2022-02-07T09:07:02-06:00 2021-03-31 366055558 GRANT THORNTON LLP 757 THIRD AVENUE 3RD FLOOR NEW YORK NY 100172013 990 2020-04-01 131621786 AMERICAN ASSOCIATION OF ADVERTISING AGENCIES AMER 2128500770 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 JAMES O'DONNELL EVP FINANCE & TREASURER 2128500770 2022-02-07 1 JAMES ODONNELL XXX-XX-XXXX SCOTT THOMPSETT P00741490 2125990100 3 AAL1 IAL1 2020 2022-09-23 18:48:47Z 4A'S MARLA KAPLOWITZ PRESCEO 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 14229067 0 X WWW.AAAA.ORG X 1917 NY THE 4A'S EMPOWERS MEMBERS TO DRIVE COMMERCE, SPARK CONNECTIONS (CONTINUED ON SCHEDULE O). 30 29 62 0 0 0 0 0 12830899 12315352 1118023 991366 364053 198646 14312975 13505364 125800 34575 0 0 9100057 8599579 0 0 0 5702292 4827546 14928149 13461700 -615174 43664 14512633 16913177 9147812 9435216 5364821 7477961 X THE 4A'S WAS ESTABLISHED IN 1917 TO PROMOTE, ADVANCE, AND DEFEND THE INTERESTS OF OUR MEMBER AGENCIES, EMPLOYEES AND THE ADVERTISING AND MARKETING INDUSTRIES OVERALL. TODAY THE ORGANIZATION SERVES MORE THAN 600 MEMBER AGENCIES ACROSS 1,200 OFFICES (CONTINUED ON SCHEDULE O). 0 0 SEE SCHEDULE O SEE SCHEDULE O SEE SCHEDULE O AAAA PROVIDES COUNTLESS OTHER SERVICES, INCLUDING MANAGEMENT STUDIES, TO APPROXIMATELY 350 MEMBER COMPANIES. 0 0 0 1 0 0 0 1 0 1 0 0 0 1 1 0 1 0 0 0 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 1 25 0 1 62 1 0 0 0 0 0 0 0 0 X 30 29 0 0 0 0 1 1 1 1 1 0 1 1 1 1 1 1 1 1 1 0 0 X JAMES O'DONNELL 2128500713 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 X MARLA KAPLOWITZ PRESIDENT & CEO 40.00 5.00 X X 578274 0 32889 CHRISTINE FRUECHTE SECRETARY/TREASURER 1.00 0.00 X X 0 0 0 BARRY WACKSMAN CHAIR 1.00 0.00 X X 0 0 0 ABBEY KLAASSEN VICE CHAIR 1.00 0.00 X X 0 0 0 SHARON NAPIER VICE CHAIR 1.00 0.00 X X 0 0 0 GREG STERN PAST CHAIR 1.00 0.00 X X 0 0 0 LOU AVERSANO DIRECTOR-AT-LARGE (THRU 05/20) 1.00 0.00 X 0 0 0 MARIE-CLAIRE BARKER DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 SUSAN CREDLE DIRECTOR-AT-LARGE (THRU 12/20) 1.00 0.00 X 0 0 0 LAURA MANESS DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 ERIN MATTS DIRECTOR-AT-LARGE (THRU 12/20) 1.00 0.00 X 0 0 0 KATHY RING DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 ROB SCHWARTZ DIRECTOR-AT-LARGE 1.00 0.00 X 0 0 0 STEVE WILLIAMS DIRECTOR-AT-LARGE | MLC CHAIR 1.00 0.00 X 0 0 0 MARK BACHMANN CENTRAL REGION DIRECTOR 1.00 0.00 X 0 0 0 KAREN SEAMEN CENTRAL REGION DIRECTOR 1.00 0.00 X 0 0 0 DAISY EXPOSITO EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 ANDREW GRAFF EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 