2019-03-12T16:43:28-05:00 2018-09-30 541498950 RENNER AND COMPANY CPA PC 700 NORTH FAIRFAX ST SUITE 400 ALEXANDRIA VA 22314 990 2017-10-01 521149668 VIETNAM VETERANS MEMORIAL FUND INC VIET 2023930090 1235 S CLARK ST NO 910 ARLINGTON VA 22202 JIM KNOTTS CHIEF EXECUTIVE OFFICER 2023930090 2019-03-07 1 JOAN MRENNER CPA P00456765 7035351200 75.145.91.221 2019-03-07 16:54:49 ES P C55D76BAF855BA25AD5CEDE3C69CF328FF7031AE 33A2E9071CA8B8FD199D13D73F23E08078367532 2017 2019-02-21 02:37:17Z JIM KNOTTS 1235 SOUTH CLARK STREET SUITE 910 ARLINGTON VA 22202 35738228 0 X WWW.VVMF.ORG X 1979 DC TO HONOR AND PRESERVE THE LEGACY OF SERVICE AND EDUCATE ALL GENERATIONS ABOUT THE IMPACT OF THE VIETNAM WAR. X 7 7 25 35 0 8450 16502382 6346565 274000 293000 425635 2017675 247318 55472 17449335 8712712 0 0 0 0 1745336 1573161 361584 361575 1479419 5702756 5738559 7809676 7673295 9639659 1039417 41213053 19652122 860273 8691842 40352780 10960280 X TO HONOR AND PRESERVE THE LEGACY OF SERVICE AND EDUCATE ALL GENERATIONS ABOUT THE IMPACT OF THE VIETNAM WAR. 0 0 3810796 THE ORGANIZATION PRESERVES THE LEGACY OF THE MEMORIAL AND PROMOTES HEALING THROUGH PUBLIC OUTREACH, PROMOTING VISITATION OF THE MEMORIAL BY THE GENERAL PUBLIC. THE ORGANIZATION PROVIDES INFORMATION ABOUT THE HISTORY OF THE MEMORIAL AND RESPONDS TO QUESTIONS FROM POTENTIAL VISITORS. THE ORGANIZATION MAINTAINS A COMMEMORATIVE WEB SITE CALLED THE WALL OF FACES, THAT ALLOWS FAMILIES, FRIENDS AND VETERANS TO POST REMEMBRANCES OF THOSE WHOSE NAMES ARE INSCRIBED ON THE MEMORIAL, EXTENDING THE HEALING POWER AND EMOTIONAL IMPACT OF THE WALL TO MILLIONS OF PEOPLE THROUGH THE INTERNET. THE ORGANIZATION IS ALSO CONDUCTING A NATIONAL CALL FOR PHOTOS TO PRESERVE THE MEMORY OF THOSE WHOSE NAMES ARE INSCRIBED ON THE MEMORIAL. THE PHOTOS WILL BE DISPLAYED IN THE WALL OF FACES. 414162 THE ORGANIZATION PLANS, ORGANIZES AND CONDUCTS A NUMBER OF CEREMONIES AT THE MEMORIAL AND ELSEWHERE TO BRING PEOPLE TOGETHER TO REMEMBER AND HONOR THE MEN AND WOMEN WHO SERVED IN THE VIETNAM WAR AND THOSE WHO DIED. CEREMONIES ARE CONDUCTED EACH YEAR ON MEMORIAL DAY, VETERANS DAY, AND FATHERS DAY TO RECOGNIZE, REMEMBER AND HONOR THOSE WHO SERVED AND DIED AS WELL AS TO BRING HEALING TO THEIR FAMILIES, THEIR FRIENDS AND OUR NATION. 