PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY

INDEPENDENT AUDITOR'S REPORT

Financial Statements at December 31st, 2014 and 2013

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PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY

INDEPENDENT AUDITOR'S REPORT

Financial Statements at December 31st, 2014 and 2013

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CONTENTS

Independent Auditor's Report

Financial Position Statement

Statement of Activities 4

Patrimonial Changes Condition 5

Notes to the Financial Statements 6

Relation of Fees to be Collected to State Members Attachment 1

Comparative Statement of Receipts and Expenses Attachment 2

Comparative Statement of Other Earnings and Expenses Attachment 3

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DESPACHO MUNIR HAYEK, S.C. Contadores Públicos y Consultores de Negocios

INDEPENDENT AUDIT REPORT

Mr. Rigoberto Magaña Chavarria President of the Pan American Institute of Geography and History

Present

We have revised the attached financial statements of the Pan American Institute of Geography and History that include the

statement of financial position at December 31, 2014 and 2013, the statement of activities and the statement of changes in equity

corresponding to the accounting periods terminated on those dates as well as a summary of the significant accounting policies and

other explanatory information.

Responsibility of the administration concerning the financial statements

The administration is responsible for the reasonable elaboration and submission of the attached financial statements in

accordance with the Financial Information Standards issued by the Mexican Council of Financial Information Standards, and with

the internal control that the administration deemed necessary to elaborate the financial statements free of material incorrectness

due to fraud or error.

Auditor's responsibility

Our responsibility consists of giving an opinion about the attached financial statements based in our audit process. Our verification

was carried out according to the International Audit Standards. Such standards demand that we comply with the ethical

requirements and that the audit is planned and carried out in such a way that it enables to be reasonably sure that the financial

statements are free of material incorrectness.

An audit process implies applying procedures to obtain audit evidence concerning the amounts and the information disclosed in

• the financial statements. The selected procedures depend on the auditor's judgment, including the evaluation of the risks of

material incorrectness in the financial statements due to fraud or error. Upon appraising the risks, the auditor takes into account

the relevant internal control for the reasonable elaboration and submission, by the Pan American Institute of Geography and

History, of the financial statements, in order to design the adequate audit procedures according to the circumstances, and not with

the purpose of giving an opinion about how efficient the internal control of the Institute is.

An audit process also includes evaluating the adequacy of the applied accounting policies and of the reasonableness of the

accounting estimates carried out by the administration, as well as evaluating the financial statements as a whole.

We consider that the evidence of the audit process that we have obtained in our revision provides enough and adequate basis for

giving an opinion.

Av. Insurgentes 686-503 Col. del Valle Norte Del. Benito Juárez C.P. 03100, México, D. F. Tel/Fax. 01 (55) 5511-8891 5207-2242 mexico@despachomunirhayek.com.mx www.despachomunirhayek.com.mx

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www cpaconnect com

DMH is a member of CPAmerica International website: www.cpamerica.org

DESPACHO MUNIR HAYEK, S.C. Contadores Públicos y Consultores de Negocios

Opinion

It is our opinion that the attached financial statements reasonably present in all the material aspects the financial condition of the Pan American Institute of Geography and History at December 31, 2014 and 2013, as well as the results of its activities and the changes in its financial position for the periods terminated on such dates, in accordance with the Mexican Financial Information Standards.

Despacho Munir Hayek, S.C.

.C. ye rofessional Licens 177 3

Mexico City, May 29, 2015

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CONVECT www.cpaconnect.com

DMH is a member of CPAmerica International website: www.cpamerica.org

PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY (Note 1) FINANCIAL POSITION STATEMENT

At December 31sT, 2014 and 2013 US dollars (Note 2)

2014 2013 2014 2013 ASSETS LIABILITIES

SHORT TERM SHORT TERM Cash and Temporary Sundry Creditors (Note 8) $ 89,120 $ 62,310

