SSD 13-14 Federal Single Audit
SSD 13-14 Federal Single Audit
SSD 13-14 Federal Single Audit
<
=
9
>
>
>
<
=
.
<
=
E
>
<
>
<
<
<
>
>
<
>
>
<
>
<
<
>
<
>
<
<
>
=
M
<
=
8
"
"
&
'
'
"
"
"
)HGHUDO6XPPDU\
6FKHGXOH2I)HGHUDO$XGLW)LQGLQJV$QG4XHVWLRQHG&RVWV
6WDWXV2I3ULRU$XGLW)LQGLQJV
,QGHSHQGHQW$XGLWRUV5HSRUW2Q,QWHUQDO&RQWURO2YHU)LQDQFLDO5HSRUWLQJ$QG2Q
&RPSOLDQFH$QG2WKHU0DWWHUV%DVHG2Q$Q$XGLW2I)LQDQFLDO6WDWHPHQWV3HUIRUPHG,Q
$FFRUGDQFH:LWK*RYHUQPHQW$XGLWLQJ6WDQGDUGV
,QGHSHQGHQW$XGLWRUV5HSRUW2Q&RPSOLDQFH)RU(DFK0DMRU)HGHUDO3URJUDP$QG2Q
,QWHUQDO&RQWURO2YHU&RPSOLDQFH,Q$FFRUGDQFH:LWK20%&LUFXODU$
,QGHSHQGHQW$XGLWRUV5HSRUW2Q)LQDQFLDO6WDWHPHQWV
)LQDQFLDO6HFWLRQ
&RUUHFWLYH$FWLRQ3ODQ)RU)LQGLQJV5HSRUWHG8QGHU20%&LUFXODU$
$ERXW7KH6WDWH$XGLWRUV2IILFH
7KH UHVXOWV RI RXU DXGLW RI 6HDWWOH 6FKRRO 'LVWULFW 1R DUH VXPPDUL]HG EHORZ LQ DFFRUGDQFH
ZLWK862IILFHRI0DQDJHPHQWDQG%XGJHW&LUFXODU$
$QXQPRGLILHGRSLQLRQZDVLVVXHGRQWKHILQDQFLDOVWDWHPHQWV
,QWHUQDO&RQWURO2YHU)LQDQFLDO5HSRUWLQJ
x
:H LGHQWLILHG QR GHILFLHQFLHV LQ WKH GHVLJQ RU RSHUDWLRQ RI
LQWHUQDOFRQWURORYHUILQDQFLDOUHSRUWLQJWKDWZHFRQVLGHUWREHVLJQLILFDQWGHILFLHQFLHV
p
:H LGHQWLILHG QR GHILFLHQFLHV WKDW ZH FRQVLGHU WR EH PDWHULDO
ZHDNQHVVHV
:H QRWHG QR LQVWDQFHV RI QRQFRPSOLDQFH WKDW ZHUH PDWHULDO WR WKH ILQDQFLDO VWDWHPHQWV RI WKH
'LVWULFW
,QWHUQDO&RQWURO2YHU0DMRU3URJUDPV
x
:HLGHQWLILHGGHILFLHQFLHVLQWKHGHVLJQRURSHUDWLRQRILQWHUQDO
FRQWURORYHUPDMRUIHGHUDOSURJUDPVWKDWZHFRQVLGHUWREHVLJQLILFDQWGHILFLHQFLHV
p
:H LGHQWLILHG QR GHILFLHQFLHV WKDW ZH FRQVLGHU WR EH PDWHULDO
ZHDNQHVVHV
:HLVVXHGDQXQPRGLILHGRSLQLRQRQWKH'LVWULFWVFRPSOLDQFHZLWKUHTXLUHPHQWVDSSOLFDEOHWR
HDFKRILWVPDMRUIHGHUDOSURJUDPV
:H UHSRUWHG ILQGLQJV WKDW DUH UHTXLUHG WR EH GLVFORVHG XQGHU VHFWLRQ D RI 20% &LUFXODU
$
7LWOH,*UDQWVWR/RFDO(GXFDWLRQ
$JHQFLHV
+LJK6FKRRO*UDGXDWLRQ,QLWLDWLYH
86'HSDUWPHQWRI(GXFDWLRQ
6
2IILFHRI6XSHULQWHQGHQWRI,QVWUXFWLRQ
*5*5*5
*5*5*5
*5*5*5
*5*5*5
*5*5
'XULQJ ILVFDO \HDU WKH 'LVWULFW VSHQW LQ IHGHUDO IXQGV :H
DXGLWHG ILYH PDMRU SURJUDPV ZLWK H[SHQGLWXUHV WRWDOLQJ :H QRWHG
WKH 'LVWULFW KDG LVVXHV ZLWK WLPH DQG HIIRUW GRFXPHQWDWLRQ IRU WZR RI WKH ILYH
PDMRUSURJUDPVZHDXGLWHG7LWOH,DQG+LJK6FKRRO*UDGXDWLRQ,QLWLDWLYH
$Q\ HPSOR\HH FRPSHQVDWLRQ FKDUJHG WR IHGHUDO JUDQWV PXVW EH VXSSRUWHG E\
GRFXPHQWDWLRQWKDWPHHWVWKHVWDQGDUGVRIWKH2IILFHRI0DQDJHPHQWDQG%XGJHW
20%&LUFXODU$FRVWSULQFLSOHVLQFOXGLQJZULWWHQDQGFHUWLILHGDIWHUWKH
IDFW GRFXPHQWDWLRQ RI DFWXDO ZRUN 'HSHQGLQJ RQ WKH QXPEHU DQG W\SH RI
DFWLYLWLHVHPSOR\HHVZRUNWLPHDQGHIIRUWGRFXPHQWDWLRQFDQEHGRFXPHQWHGRQD
VHPLDQQXDO FHUWLILFDWLRQ RU D PRQWKO\ SHUVRQQHO DFWLYLW\ UHSRUW VXFK DV D
WLPHVKHHW
:H DXGLWHG WKH 'LVWULFWV LQWHUQDO FRQWUROV RYHU SD\UROO WR GHWHUPLQH ZKHWKHU
VDODULHV DQG EHQHILWV FKDUJHG WR WKH JUDQW ZHUH VXSSRUWHG E\ WLPH DQG HIIRUW
GRFXPHQWDWLRQDVUHTXLUHGE\IHGHUDOUHJXODWLRQV(PSOR\HHVZKRZRUNIXOOWLPH
RQ WKHLU SDUWLFXODU IHGHUDO SURJUDP DUH UHTXLUHG WR FRPSOHWH VHPLDQQXDO
l
FHUWLILFDWLRQVDQGPXVWEHVLJQHGE\WKHHPSOR\HHRUVXSHUYLVRU\RIILFLDOKDYLQJ