655006 293000 THE ORGANIZATION PROMOTES HEALING AND PROVIDES EDUCATION ABOUT THE IMPACT OF THE VIETNAM WAR THROUGH ITS TRAVELING MOBILE EXHIBIT CALLED "THE WALL THAT HEALS". THE ORGANIZATION EXHIBITS A HALF-SCALE REPLICA OF THE VIETNAM VETERANS MEMORIAL IN CITIES AND LOCATIONS THROUGHOUT THE UNITED STATES, MAKING IT POSSIBLE FOR MILLIONS OF INDIVIDUALS WHO ARE UNABLE TO TRAVEL TO WASHINGTON, D.C. TO RECOGNIZE, REMEMBER AND HONOR THOSE WHO SERVED AND DIED, AND TO EXPERIENCE A CONNECTION WITH LOST COMRADES AND LOVED ONES. THE TRAVELING MEMORIAL ALSO INCLUDES AN EDUCATIONAL MUSEUM AND AN INFORMATION CENTER TO ASSIST VISITORS IN FINDING NAMES ON THE MEMORIAL. THIS YEAR, THE ORGANIZATION BROUGHT THE WALL THAT HEALS AND THE TRAVELING MUSEUM AND INFORMATION CENTER TO 39 LOCATIONS IN THE UNITED STATES AND BROUGHT THE MUSEUM COMPONENT TO TWO ADDITIONAL LOCATIONS REACHING THOUSANDS OF VISITORS. 131287 THE ORGANIZATION WORKS IN COOPERATION WITH THE NATIONAL PARK SERVICE TO PROVIDE FOR SPECIAL MAINTENANCE NEEDS OF THE VIETNAM VETERANS MEMORIAL IN WASHINGTON, D.C., INCLUDING THE ADJACENT THREE SERVICEMAN STATUE, IN MEMORY PLAQUE, FLAGPOLE AND THE THREE-ACRE SITE WHERE THE VIETNAM VETERANS MEMORIAL IS LOCATED, TO MAINTAIN THE SITE'S FUNCTION AS A PLACE OF REFLECTION ON THE VIETNAM WAR, A PLACE OF HONOR, RECOGNITION AND REMEMBRANCE OF THOSE WHO SERVED AND THOSE WHO DIED, A PLACE OF SPIRITUAL CONNECTION WITH LOST COMRADES AND LOVED ONES, AND A SYMBOL OF HEALING FOR OUR NATION. THE MEMORIAL HAS BEEN VISITED BY MORE THAN 90 MILLION PEOPLE, MAKING IT ONE OF THE MOST VISITED MEMORIALS ON THE NATIONAL MALL.THIS YEAR 5.07 MILLION PEOPLE VISITED THE VIETNAM VETERANS MEMORIAL IN WASHINGTON D.C. 184262 THE ORGANIZATION EDUCATES STUDENTS ABOUT THE IMPACT OF THE VIETNAM WAR AND PRESERVES THE LEGACY OF THE VIETNAM VETERANS MEMORIAL THROUGH ITS PROGRAMS RELATED TO THE EDUCATION OF STUDENTS AND TEACHERS REGARDING THE VIETNAM WAR, THE VIETNAM VETERANS MEMORIAL AND THE MEMORIAL'S LEGACY IN CULTURE AND SOCIETY. THE ORGANIZATION'S EDUCATION PROGRAMS REACH TEACHERS AND STUDENTS FROM GRADES 7 TO 12 AS WELL AS HIGHER EDUCATION. THE HOMETOWN HEROES EDUCATION PROGRAM, DEVELOPED TO PROMOTE A GREATER UNDERSTANDING OF THE VIETNAM WAR, THE VIETNAM ERA, AND THE PERSONAL SACRIFICE OF THE INDIVIDUALS WHOSE NAMES ARE INSCRIBED ON THE MEMORIAL, PROVIDES PROGRAM INFORMATION TO SCHOOLS AND COMMUNITY ORGANIZATIONS ENCOURAGING STUDENTS TO WRITE BIOGRAPHIES OF MEN AND WOMEN FROM THEIR COMMUNITY WHOSE NAMES ARE INSCRIBED ON THE MEMORIAL. THE INFORMATION GATHERED BY THE STUDENTS WILL BE INCLUDED IN THE EDUCATION CENTER BEING BUILT. 244099 THE FUND WAS IN THE PROCESS OF DESIGNING AN EDUCATION CENTER, WHICH WOULD HAVE BEEN LOCATED ON THE NATIONAL MALL ADJACENT TO THE VIETNAM VETERANS MEMORIAL. DIRECT AND INDIRECT COSTS ASSOCIATED WITH THE ARCHITECTURAL AND PRE-CONSTRUCTION SERVICES, CURATOR SERVICES, AND LAYOUT AND EXHIBIT DESIGN OF THE EDUCATION CENTER WERE CAPITALIZED. EFFECTIVE SEPTEMBER 21, 2018, THE BOARD OF DIRECTORS TERMINATED THE EFFORTS