BRAD BENNETT SOUTHERN REGION DIRECTOR 1.00 0.00 X 0 0 0 BOB MORRISON SOUTHERN REGION DIRECTOR 1.00 0.00 X 0 0 0 RICHARD WARD SOUTHERN REGION DIRECTOR 1.00 0.00 X 0 0 0 DAVID ANGELO WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 JOHN GALLEGOS WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 ERIC JOHNSON WESTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 DEVIKA BULCHANDANI DIRECTOR-AT-LARGE (AS OF 05/20) 1.00 0.00 X 0 0 0 CHRIS FOSTER DIRECTOR-AT-LARGE (AS OF 05/20) 1.00 0.00 X 0 0 0 JASON GAIKOWSKI AS OF 0520 DIRECTOR-AT-LARGE | CX COUNCIL 1.00 0.00 X 0 0 0 JEFF KING CENTRAL REGION DIRECTOR(AS OF 05/20) 1.00 0.00 X 0 0 0 ANGELA STEELE AS OF 0520 EASTERN REGION DIRECTOR 1.00 0.00 X 0 0 0 AMANI DUNCAN DIRECTOR-AT-LARGE (AS OF 01/21) 1.00 0.00 X 0 0 0 VITA HARRIS DIRECTOR-AT-LARGE (AS OF 01/21) 1.00 0.00 X 0 0 0 KATE MACNEVIN DIRECTOR-AT-LARGE (AS OF 01/21) 1.00 0.00 X 0 0 0 MEGAN PAGLIUCA DIRECTOR-AT-LARGE (AS OF 01/21) 1.00 0.00 X 0 0 0 MOLLIE ROSEN EVP ARM 45.00 0.00 X 259661 0 30491 RICHARD O'BRIEN THRU 0420 EVP GOVERNMENT RELATIONS 45.00 0.00 X 100478 0 8400 CHARLES FOXGROVER CHIEF DIGITAL OFFICER 45.00 0.00 X 146762 0 20828 JAMES O'DONNELL EVP FINANCE/TREASURER 45.00 5.00 X 187341 0 29454 SIMON FENWICK EVP DIVERSITY 20.00 20.00 X 211651 0 12065 ALISON PEPPER EVP GOVERNMENT RELATIONS 45.00 0.00 X 214903 0 9746 GREGORY WALKER SVP 45.00 0.00 X 191019 0 3554 DONNA TOBIN EVP - MAR COM/EVENTS & PARTNERSHIPS 45.00 0.00 X 327419 0 1813 ADAM COTUMACCIO COO 45.00 0.00 X 237234 0 32889 BRIAN NIENHAUS AS OF 0420 SVP MED, CENTRAL REGION 45.00 0.00 X 172813 0 21959 MARK S PIAZZA SVP OF NEW BUSINESS DEVELOPMENT 45.00 0.00 X 171441 0 19556 MATT KASINDORF SVP 45.00 0.00 X 186814 0 14140 HARLEY GRIFFITHS SVP 45.00 0.00 X 164574 0 19212 JUAN C SUAREZ SVP, MEMBER ENGAGEMENT & DEV., WEST 45.00 0.00 X 171576 0 26518 SEAN MCGLADE VP, INSTRUCTIONAL DESIGN 45.00 0.00 X 148084 0 12396 SALVATORE CONTE VP 45.00 0.00 X 152853 0 19021 3622897 0 314931 20 0 1 0 ELEMENT ELEVEN INC 588 E HWY CC - SUITE 1 NIXA MO 65714 IT DEVELOPMENT 187814 VENABLE LLP 1290 AVENUE OF AMERICAS 20TH FL NEW YORK NY 10104 LEGAL SERVICES 173314 ASSOCIATION OF NATIONAL ADVERTISERS 155 EAST 44TH STREET NEW YORK NY 10017 INDUSTRY SUPPORT 163333 DIGITAL CHICK LLC 201 RAILROAD AVENUE EAST RUTHERFORD NJ 07073 EVENT PRODUCTION 129050 WGB CONSULTING 74 BREVCORT ROAD CHAPPAQUA NY 10514 MEDIA CONSULTING 121333 5 MEMBERSHIP DUES 900099 11178319 11178319 CONFERENCES & TRAINING 900099 897227 897227 COUNCILS REVENUE 900099 107779 107779 PUBLIC. & TAPE SALES 900099 96560 96560 SVC FOR NEW AGENCIES 900099 33750 33750 1717 1717 12315352 991366 991366 723703 723703 0 0 INTERCO. REIMBURSEMENT 900099 150000 150000 MISCELLANEOUS REVENUE 900099 48646 48646 198646 13505364 12465352 0 1040012 34575 3853833 3852162 20696 493007 379881 218637 108085 553993 734484 68318 1394881 4965 207579 350888 75850 PUBLICATION & SUBSCRIP. 