I/

Investments (Notes 3 and 2b) $ 1'088,899 $ 991,623 Sundry Debtors (Note 5) 24,039 14,725 Payments on account of

future fees (Note 9) 9,825 6,448 Inventories (Notes 4 and 2d) Publication funds for the

202 202 History Commission 22,087 22,354 Reserve for Indemnification (Note 2f) 16,076 7 076

TOTAL SHORT TERM ASSETS 1'113,140 1'006,550 TOTAL SHORT TERM

LIABILITIES 137,108 98,188

ASSETS

LONG TERM ESTATE

Prepaid Expenses (Note 7) 238 238 Patrimonial Funds (Notes 2f and 10) 976.270 908 .600

LONG TERM ASSETS 238 238 TOTAL ESTATE

976.270 908,600

TOTAL LIABILITIES TOTAL ASSETS $ 1'113,378 $ 1'006,788 AND ESTATE $ 1'113,378 1'006,788

The attached notes are part of this financial position statement

Under oath to tell the truth we declare that these financial statements and their notes are reasonably correct and responsibility of the issuing entity

Rodrigo rriga • rgas Francisco Manuel García Mora Secret. General Chief of Accounting

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PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY (Note1) STATE OF ACTIVITIES

From January 1", to December 31st, 2014 and 2013 US dollars (Note 2)

Receipts due to fees (Attachment 2)

2014 2013

of the fiscal year (Note 11) $ 465,176 $ 457,437 of previous fiscal year 56 641 5,398

521,817 462,835

Administrative Income (Attachment 3) Banking Interests 9,952 19,299 Cost Recovery from Publications 21,016 22,568 Services to third parties 6,261 8,491 Miscellaneous 6,062 10,559

43,291 60,917

TOTAL RECEIPTS OF THE FISCAL YEAR 565,108 523,752

Expenses of the Regular Fund Personnel 243,859 266,077 Technical Support, information and broadcasting and statutory meetings 147,963 166,251 Operating expenses 26,063 26,406

417,885 458,734

Expenses of the Administrative Fund (Attachment 3) 22,314 35,892 Disbursements of the accounting period Pending Rendering (Attachment 2) 31,135 25,443

53,449 61,335

TOTAL EXPENSES OF THE FISCAL YEAR 471,334 _520,069

Surplus of the fiscal year 93,774 3,683

Less Funds to Reserve from the Yearly Budget (32,573)

NET SURPLUS OF THE ACCOUNTING PERIOD $ 61,201 $ 3,683

The attached notes are part of this financial statement

Under oath to tell the truth, we declare that these financial statements and their notes are reasonably correct and responsibility of the issuing entity

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Rodrigo ¶arrig rgas Secret ry General

Francisco Mánuel Garcia Mora Chief of Accounting

PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY (NOTE 1) PATRIMONIAL CHANGES CONDITION

Accounting Periods ending on December 31, 2014 and 2013 US dollars (Note 2)

Reserve Operational Special Reserve Total Fund Fund Fund Budgeted

Fund

Estate at December 31", 2013 $ 26,836 $ 196,848 $671,933 $ 12,983 $ 908,600

Plus: Reserve Fund Increased 2,937 2,937 Fund Recovery 175 175

Less: Loss in the exchange rate (1,195) (1,195) Projects financed with the funds (68,178) (2,983) (71,161)

Transference to Non Involved Funds 43,140 43,140

Estate at December 31st, 2014 28.578 196,848 647,070 10,000 882,496

Distribution of the 2014 Accounting Period Profit 61.201 32,573 93,774

Total Patrimonial Funds at December 31st, 2014 $_28,578 $196,848 $708,271 $ 42,573 $976,270

The attached notes are part of this financial statement

Under oath to tell the truth, we declare that these financial statements and their notes are reasonably correct and responsibility of the issuing entity

Rodrigo arriga gas Francisc anuel García Mora Secretlry Gener I Chief of Accounting

PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY (PAIGH) NOTES TO THE FINANCIAL STATEMENTS OF

DECEMBER 31, 2014 AND 2013 (AMERICAN DOLLARS)

NOTE 1. HISTORY AND PURPOSES

PAIGH was created on February 7, 1928 at the VI American Conference carried out by the Ministers of the American States in Havana, Cuba, and at request of the Mexican government, Mexico City was established as the headquarters of PAIGH.