TO CONSTRUCT A PHYSICAL BUILDING ON THE NATIONAL MALL AND SHIFTED THEIR FOCUS TO CONTINUE EFFORTS OF BUILDING ONLINE RESOURCES, DEVELOPING HAND-HELD TECHNOLOGY, EDUCATION STAFF, MOBILE EXHIBITS AND PARTNERSHIPS. AS A RESULT, DURING THE YEAR ENDED SEPTEMBER 30, 2018, THE FUND DISPOSED OF THE CAPITALIZED COST RELATING TO THE CONSTUCTION OF THE EDUCATION CENTER TOTALING $8,437,271. DURING THE FISCAL YEAR ENDED 9/30/18, THE FUND ALSO INCURRED PROGRAM RELATED COSTS OF THE EDUCATION CENTER OF $244,099. 131058 VVMF'S IN MEMORY PROGRAM HONORS VIETNAM VETERANS WHOSE LIVES WERE CUT SHORT AS A RESULT OF THEIR SERVICE IN VIETNAM, BUT ARE NOT ELIGIBLE FOR INSCRIPTION ON THE WALL UNDER DEPARTMENT OF DEFENSE GUIDELINES. EXAMPLES OF CAUSES OF DEATH THAT FIT THE CRITERIA FOR INCLUSION IN THE PROGRAM INCLUDE: EXPOSURE TO AGENT ORANGE, PTSD/SUICIDE, CANCER, DIABETES, AND HEART ATTACK. THE IN MEMORY PROGRAM ALSO CONDUCTS READING OF THE NAMES AND IN MEMORY OF EVENTS. 95886 OUTREACH 786592 5666556 1 0 0 1 0 0 0 0 0 1 1 0 0 1 1 1 1 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 26 0 25 1 1 1 0 0 0 0 1 1 0 0 0 0 X 7 7 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 AL AK AZ AR CA CT DC FL GA HI IL IA KS KY LA ME MD MA MI MN MS MO MT NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN UT VA WV WI WY X X THE ORGANIZATION 2023930090 1235 S CLARK STREET SUITE 910 ARLINGTON VA 22202 JOHN C DIBBLE CHAIRMAN 1.00 X X 0 0 0 HARRY G ROBINSON III FAIA AICP DIRECTOR 1.00 X 0 0 0 JOHN O WOODS JR TREASURER 1.00 X X 0 0 0 JANIS NARK DIRECTOR 1.00 X 0 0 0 MICHAEL J NARDOTTI JR DIRECTOR 1.00 X 0 0 0 ALAN BUCKELEW DIRECTOR 1.00 X 0 0 0 WILLIAM F MURDY DIRECTOR 1.00 X 0 0 0 ROBERT M KIMMITT FORMER DIRECTOR THRU JULY 2018 0.00 X 0 0 0 JIM KNOTTS PRESIDENT, CEO & COO 50.00 X 275862 0 29054 VIKTORAS ZIKAS CHIEF DEVELOPMENT OFFICER 40.00 X 219301 0 28445 JAN SCRUGGS PRESIDENT UNTIL 6/30/15 0.00 X 228175 0 0 723338 0 57499 3 1 1 0 ROBBINSKERSTEN DIRECT LLC 201 SUMMER STREET PO BOX 5838 HOLLISTON MA 01746 DIRECT MAIL CONSULTING 361575 RENNER AND COMPANY CPA PC 700 NORTH FAIRFAX STREET ALEXANDRIA VA 22314 ACCOUNTING SERVICES 259023 DATA MANAGEMENT INC 160 STONE STREET PO BOX 2 STONEVILLE NC 27048 MANAGEMENT OF DIRECT MAIL DATA 186205 DIRECT MAIL PROCESSORS 1150 CONRAD COURT HAGERSTOWN MD 21740 CAGING SERVICES 178781 CORP PRESS 9700 PHILADEPHIA COURT LANHAM MD 20706 DIRECT MAIL SERVICES 133017 5 89316 6257249 6346565 SITE FEES - THE WALL THAT HEAL 900099 293000 293000 293000 817092 817092 90663 90663 28164988 26964405 1200583 1200583 1200583 25920 89316 61111 -35191 -35191 8712712 293000 0 2073147 247131 163107 27184 56840 1032391 681454 