2020-08-14T08:19:22-05:00 2019-09-30 861065772 DELOITTE TAX LLP 2 JERICHO PLAZA JERICHO NY 11753 990 2018-10-01 210634479 EDUCATIONAL TESTING SERVICE EDUC 6099219000 ROSEDALE ROAD MS 20-J PRINCETON NJ 08541 JACK HAYON SVP & CHIEF FINANCIAL OFFICER 6099219000 2020-08-11 CHRISTINE KAWECKI P00743140 5169187000 2020-08-07 69.113.220.222 2020-08-14 08:11:16 ED P EA089574578C82C00E0277A5C0B66A9CA20B350C 326BB75394EB8C3047F6055851347F9C2A567C8B 2018 2020-09-22 18:59:49Z JACK HAYON ROSEDALE ROAD MS 20-J PRINCETON NJ 08541 1569634962 0 X WWW.ETS.ORG X 1947 NY SEE P.2, PART III: QUESTION 1 16 15 30188 0 14259613 0 9606303 10976917 1196751734 1181552202 829335932 13648178 90754819 88223046 2126448788 1294400343 1789171 1207002 0 0 442063792 426135219 0 0 0 884508811 854906898 1328361774 1282249119 798087014 12151224 2035173070 2015061092 511607210 523519491 1523565860 1491541601 X EDUCATIONAL TESTING SERVICE (ETS) WAS INCORPORATED IN 1947 BY THE BOARD OF REGENTS FOR THE EDUCATION DEPARTMENT OF THE STATE OF NEW YORK AS AN EDUCATIONAL ORGANIZATION TO ENGAGE IN RESEARCH, SERVICES AND OTHER ACTIVITIES IN THE FIELD OF EDUCATIONAL TESTING.MISSIONOUR MISSION IS TO HELP ADVANCE QUALITY AND EQUITY IN EDUCATION BY PROVIDING FAIR AND VALID ASSESSMENTS, RESEARCH AND RELATED SERVICES. OUR PRODUCTS AND SERVICES MEASURE KNOWLEDGE AND SKILLS, PROMOTE LEARNING AND PERFORMANCE, AND SUPPORT EDUCATION AND PROFESSIONAL DEVELOPMENT FOR ALL PEOPLE WORLDWIDE.VISIONETS WILL BE RECOGNIZED AS THE GLOBAL LEADER IN PROVIDING FAIR AND VALID ASSESSMENTS, RESEARCH AND RELATED PRODUCTS AND SERVICES TO HELP INDIVIDUALS MAKE SUCCESSFUL EDUCATIONAL AND CAREER TRANSITIONS THROUGHOUT THEIR LIVES, PARENTS UNDERSTAND AND USE ASSESSMENTS AND RELATED PRODUCTS TO HELP THEIR CHILDREN REACH THEIR FULL POTENTIAL AND TEACHERS IMPROVE THEIR PRACTICE THROUGH ASSESSMENT AND PROFESSIONAL DEVELOPMENT. 0 0 963432457 1207001 989849246 ASSESSMENT RESEARCH, DEVELOPMENT, AND SCORING EDUCATIONAL TESTING SERVICE ("ETS") CONDUCTS RESEARCH ON STATISTICAL AND PSYCHOMETRIC METHODOLOGY TO ADVANCE THE SCIENCE OF EDUCATIONAL MEASUREMENT AND ENSURE THE TECHNICAL QUALITY AND FAIRNESS OF ETS'S ASSESSMENTS AND ASSESSMENT-RELATED SERVICES. THROUGH ITS POLICY EVALUATION AND RESEARCH CENTER, ETS ALSO CONDUCTS RESEARCH AND ANALYSES THAT ADDRESS CHALLENGING EDUCATIONAL POLICY ISSUES. IN CONJUNCTION WITH ITS RESEARCH, ETS DEVELOPS EDUCATIONAL ASSESSMENTS FOR USE BY STATES IN K-12 ASSESSMENT, FOR COLLEGE ADMISSIONS AND THE TRANSITION FROM HIGH SCHOOL TO COLLEGE, FOR GRADUATE AND BUSINESS SCHOOL ADMISSIONS, AND FOR USE IN MEASURING KNOWLEDGE AND SKILLS, PROMOTING LEARNING AND PERFORMANCE, AND SUPPORTING EDUCATION AND PROFESSIONAL DEVELOPMENT. ETS HAS DEVELOPED MORE THAN 200 ASSESSMENT PROGRAMS INCLUDING BUT NOT LIMITED TO PRAXIS, HISET, TEST OF ENGLISH AS A FOREIGN LANGUAGE (TOEFL), GRADUATE RECORD EXAMINATION (GRE), TEST OF ENGLISH FOR INTERNATIONAL COMMUNICATION (TOEIC), AND STATE SPECIFIC AND PRE-COLLEGE ASSESSMENTS.IN CONJUNCTION WITH ITS RESEARCH, ETS CONTINUES WORKING COLLABORATIVELY WITH THE NATIONAL CENTER FOR EDUCATION STATISTICS ON THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS (NAEP). ADDITIONALLY, ETS'S INSTITUTE FOR STUDENT ACHIEVEMENT (ISA) CONTINUES WORKING IN PARTNERSHIP WITH DISTRICTS AND SCHOOLS TO TRANSFORM UNDERPERFORMING HIGH SCHOOLS INTO RIGOROUS AND SUPPORTIVE LEARNING ENVIRONMENTS THAT PREPARE STUDENTS TO BE COLLEGE-READY.EACH YEAR, ETS SCORES AND DELIVERS MILLIONS OF ASSESSMENTS AND SCORE REPORTS TO EXAMINEES AND INSTITUTIONS, IN NUMEROUS FORMATS AND USING A VARIETY OF MEANS.THE PROCESS OF SCORING EDUCATIONAL ASSESSMENTS INCLUDES ENSURING THAT TESTS: (A) ACCURATELY MEASURE WHAT THEY ARE INTENDED TO MEASURE; (B) GENERATE CONSISTENT RESULTS ACROSS DIFFERENT VERSIONS AND AMONG DIFFERENT GROUPS OF TEST TAKERS; AND (C) ARE FAIR TO ALL TEST TAKERS. 149684552 191702956 ASSESSMENT ADMINISTRATION & DELIVERYETS PROVIDES TEST ADMINISTRATION AND DELIVERY SERVICES. ETS ADMINISTERS APPROXIMATELY 16 MILLION ASSESSMENTS ANNUALLY IN MORE THAN 9,000 LOCATIONS. ETS DOES NOT OWN OR OPERATE ANY TEST CENTERS; INSTEAD ETS ENGAGES INDEPENDENT 3RD PARTY SERVICES PROVIDERS TO ADMINISTER AND DELIVER ASSESSMENTS AROUND THE WORLD. ASSESSMENT ADMINISTRATION STAFF ARE SUBJECT TO A RIGOROUS TRAINING AND APPROVAL PROCESS PRIOR TO THE ADMINISTRATION OF AN ASSESSMENT. FOR EXAMPLE, TEST CENTER ADMINISTRATORS MUST DEMONSTRATE THE ABILITY TO PERFORM PRIMARY RESPONSIBILITIES, SUCH AS ESTABLISHING A SECURE TESTING ENVIRONMENT AND MANAGING THE DAY-TO-DAY TESTING ACTIVITIES PRIOR TO ADMINISTRATION OF AN ASSESSMENT. THESE ACTIVITIES PROVIDE SUPPORT FOR THE ADMINISTRATION AND DELIVERY OF GROUP ASSESSMENTS IN NUMEROUS FORMATS AND USING A VARIETY OF MEANS. 