447154 SPECIAL PROJECTS 384050 EXPENSES FROM COUNCILS 212063 DUES & FEES 36522 30077 13461700 1653979 3755084 664807 583233 911171 957971 334376 5212090 4008087 1531388 1204003 8399291 9693597 1017621 719289 14512633 16913177 1234114 2236055 4124004 2967568 749449 0 3040245 4231593 9147812 9435216 X 5364821 7477961 5364821 7477961 14512633 16913177 X 43664 1241529 -5495 833442 X 0 1 X 1 0 1 1 0 0 1 2625773 1575856 1049917 1063883 937772 126111 1522434 1494459 27975 1204003 DEFERRED RENT 1527872 DEFERRED COMPENSATION AGREEMENTS 1548840 OTHER LIABILITIES 1154881 4231593 X 14980978 1241529 234085 1475614 13505364 0 13505364 13701280 239580 239580 13461700 0 13461700 PART IV, LINE 1B: ESCROW OR CUSTODIAL ACCOUNT LIABILITY THE FUNDS REPORTED ON THE FORM 990, PART X, LINE 21 INCLUDE AMOUNTS ASSOCIATED WITH THE VARIOUS REGIONAL COUNCILS THAT HOST GATHERINGS AND SPECIALISTS TO DISCUSS A BROAD ARRAY OF ADVERTISING TOPICS. THE PAYABLE ACCOUNT REPRESENTS THE NET INCOME AND EXPENSES ASSOCIATED WITH FUNDING THE COUNCIL ACTIVITIES. PART X, LINE 2: FIN 48 FOOTNOTE THE AAAA FOLLOWS GUIDANCE THAT CLARIFIES THE ACCOUNTING FOR UNCERTAINTY IN TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE FASB ESTABLISHED CRITERION THAT AN INDIVIDUAL TAX POSITION MUST MEET FOR SOME OR ALL OF THE BENEFITS OF THAT POSITION TO BE RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS. THIS STANDARD REQUIRES THE ASSOCIATION TO DETERMINE WHETHER A TAX POSITION IS MORE LIKELY THAN NOT TO BE SUSTAINED UPON EXAMINATION BY THE APPLICABLE TAXING AUTHORITY, INCLUDING RESOLUTION OF ANY RELATED APPEALS OR LITIGATION PROCESSES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE AAAA IS EXEMPT FROM FEDERAL INCOME TAX UNDER SECTION 501(C)(6) OF THE U.S. INTERNAL REVENUE CODE (THE "CODE"), THOUGH IT IS SUBJECT TO TAX ON INCOME UNRELATED TO ITS EXEMPT PURPOSE, UNLESS THAT INCOME IS OTHERWISE EXCLUDED BY THE CODE. THE AAAA HAS DETERMINED THAT THERE ARE NO MATERIAL UNCERTAIN TAX POSITIONS THAT REQUIRE RECOGNITION OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE AAAA HAS PROCESSES PRESENTLY IN PLACE TO ENSURE THE MAINTENANCE OF ITS TAX-EXEMPT STATUS; TO IDENTIFY AND REPORT UNRELATED INCOME; DETERMINE ITS FILING AND TAX OBLIGATIONS IN JURISDICTIONS FOR WHICH IT HAS NEXUS; AND, TO REVIEW OTHER MATTERS THAT MAY BE CONSIDERED TAX POSITIONS. 