ILUVWKDQGNQRZOHGJHRIWKHZRUNSHUIRUPHGE\WKHHPSOR\HH
2XUDXGLWIRXQGWKDWWKH'LVWULFWGLGQRWIROORZWKHSURFHGXUHVLQSODFHWRHQVXUH
VHPLDQQXDOWLPHDQGHIIRUWFHUWLILFDWLRQVZHUHVLJQHGDVUHTXLUHG:HFRQVLGHU
WKHVHLQWHUQDOFRQWUROZHDNQHVVHVWREHVLJQLILFDQWGHILFLHQFLHV
7KH3ULQFLSDOVRU3URJUDP0DQDJHUUHVSRQVLEOHIRUFHUWLI\LQJWKHWLPHDQGHIIRUW
GLG QRW UHVSRQG WR UHSHDWHG UHTXHVWV IURP &HQWUDO $FFRXQWLQJ WR UHYLHZ DQG
DSSURYHVHPLDQQXDOWLPHDQGHIIRUWFHUWLILFDWLRQV
:LWKRXW SURSHU WLPH DQG HIIRUW UHFRUGV WKH 'LVWULFW LV QRW LQ FRPSOLDQFH ZLWK
IHGHUDOWLPHDQGHIIRUWUHTXLUHPHQWV
2XUDXGLWIRXQG
x
RXWRI7LWOH,VHPLDQQXDOFHUWLILFDWLRQVZHUHQRWFHUWLILHGRUZHUH
FHUWLILHG DIWHU UHTXHVWHG IRU DXGLW 7KHVH HPSOR\HHV FKDUJHG WR
WKHJUDQW
:HZHUHDEOHWRREWDLQGRFXPHQWDWLRQWRGHPRQVWUDWHWKHHPSOR\HHVZRUNHGRQ
WKHLU UHVSHFWLYH JUDQWV IRU WKH DPRXQW RI WLPH FKDUJHG 7KHUHIRUH ZH DUH QRW
TXHVWLRQLQJWKHVHFRVWV
:H UHFRPPHQG WKH 'LVWULFW IROORZ WLPH DQG HIIRUW LQWHUQDO FRQWUROV WR HQVXUH LW
PHHWV IHGHUDO UHTXLUHPHQWV IRU GRFXPHQWDWLRQ RI DOO SD\UROO FRVWV FKDUJHG WR
JUDQWV
:HWKDQNWKH'LVWULFWIRULWVDVVLVWDQFHGXULQJWKHDXGLWDQGZLOOUHYLHZWKLVDUHD
DJDLQGXULQJWKHQH[WDXGLW
VWDWHV
:KHQ SHUIRUPLQJ *$*$6 ILQDQFLDO DXGLWV DXGLWRUV VKRXOG
FRPPXQLFDWH LQ WKH UHSRUW RQ LQWHUQDO FRQWURO RYHU ILQDQFLDO
UHSRUWLQJ DQG FRPSOLDQFH EDVHG XSRQ WKH ZRUN SHUIRUPHG
VLJQLILFDQW GHILFLHQFLHV DQG PDWHULDO ZHDNQHVVHV LQ LQWHUQDO
FRQWUROLQVWDQFHVRIIUDXGDQGQRQFRPSOLDQFHZLWKSURYLVLRQV
RIODZVRUUHJXODWLRQVWKDWKDYHDPDWHULDOHIIHFWRQWKHDXGLWDQG
DQ\RWKHULQVWDQFHVWKDWZDUUDQWWKHDWWHQWLRQRIWKRVHFKDUJHGZLWK
JRYHUQDQFH QRQFRPSOLDQFH ZLWK SURYLVLRQV RI FRQWUDFWV RU
JUDQW DJUHHPHQWV WKDW KDV D PDWHULDO HIIHFW RQ WKH DXGLW DQG
DEXVHWKDWKDVDPDWHULDOHIIHFWRQWKHDXGLW
$
GHILFLHQF\LQLQWHUQDOFRQWURORYHUFRPSOLDQFHH[LVWVZKHQ
WKH GHVLJQ RU RSHUDWLRQ RI D FRQWURO RYHU FRPSOLDQFH GRHV
QRWDOORZPDQDJHPHQWRUHPSOR\HHVLQWKHQRUPDOFRXUVH
RISHUIRUPLQJWKHLUDVVLJQHGIXQFWLRQVWRSUHYHQWRUGHWHFW
DQGFRUUHFWQRQFRPSOLDQFHRQDWLPHO\EDVLV$GHILFLHQF\
LQ
H[LVWV ZKHQ
D FRQWURO QHFHVVDU\ WR PHHW WKH
FRQWUROREMHFWLYHLVPLVVLQJRU DQH[LVWLQJFRQWUROLVQRW
SURSHUO\ GHVLJQHG VR WKDW HYHQ LI WKH FRQWURO RSHUDWHV DV
GHVLJQHG WKH FRQWURO REMHFWLYH ZRXOG QRW EH PHW $
GHILFLHQF\ LQ
H[LVWV ZKHQ D SURSHUO\ GHVLJQHG
FRQWURO GRHV QRW RSHUDWH DV GHVLJQHG RU WKH SHUVRQ
SHUIRUPLQJ WKH FRQWURO GRHV QRW SRVVHVV WKH QHFHVVDU\
DXWKRULW\RUFRPSHWHQFHWRSHUIRUPWKHFRQWUROHIIHFWLYHO\
RFFXU
862IILFHRI0DQDJHPHQWDQG%XGJHW&LUFXODU$$XGLWVRI6WDWHV/RFDO
*RYHUQPHQWV DQG 1RQ3URILW 2UJDQL]DWLRQV 6HFWLRQ $XGLWHH
5HVSRQVLELOLWLHVVWDWHVLQSDUW
7KHDXGLWHHVKDOO
E 0DLQWDLQ LQWHUQDO FRQWURO RYHU )HGHUDO SURJUDPV WKDW SURYLGHV
UHDVRQDEOH DVVXUDQFH WKDW WKH DXGLWHH LVPDQDJLQJ )HGHUDO DZDUGV
LQ FRPSOLDQFH ZLWK ODZV UHJXODWLRQV DQG WKH SURYLVLRQV RI
FRQWUDFWVRUJUDQWDJUHHPHQWVWKDWFRXOGKDYHDPDWHULDOHIIHFWRQ
HDFKRILWV)HGHUDOSURJUDPV
F&RPSO\ZLWKODZVUHJXODWLRQVDQGWKHSURYLVLRQVRIFRQWUDFWV
RUJUDQWDJUHHPHQWVUHODWHGWRHDFKRILWV)HGHUDOSURJUDPV
862IILFHRI0DQDJHPHQWDQG%XGJHW&LUFXODU$&RVW3ULQFLSOHVIRU6WDWH