1113117009 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 1 1 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 1 X 110184 0 30188 1 1 1 1 CA CH FR IS JO KS NL PL TU 0 0 0 0 0 0 0 0 0 0 X 16 15 0 0 0 0 0 0 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 AZ CA DC DE IN KS NJ NY OR X MICHAEL J FREDDO VP & CONTROLLER 6099219000 ROSEDALE ROAD MS 20-J PRINCETON NJ 08541 COLBERT ISAAC TRUSTEE 1.00 X 62000 0 0 ENGLISH MICHELA A TRUSTEE 2.00 X 102000 0 0 GANDARA PATRICIA TRUSTEE 2.00 X 66000 0 0 GARCIA MILDRED TRUSTEE 2.00 X 66000 0 0 GARCIA OFELIA TRUSTEE 1.00 X 62000 0 0 HENDERSON WADE N TRUSTEE 2.00 X 90000 0 0 HUDSON DARIENNE TRUSTEE 2.00 X 62000 0 0 KANTER MARTHA TRUSTEE 2.00 X 70000 0 0 KRULL WILHELM TRUSTEE 2.00 X 33500 0 0 LANDGRAF KURT TRUSTEE 1.00 X 0 0 0 LEWIS EARL TRUSTEE 2.00 X 77000 0 0 LUMPKINS ROBERT TRUSTEE 2.00 X 77000 0 0 MACDONALD WALTER B PRESIDENT 40.00 X X 1308507 0 41967 MURLEY ROBERT S TRUSTEE 1.50 X 77000 0 0 PELLEGRINO JAMES TRUSTEE 2.00 X 104700 0 0 QUAZZO DEBORAH TRUSTEE 2.00 X 54000 0 0 SINE JEFFREY TRUSTEE 2.00 X 73000 0 0 STEWART DEBRA W TRUSTEE 2.00 X 92000 0 0 TATUM BEVERLY DANIEL TRUSTEE 2.00 X 78000 0 0 BAILEY DIANE A SVP, PRODUCTION & DELIVERY 40.00 X 536698 0 56454 BASEHORE JOHN VP & TREASURER 40.00 X 408777 0 51302 DONADO YVETTE SVP & CHIEF ADMIN OFFICER 40.00 X 508923 0 12184 DRAPER JR WILLIAM C VP & COO COLLEGE BOARD 40.00 X 429348 0 35988 ERCIKAN-ALPER KADRIYE VP STAT ANALYSIS & PSYCH RSRCH 40.00 X 378749 0 54207 FARNUM MARISA VP-ASSESSMENT DEVELOPMENT 40.00 X 374068 0 38209 FREDDO MICHAEL J VP & CONTROLLER 40.00 X 439493 0 38253 GILBERTSON BRUCE M VP FACILITIES & REAL ESTATE 40.00 X 398859 0 19939 GORIN JOANNA VP RESEARCH 40.00 X 472422 0 50600 HAYON JACK SVP & CHIEF FINANCIAL OFFICER 40.00 X 768282 0 50072 HERNANDEZ SANDRA VP-FINANCE 40.00 X 414747 0 40350 HOBSON DAVID VP & CORPORATE SECRETARY 40.00 X 413146 0 35961 HUNT DAVID EXECUTIVE VP & COO 40.00 X 754368 0 79331 JOHNSON-GREGORY SHEREE L VP ASSOC GENERAL COUNSEL & CDO 40.00 X 465105 0 46848 LAWRENCE IDA M SR VP-RESEARCH & DEVELOPMENT 40.00 X 563425 0 41805 LESTER SARA VP HUMAN RESOURCES & LEARNING 40.00 X 247909 0 32170 LOWERY LILIAN M VP & COO STA K12 & TLC 40.00 X 110719 0 7179 NELSON SCOTT F SVP & CHIEF MARKETING OFFICER 40.00 X 518554 0 68832 NETTLES MICHAEL T SVP-CTR POLICY EVAL & RSRCH 40.00 X 487240 0 48342 OSWALD JOHN VP CLIENT RELATIONS & OUTREACH 40.00 X 403232 0 41298 PAYNE DAVID G VP & COO GLOBAL EDUCATION 40.00 X 497826 0 47082 PFUND REBECCA CHIEF INFORMATION OFFICER 40.00 X 488309 0 63004 POTE STEPHEN K VP CHIEF QUALITY OFFICER 40.00 X 555075 0 20177 ROBINSON DIERDRE VP & CLO SWS 40.00 X 434096 0 1200 ROCKEY ANNE F VP - OPERATIONS 40.00 X 383309 0 50176 SCHROEDER GLENN C SVP & GENERAL COUNSEL 40.00 X 683986 0 42173 WAKEMAN DANIEL VP & CHIEF INFORMATION OFFICER 40.00 X 446229 0 46146 WEAVER SCOTT V VP CHIEF STRATEGY OFFICER 40.00 X 507665 0 63948 WILLIAMSON DAVID VP NEW PRODUCT DEVELOPMENT 40.00 X 357348 0 53092 HUDE TRACY VP - FINANCE (AS OF 09/14/19) 40.00 X 289264 0 28536 TAYLOR-SMITH RALPH VP CORP DEVLPMT (AS OF 06/28/19) 40.00 X 0 0 0 BENNETT RANDY E FREDERIKSEN CHAIR ASSESSMENT 40.00 X 371397 0 32635 CHAN PETER GNRL MGR, APPLICATION DEVELOP 40.00 X 342060 0 56485 KIRSCH IRWIN TYLER CHAIR LG SCALE ASSESSMEN 40.00 X 381079 0 40269 MCHALE FREDERICK GENERAL MANAGER, STAT ANALYSIS 40.00 X 322136 0 38451 PATANELLARICHARD J CHIEF FINANCIAL ADVISOR 40.00 X 341211 0 39850 VALDES GUADALUPE FORMER TRUSTEE 0.00 X 11750 0 0 WINCKLER GEORG FORMER TRUSTEE 0.00 X 26000 0 0 ELLIOTT THOMAS J FORMER VP & CLO SWS 0.00 X 132243 0 38042 KERINS NANCY J FORMER SVP-PROD & DELIVERY 0.00 X 356956 0 0 LAZER STEPHEN FORMER VP-STUD & TEACH ASSESS 0.00 X 261563 0 0 MAZZEO JOHN FORMER VP STAT ANALYSIS & PSYCH 0.00 X 306096 0 22116 19144369 0 1574673 1394 1 1 0 ACCENTURE LLP 161 NORTH CLARK ST CHICAGO IL 60601 SUPPLY CHAIN 68644256 PROMETRIC LLC 1501 SOUTH CLINTON STREET BALTIMORE MD 21224 TEST ADMINISTRATION SERVICES 60126219 COMPUTER SCIENCES CORPORATION 3180 FAIRVIEW PARK DRIVE FALLS CHURCH VA 22042 COMPUTER SERVICES 52548503 ADECCO CORPORATION 175 