1 THE 3 MOVEMENT 415 CAMBRIDGE AVE SUITE 2 PALO ALTO CA 94306 473470840 5000 CONTRIBUTIONS/SPONSORSHIPS 1 PROCESS FOR MONITORING THE USE OF GRANT FUNDS IN THE U.S. AAAA PERIODICALLY SPONSORS ORGANIZATIONS SO LONG AS MANAGEMENT DETERMINES THAT THOSE ORGANIZATIONS HAVE GOALS AND OBJECTIVES THAT ALIGN WITH AAAA'S TAX-EXEMPT MISSION. AAAA ROUTINELY CONDUCTS BUSINESS WITH THESE ORGANIZATIONS AND RECEIVES ASSURANCES THAT GIFTED FUNDS ARE USED FOR THEIR INTENDED PURPOSES. X X X 1 1 X X X X 0 0 0 MARLA KAPLOWITZ PRESIDENT & CEO 570181 0 0 0 8093 0 9750 0 23139 0 611163 0 0 0 DONNA TOBIN EVP - MAR COM/EVENTS & PARTNERSHIPS 276419 0 51000 0 0 0 0 0 1813 0 329232 0 0 0 MOLLIE ROSEN EVP ARM 258661 0 1000 0 0 0 9750 0 20741 0 290152 0 0 0 ADAM COTUMACCIO COO 236234 0 1000 0 0 0 9750 0 23139 0 270123 0 0 0 ALISON PEPPER EVP GOVERNMENT RELATIONS 213903 0 1000 0 0 0 8045 0 1701 0 224649 0 0 0 SIMON FENWICK EVP DIVERSITY 210651 0 1000 0 0 0 3405 0 8660 0 223716 0 0 0 JAMES O'DONNELL EVP FINANCE/TREASURER 186341 0 1000 0 0 0 6629 0 22825 0 216795 0 0 0 MATT KASINDORF SVP 185814 0 1000 0 0 0 5780 0 8360 0 200954 0 0 0 JUAN C SUAREZ SVP, MEMBER ENGAGEMENT & DEV., WEST 170423 0 1000 0 153 0 3702 0 22816 0 198094 0 0 0 BRIAN NIENHAUS AS OF 0420 SVP MED, CENTRAL REGION 171813 0 1000 0 0 0 0 0 21959 0 194772 0 0 0 GREGORY WALKER SVP 189870 0 1000 0 149 0 1842 0 1712 0 194573 0 0 0 MARK S PIAZZA SVP OF NEW BUSINESS DEVELOPMENT 170441 0 1000 0 0 0 0 0 19556 0 190997 0 0 0 HARLEY GRIFFITHS SVP 163574 0 1000 0 0 0 5120 0 14092 0 183786 0 0 0 SALVATORE CONTE VP 151853 0 1000 0 0 0 4695 0 14326 0 171874 0 0 0 CHARLES FOXGROVER CHIEF DIGITAL OFFICER 145762 0 1000 0 0 0 4982 0 15846 0 167590 0 0 0 SEAN MCGLADE VP, INSTRUCTIONAL DESIGN 147084 0 1000 0 0 0 3891 0 8505 0 160480 0 0 0 PART I, LINE 1A TAX INDEMNIFICATION AND GROSS-UP PAYMENTS THE FOLLOWING INDIVIDUALS RECEIVED TAX GROSS-UP PAYMENTS IN 2020. THESE AMOUNTS ARE INCLUDED IN THEIR TAXABLE WAGES: MARLA KAPLOWITZ $8,093 GREGORY WALKER $149 JUAN C. SUAREZ $153 HEALTH OR SOCIAL CLUB DUES IN FISCAL YEAR 2021, MARLA KAPLOWITZ RECEIVED A REIMBURSEMENT FOR HEALTH CLUB DUES THAT WAS TAXABLE TO HER AND INCLUDED IN HER TAXABLE WAGES. GENERAL IMPACT OF COVID-19 ON THE ORGANIZATION THE COVID-19 PANDEMIC, WHOSE EFFECTS FIRST BECAME KNOWN IN JANUARY 2020, IS HAVING A BROAD AND PROFOUND IMPACT ON COMMERCE AND FINANCIAL MARKETS AROUND THE WORLD. THE EXTENT OF THE IMPACT OF COVID-19 ON THE ASSOCIATION'S OPERATIONAL AND FINANCIAL PERFORMANCE