Under request of the representation of the Mexican government, the seat was established in Mexico City, where the then President of the Mexican Republic, Pascual Ortiz Rubio, by means of a Decree dated May 3, 1930, put the building located at 29 Arzobispado street, Observatorio neighborhood, under the disposal of the American Nations. In 1949 one year after subscribing the letter of the Organization of the American States at the Bogota Conference PAIGH signed an agreement with the Council of the Organization of American States (OAS), by means of which it was turned into the first specialized international body. Such agreement was modified and signed in accordance, in Washington D.C. on May 6, 1974.

Since its foundation more than 80 years ago, the PAIGH has supported and contributed decisively in the development of science that correspond to its scope.

Connoted researchers and scientists, as well as high hierarchy authorities from the Member States have been important protagonists in the evolution of the institution since it was born.

Many years have passed, and notwithstanding this, the standing in force and the strategic importance of the Institute are kept and consolidated based in the recognition of its transcendental mission.

Purposes:

• To encourage, coordinate and publicize cartographical, geophysical, geographical and historical research as well as others that are science-related and of interest to the Americas.

• To promote and carry out research and training concerning these disciplines.

• To promote cooperation among organizations interested in these fields of activity in the Americas, and with related international organizations.

Legal Framework:

The sixth International American Conference resolved:

To create the Pan American Institute of Geography and History, that will serve as coordination, distribution and release of geographical and historical research at the American States.

2013-2017 Organic Statute, Bylaws and agreements

Headquarters Agreement with the Mexican Government

Financial Bylaws

At the 20th General Assembly of the PAIGH, held from November 20-22nd, 2013 in Montevideo, Uruguay, it was resolved to elect the following authorities who will be in office until the 21st General Assembly:

* President * Vice-President Secretary General President of the Cartography Commission President of the Geography Commission President of the History Commission President of the Geophysics Commission

Rigoberto Magaña Chavarria Roberto Aguilar Falconi Rodrigo Barriga Vargas Carlos Lopez Vazquez Jean Parcher Patricia Galeana Herrera Walter Fernandez Rojas

El Salvador Ecuador Chile Uruguay USA Mexico Costa Rica

The election of the president took place at the 81st Authorities' Reunion in June, 2014 in Mexico City and the appointment of Vice President was at the 45th Reunion of the IPGH Board in Santiago de Chile in November, 2014.

NOTE 2. MAIN ACCOUNTING POLICIES

The criteria for the application of the special rules that the Direction of the Institute considered the most appropriate in its circumstances to present fairly the information contained in the attached financial statements are:

a) basis of presentation and disclosure of financial statements:

Monetary unit of the financial statements

The financial statements and their concerning notes at December 31st 2014 and 2013 include balances and transactions expressed in dollars. The accounting as well as the records and the financial statements issued, were carried out using the United States Dollar, (at the exchange rate of December 31, 2014: $14.7348 and 2013 $13.0652 Mexican Pesos per Dollar).

Recognizing the effects of inflation on financial information:

As of January 1st, 2008, the NIF B-10 "Effects of lnflation" entered into force. This establishes the rules for recognizing the effects of inflation on financial information based on the inflationary environment of the country. According to the guidelines of the NIF B-10, as long as inflation does noOt exceed 26% during the last three fiscal years, the effects of inflation on financial information shall not be applicable. Here we are presenting the percentages of accumulated inflation in the three previous fiscal years and the indexes used in order to recognize the inflation up to that date, published by the National Institute of Geography and Statistics.