BROAD HOLLOW ROAD MELVILLE NY 11747 TEMPORARY LABOR 24036872 AMERICAN INSTITUTES FOR RESEARCH 200 VESEY STREET FLOOR 24 NEW YORK NY 10281 CONSULTING 23211097 287 10264409 712508 10976917 TEST DEVLPMT & SCORING 611710 989849246 989849246 TEST ADMIN & DELIVERY 611710 191702956 191702956 1181552202 10129621 -4469 10134090 73931235 73931235 27729 0 27729 27729 27729 278753176 275234619 3518557 3518557 3518557 OCCUPATIONAL&PROF. SKI 611600 9735241 9735241 CHAUNCEY CONFERENC CEN 721000 4528841 4528841 14264082 1294400343 1181552202 14259613 87611611 X 946054 946054 260948 260948 17317486 6466506 10850980 530729 530729 316381484 262078749 54302735 27496866 22093048 5403818 42395949 34064091 8331858 22012705 17686661 4326044 6947564 911740 6035824 3927402 3927402 31005 31005 5237597 5237597 565059253 521933875 43125378 23579488 22770613 808875 148056188 142466737 5589451 2429266 2429266 22761737 15179105 7582632 8369739 6742801 1626938 2573495 2085709 487786 2375329 2375329 50011816 46412376 3599440 2288178 2288178 CHAUNCEY CONFERENCE CEN 4022109 4022109 INCOME TAXES 3894362 3894362 BUSINESS FEES 2718499 231160 2487339 MEMBERSHIP AND DUES 623871 441099 182772 1282249119 1113117009 169132110 0 64541928 483323 147644161 156655773 155858138 223529390 42879502 25681584 31376786 31054412 308072789 195812552 119984856 112260237 169753652 207122358 1111869104 1119579153 71356969 33659969 116428400 101453235 3479574 3581658 2035173070 2015061092 200939661 207944543 106592983 113305278 204074566 202269670 511607210 523519491 X 1523565860 1491541601 1523565860 1491541601 2035173070 2015061092 X 12151224 43679812 -87855295 X 0 1 X 1 1 1 X 5869527 8691255 8163384 9606303 10976917 43307386 812183280 1211680710 1227726560 1196751734 1182676188 5631018472 818052807 1220371965 1235889944 1206358037 1193653105 5674325858 0 363759501 525014890 525817956 552234747 528126041 2494953135 363759501 525014890 525817956 552234747 528126041 2494953135 3179372723 96024877 119884373 138342221 137763402 84093054 576107927 96024877 119884373 138342221 137763402 84093054 576107927 914077684 1340256338 1374232165 1344121439 1277746159 6250433785 0.50870 0.51860 0.09220 0.09880 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 31005 31005 1281080989 1281111994 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 37186 27376 49960 31005 145527 250000 250000 250000 250000 1000000 1500000 PART II-A, LINE 2, LOBBYING ACTIVITIES: TOTAL ETS FEDERAL AND STATE LOBBYING EXPENSES WERE $31,005. THE TOTAL LOBBYING EXPENDITURES OF ETS WERE MINIMAL IN COMPARISON TO TOTAL REVENUES. 1970618 1970618 199640636 118484700 81155936 25952812 17728281 8224531 80508723 59599571 20909152 112260237 INVESTMENT IN AFFILIATED ENTITIES 47481497 F NON-PUBLICLY TRADED SECURITIES 1072097656 F 1119579153 NOTES PAYABLE - SHORT TERM DEBT 20391035 INTERCOMPANY PAYABLE 20746 LONG TERM DEBT 41788561 OTHER LONG TERM LIABILITIES 140069328 202269670 X PART X, LINE 2: THIS SUMMARY REFLECTS THE ETS PORTION OF THE ASC 740-10(FIN 48) NOTE IN THE CONSOLIDATED FINANCIAL STATEMENTS. EDUCATIONAL TESTING SERVICE ADOPTED ASC 740-10(FIN 48) ON JANUARY 1, 2009 IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PROCEDURES (US GAAP). IN ACCORDANCE WITH THE US GAAP REQUIREMENTS, EDUCATIONAL TESTING SERVICE ADJUSTED ITS NET ASSETS FOR ITS UNCERTAIN TAX POSITIONS. IT IS REASONABLY POSSIBLE THAT THE BALANCE OF GROSS UNRECOGNIZED TAX BENEFITS MAY CHANGE WITHIN THE NEXT TWELVE MONTHS, DUE TO LAPSE OF APPLICABLE STATUTES OF LIMITATIONS OR CLOSURE OF AN EXAMINATION. CENTRAL AMERICA AND THE CARIBBEAN 0 536 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 462495 EAST ASIA AND THE PACIFIC 0 2562 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 12421317 EUROPE (INCLUDING ICELAND & GREENLAND) 0 540 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 12634462 MIDDLE EAST AND NORTH AFRICA 0 1096 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 2131123 NORTH AMERICA 0 902 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 1378396 RUSSIA AND NEIGHBORING STATES 0 369 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 520610 SOUTH AMERICA 0 583 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 1788243 SOUTH ASIA 0 1943 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 4076462 SUB-SAHARAN AFRICA 0 524 PROGRAM SERVICES ASSESSMENT ADMINISTRATION 1391071 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 INVESTMENTS 14241501 CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 192333944 NORTH AMERICA 0 0 INVESTMENTS 422015 0 8531 0 524 0 9055 35413108 208388531 243801639 1 0 1 0 0 1 1 ABUNDANT NEW LIFE MINISTRIES 221 FRONT STREET FIELDSBORO NJ 08505 300093089 501(C)(3) 0 9135 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS AMERICAN ASSOCIATION OF HISPANICS IN HIGHER EDUCATION (AAHHE) 1120 S CADY MALL 2ND FLR STE A207E TEMPE AZ 85287 300150324 501(C)(3) 50000 3300 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS AMERICAN INDIAN COLLEGE FUND 8333 GREENWOOD BLVD DENVER CO 80221 821573446 501(C)(3) 5000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS ANCHOR HOUSE INC 483 CENTRE STREET TRENTON NJ 08611 222229995 501(C)(3) 15356 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS BOYS & GIRLS CLUB OF MERCER COUNTY 212 CENTRE STREET TRENTON NJ 08611 210634556 501(C)(3) 330 7214 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS CAREER DEVELOPMENT AWARDS PO BOX 2314 PRINCETON NJ 08543 237206954 501(C)(3) 5000 3476 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS CHILDREN'S DEFENSE FUND 25 E STREET NW WASHINGTON DC 20001 520895622 501(C)(3) 110000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS COMMUNITIES IN SCHOOLS OF SAN ANTONIO 1616 E COMMERCE BLDG 1 SAN ANTONIO TX 78205 742393714 501(C)(3) 5258 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS CONTACT OF MERCER COUNTY 60 S MAIN STREET PENNINGTON NJ 08534 222320153 501(C)(3) 5000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS EDUCATION LAW CENTER 60 PARK PLACE SUITE 300 NEWARK NJ 07102 222104555 501(C)(3) 10100 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS EDUCATIONAL LEADERSHIP FOUNDATION OF NJ (NJ SCHOOL BOARDS ASSOCIATION) 413 WEST STATE STREET TRENTON NJ 08618 264437074 501(C)(3) 50000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS EVERY CHILD VALUED 175 JOHNSON AVE LAWRENCEVILLE NJ 08648 222229995 501(C)(3) 15000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS EWING HIGH SCHOOL 900 PARKWAY AVE EWING NJ 08618 GOVERNMENT ENTITY 0 6765 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS EWING PUBLIC EDUCATION FOUNDATION PO BOX 7033 EWING NJ 08628 223347353 501(C)(3) 45266 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS EWING PUBLIC SCHOOLS DISTRICT 2099 PENNINGTON ROAD EWING NJ 08618 GOVERNMENT ENTITY 0 8502 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS FOUNDATION OF MORRIS HALLST LAWRENCE REHABILITATION CENTER 2381 LAWRENCE ROAD LAWRENCE NJ 08648 522250044 501(C)(3) 12500 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS HISPANICS INSPIRING STUDENTS' PERFORMANCE AND ACHIEVEMENT (HISPA) 573 HARDIN AVE PERTH AMBOY NJ 08861 521825305 501(C)(3) 15498 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS JUNIOR ACHIEVEMENT OF NEW JERSEY INC 360 PEAR BLOSSOM DRIVE EDISON NJ 08837 221774147 501(C)(3) 20000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS KIDSBRIDGE 999 LOWER FERRY ROAD EWING NJ 08628 223438541 501(C)(3) 6000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS LAWRENCE TOWNSHIP COMMUNITY FOUNDATION PO BOX 6707 LAWRENCEVILLE NJ 08648 223835387 501(C)(3) 5000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS LAWRENCE TOWNSHIP EDUCATION FOUNDATION 17 PHILLIPS AVE LAWRENCEVILLE NJ 08648 223192024 501(C)(3) 86857 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS MCCARTER THEATRE CENTER 91 UNIVERSITY PLACE PRINCETON NJ 08540 210724198 501(C)(3) 10000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS MERCER COUNTY COMMUNITY COLLEGE FOUNDATION 1200 OLD TRENTON ROAD WEST WINDSOR NJ 08550 222133029 501(C)(3) 12500 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS MERCER COUNTY OFFICE OF EDUCATION 1075 OLD TRENTON ROAD TRENTON NJ 08690 GOVERNMENT ENTITY 0 10813 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS MILLHILL CHILD AND FAMILY DEVELOPMENT CORPORATION 101-A OAKLAND STREET TRENTON NJ 08618 222123700 501(C)(3) 5000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS MORRIS COUNTY VOCATIONAL SCHOOL DISTRICT 400 EAST MAIN STREET DENVILLE NJ 07834 GOVERNMENT ENTITY 50916 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS NAMI MERCER NJ 1235 WHITEHORSE MERCERVILLE RD BLDG 6 STE 303 HAMILTON NJ 08619 222587453 501(C)(3) 5000 558 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS NATIONAL URBAN LEAGUE 80 PINE STREET 9TH FLOOR NEW YORK NY 10005 131840489 501(C)(3) 25000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS OPPORTUNITY JUNCTION 3102 DELTA FAIR BLVD ANTIOCH CA 94509 680459131 501(C)(3) 10000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS PARENTS STEP AHEAD 2102 EMPIRE CENTRAL DALLAS TX 75235 262477378 501(C)(3) 25000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS PEI KIDS PREVENTION EDUCATION INC 231 LAWRENCEVILLE ROAD LAWRENCEVILLE NJ 08542 222594219 501(C)(3) 10248 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS PRINCETON ADULT SCHOOL PO BOX 701 PRINCETON NJ 08542 221924079 501(C)(3) 5000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS PRINCETON HEALTHCARE SYSTEM FOUNDATION 5 PLAINSBORO ROAD SUITE 365 PLAINSBORO NJ 08536 222225911 501(C)(3) 5000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS PRINCETON MERCER REGIONAL CHAMBER 600 ALEXANDER ROAD SUITE 3-2 PRINCETON NJ 08540 210722138 501(C)(3) 5500 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS SHABAZZ HIGH SCHOOL 80 JOHNSON AVE NEWARK NJ 07108 GOVERNMENT ENTITY 0 39918 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS SHILOH COMMUNITY DEVELOPMENT CORPORATION (TRENTON FREEDOM SCHOOL) 416 BELLEVUE AVE SUITE 201 TRENTON NJ 08618 123799161 501(C)(3) 10000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS THE COLLEGE OF NEW JERSEY 2000 PENNINGTON ROAD EWING NJ 08618 222797398 501(C)(3) 15000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS NATIONAL STATE TEACHERS OF THE YEAR INC 614 S 4TH STREET SUITE 335 PHILADELPHIA PA 19147 481035353 501(C)(3) 40000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS TRENTON PUBLIC SCHOOLS 108 NORTH CLINTON AVE TRENTON NJ 08609 GOVERNMENT ENTITY 0 12000 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS UIH FAMILY PARTNERS 4 N BROAD STREET 2ND FLOOR SUITE 2R TRENTON NJ 08608 210635048 501(C)(3) 10000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS WATERSHED INSTITUTE INC 31 TITUS MILL ROAD PENNINGTON NJ 08534 210649717 501(C)(3) 10264 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS YOUNG AUDIENCES OF NEW JERSEY 200 FORRESTAL ROAD PRINCETON NJ 08540 237384991 501(C)(3) 36190 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS YOUNG PEOPLES PROJECT INC 99 BISHOP ALLEN DRIVE CAMBRIDGE MA 02139 640939004 501(C)(3) 10000 0 SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS YOUNG WOMENS CHRISTIAN ASSOCIATION OF PRINCETON NJ (YWCA) 59 PAUL ROBESON PLACE PRINCETON NJ 08540 210635056 501(C)(3) 18194 7317 FMV CATERING AND SUPPLIES SUPPORT OF LOCAL COMMUNITY EDUCATIONAL PROGRAMS 44 0 HISTORICALLY BLACK COLLEGES AND UNIVERSITIES PRESIDENTIAL SCHOLARSHIP 12 118398 TRENTON CENTRAL HIGH SCHOOL SCHOLARSHIP 15 112050 RESEARCH FELLOWSHIPS 1 30500 PART I, LINE 2: EDUCATIONAL TESTING SERVICE REQUIRES APPLICANTS FOR SCHOLARSHIPS TO PROVIDE TRANSCRIPTS AND OTHER INFORMATION UPON WHICH THEY ARE EVALUATED. DURING FISCAL YEAR 2019, SCHOLARSHIP FUNDS WERE MADE PAYABLE DIRECTLY TO THE UNIVERSITY OR COLLEGE THAT THE AWARDED RECIPIENT ATTENDS OR MADE PAYABLE TO BOTH THE INSTITUTION AND THE STUDENT. THE ETS CENTER FOR ADVOCACY AND PHILANTHROPY, A DIVISION OF ETS THAT MANAGES ETS'S CONTRIBUTIONS, HAS ESTABLISHED CRITERIA FOR MAKING GRANTS AND OTHER CONTRIBUTIONS. IT ALSO MAINTAINS RECORDS TO SUBSTANTIATE THE AMOUNT OF GRANTS OR IN-KIND CONTRIBUTIONS, AS WELL AS THE GRANTEES ELIGIBILITY FOR THE GRANTS. IRS FORM W-9 IS REQUESTED FROM ALL ORGANIZATIONS TO ASCERTAIN THE LEGAL NAME, EIN OR TAXPAYER IDENTIFICATION NUMBER AND ADDRESS. ETS TYPICALLY MAINTAINS CLOSE CONTACT WITH ITS GRANTEES TO MONITOR THEIR PROGRESS IN THE USE OF FUNDS AND, WHENEVER FEASIBLE, THE EXTENT TO WHICH THE FUNDED PROGRAM MET ITS OBJECTIVES. SMALL CONTRIBUTIONS (UNDER $2,000) ARE SOMETIMES MADE TO 501(C)(3) ORGANIZATIONS TO PROMOTE VOLUNTEERISM AND PHILANTHROPY AMONG EMPLOYEES AT ETS. ETS MONITORS THE USE OF FUNDS IN SEVERAL WAYS: (1) REQUESTS WRITTEN REPORTS ON THE USE OF RESTRICTED FUNDS AND THE ORGANIZATION'S ANNUAL REPORT WHEN THE GRANT IS UNRESTRICTED; (2) FOR SPONSORED EVENTS, SUCH AS CONFERENCES AND WORKSHOPS, ETS REQUESTS PROGRAMS AND OTHER MATERIALS PREPARED FOR THE EVENT; (3) STAFF MEMBERS ATTEND A NUMBER OF SPONSORED EVENTS SO THAT THERE IS DIRECT OBSERVATION; (4) ETS REMAINS IN CONTACT WITH GRANT RECIPIENTS VIA EMAIL, PHONE CALLS AND FACE-TO-FACE MEETINGS; AND (5) ETS OBTAINS COPIES OF ANY RESEARCH PAPERS THAT MIGHT BE DEVELOPED AS A RESULT OF THE GRANT. X X X 1 1 X X X X 1 1 0 0 0 1 0 1 0 MACDONALD WALTER B PRESIDENT 