/RFDO DQG ,QGLDQ 7ULEDO *RYHUQPHQWV &)5 3DUW $WWDFKPHQW % 6HFWLRQ
KVWDWHVLQSDUW
l
7HDFKHU,QFHQWLYH)XQG
86'HSDUWPHQWRI(GXFDWLRQ
6$
1$
1$
,Q WKH VFKRRO \HDU WKH 'LVWULFW VSHQW IRU WKH 7HDFKHU
,QFHQWLYH)XQGJUDQWLQILVFDO\HDULQFOXGLQJLQWHDFKHUVWLSHQGV
7KH REMHFWLYH RI WKH SURJUDP LV WR GHYHORS DQG LPSOHPHQW SHUIRUPDQFHEDVHG
FRPSHQVDWLRQ V\VWHPV IRU WHDFKHUV SULQFLSDOV DQG RWKHU SHUVRQQHO LQ KLJKQHHG
VFKRROV 7KH FRPSHQVDWLRQ V\VWHPV PXVW LQFOXGH JURZWK LQ VWXGHQW DFDGHPLF
DFKLHYHPHQWDVZHOODVFODVVURRPSHUIRUPDQFHHYDOXDWLRQV,QRUGHUWRUHFHLYHD
VWLSHQG RXW RI WKH 7HDFKHU ,QFHQWLYH )XQG FHUWLILFDWHG WHDFKHUV PXVW PHHW ERWK
SHUIRUPDQFH DQG VWXGHQW JURZWK UHTXLUHPHQWV 7HDFKHUV FDQ UHFHLYH XS WR WZR
WKRXVDQGGROODUVLQVWLSHQGVRQHWKRXVDQGIRUHDFKUHTXLUHPHQWPHW
7KH 'LVWULFW FKDUJHG WKH SHUIRUPDQFH VWLSHQGV RI WZHOYH WHDFKHUV WR WKH IHGHUDO
SURJUDP ZLWKRXW GHWHUPLQLQJ SHUIRUPDQFH FULWHULRQ ZDV PHW 7KH 'LVWULFW
LQFOXGHGDOOWHDFKHUSHUIRUPDQFHEDVHGHYDOXDWLRQVWLSHQGDPRXQWVIURPVFKRROV
ZKLFK PHW WKH VWXGHQW JURZWK UHTXLUHPHQW LQVWHDG RI UHYLHZLQJ LQGLYLGXDO
SHUIRUPDQFH HYDOXDWLRQ UHVXOWV WR GHWHUPLQH WKH WHDFKHUV ZKR PHW WKH
UHTXLUHPHQWV 7KH 'LVWULFW PDLQWDLQV D SHUIRUPDQFHEDVHG HYDOXDWLRQ VXPPDU\
VSUHDGVKHHWWKDWFDQEHUHYLHZHGWRLGHQWLI\WKRVHWHDFKHUVWKDWPD\QRWPHHWWKH
UHTXLUHGSHUIRUPDQFHOHYHOVEXWWKLVZDVQRWXVHGLQWKHHYDOXDWLRQ
7KHJUDQWSURJUDPPDQDJHUGLGQRWGHGLFDWHHQRXJKWLPHRUUHVRXUFHVWRLGHQWLI\
WKH WHDFKHUV ZKR LQGLYLGXDOO\ PHW SHUIRUPDQFH HYDOXDWLRQ UHTXLUHPHQWV ,QVWHDG
WKH'LVWULFWXVHGDGLIIHUHQWPHWKRGRORJ\WRFDOFXODWHWKHVWLSHQGV7KLVZDVQRW
DSSURYHGE\WKHJUDQWLQJDJHQF\
7KH 'LVWULFW GLG QRW SURSHUO\ GHWHUPLQH WKH WHDFKHUV ZKR PHW SHUIRUPDQFH
HYDOXDWLRQ GRPDLQ UHTXLUHPHQWV DQG DV D UHVXOW WKH 'LVWULFW FKDUJHG
VWLSHQGDQGEHQHILWFRVWVWKDWZHUHXQDOORZDEOHWRWKHJUDQW
:H UHFRPPHQG WKH 'LVWULFW RQO\ FKDUJH VWLSHQGV WKDW DUH DOORZDEOH SHU WKH
DSSURYHGJUDQWDJUHHPHQW
:H WKDQN WKH 'LVWULFW IRU LWV DVVLVWDQFH GXULQJ WKH DXGLW DQG ZLOO IROORZ XS RQ
FRUUHFWLYHDFWLRQVWDNHQGXULQJWKHQH[WDXGLW
7KHDXGLWHHVKDOO
E 0DLQWDLQ LQWHUQDO FRQWURO RYHU )HGHUDO SURJUDPV WKDW SURYLGHV
UHDVRQDEOHDVVXUDQFHWKDWWKHDXGLWHHLVPDQDJLQJ)HGHUDODZDUGVLQ
FRPSOLDQFH ZLWK ODZV UHJXODWLRQV DQG WKH SURYLVLRQV RI FRQWUDFWV
RUJUDQWDJUHHPHQWVWKDWFRXOGKDYHDPDWHULDOHIIHFWRQHDFKRILWV
)HGHUDOSURJUDPV
7KLV VFKHGXOH SUHVHQWV WKH VWDWXV RI ILQGLQJV UHSRUWHG LQ SULRU DXGLW SHULRGV 7KH VWDWXV OLVWHG
EHORZ LV WKH UHSUHVHQWDWLRQ RI 6HDWWOH 6FKRRO 'LVWULFW 1R 7KH 6WDWH $XGLWRUV 2IILFH KDV
UHYLHZHGWKHVWDWXVDVSUHVHQWHGE\WKH'LVWULFW
1$
+LJK6FKRRO*UDGXDWLRQ,QLWLDWLYH86
'HSDUWPHQWRI(GXFDWLRQ
7KH 'LVWULFW GLG QRW KDYH DGHTXDWH LQWHUQDO FRQWUROV WR HQVXUH DOO +LJK 6FKRRO *UDGXDWLRQ
,QLWLDWLYHIXQGVZHUHXVHGIRUDOORZHGDFWLYLWLHV
,QWKHVFKRRO\HDUWKH'LVWULFWUHFHLYHGPLOOLRQIURPWKH86'HSDUWPHQWRI
(GXFDWLRQV+LJK6FKRRO*UDGXDWLRQ,QLWLDWLYH+6*,JUDQW7KHJUDQWVXSSRUWVVFKRROGURSRXW
SUHYHQWLRQ DQG UHHQWU\ HIIRUWV 6XFK DFWLYLWLHV VKRXOG UDLVH VWDQGDUGV DQG H[SHFWDWLRQV IRU
GLVDGYDQWDJHG VWXGHQWV WUDGLWLRQDOO\ XQGHUVHUYHG LQ VFKRROV LQ RUGHU WR HQVXUH VFKRRO
