2014-06-06T14:34:36-05:00 2013-08-31 420714325 MCGLADREY LLP 221 THIRD AVENUE SE STE 300 CEDAR RAPIDS IA 524011512 990 2012-09-01 420841485 ACT INC ACTI 3193371000 PO BOX 168 IOWA CITY IA 522430168 THOMAS J GOEDKEN 3193371000 2014-05-14 1 KAY HEGARTY P00091057 3192985333 2012 2015-11-30 17:44:51Z DR JON WHITMORE PO BOX 168 IOWA CITY IA 522430168 510795346 0 X WWW.ACT.ORG X 1960 IA HELPING PEOPLE ACHIEVE EDUCATION AND WORKPLACE SUCCESS 17 14 1988 49 2545871 -839598 749195 0 280228363 290120081 21607407 26758841 0 0 302584965 316878922 25762708 1727413 0 0 114019711 123773736 0 0 0 158842122 187484585 298624541 312985734 3960424 3893188 501993190 509217424 101283424 99819033 400709766 409398391 X ACT, INC. (ACT) WAS ESTABLISHED AS A CORPORATION NOT FOR PECUNIARY PROFIT UNDER THE LAWS OF THE STATE OF IOWA ON AUGUST 23, 1960. THE PURPOSE AND MISSION OF ACT IS TO ADVANCE EDUCATION BY PROVIDING PROGRAMS, SERVICES, AND CONDUCTING RESEARCH THAT ASSISTS: A) INDIVIDUALS PLANNING AND PURSUING EDUCATION AND TRAINING, B) EDUCATORS DELIVERING INSTRUCTION AND TRAINING, AND C) POLICY MAKERS CONCERNED WITH ENSURING THAT INDIVIDUALS ARE READY FOR EDUCATION AND WORKPLACE SUCCESS. 0 0 254599403 1177482 257890578 EDUCATION ASSESSMENT PROGRAM - ACT'S EDUCATION ASSESSMENT PROGRAM IS DESIGNED AND DEVELOPED TO INFORM INDIVIDUALS (AND THOSE HELPING THEM) ABOUT THE KNOWLEDGE AND SKILLS NEEDED FOR SUCCESS IN EDUCATION AND EVENTUALLY CAREER. INFORMATION RESULTING FROM THE ADMINISTRATION OF THE ASSESSMENTS ENABLE INDIVIDUALS TO PREPARE THEMSELVES FOR A NEXT LEVEL OF EDUCATION AND/OR TRAINING. THE ASSESSMENTS PROVIDE EDUCATORS AND TRAINERS WITH INFORMATION USEFUL IN GUIDING THEIR TEACHING AND INSTRUCTION. COLLECTIVELY, DATA RESULTING FROM THE ADMINISTRATION OF THE ASSESSMENTS FACILITATES RESEARCH ON EFFECTIVE EDUCATIONAL PRACTICES OF VALUE TO NATIONAL, STATE AND LOCAL EDUCATORS AND POLICY MAKERS. 35147695 549931 32229503 WORKFORCE DEVELOPMENT ASSESSMENT PROGRAM - ACT'S WORKFORCE DEVELOPMENT ASSESSMENT PROGRAM IS COMPLEMENTARY OF ITS EDUCATION ASSESSMENT PROGRAM IN THAT IT FOCUSES ON HELPING INDIVIDUALS TO ACQUIRE THE SKILLS THAT THEY NEED FOR SUCCESS IN THE WORKPLACE. THE PROGRAM IS A COMPONENT PART OF THE OVERALL EDUCATION PROCESS AND HELPS INDIVIDUALS TO UNDERSTAND THE SKILLS THEY WILL NEED TO BE READY FOR WORKPLACE RELATED EDUCATION AND TRAINING PROGRAMS. THE ASSESSMENTS ARE USED WIDELY BY EDUCATORS AND TRAINERS TO PRESCRIBE AND PROVIDE INSTRUCTIONAL INTERVENTIONS FOR THOSE INDIVIDUALS. COLLECTIVELY, DATA RESULTING FROM THE ADMINISTRATION OF THE ASSESSMENTS ENABLES RESEARCH ON NATIONAL, STATE, AND REGIONAL SKILL GAPS IN THE LABOR POOL AND FACILITATES DECISIONS AND STRATEGIES FOR ADDRESSING THEM. 289747098 1 0 0 1 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 1 1 1 0 0 1 X 17009 0 1 1988 1 1 1 1 AS CH HK KS ID SP NL 0 0 0 0 0 0 0 0 X 17 14 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 1 1 CA GA IL IN MA MN NH NY OH OR X THOMAS J GOEDKEN 3193371000 500 ACT DRIVE IOWA CITY IA 522430168 X JON S WHITMORE 40.00 X X 700956 0 88130 CARL A COHN 3.00 X X 55125 0 0 VIVIEN STEWART TEITELBAUM 3.00 X X 48625 0 0 JOSEPH A AGUERREBERE JR 3.00 X 48500 0 0 DIXIE L AXLEY 