2015-11-10T19:06:31-06:00 2014-12-31 410746749 CLIFTONLARSONALLEN LLP 4250 N FAIRFAX DRIVE SUITE 1020 ARLINGTON VA 22203 990 2014-01-01 510182830 HUMAN RESOURCE CERTIFICATION INSTITUTE HUMA 5715576700 1725 DUKE STREET NO 700 ALEXANDRIA VA 22314 LISA STOVER CEO 5715576700 2015-11-05 1 AMY FOX P00847276 5712279500 2014 2016-04-25 22:37:26Z AMY SCHABACKER DUFRANE 1725 DUKE STREET NO 700 ALEXANDRIA VA 22314 33958011 0 X WWW.HRCI.ORG X 1979 DC ESTABLISH AND MAINTAIN PROFESSIONAL STANDARDS IN THE FIELD OF HUMAN RESOURCE MANAGEMENT 18 18 67 186 5040 -3775 0 0 14719128 15147490 2305752 2540746 191542 59105 17216422 17747341 750000 1000100 0 0 5478407 5820707 0 0 0 10309512 11300214 16537919 18121021 678503 -373680 41618617 41565286 6428163 7805754 35190454 33759532 THE HR CERTIFICATION INSTITUTE (THE INSTITUTE) DEVELOPS AND DELIVERS CREDENTIALING PROGRAMS TO VALIDATE MASTERY IN THE FIELD OF HUMAN RESOURCE MANAGEMENT AND TO PROMOTE ORGANIZATIONAL EFFECTIVENESS. 0 0 13116336 15139530 CERTIFICATION - THE INSTITUTE CONDUCTS CERTIFICATION EXAMINATIONS IN ORDER TO RECOGNIZE PROFESSIONALS IN THE FIELD WHO HAVE MASTERED THE BODY OF KNOWLEDGE IN HUMAN RESOURCE MANAGEMENT. THESE EXPENSES ARE RELATED TO THE EXAM DEVELOPMENT AND ADMINISTRATION OF SIX CREDENTIALS. THE INSTITUTE UTILIZES PROFESSIONAL EXAMINATION COMPANIES TO VALIDATE THE EXAMS AND SUBJECT MATTER EXPERTS TO PREPARE THE CONTENT. 1000100 1000100 RESEARCH - AS PART OF THE INSTITUTE'S MISSION TO FURTHER ESTABLISH AND MAINTAIN PROFESSIONAL STANDARDS, CONTRIBUTIONS WERE MADE TO THE SHRM FOUNDATION TO SUPPORT THEIR WORK ON CONDUCTING RESEARCH STUDIES IN THE FIELD OF HR MANAGEMENT AND IN SUPPORT OF THEIR PERMANENT ENDOWMENT. 234924 31815 PUBLICATIONS - THE INSTITUTE PRODUCES PUBLICATIONS AS A MEANS OF DISSEMINATING RELEVANT MANAGEMENT RESEARCH STUDY INFORMATION TO THE PUBLIC (COST OF GOODS SOLD RELATED TO SUCH PUBLICATIONS IS EXCLUDED FROM EXPENSES REPORTED HERE AND REPORTED ON PAGE 9 OF THE FORM 990). 14351360 1 0 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 1 33 0 1 67 1 1 1 0 0 0 0 0 0 0 0 0 X 18 18 0 1 1 0 0 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CA X THE ORGANIZATION 5715576700 1725 DUKE STREET ALEXANDRIA VA 22314 CLARISSA A PETERSON SPHR GPHR BOARD CHAIR 1.00 X X 0 0 0 RONNIE E CHARLES SPHR GPHR CHAIR ELECT 1.00 X X 0 0 0 KAREN BENNETT SPHR GPHR CCP SECRETARY/TREASURER 1.00 X X 0 0 0 WILLIAM SCHIEMANN PHD GPHR STRATEGY CHAIR 1.00 X 0 0 0 GARDINER HEMPEL JR CPA GPHR DIRECTOR 1.00 X 0 0 0 O DAVID JACKSON SPHR PMP MB DIRECTOR 1.00 X 0 0 0 MANJUSHREE M BADLANI MA SPHR DIRECTOR 1.00 X 0 0 0 BRIAN BAXTER MPA SPHR DIRECTOR 1.00 X 0 0 0 ANGELES CORDOVA MBA PHR DIRECTOR 1.00 X 0 0 0 DAVID CUTBIRTH PE LEED AP PUBLIC MEMBER 1.00 X 0 0 0 IONA HARDING SPHR GPHR DIRECTOR 1.00 X 0 0 0 JAMES A LEWIS SPHR GPHR DIRECTOR 1.00 X 0 0 0 LYNN OUTWATER ESQ SPHR DIRECTOR 1.00 X 0 0 0 JAMES STEELE EDD GPHR SPHR DIRECTOR 1.00 X 0 0 0 KENNETH G BROWN PHD SPHR DIRECTOR 1.00 X 0 0 0 LISA CALICCHIO SPHR DIRECTOR 1.00 X 0 0 0 JONATHAN PEARCE GPHR DIRECTOR 1.00 X 0 0 