FRPSOHWLRQ
,QWKHVFKRRO\HDUDXGLWZHIRXQGGHILFLHQFLHVLQLQWHUQDOFRQWUROVRYHUFRPSOLDQFH
ZLWK SURJUDP UHTXLUHPHQWV WKDW FROOHFWLYHO\ FRQVWLWXWHG D PDWHULDO ZHDNQHVV DQG LVVXHG D
TXDOLILHG RSLQLRQ RQ WKH 'LVWULFWV FRPSOLDQFH ZLWK JUDQW UHTXLUHPHQWV :H UHSRUWHG
QRQFRPSOLDQFH ZLWK DFWLYLWLHV DOORZHG DQG DOORZDEOH FRVW FRPSOLDQFH UHTXLUHPHQWV DQG
TXHVWLRQHGFRVWVRIRUSHUFHQWRIWKHWRWDOSURJUDP
'XULQJ WKH VFKRRO \HDU DXGLW ZH IRXQG WKH 'LVWULFW XVHG JUDQW IXQGV WR SD\ IRU
DFWLYLWLHVWKDWZHUHQRWDOORZHGE\WKHJUDQWDJUHHPHQWRUZHUHQRWVSHFLILFDOO\DSSURYHGE\WKH
IHGHUDOJUDQWRU7KHUHZHUHTXHVWLRQHGFRVWVRIIRUSD\UROOFRVWVWRD)DPLO\6XSSRUW
:RUNHUSRVLWLRQDQGWRSXUFKDVHDSLHFHRIIXUQLWXUHWKDWZHUHQRWDOORZHGE\WKHJUDQW
3DUWLDOO\&RUUHFWHG
1R&RUUHFWLYH$FWLRQ7DNHQ
)LQGLQJLVFRQVLGHUHGQRORQJHUYDOLG
;)XOO\&RUUHFWHG
"
"
"
&
'
'
'
&
'
"
&
"
&
"
1
0
'
&
&
'
"
&
'
"
0
"
'
'
"
'
'
"
'
"
"
'
'
'
'
"
'
'
<
'
"
'
&
&
'
&
'
"
'
&
>
'
&
"
"
'
'
'
&
'
"
'
'
&
'
"
&
"
"
&
@
$
'
"
'
'
'
'
"
'
"
"
"
'
'
"
'
'
"
'
&
'
&
'
"
"
"
"
&
"
&
&
&
'
'
'
'
'
'
'
'
&
"
'
'
'
'
'
"
"
'
'
'
"
&
"
&
'
"
'
'
'
0
4
'
'
'
"
'
L
4
)
&
%RDUGRI'LUHFWRUV
6HDWWOH6FKRRO'LVWULFW1R
6HDWWOH:DVKLQJWRQ
:H KDYH DXGLWHG WKH FRPSOLDQFH RI 6HDWWOH 6FKRRO 'LVWULFW 1R .LQJ &RXQW\ :DVKLQJWRQ
ZLWK WKH W\SHV RI FRPSOLDQFH UHTXLUHPHQWV GHVFULEHG LQ WKH 86
WKDW FRXOG KDYH D GLUHFW DQG PDWHULDO
HIIHFWRQHDFKRILWVPDMRUIHGHUDOSURJUDPVIRUWKH\HDUHQGHG$XJXVW7KH'LVWULFWV
PDMRUIHGHUDOSURJUDPVDUHLGHQWLILHGLQWKHDFFRPSDQ\LQJ)HGHUDO6XPPDU\
s
0DQDJHPHQWLVUHVSRQVLEOHIRUFRPSOLDQFHZLWKWKHUHTXLUHPHQWVRIODZVUHJXODWLRQVFRQWUDFWV
DQGJUDQWVDSSOLFDEOHWRLWVIHGHUDOSURJUDPV
2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQFRPSOLDQFHIRUHDFKRIWKH'LVWULFWVPDMRUIHGHUDO
SURJUDPV EDVHG RQ RXU DXGLW RI WKH W\SHV RI FRPSOLDQFH UHTXLUHPHQWV UHIHUUHG WR DERYH :H
FRQGXFWHGRXUDXGLWRIFRPSOLDQFHLQDFFRUGDQFHZLWKDXGLWLQJVWDQGDUGVJHQHUDOO\DFFHSWHGLQ
WKH 8QLWHG 6WDWHV RI $PHULFD WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ
LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV DQG
20% &LUFXODU $
7KRVHVWDQGDUGVDQG20%&LUFXODU$UHTXLUHWKDWZHSODQDQGSHUIRUPWKHDXGLWWRREWDLQ
UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU QRQFRPSOLDQFH ZLWK WKH W\SHV RI FRPSOLDQFHUHTXLUHPHQWV
UHIHUUHG WR DERYH WKDW FRXOG KDYH D GLUHFW DQG PDWHULDO HIIHFW RQ D PDMRU IHGHUDO SURJUDP
RFFXUUHG$QDXGLWLQFOXGHVH[DPLQLQJRQDWHVWEDVLVHYLGHQFHDERXWWKH'LVWULFWVFRPSOLDQFH
ZLWKWKRVHUHTXLUHPHQWVDQGSHUIRUPLQJVXFKRWKHUSURFHGXUHVDVZHFRQVLGHUHGQHFHVVDU\LQWKH
FLUFXPVWDQFHV
:H EHOLHYH WKDW RXU DXGLW SURYLGHV D UHDVRQDEOH EDVLV IRU RXU RSLQLRQ RQ FRPSOLDQFH IRU HDFK
PDMRU IHGHUDO SURJUDP 2XU DXGLW GRHV QRW SURYLGH D OHJDO GHWHUPLQDWLRQ RQ WKH 'LVWULFWV
FRPSOLDQFH
,Q RXU RSLQLRQ WKH 'LVWULFW FRPSOLHG LQ DOO PDWHULDO UHVSHFWV ZLWK WKH W\SHV RI FRPSOLDQFH
UHTXLUHPHQWVUHIHUUHGWRDERYHWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQHDFKRILWVPDMRU
IHGHUDOSURJUDPVIRUWKH\HDUHQGHG$XJXVW
0DQDJHPHQW RI WKH 'LVWULFW LV UHVSRQVLEOH IRU HVWDEOLVKLQJ DQG PDLQWDLQLQJ HIIHFWLYH LQWHUQDO
