AMAZONAS BRAZIL NORTHERN ARGENTINA ANTIGUA BARBUDA ANTIOQUIA COLOMBIA BAHIA

AMAZONAS, BRAZIL NORTHERN ARGENTINA ANTIGUA & BARBUDA ANTIOQUIA, COLOMBIA BAHIA, BRAZIL BELIZE BRASÍLIA, BRAZIL CEARÁ, BRAZIL CHIAPAS, MÉXICO CHILE SERGIPE, BRAZIL COAHUILA, MÉXICO COCHABAMBA, BOLIVIA COLIMA, MÉXICO COSTA RICA CUENCA & GUAYAQUIL, ECUADOR CHIHUAHUA, MÉXICO DOMINICA DOMINICAN REPUBLIC DURANGO, MÉXICO EASTERN BOLIVIA EL SALVADOR ESPIRITO SANTO, BRAZIL GRENADA GUANAJUATO, MÉXICO GUATEMALA GOIÁS, BRAZIL GUERRERO, MÉXICO GUYANA HAITI PARAÍBA, BRAZIL HONDURAS JALISCO, MÉXICO JAMAICA LA PAZ & ALTIPLANO, BOLIVIA MARANHÃO, BRAZIL THE GIFT OF TIME PA RT N E R S O F T H E A M E R I C A S | 2 0 0 4 A N N U A L R E P O RT TENNESSEE SOUTHERN CALIFORNIA GREATER ROCHESTER, NY MASSACHUSETTS EASTERN PENNSYLVANIA MICHIGAN WASHINGTON, DC NEW HAMPSHIRE NEW MEXICO WASHINGTON RHODE ISLAND TEXAS NORTH CAROLINA OKLAHOMA OREGON IDAHO OKLAHOMA DUTCHESS COUNTY, NY MICHIGAN ARIZONA ARKANSAS LOUISIANA WEST VIRGINIA BROOME COUNTY, NY TEXAS ALABAMA WYOMING TEXAS MISSISSIPPI NEW JERSEY CONNECTICUT VERMONT OKLAHOMA WESTERN NEW YORK UTAH WESTERN PENNSYLVANIA from the chair and president Dear Friends, What’s the most precious commodity in the world? Gold? Technology? Compassion? Ask anyone for whom resources are abundant and you get the answer: time. With time and money, you can buy commodities. With time and perseverance, you can develop knowledge. With time and commitment, you can deepen your personal outreach to others. Time is at the heart of Partners. Forty years of work in the Americas has allowed us to know who we are, what we do and how we do it. It has given our partnerships three generations to deepen relationships between their Northern and Southern chapters, to expand opportunity across the Americas. Our anniversary convention in Antigua, Guatemala, was a stirring recognition of four decades of contributions to international understanding. Our volunteers’ energy is Partners’ most treasured asset, and this report celebrates their outstanding contributions. Our unprecedented Partners Counts initiative valued the time a small portion of our volunteers gave in just over six months at more than $1.2 million. However, we have only begun to establish the true value of our members’ contributions. The time and expertise of our international staff is a powerful means of pursuing our mission, as our remarkable portfolio demonstrates. The reputation of our Center for Civil Society is well established, and we will see new centers opened in the coming year. But time not only measures our past, it defines our future. We cannot let more time pass without steadfastly recognizing that the nations of this hemisphere are one another’s backyard, regardless of the press of current crises or the pace of globalization. We cannot fail to dedicate ourselves to the search for international understanding that can shift the headlines from the management of conflict to the building of peace. And we cannot forget that our time, energy and commitment are the most precious personal contributions we can make to a better world for those who come after us, in this hemisphere and beyond. It is with great pride that we present this report of the activities of Partners of the Americas for our 40th anniversary year of 2004. DIALOGUE. ACC BALDONEDO NAPOLEÃO | CHAIR, BOARD OF DIRECTORS MALCOLM BUTLER | PRESIDENT AND CEO “ Partners has not sat back, waiting for governments to solve problems. Instead, you’ve taken the initiative and shown leadership. You’ve been in the vanguard of people-to-people diplomacy. You’ve chosen sectors where you can touch people’s lives and make a real difference— and you’ve done that.” —JOHN HAMILTON U.S. AMBASSADOR TO GUATEMALA CESS. INSPIRATION. EXPERIENCE. RENEWAL. Partners of the Americas extends a chance for progress where possibilities don’t appear to exist. Forty years, more than 50,000 volunteers. Borders dissolve. We give, and we stay. accomplishments Inter-American Democracy Network (IADN) This USAID-supported group was founded by Partners in 1995 to help CSOs advance democracy and citizen participation. The largest such network in the Americas, the IADN grew from 260 civil society member organizations in 2003, to 392 organizations representing 24 countries in 2004. Through Partners’ “Transparency in the Americas” grant program, IADN members advocated for greater accountability in government budgetary processes. Through 149 CSOs, the program educated 12,000 citizens in how to identify local needs and work with government officials to allocate resources to meet those needs. They also distributed information, monitored budgetary processes and consulted with leaders. News of such efforts was featured in the IADN’s INFORID, a civil society news service launched in 2004. INFORID produced some 200 articles reaching nearly 4,000 news agencies, government officials and CSOs from Canada to Argentina. Summit of the Americas Partners’ Center for Civil Society further increased citizen participation in the Summits of the Americas—periodic meetings of leaders from 34 countries in the Americas to discuss concerns and seek solutions for the region’s development. Funded by the OSI Development Foundation and in collaboration with Partners volunteers, non-governmental and community organizations, Partners held public forums in six U.S. cities to deliberate on Summit issues relevant to local communities. In 2005, Partners will publish the key findings from these forums and distribute them throughout the region. Partners also will launch the firstever online deliberative dialogues for CSOs in the Americas from which participants will create a shared hemispheric agenda to present at the 2005 Summit. Colombians Assisting Colombians (CAC) In 2004, Partners strengthened the capacity of local governments in Colombia to respond to citizens, boosted citizen involvement and grew a successful micro-credit program in 15 municipalities in Valle del Cauca and Tolima. In a country