3.00 X 52625 0 0 ROBERT M BERDAHL 3.00 X 46000 0 0 JAMES E BOSTIC JR 3.00 X 49500 0 0 SARITA E BROWN 2.00 X 34500 0 0 WALTER C BUMPHUS 2.00 X 5000 0 0 D ROBERT GRAHAM 2.00 X 28000 0 0 KAREN A HOLBROOK 2.00 X 46500 0 0 MARK D MUSICK 3.00 X 42125 0 17000 CHARLES B REED 3.00 X 48000 0 0 RICHARD W RILEY 2.00 X 19500 0 17000 THOMAS G ROTHERHAM 3.00 X 50500 0 0 BELLE S WHEELAN 2.00 X 42250 0 0 CHAD P WICK 3.00 X 13500 0 0 THOMAS J GOEDKEN 55.00 X 364546 0 54923 JON L ERICKSON 40.00 X 365410 0 103161 MARTIN L SCAGLIONE 43.00 X 462479 0 45898 PATRICIA COX STEINBRECH 40.00 X 436719 0 39825 DAVID I CUMBERBATCH 52.00 X 332234 0 40098 L MIGUEL ENCARNACAO 40.00 X 290566 0 36646 JANET E GODWIN 40.00 X 244609 0 46458 RANJIT S SIDHU 40.00 X 303040 0 44400 JENNIFER M YI 40.00 X 358185 0 44145 4488994 0 577684 121 0 1 1 NCS PEARSON INC 2510 N DODGE ST IOWA CITY IA 52245 COMPUTER PROCESSING 24630994 OGILVY PUBLIC RELATIONS WORLDWIDE PO BOX 7247-7417 PHILADELPHIA PA 19170 MARKETING SERVICES 5855119 ORACLE INC 500 ORACLE PARKWAY REDWOOD SHORES CA 94065 CONTRACTOR FEES 3426527 UNITED PARCEL SERVICE LOCKBOX 77 CAROL STREAM IL 60132 FREIGHT AND SHIPPING 3153502 ROLTA INTERNATIONAL INC 5865 N POINT PKWY ALPHARETTA GA 30022 CONTRACTOR FEES 3103665 166 EDUCATIONAL ASSESSMENT 611710 257890578 257890578 WORKFORCE DEVELOPMENT 541900 32229503 29683632 2545871 290120081 7454107 7454107 210567921 2653237 193490851 425573 17077070 2227664 19304734 19304734 316878922 287574210 2545871 26758841 X 1727413 1727413 3619365 1679672 1939693 90474711 83375353 7099358 9349386 8394371 955015 13808015 12687540 1120475 6522259 5856028 666231 903055 31339 871716 596688 -3270 599958 339765 339765 1105041 1105041 74913683 71677559 3236124 624949 588933 36016 28569421 26431629 2137792 12262341 11660379 601962 6304293 5676328 627965 7579114 6755869 823245 2873621 2131703 741918 654921 654921 12770402 11720074 1050328 552626 1122 551504 STATE TAXES (UBIT) 13557 13557 FEDERAL TAXES (UBIT) -12850 -12850 TEST ADMINISTRATION 36966340 36966302 38 MEMBERSHIP FEES 458188 277232 180956 9430 11088 -1658 312985734 289747098 23238636 0 57729678 59186054 20421891 29261164 1197031 3030231 3074229 2318761 7847053 9679017 151267318 82760481 71739297 68506837 275250034 279311817 985117 128067 40865708 39233265 8542192 8130756 14340960 10431455 501993190 509217424 38003687 41227025 25598458 22909197 31815000 30725000 19463 4010 5846816 4953801 101283424 99819033 X 400709766 409398391 400709766 409398391 501993190 509217424 X 3893188 8511480 -3716043 X X 0 1 X 1 1 1 X 640000 1660477 1933784 749195 4983456 230131241 260965498 263697801 271933101 287574210 1314301851 230771241 262625975 265631585 272682296 287574210 1319285307 744764 1856626 1961524 873375 5436289 29868001 30934592 33418101 28298434 27380397 149899525 30612765 32791218 35379625 29171809 27380397 155335814 1163949493 7036999 6419666 6888811 11520866 7454107 39320449 7036999 6419666 6888811 11520866 7454107 39320449 215650 132124 424173 1069356 1841303 238023890 269177765 272944569 285272518 295028317 1360447059 0.85560 0.84630 0.02890 0.03080 X 0 1 0 0 0 0 1 339765 0 0 339765 0 EXPLANATION OF LOBBYING ACTIVITIES: PART II-B, LINE 1: ACT HAS CERTAIN EMPLOYEES LOCATED IN WASHINGTON, D.C. THAT ARE REGISTERED LOBBYISTS. IN ADDITION, ACT CONTRACTED WITH LOBBYING FIRMS DURING THE YEAR TO ASSIST IN MONITORING FEDERAL AND STATE LEGISLATIVE ACTIVITY AND HELPING TO STRENGTHEN ACT'S RELATIONSHIPS WITHIN EACH STATE CONCERNING ACT INITIATIVES AND PROGRAMS. 