Manolo Lora Our Border in the Dominican Republic and Haiti 12 LEARNING FROM THE LAND: Meet Limber Robles Santa Cruz Land Access Initiative in Bolivia 14 REINVENTING A RAINFOREST VILLAGE: Meet the Vela Family Sustainable Ecotourism Community in Peru 16 Impact 2007 A Map of Accomplishments 18 DRIVING CHANGE IN HAITI: Meet Paulette Payen Community-Driven Development in Haiti 20 OTHER PROGRAMS AT A GLANCE Disaster Management and Relief, In-Kind Donations, and Corporate Giving 22 OUR DONORS AND PARTNERS 25 BOARD OF TRUSTEES 26 STAFF 27 FINANCIAL STATEMENTS 32 HOW YOU CAN HELP
2007 was a year of extraordinary expansion for PADF: Our efforts impacted an unprecedented 3.67 million people in 22 countries. Sustainable development is driven by the needs of beneficiaries, like those you will meet on the following pages. Over the past 12 months—and during our 45 years of operation—we have worked alongside and served the needs of millions of people. Through this work, both our beneficiaries and staff members have been transformed, as people and professionals. In this Annual Report, find out more about our innovative programs and the people who make them successful. Discover how they cultivate opportunities like new jobs and social investments. Witness the generations of growth that they have initiated throughout Latin America and the Caribbean.
cover photo karl grobl
This Annual Report is dedicated to Miguel Daza, a PADF program beneficiary who lost his life in February 2008. Read Miguel’s inspiring story of personal growth and change on page 4.
45 Years, three generations
Looking Back—Movi A Seminal Year 1962
Spreading the Vision 1960s–1980s
o An idea is born from JFK’s Alliance for Progress: Aid indigenous people with small loans, training, and technical assistance; and address poverty, social injustice, and underdevelopment in Latin America and the Caribbean.
o PADF pioneers modern microcredit lending through the establishment of national development foundations.
o The first foundation is created in the Dominican Republic during a time of civil strife and threats to democracy in the mid-1960s. o Microenterprise development programs are replicated in other countries in the 1970s, and further expanded in the Caribbean and Central America to support civil society development and private sector initiatives in the 1980s. o Thirty-three national development foundations are created throughout the hemisphere—most of which continue to operate today.
o Deeply rooted in Inter-American history and the spirit of Pan Americanism, the PADF concept is modeled on The Penny Foundation that delivered microcredit to indigenous people in Guatemala.
o PADF becomes a model for establishing other NGOs in Latin America and the Caribbean, evolving into an Inter-American mechanism for strengthening civil society, empowering communities, promoting corporate social responsibility, and facilitating private contributions for development and disaster assistance.
o The idea catches the attention of the early architects of the Alliance for Progress as an innovative way of aiding disadvantaged people through private sector involvement.
o The Foundation becomes a leader in providing in-kind donations of medical-dental equipment, tools for training, school buses, ambulances, and other commodities to strengthen local nonprofits and municipalities.
The U.S. Agency for International Development (USAID)—To direct U.S. bilateral aid. The Peace Corps—To provide volunteers for local
community development projects. The Inter-American Development Bank (IDB)—
To increase capital assistance for infrastructure and industry.
o The Organization of American States (OAS) and private enterprise provide support to create PADF; that same year also saw the establishment of:
ing Forward Expanding Roles 1990s to Date
o With growing remittances from U.S. immigrant populations, PADF pioneers programs with hometown associations and other groups to increase their community remittances for school improvements, enterprise development, and aiding victims of natural disasters in their countries of origin.
o PADF is increasingly called upon to work with civil society and the private sector in countries experiencing civil strife—Haiti, Grenada, Guyana, and Honduras, then Nicaragua, El Salvador, Colombia, Bolivia, and other countries undergoing democratic challenges.
o Programming is broadened into natural resource conservation, rural and agricultural development, disaster reconstruction, rapid employment creation for refugee and displaced populations, conflict mitigation and management, and civil society and municipal strengthening.
o The organization develops a strategic planning process designed to guide a growing program rooted in its intellectual and philosophical origins with a focus on continued leadership in achieving concrete results. banco agrícola
o The intensity and frequency of natural disasters increase; PADF becomes a specialized InterAmerican group that works with corporate donors and the Association of American Chambers of Commerce in Latin America (AACCLA), and its member Chambers (AmChams), to quickly provide relief to victims and support disaster preparedness, mitigation, and reconstruction.
o PADF broadens its work with corporate partners, as well as donors of in-kind medical-dental equipment and tools for training.
o Through extensive work in Haiti, PADF develops unique expertise in this country’s challenges, especially in natural resource management, job creation, disaster reconstruction, strengthening community groups, among others. o In the 2000s, PADF supports the implementation of Plan Colombia by aiding displaced persons, AfroColombians, and other vulnerable groups including former coca growers with employment alternatives, technical training, and related services. This becomes the Foundation’s largest program. o Building on activities in Haiti and Colombia, PADF develops innovative cross-border programs supporting strategies for moving conflictive border regions to greater cooperation in support of InterAmerican efforts. o Programs are expanded to strengthen civil society, promote community participation, and nurture democratic values and practices in accordance with the Inter-American Democratic Charter, approved by all OAS Member States on September 11, 2001.
2007 Forward o PADF’s vision endures after 45 years: To create economic and social opportunities for the most vulnerable and aid victims of humanitarian crises and natural disasters through partnerships with local civil society and the private sector. This vision continues to define the role of PADF in the 21st century. o As the Foundation moves forward to its 50th Anniversary in 2012, it builds upon a long history of achievements in promoting “A Hemisphere of Opportunity for All,” as a proud affiliate of the Organization of American States.
F RO M TH E C H AIRM AN O F TH E B OAR D
3.67 million beneficiaries o Twenty-two countries o Two regional programs o Seven country programs o Strong corporate partnerships o New jobs o Improved infrastructure o Technical assistance o Training programs o Access to medical services o
In 1962, the Organization of American States became the first international organization to create a nongovernmental organization. The Pan American Development Foundation reflected the OAS’s earliest interest in promoting development of civil society, corporate social responsibility, and the private sector as means of assisting disadvantaged people throughout Latin America and the Caribbean. To this day, the Foundation reflects the spirit of Inter-American solidarity with the least fortunate citizens of the Americas. Our missions go hand-in-hand: the OAS works for democracy, justice, peace, prosperity, and integral development throughout the hemisphere. We are a multilateral forum for strengthening democracy, promoting human rights, and confronting poverty, terrorism, illegal drugs, and corruption. PADF improves the lives of those who do not have access to economic and social opportunities and have been left behind in their societies. PADF implements innovative programs using resources from international agencies, plus corporate and private donors and partnerships. In addressing poverty, social justice, democracy, natural disasters, and humanitarian crises, the Foundation is addressing the most critical challenges in our hemisphere. PADF is growing in its expenditures and resources—and in the right locations, as well. In the past year, PADF expanded its initiatives in Colombia, a country which has been strengthening its democracy by promoting investments for those most in need such as displaced persons, Afro-Colombians, former coca growers, and other vulnerable groups. The Foundation is a vital OAS mechanism for efforts to stabilize and support Haitian development and encourage cross-border cooperation between Haiti and the Dominican Republic. It is strengthening civil society and community participation in accordance with the Inter-American Democratic Charter. Thousands of victims of natural disasters and humanitarian crises were benefited, as PADF worked in 22 countries supporting OAS initiatives and symbolizing our concern for the poor majority. The Foundation had its finest year ever in 2007, reaching more than three and a half million beneficiaries, and I am pleased that PADF is growing so successfully. As Chairman, I congratulate our Trustees, staff and partners on their achievements and accomplishments—not only in the past year, but also over the past decades as we advance toward our 50th anniversary in 2012. While PADF rightly highlights its beneficiaries in this report, I also thank the many supporters of the Inter-American System, and the generous donors and friends of PADF. Their collective dedication and enthusiasm are remarkable, reflecting an exceptional commitment to supporting OAS programs and our efforts to bring greater hope and opportunity to the least fortunate in our hemisphere. José Miguel Insulza Secretary General, Organization of American States Chairman, PADF Board of Trustees
FROM THE PRESI D EN T & EX ECUT IVE D IRE C TOR The Pan American Development Foundation completed its 45th year of operation in 2007; and we are pleased to report that we marked our largest year of growth in expenditures and number of beneficiaries. Expenditures totaled approximately $46.3 million for the fiscal year, which ended on September 30, 2007. With these funds, we served an estimated 3.67 million beneficiaries through seven country programs, two regional programs, and several corporate partnerships. Our work touched many, many lives throughout 22 countries in the Caribbean and Latin America. As PADF celebrates our 45th year of creating “A Hemisphere of Opportunity for All,” we are looking back at how far we have come—and looking forward to where we are headed. The Foundation was created through a unique partnership between the Organization of American States and private enterprise with support from the InterAmerican Development Bank and the U.S. Agency for International Development. During the past four-and-a-half decades we have strengthened thousands of civil society and community groups in the Americas while pioneering new development and disaster assistance initiatives that have enhanced prosperity for millions of disadvantaged people. Our beneficiaries keep us focused. In keeping with our mission, we measure successes through the eyes of those we serve, and strive to constantly improve the programs and systems needed to support them. In the past year, beneficiaries received training, obtained jobs, and generated more resources for their families. They participated in democratic local decision-making, strengthened their community groups, enhanced market access for their products, and improved their schools. And they made their communities less vulnerable to disasters, improved their family’s health through access to medical services, and received safe havens in situations of violence or abuse from human trafficking. Looking ahead, our Strategic Plan for the next five years calls for a continuation of growth, diversification of funding support, and an expansion of the number of beneficiaries served by our 50th anniversary.