where 45 years of conflict have left a drought in economic opportunities and undermined trust in government, Partners’ Colombianos Apoyando Colombianos, or CAC program, works to create social capital, democratic skills and economic opportunities. The program assisted government and community entities to create municipal development plans and address public budgeting and oversight. The program also involved more than 20,000 citizens in participatory budgeting processes to identify, prioritize and respond to local needs. CAC made more than 3,000 loans to family enterprises and engaged 1,000 youth in Youth Municipal Councils, helping build civic participation in a new generation of Colombians. Citizens Working for Justice in Bolivia Partners’ Ciudadanos Trabajando por la Justicia program helps increase Bolivians’ access to the justice system, their understanding of procedures related to the country’s new criminal code, and the role Active civil society organizations (CSOs) —interest, service and advocacy groups—are central to a stable democracy. Partners of the Americas has shown that of citizens as advocates for justice reform. lations that are frequent victims of crime, In 2004, the program established 30 Funded by USAID, the program targets popuincluding women, the indigenous and poor. centers for free legal services and support for crime victims, serving nearly 26,000 nationwide. Through its Justice and Participation Network, which is comprised of more than 100 Bolivian CSOs, the program succeeded in making more transparent the process of Council and Supreme Court. designating officials to posts in the Judicial Colombia Justice Sector Reform In Colombia, Partners leads the citizen participation component in the Administration of Justice Checchi and Co. The program strengthens public defense services, increases access to justice by developing justice houses Program funded by USAID and managed by DIAL it doesn’t take decades to make a difference. Established in early 2004, Partners’ Center for Civil Society has strengthened the capacity of hundreds of CSOs to participate in decisionmaking efforts, and led governments to open spaces for citizen participation in key political processes. throughout the country, and promotes conflict mediation and the use of oral argument in trials. Partners ensures the integration of civil society in the development of this new justice system, a critical component to its success. In 2004, Partners worked with Justice House officials and citizens to develop joint community-government plans to shape how Justice Houses might best work to prevent conflict, promote access to justice and respond to community needs. A longtime volunteer with the South Carolina chapter of Partners of the Americas, Dr. Marvin Efron leads a group discussion about projects related to health and rehabilitation and how to involve various organizations in such efforts. LOGUE Northeastern and Central Florida Colombia North Carolina Cochabamba, Bolivia Arkansas Eastern Bolivia Utah La Paz and Altiplano, Bolivia Massachusetts Antioquia, Colombia South Carolina Southwestern Colombia civil society & governance Photos from left to right: Colombian youth raise their voices to advocate for friendlier uses of natural resources; Partners helps increase Bolivians’ system, including women, who are frequent victims of crime; legislators from Tucumán, Argentina, meet with Partners staff member Ben Reames (right) to discuss provincial budget. access to the justice transparency in the Partners of the Americas advocates for women’s legal rights through one of its programs in Guatemala, where women have endured high levels of violence in recent years. Partners work includes creating public awareness campaigns in Spanish and indigenous languages. ACCES Guatemala Alabama Antioquia, Colombia Massachusetts Pará, Brazil Missouri Pernambuco, Brazil Georgia Sergipe, Brazil Rhode Island Paraíba, Brazil Connecticut St. Lucia Lower Hudson, NY gender & equality Photos from left to right: As part of the Joven Candelaria project, Magadalena Rico, president of the Northern Argentina Partners chapter, talks to young Argentine girls about reproductive health; St. Lucia Partners volunteer Martina Raphael traveled to the U.S. in 2004 to learn about women’s health education programs; improving maternal and child health, and promoting family planning and women’s rights encompass many Partners programs. accomplishments Women’s Legal Rights Initiative Limited understanding of Guatemalan women’s legal rights has adversely affected women’s lives, and diminished the effectiveness of the social, legal and economic institutions in the country. Due to these social and cultural traditions, Guatemalan women have endured high levels of violence in recent years. Partners’ Women’s Legal Rights Initiative works to strengthen the institutional capabilities of Guatemalan government ministries, universities and civil society organizations to enforce and advocate for women’s legal rights. Partners leads this project as a subcontractor to Chemonics International, which is funded by the USAID/EGAT Office of Women and Development. In 2004, project activities included training staff of the attorney general’s office on improving access to justice for women; creating a public awareness campaign on women’s legal rights in Spanish and indigenous languages; facilitating dialogue between civil society organizations and justice sector institutions; and developing a graduate program in gender and the law for justice sector professionals, indigenous women and civil society advocates. Family Life Education Through funding from the William and Flora Hewlett Foundation, Partners addressed family planning education and services by training professionals, providing community project grants and supporting travelers dedicated to promoting the health, economic and social benefits of family planning. Partners’ Family Life Education program filled critical needs in Latin America and