107599 243338 14281 14281 194072 655 193417 85286 57479 7656 20151 31589 31589 9342 7967 1375 194549 194549 361575 361575 152894 152894 182796 133726 21603 27467 5000 5000 255126 175240 70921 8965 92157 14370 65655 12132 197444 18873 178571 200227 164793 6429 29005 37862 33199 886 3777 752957 697136 55821 53500 53500 BANK AND MERCHANT SERVI 48584 48584 DIRECT MAIL AND DIGITAL 3421052 2826038 4628 590386 REPAIRS AND MAINTENANCE 59574 58572 1002 AUDIO/VISUAL EXPENSES 28342 28342 15564 600605 -710824 125783 7673295 5666556 527320 1479419 X 3611170 2826038 0 785132 542309 220081 3808457 365718 3754430 41137 211478 268407 977575 447894 68943 529681 19950090 14268903 4427972 87025 8449374 3871170 41213053 19652122 463824 479445 39110 55500 357339 8156897 860273 8691842 X 14886101 6916053 25266679 4044227 200000 0 40352780 10960280 41213053 19652122 X 1039417 -615970 -29815947 X X 0 1 X 1 0 X 4941910 8368454 11127473 16502382 6346565 47286784 4941910 8368454 11127473 16502382 6346565 47286784 47286784 135878 376555 755201 671971 907755 2847360 50134144 2172177 0.94320 0.68870 X 0 7673295 7673295 533665 133416 0 0 540595 521657 525429 533665 2121346 3182019 7317 7317 135149 130414 131357 133416 530336 795504 3948632 251430 131287 4068775 3099204 1005355 155927 3948632 2901466 850 397537 200649 3099204 5293778 -197432 2194970 2901466 4295314 1737170 247040 985749 5293778 1.00000 0 0 91097 64282 26815 886478 383612 502866 529681 SECURITY DEPOSIT 14127 WALL OF FACES 3857043 3871170 DEFERRED RENT 211764 GRANTS TO BE REPAID PER DONOR CONTRACTS 7945133 8156897 X 14106496 -615969 6162648 5546679 8559817 152895 152895 8712712 43498996 6162648 29815948 35978596 7520400 152895 152895 7673295 PART V, LINE 4: THE PURPOSE OF THE ENDOWMENT FUNDS IS TO PROVIDE A SOURCE OF FUNDS TO FURTHER THE MISSION OF THE ORGANIZATION INCLUDING MAINTENANCE OF THE MEMORIAL AND EDUCATION PROGRAMS. PART X, LINE 2: THE FUND IS GENERALLY EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE U.S. INTERNAL REVENUE CODE. IN ADDITION, THE FUND QUALIFIES FOR CHARITABLE CONTRIBUTION DEDUCTIONS AND HAS BEEN CLASSIFIED AS AN ORGANIZATION THAT IS NOT A PRIVATE FOUNDATION. BUSINESS INCOME, WHICH IS NOT RELATED TO EXEMPT PURPOSES, LESS APPLICABLE DEDUCTIONS, IS SUBJECT TO FEDERAL AND STATE CORPORATE INCOME TAXES. THE FUND HAD NO NET UNRELATED BUSINESS INCOME FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018. MANAGEMENT EVALUATED THE FUND'S TAX POSITIONS AND CONCLUDED THAT THE FUND HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS. X X X X X X X 1 ROBBINSKERSTEN DIRECT LLC 201 SUMMER STREET HOLLISTON MA 01746 DIRECT MAIL CONSULTING 0 4949753 361575 