WILL DEPEND ON CERTAIN DEVELOPMENTS, INCLUDING THE DURATION AND SPREAD OF THE OUTBREAK, WHICH AT PRESENT CANNOT BE DETERMINED. ACCORDINGLY, THE EXTENT TO WHICH COVID-19 MAY IMPACT THE ASSOCIATION'S FINANCIAL POSITION AND CHANGES IN NET ASSETS AND CASH FLOWS IS UNCERTAIN AND THE ACCOMPANYING CONSOLIDATED FINANCIAL STATEMENTS INCLUDE NO ADJUSTMENTS RELATING TO THE EFFECTS OF THIS PANDEMIC. FORM 990, PART I, LINE 1 (CONTINUED) AND SHAPE CULTURE THROUGH INFINITE CREATIVITY. WE ARE DEDICATED TO, AND VESTED IN, OUR MEMBERS' SUCCESS, JUST AS THEY ARE DEDICATED TO HELPING BRANDS CREATE, DISTRIBUTE, AND MEASURE EFFECTIVE AND INSIGHTFUL ADVERTISING AND MARKETING. AND WE CHAMPION THE INFINITE POWER OF CREATIVITY AND VALUE AGENCIES BRING IN DRIVING BUSINESS GROWTH AND POWERFUL CULTURAL CHANGE. THE 4A'S DRIVES BUSINESS. FORM 990, PART III, LINE 1 - ORGANIZATION'S MISSION (CONTINUED) WHICH HELP DIRECT MORE THAN 85% OF TOTAL U.S. ADVERTISING SPEND. THE 4A'S IS COMMITTED TO PROTECTING THE BEST INTERESTS OF ITS MEMBERS, THEIR EMPLOYEES AND THE INDUSTRY AT LARGE. ITS BENEFITS DIVISION INSURES MORE THAN 164,000 AGENCY PROFESSIONALS, AND THE DC OFFICE ADVOCATES FOR POLICIES THAT BEST SUPPORT A THRIVING ADVERTISING INDUSTRY. WITH ITS BEST IN CLASS LEARNING AND CAREER DEVELOPMENT PROGRAMS, THE 4A'S AND ITS FOUNDATION FUEL A ROBUST DIVERSITY PIPELINE OF TALENT FOR ITS MEMBERS AND THE MARKETING AND MEDIA INDUSTRY, FOSTERING THE NEXT GENERATION OF LEADERS. FORM 990, PART III, LINE 4A (CONTINUED): WITH PARTICIPATING AAAA MEMBERS, AAAA OPERATES VARIOUS COUNCILS COMMITTED TO PROVIDING LEADERSHIP AND INITIATIVES THAT FOSTER THE EFFECTIVENESS OF ITS MEMBERS AND THE OVERALL ADVERTISING INDUSTRY IN VARIOUS GEOGRAPHICAL AREAS NATIONALLY. THESE OBJECTIVES ARE ACHIEVED THROUGH THE PROVISION OF PROGRAMS IN: MARKETING, COMMUNICATIONS, TRAINING AND DEVELOPMENT, EXECUTIVE LEADERSHIP ENRICHMENT, CREATIVE THOUGHT-LEADERSHIP AND EXECUTIVE NETWORKING OPPORTUNITIES. THE WORKPLACE ENLIGHTENMENT CERTIFICATION PROGRAM IS DESIGNED TO MOVE AGENCIES TOWARD THE HIGHEST STANDARDS OF EQUITY AND INCLUSION. IMPACTING ALL LEVELS OF THE ORGANIZATION; FROM C-SUITE TO ENTRY-LEVEL, IT HELPS ADDRESS A RANGE OF NEEDS FROM BUILDING A DIVERSE TALENT PIPELINE TO ENSURING EQUITABLE PRACTICES. THE PROGRAM FOCUSES ON INCLUSION ACROSS RACE, GENDER, AGE, FAITH, LGTBQIA+, AND PEOPLE WITH DISABILITIES. FORM 990, PART III, LINE 4B (CONTINUED): EDUCATION: AAAA PROVIDES A LIBRARY WITH UNLIMITED INFORMATION PERTAINING TO PRODUCTS AND COMPANIES; AIDS IN SETTING INDUSTRY STANDARDS; PUTS OUT MANY EDUCATIONAL PUBLICATIONS; AND