o Participation in decision-making o Community group strengthening o Improved market access o School improvements o Income generation o Disaster mitigation o Agricultural development o Healthier families o Safe havens from violence and abuse o Improved relations across borders
We cannot recognize our extraordinary progress without saying thank you to PADF donors, Trustees, management, and staff, and especially to our civil society partners in the hemisphere. Thank you also to the U.S. and Canadian Governments, whose agencies and bureaus support our efforts immensely. We are also grateful for the strong support that we receive from the OAS Secretary General and Assistant Secretary General. Without all of these supporters, our growth and success this past year would not have been possible. Alexander F. Watson John A. Sanbrailo President, PADF Board of Trustees Executive Director, PADF
Meet Miguel Daza Like many young men in Colombia, Miguel Eugenio Daza wanted to “get rich quick” by growing coca near his rural home in Southern Bolívar in Colombia. “The pressures of this illicit business only brought out the worst in me. I drank a lot, wasted a lot of money, and neglected my family.” When PADF-Colombia came to Miguel’s region to implement the Alternative Development (AD) program, and later the Areas for Municipal-Level Alternative Development (ADAM) program, Miguel and a group of locals were able to create a farmer’s association called APROCASUR (Asociación de Productores de Cacao del Sur de Bolívar) to develop alternative crops. Through APROCASUR, former coca growers are empowered with a new way to make a living. The farmers now grow cacao, the main ingredient in chocolate, earning enough money to support their families. Association members harvest 40 to 50 kilograms of cacao a month. “Now, those who called us fools for leaving the coca business want to participate in the cacao business,” said Miguel. This is, however, only part of the story. APROCASUR’s work is neither easy nor risk free. Miguel Daza was killed by an unknown illegal armed group operating in his area in February 2008. Now, Miguel Former coca grower Miguel Daza exemplifies the successful transition from coca grower to cacao farmer. By uniting with a group of locals to form a farmer’s association, Miguel paved the way for others to seek healthy, productive livelihoods as an alternative to illicit business.
is an eternal symbol of leadership and the desire to better the lives of his family and community members. His death is a tragic reminder of the cost of taking a stand in areas of conflict in Colombia and elsewhere in the region. Despite this loss, Miguel’s life has inspired our staff and those with whom he worked by serving as an example of personal growth and advocacy for social change.
Leaving Coca for Cacao
PROG R A M AT A GL A N C E
Working with PADF and our team in Magdalena Medio in Colombia has been my life’s work. Miguel Daza showed me that it is possible to draw upon the good within human beings in order to build better lives. He taught me that, even though the rural people we work with never went to school or college, they are valuable and intelligent, and have dreams and fears; and they play a definitive role in rural development in the regions where we work. Miguel’s example will always give great purpose to my work with PADF.
Alternative Development and Areas for Municipal-Level Development in Colombia Challenge: Colombia produces
Solution: Working through a team
—José Félix Montoya, PADF Regional Director, Magdalena Medio, Colombia
three-quarters of the world’s annual cocaine yield. Coca eradication efforts have devastated much of the farming economy. The resulting violence and organized crime are defining issues for the country.
of NGOs and USAID-funded efforts, PADF trains ex-coca farmers in the cultivation of new crops. PADF’s Colombia operation contributes seeds and seedlings, sets up nurseries and family plots, and provides technical assistance and training to help the families grow legal crops for food and sale. These provide a steady income and let people contribute to their country in a meaningful, non-violent manner.
Presidential Agency for Social Action and International Cooperation (Acción Social), other Colombian governmental institutions, Associates in Rural Development (ARD), APROCASUR, and PADF. Results: Since 2000, the program
has created more than 5,000 jobs and directly benefited thousands of families. Alternative crops include cocoa, palm oil, and rubber. These products yield stable returns and strong demand in national and international markets, providing sustainable agricultural growth.
Meet Ana Noemí Shy and quiet, Ana Noemí González Ramos has overcome many barriers, like the death of her father and the consequent departure of her mother to seek work in the U.S. to support the family back home. Ana Noemí now lives with her grandmother and siblings, and despite these challenges, remains passionately devoted to school. In municipal competitions, she’s won two first prizes for language and literature. By building a new classroom for their local school, villagers in the rural area of Chapeltique, El Salvador and their friends in a U.S. hometown association enabled children to stay close to home in order to finish middle school. The classroom construction project in Ana Noemí’s village was led by Manos Unidas por El Salvador, a corporate social responsibility program of Banco Agrícola, the Central American country’s largest bank. Through a pioneering partnership created by PADF, the bank, communities cios re Pala
like Chapeltique, and Salvadoran immigrant
associations in the United States collaborate to improve access to and infrastructure for education. Ana Noemí González Ramos is an award-winning student whose rural school was recently improved by the unique Manos Unidas partnership. Between 2004 and 2007, more than 25,000 students have benefited through the program from new infrastructure, school supplies, computer and science labs, and vocational training.
Manos Unidas placed learning opportunities at Ana Noemí’s doorstep, giving her access to middle-school teachers and knowledge, and establishing a foundation for high school and college. Before the classroom construction project, the closest school that offered 8th and 9th grade was “…really far away,” she says.“ During the rainy season, the rivers swell and prevent us from crossing. Now, we can attend classes and study here.”
Overcoming Barriers to Education
PROG R A M AT A GL A N C E:
Challenge: More than 35 percent of
Solution: Manos Unidas por El
Salvador was created by PADF and the country’s largest bank, Banco Agrícola, to support education throughout El Salvador. By matching funds contributed by Salvadoran “hometown association” groups in the U.S., Manos Unidas channels resources that create links between Salvadorans living abroad and at home so they can work together to achieve better schools and better lives.
—Engel Flores, PADF Field Coordinator, Manos Unidas por El Salvador
Salvadorans live below the poverty line, lacking good education, particularly in rural areas. Crime, underemployment, and income inequality are persistent. Given limited opportunities for education and employment, pressure to emigrate in search of those opportunities is enormous.
Part of my spiritual and personal growth includes increasing my level of awareness and knowledge of the problems and realities faced by the communities and students like Ana Noemí. The most rewarding part is seeing that one can be part of fulfilling the dreams of others, working with them toward the resolution of their problems. Each smile and look of satisfaction from the kids and community members makes me forget my fatigue, the dust, the bad roads, and the normal snags in the process.
Manos Unidas por El Salvador
Salvadoran Ministry of Education, local governments in El Salvador, 39 U.S.based immigrant organizations, many beneficiary communities throughout El Salvador, and PADF. Results: Since its inception in 2004,
Manos Unidas has provided better educational opportunities for more than 25,000 students through 50 education projects with the Salvadoran Diaspora. Among other initiatives, PADF helped equip 24 computer centers, expand or remodel 16 schools, install 13 libraries, and create four science labs.
Stakeholders: Banco Agrícola, the
Meet Julio Contreras A $50 micro-credit loan has turned into a great investment in one family’s future in Colombia. Like tens of thousands of people displaced by violence in the country, Julio Contreras wandered homeless for years, and ended up selling butifarras (meat-stuffed pastries) in the streets in a tough section of Cartagena. Then, through an innovative program that supports the business aspirations of displaced and vulnerable families, Julio and his wife Isalandia García and their two daughters were given a micro-credit of $50 to start a butifarras business of their own. That was all Julio needed. With other families, he formed ALIPROCAR, a work cooperative that produces and promotes meat products—and an extraordinary example of social change and realized dreams. ALIPROCAR was developed primarily for AfroColombians like Julio. Since its establishment in 2003, the cooperative has grown dramatically with more financing from USAID and Colombia’s Ministry of Industry and Commerce. Today, ALIPROCAR posts $11,000 in monthly sales, and every one of Julio Contreras had never left his hometown of Unguía, on the Pacific Coast, until armed groups forced him out in 1999. Today, he is Executive Director of Alimentos Procesados de Cartagena (ALIPROCAR), a small business financed by USAID and implemented by PADF.
the more than 135 employees has their own home, says Julio proudly. “They’re not huge houses, but they’re our houses— and that’s what’s important.”