the Caribbean, where many women and girls have little access to information about their reproductive and sexual health. This lack of knowledge contributes to high rates of unwanted pregnancies, maternal and infant mortality and sexually transmitted diseases, including HIV and AIDS. To address the issue, in 2004 Partners led workshops in Cartagena, Colombia, for 40 family planning and reproductive rights activists and professionals from 14 countries from North, Central and South America and the Caribbean. The event focused on key themes, including how to work with traditionally underserved populations such as youth and minorities, and incorporate media and outreach strategies. Participants developed skills in project design, participatory planning and appreciative inquiry. Case studies served to share best practices and tools among this network of committed professionals. As part of its Family Life Education program, Partners also awarded 14 small grants for community-based projects addressing family planning and reproductive health issues. Activities related to the grants reached more than 6,000 people with indepth training and programming. Participants have since shared the training with others and exchanged strategies across borders. Preventing Family Violence in Brazil In 2004, Partners contributed to reducing domestic violence and child abuse in Brazil by providing small grants to its U.S.-Brazil partnerships, including Pará, Pernambuco, Sergipe and Paraíba. With support from the Alfred Jurzykowski Foundation, the projects strengthened the capacity of community leaders to economically empower survivors of domestic violence, helped better services to women and children at risk, and developed advocacy campaigns that improved the legal and political system as it relates to family violence. Economic, social and political progress in the Americas is SS attainable with time, but only when women are equal participants in and beneficiaries of development. Over 40 years, Partners of the Americas has helped women gain access to essential services, lead healthier lives and achieve economic autonomy. In 2004, Partners deepened its commitment to arming women with skills for success. “ I felt an immense pride being part of an organization with such breadth and impact as Partners.” —ADOLFO TABORGA ALVAREZ, COCHABAMBA, BOLIVIA-NORTH CAROLINA PARTNERS accomplishments EDUCAR Garbage dumps, farms, flower mills, quarries, brothels. These are places where underprivileged Brazilian children and adolescents from impoverished areas spend their days at work, rather than in school or at play. While the number of working children ages 5 to 15 has decreased from 5.1 million in 1995 to 2.7 million in 2004, Brazil continues to face one of the highest incidences of illegal child labor in Latin America and the Caribbean. Partners helps reduce the prevalence of the worst forms of child labor in Northeast Brazil through EDUCAR, funded by the U.S. Department of Labor. EDUCAR helps municipal partners involve children in educational programs that remove them from labor and prevent them from returning. With after-school offerings and interactive teaching techniques that complement encourages families to enroll and keep their children in school. opportunities for at-risk youth. More than 27 percent of CADI graduates were placed in jobs or found internships that represent opportunities for a better economic future. PAIR In Brazil, 131 international highways and 100 other domestic routes are used for trafficking women and children for sexual purposes. Partners responds to this through its PAIR program, which combats commercial sexual exploitation and trafficking by bringing together federal agencies, local governments, businesses and nonprofits to identify crimes and provide services to victims. Funded by USAID-Brazil, PAIR works in seven states in Northern, Northeastern and Western Brazil, where the phenomenon is most widespread. Among its endeavors in 2004, the new program developed action campaigns. Recommendations from PAIR Plan to Confront Child and Adolescent Sexual Violence. Across the Americas, many children and adolescents experience adulthood too soon, while the inherent potential of traditional educational programs, EDUCAR In 2004, EDUCAR cultivated allies at the national, state and local levels and developed strategies to begin activities in is used in commercial sexual exploitation a door-to-door census to identify working 25 target municipalities where child labor and in illicit agriculture. It also conducted children, which resulted in widespread pargovernment in promoting education for all ticipation of families, organizations and local children. In 2005, EDUCAR will launch public awareness campaigns that bring light to tance of a quality education. the prevalence of child labor and the impor- CADI-Joven In a nation still scarred by decades of conflict, the CADI-Joven pro- gram molds young people from urban and rural Guatemala into future leaders. Funded by USAID/Guatemala, CADI-Joven brought together 811 youth from 16 diverse ethnic and linguistic indigenous groups to a camp INSPIR plans with institutions and public awareness were central to developing Brazil’s National others remains unnourished. In 2004, Partners of the Americas dedicated countless hours Youth Ambassadors Program For two weeks culture teachers and 20 teenagers from in January, 2004, five English language and to mentoring young people, Brazil braved winter temperatures to get a taste of U.S. life. A joint project between Partners, the U.S. Embassy in Brasília empowering them with skills to acquire jobs and make sound life decisions. By giving their time, Partners volunteers and staff and 10 Brazilian Bi-National Centers, the Youth Ambassadors Program provided an opportunity for the young leaders to better understand U.S. culture and serve as “ambassadors” who project an authentic helped youth acquire the basic image of Brazil. Their cultural immersion took place