0 HOWARD J KLEIN PHD EX-OFFICIO MEMBER 1.00 X 0 0 0 AMY SCHABACKER DUFRANE CHIEF EXECUTIVE OFFICER 37.50 X 422082 0 103741 LISA STOVER CHIEF FINANCIAL OFFICER 37.50 X 155216 0 13284 RYAN BINGHAM DIRECTOR, INFORMATION TECHNOLOGY 37.50 X 185615 0 37007 LEE ANN EVANS DIRECTOR, CERTIFICATION SERVICES 37.50 X 148490 0 6522 SUPOJ SRIKITTIPRAPHAT MANAGER, INFORMATION TECHNOLOGY 37.50 X 120557 0 17667 THOMAS NORDBY CHIEF OPERATING OFFICER 37.50 X 141105 0 7908 LINDA ANGUISH DIRECTOR, CERTIFICATION PRODUCTS 37.50 X 135651 0 21783 BENNIE JOHNSON V.P. OF MARKETING (FORMER) 37.50 X 145852 0 0 1454568 0 207912 8 1 1 0 PROMETRIC INC PO BOX 223608 PITTSBURGH PA 15251 EXAMINATION SERVICES 1608038 SOCIETY FOR HUMAN RESOURCE MANAGEMENT 1800 DUKE STREET ALEXANDRIA VA 22314 ADMINISTRATIVE SERVICES 1033048 VENABLE LLP PO BOX 62727 BALTIMORE MD 21264 LEGAL SERVICES 658624 PROFESSIONAL EXAMINATION SERVICES 475 RIVERSIDE DRIVE 6TH FL NEW YORK NY 10115 EXAMINATION SERVICES 530607 GLOBAL GATEWAY ADVISORS 20 JAY STREET SUITE 820 BROOKLYN NY 11201 PUBLIC RELATIONS 503353 18 CERTIFICATION FEES 900099 15139530 15139530 OTHER 900099 7960 7960 15147490 758919 758919 9143 9143 17980395 16198568 1781827 1781827 1781827 40997 12102 28895 23855 5040 MISCELLANEOUS REVENUE 900099 21067 21067 21067 17747341 15171345 5040 2570956 X 1000100 1000100 705731 609165 96566 4009230 3679966 329264 196931 182264 14667 606104 551997 54107 302711 275578 27133 974472 887121 87351 588008 588008 107602 107602 263288 263288 3678210 2069634 1608576 376410 375450 960 1432203 1238810 193393 401771 365758 36013 882056 696894 185162 337251 249317 87934 8476 8476 365472 332713 32759 TESTING FEES 1284888 1284888 DUES & SUBSCRIPTIONS 452755 414872 37883 OBSOLETE INVENTORY 133898 133898 ARTWORK & PHOTOGRAPHY 4700 2874 1826 8754 61 8693 18121021 14351360 3769661 0 2059258 2536484 1449227 859934 17805 145805 143179 50759 56853 158409 2264585 857773 566908 1406812 37282607 36031004 24201 0 283122 18579 92957 41618617 41565286 1860475 2300400 3494225 4261873 1073463 1243481 6428163 7805754 X 35190454 33759532 35190454 33759532 41618617 41565286 -373680 -1057242 0 X X 0 1 X 1 0 X 14199763 13157040 12831420 14783395 15188487 70160105 14199763 13157040 12831420 14783395 15188487 70160105 0 0 0 70160105 618866 765518 699286 738201 768062 3589933 618866 765518 699286 738201 768062 3589933 31022 39839 4490 120933 21067 217351 14849651 13962397 13535196 15642529 15977616 73967389 0.94850 0.94670 0.04850 0.05000 X 28605 292 28313 266077 32057 234020 1969903 825424 1144479 1406812 DUE TO SHRM / SHRM FDN 1000000 DEFERRED RENT & LEASE INCENTIVES 118820 CAPITAL LEASES 124661 1243481 X 17006613 -1057242 567700 -489542 17496155 263288 -12102 251186 17747341 18437535 567700 12102 579802 17857733 263288 263288 18121021 PART X, LINE 2: THE INSTITUTE IS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. NO PROVISION FOR FEDERAL INCOME TAXES WAS MADE FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013 AS THE INSTITUTE HAD NO UNRELATED BUSINESS INCOME. IN 2014, THE INSTITUTE