Growing a Business PROG R A M AT A GL A N C E
Internally Displaced Persons in Colombia Challenge: After 50 years of strife, Colombia faces the largest humanitarian crisis in the hemisphere with up to eight percent of the total population forcefully displaced from their homes—a third of them indigenous and Afro-Colombian people. Over 220,000 continue to be displaced each year.
Through this program, I have developed new abilities and built very interesting relationships, both personally and professionally. I met Julio Contreras as project manager for PADF, while developing the program to reestablish displaced populations. It’s wonderful to contribute to the development and growth of others, facilitating one grain of sand that might improve their lives, and making their dreams a reality.
—Gloria Alicia Pinzón, Income Generation Specialist, PADF-Colombia
Solution: Create partnerships to return,
resettle, and reintegrate displaced families, and deliver resources at the local level to support business ideas for the economic and social development of displaced and vulnerable families. Projects include income generation, shelter, medical support, community integration, infrastructure development, and education. Stakeholders: USAID, Presidential
Agency for Social Action and International Cooperation (Acción Social), various ministries of the Government of Colombia, local NGOs, private donors, communities of internally displaced persons (IDPs), and PADF. Results: To date, the program has
directly benefited more than 400,000 displaced individuals and created more than 60,000 jobs. By 2010, over one million displaced persons will benefit, including Afro-Colombian, indigenous, and other vulnerable groups.
D ominican R epublic and Haiti Borde r R e gion
Meet Manolo Lora Two slipped disks and a lumbar hernia forced Manolo Lora out of the fields of Dajabón, Dominican Republic, at age 50. Although he still milks cows and supervises a ranch, making a living is hard and opportunities are few. But thanks to a boost from the innovative Our Border program, Manolo has found work to complement his farm jobs—beekeeping. Honey from the Dominican Republic and Haiti border region won a gold medal in France in the 1950s, but the industry was never developed. Then, PADF partnered with several other stakeholders from the border provinces and created the first-ever Beekeepers Cooperative (Cooperativa de Apicultores y Servicios Múltiples Salvador Ferrer) in the Dominican Republic. Manolo had previous experience working with bees: “I used to call myself a beekeeper, but with this program, I’m really becoming one.” The Our Border program (Fwontye NouNuestra Frontera in Creole and Spanish) found additional partners who brought in more training, equipment, and technical assistance. Now the Beekeepers Cooperative has an office that also serves as a store for honey and bee-related products. They have increased productivity and are building a regional honey processing plant. The program also provides Manolo Lora is one of a group of more than 100 beekeepers from Dajabón, Santiago Rodríguez, and Montecristi. Their regional Beekeepers Cooperative is flourishing through a joint initiative of PADF, USAID, the European Union, CEDAF, and a variety of stakeholders.
small grants to local NGOs to improve economic opportunities and enhance local services. These grants also support cyber cafes, fishing and goat-raising associations, local Red Cross chapters, women’s groups, national park tours, and more. “I’m glad they found us,” says Manolo. “We are thinking big now. Thanks to PADF and Our Border, we can smile again.”
PROG R A M AT A GL A N C E
Working on the border is not easy. It’s a region where smuggling, migration, extreme poverty, institutional weakness, environmental degradation, and disaster vulnerability all create a lot of tension. Sometimes you fear even for your own safety. Finding someone with such strong spirit and determination as Manolo makes you realize it’s all worth it. We’ve become very good friends. I now stay in his place when I’m in Dajabón. He and his wife Chicha say I’m like their own son!
Our Border in the Dominican Republic and Haiti Challenge: The border between the
Solution: The Our Border program
—Cesáreo R. Guillermo, PADF Regional Director, Dominican Republic karl Grobl
Dominican Republic and Haiti divides two countries with distinct languages, cultures, and economies. Divisive issues along the border include poverty, healthcare, the environment, migration, labor, trade, and other areas that can generate conflict.
is working through local civil society organizations and with both nations’ governments to create economic opportunities, mitigate conflicts, and bridge opportunities for cooperation along the Haitian-Dominican border. Stakeholders: USAID, the Beekeepers
Cooperative (Cooperativa de Apicultores y Servicios Múltiples Salvador Ferrer), the European Union, Second MicroRealizations Program PMR2, Agriculture and Forestry Development Center (CEDAF), Stanford Financial, the Haitian Parliament, FUNGLODE, the Peace Corps, the Dominican Border Development Agency, the Dominican Ministry of Environment and Natural Resources, the Inter-American Institute for Cooperation on Agriculture (IICA), the Organization of American States (OAS), the World Bank, the Canadian Government, the UNDP, the Latin American Faculty of Social Sciences (FLACSO), dozens of local NGOs, other national and international organizations, and PADF. Results: PADF is working with 43 organi-
zations along both sides of the border as well as with both national governments, creating social and economic opportunities by strengthening civil society organizations, mitigating local conflicts, and creating “bridges” of cooperation throughout the region.
Meet Limber Robles Limber Robles is a community leader of El Carmen, Bolivia— one of the four rural communities where the Land Access Initiative is bringing about positive changes. When the Land Access Initiative first came to the village of El Carmen in 2006, the program urgently needed trusted leaders to embrace the effort, represent the community, and champion the cause. Limber was director of the local agricultural workers union, and he stepped up— a natural leader and spokesperson. Through the program, PADF has facilitated the purchase of tons of black bonito bean seeds, knapsack spraying equipment, and grain sowers for farmers. An agriculture expert works with the community to enhance harvest production and maximize yield. Additionally, every week, workshops led by program staff teach lessons in peaceful conflict resolution, active non-violence, and community organization and leadership.
Recently, the farmers of El Carmen Alex Ta
negotiated collectively rather than individually for the sale of their crop through the Agricultural Farmers Association—a After helping to lead his community in the Land Access Initiative, Limber Robles was recently elected Deputy Mayor of the district. Where violent conflicts over land have been a way of life, he has embraced the program’s goals of leadership, peaceful conflict resolution, and community development.
great leap in community strengthening. In an area where violent conflict has been a way of life for so long, an entire town is uniting behind Limber Robles and other leaders to make life better.
PROG R A M AT A GL A N C E
This project has helped me learn the legal processes for accessing land. I have had the opportunity to experience first-hand the farmers’ urgent needs. Helping Limber helps me—personally, professionally, and as a Bolivian who sees the urgency of working with the poor, which is one of the greatest problems in my country.
Santa Cruz Land Access in Bolivia
—Maria Eugenia Vera, PADF Project Coordinator, Bolivia Alex Talavera
Challenge: Bolivia has some of the poorest rural areas in Latin America. Land distribution is highly uneven. A UN study in 2005 showed that some 100 families own 25 million hectares, while two million farmers work a total of five million hectares. This contributes to alarming levels of civil unrest that exacerbate social and economic problems.
Learning from the Land
Solution: To reduce potential for
violent conflict over land in Santa Cruz, one of Bolivia’s most vulnerable regions, this program partners PADF, through USAID support, with a local NGO and the Bolivian government to train communities in non-violent conflict resolution, assist small-plot farmers, and facilitate legal access to land through technical assistance and support.
El Puente, Fundación de Desarrollo Democrático Participación Ciudadana (F-DDPC), the Government of Bolivia, the local municipal farmers’ association Federación Sindical de Campesinos Agropecuarios del Municipio El Puente (FSCAMEP), and PADF.
Stakeholders: USAID, the Municipio
Results: More than 650 citizens in
four communities have been trained in conflict resolution, and have received legal assistance in claiming their own land. The project delivers a replicable and scaleable model and process for land access solutions region-wide.
P e ru
Meet the Vela Family There was a time when the only way a family could survive in parts of the Peruvian rainforest was to sell timber, plants, and animals, and clear land for crops. But the Velas are learning that you donâ€™t have to destroy a forest to make a living in it. Pedro Vela and his family are one of 60 families in San Rafael, a small farming community on the Amazon. With the help of an innovative partnership, the whole community has organized itself in an effort to become a sustainable ecotourism destination. Among other
egas Luisa Vill
responsibilities as a community leader, Pedro is responsible for a butterfly greenhouse, where his son Pedrito proudly shows visitors how to collect, identify, and The Vela family is one of 60 families in San Rafael who are creating an ecotourism haven among some of the most biologically diverse forests in the world. In their nature reserve, indigenous species are protected, visitors are taught about the rainforest, and the village is determined to share its environmental and scenic beauty.
breed many types of butterflies. Pedroâ€™s wife, Carmela del Aguila, sells purses, hats, wallets, and handicrafts from palm tree fibers. San Rafael today offers visitors hikes and excursions, a mushroom greenhouse, fish hatcheries, marketable crops, local artisans, and traditional medicine and mystic healing experiences guided by a master shaman. There are two large guesthouses and easy access to other Amazon River attractions.
