Pw 2013 audited financials

Financial Statements

With Independent Auditors’ Report

June 30, 2013 and 2012

Table of Contents

Page

Independent Auditors' Report 1

Financial Statements

Statements of Financial Position 3

Statements of Activities 4

Statements of Cash Flows 5

Statement of Functional Expenses - 2013 6

Statement of Functional Expenses - 2012 7

Notes to Financial Statements 8

PARTNERS WORLDWIDE, INC.

INDEPENDENT AUDITORS’ REPORT

Board of DirectorsPartners Worldwide, Inc.Grand Rapids, Michigan

We have audited the accompanying financial statements of Partners Worldwide, Inc., which comprise thestatement of financial position as of June 30, 2013, and the related statements of activities, cash flows, andfunctional expenses for the year then ended, and the related notes to the financial statements. The financialstatements of Partners Worldwide, Inc. as of June 30, 2012, were audited by other auditors whose reporteddated October 26, 2012, expressed an modified opinion on those statements.

Management’s Responsibility for the Financial StatementsManagement is responsible for the preparation and fair presentation of these financial statements inaccordance with accounting principles generally accepted in the United States of America; this includes thedesign, implementation, and maintenance of internal control relevant to the preparation and fair presentation

f fi i l t t t th t f f t i l i t t t h th d t f dof financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ ResponsibilityOur responsibility is to express an opinion on these financial statements based on our audit. We conductedour audit in accordance with auditing standards generally accepted in the United States of America. Thosestandards require that we plan and perform the audit to obtain reasonable assurance about whether thefinancial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in thefinancial statements. The procedures selected depend on the auditor’s judgment, including the assessment ofthe risks of material misstatement of the financial statements, whether due to fraud or error. In making thoserisk assessments, the auditor considers internal control relevant to the entity’s preparation and fairpresentation of the financial statements in order to design audit procedures that are appropriate in thecircumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internalcontrol. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness ofaccounting policies used and the reasonableness of significant accounting estimates made by management, aswell as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for ouraudit opinion.

Board of DirectorsPartners Worldwide, Inc.Grand Rapids, Michigan

OpinionIn our opinion, except for the effects of the matter discussed in the Basis for Qualified Opinion paragraph, the financial statements referred to above present fairly, in all material respects, the financial position of PartnersWorldwide, Inc. as of June 30, 2013, and the changes in its net assets and cash flows for the year then endedin accordance with accounting principles generally accepted in the United States of America.

Basis for Qualified OpinionAs discussed in Note 2 to the financial statements, Partners Worldwide, Inc. reports its investments in PWEntrepreneurs, L3C, a majority-owned subsidiary, on the cost method of accounting. Accounting principlesgenerally accepted in the United States of America require that majority-owned subsidiaries be accounted foras consolidated subsidiaries. Partners Worldwide, Inc. also has control over and an economic interest in PWCanada. Accounting principles generally accepted in the United States of America require that PW Canadabe accounted for as a consolidated entity. The users of these financial statements would recognize that theymight reach different conclusions about Partners Worldwide, Inc.'s financial position, statements of activities,functional expenses, and cash flows if they had access to revised financial statements prepared in conformitywith accounting principles generally accepted in the United States of America. As of June 30, 2013 and2012, if the financial statements of PW Entrepreneurs, L3C had been consolidated with those of PartnersWorldwide, Inc., total assets would increase by approximately $323,000 and $178,500, liabilities wouldincrease by $-0- and $3,500, and net assets would increase by $323,000 and $175,000, respectively. Theeffects of not consolidating PW Canada on the financial statements are not reasonably determinable.

