Dear Reader: the Bill, Hillary & Chelsea Clinton Foundation
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Dear Reader: The Bill, Hillary & Chelsea Clinton Foundation (the “Foundation”) builds partnerships of purpose to help people across the globe live their best life stories. We work with businesses, NGOs, governments, and individuals around the world to work faster, better, and leaner; to find solutions that last; and to transform lives and communities. In 2013, the Foundation expanded our work, reinforced our financial footing, and became better positioned to maximize our impact for years to come. Our tax statements reflect these improvements. To further our long-term impact, the Foundation began raising funds in 2013 for an endowment that will help us responsibly support established programs and expand our work. Financial commitments related to this endowment are reflected as increased revenue in these 990 documents. In addition, in 2013 the Foundation reconsolidated the Clinton Global Initiative into its operations. As such, the 990 tax document shows a corresponding increase in both revenue and expenses. The 990 document for the Clinton Health Access Initiative, a separate but affiliated initiative of the Foundation, is also included. We are proud of the impact that the Clinton Foundation has on millions of lives across the globe. In 2013: The Clinton Climate Initiative expanded its home energy efficiency upgrade program, from one program in Arkansas to six programs across the nation; The Clinton Development Initiative expanded programs in Malawi, Tanzania, and Rwanda that help more than 25,000 farmers generate greater harvests and more stable income; The Clinton Giustra Enterprise Partnership opened new supply and training center enterprises in Colombia and a new distribution venture in Peru; The Clinton Global Initiative brought together CGI members, who made more than 300 independent commitments in 2013 that, when fully funded and implemented, will impact the lives of more than 22 million people; The Clinton Health Matters Initiative expanded community health and wellness programs in four communities in the United States, and helped facilitate $100 million in strategic partnerships that touch the lives of more than 25 million across the country; The Clinton Presidential Center hosted symposia and exhibits, on topics such as the Northern Ireland peace process, and marked over three million visitors to the Little Rock Center since 2004. Volunteers participated in five Day of Action events across the globe, including in St. Louis, New York City, Rio de Janeiro, and Chicago. The Alliance for a Healthier Generation, an affiliated initiative supported by the Foundation, added more than 5,000 schools to the Healthy Schools Program that serves more than 12.2 million children with healthier food; The Clinton Health Access Initiative, an affiliated initiative supported by the Foundation, expanded access to more affordable HIV/AIDS medicine to cover 6.8 million people in over 70 countries, while reducing prices for medicine and vaccines; In addition, Secretary Clinton launched two initiatives in 2013, expanding the Foundation’s work in early childhood and women’s and girls’ participation. Too Small to Fail is focused on providing parents with the tools and information they need to close the word gap and give their kids the best start in school and in life. No Ceilings: The Full Participation Project, led by Secretary Clinton and Chelsea Clinton, aims to advance and inspire the full participation of women and girls around the world. We are incredibly proud of our work helping people live their best life stories. With an even stronger financial situation in 2013, the Clinton Foundation is positioned to broaden its impact across the globe. Sincerely, Andrew Kessel Chief Financial Officer, Clinton Foundation Bill, Hillary & Chelsea Clinton Foundation Consolidated Financial Statements December 31, 2013 and 2012 Bill, Hillary & Chelsea Clinton Foundation Index December 31, 2013 and 2012 Page(s) Independent Auditor’s Report.......................................................................................................... 1–2 Consolidated Financial Statements Statements of Financial Position.............................................................................................................3 Statements of Activities ..........................................................................................................................4 Statements of Cash Flows ......................................................................................................................5 Notes to Financial Statements .......................................................................................................... 6–21 Consolidating Supplementary Information Statement of Financial Position.............................................................................................................23 Statements of Activities ........................................................................................................................24 Independent Auditor’s Report To the Board of Directors of the Bill, Hillary & Chelsea Clinton Foundation: We have audited the accompanying consolidated financial statements of the Bill, Hillary & Chelsea Clinton Foundation (the “Foundation”), which comprise the consolidated statements of financial position as of December 31, 2013 and the related consolidated statements of activities, and of cash flows for the year then ended. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility Our responsibility is to express an opinion on the consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the Foundation’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Foundation’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Bill, Hillary & Chelsea Clinton Foundation at December 31, 2013, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles generally accepted in the United States of America. PricewaterhouseCoopers LLP, 900 South Shackleford Road, Suite 600, Little Rock, Arkansas 72211 T: 214-999-1400, F:214-754-7991, www.pwc.com Other Matters The consolidated financial statements of the Foundation as of December 31, 2012 and for the year then ended were audited by other auditors whose report, dated September 10, 2013, expressed an unmodified opinion on those statements. Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements taken as a whole. The consolidating information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The consolidating information has been subjected to the auditing procedures applied in the audit of the financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the financial statements or to the financial statements themselves and other additional procedures, in accordance with auditing standards generally accepted in the United States of America. In our opinion, the consolidating information is fairly stated, in all material respects, in relation to the consolidated financial statements taken as a whole. The consolidating information is presented for purposes of additional analysis of the consolidated financial statements rather than to present the financial position, results of operations and cash flows of the individual companies and is not a required part of the consolidated financial statements. Accordingly, we do not express an opinion on the financial position,