2014-11-17T08:54:06-06:00 2013-12-31 381357951 PLANTE & MORAN PLLC PO BOX 307 SOUTHFIELD MI 480370307 990 2013-01-01 383203030 FRAUNHOFER USA INC FRAU 7343549700 44792 HELM STREET PLYMOUTH MI 48170 ERIN SIMMONDS TREASURER 7343549700 2014-11-13 1 LYNNE M HUISMANN P00053811 2483522500 2013 2015-11-30 17:44:51Z WILLIAM HARTMAN 44792 HELM STREET PLYMOUTH MI 48170 39894700 0 X WWW.FRAUNHOFER.ORG X 1994 RI ENHANCE THE TECHNOLOGICAL COMPETENCE AND KNOWLEDGE OF THE U.S. MANUFACTURING INDUSTRY BY FOSTERING ADVANCED TECHNOLOGICAL RESEARCH AND DEVELOPMENT AND INNOVATIVE METHODS OF TECHNOLOGICAL EDUCATION FOR THE BETTERMENT OF THE GENERAL PUBLIC AND THE ACADEMIC, SCIENTIFIC, AND MANUFACTURING COMMUNITIES. 8 6 357 8 0 0 9634982 10066512 25803996 27646869 290388 349440 1881502 252251 37610868 38315072 46865 11685 0 0 21691146 20829778 0 0 0 18018027 15413950 39756038 36255413 -2145170 2059659 70433754 62619077 34076955 24213394 36356799 38405683 X FRAUNHOFER USA OFFERS CUSTOMIZED, ADVANCED TECHNOLOGY RESEARCH, DEVELOPMENT AND DEPLOYMENT. FRAUNHOFER USA SHALL SERVE MARKET-DRIVEN TECHNOLOGY NEEDS; PROMOTE INTERNATIONAL COOPERATION IN BUSINESS; ESTABLISH STRATEGIC ALLIANCES WITH INDUSTRY, GOVERNMENT AND ACADEMIC PARTNERS. 0 0 20853842 11685 27646869 FRAUNHOFER USA OPERATES NINE CENTERS THROUGHOUT THE USA. EACH CENTER IS DEVOTED TO A DIFFERENT TYPE OF TECHNOLOGICAL RESEARCH, SUCH AS SUSTAINABLE ENERGY SYSTEMS AND LASER TECHNOLOGY. THE FRAUNHOFER CENTERS UNDERTAKE ADVANCED RESEARCH PROJECTS TO DEVELOP KEY TECHNOLOGICAL INNOVATIONS IN MAJOR AREAS OF PUBLIC CONCERN AND EDUCATE PARTICIPANTS IN A VARIETY OF TECHNICAL DISCIPLINES. THE RESEARCH IS DONE TO BENEFIT THE U.S. INDUSTRY AS A WHOLE, AND IS OFTEN DONE IN COLLABORATION WITH EDUCATIONAL INSTITUTIONS IN FURTHERANCE OF ITS EXEMPT SCIENTIFIC AND EDUCATIONAL PURPOSES. 20853842 1 1 0 1 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 0 1 0 0 0 1 385 0 1 357 1 0 0 0 0 0 0 0 0 0 0 X 8 6 0 0 0 0 1 1 0 1 0 0 1 1 0 1 1 1 0 1 0 0 1 1 MI X ERIN SIMMONDS 7343544334 44792 HELM STREET PLYMOUTH MI 48170 PROF HANS-JOERG BULLINGER VICE CHAIRMAN 1.00 40.00 X X 0 0 0 J MICHAEL BOWMAN BOARD MEMBER 1.00 0.00 X 0 0 0 STEVE WILLIAMS BOARD MEMBER 1.00 0.00 X 0 0 0 MARVIN PARNES BOARD MEMBER 1.00 0.00 X 0 0 0 DR BRIAN DARMODY BOARD MEMBER 1.00 0.00 X 0 0 0 DR JOHN F REID BOARD MEMBER 1.00 0.00 X 0 0 0 DR DENNIS A AUSIELLO BOARD MEMBER 1.00 0.00 X 0 0 0 PROF REIMUND NEUGEBAUER CHAIRMAN 2.00 40.00 X X 0 0 0 DR GEORG ROSENFELD PRESIDENT 5.00 40.00 X 20000 0 0 DR WILLIAM HARTMAN EXECUTIVE VICE PRESIDENT 47.00 0.00 X 286000 0 48208 MARK J EBY SECRETARY 1.00 0.00 X 0 0 0 ERIN SIMMONDS TREASURER 40.00 0.00 X 147538 0 32433 NOLAN BROWNE MANAGING DIRECTOR 55.00 0.00 X 175694 0 33665 VIDADI YUSIBOV EXECUTIVE DIRECTOR 55.00 0.00 X 267000 0 48271 CHRISTIAN HOEPFNER CENTER DIRECTOR 55.00 0.00 X 192600 0 35313 FRANK HERMAN MANAGING DIRECTOR 40.00 0.00 X 254064 0 43774 KATHLEEN COLEMAN DANGLE DIVISION DIRECTOR 40.00 0.00 X 119389 0 27270 ROBERT BLEIDT DIVISION GENERAL MANAGER 40.00 0.00 X 239982 0 30821 HANS-PETER BAUMEISTER DIRECTOR OF COMMUNICATIONS 40.00 0.00 X 192314 0 33185 CRAIG BRATT