Wheaton, IllinoisOctober 14, 2013

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2013 2012

ASSETS:

Cash and cash equivalents 799,035$ 1,370,855$

Investments 2,080,271 1,961,370

Pledges receivable 82,925 280,245

Field advances 104,376 31,674

Accounts receivable 14,100 22,000

Prepaid expenses 29,660 22,302

Notes receivable 1,321,861 354,351

Investment in affiliate 1,066,149 615,710 Property and equipment, net 851,061 875,717

Total Assets 6,349,438$ 5,534,224$

LIABILITIES AND NET ASSETS:

Accounts payable 62,646$ 52,709$ Accrued expenses 85,281 64,555

Notes payable 300,000 300,000 Total Liabilities 447,927 417,264

Net assets:

Unrestricted:

Undesignated 3,630,301 2,230,685

Designated for future building needs 50,000 50,000

Designated for loan reserve 300,000 200,000

Designated for programs 14,182 173,780

3,994,483 2,654,465

Temporarily restricted 1,907,028 2,462,495

Total Net Assets 5,901,511 5,116,960

Total Liabilities and Net Assets 6,349,438$ 5,534,224$

June 30,


Statements of Financial Position

See notes to financial statements

-3-

Temporarily Temporarily

Unrestricted Restricted Total Unrestricted Restricted Total

SUPPORT AND REVENUE:

Contributions 859,056$ 3,541,391$ 4,400,447$ 1,250,469$ 2,980,639$ 4,231,108$

Donated services 320,677 - 320,677 428,876 - 428,876

Grants 51,300 - 51,300 150,525 - 150,525

Investment income 198,469 - 198,469 (12,670) - (12,670)

Events and conferences 127,775 - 127,775 28,537 - 28,537

Other revenues 31,991 - 31,991 3,030 - 3,030

Total support and revenue 1,589,268 3,541,391 5,130,659 1,848,767 2,980,639 4,829,406

Net Assets Released from Restriction 4,096,858 (4,096,858) - 2,353,169 (2,353,169) -

Total Support, Revenue and Net Assets

Released From Restrictions 5,686,126 (555,467) 5,130,659 4,201,936 627,470 4,829,406

EXPENSES

Program Services 3,747,433 - 3,747,433 3,234,985 - 3,234,985

Supporting activities:

Management and general 202,127 - 202,127 221,787 - 221,787

Fund-raising 396,548 - 396,548 359,650 - 359,650

Total Expenses 4,346,108 - 4,346,108 3,816,422 - 3,816,422

Change in Net Assets 1,340,018 (555,467) 784,551 385,514 627,470 1,012,984

Net Assets, Beginning of Year 2,654,465 2,462,495 5,116,960 2,268,951 1,835,025 4,103,976

Net Assets, End of Year 3,994,483$ 1,907,028$ 5,901,511$ 2,654,465$ 2,462,495$ 5,116,960$

2013 2012

Year Ended June 30,


Statements of Activities


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2013 2012

CASH FLOWS FROM OPERATING ACTIVITIES:

Increase in net assets 784,551$ 1,012,984$

Adjustments to reconcile change in net assets to net

cash provided by operating activities:

Depreciation expense 36,383 42,777

Realized and unrealized (gain) loss on investments (97,700) 49,088

Changes in:

Pledges receivable 197,320 99,423

Field advances (72,702) 16,006

Accounts receivable 7,900 (9,615)

Prepaid expenses (7,358) (2,471)

Accounts payable 9,937 (19,225)

Accrued expenses 20,726 (71,866)

Net Cash Provided by Operating Activities 879,057 1,117,101

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchases of property and equipment (11,727) (5,666)

Notes issued (1,000,000) (354,351)

Collections on notes 32,490 -

Proceeds from sale of investments 535,772 9,466

Purchases of investments (556,973) (26,964)

Investment in affiliate (450,439) (172,710)

Net Cash Used by Investing Activities (1,450,877) (550,225)

CASH FLOWS FROM FINANCING ACTIVITIES:

Proceeds from note payable - 300,000

Net Cash Provided by Financing Activities - 300,000

Net Change in Cash and Cash Equivalents (571,820) 866,876

Cash and Cash Equivalents, Beginning of Year 1,370,855 503,979

Cash and Cash Equivalents, End of Year 799,035$ 1,370,855$

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:Cash paid for interest (non capitalized) 3,000$ 1,862$

Year Ended June 30,


Statements of Cash Flows


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Program Management

Services and General Fundraising Total

Salaries 398,976$ 80,351$ 155,131$ 634,458$

Employee benefits 88,442 26,527 65,084 180,053

487,418 106,878 220,215 814,511

Home office costs:

Printed materials 4,823 8,708 23,222 36,753

Promotion events/mailings 1,215 2,421 35,760 39,396

Travel 36,411 2,025 24,451 62,887

Operations 129,320 56,183 56,231 241,734

Professional fees 70 15,360 23,790 39,220

Training and education 1,090 227 2,554 3,871

Facilities 30,973 10,325 10,325 51,623

Total home office costs 203,902 95,249 176,333 475,484

Field office costs:

Donated services 320,677 - - 320,677

Travel 439,999 - - 439,999

Housing 5,606 - - 5,606

Field office costs 82,513 - - 82,513

Field equipment purchases 8,874 - - 8,874

Training and education 44,933 - - 44,933

National staff costs 704,500 - - 704,500

Food production 430,987 - - 430,987

Health 436 - - 436

Literacy 125 - - 125

Small business development 583,696 - - 583,696

Field development and planning 74,351 - - 74,351

Other 359,416 - - 359,416

Total field office costs 3,056,113 - - 3,056,113

Total Expenses 3,747,433$ 202,127$ 396,548$ 4,346,108$

Supporting Services


Statement of Functional Expenses

Year Ended June 30, 2013


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Program Management

Services and General Fundraising Total

Salaries 311,841$ 87,588$ 103,953$ 503,382$

Employee benefits 74,779 31,022 40,935 146,736

386,620 118,610 144,888 650,118

Home office costs:

Printed materials 1,854 11,583 26,158 39,595

Promotion events/mailings 461 2,366 18,467 21,294

Travel 22,324 1,040 10,630 33,994

Operations 31,264 59,754 138,970 229,988

Professional fees 13,575 17,660 9,531 40,766

Training and education - 434 666 1,100

Facilities 31,020 10,340 10,340 51,700

Total home office costs 100,498 103,177 214,762 418,437

Field office costs:

Donated services 428,876 - - 428,876

Travel 343,136 - - 343,136

Housing 46,148 - - 46,148

Field office costs 62,624 - - 62,624

Field equipment purchases 7,100 - - 7,100

Training and education 27,701 - - 27,701

National staff costs 634,331 - - 634,331

Food production 142,771 - - 142,771

Health 155 - - 155

Literacy 6,376 - - 6,376

Small business development 655,074 - - 655,074

Other 393,575 - - 393,575

Total field office costs 2,747,867 - - 2,747,867

Total Expenses 3,234,985$ 221,787$ 359,650$ 3,816,422$

Supporting Services


Statement of Functional Expenses

Year Ended June 30, 2012


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1. NATURE OF ORGANIZATION:

2. SIGNIFICANT ACCOUNTING POLICIES:

June 30, 2013 and 2012


Notes of Financial Statements

Partners Worldwide, Inc (PW), a Michigan nonprofit corporation was established for the purpose of promoting

and enhancing international and domestic development of small business in developing communities and

countries and creating jobs.

PW operates as a charitable religious organization within the meaning of Section 501(c)(3) of the Internal

Revenue Code (Code) and applicable state regulations and has been classified as a publicly supported

organization, which is not a private foundation under Section 509(a) of the Code. It is exempt from federal and

state income taxes and contributions by the public are deductible for income tax purposes.

The financial statements of PW have been prepared on the accrual basis of accounting. The preparation of

financial statements in conformity with accounting principles generally accepted in the United States of

America requires management to make estimates and assumptions that affect certain reported amounts and

disclosures. Accordingly, actual results could differ from those estimates. The significant accounting policies

followed are described below.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents include bank and brokerage checking, savings and money market accounts. Certain

items that meet the definition of cash equivalents but are part of a larger pool of investments are included in

investments. From time to time, deposits may exceed federally insured limits. PW has not experienced any lossinvestments. From time to time, deposits may exceed federally insured limits. PW has not experienced any loss

on its cash and cash equivalents and does not believe that it is exposed to any significant credit risk related to

these accounts.

INVESTMENTS

Investments are reported at fair value, as disclosed in Note 3. Realized and unrealized gains and losses are

presented in the statements of activities as a change in unrestricted net assets unless designated as temporarily

restricted by the donor. Donated investments are liquidated at market value on the date of donation.