4755955 4755955 70684665 24070139 46614526 6968400 4933568 2034832 68638196 53756774 14881422 220102 220102 68506837 NONMARKETABLE EQUITY SECURITIES 9792177 C INVESTMENT IN FOREIGN SUBSIDIARIES 3716639 C INVESTMENT IN ACT FOUNDATION 25724449 C 39233265 INTEREST RATE SWAP 1244913 POST RETIREMENT BENEFIT PLAN OBLIGATIONS 3708888 4953801 X 329174035 8511480 3961297 12472777 316701258 177664 177664 316878922 320485410 7677340 7677340 312808070 177664 177664 312985734 DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: FIN 48 FOOTNOTE FROM AUDITED FINANCIAL REPORT: ACT AND ACT FOUNDATION ARE RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THESE ORGANIZATIONS MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAXES ON ANY NET INCOME FROM UNRELATED BUSINESS ACTIVITIES. THESE ORGANIZATIONS FILE FORMS 990 (RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX) ANNUALLY AND UNRELATED BUSINESS INCOME (UBI) IS REPORTED ON FORM 990-T, AS APPROPRIATE. ACT BRIDGE, INC. IS A TAXABLE CORPORATION UNDER THE INTERNAL REVENUE CODE REGULATIONS. ACT HAS CERTAIN REVENUE FROM PROGRAMS AND SERVICES THAT, BY VIRTUE OF A 1980 AGREEMENT WITH THE INTERNAL REVENUE SERVICE, IS DEEMED TO BE UNRELATED TO ITS TAX-EXEMPT PURPOSE AND, THEREFORE, MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAX. MANAGEMENT HAS EVALUATED THEIR MATERIAL TAX POSITIONS, WHICH INCLUDE SUCH MATTERS AS THE TAX EXEMPT STATUS AND VARIOUS POSITIONS RELATIVE TO POTENTIAL SOURCES OF UBI. AS OF AUGUST 31, 2013 AND 2012, THERE WERE NO UNCERTAIN TAX BENEFITS IDENTIFIED AND RECORDED AS A LIABILITY AND ANY AMOUNTS OWED RELATED TO UBI ARE IMMATERIAL TO THE FINANCIAL STATEMENTS AS A WHOLE. FORMS 990 AND 990-T FILED BY ACT ARE SUBJECT TO EXAMINATION BY THE INTERNAL REVENUE SERVICE (IRS) UP TO THREE YEARS FROM THE EXTENDED DUE DATE OF EACH RETURN. FORMS 990 AND 990-T FILED BY ACT ARE NO LONGER SUBJECT TO EXAMINATION FOR THE FISCAL YEARS ENDED AUGUST 31, 2009 AND PRIOR. PART XI, LINE 2D - OTHER ADJUSTMENTS: NET APPRECIATION IN FAIR VALUE OF INTEREST RATE SWAPS 847,987. INTERCOMPANY REVENUE - AES -136,888. INTERCOMPANY REVENUE - ACT BRIDGE -5,206. INTERCOMPANY REVENUE - ACT FOUNDATION -796,769. ACT INTERNATIONAL REVENUE - SEPARATE ENTITIES 3,183,167. ACT BRIDGE REVENUE - SEPARATE ENTITY 726,544. ACT FOUNDATION REVENUE - SEPARATE ENTITY 1,651,672. EQUITY IN NET LOSS OF NONMARKETABLE EQUITY SECURITIES -1,509,210. PART XI, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF EQUIPMENT 177,664. PART XII, LINE 2D - OTHER ADJUSTMENTS: INTERCOMPANY REVENUE - AES -136,888. INTERCOMPANY REVENUE - ACT BRIDGE -5,206. INTERCOMPANY REVENUE - ACT FOUNDATION -796,769. ACT INTERNATIONAL EXPENSES - SEPARATE ENTITIES 2,901,114. ACT BRIDGE EXPENSES - SEPARATE ENTITY 4,787,866. ACT FOUNDATION EXPENSES - SEPARATE ENTITY 927,223. PART XII, LINE 4B - OTHER ADJUSTMENTS: GAIN ON SALE OF EQUIPMENT 177,664. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES TESTING SERVICES 68526 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES TESTING SERVICES 493391 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES TESTING SERVICES 253548 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES TESTING SERVICES 25453 NORTH AMERICA 0 0 PROGRAM SERVICES TESTING SERVICES 2779240 RUSSIA & THE NEWLY INDEPENDENT STATES 0 0 PROGRAM SERVICES TESTING SERVICES 127264 SOUTH AMERICA 0 0 PROGRAM SERVICES TESTING SERVICES 60695 SOUTH ASIA 0 0 PROGRAM SERVICES TESTING SERVICES 34263 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES TESTING SERVICES 28390 0 0 0 0 0 0 3842380 28390 3870770 0 0 1 0 0 1 METHOD USED TO ACCCOUNT FOR EXPENDITURES: SCHEDULE F, PART I, LINE 3: THE FOREIGN EXPENDITURES FOR PROGRAM SERVICES REPORTED IN COLUMN (F) RELATE TO THE ADMINISTRATION OF ACT ASSESSMENTS INTERNATIONALLY. ACT MAY HAVE OTHER FOREIGN EXPENDITURES IN THE REGIONS LISTED THAT SUPPORT THE PROGRAMS OF ACT'S FOREIGN SUBSIDIARIES. THESE AMOUNTS ARE NOT SEPARATELY TRACKED AND ARE NOT REFLECTED IN THE AMOUNTS REPORTED. 1 ACT FOUNDATION 500 ACT DRIVE IOWA CITY IA 52243 272574917 501(C)(3) 796769 N/A N/A GENERAL SUPPORT AMERICAN ASSOCIATION OF COMMUNITY COLLEGES 1 DUPONT CIR NW STE 410 WASHINGTON DC 20036 530196569 501(C)(3) 25000 N/A N/A 2013 CONTRIBUTION 21ST CENTURY SKILLS INITIATIVE TEAM 5 AMERICAN HEART ASSOCIATION 1035 NORTH CENTER POINT ROAD SUITE B HIAWATHA IA 52233 135613797 501(C)(3) 8500 N/A N/A JOHNSON COUNTY HEART WALK/NATL START WALKING DAY; GO RED FOR WOMEN LUNCHEON AUSTIN YOUTH & COMMUNITY FARM INC 2921 E 17TH ST AUSTIN TX 78702 453954705 501(C)(3) 5000 N/A N/A 5-13 CONTRIBUTION CORP GIVING AWARD- CORE YOUTH PROGRAM COLLEGE ACCELERATION NETWORK INC 1389 W 86TH ST INDIANAPOLIS IN 46260 454124456 501(C)(3) 240000 N/A N/A COMPLETION OF GRANT AGREEMENT DATED 2-6-12 COUNCIL FOR OPPORTUNITY IN EDUCATION PO BOX 742282 ATLANTA GA 30374 521221301 501(C)(3) 25000 N/A N/A 179275 32ND ANNUAL CONFERENCE BANQUET DIVERSITY FOCUS 222 2ND ST SE CEDAR RAPIDS IA 52401 203420207 501(C)(3) 50000 N/A N/A 2013 SPONSOR PAYMENT EXCELENCIA IN EDUCATION 1717 N ST NW 2ND FL WASHINGTON DC 20036 200927912 501(C)(3) 30000 N/A N/A DIAMOND LEVEL SPONSOR 2013 EXAMPLES OF EXCELENCIA GEORGIA TECH FOUNDATION INC STE 400 760 SPRING ST NW ATLANTA GA 30308 586043294 501(C)(3) 120000 N/A N/A 2013 GIFT HARVARD UNIVERSITY GRADUATE SCHOOL OF EDUCATION 80 LONGFELLOW HALL CAMBRIDGE MA 02138 042103580 501(C)(3) 50000 N/A N/A PATHWAYS TO PROSPERITY PROJECT IOWA CITY AREA CHAMBER OF COMMERCE 325 E WASHINGTON STE 100 IOWA CITY IA 52240 420330530 501(C)(6) 9050 N/A N/A TRC 2013 COMMUNITY LEADERSHIP PROGRAM ARTS & CULTURE SESSION IOWA CITY AREA DEVELOPMENT GROUP INC 325 E WASHINGTON ST STE 101 IOWA CITY IA 52240 421234837 501(C)(6) 60000 N/A N/A FY 2012 INVESTMENT CONTRIBUTION, IQ COLAB SPONSORSHIP IOWA CITY COMMUNITY SCHOOL DISTRICT FOUNDATION 1725 N DODGE ST IOWA CITY IA 52245 421177023 501(C)(3) 75700 N/A N/A ICCSDS COMPLEMENTARY LEARNING PROGRAM; EDUCATION IS EVERYBODYS BUSINESS BREAKFAST IOWA JOBS FOR AMERICAS GRADUATES 400 E 14TH ST DES MOINES IA 50319 421492988 501(C)(3) 5000 N/A N/A CEDAR RAPIDS IJAG CAREER/POSTSECONDARY