677421 0 422500 0 208586 0 24750 0 17217 0 1350474 0 0 0 BAILEY DIANE A SVP, PRODUCTION & DELIVERY 299113 0 193213 0 44372 0 40122 0 16332 0 593152 0 0 0 BASEHORE JOHN VP & TREASURER 213475 0 130250 0 65052 0 32154 0 19148 0 460079 0 0 0 DONADO YVETTE SVP & CHIEF ADMIN OFFICER 54193 0 80813 0 373917 0 7385 0 4799 0 521107 0 0 0 DRAPER JR WILLIAM C VP & COO COLLEGE BOARD 240302 0 139125 0 49921 0 33338 0 2650 0 465336 0 0 0 ERCIKAN-ALPER KADRIYE VP STAT ANALYSIS & PSYCH RSRCH 202792 0 125000 0 50957 0 29150 0 25057 0 432956 0 0 0 FARNUM MARISA VP-ASSESSMENT DEVELOPMENT 204719 0 112500 0 56849 0 20769 0 17440 0 412277 0 0 0 FREDDO MICHAEL J VP & CONTROLLER 200891 0 135438 0 103164 0 20736 0 17517 0 477746 0 0 0 GILBERTSON BRUCE M VP FACILITIES & REAL ESTATE 212033 0 125250 0 61576 0 19939 0 0 0 418798 0 75130 0 GORIN JOANNA VP RESEARCH 226392 0 135713 0 110317 0 32552 0 18048 0 523022 0 0 0 HAYON JACK SVP & CHIEF FINANCIAL OFFICER 355015 0 280525 0 132742 0 24750 0 25322 0 818354 0 0 0 HERNANDEZ SANDRA VP-FINANCE 230778 0 142313 0 41656 0 23633 0 16717 0 455097 0 0 0 HOBSON DAVID VP & CORPORATE SECRETARY 196773 0 132000 0 84373 0 19149 0 16812 0 449107 0 0 0 HUNT DAVID EXECUTIVE VP & COO 378557 0 318750 0 57061 0 52741 0 26590 0 833699 0 0 0 JOHNSON-GREGORY SHEREE L VP ASSOC GENERAL COUNSEL & CDO 260040 0 134875 0 70190 0 23157 0 23691 0 511953 0 0 0 LAWRENCE IDA M SR VP-RESEARCH & DEVELOPMENT 312110 0 178375 0 72940 0 23581 0 18224 0 605230 0 0 0 LESTER SARA VP HUMAN RESOURCES & LEARNING 200572 0 6337 0 41000 0 28770 0 3400 0 280079 0 0 0 NELSON SCOTT F SVP & CHIEF MARKETING OFFICER 286425 0 183013 0 49116 0 43775 0 25057 0 587386 0 0 0 NETTLES MICHAEL T SVP-CTR POLICY EVAL & RSRCH 264838 0 156125 0 66277 0 22255 0 26087 0 535582 0 0 0 OSWALD JOHN VP CLIENT RELATIONS & OUTREACH 276281 0 101588 0 25363 0 24750 0 16548 0 444530 0 0 0 PAYNE DAVID G VP & COO GLOBAL EDUCATION 263501 0 154750 0 79575 0 22279 0 24803 0 544908 0 0 0 PFUND REBECCA CHIEF INFORMATION OFFICER 253410 0 192500 0 42399 0 38008 0 24996 0 551313 0 0 0 POTE STEPHEN K VP CHIEF QUALITY OFFICER 119498 0 118013 0 317564 0 12466 0 7711 0 575252 0 78880 0 ROBINSON DIERDRE VP & CLO SWS 8550 0 0 0 425546 0 831 0 369 0 435296 0 0 0 ROCKEY ANNE F VP - OPERATIONS 245113 0 127250 0 10946 0 33584 0 16592 0 433485 0 0 0 SCHROEDER GLENN C SVP & GENERAL COUNSEL 344235 0 240175 0 99576 0 24641 0 17532 0 726159 0 0 0 WAKEMAN DANIEL VP & CHIEF INFORMATION OFFICER 207798 0 110000 0 128431 0 20257 0 25889 0 492375 0 81269 0 WEAVER SCOTT V VP CHIEF STRATEGY OFFICER 264079 0 161013 0 82573 0 37468 0 26480 0 571613 0 0 0 WILLIAMSON DAVID VP NEW PRODUCT DEVELOPMENT 209257 0 127188 0 20903 0 29152 0 23940 0 410440 0 0 0 HUDE TRACY VP - FINANCE (AS OF 09/14/19) 197078 0 67208 0 24978 0 26928 0 1608 0 317800 0 0 0 BENNETT RANDY E FREDERIKSEN CHAIR ASSESSMENT 308749 0 33781 0 28867 0 23771 0 8864 0 404032 0 0 0 CHAN PETER GNRL MGR, APPLICATION DEVELOP 230629 0 66342 0 45089 0 31428 0 25057 0 398545 0 0 0 KIRSCH IRWIN TYLER CHAIR LG SCALE ASSESSMEN 275596 0 77058 0 28425 0 22505 0 17764 0 421348 0 0 0 MCHALE FREDERICK GENERAL MANAGER, STAT ANALYSIS 241502 0 61876 0 18758 0 22119 0 16332 0 360587 0 0 0 PATANELLARICHARD J CHIEF FINANCIAL ADVISOR 211486 0 33000 0 96725 0 20868 0 18982 0 381061 0 0 0 VALDES GUADALUPE FORMER TRUSTEE 11750 0 0 0 0 0 0 0 0 0 11750 0 0 0 WINCKLER GEORG FORMER TRUSTEE 26000 0 0 0 0 0 0 0 0 0 26000 0 0 0 ELLIOTT THOMAS J FORMER VP & CLO SWS 113284 0 4073 0 14886 0 12217 0 25825 0 170285 0 0 0 KERINS NANCY J FORMER SVP-PROD & DELIVERY 0 0 0 0 356956 0 0 0 0 0 356956 0 0 0 LAZER STEPHEN FORMER VP-STUD & TEACH ASSESS 0 0 261563 0 0 0 0 0 0 0 261563 0 0 0 MAZZEO JOHN FORMER VP STAT ANALYSIS & PSYCH 257654 0 22100 0 26342 0 22116 0 0 0 328212 0 0 0 PART I, LINE 1A TAX GROSS-UP PAYMENTS/PERSONAL SERVICES: TWENTY THREE OFFICERS RECEIVED THIS BENEFIT (RELATED TO FINANCIAL PLANNING) DURING 2018. IT WAS TREATED AS TAXABLE COMPENSATION TO THE INDIVIDUALS. HOUSING ALLOWANCE OR RESIDENCE FOR PERSONAL USE: ONE OFFICER RECEIVED THIS BENEFIT DURING 2018. IT WAS TREATED AS TAXABLE COMPENSATION TO THE INDIVIDUAL. PART I, LINE 3 ETS ENGAGES AN EXTERNAL INDEPENDENT EXECUTIVE COMPENSATION CONSULTANT ORGANIZATION ("IECCO") TO REVIEW AND ADVISE ON WORKER COMPENSATION LAWS. FURTHER, THE IECCO PREPARES AN ANNUAL REPORT OF PROPOSED COMPENSATION FOR ETS'S CEO AND OFFICERS EVALUATING THE REASONABLENESS OF THE