Population Services International

“During 2016, PSI became aware of significant diversions of assets totaling $822,151 in different instances across various countries, which included $543,626 of theft by third parties and $278,525 of diversions involving PSI employees. PSI operates in challenging operating environments and while PSI implements necessary controls and security to secure the assets under our control in these instances conflicts in the operating countries meant we were unable to secure the assets against looting and theft. PSI also has established internal controls to guard against internal diversions of assets, but in 2016 there were instances where controls were overridden and losses occurred. For all instances reported, PSI performed investigations to determine the extent of the issue, reported the value to any funders whose activities were impacted by the diversions, ensured that funds were returned from other sources, and identified improvements to internal controls to reduce the risk of similar occurrences in the future.”

“THE ORGANIZATION'S GOVERNING BODY IS PRESENTED WITH A DRAFT OF THE FORMS 990 AND 990-T PRIOR TO FILING. THE audit and compliance committee OF THE GOVERNING BODY IS ABLE TO SPEAK DIRECTLY WITH THE PREPARER TO HAVE ANY QUESTIONS OR CONCERNS ANSWERED. THE audit and compliance committee AUTHORIZES THAT THE FILINGS BE FINALIZED AND SUBMITTED TO THE INTERNAL REVENUE SERVICE.”

“The organization requires officers, directors, and key employees to complete the form annually and the forms are reviewed for any disclosures. A decision is made to determine whether the director must abstain in voting on any matters where the conflict may be an issue.”

“The CEO incentive compensation is determined by the organization's board of directors. The board obtains comparability statistics from organizations of similiar size and also considers additional factors including skills needed for the position. The board then votes and approves the level of compensation for the CEO. The CEO consults with the board on compensation for other key employees.”

“The organization makes its governing documents, conflict of interest policy, and financial statements available to the public upon request.”

“ANGOLA, BELIZE, BENIN, BURUNDI, CAMBODIA, CAMEROON, COSTA RICA, KAZAKHSTAN, KYRGYZSTAN, TAJIKISTAN, COTE D IVOIRE, DEMOCRATIC REPUBLIC OF CONGO, DOMINICAN REPUBLIC, EL SALVADOR, ETHIOPIA, GUATEMALA, ghana, GUINEA, HAITI, HONDURAS, INDIA, JAMAICA, KENYA, LAOS, LESOTHO, LIBERIA, MADAGASCAR, MALAWI, MALI, MOZAMBIQUE, MYANMAR, NEPAL, NICARAGUA, NIGER, PAKISTAN, PANAMA, PAPUA NEW GUINEA, PARAGUAY, RUSSIA, SOMALILAND, SOUTH AFRICA, SOUTH SUDAN, SWAZILAND, TANZANIA, TRINIDAD & TOBAGO, UGANDA, VIETNAM, ZAMBIA, ZIMBABWE”

“FOREIGN CURRENCY TRANSLATION Gains 52,927 INTEREST RECORDED TO RELATED ORGANIZATION -45,189 MISCELLANEOUS ADJUSTMENT 35,726 ---------- TOTAL 43,464”

“There have been no changes during the year in the process for oversight of the audit of the financial statements.”