FRQWURO RYHU FRPSOLDQFH ZLWK WKH W\SHV RI FRPSOLDQFH UHTXLUHPHQWV UHIHUUHG WR DERYH ,Q
SODQQLQJ DQG SHUIRUPLQJ RXU DXGLW RI FRPSOLDQFH ZH FRQVLGHUHG WKH 'LVWULFWV LQWHUQDO FRQWURO
RYHUFRPSOLDQFHZLWKWKHW\SHVRIUHTXLUHPHQWVWKDWFRXOGKDYHDGLUHFWDQGPDWHULDOHIIHFWRQ
HDFKPDMRUIHGHUDOSURJUDPLQRUGHUWRGHWHUPLQHWKHDXGLWLQJSURFHGXUHVWKDWDUHDSSURSULDWHLQ
WKHFLUFXPVWDQFHVIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQFRPSOLDQFHIRUHDFKPDMRUIHGHUDO
SURJUDP DQG WR WHVW DQG UHSRUW RQ LQWHUQDO FRQWURO RYHU FRPSOLDQFH LQ DFFRUGDQFH ZLWK 20%
&LUFXODU$EXWQRWIRUWKHSXUSRVHRIH[SUHVVLQJDQRSLQLRQRQWKHHIIHFWLYHQHVVRILQWHUQDO
FRQWURORYHUFRPSOLDQFH$FFRUGLQJO\ZHGRQRWH[SUHVVDQRSLQLRQRQWKHHIIHFWLYHQHVVRIWKH
'LVWULFW
VLQWHUQDOFRQWURORYHUFRPSOLDQFH
$
H[LVWVZKHQWKHGHVLJQRURSHUDWLRQRIDFRQWURO
RYHUFRPSOLDQFHGRHVQRWDOORZPDQDJHPHQWRUHPSOR\HHVLQWKHQRUPDOFRXUVHRISHUIRUPLQJ
WKHLU DVVLJQHG IXQFWLRQV WR SUHYHQW RU GHWHFW DQG FRUUHFW QRQFRPSOLDQFH ZLWK D W\SH RI
FRPSOLDQFHUHTXLUHPHQWRIDIHGHUDOSURJUDPRQDWLPHO\EDVLV$
LVDGHILFLHQF\RUFRPELQDWLRQRIGHILFLHQFLHVLQLQWHUQDOFRQWURORYHU
FRPSOLDQFHVXFKWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWPDWHULDOQRQFRPSOLDQFHZLWKDW\SHRI
FRPSOLDQFHUHTXLUHPHQWRIDIHGHUDOSURJUDPZLOOQRWEHSUHYHQWHGRUGHWHFWHGDQGFRUUHFWHGRQ
LVDGHILFLHQF\RUD
DWLPHO\EDVLV$
FRPELQDWLRQ RI GHILFLHQFLHV LQ LQWHUQDO FRQWURO RYHU FRPSOLDQFH ZLWK D W\SH RI FRPSOLDQFH
UHTXLUHPHQWRIDIHGHUDOSURJUDPWKDWLVOHVVVHYHUHWKDQDPDWHULDOZHDNQHVVLQLQWHUQDOFRQWURO
RYHUFRPSOLDQFH\HWLPSRUWDQWHQRXJKWRPHULWDWWHQWLRQE\WKRVHFKDUJHGZLWKJRYHUQDQFH
2XUFRQVLGHUDWLRQRILQWHUQDOFRQWURORYHUFRPSOLDQFHZDVIRUWKHOLPLWHGSXUSRVHGHVFULEHGLQ
WKH ILUVW SDUDJUDSK RI WKLV VHFWLRQ DQG ZDV QRW GHVLJQHG WR LGHQWLI\ DOO GHILFLHQFLHV LQ LQWHUQDO
FRQWURO RYHU FRPSOLDQFH WKDW PLJKW EH PDWHULDO ZHDNQHVVHV RU VLJQLILFDQW GHILFLHQFLHV DQG
l
WKHUHIRUHPDWHULDOZHDNQHVVHVRUVLJQLILFDQWGHILFLHQFLHVPD\H[LVWWKDWZHUHQRWLGHQWLILHG:H
GLG QRW LGHQWLI\ DQ\ GHILFLHQFLHV LQ LQWHUQDO FRQWURO RYHU FRPSOLDQFH WKDW ZH FRQVLGHU WR EH
PDWHULDO ZHDNQHVVHV +RZHYHU ZH LGHQWLILHG FHUWDLQ GHILFLHQFLHV LQ LQWHUQDO FRQWURO RYHU
FRPSOLDQFH DV GHVFULEHG LQ WKH DFFRPSDQ\LQJ 6FKHGXOH RI )HGHUDO $XGLW )LQGLQJV DQG
4XHVWLRQHG &RVWV DV )LQGLQJV DQG WKDW ZH FRQVLGHU WR EH VLJQLILFDQW
GHILFLHQFLHV
7KH'LVWULFW
VUHVSRQVHWRWKHLQWHUQDOFRQWURORYHUFRPSOLDQFHILQGLQJVLGHQWLILHGLQRXUDXGLWLV
GHVFULEHGLQWKHDFFRPSDQ\LQJ6FKHGXOHRI)HGHUDO$XGLW)LQGLQJVDQG4XHVWLRQHG&RVWV7KH
'LVWULFW
V UHVSRQVH ZDV QRW VXEMHFWHG WR WKH DXGLWLQJ SURFHGXUHV DSSOLHG LQ WKH DXGLW RI
FRPSOLDQFHDQGDFFRUGLQJO\ZHH[SUHVVQRRSLQLRQRQWKHUHVSRQVH
7KHSXUSRVHRIWKLVUHSRUWRQLQWHUQDOFRQWURORYHUFRPSOLDQFHLVVROHO\WRGHVFULEHWKHVFRSHRI
RXU WHVWLQJ RI LQWHUQDO FRQWURO RYHU FRPSOLDQFH DQG WKH UHVXOWV RI WKDW WHVWLQJ EDVHG RQ WKH
UHTXLUHPHQWV RI 20% &LUFXODU $ $FFRUGLQJO\ WKLV UHSRUW LV QRW VXLWDEOH IRU DQ\ RWKHU
SXUSRVH+RZHYHUWKLVUHSRUWLVDPDWWHURISXEOLFUHFRUGDQGLWVGLVWULEXWLRQLVQRWOLPLWHG,W