At December 31st Adjustment Rate Inflation Of the year Accumulated (3 years)

2013 1.0397 3.97 11.80 2012 1.0356 3.57 12.26 2011 1.0381 3.82 12.26

Once the carrying value of the assets that correspond (base figure) has been defined, it is suggested to restate each one of the items that compose the assets pursuant to NIF B-10 "Effects of Inflation", provided that all the conditions of an inflationary economic environment are met.

b) Cash and temporary investments

This item is composed of legal tender in cash and deposits in checking accounts available for the operation, which are valued at

their nominal value. Investments are valued at realizable value.

c) Accounts receivable and allowance for doubtful accounts

The accounts receivable different from the ones that come from frees of member states are stated at realizable value. It is a policy of the Institute not to create an allowance for doubtful accounts due to the fact that there have never been punishments for this. The Institute does not record in the financial position statement the accounts receivable due to the contributions of the state members. These are recorded at the moment they are collected as income due to fees of the fiscal year or of previous fiscal years in the activity status. The contributions receivable of the corresponding fiscal year and from previous fiscal years are explained on

attachment 1.

d) Inventory

The inventory is represented by the raw material (paper) for the publications that are to be sold.

The inventory of the Bibliographic Fund Jose Toribio Medina, as well as of all the publications, due to a policy of the Institute, are

not recorded in the accounts.

Likewise, on note 4a) the composition of the aforementioned inventories is referred to.

The PAIGH publishes the following: Cartographic Journal, Geographic Journal, Geophysical Journal, American Historical Magazine, American Anthropology Newsletter, American Archaeology Newsletter, which are printed and distributed from Mexico.

The editorial production of the Institute besides includes diverse occasional publications (atlas, guides, handbooks, letters,

glossaries, etc.) that contribute to widen the intellectual heritage of the nations of the area. These occasional publications are currently more than 500 and the corresponding catalogue can be requested at the General Secretariat on a free basis.

e) Property and equipment

Currently, the Institute has a physical inventory of assets; however up to date, there is no accounting record (Note 6)

f) Estate

The estate is composed by the following Funds: a) Regular Fund b) Special Fund c) Reserve Fund d) Reserved Budget Fund e) Operational Fund

The detall of each one is explained on note 10 to the financial statements

Additionally, the Estate of the Institute is composed by the following items:

Bibliographical Fund Jose Toribio Medina of the PAIGH

Based on the writing issued by the Foreign Affairs Secretariat of the Mexican United States on March 20, 1997, on number 1, it can be read: "The Mexican Government, by means of the E.N.A.H. (Escuela Nacional de Antropologia e Historia) National School of Anthropology and History, shall carry out the administration of the Bibliographical Fund Jose Toribio Medina of the PAIGH",

which consists of:

a) Collections and library books

b) Collections and series magazines and Newspaper Library.

According to the gratuitous bailment contract entered into on August 30, 2002, by the authorities of the PAIGH, of the National Institute of Anthropology and History (INAH), and the National School of Anthropology and History (ENAH), the ENAH received the Bibliographical Fund, so that it made an inventory, in order to completely safeguard it.

By means of this gratuitous bailment contract, it was gratuitously and indefinitely granted to use and administrate the bibliographic

fund Jose Toribio Medina of the PAIGH.

Later, there have been more deliveries, and on December 31, 2014, there is a total fund of 231,397 volumes, which are made up

of 193,055 periodical publications, 34,089 books, 4,594 special materials and 5 compact discs.

The gratuitous bailment delivery for this fund to be used and administrated is with the only purpose that the ENAH library is available to the public in general. Therefore, PAIGH is in charge of checking this precept is complied with and the bibliographic fund is maintained in good shape.

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Within the working audit program of the accounting period, there was a visit to the facility of the National School of Anthropology and History, in order to directly verify the control and use that is been given to the bibliographic common property.

Towards this concern, it was verified that such bibliographic common property is suitably located, in special facilities, designed for

its control and use; that the different volumes are available for the people who require them.

It is also mentioned that at the ENAH facilities there is no maintenance to keep the books and the bibliographic heritage in good shape, taking steps, that is, to finish with the project that consists of placing motion-sensor lamps, providing more safety to the place and to the people working there by installing an emergency exit in the event of earthquake or fire, it is worth mentioning that

there are fire alarms in case of emergency inside the facilities.