CONDUCTS TRAINING, SEMINARS, AND MEETINGS. FORM 990, PART III, LINE 4C (CONTINUED): AAAA ESTABLISHED ITS WASHINGTON OFFICE TO ADDRESS FEDERAL AND STATE LEGISLATION AND TO EDUCATE LEGISLATORS ON RAMIFICATIONS OF PROPOSED BILLS AFFECTING THE ADVERTISING INDUSTRY. FORM 990, PART V, LINE 2A NUMBER OF EMPLOYEES THE ASSOCIATION REPORTED 62 EMPLOYEES ON ITS 2020 FORM W-3; HOWEVER, THE ASSOCIATION NOTES THAT SOME OF THOSE EMPLOYEES PROVIDED SERVICES EXCLUSIVELY TO RELATED ORGANIZATIONS, AAAA BENEFITS, INC. AND TO AN UNRELATED PARTY, THE HEALTH CARE COALITION. THE COSTS OF THOSE SERVICES WERE REIMBURSED IN FULL BY THE DESIGNATED ORGANIZATIONS. PLEASE REFER TO SCHEDULE R FOR MORE DETAIL. FORM 990, PART VI, SECTION A, LINE 6 MEMBERS OR STOCKHOLDERS THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES, INC. IS A TRADE ASSOCIATION WHOSE MEMBERS REPRESENT A WIDE RANGE OF DISCIPLINES WITHIN THE MARKETING COMMUNICATIONS LANDSCAPE. MEMBERS PARTICIPATE IN SHAPING THEIR ORGANIZATION AND ENTIRE INDUSTRY THROUGH THEIR DEDICATED WORK ON COMMITTEES, REGIONS, COUNCILS, AND FORUMS AS WELL AS SERVING ON THE NATIONAL BOARD. FORM 990, PART VI, SECTION A, LINE 7A MEMBERS OR STOCKHOLDERS WHO MAY ELECT THE CHAIR OF THE BOARD AND THE SECRETARY-TREASURER SHALL BE ELECTED AT AN ANNUAL MEETING OF THE MEMBERS OF THE ASSOCIATION TO SERVE FOR TWO YEARS. THE VICE-CHAIR SHALL BE ELECTED AT AN ANNUAL MEETING IN YEARS NOT HAVING AN ELECTION OF A CHAIR AND SHALL SERVE FOR ONE YEAR. THE DIRECTORS-AT-LARGE SHALL BE ELECTED TO SERVE FOR A PERIOD OF THREE YEARS. REGIONAL DIRECTORS, NOMINATED BY THE RESPECTIVE REGIONS, SHALL BE ELECTED TO SERVE FOR ONE YEAR. THE DIRECTORS-AT-LARGE SHALL BE DIVIDED INTO THREE CLASSES TO CONSIST OF FOUR IN EACH CLASS. ONE CLASS SHALL BE ELECTED ANNUALLY. FORM 990, PART VI, SECTION A, LINE 7B DECISIONS SUBJECT TO APPROVAL ALL ELECTIONS AND RESOLUTIONS, UNLESS OTHERWISE SPECIFICALLY PROVIDED FOR, SHALL REQUIRE A MAJORITY VOTE OF THE MEMBERS IN ATTENDANCE. TWENTY PERCENT OF THE MEMBERS SHALL CONSTITUTE A QUORUM AT ANY ANNUAL OR SPECIAL MEETING OF THE ASSOCIATION FOR THE TRANSACTION OF BUSINESS. FORM 990, PART VI, SECTION B, LINE 11B FORM 990 REVIEW PROCESS THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM, GRANT THORNTON, LLP, IN CONJUNCTION WITH THE ASSOCIATION'S FINANCIAL DEPARTMENT. ONCE COMPLETED, A DRAFT OF THE 2020 FORM 990 IS SENT TO THE MEMBERS OF THE BOARD OF DIRECTORS PRIOR TO ITS FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C CONFLICT OF INTEREST POLICY MONITORING AND ENFORCEMENT ALL BOARD MEMBERS, OFFICERS AND EMPLOYEES