EDUCATION PREPARATION IOWA STATE UNIVERSITY SCHOOL OF EDUCATION N131 LAGOMARCIN HALL AMES IA 50011 426004224 501(C)(3) 20000 N/A N/A 2013 DONATION LATINO INITIATIVES PROPOSAL IOWA WOMENS LEADERSHIP CONFERENCE PO BOX 10641 CEDAR RAPIDS IA 52410 452932668 501(C)(3) 7500 N/A N/A IWLC START SMART LEAD STRONG 2013 CONFERENCE JOHNSON COUNTY EXTENSION OFFICE 3109 OLD HWY 218 IOWA CITY IA 52246 426021441 170(B)(1)(A)(V) 5000 N/A N/A 2013 DONATION JOHNSON COUNTY PICK A BETTER SNACK PROGRAM KIRKWOOD COMMUNITY COLLEGE FOUNDATION 1030 5TH AVE SE CEDAR RAPIDS IA 52403 237076632 501(C)(3) 15000 N/A N/A WORKPLACE LEARNING CONNECTION LEUKEMIA AND LYMPHOMA SOCIETY 8033 UNIVERSITY BLVD STE A DES MOINES IA 50325 135644916 501(C)(3) 5000 N/A N/A LEUKEMIA & LYMPHONA SOCIETY MAN & WOMAN OF THE YEAR; LIGHT THE NIGHT EIC EVENT MID-EASTERN IOWA MENTAL HEALTH CENTER 507 E COLLEGE ST IOWA CITY IA 52240 420989584 501(C)(3) 10000 N/A N/A ASKING FOR ACCESS BUILDING RENOVATION PROJECT TANAGER PLACE 2309 C ST SW CEDAR RAPIDS IA 52404 420688079 501(C)(3) 5000 N/A N/A 2013 DONATION EXPRESSIVE ARTS PROGRAM UNITED WAY OF JOHNSON COUNTY 1150 5TH ST STE 290 CORALVILLE IA 52241 426062055 501(C)(3) 83595 N/A N/A 50% ACT MATCH FOR UNITED WAY CAMPAIGN 2012 19 3 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: ACT REVIEWS THE QUALIFICATIONS OF THOSE REQUESTING CONTRIBUTIONS TO ENSURE THAT THEY ARE NONPROFIT ORGANIZATIONS. ACT HAS CREATED AN EMPLOYEE COMMITTEE TO REVIEW ALL SUCH REQUESTS. ALL GRANTS AND CONTRIBUTIONS ARE REVIEWED AND APPROVED BY THE CEO PRIOR TO COMMITMENT. X X 1 1 X X X X X 1 1 0 0 0 0 0 0 0 JON S WHITMORE 556035 0 125000 0 19921 0 74163 0 13967 0 789086 0 0 0 CARL A COHN 55125 0 0 0 0 0 0 0 0 0 55125 0 0 0 THOMAS J GOEDKEN 321069 0 25000 0 18477 0 39660 0 15263 0 419469 0 0 0 JON L ERICKSON 315719 0 30000 0 19691 0 90580 0 12581 0 468571 0 0 0 MARTIN L SCAGLIONE 312589 0 10000 0 139890 0 29601 0 16297 0 508377 0 7470 0 PATRICIA COX STEINBRECH 257207 0 22646 0 156866 0 22073 0 17752 0 476544 0 0 0 DAVID I CUMBERBATCH 263397 0 55000 0 13837 0 22952 0 17146 0 372332 0 0 0 L MIGUEL ENCARNACAO 224025 0 40000 0 26541 0 20455 0 16191 0 327212 0 0 0 JANET E GODWIN 224001 0 20000 0 608 0 27590 0 18868 0 291067 0 0 0 RANJIT S SIDHU 257847 0 25000 0 20193 0 22200 0 22200 0 347440 0 0 0 JENNIFER M YI 245147 0 40000 0 73038 0 22811 0 21334 0 402330 0 0 0 PART I, LINE 1A ONE OFFICER RECEIVED AN AMOUNT FOR TRAVEL FOR COMPANIONS. THIS AMOUNT IS TAXABLE TO THE EMPLOYEE AND IS REFLECTED IN REPORTABLE COMPENSATION ON SCHEDULE J, PART II, COLUMN (B)(III). ONE KEY EMPLOYEE RECEIVED AN AMOUNT FOR HOUSING. THIS AMOUNT IS TAXABLE TO THE EMPLOYEE AND IS REFLECTED IN REPORTABLE COMPENSATION ON SCHEDULE J, PART II, COLUMN (B)(III). PART I, LINE 3 THE EXECUTIVE COMMITTEE SERVES AS THE COMPENSATION COMMITTEE IN REGARDS TO ESTABLISHING THE COMPENSATION OF THE ORGANIZATION'S CEO. PART I, LINES 4A-B ACT MAINTAINS A NON-QUALIFIED DEFERRED COMPENSATION PLAN UNDER SECTION 457(F) OF THE INTERNAL REVENUE CODE FOR CERTAIN LISTED PERSONS. THE PLAN PROVIDES FOR ACT TO MAKE DISCRETIONARY CONTRIBUTIONS FOR ELIGIBLE EMPLOYEES. 