in Washington, D.C., and with Partners chapter members in five U.S. states. Secretary of State Colin Powell met opportunities—and childhood— they deserve. with the youth ambassadors, many of whom to become leaders in their own neighborhoods. Others returned to Brazil to teach used their international exchange experience setting to learn leadership, life and job skills. CADI formed 26 Local Action Corps, where 689 graduates applied lessons they learned in camp to make a difference in their communities. Of these youth leaders, 47 percent were women, 90 percent indigenous and 64 percent from rural areas. CADI led the creation of a public-private alliance that will seek educational and economic English to Partners volunteers or tutor peers preparing for college. The 2004 program was sponsored by Delta Air Lines and the Fulbright Commission. From helping combat child labor to grooming future ambassadors, Partners of the Americas provides new opportunities for youth through a variety of projects. As a member of the CADI-Joven program in Guatemala, this young man participated in activities that promoted leadership and encouraged an appreciation for diversity. RATION Nicaragua Wisconsin Rio Grande do Sul, Brazil Indiana Yucatán, México Iowa Costa Rica Oregon Guatemala Alabama Brasília, Brazil Washington, DC youth & children Photos from left to right: Indigenous Atikum children from Brazil perform the circular Toré dance; a CADI-Joven youth participates in the opening ceremony of the 2004 Partners International Convention; 19-year-old Brazilian Youth Ambassador Laize Lantyer Luz, visits a farm in Nebraska. Mónica Duarte, coordinator of Proyecto Voluntarios of the Paraguay Partners chapter, received a scholarship to travel to the Partners International Convention in Guatemala, where volunteers celebrated the organization’s 40th anniversary. Duarte then went on to Kansas to promote her project. She was one of 25 young adult leaders to win the scholarship in 2004. EXPERI Paraguay Kansas Patagonia, Argentina Montana Minas Gerais, Brazil Colorado Nicaragua Wisconsin Amazonas, Brazil Tennessee Grenada Broome County, NY exchanges & fellowships Photos from left to right: Bolivian musicians visit and perform in North Carolina as part of a cultural exchange; Colorado Partners volunteer Dr. Francis Wardle visited Minas Gerais, Brazil, to participate in university discussions about ethnology as a cultural dimension; Wisconsin Partners volunteer Amy Bowen Wiza teaches handcrafts to Nicaraguan children during an exchange visit. accomplishments American Fellows Program The American Fellows Program sponsors exchanges which allow civil servants from Latin America and the Caribbean to work in counterpart agencies in the United States, and their peers from the U.S. to work in the same capacity in other countries of the region. Partners chapters help nominate Fellows and invite them to become members after the fellowship experience, thus expanding their opportunities to share experiences and build a broader vision of the hemisphere. In 2004, the program awarded fellowships to 30 civil servants from 16 countries. Fellows worked throughout the Americas in areas as diverse as labor law, environmental protection, food In 2004, Partners provided travel opportunities to 118 volunteer professionals from 40 partnerships. Five were participants in the “Teacher-in-Residence” program, a monthlong exchange aimed at improving English teaching methods. Keeping true to its commitment to youth development, Partners also funded 25 young adult leaders to attend the Partners International Convention in Antigua, Guatemala—where Partners celebrated its 40th anniversary—as well as travel to their counterpart chapters. With support from the U.S. Department of State’s Office of Citizen Exchanges, the Education and Culture program in 2004 brought volunteers such as John Kudrna and Molly O’Brien from the Montana Partners to Patagonia, Argentina, where they introduced disabled children to skiing, horseback riding and kayaking. The pair taught the children’s parents, 30 local volunteers and professionals who work with the disabled how to continue such activities. In the end, the recreational therapy boosted children’s self-esteem and gave them a greater sense of independence. In 2004, the Education and Culture Since its birth, Partners of the Americas has been a leader in volunteer exchanges that build cross-cultural understanding, borne diseases and e-government. This presidential initiative is funded by the Office of Citizen Exchanges of the U.S. Department of State, and has been managed by Partners since 2003. It has state government agencies. “The impor- IENCE spurred strong demand among federal and foster intellectual growth and tant contributions by the American Fellows Program have strengthened the relations between the U.S. and Brazil, reinforcing our mutual respect as countries,” said Dr. Espedito Luna of Brazil’s Ministry of cement bonds that last generations. Through volunteer activities that have stood the test of time, Program also awarded 15 small project partnerships address local issues. The Health following several exchanges arranged between the Centers for Disease Control and the ministry. assistance grants totaling $51,000 to help endeavors carried out by partnerships were varied, from the production of a film about the boat makers of the Brazilian Amazon to an exchange of 30 young Caribbean steel drum musicians, dancers and teachers. Partners has helped strengthen relations between the U.S. and Fellows exchange valuable expertise and its neighbors. It has also provided individuals from across the establish strong institutional relationships aimed at strengthening relations between the U.S. and its neighbors. To further these Western Hemisphere with relationships, Partners in 2004 founded the American Fellows Alumni Association, which will allow Fellows to exchange resources and identify networking opportunities. life-changing experiences that