DIRECTOR OF LASER APPLICAT 40.00 0.00 X 186842 0 36022 2081423 0 368962 50 0 1 0 COVANCE RESEARCH PO BOX 820511 PHILADELPHIA PA 19182 RESEARCH STUDIES 393673 RADBOUND UNIVERSITY NIJMEGEN MEDICAL CEN PO BOX 9010 NIJMEGEN GELDERLAND NL RESEARCH STUDIES 196932 LUMETA 2081 BUSINESS CENTER DRIVE SUITE 1 IRVINE CA 92612 RESEARCH STUDIES 159020 PLANTE & MORAN PLLC 27400 NORTHWESTERN HWY SOUTHFIELD MI 48037 ACCOUNTING 137450 IMPERIAL COLLEGE LEVEL 3 SHERFIELD BLDG SOUTH KENSI LONDON LONDON UK RESEARCH STUDIES 117984 6 10066512 10066512 RESEARCH & DEVELOPMENT 541700 27646869 27646869 27646869 330572 330572 195164 195164 13514 11793 1721 1721 1721 1550407 36296 1550407 17428 0 18868 18868 18868 MISCELLANEOUS INCOME 900099 59246 59246 FOREIGN EXCHANGE GAIN/LOSS 900099 -3880 -3880 55366 38315072 27646869 0 601691 11685 11685 1286722 540423 746299 14968013 6286565 8681448 1417779 595467 822312 2002226 840935 1161291 1155038 485116 669922 272946 81884 191062 137450 137450 50000 50000 3242292 2918063 324229 224236 49332 174904 228575 133577 94998 180686 126480 54206 1822884 1075502 747382 686047 185233 500814 593435 474748 118687 2933231 2493246 439985 149188 123826 25362 SUPPLIES 2853088 2539248 313840 EQUIPMENT RENTAL 1114596 1070012 44584 BAD DEBT EXPENSE 669727 669727 0 DUES & SUBSCRIPTIONS 95500 25785 69715 160069 126988 33081 36255413 20853842 15401571 0 250 250 15282859 3199700 9996100 6691811 563566 712184 69772221 18452738 43317242 51319483 19520 32034 129932 141330 1124285 522285 70433754 62619077 4959146 3312428 2009943 2767568 27107866 18133398 34076955 24213394 X 32215885 35146990 4140914 3258693 36356799 38405683 70433754 62619077 X 2059659 -10775 X X 0 1 X 1 1 1 X 8883398 8728442 14778886 9634982 10066512 52092220 30475339 24190816 27730952 25803996 27646869 135847972 39358737 32919258 42509838 35438978 37713381 187940192 8884756 9120428 11982942 9860103 10414323 50262552 17906706 11456617 9311994 9092897 8537328 56305542 26791462 20577045 21294936 18953000 18951651 106568094 81372098 1533030 2223556 2011135 2153459 539250 8460430 1533030 2223556 2011135 2153459 539250 8460430 21449 13655 14375 18734 55366 123579 40913216 35156469 44535348 37611171 38307997 196524201 0.41410 0.39010 0.04310 0.05510 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 50000 50000 0 PART II-B, LINE 1: ONE OF THE ORGANIZATION'S CENTERS ENTERED INTO A CONTRACT WITH TRAVAGLINI EISENBERG KIELY LLC TO PROVIDE LOBBYING ACTIVITIES ON BEHALF OF THE CENTER. 34319747 1908722 32411025 16172219 2860532 13311687 17752328 13111662 4640666 1527927 571822 956105 51319483 ADVANCES DUE TO FRAUNHOFER-GESELLSCHAFT 1805604 LONGTERM OBLIGATION UNDER CONSTRUCTION CONTRACT 16327794 18133398 X 43299996 3420673 1579239 4999912 38300084 14988 14988 38315072 41251112 3420673 1575026 4995699 36255413 0 36255413 PART X, LINE 2: THE COMPANY IS EXEMPT FROM INCOME TAX UNDER PROVISIONS OF INTERNAL REVENUE CODE SECTION 501(C)(3). ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE COMPANY AND RECOGNIZE A TAX LIABILITY IF THE COMPANY HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE AGENCY AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2013, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE COMPANY IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES, INCLUDED IN EXPENSES ON FS 11,793. REIMBURSEMENT OF EXPENSES, NOT SHOWN ON 990 1,567,446. PART XI, LINE 4B - OTHER ADJUSTMENTS: FOREIGN EXCHANGE LOSS INCLUDED IN EXPENSES ON THE FS -3,880. GAIN ON FIXED ASSET DISPOSAL, INCLUDED IN EXPENSES ON FS 18,868. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES, INCLUDED IN EXPENSES ON FS 11,793. GAIN ON FIXED ASSET DISPOSAL, INCLUDED IN EXPENSES ON FS -18,868. FOREIGN EXCHANGE LOSS NETTED WITH EXPENSES ON THE FS 3,880. REIMBURSEMENT OF EXPENSES, NOT SHOWN ON 990 1,567,446. INVESTMENT WRITE DOWN, NOT SHOWN ON 990 10,775. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES RESEARCH EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES RESEARCH EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES RESEARCH 504788 NORTH AMERICA 0 0 PROGRAM SERVICES RESEARCH SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES RESEARCH 32500 SOUTH AMERICA 0 0 PROGRAM SERVICES RESEARCH SOUTH ASIA 0 0 PROGRAM SERVICES RESEARCH 0 0 0 0 0 0 537288 0 537288 0 0 0 0 0 0 0 DELAWARE COMMUNITY FOUNDATION 100 W 10TH ST SUITE 115 WILMINGTON DE 19801 222804785 501(C)(3) 10000 PROVIDE SCHOLARSHIPS TO ELIGIBLE STUDENTS AT THE UNIVERSTY OF DELAWARE, DELAWARE STATE UNIVERSITY, AND DELAWARE TECHNICAL AND COMMUNITE COLLEGE 1 PART I, LINE 2: FRAUNHOFER USA PARTICIPATES ON THE SCHOLARSHIP REVIEW COMMITTEE AND AS PART OF THE COMMITTEE MAKES DECISIONS ON WHICH STUDENTS SHOULD RECEIVE THE SCHOLARSHIPS, BASED ON THE CRITERIA. THE AWARD IS GIVEN TO THE SCHOOL, NOT THE STUDENT, TO GUARANTEE IT IS USED FOR TUITION. X X 1 1 X X 1 0 0 0 0 0 0 1 0 DR WILLIAM HARTMAN EXECUTIVE VICE PRESIDENT 260000 0 26000 0 0 0 31875 0 16333 0 334208 0 0 0 ERIN SIMMONDS TREASURER 128294 0 19244 0 0 0 16037 0 16396 0 179971 0 0 0 NOLAN BROWNE MANAGING DIRECTOR 164914 0 0 0 10780 0 21962 0 11703 0 209359 0 0 0 VIDADI YUSIBOV EXECUTIVE DIRECTOR 267000 0 0 0 0 0 31875 0 16396 0 315271 0 0 0 CHRISTIAN HOEPFNER CENTER DIRECTOR 180000 0 12600 0 0 0 22500 0 12813 0 227913 0 0 0 FRANK HERMAN MANAGING DIRECTOR 219021 0 35043 0 0 0 27378 0 16396 0 297838 0 0 0 ROBERT BLEIDT DIVISION GENERAL MANAGER 199985 0 39997 0 0 0 24998 0 5823 0 270803 0 0 0 HANS-PETER BAUMEISTER DIRECTOR OF COMMUNICATIONS 162978 0 29336 0 0 0 20372 0 12813 0 225499 0 0 0 CRAIG BRATT DIRECTOR OF LASER APPLICAT 157010 0 29832 0 0 0 19626 0 16396 0 222864 0 0 0 PART I, LINE 1A THERE IS NOT A WRITTEN POLICY SPECIFICALLY REGARDING FIRST CLASS TRAVEL. THE RULES AND PROCEDURES STATE THAT THE VP (FOR THE HEADQUARTERS) AND THE CENTER DIRECTOR (FOR THE CENTERS) HAVE THE AUTHORITY TO GRANT PERMISSION TO GO ON A BUSINESS TRIP AND AUTHORIZE REIMBURSEMENT FOR REASONABLE TRAVEL. FIRST CLASS TRAVEL IS NOT THE NORM FOR THE ORGANIZATION. DOMESTIC TRAVEL IS TYPICALLY UPGRADED AS A COURTESY OF THE AIRLINE DUE TO FREQUENT FLIER STATUS. INTERNATIONAL TRAVEL IS TYPICALLY UPGRADED USING MILES, HOWEVER, MAY OCCASIONALLY BE PURCHASED DUE TO THE NATURE OF THE FLIGHT AND OR BUSINESS MEETING NEEDS. THIS IS NOT INCLUDED IN TAXABLE INCOME. HEALTH