ARE REQUIRED ANNUALLY TO DISCLOSE ANY CONFLICTS OF INTEREST THAT MAY ARISE BY VIRTUE OF THEIR EMPLOYMENT OR BOARD SERVICE WITH THE ASSOCIATION. EACH INDIVIDUAL IS REQUIRED TO SIGN THE CODE OF CONDUCT POLICY ANNUALLY (WHICH ATTESTS TO THEIR INDEPENDENCE). WITHIN THE CODE OF CONDUCT POLICY THERE IS A REQUIREMENT TO DIVULGE ANY CONFLICT. THE SIGNED DOCUMENTS ARE RETAINED BY HUMAN RESOURCES AND THE BOARD SECRETARY. POTENTIAL CONFLICTS OF INTEREST ARE INVESTIGATED IMMEDIATELY. FORM 990, PART VI, SECTION B, LINE 15A PROCESS USED TO DETERMINE EXECUTIVE COMPENSATION THE ASSOCIATION HAS ESTABLISHED A COMPENSATION COMMITTEE TO DETERMINE THE COMPENSATION OF THE TOP MANAGEMENT OFFICIAL. THE COMPENSATION COMMITTEE MEETS ANNUALLY TO APPROVE BOTH RAISES AND BONUSES. THE OVERALL SALARY AND BENEFIT EXPENSES FOR THE NEXT FISCAL YEAR ARE PRESENTED TO THE FULL BOARD OF DIRECTORS IN JANUARY. THE BOARD OF DIRECTORS IS REQUIRED TO APPROVE THE BUDGET, BEFORE SALARY INCREASES GO INTO EFFECT. NONE OF THE OFFICERS AND/OR KEY EMPLOYEES MAY HAVE INPUT INTO THEIR OWN COMPENSATION PACKAGES. THE LAST COMPENSATION STUDY WAS PERFORMED IN OCTOBER OF 2021. FORM 990, PART VI, SECTION C, LINE 19 HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC THE ASSOCIATION MAKES ITS CONSTITUTION AVAILABLE TO THE PUBLIC ON ITS WEBSITE. THE ASSOCIATION'S CONFLICT OF INTEREST POLICY, EXEMPTION APPLICATION, BYLAWS, AND FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST AND AT MANAGEMENT'S DISCRETION. FORM 990, PART VII COMPENSATION THE AMERICAN ASSOCIATION OF ADVERTISING AGENCIES, INC. ALLOCATES A PERCENTAGE OF ITS EXECUTIVE SALARIES TO A RELATED TAXABLE CORPORATION, AAAA BENEFITS, INC. FOR PURPOSES OF PART VII AND SCHEDULE J, ALL SALARY IS BEING REPORTED TO THE ASSOCIATION SINCE IT ISSUES W-2 FORMS TO THE OFFICERS. FOR THE YEAR ENDING 03/31/2021, THE ASSOCIATION ALLOCATED SALARIES EQUAL TO APPROXIMATELY $150,000 TO AAAA BENEFITS, INC. FORM 990, PART XI DURING FISCAL 2021, AAAA'S PERFORMED A DETAILED ANALYSIS OF THE RELATIONSHIP IT MAINTAINS WITH AND THE GOVERNANCE STRUCTURE OF ITS COUNCILS. THE RESULTS OF THIS EVALUATION CONCLUDED THAT THE COUNCILS EFFECTIVELY OPERATE AS AN EXTENSION OF THE PROGRAMMATIC OFFERINGS AND OVERALL STRATEGY OF AAAA. AAAA HAS HISTORICALLY ACCOUNTED FOR THE ACTIVITIES OF AND, SPECIFICALLY, THE CASH IT HOLDS ON THE COUNCILS' BEHALF, AS AN ASSET WITH A CORRESPONDING LIABILITY. AS A RESULT, IN FISCAL 2021, AAAA REVISED ITS REPORTING FOR THE AMOUNTS HELD FOR ITS COUNCILS TO REFLECT SUCH ASSETS AS PART OF THE OVERALL NET ASSETS OF AAAA. THIS RESULTED IN AN EQUITY