educate, inspire and motivate. Education and Culture Each year for “I have lived and worked in six countries other than the U.S., and all of those more than two decades, Partners chapters have selected volunteer professionals from the U.S. to travel to Latin America and Caribbean countries, and vice-versa. These travelers—teachers, community activists, artists—immerse themselves in experiential learning related to education, culture or the development of their partnership. Many return later at their own expense. The relationships and insights volunteers garner show them that cross-border collaboration yields mutual understanding and opportunity. experiences were challenging, fascinating, rewarding and enjoyable. None was richer or more personally fulfilling than my four-week visit to Pará.” —MICHAEL DIX, MISSOURI-PARÁ, BRAZIL PARTNERS accomplishments Farmer to Farmer The USAID-funded John Ogonowski Farmer to Farmer Program brings together agricultural professionals and practitioners from the U.S. and the Caribbean to increase agricultural production, marketing and processing in a specific agricultural sector. A consortium of institutions, including Florida A&M University and the Florida Association of Voluntary Agencies for Caribbean Action, assists Partners with program implementation. Over nearly 15 years, Farmer to Farmer volunteers have helped increase crop productivity and food production, strengthened farming and marketing operations, bettered livestock and herd management, adopted new crops and ultimately, improved the environment. In 2004, Farmer to Farmer was rooted in Haiti, Jamaica and Guyana, where volunteers worked with local agricultural producers, agribusinesses and producer organizations. They provided technical assistance focused on the agricultural commodity chain, from field to market. They addressed how to improve the processing and distribution of agricultural products. And they tackled issues such as market development and general organizational strengthening. Despite hurricanes, tropical storms, flooding and political unrest that plagued the three Farmer to Farmer countries, the program fielded an impressive number of excellent volunteers. These experts targeted a number of agriculture sectors, specifically non-traditional crops and products with good potential in local, regional and export markets. Commodities and products ranged from peanuts to untraditional vegetables to specialty animal production, always with an eye towards economic growth and trade potential. More than 400 people benefited, directly or indirectly, from the Farmer to Farmer program in 2004. Partners expects to reach hundreds more in 2005. Guyana Dairy Development Project During the past three years, Partners, in collaboration with Central America and the Caribbean Agriculture Rural Economic Sustainable Development Action, built new capacity in the Guyanese dairy industry that included processing dairy products and generating demand for fresh milk. Along with these results, the program addressed malnutrition in school-aged children. When the Guyana Dairy Development Project began in 2001, child malnutrition was high and fresh milk was not readily available, preventing its crucial nutritional elements from becoming part of children’s regular diet. To address this situation, Partners led interventions on ten model farms, exposing more than 7,000 cattle farmers to new dairy development technologies. Over the life of the program, at least 50,000 people sampled milk products during national exhibitions, displays and promotional events. Program results showed that the average milk production per cow on participating farms grew from 52 to 87 pints daily. And more than 20 different products—such as For many people in the Western Hemisphere, the land is their anchor, their wellspring of income and food. Partners of the Americas recognizes the long-term value of investing time in creating yogurt, plain and flavored pasteurized milk approved and generated a demand by the and mozzarella cheese—were market tested, public. Prior to the beginning of the project, there were no functioning dairy processing plants in Guyana. Now there are three. To improve children’s nutrition, the program also produced educational materials about local milk and milk product consumption, tasting sessions, recipes and a milk supplementation study. As part of the study, 252 students from three nursery schools received a 250-ml pouch of milk per day. The most important finding of the study was that that daily supplementation and generally improved the nutritional of milk had significantly reduced malnutrition status of participating children. When they were assessed by whether their weight was healthy for their age, Partners found by 75 percent. that their rate of malnutrition had reduced REN new, multi-faceted technologies that guarantee sustainable agricultural systems. In 2004, Partners volunteers continued to support rural development, sustainable economic growth and environmental protection through creative methods. Over the years, Partners of the Americas’ Farmer to Farmer Program has provided technical assistance to farmers and beekeeper associations in an effort to help stabilize and diversify rural incomes. Don Hopkins (right), a North Carolina state apiarist, works with beekeepers in Bolivia on bee colony management and honey marketing. NEWAL agriculture & environment Photos from left to right: Partners programs focus on appropriate technology in rural areas, such as using local materials in Bolivia to build this low-cost greenhouse; Partners’ Guyana Dairy Development Project helped reduce the rate of malnutrition in Guyanese children; Haiti Farmer to Farmer Coordinator Benito Jasmin (center) and two farmers examine a rabbit—an inexpensive source of needed protein in the country. El Salvador Louisiana Honduras Vermont Guatemala Alabama Nicaragua Wisconsin Quito & Santo Domingo Ecuador Cochabamba, Bolivia North Carolina Guyana Mississippi Jamaica