All these measures are necessary and important for safeguarding the Bibliographic Fund of the PAIGH.

Upon closing the 2014 accounting period, the estimated value of this common property was still unknown. Therefore a determined value has not been included in the accounting records as parts of the estate of the Institute.

Reserve Fund

As it can be seen on Article 42 of the Financial Bylaws of the PAIGH, "The Reserve Fund is constituted to confront any severance

payments that may have to be made to the Staff of the General Secretariat who no longer work at the Institute. The total of this fund shall be determined by the approximate sum of these payments".

On December 31, 2014, the total amount of the reserve fund for this concept was of $28,578 US dollars. ($26,836 US dollars in

2013).

Severance

According to the Federal Labor Law the PAIGH is responsible of for payment of compensation to workers unfairly dismissed.

Seniority bonus

According to the Federal Labor Law, personnel of the PAIGH who have been working 15 years or more, upon their retirement, are entitled to a bonus that equals 12 working days for each year of service. (Such salary shall not exceed two times the general

minimum salary of the area standing in force on the day he/she retires).

The workers who are unfairly dismissed, or who die, are entitled to the seniority bonus, determined as of the number of years they

have worked for the PAIGH, even when they had worked less than the fifteen years stipulated by law.

The PAIGH has stipulated the policy that consists of considering the severance pay and the seniority bonus as normal expenditure

of the accounting period when these events happen.

During the 2011 period the creation of the fund was decided for $4,900 dollars. At December 31, 2012, the balance of the account adds up to $16,800 US dollars, in 2013 $7,076 US dollars, and in 2014 the final balance is $16,076 dollars.

g) Income from fees

The PAIGH is a nonprofit agency which is held by the fees paid by the Member States. The fee scale is established every four years by the General Assembly of the PAIGH. These are recorded as the member countries contribute with their fees which are approved by the Member States at the General Assembly of the PAIGH.

Having as members the following countries:

• Argentina •Honduras • Belize •Mexico • Bolivia • Nicaragua • Brazil • Panama • Chile •Paraguay • Colombia •Peru • Costa Rica •Dominican Republic • Ecuador •Uruguay •El Salvador •Venezuela • United States of America • Haiti • Guatemala

NOTE 3. CASH AND TEMPORARY INVESTMENTS

The cash shown in the financial statements at the end of the fiscal year was obtained using the exchange rates determined by the PAIGH on a temporary basis considered when the transactions were registered. These exchange rates are given by the banking system in charge of International Organizations and Embassies.

Here we are showing the concerning information:

Account Amount

US dollars

Amount

US dollars Banks Number Type Currency 2013

2014

Oas Staff Federal Credit Union 7171 Special Account US Dollars $ 215,009 $ 245,472 lnbursa, S.A. 15001970027 Entrepreneurial US Dollars 11,497 19,637

Account Inbursa, S.A. 15001970019 Entrepreneurial Pesos 25,763 21,176

Account HSBC México, SA 00199153132 Master Account Pesos 5,513 1,377 HSBC México, SA 00199305252 Special Account US Dollars 14,534 29,393 HSBC Mexico, SA 6250872670 Daily Investment Account Pesos 77,145 32,854

Sub Total Banks $349,461 $ 349,909

a) Fixed term

Oas Staff Federal Credit Union 7171 Fixed Term US Dollars $ 659,430 $ 558,053 HSBC México, SA 7091 Fixed Term Pesos 78,431 78,432

Sub Total Fixed Term $ 737,861 $ 636,485 Sum Banks 1'087,322 $ 986,394

Cash un 5,229

Total Cash & temporary investments $ 1'088,899

$ 991,623

Fixed term deposits

They are represented by the following instruments:

At the Oas Staff Federal Credit Union there are deposit certificates of the following amounts