DOVR VHUYHV WR GLVVHPLQDWH LQIRUPDWLRQ WR WKH SXEOLF DV D UHSRUWLQJ WRRO WR KHOS FLWL]HQV DVVHVV
JRYHUQPHQWRSHUDWLRQV
-$10-877(&3$&*)0
$&7,1*67$7($8',725
2/<03,$:$
0D\
%RDUGRI'LUHFWRUV
6HDWWOH6FKRRO'LVWULFW1R
6HDWWOH:DVKLQJWRQ
:HKDYHDXGLWHGWKHDFFRPSDQ\LQJILQDQFLDOVWDWHPHQWVRI6HDWWOH6FKRRO'LVWULFW1R.LQJ
&RXQW\:DVKLQJWRQDVRIDQGIRUWKH\HDUHQGHG$XJXVWDQGWKHUHODWHGQRWHVWRWKH
ILQDQFLDOVWDWHPHQWVZKLFKFROOHFWLYHO\FRPSULVHWKH'LVWULFWVILQDQFLDOVWDWHPHQWVDVOLVWHGRQ
SDJH
0DQDJHPHQWLVUHVSRQVLEOHIRUWKHSUHSDUDWLRQDQGIDLUSUHVHQWDWLRQRIWKHVHILQDQFLDOVWDWHPHQWV
LQ DFFRUGDQFH ZLWK WKH ILQDQFLDO UHSRUWLQJ SURYLVLRQV RI :DVKLQJWRQ 6WDWH VWDWXWHV DQG WKH
$FFRXQWLQJ0DQXDO
GHVFULEHGLQ1RWH7KLVLQFOXGHVGHWHUPLQLQJWKDWWKHEDVLVRIDFFRXQWLQJLVDFFHSWDEOHIRUWKH
SUHVHQWDWLRQ RI WKH ILQDQFLDO VWDWHPHQWV LQ WKH FLUFXPVWDQFHV 0DQDJHPHQW LV DOVR UHVSRQVLEOH
IRU WKH GHVLJQ LPSOHPHQWDWLRQ DQG PDLQWHQDQFH RI LQWHUQDO FRQWURO UHOHYDQW WR WKH SUHSDUDWLRQ
DQG IDLU SUHVHQWDWLRQ RI ILQDQFLDO VWDWHPHQWV WKDW DUH IUHH IURP PDWHULDO PLVVWDWHPHQW ZKHWKHU
GXHWRIUDXGRUHUURU
2XUUHVSRQVLELOLW\LVWRH[SUHVVDQRSLQLRQRQWKHVHILQDQFLDOVWDWHPHQWVEDVHGRQRXUDXGLW:H
FRQGXFWHG RXU DXGLW LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG
6WDWHV RI $PHULFD DQG WKH VWDQGDUGV DSSOLFDEOH WR ILQDQFLDO DXGLWV FRQWDLQHG LQ
LVVXHG E\ WKH &RPSWUROOHU *HQHUDO RI WKH 8QLWHG 6WDWHV 7KRVH VWDQGDUGV
UHTXLUH WKDW ZH SODQ DQG SHUIRUP WKH DXGLW WR REWDLQ UHDVRQDEOH DVVXUDQFH DERXW ZKHWKHU WKH
ILQDQFLDOVWDWHPHQWVDUHIUHHIURPPDWHULDOPLVVWDWHPHQW
$Q DXGLW LQYROYHV SHUIRUPLQJ SURFHGXUHV WR REWDLQ DXGLW HYLGHQFH DERXW WKH DPRXQWV DQG
GLVFORVXUHV LQ WKH ILQDQFLDO VWDWHPHQWV 7KH SURFHGXUHV VHOHFWHG GHSHQG RQ WKH DXGLWRUV
l
MXGJPHQW LQFOXGLQJ WKH DVVHVVPHQW RI WKH ULVNV RI PDWHULDO PLVVWDWHPHQW RI WKH ILQDQFLDO
VWDWHPHQWV ZKHWKHU GXH WR IUDXG RU HUURU ,Q PDNLQJ WKRVH ULVN DVVHVVPHQWV WKH DXGLWRU
FRQVLGHUV LQWHUQDO FRQWURO UHOHYDQW WR WKH 'LVWULFWV SUHSDUDWLRQ DQG IDLU SUHVHQWDWLRQ RI WKH
ILQDQFLDOVWDWHPHQWVLQRUGHUWRGHVLJQDXGLWSURFHGXUHVWKDWDUHDSSURSULDWHLQWKHFLUFXPVWDQFHV
EXW QRW IRU WKH SXUSRVH RI H[SUHVVLQJ DQ RSLQLRQ RQ WKH HIIHFWLYHQHVV RI WKH 'LVWULFWV LQWHUQDO
FRQWURO $FFRUGLQJO\ ZH H[SUHVV QR VXFK RSLQLRQ $Q DXGLW DOVR LQFOXGHV HYDOXDWLQJ WKH
DSSURSULDWHQHVV RI DFFRXQWLQJ SROLFLHV XVHG DQG WKH UHDVRQDEOHQHVV RI VLJQLILFDQW DFFRXQW
HVWLPDWHV PDGH E\ PDQDJHPHQW DV ZHOO DV HYDOXDWLQJ WKH RYHUDOO SUHVHQWDWLRQ RI WKH ILQDQFLDO
VWDWHPHQWV
:H EHOLHYH WKDW WKH DXGLWHYLGHQFH ZHKDYH REWDLQHG LV VXIILFLHQWDQG DSSURSULDWH WR SURYLGH D
EDVLVIRURXUDXGLWRSLQLRQV
$VGHVFULEHGLQ1RWHWKH'LVWULFWKDVSUHSDUHGWKHVHILQDQFLDOVWDWHPHQWVWRPHHWWKHILQDQFLDO
UHSRUWLQJUHTXLUHPHQWVRI:DVKLQJWRQ6WDWHVWDWXWHVXVLQJDFFRXQWLQJSUDFWLFHVSUHVFULEHGE\WKH
$FFRXQWLQJ 0DQXDO 7KRVH DFFRXQWLQJ SUDFWLFHV GLIIHU IURP DFFRXQWLQJ SULQFLSOHV JHQHUDOO\
DFFHSWHGLQWKH8QLWHG6WDWHVRI$PHULFD*$$37KHGLIIHUHQFHLQWKHVHDFFRXQWLQJSUDFWLFHV
LVDOVRGHVFULEHGLQ1RWH
,QRXURSLQLRQWKHILQDQFLDOVWDWHPHQWVUHIHUUHGWRDERYHSUHVHQWIDLUO\LQDOOPDWHULDOUHVSHFWV