COMPENSATION, AS DEFINED BY THE IRS INTERMEDIATE SANCTION RULES. THE REPORT ASSESSES THE RELEVANT LABOR MARKET FOR OFFICER ROLES USING NATIONAL DATA FROM COMPARABLE ORGANIZATIONS OF SIMILAR SIZE AND COMPLEXITY. THEN, CONSISTENT WITH THE COMPOSITION OF THE LABOR MARKETS IN WHICH ETS COMPETES FOR EXECUTIVE TALENT, APPROPRIATE COMPARATIVE ANALYSES ARE DEVELOPED FROM BOTH NOT-FOR-PROFIT AND FOR-PROFIT DATA. FINALLY, THE IECCO PREPARES A LETTER OF REASONABLENESS REGARDING THE ANALYSES OF OFFICER PAY CONSISTENT WITH GOVERNMENT GUIDELINES WHICH IS PRESENTED TO THE COMMITTEE ON GOVERNANCE AND HUMAN RESOURCES AND THE BOARD FOR REVIEW, COMMENT AND APPROVAL. PART I, LINES 4A-B LINE 4A: FOUR OFFICERS, YVETTE DONADO, STEPHEN POTE, DIERDRE ROBINSON AND NANCY KERINS RECEIVED SEVERANCE PAYMENTS OF $337,500, $123,462, $370,000 AND $351,000 RESPECTIVELY, FROM THE ORGANIZATION IN 2018. LINE 4B: OFFICERS AND OTHER EXECUTIVES PARTICIPATED IN A SUPPLEMENTAL NON-QUALIFIED RETIREMENT PLAN UNDER 457(F). THE NON-VESTED PORTION OF EACH OFFICER'S DEFERRED COMPENSATION IS REPORTED IN COLUMN C. THE VESTED PORTION OF EACH OFFICER'S DEFERRED COMPENSATION IS REPORTED IN COLUMNS B & F. IN 2018, NANCY KERINS RECEIVED A $10,693 PAYMENT FROM THE 457(F) PLAN. PART I, LINE 6 ETS INVESTMENT COMPENSATION PROGRAMS ARE VARIABLE CASH COMPENSATION PROGRAMS TO PROVIDE EMPLOYEES EARNINGS OPPORTUNITIES IN ADDITION TO BASE PAY. THESE VARIABLE COMPENSATION COMPONENTS RECOGNIZE AND REWARD BASED ON INDIVIDUAL AND ETS PERFORMANCE. PAYMENT UNDER THESE PROGRAMS ARE REALIZED WHEN ETS MEETS AND ACHIEVES ITS ANNUAL PERFORMANCE TARGETS FOR THE YEAR, AS DETERMINED BY A HOLISTIC ASSESSMENT OF METRICS FROM ETS'S BALANCED SCORECARD OBJECTIVES INCLUDING FINANCIAL, OPERATIONAL, CUSTOMER AND GROWTH GOALS. PART I, LINE 7 ETS INVESTMENT COMPENSATION PROGRAMS ARE VARIABLE CASH COMPENSATION PROGRAMS TO PROVIDE EMPLOYEES EARNINGS OPPORTUNITIES IN ADDITION TO BASE PAY. THESE VARIABLE COMPENSATION COMPONENTS RECOGNIZE AND REWARD BASED ON INDIVIDUAL AND ETS PERFORMANCE. PAYMENT UNDER THESE PROGRAMS ARE REALIZED WHEN ETS MEETS AND ACHIEVES ITS ANNUAL PERFORMANCE TARGETS FOR THE YEAR, AS DETERMINED BY A HOLISTIC ASSESSMENT OF METRICS FROM ETS'S BALANCED SCORECARD OBJECTIVES INCLUDING FINANCIAL, OPERATIONAL, CUSTOMER AND GROWTH GOALS. TERESA M SANCHEZ-LAZER FAMILY MEMBER OF STEPHEN LAZER, FORMER OFFICER 206099 SALARY AND BENEFITS 0 IRENE ELLIOTT FAMILY MEMBER OF THOMAS J. ELLIOTT, FORMER OFFICER 87192 SALARY AND BENEFITS 0 RAYMOND GREGORY FAMILY MEMBER OF SHEREE L JOHNSON-GREGORY, OFFICER 49708 SALARY AND BENEFITS 0 RICHARD HUDE FAMILY MEMBER OF TRACY HUDE, OFFICER 103399 SALARY AND BENEFITS 0 FORM 990, PART VI, SECTION B, LINE 11B ALL TRUSTEES RECEIVE A COPY OF FORM 990 FOR REVIEW AND INFORMATION PRIOR TO BOARD OF TRUSTEES MEETING. FORM 990 IS REVIEWED BY THE BOARD OF TRUSTEES' AUDIT COMMITTEE AND THE FULL BOARD OF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 12C THE TRUSTEES OF EDUCATIONAL TESTING SERVICE, INDIVIDUALLY AND COLLECTIVELY, ARE EXPECTED TO ACT IN ACCORDANCE WITH THE HIGHEST STANDARDS OF ETHICAL BEHAVIOR. ANNUALLY, THE AUDIT COMMITTEE REVIEWS THE ETS CODE OF ETHICS FOR MEMBERS OF THE BOARD OF TRUSTEES. SUBSEQUENTLY, EACH TRUSTEE RECEIVES A COPY OF THE CODE OF ETHICS AND SIGNS A STATEMENT AGREEING TO ABIDE BY THE CODE. THE CODE OF ETHICS STATES A CLEAR POLICY ON CONFLICTS OF INTEREST. ETS ALSO HAS A CONFLICT OF INTEREST POLICY THAT IS SUPPLIED TO THE BOARD OF TRUSTEES, OFFICERS AND KEY EMPLOYEES. THE TRUSTEES ANNUALLY COMPLETE A TRUSTEE DISCLOSURE STATEMENT AND A TRUSTEE AFFILIATION FORM. THE DISCLOSURE STATEMENT REQUESTS INFORMATION REGARDING WHETHER ANY TRUSTEE HAS MATERIAL FINANCIAL INTEREST TO WHICH ETS IS A PARTY. THE AFFILIATION FORM REQUESTS INFORMATION REGARDING THE TRUSTEES EMPLOYMENT AS A STAFF MEMBER OR AS A CONSULTANT OF ETS, AS WELL AS THEIR AFFILIATION WITH OTHER ORGANIZATIONS. THE CORPORATE SECRETARY REVIEWS THESE DISCLOSURES FOR POTENTIAL CONFLICTS OR THE POTENTIAL APPEARANCE OF A CONFLICT. SHOULD A SITUATION BE DISCLOSED THAT PRESENTS A POTENTIAL CONFLICT, THE CORPORATE SECRETARY WOULD SEEK RESOLUTION WITH THE INVOLVEMENT OF THE APPROPRIATE AUTHORITY SUCH AS THE AUDIT COMMITTEE OR THE ETS GENERAL COUNSEL AND CHIEF ETHICS OFFICER. INTRINSIC TO THE POLICY IS A TRUSTEE RECUSING THEMSELVES ON CERTAIN MATTERS OR RESIGNING FROM THE BOARD TO PREVENT A CONFLICT OF INTEREST OR AVOID AN APPEARANCE OF A