Investment Date Maturity Date Term Amount

January 30, 2014 February 2, 2015 12 months $ 102,442

October 29, 2014 April 29, 2015 6 months 100,152

April 29,2014 April 29,2015 12 months 100,376

June 21,2014 June 21, 2015 12 months 151,700

July 26, 2014 July 26, 2015 12 months 104,331

April 29, 2014 October 29,2015 18 months 100,429

Total certificates $ 659.430

At HSBC Mexico, S. A., there are fixed term investments

Investment Date Maturity Date Term Amount July 2, 2014 July 2, 2015 12 months $ 78,432

NOTE 4. INVENTORY

a) Paper storage

The total amount shown in the financial statement is due to purchase of paper for printing works of the PAIGH. These amounts shall be applied to the corresponding expense account whenever they are used. The inventory amount is priced at the purchase cost of $202.

b) Publications Storage

This warehouse has publications of different years which were edited by the PAIGH, used for promotion, circulation and sales.

The total of the inventory at December 31, 2014 is not registered in the accounting. At the end of the accounting period it includes

24,707 units (29,803 in 2013) with a total of $32,410 US dollars. The pricing procedure used consists of assigning one dollar for

each book edited until 2013, $23,849 US dollars; for those books printed as of this fiscal year the cost was assigned according to

the actual emission costs $8,561 US dollars.

The total amount of inventory is not recorded in the accounting records of the Institute and the information listed is only for

informational purposes and is not part of the audited financial statements. This decision is knowledge of the Directorate of the

Institute.

NOTE 5. SUNDRY DEBTORS

The balance at December 31, 2014 is made up 100% of the loans to PAIGH personnel, withdrawn from their retirement fund.

Account Concept Amount 2014 Percentage Amount 2013 Percentage

03-01-00 Sundry Debtors $ 20,964 87% $8,272 56%

03-03-00 Loans/the fund 3,075 13% 6,453 44% $ 24,039 100% $14.725 100%

NOTE 6. PROPERTY AND EQUIPMENT

SIMEGA S.A. de C.V. conducted a valued inventory of fixed assets on February 5111, 2014 in order to know the current value of the

goods of PAIGH, such as office furniture and equipment, and transportation equipment, with a total amount of $75,223 US dollars,

of which $39,910 US dollars belong to office equipment and furniture and ($35,313 US dollars) that belong to the transportation

equipment, at an exchange rate from the Bank of Mexico of $14.7348 at December 3101, 2014.

The net amount of the fixed assets is not recorded in the accounting of the Institute and this is only for information purposes.

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NOTE 7. PREPAID EXPENSES

The balance of this account is made up by the security deposit given to Estacion de Servicio Observatorio S.A. on January 201h,

2006 for $238 for gas for the transportation equipment that belongs to the institute, where the contract has not been modified.

NOTE 8. SUNDRY CREDITORS

The balance of the account is made up as follows:

Sundry Creditors Amounts 2014 Amounts 2013

IMSS fees $ 1,675 $ 1,703 CAF Workshop El Salvador (1) 8,493 UNEP Agreement with PAIGH (1) 2,978 2,978 Interests Retirement fund 99 69 ENVIRONMENT AGENCY (1) 51,904 IGN Spain Expos America (1) 2,904 2,904 GSDI Bulletins (1) 23,579 26,628

1,776 CAF 3RD Agreement (1) Surplus publication sales 3 Fees Cooperating Partner

Funds for expenses (2) 600

Funds for projects (2) 3,247 10,621

Funds for publications (2) 958 8.311 $ 89.120 $ 62.310

Total Sundry Debtors

(1) Refers to the resources received from institutions to be spent on projects which have to be carried out in the current

fiscal year or later.

(2) It refers to resources from the 2013 and 2014 Regular Fund which were not carried out during the fiscal year and are not

susceptible to resource allocation for 2014. They must be carried out in 2015.