Western New York Haiti New Jersey independent auditors report To the Board of Directors Partners of the Americas, Inc. Partners of the Americas Foundation Washington, DC We have audited the accompanying combined statements of financial position of Partners of the Americas, Inc. and Partners of the Americas Foundation (together “POA”) as of December 31, 2004 and 2003, and the related combined statements of activities and changes in net assets, functional expenses and cash flows for the years then ended. These combined financial statements are the responsibility of the management of POA. Our responsibility is to express an opinion on these combined financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits 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 audits provide a reasonable basis for our opinion. In our opinion, the combined financial statements referred to above present fairly, in all material respects, the combined financial position of Partners of the Americas, Inc. and Partners of the Americas Foundation as of December 31, 2004 and 2003, and their combined changes in net assets and their combined cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2005 on our consideration of POA’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts and grants. That report is an integral part of an audit performed in accordance with Government Auditing Standards and should be read in conjunction with this report in considering the results of our audit. Gelman, Rosenberg and Freedman Certified Public Accountants and Consultants March 25, 2005 *For a complete copy of the 2004 audit, visit www.partners.net. combined statements of financial position As of December 31, 2004 and 2003 2004 ASSETS Current Assets: Cash and cash equivalents Investments (Note 2) Program advances Grants receivable (Note 10) Other receivables Prepaid expenses Total current assets Property, Equipment and Leasehold Improvements: Furniture, equipment, and leasehold improvements Vehicles Leasehold improvements Less: Accumulated depreciation and amortization Net property, equipment and leasehold improvements Noncurrent Assets: Investments (Note 3) Artwork Total noncurrent assets Total Assets 84,524 15,648 100,172 $10,526,860 275,073 28,290 37,929 341,292 (199,850) 141,442 $ 77,207 964,237 658,636 8,482,066 33,637 69,463 10,285,246 $ 2003 373,841 1,463,170 602,849 10,401,356 8,614 58,629 12,908,459 254,923 28,290 34,117 317,330 (156,591) 160,739 76,277 15,648 91,925 $13,161,123 LIABILITIES AND NET ASSETS Current Liabilities: Line of credit (Note 13) Accounts payable and accrued liabilities Deferred rent abatement (Note 9) Total current liabilities Noncurrent Liabilities: Annuity payable (Note 4) Deferred rent abatement, net of current portion Total liabilities Net Assets: Unrestricted: Undesignated Board designated (Note 5) Total unrestricted Temporarily restricted (Note 6) Permanently restricted (Note 7) Total net assets Total Liabilities and Net Assets 147,955 809,718 957,673 8,569,535 137,855 9,665,063 $10,526,860 266,880 726,584 993,464 11,363,693 73,962 12,431,119 $13,161,123 66,254 74,272 861,797 58,007 99,030 730,004 $ 300,000 396,513 24,758 721,271 $ 200,000 348,209 24,758 572,967 combined statements of activities and changes in net assets For the years ended December 31, 2004 and 2003 2004 SUPPORT AND REVENUE Government grants and contracts (Notes 11 and 12) Corporate/foundation grants and contributions In-kind contributions Fee for services revenue Individual contributions Membership dues Investment income Other income Net assets released from donor restrictions (Notes 8) Total support and revenue — 8,588,733 8,250 1,253,748 2,300 104,012 10,385 137,388 6,194 $ 7,066,456 2003 $ 12,719,034 133,775 — 11,027 66,265 11,500 261,515 13,290 — 13,216,406 EXPENSES Program services: Youth and Education Training Civil Society and Governance Agriculture and Environment Exchanges and Fellowships Gender and Equality Partners of the Americas Foundation Total program services Supporting services: General and Administrative Fundraising Total supporting services Total expenses Changes in net assets Net assets at beginning of year Net Assets at End of Year 1,456,386 9,461 1,465,847 11,354,789 (2,766,056) 12,431,119 $ 9,665,063 212,424 8,635 221,059 8,715,096 4,501,310 7,929,809 $12,431,119 2,475,056 — 5,920,670 257,280 1,078,216 137,640 20,080 9,888,942 2,684,500 657,125 3,431,376 982,421 597,109 123,909 17,597 8,494,037 combined statements of cash flows For the years ended December 31, 2004 and 2003 2004 CASH FLOWS FROM OPERATING ACTIVITIES Changes in net assets Adjustments to reconcile changes in net assets to net cash provided (used) by operating activities: Depreciation and amortization Loss on disposal of property and equipment Realized gain on sales of investments Unrealized loss on investments Contributions restricted for long-term investment Increase in noncurrent investments Stock donations (Increase) decrease in: Program advances Grants receivable Other receivables Prepaid expenses Increase (decrease) in: Accounts payable and accrued liabilities Annuity payable Deferred rent abatement Net cash provided (used) by operating activities 48,304 8,247 (24,758) (1,026,384) (55,787) 1,919,290 (25,023) (10,834) 71,113 5,139 (120,132) 24,478 (63,893) (8,247) (28,225) $(2,766,056) 2003 $ 4,501,310 58,699 — (184,209) — (32,410) (11,852) (31,810) (61,322) (4,272,129) 61,215 (4,783) (133,239) 11,852 123,788 25,110 CASH FLOWS FROM INVESTING ACTIVITIES Purchase of investments Proceeds from sales of investments Purchase of furniture and equipment Insurance proceeds Proceeds from sales of assets Net cash provided (used) by investing activities (53,924) 676,736 (56,955) — — 565,857 (261,393) 273,845 (133,998) 15,122 19,938 (86,486) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from borrowings on line of credit Contributions restricted for long-term investment Net cash provided by financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and Cash