CONFLICT OF INTEREST. FAILURE TO RESPOND TO THE ANNUAL DISCLOSURE PROCESS WOULD RESULT IN THE REQUISITE FOLLOW UP BY THE CORPORATE SECRETARY. CANDIDATES FOR TRUSTEES RECEIVE GENERAL INFORMATION ON RELEVANT ETS POLICIES, SUCH AS THE CODE OF ETHICS AND CONFLICT OF INTEREST AND ARE REQUIRED TO COMPLETE THE AFFILIATIONS FORM PRIOR TO STANDING FOR ELECTION. TRUSTEES CAN OBTAIN ASSISTANCE WITH THE INTERPRETATION OR ADMINISTRATION OF THE CODE OF ETHICS CONFLICTS POLICY OR PROCEDURES FROM THE CORPORATE SECRETARY OR THE GENERAL COUNSEL AND CHIEF ETHICS OFFICER. TRUSTEES RECEIVE THE COMPLETE POLICY STATEMENTS UPON THEIR ELECTION. EDUCATIONAL TESTING SERVICE REQUIRES THAT EMPLOYEES, INCLUDING OFFICERS, WHO ARE UNCERTAIN WHETHER AN OUTSIDE ACTIVITY COMES WITHIN THE SCOPE OF ETS'S CODE OF ETHICS OR CONFLICT OF INTEREST POLICY, DISCUSS THE MATTER WITH THEIR SUPERVISORS. EMPLOYEES WISHING TO ENGAGE IN OUTSIDE ACTIVITIES MUST SUBMIT AN OUTSIDE ACTIVITIES REPORT TO THEIR DIVISION VICE PRESIDENT FOR REVIEW AND APPROVAL PRIOR TO ENGAGING IN THE ACTIVITY. EMPLOYEES MUST SUBMIT AN AMENDED REPORT WHENEVER THE ACTIVITY CHANGES. THE REPORT IS REVIEWED AND THE EMPLOYEE IS INFORMED WHETHER THE REQUEST IS APPROVED. THE EMPLOYEE'S DIVISION VICE PRESIDENT AND THE VICE PRESIDENT OF HUMAN RESOURCES (HR) RECEIVE A COPY OF ALL SUCH REPORTS REGARDLESS OF WHETHER THE REQUEST IS APPROVED. ANY SITUATION INVOLVING A POTENTIAL CONFLICT OF INTEREST MUST BE REVIEWED BY HR TO VERIFY THAT NO CONFLICT EXISTS. ANY EMPLOYEE WHO ACQUIRES INFORMATION THAT GIVES THE EMPLOYEE REASON TO BELIEVE THAT ANY EMPLOYEE, OFFICER OR TRUSTEE IS ENGAGED IN CONDUCT THAT IS PROHIBITED BY ETS'S CODE OF ETHICS OR SUBJECT TO ETS'S CONFLICT OF INTEREST POLICY, OR THAT ANY SALES REPRESENTATIVE, DISTRIBUTOR OR OTHER PERSON OR FIRM REPRESENTING ETS IN ANY TRANSACTION IS ENGAGED IN THE TYPE OF CONDUCT (WHETHER OR NOT IN CONNECTION WITH A TRANSACTION INVOLVING ETS OR ITS PRODUCTS) WHICH, IF ENGAGED IN BY AN EMPLOYEE, WOULD VIOLATE THIS POLICY IS REQUIRED TO REPORT THIS INFORMATION IMMEDIATELY. ALL COMPLAINTS REGARDING POTENTIAL CONFLICTS OF INTEREST ARE INVESTIGATED PROMPTLY, AND WHERE NECESSARY, IMMEDIATE AND APPROPRIATE ACTION IS TAKEN TO STOP AND REMEDY ANY SUCH CONDUCT. ANY EMPLOYEE OR OFFICER, FOUND IN VIOLATION OF THIS POLICY WILL BE SUBJECT TO DISCIPLINARY ACTION, UP TO AND INCLUDING TERMINATION, DEPENDING UPON THE SEVERITY OF THE VIOLATION. THIS POLICY IS REVIEWED ON AN ANNUAL BASIS BY THE VICE PRESIDENT OF HUMAN RESOURCES. ALL ETS EMPLOYEES RECEIVE A COPY OF THE CODE OF ETHICS ON AN ANNUAL BASIS. THE ANNUAL REVIEW AND SIGNATURE INDICATING THEIR AGREEMENT TO COMPLY WITH THE POLICY IS MANDATORY AS PART OF EMPLOYMENT WITH ETS. FORM 990, PART VI, SECTION B, LINE 15 ETS ENGAGES AN EXTERNAL INDEPENDENT EXECUTIVE COMPENSATION CONSULTANT ORGANIZATION (IECCO) TO REVIEW AND ADVISE ON WORKER COMPENSATION LAWS. FURTHER, THE IECCO PREPARES AN ANNUAL REPORT OF PROPOSED COMPENSATION FOR ETS'S CEO AND OFFICERS EVALUATING THE REASONABLENESS OF THE COMPENSATION, AS DEFINED BY THE IRS INTERMEDIATE SANCTION RULES. THE REPORT ASSESSES THE RELEVANT LABOR MARKET FOR OFFICER ROLES USING NATIONAL DATA FROM COMPARABLE ORGANIZATIONS OF SIMILAR SIZE AND COMPLEXITY. THEN, CONSISTENT WITH THE COMPOSITION OF THE LABOR MARKETS IN WHICH ETS COMPETES FOR EXECUTIVE TALENT, APPROPRIATE COMPARATIVE ANALYSES ARE DEVELOPED FROM BOTH NOT-FOR-PROFIT AND FOR-PROFIT DATA. FINALLY, THE IECCO PREPARES A LETTER OF REASONABLENESS REGARDING THE ANALYSES OF OFFICER PAY CONSISTENT WITH GOVERNMENT GUIDELINES WHICH IS PRESENTED TO THE COMMITTEE ON GOVERNANCE AND HUMAN RESOURCES AND THE BOARD FOR REVIEW, COMMENT AND APPROVAL. FORM 990, PART VI, SECTION C, LINE 19 ETS DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, OR FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G TEST ADMIN AND CONSULTANTS: PROGRAM SERVICE EXPENSES 365,149,190. MANAGEMENT AND GENERAL EXPENSES 32,201,271. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 397,350,461. SUBCONTRACTRACTING COSTS: PROGRAM SERVICE EXPENSES 156,784,685. MANAGEMENT AND GENERAL EXPENSES 10,924,107. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 167,708,792. FORM 990, PART XI, LINE 9: CUMULATIVE EFFECT OF PENSION ADJUSTMENT -9,069,549. ROUNDING 399. EQUITY IN EARNINGS REPORTED SEPARATELY -77,938,244. ADJUSTED PRIOR YEAR RECLASS TAX RETURN ONLY -847,901. 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