PLEDGES RECEIVABLE

Unconditional pledges receivable are recognized as revenue in the period the pledge is made and as assets,

decreases of liabilities or expenses depending on the form of the benefits to be received. Pledges receivable are

stated at the amount management expects to collect from balances outstanding. Management provides for

probable uncollectible amounts through a charge to earnings and a credit to a valuation allowance based on its

evaluation of the status of individual accounts, past credit history with donors and the donors' current financial

condition. Balances that are still outstanding after management has used reasonable collection efforts are

written off through a charge to the valuation allowance and a credit to pledges receivable. PW considers

pledges receivable to be fully collectible; accordingly, no allowance for doubtful promises to give has been

recorded. If amounts become uncollectible, a provision for the potential loss will be charged to operations when

that determination is made. All the pledges receivable are expected to be collected within the next year.

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June 30, 2013 and 2012



2. SIGNIFICANT ACCOUNTING POLICIES, continued:

FIELD ADVANCES

ACCOUNTS RECEIVABLE AND ALLOWANCE FOR DOUBTFUL ACCOUNTS

NOTES RECEIVABLE

Partners Worldwide provides loan capital to qualified affiliates worldwide, who then manage funds locally by

identifying and providing loans to entrepreneurs who have received business training, mentoring and coaching

and are prepared to take their business to the next level.

Notes receivable are reported net of any anticipated losses due to uncollectible accounts. The allowance for

Accounts receivable are stated at the amount management expects to collect from balances outstanding.

Management has reviewed the balances that comprise the various categories of accounts receivable and

determined such balances to be fully collectible. Accordingly, no provision for uncollectible accounts is

included in the financial statements. If amounts become uncollectible, a provision for the potential loss will be

charged to operations when that determination is made.

PW funds numerous projects in countries outside the United States. Field managers in those countries will

request funding for approved projects. Field advances include amounts forwarded to those foreign bank

accounts. As funds are spent, the field advance account is decreased and the various project expenses are

reflected.

Notes receivable are reported net of any anticipated losses due to uncollectible accounts. The allowance for

loan losses is based on management’s evaluation of the collectability of the overall loan portfolio, including

trends in historical loss experience, payment patterns from the borrowers, and general economic conditions.

PW considers the notes receivable to be fully collectible; accordingly, no allowance for estimated losses have

been recorded.

PROPERTY AND EQUIPMENT

Property and equipment are stated at cost, if purchased. Donations of property and equipment are recorded as

support as estimated fair value at the time received. Such donations are reported as unrestricted support unless

the donor has restricted the donated asset to a specific purpose. Gifts of long-lived assets with explicit

restrictions that specify how the assets are to be used and gifts of cash or other assets that must be used to

acquire long-lived assets are reported as restricted support. Absent explicit donor stipulations about how long

those long-lived assets must be maintained, PW reports expirations of donor restrictions when the donated or

acquired long-lived assets are placed in service. PW follows the practice of capitalizing, at cost, all

expenditures for fixed assets in excess of $1,000. Depreciation is computed using the straight-line method over

the estimated useful life of the asset.

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June 30, 2013 and 2012




2013 2012

Assets 1,389,305$ 794,182$

Liabilities 25 3,450

Members' equity 1,389,280$ 790,732$

Investment - at cost 1,066,149$ 615,710$

Select financial attributes of PW Entrepreneurs, L3C (unaudited) as of June 30, 2013 and 2012, are as follows:

INVESTMENT IN AFFLILIATE AT COST

PW's investment in its unconsolidated affiliate, PW Entrepreneurs, L3C is carried at cost. PW has elected not to

consolidate the financial position and operations of the majority-owned (approximately 67% and 62% at June

30, 2013 and 2012, respectively) affiliate in the accompanying financial statements. U.S. generally accepted

accounting principles require, in instances of majority control, that the financial statements of parent and

subsidiary be consolidated. As of June 30, 2013 and 2012, if the financial statements of PW Entrepreneurs,

L3C had been consolidated with those of Partners Worldwide, Inc., total assets would increase by

approximately $323,000 and $178,500, liabilities would increase by $-0- and $3,500, and net assets would

increase by $323,000 and $175,000, respectively.