Reinventing a Rainforest Village
PROG R A M AT A GL A N C E
The beauty of our jobs is when we can experience how so much work finally translates into real projects that benefit people and improve lives. All those days in an office are worth it when you can escape for a few days into the beauty of an ecotourism community that is thriving because of the project you helped to create and make a reality.
Sustainable Ecotourism Community in Peru Challenge: In the Amazon,
—Luisa Villegas, PADF Program Manager, South America
deforestation is having a disastrous effect on lives and livelihoods. Communities need income from sustainable industry and commerce that doesn’t destroy biodiversity and beauty. Rural sources of income are needed in order to keep young people from migrating elsewhere. Solution: Introduce ecotourism to small
villages along the Amazon River and generate new employment and income for rural communities. Stakeholders: The Hampshire
Foundation, the village of San Rafael, Comité de Productores Agrarios de la Provincia de Maynas (COPAPMA), the Instituto de Investigaciones del Amazonas Peruano (Research Institute of the Peruvian Amazon), and PADF.
400 people has learned how to manage their own tourism projects and preserve their forest. The program is now a model for other villages along the Amazon River.
Results: The entire community of some
Meet Paulette Payen In community development, leaders come from all walks of life. In La Vallée de Jacmel, located in the mountains of southwestern Haiti, Paulette Payen went from teaching elementary school to teaching a whole city about community-driven development. Paulette first heard about the program on the radio. She was skeptical. “Generally, programs similar to this one fail,” she says. “But I joined out of curiosity. ” The program brings together all of the main civil society groups in the village to form a council; and this council is charged with reviewing local proposals and funding them. In the end, community members select the projects that make the most sense for their communities. Everyone knows Paulette in La Vallée—she taught them and their children to read and write—and everyone knows she never runs out of ideas and energy. Today, she is secretary and
spokesperson of the executive committee that ois Franç
represents more than a hundred community organizations. At the forefront of all her efforts, she works tirelessly for group Paulette Payen is an elementary school teacher at the Sister’s School in La Vallée, and a well-known community leader. Her energy and determination towards community-driven development are helping to bring improvements in areas like education, health, and natural resource management. Today, La Vallée has a new cyber center, radio station, community market, and soil conservation program.
participation and inclusion, effective management, and democratic principles. She also supports women and young people’s participation. “The most important result is that the program has strengthened local community unity,” Paulette says. “Our community can now hope for better days.”
PROG R A M AT A GL A N C E
It was a big challenge for me to initiate something new. Two years later, the effects are significant. Community organizations are strengthened, various projects have been successfully managed, locals can satisfy basic needs, and the community is unified. Now, different villages can meet with each other and find solutions for their same problems. Mme. Paulette Payen, with other community leaders, is a pioneer of this success.
Community-Driven Development in Haiti Challenge: Haiti is the poorest country in the Western Hemisphere. In many communities, basic infrastructure like water, roads, electricity, and sanitation is nonexistent or severely depleted, reinforcing isolation and exclusion.
organizations identify social and economic infrastructure and incomegenerating activities. Then, local councils composed of these same organizations (COPRODEPs) decide priorities, review proposals, and determine financing for projects that are implemented and managed by community organizations.
—Rose-Verlande Muzac, PADF Project Coordinator, Haiti
Driving Change in Haiti
Stakeholders: The World Bank,
Representative Project Development Councils (COPRODEPs), beneficiary communities, PL480 and various government ministries of the Republic of Haiti, and PADF.
decentralized governance and strengthens local civil society, increasing participation and transparency in decision-making. It has provided grants to more than 360 organizations in some of Haiti’s poorest areas. By getting the community to work together toward a common goal, community-driven development can also promote peace and reconciliation.
Results: The program promotes
Impact 2007 A Map of Accomplishments
o Helping over 526,000 persons internally displaced by violence.
o Impacting 5,500 direct and over 15,000 indirect beneficiaries with land access, community participation, and conflict mitigation.
o Providing agricultural solutions, job training and employment generation, micro-business development, and youth development.
o Supporting 49 sub-projects, benefiting 224 institutions, 9 regional government offices, and 74 NGOs.
o Assisting 63,000 people to work in viable agricultural alternatives to coca production.
Regional Civil Society Strengthening
o Delivering vital assistance to over 8,000 indigenous and campesino persons in buffer zones around two national parks.
o Providing material and technical assistance, financial support, and exchanges with hundreds of civil society organizations.
o Aiding 2,000 refugees in border areas with Venezuela, Panama, and Ecuador.
o Implementing highly successful, broad-based information and communication campaigns.
o Coordinating assistance to Afro-Colombian and indigenous communities.
o Distributing 70,000 popular education campaign materials. o Sponsoring training for micro-enterprises.
o Improving livelihoods, infrastructure, and democratic participation for an estimated 640,000 Haitians.
o Reaching more than 2 million beneficiaries in Cuba, Venezuela, and other areas by strengthening civil society groups, promoting democratic principles, and nurturing entrepreneurship.
o Rehabilitating over 40 kilometers of roads, two bridges, and 2.7 kilometers of irrigation canals destroyed by floods.
Disaster Management, Response, and Relief
o Helping 17 communities democratically choose and implement infrastructure projects. o Training over 300 government officials in protecting children against human trafficking. o Training 25 civil protection committees in disaster mitigation and preparedness. o Removing over 250,000 cubic meters of waste through the Clean Streets program.
In the Dominican Republic-Haiti Border Region o Reaching over 100,000 Haitians and Dominicans by strengthening 43 local civil society organizations in the cross-border region. o Leveraging assistance from the private sector, host governments, local communities, and other donors to match USAID funds. o Assisting the Haitian Parliament to create a special border commission that has resulted in a significant increase in funding for the border region.
In El Salvador
o Mitigating, preparing for, and leveraging resources in response to crises and disasters in Colombia, Peru, Bolivia, Costa Rica, Haiti, Honduras, Trinidad & Tobago, El Salvador, Nicaragua, Jamaica, Dominica, and the Dominican Republic. o Training and assisting 30,000 people in 13 community initiatives to improve preparedness for and resistance to natural disasters. o Providing 17,640 persons with shelter, food, and emergency supplies, facilitating agricultural recovery, and providing disaster relief resources throughout the Americas.
In-Kind Donations o Reaching 500,000 direct beneficiaries in Chile, Colombia, Costa Rica, the Dominican Republic, Haiti, Honduras, St. Kitts & Nevis, and Uruguay with medicaldental equipment and tools for training.
Other Private-Sector Projects o Partnering on specialized initiatives that address a wide range of human development needs in Peru, Paraguay, Argentina, and Uruguay, impacting 45,000 beneficiaries.
o Benefiting 20 communities and more than 25,000 students through new classrooms, computer labs, libraries, and other improvements.
Other Programs at a Glance Disaster Management & Relief o Protecting lives and livelihoods and leveraging resources for victims of natural disasters throughout the Caribbean and Latin America. o Facilitating rapid response to natural disasters through the Disaster Management Emergency Response Program (DMERP), an initiative that secures advanced funding from companies like Chevron Corporation, DMERPâ€™s founding partner, in order to deploy immediate assistance when disasters strike.
o Integrating the private sector into all phases of disaster management through the USAID-sponsored Disaster Management Alliance (DMA) Project, which builds partnerships with the Association of American Chambers of Commerce in Latin America (AACCLA) and companies such as BDA Global, Royal Caribbean Cruises Ltd, Cargill/ Grupo Alcon, General Motors, and Citigroup, among others.
o Securing contributions of medical-dental supplies and tools for training, including hospital equipment, computers, and other technology items, as well as disaster recovery supplies, such as food, furniture, and shelter necessities.
o Totaling nearly $2 million (not including in-kind) from corporate and individual donor contributions and impacting an estimated 44,200 people.
o Utilizing PADFâ€™s strong resource network in the United States and partnerships with the OAS and local organizations in the affected countries to ensure that donations are received by those most in need.
o Improving literacy, engaging youth, and assisting communities with the Citigroup Foundation in Colombia, Haiti, and the Dominican Republic. o Building and improving schools with Banco AgrĂcola in El Salvador.
o Improving education, renovating public space, and preserving natural resources with Altria Group Inc. in Brazil, Paraguay, Uruguay, and Argentina. o Providing rapid response to victims of natural disasters by motivating and mobilizing private-sector corporate social responsibility programs through the DMERP and DMA initiatives.
o Improving living conditions for children and youth in partnership with FundaColombia in Colombia.