Equivalents at End of Year $ 100,000 63,893 163,893 (296,634) 373,841 77,207 $ 200,000 32,410 232,410 171,034 202,807 373,841 contributors Partners of the Americas thanks the following individuals and institutions for their generous support of our volunteers and programs. The many accomplishments of Partners are a tribute to our donors, whose gifts enable us to improve the lives of people across the Americas. Elizabeth Hill Stephen Murphy $10,000 to $19,999 Alan Berkeley Anonymous Donor Lois Fish Frederick Heldring Virginia Hubbell Raymond Laschober Jerry Perpich William Reese William Ritter William Stedman Deborah Szekely Maurine Venters $5,000 to $9,999 C. Dean Allen Hector De Lara Mary Laschober Paula Laschober Steven and Hisko Laschober Edmea McCarty Robert Raiche Manuel Rodriguez-Fiol Harry Ruffalo Diani Santucci Wilbur Zielke GIF TS IN 200 4 Ambassadors Alan Berkeley Malcolm & Letitia Butler Bernard J. & Carolyn Hamilton Mary Laschober Paula Laschober Stephen Murphy Jerry Perpich William Stedman Wilbur Zielke Patrons C. Dean Allen Matthew Lee Dr. John K. Schorr Jack Victor Charles and Dorothy Wampler Richard (Dick) Ericson Benefactor Anabella Bruch Anna CastriconeCronin Matthew Clausen Doris Crocker William R. Fuller Lacey Gude Frederick Heldring Eleanor Jones GOVERNMENT AGENCIES U.S. Agency for International Development U.S. Department of State, Bureau of Educational and Cultural Affairs U.S. Department of State, U.S. National Coordinator for the Summit of the Americas U.S. Department of Labor, Bureau of International Labor Affairs FOUNDATIONS Alfred Jurzykowski Foundation American Express Foundation Bullit Foundation Elena Melius Foundation First Data Western Union Foundation Kettering Foundation OSI Development Foundation Rockefeller Brothers Fund, Inc. Sundance Family Foundation William and Flora Hewlett Foundation W. K. Kellogg Foundation PRIVATE SECTOR Continental Airlines Douglas Development Corp Houlton Group Iracambi Atlantic Rainforest Research and Conservation Center Tellico Enterprises ALLIANCES Alcorn State University Checchi and Company Consulting, Inc. Chemonics International Cornell University Florida Association for Volunteer Action in the Caribbean and the Americas (FAVACA) Florida A&M University Friends of Haiti Inter-American Institute for Cooperation on Agriculture Multi-Lateral Investment Fund of the Inter-American Development Bank OIC International Organization of American States, Summits of the Americas Secretariat Pact Southern University State University of New York University of Arkansas-Pine Bluff University of Georgia U.S. Peace Corps PARTNERS CHAPTERS Broome County, NY-Grenada New Mexico-Mexico Virginia-Santa Catarina, Brazil Washington-Chile LIFETIME GIVING Sustaining Ambassadors Sandy & Connie Jose Richard Lamporte Tony Pederson Gina Pezzano de Vengoechea Pat Ramsay William Reese Benno Sander Harry Shlaudeman Douglas Stauffer Marta Cecilia Villada Donald Wagner Patricia Hill Williams Craig Wilson Sponsor Sallie W. Abbas Robert Barker Ross & Marianna Beach George Beran Sue Broussard Anita Burris-Meyer Julia Chryst Stephen Coelen David Coffey Donald Cook David Cox Ramiro Crawford S. James Creagan John Crimmins Elizabeth DaSilva Denise Decker Darlene Diesch Frances Dillingham Kristin Douglass Beverley Drayton Clara Louise Dubbs William Edwards Marvin Efron Jim Feaster Laurence Fuortes Francis Gagliardi John Gerty Modesto & Nilda Gometz Donald Goulden Alberto Granada Aquino Lynda Harrison Len Harzman Catherine Healy DeAnne Hilfinger Messias Lowell Kingsley Gina Lagomarsino Sheila Leiss Leslie Locketz William Lowenthal E. David Luria Donald Lynch John (Jack) Manning Bess Mendoza Adrian Moody Edward Moseley Shirley Mullins Baldonedo A. Napoleão Thomas O’Rourke Cecilia Otero Pablo Paz y Miño Larry Purnell Rochelle Rainey Joyce Robinson Donna Rosa Joseph Rosener Alan Rubin John Rushing Carmen Sepassi Robert & Karol Service Daniel Shaughnessy Stephen Simonds Amy Solomon Douglas Stevenson Bob and Mary Stodola Michael Stricklin Deon Stuthman Thecia Taylor Elizabeth Templin Terence Todman Irving Tragen Jorge Varon Eliana Vera Lilya Wagner Clifford Whitehill Helen Wilson Lynda Woodruff William Zachmann Friends Fred Abels Rebecca Alvarado-Lieber Anonymus Anonymous Jean Armstrong Muriel & John Auerbach Virginia Barnard Suzanne Bell Nestor Benavides Cole Blasier David & Barbara Bloch Mikel Borg Peter Bowman John Brant Czerny Brasuell J. Dewey Brown Vonda Brown Robert & Janet Brownlee Frank Brumbaugh John Bushnell Claudia Calderon Barbara Cannas Donald Carbone Peggy Carlson Lawrence Carter José Rodolfo Carvajal Sanchez Vernon & Elizabeth Case Vera Lia Cavalheiro Lloyd Chase Irene Chegwin Vergara $20,000 and above Bernard J. and Carolyn Hamilton Nancy Chesser Russell Chrysler Roberto Concha Frank & Karen Connor Edward Corcoran Claudia Coutinho da Silveira Stephen Craxton Terry Crowe John Cutler Howard Cutts George Davis Frank De Santo Henry Dearborn William Diamond Emily DiCicco Eric Dodge Arnold Dood Joan Dragolic Rosalind Elahi Bertha Eriksson Rhonda Farnham Thomas Fedewa Jeffrey & Gail Flood John Freiler Robert Friedman Theodore Fuller Almerinda Garibaldi Gillian Gaynair John Michael Giger Angela Gonella Kiki Gore Charles W Grover Furman Gyger Penelope Hartman Lucille Harvey Pamela Herrera George High Deborah Hill Philip Hoff Donna Hrinak Carmen Ines Cruz Irwin Jacobs Alden Johnson Gary Katz Donald Kaye Elizabeth Kelderhouse Marjorie Keller Gail Kelley Sigrid Koehler Martin & Phyllis Korn Cleo Kottwitz Gary Kuhn James & Judith Kullberg Robert Kuzelka Maureen Lally-Green Gary Larrowe Martin & Mary C. Limbird John Lucey Matthew Luks John Lynskey Robert Mabbs Peter Malone David & Heather Mann Jason Marczak Stanley & Wendy Marsh Carmen Martin Liane Martin Janeth Martinez Paula & Ray McNamara Oscar Mejía Julio Melgar William Miller John Mills Elkin Molina William Moody Michael Moser Mario Mosquera Nazley Mulford Alice Murray E.V. (Vic) Niemeyer Jacqueline Noonan Alicia Ocampo Rachel Olsen