Investment - at cost 1,066,149$ 615,710$

CLASSES OF NET ASSETS

The financial statements report amounts separately by classes of net assets as follows:

Unrestricted net assets are those currently available at the discretion of the Board for use in the organization’s

operations, Board designated amounts for use in future ministry and those resources invested in property and

equipment.

Temporarily restricted net assets are those contributed with donors’ restrictions for specific operating purposes

or those with timing restrictions. PW temporarily restricted net assets consist of cash, promises to give and

investments restricted for business growth and job creation program efforts throughout the world.

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June 30, 2013 and 2012




REVENUE AND SUPPORT

Contributions are recorded when the cash is received, unconditional pledges are made or when ownership of

donated assets is transferred. All contributions are considered available for unrestricted use, unless specifically

restricted by the donor or subject to legal restrictions. Gifts of cash and other assets are reported as restricted

support if they are received with donor stipulations that limit the use of 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 statements of

activities as net assets released from restrictions. If the restriction is met in the same reporting period as

received, the it is recorded as unrestricted.

DONATED SERVICES

Donated services that create or enhance nonfinancial assets or that require specialized skills, are provided by

the individuals possessing those skills, and would typically need to be purchased if not provided by donation,

are recorded at fair value in the period received. Donated services were recorded in the statements of activities

in the amount of $320,677 and $428,876 at June 30, 2013 and 2012, respectively.

In addition, many other volunteers have contributed significant amounts of time to PW without compensation.

These contributions, although clearly substantial, are not recognized as contributions in the financial statements

since the recognition criteria were not met.

UNCERTAIN TAX POSITIONS

The financial statement effects of a tax position taken or expected to be taken are recognized in the financial

statements when it is more likely than not, based on the technical merits, that the position will be sustained

upon examination. Interest and penalties, if any, are included in expenses in the statements of activities. As of

June 30, 2013, PW had no uncertain tax positions that qualify for recognition or disclosure in the financial

statements.

PW files information tax returns in the U.S. and various states. PW is generally no longer subject to U.S.

federal and state income tax examinations by tax authorities for years before 2009.

since the recognition criteria were not met.

FUNCTIONAL ALLOCATION OF EXPENSES

Expenses are recorded when incurred. The costs of providing the various program and supporting services have

been summarized on a functional basis in the statements of activities. Accordingly, certain costs have been

allocated among the program and supporting services benefited.

RECLASSIFICATIONS

Certain amounts from the prior year have been reclassified to conform with the current year presentation. These

reclassifications had no effect on the change in net assets.

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June 30, 2013 and 2012



3. INVESTMENTS

Investments consist of the following at June 30:

Unrealized

Accumulated

Cost Market Appreciation

Cash equivalent fund 2,204$ 2,204$ -$

Barnabas CT Balanced Fund 1,877,231 2,078,067 200,836

1,879,435$ 2,080,271$ 200,836$

Unrealized

Accumulated

Cost Market Appreciation

Cash equivalent fund 4,394$ 4,394$ -$

Barnabas CT Balanced Fund 1,882,574 1,956,976 74,402

1,886,968$ 1,961,370$ 74,402$

Investment income consists of the following at June 30:

2013

2012

Investment income consists of the following at June 30:

2013 2012

Interest and dividend income 100,769$ 36,418$

Realized gain (loss) on sale of investments 80,523 (13)

Unrealized gain (loss) on investments 17,177 (49,075)

198,469$ (12,670)$

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June 30, 2013 and 2012



4. FAIR VALUE MEASUREMENTS:

Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities.

Fair values of assets at June 30, 2013 and 2012, are as follows:

Level 3 - Significant unobservable inputs which may include PW's own assumptions in determining fair value.

High yield bond funds, managed futures funds and alternative investments funds are valued using significant

unobservable inputs including information from fund managers based on quoted market prices or other

valuation methods.

Management reviews and evaluates the values provided by the fund manager and agrees with the valuation

methods and assumptions used in determining the fair value.

PW uses appropriate valuation techniques to determine fair value based on inputs available. When available,

PW measures fair value using Level 1 inputs because they generally provide the most reliable evidence of fair

value. Level 3 inputs are only used when Level 1 or Level 2 inputs are not available.