WKHILQDQFLDOSRVLWLRQRI6HDWWOH6FKRRO'LVWULFW1RDVRI$XJXVWDQGWKHFKDQJHVLQ
ILQDQFLDO SRVLWLRQ WKHUHRI IRU WKH \HDU WKHQ HQGHG LQ DFFRUGDQFH ZLWK WKH EDVLV RI DFFRXQWLQJ
GHVFULEHGLQ1RWH
Q
S
,QRXURSLQLRQWKHILQDQFLDOVWDWHPHQWVUHIHUUHGWRDERYHSUHVHQWIDLUO\LQDOOPDWHULDOUHVSHFWV
WKH UHVSHFWLYH ILQDQFLDO SRVLWLRQ RI WKH *HQHUDO $6% 'HEW 6HUYLFH &DSLWDO 3URMHFW DQG
)LGXFLDU\IXQGVDVRI$XJXVWDQGWKHFKDQJHVLQILQDQFLDOSRVLWLRQWKHUHRIIRUWKH\HDU
WKHQHQGHGLQDFFRUGDQFHZLWKDFFRXQWLQJSULQFLSOHVJHQHUDOO\DFFHSWHGLQWKH8QLWHG6WDWHVRI
$PHULFD
$VGLVFXVVHGLQ1RWHWRWKHILQDQFLDOVWDWHPHQWVWKH'LVWULFWDGRSWHGQHZDFFRXQWLQJJXLGDQFH
*RYHUQPHQWDO $FFRXQWLQJ 6WDQGDUGV %RDUG 6WDWHPHQW 1R
2XURSLQLRQLVQRWPRGLILHGZLWKUHVSHFWWRWKLVPDWWHU
8
2XUDXGLWZDVSHUIRUPHGIRUWKHSXUSRVHRIIRUPLQJDQRSLQLRQRQWKHILQDQFLDOVWDWHPHQWVWDNHQ
DV D ZKROH 7KH DFFRPSDQ\LQJ 6FKHGXOH RI ([SHQGLWXUHV RI )HGHUDO $ZDUGV LV SUHVHQWHG IRU
SXUSRVHVRIDGGLWLRQDODQDO\VLVDVUHTXLUHGE\862IILFHRI0DQDJHPHQWDQG%XGJHW&LUFXODU
7KHDFFRPSDQ\LQJ
$
6FKHGXOHV RI /RQJ7HUP /LDELOLWLHV DUH DOVR SUHVHQWHG IRU SXUSRVHV RI DGGLWLRQDO DQDO\VLV DV
UHTXLUHGE\WKHSUHVFULEHG$FFRXQWLQJ0DQXDO 7KHVHVFKHGXOHVDUHQRWDUHTXLUHGSDUWRIWKH
ILQDQFLDO VWDWHPHQWV 6XFK LQIRUPDWLRQ LV WKH UHVSRQVLELOLW\ RI PDQDJHPHQW DQG ZDV GHULYHG
IURP DQG UHODWHV GLUHFWO\ WR WKH XQGHUO\LQJ DFFRXQWLQJ DQG RWKHU UHFRUGV XVHG WR SUHSDUH WKH
ILQDQFLDOVWDWHPHQWV7KHLQIRUPDWLRQKDVEHHQVXEMHFWHGWRWKHDXGLWLQJSURFHGXUHVDSSOLHGLQ
WKHDXGLWRIWKHILQDQFLDOVWDWHPHQWVDQGFHUWDLQDGGLWLRQDOSURFHGXUHVLQFOXGLQJFRPSDULQJDQG
UHFRQFLOLQJ VXFK LQIRUPDWLRQ GLUHFWO\ WR WKH XQGHUO\LQJ DFFRXQWLQJ DQG RWKHU UHFRUGV XVHG WR
SUHSDUH WKH ILQDQFLDO VWDWHPHQWV RU WR WKH ILQDQFLDO VWDWHPHQWV WKHPVHOYHV DQG RWKHU DGGLWLRQDO
SURFHGXUHV LQ DFFRUGDQFH ZLWK DXGLWLQJ VWDQGDUGV JHQHUDOO\ DFFHSWHG LQ WKH 8QLWHG 6WDWHV RI
$PHULFD,QRXURSLQLRQWKHLQIRUPDWLRQLVIDLUO\VWDWHGLQDOOPDWHULDOUHVSHFWVLQUHODWLRQWR
WKHILQDQFLDOVWDWHPHQWVWDNHQDVDZKROH
-$10-877(&3$&*)0
$&7,1*67$7($8',725
2/<03,$:$
0D\
l
)
'
&
&
&
&
&
&
&
&
&
&
&
&
&
'
&
(
&
'
+
*
'
'
&
'
&
.
&
%
)
'
(
&
7
9
>
C
9
8
D
!
4
B
8
$
7
>
"
9
:
!
7
#
3
=
6
<
>
>
E
;
8
"
"
)
+
&
'
*
&
)
'
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
&
'
'
&
&
&
'
)
/
&
&
&
&
&
&
'
'
'
&
&
'
'
'
&
&
)
&
"
N
!
4
"
I
!
J
#
#
5
5
4
7
Q
I
"
7
#
L
#
"
3
4
3
4
7
>
Q
"
3
5
6
9
M
9
$
I
8
9
Q
#
M
"
9
#
"
!
"
K
!
"
7
"
N
5
I
$
6
E
"
"
"
g
b
&RXQW\7UHDVXUHU
V
,QYHVWPHQW3RRO
)XQG
&DUU\LQJ$PRXQW
&DSLWDO3URMHFWV
'HEW6HUYLFH
$VVRFLDWHG6WXGHQW
%RG\
3ULYDWH3XUSRVH7UXVW
7RWDO
)DLU9DOXH
*HQHUDO
b
b
"
"
&
'
"
"
&
"
"
"
&
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
>
d
&
&
>
<
"
<
&
l
/
/2$
/
/2$
1$10)
+
*
+
/
*
5&636
&
*5
&
*5
&
*5
&
*5
/
*5
0
*5
0
*5
0
*5
0
*5
0
*5
0
*5
3DJHRI
&
$
$
0
*5
0
*5
0
*5
&
*5
)
*5
)
*5
&
*5
&
*5
$
*5
$
*5
*
*5
$
*5
$
*5
.
*5
0
*5
&
6
&
6$
$
*5
$
*5
/
*5
+
+63
)
*5
+
8-
/
4)
/
4)
/
/2$
3DJHRI
&
*5
'
*5
/
/
.
6
.
6
&
*5
&
*5
*
*5
*
*5
&
*5
&
*5
.
.
0
6$
6$
*5
.
*5
.
*5
.
*5
0
0
0
0
0
0
0
0
0
3DJHRI
860
.
860
0
*5
0
*5
0
*5
'
/2$
%
%
&+
&+
/
=
0
32
$
&+6
/
/
.