FORMED HUMAN RESOURCE CERTIFICATION INSTITUTE SUBSIDIARY, LLC (THE SUBSIDIARY), WHICH IS A LIMITED LIABILITY COMPANY WHOLLY-OWNED BY THE INSTITUTE. THE SUBSIDIARY IS DISREGARDED FOR TAX PURPOSES AND HAS A BOARD AND MANAGEMENT TEAM IDENTICAL TO THE INSTITUTE'S BOARD OF DIRECTORS AND MANAGEMENT TEAM. IN 2015, THE INSTITUTE BEGAN TRANSFERRING ITS ASSETS AND LIABILITIES TO THE SUBSIDIARY AS PART OF THE INITIAL STEPS OF AN INTERNAL REORGANIZATION. THIS INTERNAL REORGANIZATION IS EXPECTED TO BE COMPLETED BY THE END OF 2015. THE INSTITUTE FOLLOWS THE AUTHORITATIVE GUIDANCE RELATING TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES INCLUDED IN ASC TOPIC 740 INCOME TAXES. THESE PROVISIONS PROVIDE CONSISTENT GUIDANCE FOR THE ACCOUNTING FOR UNCERTAIN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND PRESCIBE A THRESHOLD OF "MORE LIKELY THAN NOT" FOR RECOGNITION AND DERECOGNITION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. THE INSTITUTE PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013, AND DETERMINED THAT THERE WERE NO MATTERS THAT WOULD REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS OR WHICH MAY HAVE ANY EFFECT ON ITS TAX-EXEMPT STATUS. AS OF DECEMBER 31, 2014, THE STATUTE OF LIMITATIONS FOR THE TAX YEARS 2011 THROUGH 2013 REMAINS OPEN WITH THE U.S. FEDERAL JURISDICTION OR THE VARIOUS STATES AND LOCAL JURISDICTIONS IN WHICH THE INSITUTE FILES TAX RETURNS. IT IS THE INSTITUTE'S POLICY TO RECOGNIZE INTEREST AND / OR PENALTIES RELATED TO UNCERTAIN TAX POSITIONS, IF ANY, IN INCOME TAX EXPENSE. AS OF DECEMBER 31, 2014 AND 2013, THE INSTITUTE HAD NO ACCRUALS FOR INTEREST AND / OR PENALTIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF GOODS SOLD PART XII, LINE 2D - OTHER ADJUSTMENTS: COST OF GOODS SOLD MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 11960 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 9569 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 4205 NORTH AMERICA 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 55681 SOUTH ASIA 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 16990 SOUTH AMERICA 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 5000 CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES GLOBAL CERTIFICATION 850 0 0 0 0 0 0 104255 0 104255 0 0 0 0 0 1 1 SHRM FOUNDATION 1800 DUKE STREET ALEXANDRIA VA 22314 346610067 501(C)(3) 1000000 TO SUPPORT THE GENERAL OPERATIONS OF THE SHRM FOUNDATION. 1 0 PART I, LINE 2: THE FUNDS PROVIDED TO THE SHRM FOUNDATION SUPPORT ITS GENERAL OPERATIONS, AS REPORTED TO THE HR CERTIFICATION INSTITUTE BOARD OF DIRECTORS. THE CHIEF EXECUTIVE OFFICER OF HRCI WORKS CLOSELY WITH THE FOUNDATION AND PROVIDES PERIODIC REPORTS TO THE BOARD. X X X X 1 0 0 0 0 1 0 1 0 AMY SCHABACKER DUFRANE CHIEF EXECUTIVE OFFICER 268463 0 153619 0 0 0 90397 0 13344 0 525823 0 0 0 LISA STOVER CHIEF FINANCIAL OFFICER 135753 0 19463 0 0 0 12771 0 513 0 168500 0 0 0 RYAN BINGHAM DIRECTOR, INFORMATION TECHNOLOGY 146454 0 39161 0 0 0 30620 0 6387 0 222622 0 0 0 LEE ANN EVANS DIRECTOR, CERTIFICATION SERVICES 115528 0 