457(F) DISTRIBUTIONS ARE REPORTED IN PART II, COLUMN (B)(III), OTHER REPORTABLE COMPENSATION FOR RANJIT SIDHU, SR. VICE PRESIDENT IN THE AMOUNT OF $2,414 AND MARTIN SCAGLIONE, PRESIDENT & COO WORKFORCE IN THE AMOUNT OF $7,470. OF THIS AMOUNT, $7,470 WAS REPORTED AS DEFERRED COMPENSATION IN A PRIOR YEAR FORM 990. OTHER LISTED PERSONS PARTICIPATE IN BUT DID NOT RECEIVE DISTRIBUTIONS FROM THIS PLAN DURING THE YEAR. ACT MAINTAINS A LEGACY EARLY RETIREMENT PLAN THAT HAS BEEN CLOSED TO NEW ENTRANTS. TO BE ELIGIBLE, THE EMPLOYEE MUST HAVE COMPLETED 20 YEARS OF CONTINUOUS SERVICE AND RETIRE BETWEEN THE AGES OF 60 AND 65. THE PLAN PROVIDES FOR THE PAYMENT OF CERTAIN RETIREMENT BENEFITS BASED ON SALARY OF THE EMPLOYEE AT DATE OF RETIREMENT. PART II, COLUMN (C), DEFERRED COMPENSATION INCLUDES THE INCREASE IN ACTUARIAL VALUE THAT HAS OCCURRED TO AN INDIVIDUAL'S VESTED BALANCE DURING THE YEAR. DEPENDING ON THE INDIVIDUAL'S AGE AT DATE OF RETIREMENT, THE ACTUAL EARLY RETIREMENT BENEFIT DISTRIBUTED AT THE TIME OF RETIREMENT MAY BE LESS THAN THE AMOUNT THAT IS CURRENTLY BEING INCLUDED IN DEFERRED COMPENSATION. ONE LISTED PERSON PARTICIPATES IN BUT DID NOT RECEIVE A DISTRIBUTION FROM THIS PLAN DURING THE YEAR. ACT MAINTAINS SEVERANCE AGREEMENTS WITH CERTAIN LISTED PERSONS. SEVERANCE AGREEMENTS GENERALLY PROVIDE FOR EITHER A LUMP SUM PAYMENT OR A SERIES OF PAYMENTS OVER TIME UPON THE TERMINATION OF THE LISTED PERSON. THE SPECIFIC TERMS AND CONDITIONS OF EACH SEVERANCE AGREEMENT ARE DETERMINED ON AN INDIVIDUAL BASIS. DURING CALENDAR YEAR 2012, SEVERANCE OF $77,771 WAS PAID TO MARTIN SCAGLIONE, PRESIDENT & COO WORKFORCE. OTHER LISTED PERSONS MAY BE ELIGIBLE FOR SIMILAR SEVERANCE ARRANGEMENTS. SUPPLEMENTAL INFORMATION PART III FORM 990, PART VII, SECTION A, LINE 5 AND SCH J, PART II: CARL COHN'S BASE COMPENSATION OF $55,125 WAS PAID BY URBAN SCHOOL IMAGINEERS, AN UNRELATED ORGANIZATION OF WHICH COHN IS A PRINCIPAL. THIS AMOUNT REPRESENTS COMPENSATION FOR SERVICES PROVIDED TO ACT. TEACHERS SUPPORT NETWORK SEE SCH L, PART V 400000 SEE PART V 0 PART IV BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND THE ORGANIZATION: THOMAS J. GOEDKEN, CFO/TREASURER IS A DIRECTOR OF TEACHERS SUPPORT NETWORK.(D) DESCRIPTION OF TRANSACTION: ACT HOLDS A NOTE RECEIVABLE RELATED TO ITS REDEMPTION OF SHARES OF STOCK IN TEACHERS SUPPORT NETWORK WHICH OCCURRED DURING THE YEAR ENDED AUGUST 31, 2011. THE ENTIRE SALES PRICE, INCLUDING THE PORTION FINANCED BY THE NOTE, WAS REPORTED ON ACT'S FORM 990, SCHEDULE L FOR THE YEAR ENDED AUGUST 31, 2011. ACT RECIEVED PRINCIPAL AND INTEREST PAYMENTS OF $400,000 DURING THE CURRENT FISCAL YEAR. FORM 990, PART I, LINE 6, NUMBER OF VOLUNTEERS: ACT HAS STATE ORGANIZATIONS THAT SERVE AS ADVISORY AND ADVOCACY GROUPS TO FACILITATE COMMUNICATIONS BETWEEN ACT AND THE EDUCATIONAL INSTITUTIONS AND AGENCIES THAT PARTICIPATE IN ACT PROGRAMS. THESE ORGANIZATIONS ARE NOT SEPARATE LEGAL ENTITIES, BUT DO HAVE ORGANIZING BYLAWS. THE STATE ORGANIZATIONS PROVIDE FEEDBACK TO ACT ON ITS PROGRAMS AS THEY RELATE TO THE INFORMATION NEEDS OF INDIVIDUALS, SCHOOLS, AND AGENCIES IN THE STATE. APPROXIMATELY 910 REPRESENTATIVES FROM EDUCATIONAL INSTITUTIONS ARE MEMBERS OF ACT'S ADVISORY GROUPS THAT RECEIVE INFORMATION FROM ACT. THERE ARE APPROXIMATELY 