Level 2 - Quoted prices in markets that are not considered to be active or financial instruments for which all

significant and inputs are observable, either directly or indirectly. Bond funds are valued using significant other

inputs, including information from fund balances based on quoted market prices.

Quoted prices in

active markets for Significant other Significant other

identical assets observable inputs observable inputs

Level 1 Level 2 Level 3 Total

June 30, 2013:

Barnabas CT Balanced Fund:

Cash & equivalents 1,039$ -$ -$ 1,039$

Equity funds 853,968 - - 853,968

Bond mutual funds 359,000 - - 359,000

Bond funds - 304,021 - 304,021

Alternative funds - - 451,980 451,980

REIT funds 108,059 - - 108,059

1,322,066$ 304,021$ 451,980$ 2,078,067$

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June 30, 2013 and 2012



4. FAIR VALUE MEASUREMENTS, continued:

Quoted prices in

active markets for Significant other Significant other

identical assets observable inputs observable inputs

Level 1 Level 2 Level 3 Total

June 30, 2012:

Barnabas CT Balanced Fund:

Cash & equivalents 31,311$ -$ -$ 31,311$

Equity funds 744,434 - - 744,434

Bond funds - 559,891 - 559,891

High yield bond funds - - 136,988 136,988

Alternative funds - - 404,507 404,507

REIT funds 79,845 - - 79,845

855,590$ 559,891$ 541,495$ 1,956,976$

Level 3

Investments

Following is a reconciliation of activity for the years ended June 30, 2013 and 2012, for assets measured at fair

value based on significant unobservable inputs (Level 3):

Investments

Balance at June 30, 2011 415,787$

Reclassification from prior year of high yield bond fund 101,580

Realized and unrealized gains 24,128

Balance at June 30, 2012 541,495

Sales (136,988)

Income 21,135

Realized gain 17,514

Unrealized gain 8,824

Balance at June 30, 2013 451,980$

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June 30, 2013 and 2012



5. NOTES RECEIVABLE:

The unsecured notes receivable are due from unrelated entities and consist of the following as of June 30:

2013 2012

$ 300,000 $ -

250,000 -

200,000 200,000

200,000 -

Note receivable from a third-party organization in Mozambique

with interest payments paid annually in advance at a rate of 5%.

The note is due in March 2014 and is available for annual

renewal.

PW encourages job creation in developing countries by providing below market loan capital to in-country

lending affiliates, who in turn provide loans to small through middle market businesses.

Note receivable from a bank in Kenya due in full in November

2014, including interest at 10%.

Note receivable from a third-party organization in Mozambique


The note is due in November 2016 and is available for annual

renewal.

Note receivable from a third-party organization in Ghana, bearing

interest at 2.5% and maturing in August 2016.

200,000 -

150,000 -

100,000 -

51,861 84,351

50,000 50,000

20,000 20,000

1,321,861$ 354,351$

Note receivable from a third-party organization in Uganda with

interest payments paid annually in advance at a rate of 6%. The

note is due in November 2016.

Note receivable from a third-party organization in Uganda with

interest payments paid annually in advance at a rate of 2%. The

note is due in February 2017 and is available for annual renewal.

renewal.

Note receivable from a third-party organization in Ghana due in

full in November 2013, including interest at 5%.

Note receivable from a third-party organization in Zimbabwe


The note is due in February 2017 and is available for annual

renewal.

Note receivable from a financial institution in Uganda, due in

quarterly installments of $9,026, including interest at 5%. The

note is due in December 2014.