Oscar Olson Ana Lucía Orozco David Pace Jeanne Palyok-Keen Meredith Pearson Maria Auxiliadora (Dorinha) Pereira Stephen Pesci Manuel Peña Adelia Peters Rosa Pieschacon David & Diane Pitts Richard & Anita Pollak David Popper Richard Porth William Pryce Charles & Jo Ann Queenan Gloria Quicasan Edward & Jane Raftery Lilian & John D. Ranseen Dorothy Reidel Barbara & Randolph Riddoch Mary Risley Kay Roberts Eduardo Rodriguez del Puerto Joe & Marcee Rogers George & Arthea Saller Angela Sanders Ferrufino James Schaefer David Schafer Byron Schenkman James & Betty Schmitt Aracelis Shaw Nicole Spencer Benjamin Stauss Mary Stelletello David & Gloria Alm Stemper Frank Stone Jerald & Connie Sveum Wayne Swegle Jerry Tello Fredrick and Virginia Traeger Alex Truesdell Marcelo Trujillo Patricia Valencia Jack Valpey Luisa Villegas Joseph Waldrum Linda Weber Gordon Weir Kenneth & Beatrice Weiss Elizabeth Wheeler Kenneth and Linda Winer Thomas Young Margaret Zabinski PARTNERS OF THE AMERICAS, INC. Board o f Direc tor s 200 4 Beverley Drayton Executive Secretary to the Honorable Leader of the Opposition Port-of-Spain, Trinidad Alberto Granada Professor, Universidad de Asunción Asunción, Paraguay Ambassador Donna Hrinak Senior Counselor for International Trade and Government Affairs Steel Hector & Davis LLP Florida, USA Leslie Locketz Chair, Academic Department; Assistant Professor, Rochester Educational Opportunity Center New York, USA Tony Pederson Chair, Journalism Division, Meadows School of the Arts Texas, USA Maria Auxiliadora (Dorinha) Pereira Consultant, Conselho Nacional de Asistencia Social-CNAS Brasília, Brazil Pat Ramsay Director, Arts and Culture, University of Technology Kingston, Jamaica Dr. Michael Stricklin Professor, Communications Department, Federal University of Piauí Piauí, Brazil Jack Victor President Emeritus, World Rehabilitation Fund; International Consultant New York, USA PARTNERS OF THE AMERICAS FOUNDATION Board o f Direc tor s 200 4 Chairman Baldonedo A. Napoleão Professor, Federal University of São João Del Rei; President, Agricultural Research Corporation of Minas Gerais Minas Gerais, Brazil Vice Chairman Dr. John K. Schorr Professor of Sociology and Director of Stetson Institute for Social Research Florida, USA Treasurer Dr. Patricia Hill Williams Vice President, External Affairs, Farmingdale State University New York, USA Secretary Gina Pezzano de Vengoechea Director, Student Affairs, Universidad del Norte Barranquilla, Colombia Directors Sallie W. Abbas Education Specialist North Carolina, USA Mikel Borg Firefighter, Emergency Medical Technician Texas, USA José Rodolfo Carvajal Sanchez Director, International Projects and Exchanges, Universidad Popular Autónoma del Estado de Puebla Puebla, México Ramiro Crawford S. Development Consultant San José, Costa Rica Cláudia Coutinho da Silveira Professor, Universidade Federal do Pará Pará, Brazil Chairman Matthew Lee, Jr. Account Manager, Xerox Corporation Georgia, USA Chairman Emeritus Frederick Heldring Pennsylvania, USA Directors Baldonedo A. Napoleão Professor, Federal University of São João Del Rei; President, Agricultural Research Corporation of Minas Gerais Minas Gerais, Brazil Dr. John K. Schorr Professor of Sociology and Director of Stetson Institute for Social Research Florida, USA Stephen Ward President, Ward & Company LLC Virginia, USA Dr. Patricia Hill Williams Vice President, External Affairs, Farmingdale State University New York, USA Liaison, Boards of Directors Claudia Calderón “ With friendship, you’re building just communities all around the Americas and making the dream of John F. Kennedy and my father, Robert, come true. You’re building democracy at the grassroots level.” —KATHLEEN KENNEDY TOWNSEND support Support Partners of the Americas, Inc., and Partners of the Americas Foundation Financial contributions give Partners of the Americas greater flexibility to open the doors of opportunity to those most in need. It allows our volunteers to give more of their time. And it enables us to live our mission. Contributions to our Foundation funds help promote strong partnerships, children’s literacy, micro-enterprise development and healthy families. Please visit www.partners.net to learn about the variety of ways to make a gift to Partners. Malcolm Butler President and CEO Partners of the Americas Design: [ studio e2 ] ■ Photography: Justin Hackworth, Luiz Santos and other volunteer contributors. MINAS GERAIS, BRAZIL MÉXICO CITY, MÉXICO SAN FRANCISCO, CALIFORNIA COLORADO NUEVO LEÓN, MÉXICO NICARAGUA NORTHEASTERN & CENTRAL COLOMBIA OAXACA, MÉXICO PARANÁ, BRAZIL PANAMÁ PARÁ, BRAZIL PARAGUAY PATAGONIA, ARGENTINA PERNAMBUCO, BRAZIL PERÚ PIAUÍ, BRAZIL PUEBLA, MÉXICO QUITO & SANTO DOMINGO, ECUADOR RIO DE JANEIRO, BRAZIL SONORA, MÉXICO SOUTHWESTERN COLOMBIA ST. LUCIA RIO GRANDE DO NORTE, BRAZIL ST. VINCENT TABASCO, MÉXICO RIO GRANDE DO SUL, BRAZIL TAMAULIPAS, MÉXICO TRINIDAD & TOBAGO TLAXCALA, MÉXICO URUGUAY SANTA CATARINA, BRAZIL VENEZUELA VERACRUZ, MÉXICO SÃO PAULO, BRAZIL YUCATÁN, MÉXICO 1424 K Street NW Suite 700 Washington, DC 20005 www.partners.net Telephone 202.628.3300 Facsimile 202.628.3306 MONTSERRAT OSWEGO COUNTY, NY TEXAS WISCONSIN FLORIDA ARIZONA OHIO DELAWARE MISSOURI KANSAS MONTANA GEORGIA TEXAS NEBRASKA OKLAHOMA KENTUCKY MARYLAND OKLAHOMA SOUTH CAROLINA LOWER HUDSON, NY MAINE LONG ISLAND, NY NEW MEXICO INDIANA TEXAS CENTRAL NY OKLAHOMA MINNESOTA VIRGINIA TENNESSEE TEXAS ILLINOIS IOWA Partners is a private, nonprofit, areas as diverse as emergency development. Its work covers exchange, domestic violence volunteers, their institutions and communities to address energy and skills of citizen and Caribbean countries in states with Latin American preparedness, agriculture, Founded in 1964, Partners shared concerns of social, of the Americas links U.S. government strengthening. partnerships that use the cultural and educational economic and cultural prevention and local non-partisan organization with international offices in Washington, DC.