4588178 4949753 361575 4588178 AL AK AZ AR CA CO CT DE FL GA HI ID IL IN IA KS KY LA ME MD MA MI MN MS MO MT NE NV NH NJ NM NY NC ND OH OK OR PA RI SC SD TN TX UT VT VA WA WV WI WY MAYA LIN RECEPTION 115236 89316 25920 61111 115236 89316 25920 61111 61111 -35191 SCHEDULE G, PART I, LINE 2B, COLUMN (V) THE AGREEMENTS BETWEEN VVMF AND ROBBINSKERSTEN DIRECT, LLC PROVIDES FOR THE REIMBURSEMENT OF EXPENSES SEPARATE FROM THE PAYMENT OF FEES RELATED TO FUNDRAISING SERVICES. ROBBINSKERSTEN DIRECT, LLC LISTS THESE EXPENSES AS DIFFERENT LINE-ITEMS ON INVOICES TO DISTINGUISH THEM FROM FUNDRAISING SERVICE FEES. PART IV LINE (V) THE ORGANIZATION HAS CONTRACTED WITH ROBBINSKERSTEN DIRECT,LLC, A FUNDRAISING CONSULTANT FOR THE PURPOSE OF BUILDING AND CULTIVATING A QUALITY DONOR CONSTITUENCY AND OBTAINING FOR VIETNAM VETERANS MEMORIAL FUND, THE MAXIMUM POSSIBLE DIRECT RESPONSE GIFT FROM SUCH DONORS. 1 X X 0 1 0 0 0 0 0 0 0 JIM KNOTTS PRESIDENT, CEO & COO 225237 0 50625 0 0 0 13500 0 15554 0 304916 0 0 0 VIKTORAS ZIKAS CHIEF DEVELOPMENT OFFICER 182301 0 37000 0 0 0 11100 0 17345 0 247746 0 0 0 JAN SCRUGGS PRESIDENT UNTIL 6/30/15 0 0 0 0 228175 0 0 0 0 0 228175 0 197075 0 SCHEDULE J, PART 11 (A) THE EXECUTIVE COMMITTEE REVIEWS THE EMPLOYMENT TERMS AND SALARY REQUIREMENTS BASED ON SALARY COMPARISON DATA AND CONTEMPORANEOUS DOCUMENTATION OF THE DECISION IS MADE BY THE COMMITTEE FOR THE PRESIDENT/CEO. THE EXECUTIVE COMMITTEE ALSO APPROVES SALARY REQUIREMENTS OF OTHER STAFF OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. THE EXECUTIVE COMMITTEE MAKES RECOMMENDATIONS TO THE FULL BOARD RELATED TO EXECUTIVE COMPENSATION. THE COMPENSATION PHILOSOPHY OF THE BOARD IS TO PAY AT MARKET RATE FOR BASE SALARY, OFFER COMPETITIVE BENEFITS AS COMPARED TO SIMILAR NONPROFITS, AND TO REWARD EXEMPLARY PERFORMANCE WITH BONUSES BASED ON THE ANNUAL PERFORMANCE REVIEW. SINCE 2014, THE STAFF HAS BEEN REDUCED BY 1/2. THE PRESIDENT AND CEO HAS ASSUMED RESPONSIBILITIES FOR REQUIRED DUTIES FROM SEVERAL OF THESE POSITIONS. IN ADDITION TO HIS PRIMARY DUTIES, THE PRESIDENT AND CEO CURRENTLY SERVES AS CHIEF OPERATING OFFICER, CHIEF INFORMATION OFFICER, AND DIRECT OVERSEER OF THE OUTSOURCED CHIEF FINANCIAL OFFICER AND IN-HOUSE FINANCE STAFF. THE COST AVOIDANCE RELATED TO ASSUMPTION OF THESE ADDITIONAL POSITIONS IS WELL OVER $300,000 ANNUALLY THAT THE ORGANIZATION IS NO LONGER PAYING IN PERSONNEL COSTS. JAN SCRUGGS RETIRED AS PRESIDENT OF VVMF ON JUNE 30, 2015. HE REMAINED A PAID CONSULTANT TO THE BOARD OF DIRECTORS UNTIL JUNE 30, 2018. PAYMENTS TO JAN SCRUGGS IN THE AMOUNT OF $228,175 DURING CALENDAR YEAR 2017 (FISCAL YEAR 2018), AS REFLECTED IN THIS