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5. NOTES RECEIVABLE, continued:

June 30, 2013:

Classes of notes

Not in

repayment Current

Less than 240

days past due

Greater than

240 days but

less than 2

years past

due

Greater than 2

years less than

5 years past

due

Greater than

5 years past

due TotalGlobal Notes -$ 1,321,861$ -$ -$ -$ -$ 1,321,861$

As a percentage of

total loan portfolio 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 100.00%

June 30, 2012:

Classes of notes

Not in

repayment Current

Less than 240

days past due

Greater than

240 days but

less than 2

years past

due

Greater than 2

years less than

5 years past

due

Greater than

5 years past

due TotalGlobal Notes -$ 354,351$ -$ -$ -$ -$ 354,351$

As a percentage of

total loan portfolio 0.00% 100.00% 0.00% 0.00% 0.00% 0.00% 100.00%


Notes to Financial Statements

June 30, 2013 and 2012

PW adopted the provisions of the Receivables topic of the FASB ASC. These provisions require disclosures about the

credit quality of financing receivables and the allowance for credit losses. PW’s provides loan capital to qualified

affiliates world wide, who then manage funds locally by identifying and providing loans to entrepreneurs who have

received business training, mentoring, and coaching and are prepared to take their business to the next level.

PW determined their allowance for estimated losses on these Global notes by looking at historical default rates and

analyzing the aging of the past due notes.

The aging of the Global loan portfolio by classes of notes consist of the following as of June 30, 2013 and 2012:

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5. NOTES RECEIVABLE, continued:

2013 2012

Global Global

Notes NotesNotes individually evaluated

for impairment -$ -$

Notes collectively evaluated

for impairment 1,321,861 354,351 1,321,861$ 354,351$

2013 2012

Global Global

Notes NotesPerforming 1,321,861$ 354,351$

Nonperforming - - 1,321,861$ 354,351$

For Global notes, the credit quality indicator is performance determined by delinquency status. Delinquency status is

updated quarterly by the PW’s loan issuer/loan committee.

The evaluation of impaired notes consist of the following as of June 30:

For each class of financing receivables, the following presents the recorded investment by credit quality indicator as of

June 30:


Notes to Financial Statements

June 30, 2013 and 2012

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June 30, 2013 and 2012



6. PROPERTY AND EQUIPMENT:

2013 2012

Land 350,000$ 350,000$

Building 529,420 529,420

Equipment 119,258 107,532

998,678 986,952

Accumulated depreciation (147,617) (111,235)

851,061$ 875,717$

7. NOTE PAYABLE:

8. RETIREMENT PLAN:

PW has an unsecured note payable with a third party, with interest at 1%, payable quarterly. The principal

balance is due in full upon maturity in December 2014. The proceeds of the loan were used to make below-

market loans to benefit nonprofit organizations in Kenya and Uganda (see Note 5).

PW has a defined contribution retirement plan for substantially all of its employees who meet the eligibility

requirements. Contributions to the plan are at the discretion of management. PW's current policy is to make

contributions equal to 4% of qualified wages. Contributions were $24,031 and $18,579 in 2013 and 2012,

respectively.

Property and equipment consist of the following as of June 30:

9. NET ASSETS:

Net assets consist of the following as of June 30:

2013 2012

Temporarily restricted:

Africa 721,350$ 777,642$

Global 622,408 1,018,450

Latin America 428,116 453,683

North America 94,744 170,785

Asia 40,410 41,935

1,907,028$ 2,462,495$

respectively.

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June 30, 2013 and 2012



10. MAJOR FUNDING SOURCE:

11. RELATED PARTY TRANSACTIONS:

12. SUBSEQUENT EVENTS:

Subsequent events have been evaluated through the report date, which represents the date the financial

statements were available to be issued. Subsequent events after that date have not been evaluated.

PW has an economic interest in and control over Partners Worldwide Canada but is not consolidated with PW.

As of both June 30, 2013 and 2012, PW had a receivable of $-0-, from this related party for expense

reimbursements. PW received $23,180 and $42,405 in donations and incurred $-0- and $7,118 in expenses

from Partners Worldwide Canada for the years ended June 30, 2013 and 2012, respectively.

One major donor provided approximately 26% and 24% of PW's public support and revenue and -0-% and 89%

of PW's total promises to give for the years ended June 30, 2013 and 2012, respectively.

PW has a majority-owned interest in its unconsolidated affiliate, PW Entrepreneurs, L3C (PWE). Related to

PWE, PW had a receivable of $1,660 and $-0- from this related party for expense reimbursements, at June 30,

2013 and 2012, respectively. Management fees of $29,626 and $-0- were paid to PW by PWE for the years

ended June 30, 2013 and 2012, respectively.

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Documents

Pw 2013 audited financials