Partners PUBLIC SECTOR AND MULTILATERAL DONORS AND PARTNERS
PADF is grateful to its many donors and partner organizations, without which we could not carry out
Canadian Embassy in the Dominican Republic
our work. We collaborate with hundreds of local groups, dozens of local and national government agencies, and many international partners. We cannot list them all
Comisión Permanente de Contingencias (COPECO) en Honduras
here, but we express our profound gratitude for their
European Union (EU)
Government of Bolivia 9 Departmental Governments 82 Municipal Governments Instituto Nacional de Reforma Agraria—Santa Cruz (INRA)
Government of Canada Stabilization and Reconstruction Mission (START)
Government of Colombia Cajas de Compensación Familiar de Colombia Fondo Colombiano de Modernización y Desarrollo Tecnológico de las Micro, Pequeñas y Medianas Empresas (FOMIPYME) Ministry of Culture Ministry of Commerce, Industry, and Tourism Ministry of Foreign Relations Ministry of Education Ministry of the Interior and Justice Ministry for Social Protection Municipal Governments throughout Colombia Pequeñas y Medianas Empresas (FOMIPYME) Presidential Agency for Social
Government of the Dominican Republic Dirección General de Desarrollo Fronterizo Dirección Nacional de Ganadería Dominican Institute for Agroforestry Research (IDIAF) National Botanical Garden National Dominican Institute for Hydraulic Resources (INDRHI) National Parliament Secretaría de Estado de Economía, Planificación y Desarrollo (SEEPYD) Secretary for the Environment Secretary of State for External Relations (SEREX) Government of El Salvador 5 Municipal Governments Ministry of Education Protección Civil Government of Haiti 15 Commune Governments in Artibonite 7 Commune Governments in Port-au-Prince Department of Civil Protection Departmental Committees for Civil Protection (Southeast and North) Direction de l’Administration Penitenciere (DAP) Haitian Embassy to the Dominican Republic Metropolitan Service for Solid Waste Collection (SMCRS) Ministry of Economic Affairs and Finances Ministry of the Environment Ministry of Public Works, Transport, and Communication Ministry of Social Affairs Ministry of Justice National Laboratory for Construction and Public Works National Parliament National Water Commission (CAMEP)
PL-480/Title III Management Office Parliamentary Commission for the Development of the Border Permanent Secretary for Risk and Disaster Management Presidential Commission for the Management of the Border Development Fund Secretary of State for Public Security Service d’Entretien des Equipements Urbains et Ruraux (SEEUR) Technical Unit for Implementation (UTE) Unit for Training, Research, and Support for Development
Action and International Cooperation (Agencia Presidencial para la Acción Social y la Cooperación Internacional, ACCIÓN SOCIAL)
Inter-American Development Bank (IDB) Inter-American Foundation Inter-American Institute for Cooperation on Agriculture (IICA) International Monetary Fund (IMF) Civic and Community Relations Program United Nations Development Program (UNDP), Haiti and Colombia Japanese International Cooperation Agency (JICA) Organization of American States (OAS) The World Bank Group U.S. Agency for International Development U.S. General Services Administration and Defense Reutilization and Marketing Offices U.S. Department of State, Bureau of Population Refugees and Migration U.S. Federal Excess Property Program
CORPORATE DONORS AND PARTNERS AES Electric Company, El Salvador Aerocasillas-Aeropost Altria Group, Inc. Asociación Colombiana de Exportadores de Flores (ASOCOLFLORES) Associates in Rural Development Banco Agrícola, S.A., El Salvador BDA Global Boulos Investment Group, Haiti British Petroleum Business Social Development (BSD)
Fundación Colombia para la Educación y la Oportunidad, Colombia General Motors Grand Strand Regional Medical Center Graneros Nacionales, S.A., Honduras Greenberg Traurig, LLP Grupo Lovable, Honduras Karims Group, Honduras Kraft Foods, Inc. La Geo, Honduras Mission Relief Services
Pacific Rim Corporation, El Salvador
Casals & Associates, Inc.
Rio Garment, Honduras
Royal Caribbean Cruises Ltd
Shady Grove Adventist Hospital
Stanford Financial Group
Danaher Tools Fertilizantes del Norte, Honduras
FOUNDATION DONORS AND PARTNERS Brother’s Brother Foundation Charles Delmar Foundation Fundación Mario Santo Domingo Hampshire Foundation Shelby Cullom Davis Foundation William H. Donner Foundation
Bless the Children, Inc. Center for International Private Enterprise (CIPE) Corporación Andina de Fomento (CAF) Fundación Natura Global Impact Hope for a Healthier Humanity International Medical Equipment Collaborative (IMEC)
INTERNATIONAL NGO PARTNERS 19 Salvadoran Hometown Associations in the U.S. Afrolatino Development Alliance (ADA) Aid to Artisans (ATA)
Red Cross in Honduras, El Salvador, Costa Rica, Dominican Republic
Seismic Network and University of Puerto Rico in Mayaguez, Haiti Campus
Philippe R. Armand
United Way World Wildlife Foundation (WWF)
CHAMBERS OF COMMERCE AND BUSINESS ASSOCIATIONS
Organización Negra Centroamericana—ONECA
American Chamber of Commerce in Haiti, El Salvador, Honduras, and Colombia
Pan American Medical Society of Washington, D.C.
Asociación Nacional de Industriales (ANDI), Colombia
Purdue University, Haiti
Association of American Chambers of Commerce in Latin America (AACCLA) Asociación Salvadoreña de Ingenieros y Arquitectos (ASIA), El Salvador Asociación de Hoteles y Proyectos Turísticos del Este, Dominican Republic NASSA Group, Haiti
Francisco Aguirre Kathleen C. Barclay Geoffrey Bible Virginia Bocage Juan M. Canahuati John Coleman Maston Cunningham Sam Del Brocco Arthur G. Dohrman Andres Estrada James Fendell Björn Fischer Thomas Gales William D. Gambrel Christine Gillion Francis D. Gómez Donna J. Hrinak Eleanor Jones Colen G. and Laura Elaine Kennell Berny Kreutz Whitney M. MacEachern
NATIONAL AND LOCAL NGO PARTNERS
Carlos Mariño García
PADF works with hundreds of NGO’s throughout the region. Although they are too numerous to list here, we are indebted to all of them for their participation in our work in 2007.
Robert M. McGee James Michel Pablo Gabriel Obregón Santo Domingo José Felix Palma Alfred P. Pavot Paul A. Ramsey H. John Schutze Alexander F. Watson Curtin Winsor, Jr. Anita Winsor-Edwards Howard F. Zuckerman
Board of Trustees Officers José Miguel Insulza, Chairman Secretary General, Organization of American States Albert R. Ramdin, Vice Chairman Assistant Secretary General, Organization of American States Ambassador Alexander F. Watson, President Managing Director, Hills & Company Carlos Mariño García, First Vice President President, Avantel, S.A. Ambassador James Michel, Second Vice President Senior Counsel, DPK Consulting William D. Gambrel, Treasurer Past President, BankBoston, Colombia Past AACCLA President Philippe R. Armand, Secretary Chairman & CEO, Groupe Dynamic, S.A. (Haiti)
Board Members Alejandro Aguirre Deputy Editor & Publisher, Diario Las Américas Kathleen C. Barclay President of AACCLA Principal, Asesorías KCB, Ltda. Marilyn Blanco-Reyes Managing Director, Legal and Government Affairs—Latin American and Caribbean Division, Federal Express Corporation Reginald Boulos, M.D. Chairman and CEO, Boulos Investment Group Juan M. Canahuati President & CEO, Grupo Lovable Howard Chase Director, European Government Affairs, British Petroleum Europe Ambassador Jorge Crespo Velasco Former Ambassador of Bolivia Past Executive Director, InterAmerican Development Bank
October 1, 2006 – September 30, 2007
Enrique Cueto CEO, LAN Airlines S.A.
Rodolfo Schildknecht Past President, Banco Agrícola
Maston N. Cunningham Past PADF Treasurer Past AACCLA President Past President, Occidental Petroleum in Ecuador and Peru
Aaron S. Williams Vice President of International Business Development, RTI International
Sam Del Brocco President, PCI Communications, Inc.
Anita Winsor-Edwards Trustee, William H. Donner Foundation
Pedro T. Esteva Chairman & CEO, Implementos y Maquinarias C por A (IMCA)
Howard F. Zuckerman Past CFO, Iusacell— Bell Atlantic/Mexico
James Fendell President, Aerocasillas—Aeropost
Thomas Gales Vice President, Latin America Division, Caterpillar, Inc.
Francisco Aguirre Co-Publisher, Diario Las Américas Frank Aldrich
Frank D. Gómez Past PADF President U.S. Foreign Service Officer (Ret.)