FILING, INCLUDE HIS FINAL DISTRIBUTION FROM A DEFERRED COMPENSATION PLAN AND HIS CONSULTING FEES. CAPITALIZED COSTS IN RELATION TO THE EDUCATION CENTER CONSTRUCTION IN PROGRESS DUE TO TERMINATION OF THE PROJECT 2018-09-30 8435271 COST GRANTS REPAID PER DONOR CONTRACT 2018-09-30 10000000 FAIR MARKET VALUE 350868122 LILLY ENDOWMENT INC 2801 N MERIDIAN STREET INDIANAPOLIS IN 46208 501 (C) (3) GRANTS TO BE REPAID PER DONOR CONTRACT- GRANTS PAYABLE TO KOREA 2018-09-30 4325133 FAIR MARKET VALUE REPUBLIC OF KOREA 9 DOUM 4-RO SEJONG KS GRANTS TO BE REPAID PER DONOR CONTRACT- AUSTRALIA 2018-09-30 3300000 FAIR MARKET VALUE DEPARTMENT OF VETERANS AFFAIRS OFFICE OF THE SECRETARY GPO BOX 9998 CANBERRA ACT AS GRANTS TO BE REPAID PER DONOR CONTRACT- TIME WARNER 2018-09-30 200000 FAIR MARKET VALUE TIME WARNER INC ONE TIME WARNER CENTER 11TH FL NEW YORK NY 100198016 GRANTS TO BE REPAID PER DONOR CONTRACT- SEMINOLE TRIBE OF FLORIDA 2018-09-30 120000 FAIR MARKET VALUE SEMINOLE TRIBE OF FLORIDA 6300 STIRLING ROAD HOLLYWOOD FL 33024 0 0 0 0 SCHEDULE N, PART II THE FUND WAS IN THE PROCESS OF DESIGNING AN EDUCATION CENTER, WHICH WOULD HAVE BEEN LOCATED ON THE NATIONAL MALL ADJACENT TO THE VIETNAM VETERANS MEMORIAL. DIRECT AND INDIRECT COSTS ASSOCIATED WITH THE ARCHITECTURAL AND PRE-CONSTRUCTION SERVICES, CURATOR SERVICES, AND LAYOUT AND EXHIBIT DESIGN OF THE EDUCATION CENTER WERE CAPITALIZED. EFFECTIVE SEPTEMBER 21, 2018, THE BOARD OF DIRECTORS TERMINATED THE EFFORTS TO CONSTRUCT A PHYSICAL BUILDING ON THE NATIONAL MALL AND SHIFTED THEIR FOCUS TO CONTINUE EFFORTS OF BUILDING ONLINE RESOURCES, DEVELOPING HAND-HELD TECHNOLOGY, EDUCATION STAFF, MOBILE EXHIBITS AND PARTNERSHIPS. AS A RESULT, DURING THE YEAR ENDED SEPTEMBER 30, 2018, THE FUND DISPOSED OF THE CAPITALIZED COST TOTALING $8,437,271. IN ADDITION, THE FUND BEGAN REPAYING CONTRIBUTIONS RESTRICTED BY CONTRACT TO THE CONSTRUCTION OF THE EDUCATION CENTER IN THE AMOUNT OF $17,945,133 FORM 990, PART VI, SECTION B, LINE 11B A CPA FIRM PREPARES THE FORM 990 AND PROVIDES A DRAFT COPY TO THE CEO FOR REVIEW AND APPROVAL. THE FINANCE COMMITTEE AND MANAGEMENT REVIEW THE RETURN IN DETAIL. A CONFERENCE TAKES PLACE TO DISCUSS THE RETURN AND RESPOND TO QUESTIONS. ANY NECESSARY REVISIONS ARE MADE AND THE REVISED DRAFT IS THEN SENT TO THE BOARD OF DIRECTORS FOR REVIEW PRIOR TO THE 990 BEING ISSUED FINAL. THE CEO THEN APPROVES THE 990 FOR ASSEMBLY AND SIGNS THE FINAL FORM. FORM 990, SCHEDULE A, PART II (SUPPORT SCHEDULE FOR ORGANIZATIONS) P 569 87 27 FORM 990, PART VI, SECTION B LINE 12B A FORMAL PROCESS IS IN PLACE TO IDENTIFY AND REVIEW POTENTIAL CONFLICTS OF INTEREST WITH A REQUIRED ANNUAL