32962 0 0 0 6064 0 458 0 155012 0 0 0 LINDA ANGUISH DIRECTOR, CERTIFICATION PRODUCTS 109188 0 26463 0 0 0 5880 0 15903 0 157434 0 0 0 BENNIE JOHNSON V.P. OF MARKETING (FORMER) 0 0 54123 0 91729 0 0 0 0 0 145852 0 0 0 PART I, LINE 4A THOMAS NORDBY - CHIEF OPERATING OFFICER - $63,937 - SEVERANCE BENNIE JOHNSON - CHIEF, GLOBAL MARKETING - $91,729 - SEVERANCE PART I, LINE 6 MEETING CERTAIN FINANCIAL GOALS IS A FACTOR FOR THE COMPUTATION OF EMPLOYEE BONUSES. PART I, LINE 7 ALL EMPLOYEES ARE ELIGIBLE TO RECEIVE AN INCENTIVE COMPENSATION PAYMENT BASED ON THE INSTITUTE MEETING KEY PERFORMANCE GOALS. THE GOALS ARE APPROVED BY THE INSTITUTE BOARD OF DIRECTORS AND INCLUDE NUMBER OF EXAM APPLICANTS, RECERTIFICATION RATES, BUILDING A WORLD CLASS WORK ENVIRONMENT, LONG-TERM STRATEGIC INITIATIVES AND FINANCIAL RESULTS. EACH GOAL IS GIVEN A WEIGHTED AVERAGE PERCENTAGE OF THE TOTAL GOAL. INCENTIVE COMPENSATION PAYMENTS ARE BASED ON AN EMPLOYEE'S EARNINGS, POSITION AND INDIVIDUAL PERFORMANCE. AFTER THE CALENDAR YEAR, THE BOARD OF DIRECTORS REVIEW ACTUAL RESULTS VERSUS THE GOALS AND APPROVE THE INCENTIVE COMPENSATION PAYMENTS. FOR 2014, THE HR CERTIFICATION INSTITUTE EXCEEDED ITS GOALS AND PAID EMPLOYEES INCENTIVE COMPENSATION BASED ON THE RESULTS. FORM 990, PART VI, SECTION A, LINE 3 THE INSTITUTE HAD A MANAGEMENT AGREEMENT WITH THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT (SHRM). SHRM PROVIDED FINANCIAL MANAGEMENT, HUMAN RESOURCES, INFORMATION TECHNOLOGY AND OFFICE SPACE FOR THE INSTITUTE. THIS AGREEMENT ENDED IN 2014. FORM 990, PART VI, SECTION A, LINE 4 THE MAKE-UP OF THE MEMBERSHIP OF THE BOARD OF DIRECTORS WAS UPDATED TO INCLUDE UP TO FIFTEEN DIRECTORS, INCLUDING DIRECTORS REPRESENTING PARTNER ORGANIZATIONS THROUGH A RECIPROCAL (OR INTERLOCKING) BOARD AGREEMENT. FORM 990, PART VI, SECTION A, LINE 7A THE CEO OF THE SOCIETY OF HUMAN RESOURCE MANAGEMENT (SHRM) WAS STILL A MEMBER OF THE BOARD DURING PART OF 2014. THE HRCI BOARD SHALL ALSO HAVE AN EX OFFICIO MEMBER ELECTED BY THE SHRM FOUNDATION. FORM 990, PART VI, SECTION B, LINE 11 THE INSTITUTE'S FEDERAL FORM 990 IS REVIEWED BY THE INSTITUTE'S CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER. SUCH REVIEW TAKES PLACE UPON RECEIPT OF THE DRAFT FEDERAL FORM 990 FROM THE PUBLIC ACCOUNTING FIRM. THE REVIEW INVOLVES COMPARISON OF FINANCIAL DATA IN THE FEDERAL FORM 990 WITH THE AUDITED FINANCIAL STATEMENTS AND THE BOOKS AND RECORDS OF THE INSTITUTE AND REVIEW OF ALL NARRATIVE INFORMATION FOR ACCURACY AND COMPLETENESS. ADDITIONALLY, THE TREASURER OF THE BOARD REVIEWS A COPY OF THE RETURN FOR ACCURACY. PRIOR TO FILING THE FEDERAL FORM 990 WITH THE INTERNAL REVENUE SERVICE, A COMPLETE COPY IS PROVIDED TO ALL VOTING MEMBERS OF THE INSTITUTE'S BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 12C THE BOARD OF DIRECTORS' CONFLICT OF INTEREST POLICY PROVIDES THE FOLLOWING PROCEDURES FOR ADDRESSING POTENTIAL CONFLICTS OF INTEREST THAT MAY REQUIRE BOARD OF COMMITTEE ACTION: 1) THE INTERESTED PERSON MUST DISCLOSE ALL FACTS MATERIAL TO THE CONFLICT OF INTEREST