Howard J. Chase Director, European Government Affairs, BP Europe
Nadine Hogan President, Hogan and Associates
Ruth Espey-Romero Past PADF President Shareholder, Greenberg-Traurig LLP
Ambassador Donna J. Hrinak Director, Corporate & Government Affairs—Latin America, Kraft Foods Eleanor Jones Managing Director & Consulting Principal, Environmental Solutions Ltd. (ESL) Whitney M. MacEachern Director of Social Responsibility and Community Relations, Citigroup Latin America & the Caribbean Robert M. McGee Past PADF President President, Occidental International Corporation Yolanda Mellon-Suarez Chief of Staff, Stanford Financial Group Ali Moshiri President, Chevron Latin America Pablo Gabriel Obregón Santo Domingo President of the Board of Directors, Fundación Mario Santo Domingo Paul A. Ramsey, Ph.D. Senior Vice President, International Division, Educational Testing Service
L. Ronald Scheman Past PADF President and Executive Director Senior Advisor, Kissinger McLarty Associates R. Danny Williams Chairman, Ravers Limited (Jamaica) Ambassador Curtin Winsor, Jr. Trustee, William H. Donner Foundation
OAS Secretaries General and Chairmen José A. Mora, 1962-1968 Galo Plaza, 1968-1975 Alejandro Orfila, 1975-1984 João Clemente Baena Soares, 1984-1994 César Gaviria 1994-2004 Miguel Angel Rodríguez, 2004 Luigi R. Einaudi, Acting, 2004 José Miguel Insulza, 2005-present
William Kimberly Naztec, LLC
William Sanders, 1962-1972 T. Graydon Upton, 1972-1977 L. Ronald Scheman, 1977-1983 R. I. Jervis Jones, 1983-1985 Leveo Sanchez, 1985-1988 J. John Jova, 1988-1990 Robert M. McGee, 1990-1992 George M. Kroloff, 1992-1995 Jorge Ríos, 1995-1997 Jack Heller, 1997-2000 Alexander F. Watson, 2000-2002 Francis D. Gómez, 2002-2004 Ruth Espey-Romero, 2004-2006 Alexander F. Watson, 2006-Present
Guy A. Lavigueur (Canada)
William D. Gambrel Past President, BankBoston, Colombia Past AACCLA President Kenneth Gordon Chairman, Caribbean Communications Networks (Trinidad and Tobago) Jack Heller Past PADF President Partner, Heller & Rosenblatt
Antonio López de Silanes Chairman & CEO, Laboratorios Silanes (México) Robert Moore Former Counsel, International Banana Association Jeannie Mulford Essex House (U.K.) Roberto Murray Meza President, La Constancia, S.A. (El Salvador)
L. Ronald Scheman, 1962-1968 Sy Rotter, 1968-1974 Norman Goijberg, 1974-1977 Michael D. Miller, 1977-1980 Edward Marasciulo, 1980-1988 Marvin Weissman, 1988-1990 Peter Reitz, 1990-1997 Frederick Schieck (acting), 1997-1998 Sarah Horsey-Barr, 1998-1999 Robert Moore (acting), 1999 John Sanbrailo 1999-present
October 1, 2006 – September 30, 2007
WASHINGTON , DC John Sanbrailo Executive Director Amy Coughenour Betancourt Deputy Director Terrence Brown Senior Operations Director Christine Bognar Director, Trustee Relations and Development Dale Crowell Director of Communications Lynette Lara Snyder Director of Human Resources Julieta Varron Grants & Contracts Manager William O’Callaghan Director of Finance Diego Correa Deputy Director of Finance
Marc Wachtenheim Program Director Corrie Drummond Program Manager, Transnational Programs Emily Greenspan Program Manager Valeria Merino-Dirani Senior Civil Society Advisor Maria Luisa Villegas Program Manager
Daniel O’Neil Country Director
Cecilia Debonadona Project Director
Joseph Félix Technical Director, Border Project
María Eugenia Vera Vargas Project Director
Cesáreo Guillermo Veloz Regional Director, Dominican Republic
Plus 8 additional staff
CENTRAL AMERICA Plus 3 additional staff
SO U TH AMERICA Plus 13 additional staff
CARIBBEAN Haiti John Currelly Country Director Amanda Rodriguez Deputy Director of Operations
Colombia John Heard Country Director (until June 2007) Max Goldensohn Country Director (as of May 2007) William Greenwood Deputy Country Director Patricia Manyari Director of Finance
Walter Cortes Controller (until July 2007)
Claude Labossiere Director, Finance and Administration
Emily Saab Controller (as of August 2007)
Arsel Jerome Project Director, Local Governance
Gilberto Amaya Deputy Director for Afro-Colombian and Indigenous Affairs and Special Projects
Sandra Perez Office Manager
Frantz Joseph Programs Director
Gloria Nelly Acosta Director, IDP Program
Holly Flood Director, South America Programs
Alphonse Nkunzimana Project Director, Protecting Human Rights Project
Ricardo Amaya Director, Alternative Development Program
Erick Déryce Programs Director
Héctor Cortés Director of Administration
Christine Herridge Director, Disaster Management
Frantz Benoit Project Director, PRODEPPAP
Pilar Heraud Director, In-Kind Donations
Marcorel St-Elien Project Director, PRODEP
Fanny Jorge Director of the Department of Grants, Contracts, and Legal Services
Michelet Fontaine Regional Director, Caribbean Programs
Plus 90 additional staff
Luis Antonio Ordóñez Director of Communications and Corporate Relations Plus 160 additional staff
El Salvador Reina de Paniagua Project Director, Manos Unidas por El Salvador Plus 3 additional staff
for the year ended September 30, 2007
To the Board of Directors Pan American Development Foundation Washington, D.C. We have audited the accompanying balance sheet of Pan American Development Foundation (the Foundation) as of September 30, 2007, and the related statements of activities, functional expenses and cash flows for the year then ended. These financial statements are the responsibility of the Foundationâ€™s management. Our responsibility is to express an opinion on these financial statements based on our audit. The prior yearâ€™s summarized comparative information has been derived from the 2006 financial statements of the Foundation, which were audited by other auditors whose report, dated December 12, 2006, expressed an unqualified opinion on those statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit and the report of the other auditors provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Pan American Development Foundation as of September 30, 2007, and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.