49 INDIVIDUALS WHO ACTIVELY VOLUNTEER THEIR TIME TO SERVE IN AN ADVISORY CAPACITY BY ATTENDING MEETINGS WITH ACT REGIONAL AND NATIONAL OFFICE STAFF TO PROVIDE INPUT. FORM 990, PART VI, SECTION A, LINE 2 JOSEPH A. AGUERREBERE, JR. AND BELLE S. WHEELAN HAVE A BUSINESS RELATIONSHIP WITH SARITA E. BROWN TO THE EXTENT THAT THEY ARE DIRECTORS OF A TAX-EXEMPT ORGANIZATION THAT EMPLOYS SARITA E. BROWN. SOME OFFICERS AND DIRECTORS HAVE A BUSINESS RELATIONSHIP WITH OTHER OFFICERS AND DIRECTORS TO THE EXTENT THAT THEY ALSO SERVE TOGETHER ON THE BOARDS OF OTHER RELATED ENTITIES: (1) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT INTERNATIONAL B.V. (2) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT EDUCATION SOLUTIONS LTD (HONG KONG). (3) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT EDUCATION SOLUTIONS (AUSTRALIA) PTY LTD. (4) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT INFORMATION CONSULTING (SHANGHAI) CO LTD. (5) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT BUSINESS SOLUTIONS B.V. (6) THOMAS J. GOEDKEN, MARK D. MUSICK, AND CHARLES B. REED ARE DIRECTORS OF ACT BRIDGE, INC. (7) THOMAS J. GOEDKEN, JON L. ERICKSON, AND CHAD P. WICK ARE DIRECTORS OF ACT ASPIRE, LLC FKA NEXT GENERATION ASSESSMENT, LLC. FORM 990, PART VI, SECTION B, LINE 11 PROCEDURES FOR REVIEW OF FORM 990 THE AUDIT COMMITTEE OF THE CORPORATION CONDUCTS A SUBSTANTIVE REVIEW OF THE FORM 990 PRIOR TO ITS FILING WITH THE ASSISTANCE OF THE OUTSIDE TAX PREPARER AND THE CORPORATION'S CHIEF FINANCIAL OFFICER, COUNSEL, AND STAFF. THE FINAL VERSION OF THE FORM 990 IS PROVIDED TO ALL OF THE MEMBERS OF THE CORPORATION'S BOARD OF DIRECTORS BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ACT HAS CREATED AN ETHICS ADVISORY COMMITTEE. MEMBERS OF THE ETHICS ADVISORY COMMITTEE REVIEW CONFLICT OF INTEREST QUESTIONNAIRES SUBMITTED BY EMPLOYEES AND ARE RESPONSIBLE FOR SEEING THAT CONFLICTS OF INTEREST ARE INVESTIGATED AND APPROPRIATELY ADDRESSED. THEY ALSO WORK CLOSELY WITH ACT'S HUMAN RESOURCES DEPARTMENT TO DEVELOP EDUCATION AND TRAINING PROGRAMS FOR EMPLOYEES REGARDING THE CONFLICTS OF INTEREST POLICY AND ETHICS ISSUES. THE ETHICS ADVISORY COMMITTEE REPORTS DIRECTLY TO THE AUDIT COMMITTEE OF ACT'S BOARD OF DIRECTORS. CONFLICT OF INTEREST QUESTIONNAIRES SUBMITTED BY DIRECTORS OR OFFICERS ARE REVIEWED AND ADDRESSED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15A COMPENSATION OF OFFICERS AND DIRECTORS IS DETERMINED BY THE BOARD BASED UPON A PROCESS THAT INCLUDES A COMPENSATION COMMITTEE OF THE BOARD AND AN INDEPENDENT COMPENSATION STUDY CONDUCTED BY A PROFESSIONAL FIRM THAT INCLUDES REVIEW OF COMPENSATION PUBLISHED BY SIMILAR ORGANIZATIONS CONTAINED IN FORM 990. WITH THE EXCEPTION OF BOARD OFFICERS WHO BY THEIR NATURE CANNOT BE CONSIDERED INDEPENDENT DUE TO SERVING ON THE EXECUTIVE COMMITTEE, WHICH SERVES AS THE COMPENSATION COMMITTEE, COMPENSATION FOR THE CEO, ALL OTHER OFFICERS, AND KEY EMPLOYEES IS REVIEWED AND APPROVED BY INDEPENDENT PERSONS. COMPENSATION OF KEY EMPLOYEES IS INFORMED BY THE SAME STUDY AND IS ESTABLISHED BY THE BOARD ANNUALLY. ALL OTHER EMPLOYEE COMPENSATION IS REVIEWED AT LEAST ANNUALLY, UNDER THE DIRECTION OF THE HUMAN RESOURCE