DISCLOSURE BY ALL OFFICERS, DIRECTORS, AND KEY EMPLOYEES. ANY POTENTIAL CONFLICTS ARE INVESTIGATED AND RESOLVED AS APPROPRIATE. FORM 990, PART VI, SECTION B, LINE 12C A FORMAL PROCESS IS IN PLACE TO IDENTIFY AND REVIEW POTENTIAL CONFLICTS OF INTEREST WITH A REQUIRED ANNUAL DISCLOSURE. ADDITIONALLY, AN INFORMAL PROCESS IS IN PLACE WHEREBY KEY EMPLOYEES VALIDATE ANY POTENTIAL CONFLICTS DURING THE INDEPENDENT AUDIT. FORM 990, PART VI, SECTION B, LINE 15 THE EXECUTIVE COMMITTEE REVIEWS THE EMPLOYMENT TERMS AND SALARY REQUIREMENTS BASED ON SALARY COMPARISON DATA AND CONTEMPORANEOUS DOCUMENTATION OF THE DECISION IS MADE BY THE COMMITTEE FOR THE PRESIDENT/CEO. THE EXECUTIVE COMMITTEE ALSO APPROVES SALARY REQUIREMENTS OF OTHER STAFF OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION. THE EXECUTIVE COMMITTEE MAKES RECOMMENDATIONS TO THE FULL BOARD RELATED TO EXECUTIVE COMPENSATION. THE COMPENSATION PHILOSOPHY OF THE BOARD IS TO PAY AT MARKET RATE FOR BASE SALARY, OFFER COMPETITIVE BENEFITS AS COMPARED TO SIMILAR NONPROFITS, AND TO REWARD EXEMPLARY PERFORMANCE WITH BONUSES BASED ON THE ANNUAL PERFORMANCE REVIEW. SINCE 2014, THE STAFF HAS BEEN REDUCED BY 1/2. THE PRESIDENT AND CEO HAS ASSUMED RESPONSIBILITIES FOR REQUIRED DUTIES FROM SEVERAL OF THESE POSITIONS. IN ADDITION TO HIS PRIMARY DUTIES, THE PRESIDENT AND CEO CURRENTLY SERVES AS CHIEF OPERATING OFFICER, CHIEF INFORMATION OFFICER,AND DIRECT OVERSEER OF THE OUTSOURCED CHIEF FINANCIAL OFFICER AND IN-HOUSE FINANCE STAFF. THE COST AVOIDANCE RELATED TO ASSUMPTION OF THESE ADDITIONAL POSITIONS IS WELL OVER $300,000 ANNUALLY THAT THE ORGANIZATION IS NO LONGER PAYING IN PERSONNEL COSTS. FORM 990, PART VI, SECTION C, LINE 18 VVMF COMPLIES WITH SECTION 6104 AND MAKES ITS FORM 1023, 990 AND 990-T (IF APPLICABLE) AVAILABLE FOR PUBLIC INSPECTION. FORM 990 AND 990-T (IF APPLICABLE) IS AVAILABLE ON THE VVMF WEBSITE, VVMF.ORG, ON GUIDESTAR.COM, AND ON THE WEBSITE OF THE BETTER BUSINESS BUREAU, WWW.BBB.ORG. FORM 1023 IS AVAILABLE UPON REQUEST FROM THE VVMF OFFICE. FORM 990, PART VI, SECTION C, LINE 19 ALL DOCUMENTS SUCH AS GOVERNING DOCUMENTS, AND A COPY OF VVMF'S FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST FROM THE VVMF OFFICE. FORM 990, PART XI, LINE 9: LOSS ON CAPITALIZED EXPENSES IN RELATION TO THE EDUCATION CENTER CONSTRUCTION PROJECT -8,437,271. PLEDGES CANCELLED DUE TO THE TERMINATION OF THE EDUCATION CENTER CONSTRUCTION PROJECT -3,433,543. GRANTS TO BE REPAID PER DONOR CONTRACT -7,945,133. GRANTS REPAID PER DONOR CONTRACT -10,000,000. FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSIGHT OF THE ORGANIZATION'S AUDIT HAS NOT CHANGED FROM THE PRIOR YEAR.