McGladrey & Pullen Certified Public Accountants Vienna, Virginia May 19, 2008
Statement Of Activities
Year Ended September 30, 2007 (With Comparative Totals For 2006) 2007 Temporarily 2006 Unrestricted Restricted Total Total
Support and Revenue Grants $ 43,055,704 $ 1,125,627 $ 44,181,331 $ 33,602,561 In-kind contributions — 2,498,138 2,498,138 3,896,590 Individual and corporate contributions 1,079,616 — 1,079,616 1,152,920 Subcontract revenue 262,697 12,000 274,697 838,318 Shipping reimbursables/subsidies — 122,100 122,100 142,127 Program income 86,144 — 86,144 41,077 Other income 283,031 16,626 299,657 903,580 Net assets released from restrictions: Satisfaction of program restrictions 2,912,853 (2,912,853) — — Total support and revenue 47,680,045 861,638 48,541,683 40,577,173 Expenses Program services: Creating Economic Opportunities 31,097,752 Promoting Social Progress 5,609,826 Strengthening Communities and Civil Society 4,119,239 Responding to Natural Disasters 1,643,236 Total program services 42,470,053 Supporting services: Management and general 4,957,626 Development 282,133 Total supporting services 5,239,759
— 4,957,626 4,142,623 — 282,133 92,812 — 5,239,759 4,235,435
Total expenses 47,709,812 Increase (decrease) in net assets (29,767)
— 47,709,812 40,532,415 861,638 831,871 44,758
— 31,097,752 — 5,609,826 — 4,119,239 — 1,643,236 — 42,470,053
18,945,713 4,596,619 6,636,714 6,117,934 36,296,980
Net Assets Beginning 2,414,071 671,328 3,085,399 3,040,641 Ending $ 2,384,304 $ 1,532,966 $ 3,917,270 $ 3,085,399
Creating Economic Opportunities 65.18%
Development 0.59% Management and General 10.39%
Promoting Social Progress 11.76% Responding to Natural Strengthening Disasters 3.44% Communities and Civil Society 8.63%
sources of revenue 2007 Grants 91.465%
Other Income 0.170% Program Income 0.177% Subgrant Revenue 0.566%
Individual and Corporate Contributions 7.370% Shipping Reimbursements and Subsidies 0.252%
Statement Of Functional Expenses Year Ended September 30, 2007 (With Comparative Totals For 2006) 2007 Program Services Supporting Services Creating Promoting Strengthening Responding Total Total Economic Social Communities to Natural Program Management Supporting Total Opportunities Progress and Civil Society Disasters Services and General Development Services Total 2006
PVO subproject expense $24,501,395 $2,104,602 $1,335,579 $1,063,713 $29,005,289 $— $— $— $29,005,289 $19,661,477 Salaries and benefits 4,352,060 452,326 1,164,087 429,648 6,398,121 2,650,192 142,082 2,792,274 9,190,395 8,881,845 Operations and material support 1,617,166 2,961,652 967,825 58,684 5,605,327 1,443,612 43,170 1,486,782 7,092,109 9,329,432 Travel and related expenses 506,851 7,687 197,417 63,436 775,391 242,250 42,522 284,772 1,060,163 724,087 Consultants and professional fees 65,341 3,226 335,732 15,511 419,810 490,115 54,359 544,474 964,284 1,076,884 Telephone 17,887 2,903 50,603 224 71,617 62,096 — 62,096 133,713 74,280 Shipping and related expenses 695 66,916 34,882 9,170 111,663 17,319 — 17,319 128,982 44,531 Project vehicles and equipment 36,357 10,514 12,141 2,850 61,862 52,042 — 52,042 113,904 548,433 Conference and meetings — — 20,973 — 20,973 — — — 20,973 23,692 Other — — — — — — — — — 167,754 Total expenses $31,097,752 $5,609,826 $4,119,239 $1,643,236 $42,470,053 $4,957,626 $282,133 $5,239,759 $47,709,812 $40,532,415
Notes to the Financial Statements
Balance Sheet September 30, 2007 (With Comparative Totals For 2006)
Assets Cash and Cash Equivalents $ 9,032,658 $ 6,978,738 Investments—Strategic Development Fund 722,226 869,590 Accounts and Grants Receivable 2,253,873 535,188 Advances to Subcontractors 797,370 664,778 Prepaid Expenses and Other Assets 367,046 464,396 Undesignated Donated Goods, net 1,002,506 228,791 Property and Equipment, net 166,107 180,748 $ 14,341,786 $ 9,922,229 Liabilities And Net Assets Liabilities Accounts payable and accrued expenses $ 2,064,792 $ 832,991 Refundable advances—non-federal 3,084,676 1,950,579 Refundable advances—federal 5,275,048 4,053,260 10,424,516 6,836,830 Commitments and Contingencies (Notes 6 and 7) Net Assets Unrestricted 2,384,304 2,414,071 Temporarily restricted 1,532,966 671,328 3,917,270 3,085,399 $ 14,341,786 $ 9,922,229
Statement Of Cash Flows Year Ended September 30, 2007 (With Comparative Totals For 2006)
Cash Flows From Operating Activities Change in net assets $ 831,871 $ 44,758 Adjustments to reconcile change in net assets to net cash provided by operating activities: Depreciation and amortization 67,635 72,914 Allowance for obsolete donated goods 193,868 — Donated goods (2,498,138) (3,896,590) Loss on disposal of property and equipment — 33,816 Changes in assets and liabilities: (Increase) decrease in: Accounts and grants receivable (1,718,685) 7,429 Advances to subcontractors (132,592) 325,994 Prepaid expenses and other assets 97,350 253,895 Undesignated donated goods 1,530,555 4,195,980 Increase (decrease) in: Accounts payable and accrued expenses 1,231,801 (80,267) Refundable advances 2,355,885 3,915,865 Net cash provided by operating activities 1,959,550 4,873,794 Cash Flows From Investing Activities Proceeds from sale of investments of 429,666 214,800 Strategic Development Fund Purchases of investments of (282,302) (353,238) Strategic Development Fund Purchase of property and equipment (52,994) (66,870) Net cash provided by (used in) investing activities 94,370 (205,308) Net increase in cash and cash equivalents 2,053,920 4,668,486 Cash And Cash Equivalents Beginning 6,978,738 2,310,252 Ending $ 9,032,658 $ 6,978,738 Supplemental Schedule of Noncash Operating Activities Donated goods
Note 1. Nature Of Activities And Significant Accounting Policies Nature of activities: Created in 1962 through a unique agreement between the Organization of American States (OAS) and the private sector, the Pan American Development Foundation (the Foundation) is an independent, non-profit organization incorporated in Washington D.C., that creates publicprivate partnerships to assist the least advantaged people in Latin America and the Caribbean. The Foundation engages community-based groups, nongovernmental organizations (NGOs), municipal governments and the private sector in the process of implementing appropriate solutions for sustainable development. Through these partnerships, the Foundation seeks to achieve excellence and lasting programmatic impact in creating economic opportunities; promoting social investments; strengthening communities and civil society; and responding to natural disasters. These activities are funded primarily through United States government contracts and non-federal grants and contributions. A summary of the significant accounting policies of the Foundation follows: Basis of accounting: The accompanying financial statements are presented in accordance with the accrual basis of accounting, whereby, revenue is recognized when earned and expenses are recognized when incurred. Basis of presentation: The financial statement presentation follows the recommendation of the Financial Accounting Standards Board in its Statement of Financial Accounting Standards (SFAS) No. 117, Financial Statements of Not-for-Profit Organizations. Under SFAS No. 117, the Foundation is required to report information regarding its financial position and activities according to three classes of net assets: unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets. There were no permanently restricted net assets at September 30, 2007. Cash and cash equivalents: For purposes of the statement of cash flows, the Foundation considers all highly liquid instruments which have an original maturity of three months or less, to be cash and cash equivalents. Financial risk: The Foundation maintains its cash in bank accounts which, at times, may exceed federally insured limits. The Foundation has not experienced any losses on such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. At September 30, 2007, the Foundation maintained cash deposits totaling $6,847,952 in Latin America and the Caribbean, which are not insured and are subject to foreign currency fluctuation and potential bank failure. The Foundation periodically assesses the financial condition of the institutions and believes that the risk of any loss is minimal. The Foundation invests in a professionally managed portfolio that contains money market funds and preferred securities. Such investments are exposed to various risks such as market and credit. Due to the level of risk associated with such investments and the level of uncertainty related to changes in the value of such investments, it is at least reasonably possible that changes in risks in the near term could materially affect investment balances and the amounts reported in the financial statements. Investments—Strategic Development Fund: The Strategic Development Fund consists of money market and preferred securities and is carried at
fair market value, as based upon quoted market prices, as of September 30, 2007. Unrealized gains and losses are included in other income in the accompanying statement of activities. Advances to subcontractors: Advances to subcontractors, in most cases, consist of amounts provided to subcontractors of $250,000 or more to execute project objectives within a three month period. Receivables: Receivables are carried at original invoice amount less an estimate made for doubtful receivables based on a review of all outstanding amounts on a quarterly basis. Management determines the allowance for doubtful accounts by identifying troubled accounts and by using the historical experience applied to an aging of accounts. Receivables are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. There was no provision for doubtful accounts at September 30, 2007. Undesignated donated goods: Donated goods consist of donated health service equipment and tools inventory and are valued at fair market value at the date of donation. The inventory is capitalized until such time as it is distributed for its particular purpose, at which point it is expensed. Property and equipment: Property and equipment are being depreciated using the double-declining method over estimated useful lives of three to five years, with no salvage value. Expenditures for major repairs and improvements are capitalized; expenditures for minor repairs and maintenance costs are expensed when incurred. Upon the retirement or disposal of assets, the cost and accumulated depreciation are eliminated from the respective accounts and the resulting gain or loss is included in revenue or expenses. The cost and accumulated depreciation at September 30, 2007, was $658,826 and $492,719, respectively. Classification of net assets: The net assets of the Foundation are reported as follows: • Unrestricted net assets represent the portion of expendable funds that are available for support of the Foundation’s operations. • Temporarily restricted net assets are restricted by grantors for specific purposes. Support and revenue recognition: The Foundation has grants with U.S. government agencies and foreign governments in exchange for services. Support and revenue from the grants, which is recognized as costs are incurred on the basis of direct costs plus allowable indirect costs. Grant awards received but not yet expended for the purpose of the grant are reflected as refundable advances in the accompanying balance sheet. The Foundation reports contributions as temporarily restricted support if they are received with donor or grantor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Financial contributions to support the shipping of health supplies and tools and equipment are recorded as shipping reimbursements/subsidies in the accompanying statement of activities. The Foundation reports contributions of health supplies and tools as temporarily restricted support when received as these goods are received
with donor stipulations that limit their use. When the goods are designated by the Foundation to a potential recipient, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the statement of activities as net assets released from restrictions. Functional allocation of expenses: The Foundation charges salaries to various programs and supporting services based upon the actual amount of time worked in each area. Fringe benefits and indirect costs are allocated to various programs based on total direct salaries and total direct costs, respectively. Transactions in foreign currencies: The Foundation has field offices in various foreign countries which transact business using the local currency of the country in which the field office is located. Management of the Foundation has determined that the functional currency, as well as the reporting currency of the Foundation and each of the field offices is the U.S. dollar. Accordingly, gains and losses from changes in exchange rates between the functional currency, or the U.S. dollar, and the currency in which the transaction is denominated are recorded as foreign currency transaction gains or losses, as appropriate. Income taxes: The Foundation is generally exempt from federal income tax under the provisions of Section 501(c)(3) of the Internal Revenue Code. Income, which is not related to exempt purposes, less applicable deductions, is subject to federal and state corporate income taxes. The Foundation had no unrelated business income tax liability for the year ended September 30, 2007, since the Foundation did not have significant unrelated business income. Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Prior year information: The financial statements include certain prior year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Foundation’s financial statements for the year ended September 30, 2006, from which the summarized information was derived. Upcoming accounting pronouncements: In July 2006, the Financial Accounting Standards Board (“FASB”) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes (“FIN 48”). FIN 48 prescribes a minimum threshold for financial statement recognition of the benefit of a tax position taken or expected to be taken by a filer in the filer’s tax return. FIN 48 will become effective for the fiscal years beginning after December 15, 2007. The Foundation has not yet determined the impact of the adoption of FIN 48 on its financial statements.