ADJUSTMENT, REPRESENTING THE CUMULATIVE AMOUNT OF CASH HELD FOR THE COUNCILS AS OF APRIL 1, 2019, TOTALING $734,691, IN THE ACCOMPANYING 2020 CONSOLIDATED FINANCIAL STATEMENTS, WITH THE CORRESPONDING REVENUES AND EXPENSES PERTAINING TO COUNCIL ACTIVITY BEING DISCREETLY PRESENTED ON THE ACCOMPANYING CONSOLIDATED STATEMENTS OF ACTIVITIES FOR BOTH 2021 AND 2020. FORM 990, PART XI, LINE 9: NET PERIODIC PENSION BENEFIT 83,993. ADJUSTMENT TO BEGINNING EQUITY TO REFLECT AD COUNCIL'S NET ASSETS 734,691. CHANGE IN NET ASSETS BEFORE NET PERIODIC PENSION BENEFIT 14,758. 4A'S WORKPLACE ENLIGHTENMENT LLC 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 EDUCATION NY 0 2000 AAAA AAAA FOUNDATION 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 133949950 SCHOLARSHIPS NY 501(C)(3) LINE 7 N/A 0 ADVERTISING DIGITAL IDENTIFICATION LLC 1065 AVENUE OF THE AMERICAS NEW YORK NY 10018 061639073 DIGITAL ID'S NY N/A RELATED 1789784 1130369 0 1 0.50000 AAAA BENEFITS INC 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 133439015 EMP BENEFITS NC AAAA C 3050442 7701169 1.00000 1 AAAA INSURANCE COMPANY LTD 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 980207541 INSURANCE BD AAAA C 19973632 29919832 1.00000 1 AAAA GROUP INSURANCE TRUST 11020 DAVID TAYLOR DRIVE SUITE 305 CHARLOTTE NC 28262 133685892 SUPPORT SVCS NC AAAA T 1.00000 1 0 0 0 0 0 1 0 0 0 0 0 1 0 1 1 0 1 0 1 AAAA BENEFITS INC F 100000 DIRECT AAAA BENEFITS INC L 150000 FMV AAAA BENEFITS INC O 330000 FMV ADVERTISING DIGITAL IDENTIFICATION LLC S 730000 DIRECT SCHEDULE R, PART V, LINE 2 THE ASSOCIATION DISCLOSES FOUR TRANSACTIONS ON SCHEDULE R. THE ASSOCIATION IS REIMBURSED BY AAAA FOUNDATION FOR CERTAIN ADMINISTRATIVE, PROGRAMMATIC AND SUPPORT SERVICES. THESE EXPENSES ARE REIMBURSED AT COST AND THE TOTAL REIMBURSED FOR THE YEAR ENDING MARCH 31, 2021 WAS $48,739. THE ASSOCIATION IS REIMBURSED BY AAAA BENEFITS FOR A PERCENTAGE OF THE SALARY COSTS OF SIX EMPLOYEES, AS WELL AS A PERCENTAGE OF LEGAL AND PAYROLL COSTS. THE ASSOCIATION DOES NOT ASSESS ANY MARK UP ON THESE EXPENSES; THEY ARE REIMBURSED AT COST AND THE TOTAL REIMBURSED FOR THE YEAR ENDING MARCH 31, 2021 WAS $150,000 FOR ADMINISTRATIVE AND SUPPORT SERVICES. THE ASSOCIATION IS ALSO REIMBURSED $330,000 FOR THE YEAR ENDING MARCH 31, 2021 FOR EXPENSES THAT DEAL WITH SALARIES AND EMPLOYEE BENEFITS. THE ASSOCIATION, LIKEWISE, RECEIVED A DIVIDEND FROM AAAA BENEFITS IN THE AMOUNT OF $100,000. THE ASSOCIATION INVESTS IN ADVERTISING DIGITAL IDENTIFICATION LLC; THE DISTRIBUTION FROM THIS INVESTMENT FOR THE YEAR ENDING MARCH 31, 2021 WAS $730,000.