AND SUCH DISCLOSURE MUST BE REFLECTED IN THE MINUTES OF THE MEETING WHERE SUCH MATTER IS BEING REVIEWED; 2) THE INTERESTED PERSON IS PROHIBITED FROM PARTICIPATION IN DISCUSSIONS EXCEPT TO DISCLOSE MATERIAL FACTS AND RESPOND TO QUESTIONS; 3) SUCH PERSON SHALL NOT ATTEMPT TO EXERT HIS OR HER PERSONAL INFLUENCE WITH RESPECT TO THE MATTER EITHER AT OR OUTSIDE OF THE MEETING; 4) SUCH PERSON MAY NOT BE PRESENT TO HEAR THE BOARD OR COMMITTEE DISCUSSIONS ON THE MATTER; 5) SUCH INTERESTED PERSON IS PRECLUDED FROM VOTING ON THE MATTER AND SUCH PERSON'S PRESENCE MAY NOT BE COUNTED IN DETERMINING THE PRESENCE OF A QUORUM FOR PURPOSES OF THE VOTE AT THE MEETING; 6) SUCH PERSON MAY NOT BE PRESENT DURING THE VOTE UNLESS THE VOTE IS BY SECRET BALLOT; AND 7) SUCH PERSON'S INELIGIBILITY TO VOTE SHOULD BE REFLECTED IN THE MINUTES. ADDITIONALLY, THE INSTITUTE EMPLOYEE CODE OF CONDUCT APPLIES TO ALL EMPLOYEES OF THE INSTITUTE; AND ALL EMPLOYEES RECEIVE A COPY OF THE CODE OF CONDUCT AND RETURN AN ACKNOWLEDGEMENT TO THE INSTITUTE HR DEPARTMENT THAT THEY UNDERSTAND AND WILL COMPLY WITH THE CODE OF CONDUCT. SECTION IV(K) OF THE CODE OF CONDUCT SETS FORTH THE CONFLICT OF INTEREST RULES APPLICABLE TO ALL EMPLOYEES. IT IS THE INSTITUTE'S INTENT TO AVOID IMPROPRIETY IN ALL DECISIONS AND ACTIONS. THE CODE OF CONDUCT REQUIRES EMPLOYEES TO AVOID TRANSACTIONS, ACTIVITIES AND RELATIONSHIPS WHICH PLAY PERSONAL INTEREST IN CONFLICT WITH THE INSTITUTE'S; NOT TO USE INSTITUTE ASSETS OR THE EMPLOYEE'S POSITION AT THE INSTITUTE FOR PERSONAL USE OR GAIN; NOT TO ACCEPT GIFTS FROM VENDORS UNLESS WITH THE GIFT GUIDELINES. EMPLOYEES ARE INFORMED THAT ACTUAL OR POTENTIAL CONFLICTS OF INTEREST MAY GO BEYOND DEALINGS WITH CERTIFICANTS, CUSTOMERS, VENDORS OR SUPPLIERS. CONFLICTS MAY ALSO INVOLVE DEALINGS WITH MANAGERS, SUBORDINATES OR OTHER STAFF MEMBERS. IF A CONFLICT OR POTENTIAL CONFLICT ARISES, EMPLOYEES UNDER THE POLICY MAY CONSULT WITH THEIR SUPERVISOR, THE CHIEF EXECUTIVE OFFICER OR THE HR DEPARTMENT. IN ADDITION, ALL CONTRACTS OVER $5,000 ARE CONSIDERED FOR REVIEW BY THE INSTITUTE'S OUTSIDE LEGAL COUNSEL. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION OF THE 10% HIGHEST PAID EMPLOYEES AT THE INSTITUTE IS RECOMMENDED BY AN INDEPENDENT COMPENSATION CONSULTANT THROUGH REVIEW OF RELEVANT COMPARABILITY DATA. THE RECOMMENDATION IS DISCUSSED AND SUBSTANTIATED BY THE CHIEF EXECUTIVE OFFICER AND THE HR DEPARTMENT. COMPENSATION AMOUNTS ARE DIRECTLY LINKED TO THE INDIVIDUAL'S PERFORMANCE. FORM 990, PART VI, SECTION C, LINE 19 THE INSTITUTE WILL MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY AND AUDITED FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART IX, LINE 11G OTHER PROFESSIONAL SERVICES: PROGRAM SERVICE EXPENSES 2,069,634. MANAGEMENT AND GENERAL EXPENSES 1,608,576. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 3,678,210. FORM 990, PART XII, LINE 2C: NO CHANGE HUMAN RESOURCE CERTIFICATION INSTITUTE SUBSIDIARY LLC 1725 DUKE STREET SUITE 700 ALEXANDRIA VA 22314 472243621 DC HUMAN RESOURCE CERTIFICATION INSTITUTE INC