NOTE 9. PAYMENTS ON ACCOUNT OF FUTURE FEES

This includes the payments on account of future fees, as follows:

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IP

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Member States Amount 2014 Amount 2013

Ecuador $ 12 $ 4

Dominican Republic 3,883

Costa Rica 31 484

Colombia 24

Paraguay 5,875 5,190

Argentina 770

Sum ~ ~

NOTE 10. PATRIMONIAL FUNDS

This issue is made up as it can be seen in the following articles of the Financial Bylaws of the Institution as follows:

Article 38: The resources of the Institute shall consist of the quota payments of the Member States, income from the sale of ublications or services, donations, legacies, bank interests, the surplus from previous fiscal years and any other source of income

received through the General Secretariat.

Article 39: Such resources shall be administered by means of funds that are made up as follows:

Account 2014 2013

Reserve Fund (1) $ 28,578 $ 26,836

Operational Fund (2) 196,848 196,848

Special Fund (3) 708,271 671,933

Reserved Budget Fund (4) 42,573 12,983

Sum $976,270 $ 908,600

(1) Article 42. The Reserve Fund is constituted to confront any severance payments that may have to be made to the staff of the General Secretariat who no longer work at the Institute. The total of this fund shall be determined by the approximate sum of these payments.

(2) Article 44. The Operational Fund has been constituted to cover the budgetary contingencies of the Institute. The amount of this fund can not be in excess of 35% of the Regular Fund for that year.

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(3) Article 41. The Special Fund is made up of any surplus income received from quota payments, which exceeds the

Regular Fund and shall be utilized for the special projects approved by the Directing Council or General Assembly. The

Secretary General is authorized to deduct up to 5% from each project within the special projects fund for administrative expenses.

(4) Article 43. The Budgeted Reserve Fund is made up of those funds that were un-expended during the fiscal year and which have been reserved for the next period, in accordance with Article 14 of these rules of procedure.

(5) Article 40. The Regular Fund is constituted by the quota payments from the Member States, with a maximum limit

similar to the budget of the year to which it refers, approved by the previous General Assembly or Directing Council. This fund shall be utilized to cover the expenses that have been considered in the program-budget, that is approved by

the Directing Council or General Assembly .

NOTE 11. INCOME RECEIVED

The balance of the account is made up as follows:

Concept 2014 2013

Argentina $ 37,194 $37,206 Belize 3,888 3,888 Chile 4,134 4,134 Colombia 7,176 7,176 Costa Rica 3,900 3,900 Ecuador 3,900 3,900 El Salvador 3,885 3,887 USA 323,900 323,900 Guatemala 3,900 3,864 Haiti 3,868 Honduras 3,803 3,845 Mexico 46,176 46,176 Panama 3,900 3,900 Paraguay 3,900 3,900 Peru 3,888 3,900 Dominican Republic 3,900 3,861 Uruguay 3,864 . . Sum $ 465,176 457,437

As it is mentioned in the Resolution by means of which the PAIGH is created, Sixth International American Conference in Havana, from January 16th to February 20th, 1928 on articles 27 and 28 of the Bylaws project it is mentioned, concerning the income:

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(Attachment 1) PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY

RELATON OF FEES TO BE COLLECTED FROM STATE MEMBERS At December 31st, 2014

(US Dollars)

Member Countries Fees to be collected

At Dec. 31, 2014

Fees

of 2014

Of previous

Fiscal Years

Argentina $ 12 $ 12 $

Belize 12 12 -

Bolivia 19,513 3,900 15,613

Brazil 259,596 64,896 194,700

Colombia (1) Paid -

Costa Rica (2) Paid - -

Chile Paid - -

Ecuador (3) Paid - -

El Salvador 15 15 -

United States Paid -

Guatemala Paid - -

Haiti 32 32 -

Honduras 97 97 -

Mexico Paid - -

Nicaragua 52,765 3,900 48,865

Panama Paid - -

Paraguay (4) Paid - -

Peru 12 12 -

Dominican Republic (5) Paid - -

Uruguay 36 36 -

Venezuela 24,336 24,336 -

Total $ 356,427 $ 97,248 $ 259,178

(1) Colombia US $24.00 on account of future fees (2) Costa Rica US $31.08 on account of future fees (3) Ecuador US $12.00 on account of future fees (4) Paraguay US $5,875.10 on account of future fees (5) Dominican Republic US $3,882.79 on account of future fees