/
/<3:$
3DJHRI
7KH6FKHGXOHRI([SHQGLWXUHVRI)HGHUDO$ZDUGVLVSUHSDUHGRQWKHPRGLILHGDFFUXDOEDVLVRI
DFFRXQWLQJ([SHQGLWXUHVUHSUHVHQWRQO\WKHIHGHUDOO\IXQGHGSRUWLRQVRIWKHSURJUDP'LVWULFWUHFRUGV
VKRXOGEHFRQVXOWHGWRGHWHUPLQHDPRXQWVH[SHQGHGRUPDWFKHGIURPQRQIHGHUDOVRXUFHV
7KHDPRXQWRIIRRGFRPPRGLWLHVUHSRUWHGRQWKHVFKHGXOHLVWKHPDUNHWYDOXHRIFRPPRGLWLHV
GLVWULEXWHGE\WKH6FKRRO'LVWULFWGXULQJWKHFXUUHQW\HDU7KHYDOXHLVGHWHUPLQHGE\WKH86'$
&
7KHGLVWULFWRSHUDWHVDVFKRROZLGHSURJUDPLQEXLOGLQJV8VLQJIHGHUDOIXQGLQJVFKRROZLGH
SURJUDPVDUHGHVLJQHGWRXSJUDGHDQHQWLUHHGXFDWLRQDOSURJUDPZLWKLQDVFKRROIRUDOOVWXGHQWVUDWKHU
WKDQOLPLWVHUYLFHVWRFHUWDLQWDUJHWHGVWXGHQWV7KHIROORZLQJIHGHUDOSURJUDPDPRXQWVZHUHH[SHQGHG
E\WKH'LVWULFWLQLWVVFKRROZLGHSURJUDPV
7LWOH,*UDQWVWR/RFDO(GXFDWLRQDO$JHQFLHV
7LWOH,6WDWH$JHQF\3URJUDPIRU1HJOHFWHGDQG
'HOLQTXHQW&KLOGUHQDQG<RXWK
6FKRRO,PSURYHPHQW*UDQWV
$55$6FKRRO,PSURYHPHQW*UDQWV5HFRYHU\
$FW$UFKLYHG
5DFHWRWKH7RS'LVWULFW*UDQWV
/HDUQDQG6HUYH$PHULFD,QQRYDWLYH&RPPXQLW\
%DVHG6HUYLFH/HDUQLQJ3URJUDPV$UFKLYHG
%
"
"
8QGHUFHUWDLQSURJUDPVWKHGLVWULFWUHFHLYHVDIL[HGDPRXQWIRUWKHDFWLYLW\UHJDUGOHVVRIWKHGLVWULFW
V
H[SHQGLWXUHV([SHQGLWXUHVIRUWKHVHSURJUDPVDUHOLVWHGDVWKHDPRXQWUHFHLYHGIURPWKHJUDQWRU
'
&
6HDWWOH6FKRRO'LVWULFW
V)HGHUDO5HVWULFWHGUDWHVDUHDVIROORZV
)<
)<
)<
7KLVVFKHGXOHSUHVHQWVWKHFRUUHFWLYHDFWLRQSODQQHGE\WKHDXGLWHHIRUILQGLQJVUHSRUWHGLQWKLV
UHSRUW LQ DFFRUGDQFH ZLWK 20% &LUFXODU $ 7KH LQIRUPDWLRQ LQ WKLV VFKHGXOH LV WKH
UHSUHVHQWDWLRQRIWKH6HDWWOH6FKRRO'LVWULFW1R
7KH 'LVWULFW GLG QRW KDYH DGHTXDWH LQWHUQDO FRQWUROV WR HQVXUH
FRPSOLDQFHZLWKIHGHUDOWLPHDQGHIIRUWUHTXLUHPHQWV
"
"
.DWKLH7HFKQRZ$FFRXQWLQJ0DQDJHU
UG$YHQXH6
6HDWWOH:$
2FWREHU
"
"
.DWKLH7HFKQRZ$FFRXQWLQJ0DQDJHU
UG$YHQXH6
6HDWWOH:$
$XJXVW
7KH6WDWH$XGLWRU
V2IILFHLVHVWDEOLVKHGLQWKHVWDWH
V&RQVWLWXWLRQDQGLVSDUWRIWKHH[HFXWLYH
EUDQFK RI VWDWH JRYHUQPHQW 7KH 6WDWH $XGLWRU LV HOHFWHG E\ WKH FLWL]HQV RI :DVKLQJWRQ DQG
VHUYHVIRXU\HDUWHUPV
:HZRUNZLWKRXUDXGLWFOLHQWVDQGFLWL]HQVWRDFKLHYHRXUYLVLRQRIJRYHUQPHQWWKDWZRUNVIRU
FLWL]HQV E\ KHOSLQJ JRYHUQPHQWV ZRUN EHWWHU FRVW OHVV GHOLYHU KLJKHU YDOXH DQG HDUQ JUHDWHU
SXEOLFWUXVW
,Q IXOILOOLQJ RXU PLVVLRQ WR KROG VWDWH DQG ORFDO JRYHUQPHQWV DFFRXQWDEOH IRU WKH XVH RI SXEOLF
UHVRXUFHV ZH DOVR KROG RXUVHOYHV DFFRXQWDEOH E\ FRQWLQXDOO\ LPSURYLQJ RXU DXGLW TXDOLW\ DQG
RSHUDWLRQDOHIILFLHQF\DQGGHYHORSLQJKLJKO\HQJDJHGDQGFRPPLWWHGHPSOR\HHV
$VDQHOHFWHGDJHQF\WKH6WDWH$XGLWRU
V2IILFHKDVWKHLQGHSHQGHQFHQHFHVVDU\WRREMHFWLYHO\
SHUIRUPDXGLWVDQGLQYHVWLJDWLRQV2XUDXGLWVDUHGHVLJQHGWRFRPSO\ZLWKSURIHVVLRQDOVWDQGDUGV
DVZHOODVWRVDWLVI\WKHUHTXLUHPHQWVRIIHGHUDOVWDWHDQGORFDOODZV
2XUDXGLWVORRNDWILQDQFLDOLQIRUPDWLRQDQGFRPSOLDQFHZLWKVWDWHIHGHUDODQGORFDOODZVRQWKH
SDUWRIDOOORFDOJRYHUQPHQWVLQFOXGLQJVFKRROVDQGDOOVWDWHDJHQFLHVLQFOXGLQJLQVWLWXWLRQVRI
KLJKHU HGXFDWLRQ ,Q DGGLWLRQ ZH FRQGXFW SHUIRUPDQFH DXGLWV RI VWDWH DJHQFLHV DQG ORFDO
JRYHUQPHQWVDVZHOODVIUDXGVWDWHZKLVWOHEORZHUDQGFLWL]HQKRWOLQHLQYHVWLJDWLRQV
7KHUHVXOWVRIRXUZRUNDUHZLGHO\GLVWULEXWHGWKURXJKDYDULHW\RIUHSRUWVZKLFKDUHDYDLODEOH
RQRXUZHEVLWHDQGWKURXJKRXUIUHHHOHFWURQLFVXEVFULSWLRQVHUYLFH
:H WDNH RXU UROH DV SDUWQHUV LQ DFFRXQWDELOLW\ VHULRXVO\ DQG SURYLGH WUDLQLQJ DQG WHFKQLFDO
DVVLVWDQFHWRJRYHUQPHQWVDQGKDYHDQH[WHQVLYHTXDOLW\DVVXUDQFHSURJUDP
7KRPDV6KDSOH\
7KRPDV6KDSOH\#VDRZDJRY
ZZZVDRZDJRY