Note 2. Strategic Development Fund Investments The fair market value of investments in the Strategic Development Fund as of September 30, 2007, consists of the following: Preferred securities $ 625,000 Money funds (UBS Cash Fund) 97,226 $ 722,226
The Strategic Development Fund earned investment income of $50,100 during the year ended September 30, 2007.
Note 3. Undesignated Donated Goods Undesignated donated goods consist of the following inventory on hand as of September 30, 2007: Tools and equipment $ 1,253,374 Allowance for obsolete inventory (250,868) $ 1,002,506
Note 4. Temporarily Restricted Net Assets Temporarily restricted net assets at September 30, 2007, are available for the following programs: Balance Balance September 30, September 30, 2006 Additions Releases 2007 Promoting Social Progress Strengthening Communities and Civil Society Creating Economic Opportunities Responding to Natural Disasters
$195,367 $2,853,234 $1,979,897 $1,068,704 220,527 636,439 653,215 203,751 215,202 110,276 180,913 144,565 40,232 174,542 98,828 115,946 $671,328 $3,774,491 $2,912,853 $1,532,966
Note 5. Employee Retirement Plans The Foundation maintains a defined contribution retirement savings plan for all qualified employees who have met certain length of service requirements. The Foundation makes contributions in an amount which equals 10% of all full-time permanent employees’ base salaries. These contributions are immediately vested. Upon termination, death, or retirement, employees are entitled to the current value of the contributions in their accounts. Retirement savings plan expense totaled $166,718 for the year ended September 30, 2007, and is included in salaries and benefits in the accompanying statement of functional expenses.
Note 6. Commitments And Contingencies Provisional indirect cost rates: Billings under cost-reimbursable government grants are calculated using provisional rates that permit recovery of indirect costs. These rates are subject to audit on an annual basis by the Foundation’s cognizant agency. The audit results in the negotiation and determination of the final indirect cost rates which may create a liability for indirect cost recovery billed in excess of the actual rates or may allow for additional billings for unbilled indirect costs. The Foundation has instructed its independent auditors to audit the costs related to U.S. government funds for the year ended September 30, 2007, in accordance with Circular A-133 issued by the U.S. Office of Management and Budget (OMB). USAID has yet to audit the rate for the year ended September 30, 2007. Management believes that matters arising from USAID’s review of the independent auditor’s report for 2007 will not have a material effect on the financial position of the Foundation. Operating lease: The Foundation has a ten year, non-cancelable operating lease with the Organization for American States (See Note 8) for office space which commenced on April 1, 2004. During 2005, an amendment was made
to incorporate additional space. The lease was again modified in 2006 to account for CPI increases in the Washington D.C. area. The future minimum payments due under this lease are as follows: Years Ending September 30, 2008 $ 261,527 2009 261,527 2010 261,527 2011 261,527 2012 261,527 2013 and 2014 370,496 $ 1,678,131
Rent expense for the year ended September 30, 2007, was $291,345. Federal awards: The Foundation participates in a number of federally assisted grant programs, which are subject to financial and compliance audits by the federal agencies or their representatives. As such, there exists a contingent liability for potential questioned costs that may result from such an audit. Management does not anticipate any significant adjustments as a result of such an audit.
Note 7. Concentrations Of Credit Risk Major federal grantor: During 2007, the Foundation earned grant revenue of $38,131,302 through direct grants and pass-through grants from the U.S. Government. The U.S. Government grant funding was predominantly from the United States Agency for International Development (USAID). Revenue earned from USAID represented approximately 78% of the total revenue recognized by the Foundation for the year ended September 30, 2007. Foreign operations: The Foundation has field offices in various developing countries, namely Colombia, Haiti, Dominican Republic, Venezuela, El Salvador and Bolivia, which work with USAID and World Bank representatives and with corporate donors, local groups and NGOs on various programs for the purpose of providing assistance to persons displaced by violence, vocational training for low-income people, agro forestry programs to promote soil conservation and reforestation, providing medical equipment and supplies to health care facilities throughout the regions, providing tools for vocational training addressing the most critical needs of disaster victims and to better prepare them for future natural disasters. The future results of these programs could be adversely affected by a number of potential factors such as currency devaluations or changes in the political climate.
Note 8. Related Party Transactions The Foundation, while separate from the Organization of American States (OAS), has a working agreement with OAS (approved by the OAS General Assembly) under which the Foundation received during the year ended September 30, 2007, a grant of $132,500, consisting of $99,375 for general support and $33,125 in temporarily restricted support. In addition, under the agreement, the Permanent Council of the OAS appoints a representative to the Foundation’s Executive Committee and two of the 30 trustees of the Foundation are officials of the OAS General Secretariat.
How You Can Help Your Donations Make a Difference From individual donations to corporate partnerships, a range of contribution sources enhances PADF’s ability to reach those most in need of support. Government and multilateral donors, foundations, private companies, and people like you are all necessary to facilitate our work throughout the hemisphere.
We Are an Ideal Mechanism for Social Responsibility Programs PADF provides an excellent mechanism and innovative models through which corporations and foundations can address critical development and disaster management needs throughout Latin America and the Caribbean. With transparent management, proven methodology, and essential relationships that facilitate and mobilize contributions effectively, PADF’s corporate social responsibility options maximize your company’s impact and visibility.
We Welcome the Opportunity to Partner With You If you represent a corporation that is interested in making social investments in Latin American or Caribbean countries, PADF wants to partner with you. We will show you how to maximize the impact of your resources—both for your corporation and local beneficiaries. If you are a foundation or an international agency, PADF can help you further your hemispheric objectives through innovative community-based programs. For more information, please call PADF’s Development Office at (202) 458-3969 or e-mail firstname.lastname@example.org.
Your Contributions are Tax-Deductible PADF is a registered 501(c)(3) organization. Contributions made to PADF are tax-deductible under U.S. law. Applicability of these laws can vary, so donors are encouraged to seek tax advice. In other countries, tax laws should be consulted concerning the deductibility of a gift.
Ways to Give to PADF: Online Donations Donate online at www.padf.org Check and Money Order Send to: PADF, 1889 F Street NW, 2nd Floor, Washington, DC 20006. Planned Giving Bequests can be made to PADF through a donor’s will or living trust. Please contact us for more information. Other Donations Donations of stock, appreciated real estate, property, insurance, or trusts can be made to PADF in support of its programs. Please contact us for more information. For more information, please contact: The Pan American Development Foundation 1889 F Street NW, 2nd Floor Washington, DC 20006 Phone: 202-458-3969 email: email@example.com
Our Vision A Hemisphere of Opportunity for All Our Mission The Pan American Development Foundation empowers disadvantaged people and communities in Latin America and the Caribbean to achieve sustainable economic and social progress, strengthen their communities and civil society, and prepare for and respond to natural disasters and other humanitarian crises, thereby advancing the principles of the Organization of American States. Our Values We are committed to…
back cover photo karl grobl
RESULTS—sustainable, concrete outcomes appropriate for the local context INNOVATION—creativity, entrepreneurship, and willingness to take calculated risks to achieve high levels of success EMPOWERMENT—valuing local capacity and knowledge and respecting all stakeholders in the development process EXCELLENCE—striving for the highest standards of performance in everything we do TEAMWORK—leadership, open and effective communication, personal and professional growth, and respect for others ACCOUNTABILITY—transparency, integrity, and responsibility in our operations and all our interactions INTER-AMERICAN COOPERATION—identification with the principles of cooperation and solidarity of the Organization of American States
A proud affiliate of the Organization of American States
PAN AMERICAN DEVELOPMENT FOUNDATION
1889 f Street NW, 2nd floor Washington, DC 20006 TEL 202-458-3969 Fax 202-458-6316 PADF-DC@PADF.org www.PADF.org