Rodrigo arrig Vargas Secretary General

Francisco Manuel Garcia Mora Chief of Accounting

(Attachment 2) PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY (Note 1)

COMPARATIVE STATEMENT OF RECEIPTS AND EXPENSES ESTIMATED VS ACTUAL ONES

At December 311t, 2014 (US dollars)

Regular Fund Estimated At December 31st, 2014

Differences Actual Accounts

Receipts regular fund + ( - )

Fees of the fiscal year $ 562,424 $ 465,176 $ 97,248 Due Fees 315,819 56,641 259,178

Total receipts of the regular funds $ 878,243 $ 521,817 $ 356,426

Expenses of the regular fund Salaries 196,432 157,969 38,463 Social Security 38,298 28,994 9,304 Infonavit 4,671 3,589 1,082 Bonuses 17,512 15,498 2,014 Subsidies 12,946 12, 903 43 Service Acknowledgement 6,744 6,435 309 Indemnification to employees 9,000 9,000 Bonuses dueto merits 8,000 8,000 Visits to the place of origin 1,866 1,750 116 Representation 2,562 2,094 468 Training 100 100 Traveling Expenses 55,640 50,984 4,656 Traveling Expenses 2,600 1,820 780 Traveling Tickets 75,160 42,287 32,873 Scholarships 7,000 3,460 3,540 Water consumption rights 1,350 1,317 33 Financial services 2,650 2,630 20 Postal Services 400 382 18 Phone Services 3,350 3,306 44 Web page and email 6,150 6,139 11 Courier 1,250 1,233 17 Fees 14,250 9,953 4,297 Electricity 3,450 3,444 6 Insurance 2,019 1,763 256 Gas and Lubricants 3,100 3,007 93 Spare parís and maintenance of transportation equipment 1,500 765 735 Spare parts and maintenance of computing equipment 1,000 - 1,000 Office material 4,350 3,379 971 Sanitary and clearing material 1,200 1,150 50 Kitchen implements 650 637 13 Fees 200 200 Publications 37,224 20,211 17,013 Documents of statutory gatherings 5,314 5,314 Editorial committee 5,580 2,100 3,480 Real estate leasing 500 254 246 Miscellaneous Expenses 9,640 5,855 3,785 Contingencies 3,386 263 3,123 To be assigned 15,380 :;;

$ 417,885 15,380

$ 562,424 $ 144,539

Disbursements rendering accounting 31,135 31,135

Total US 562,424 S 449,020 113,404

Rodrigo arri Vargas Francisco Maáúel Garcia Mora Secre ry General

Chief of Accounting

(attachment 3)

PAN AMERICAN INSTITUTE OF GEOGRAPHY AND HISTORY (Note 1) COMPARATIVE STATEMNET OF OTHER EARNINGS AND EXPENSES

ESTIMATED VS ACTUAL FIGURES At December 315t, 2014

(US Dollars)

Administrative Fund

Accounts

Administrative Fund Eamings

Estimated At December 31, 2014

Real Differences + ( -)

Earned Interests $ 5,000 $ 9,952 $ (4,952) Publications 15,000 21,016 (6,016) Miscellaneous 10,000 12,323 (2,323)

Total Administrative Fund Eamings $ 30,000 $ 43,291 $ (13,291)

Administrative Fund Expenses Miscellaneous Expenses 7,000 6,055 945 Mail Service 100 4 96 Equipment Purchasing 1,000 500 500 Sundry 21,900 15,755 6 145

Total Administrative Fund Expenses $ 30,000 $ 22,314 $ 7,686

Administrative Fund Surplus $ 20,977

Rodrigo B rriga V gas Secreta General

Francisco Manuel García Mora Chief of Accounting