DEPARTMENT AND INCLUDES APPLICABLE DATA GATHERED AND REVIEWED. FORM 990, PART VI, SECTION C, LINE 19 ACT DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION A, BOARD MEMBER COMPENSATION: PER ACT POLICY, BOARD MEMBERS ARE EXPECTED TO PARTICIPATE IN FOUR THREE-DAY BOARD MEETINGS, COMMITTEE MEETINGS THAT OCCUR THROUGHOUT THE YEAR, AND AT OTHER TIMES TO DISCUSS IMPORTANT AND STRATEGIC MATTERS PERTAINING TO ACT. IN EXCHANGE FOR THEIR VALUABLE TIME AND SERVICE, ACT COMPENSATES THE BOARD WITH AN ANNUAL AMOUNT THAT IS PRORATED FOR MEETING ATTENDANCE AND PARTIAL YEARS OF SERVICE. THE CHAIRMAN OF THE BOARD AND COMMITTEE CHAIRS, AS WELL AS BOARD MEMBERS WHO ARE REQUESTED TO PROVIDE TIME OTHER THAN FOR MEETING ATTENDANCE, RECEIVE ADDITIONAL COMPENSATION AT A COMMENSURATE RATE. IN ADDITION TO SERVING AS A VOTING MEMBER OF THE BOARD OF DIRECTORS, JON WHITMORE ALSO SERVES AS CEO OF ACT. HIS COMPENSATION AS CEO IS DISCLOSED ON FORM 990, PART VII, SECTION A AND SCHEDULE J. HE RECEIVES NO ADDITIONAL COMPENSATION FOR SERVICE AS A MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN (B), AVERAGE HOURS PER WEEK: HOURS LISTED FOR EACH INDIVIDUAL ARE REPORTED ON A CALENDAR YEAR BASIS. OTHER FEES FORM 990, PART IX, LINE 11G COMPUTER PROCESSING-EXTERNAL: PROGRAM SERVICE EXPENSES 13,254,099. MANAGEMENT AND GENERAL EXPENSES 90,930. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 13,345,029. COMPUTER PROGRAMMING-EXTERNAL: PROGRAM SERVICE EXPENSES 631,563. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 631,563. OTHER DATA PROCESSING: PROGRAM SERVICE EXPENSES 505,096. MANAGEMENT AND GENERAL EXPENSES 5,606. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 510,702. CONTRACTOR FEES: PROGRAM SERVICE EXPENSES 16,868,475. MANAGEMENT AND GENERAL EXPENSES 772,106. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 17,640,581. ITEM DEVELOPMENT: PROGRAM SERVICE EXPENSES 470,107. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 470,107. ESSAY SCORING: PROGRAM SERVICE EXPENSES 9,169,243. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,169,243. HONORARIA-OTHER: PROGRAM SERVICE EXPENSES 62,674. MANAGEMENT AND GENERAL EXPENSES 16,500. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 79,174. OTHER SERVICES & FEES: PROGRAM SERVICE EXPENSES 13,887,827. MANAGEMENT AND GENERAL EXPENSES 1,538,876. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 15,426,703. CONSULTING FEES: PROGRAM SERVICE EXPENSES 16,828,475. MANAGEMENT AND GENERAL EXPENSES 812,106. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 17,640,581. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: NET APPRECIATION IN FAIR VALUE OF INTEREST RATE SWAPS 847,987. INCREASE IN NET ASSETS - FOREIGN SUBSIDIARIES 282,053. (DECREASE) IN NET ASSETS - ACT BRIDGE -4,061,322. INCREASE IN NET ASSETS - ACT FOUNDATION 724,449. EQUITY IN NET LOSS OF NONMARKETABLE EQUITY SECURITIES -1,509,210. FORM 990, PART XII, LINE 2C, RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT: THE ORGANIZATION'S AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. ACT FOUNDATION 500 ACT DRIVE IOWA CITY IA 52243 272574917 TO SUPPORT THE ACTIVITIES OF ACT, INC. 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