CLUB DUES WERE PAID FOR ALL CSE EMPLOYEES WHO OPT TO HAVE THE MEMBERSHIP, INCLUDING NOLAN BROWN, MANAGING DIRECTOR. THIS IS INCLUDED IN TAXABLE INCOME. MEMBERSHIPS WERE EFFECTIVELY CANCELLED MARCH 1, 2013. HEALTH CLUB DUES PAID IN JANUARY AND FEBRUARY OF 2013 COST $40 PER MONTH. PART I, LINE 4A KATHLEEN DANGLE - RECEIVED SEVERANCE OF $59,695. PART I, LINE 7 THE PRESIDENT APPROVES THE BONUS POOL (AS A % OF TOTAL SALARIES, DESIGNATED AS "THE BONUS %") TO BE RECEIVED BY EACH CENTER (EXCLUDING CENTER DIRECTORS AND OFFICERS) UPON THE RECOMMENDATIONS OF THE EXECUTIVE VICE PRESIDENT AND INSTITUTE DIRECTORS. THIS RECOMMENDATION IS BASED ON: GROWTH IN THIRD PARTY REVENUE, FINANCIAL IMPROVEMENTS IN CONTROLLING COSTS RELATIVE TO REVENUE, FULFILLMENT OF THE NEEDS OF THE PARTNERING INSTITUTE(S), AND COMPLIANCE WITH FRAUNHOFER USA OPERATION PROCEDURES. THE GREATEST WEIGHT IS GIVEN TO GROWTH IN THIRD PARTY REVENUE AND FISCAL RESPONSIBILITY AND IMPROVEMENT. THE BONUSES PAID TO THE EMPLOYEES OUT OF THE BONUS POOL OF THE CENTER (EXCLUDING CENTER DIRECTORS) ARE AT THE DISCRETION OF THE CENTER DIRECTOR. THE CENTER DIRECTOR MAY ALLOCATE BONUSES TO THE EMPLOYEES WITHIN A RANGE OF 0% BONUS TO A MAXIMUM BONUS OF 30% OF THE EMPLOYEE'S ANNUAL SALARY. THE TOTAL OF THE BONUSES FOR EACH CENTER SHALL NOT EXCEED THE BONUS POOL. THE CENTER DIRECTOR WILL BASE THEIR DECISIONS ON THE ANNUAL APPRAISAL GIVEN TO EACH EMPLOYEE. THE BONUSES OF OFFICERS OF THE CORPORATION AND CENTER DIRECTORS WILL BE APPROVED BY THE BOARD OF DIRECTORS UPON THE RECOMMENDATION OF THE PRESIDENT. FORM 990, PART VI, SECTION A, LINE 6 FRAUNHOFER-GESELLSCHAFT, A GERMAN NOT-FOR-PROFIT ORGANIZATION, IS THE SOLE MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A FOUR INDIVIDUALS AT FRAUNHOFER USA'S PARENT COMPANY, FRAUNHOFER-GESELLSCHAFT, ELECT THE BOARD MEMBERS OF FRAUNHOFER USA. PROF. REIMUND NEUGEBAUER IS ONE OF THE INDIVIDUALS AT FRAUNHOFER-GESELLSCHAFT WHO ELECTS THE BOARD OF FRAUNHOFER USA. PROF. REIMUND NEUGEBAUER IS THE CHAIRMAN OF FRAUNHOFER USA. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE TREASURER, OR OTHER OFFICER SIGNING THE RETURN, REVIEWS THE RETURN BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES ARE REQUIRED TO DISCLOSE IF THEY DO OR DO NOT HAVE A CONFLICT OF INTEREST TO REPORT AS A PART OF THEIR PERFORMANCE APPRAISAL. BOARD OF DIRECTOR MEMBERS ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS TO THE VICE PRESIDENT. CENTER DIRECTORS ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS TO THE HUMAN RESOURCES DIRECTOR. EACH OF THESE DISCLOSURES ARE PERFORMED ANNUALLY. IF A CONFLICT OF INTEREST EXISTS, THE INDIVIDUAL MAY HAVE TO DISASSOCIATE THEMSELVES FROM THE TRANSACTION OR THE COMPANY IN QUESTION. FORM 990, PART VI, SECTION B, LINE 15 FORM 990, PART VI, SECTION B, LINE 15: THE BOARD OF DIRECTORS HAS THE AUTHORITY TO DECIDE ON THE SALARY FOR THE PRESIDENT. THE PRESIDENT HAS THE AUTHORITY TO DECIDE ON THE SALARY FOR THE EXECUTIVE VICE-PRESIDENT AND CENTER DIRECTORS. SUBJECT TO THE APPROVAL OF THE PRESIDENT, THE AUTHORITY TO DECIDE ON SALARIES AND SALARY RAISES FOR ALL OTHER EMPLOYEES IS WITH: 1) EXECUTIVE VICE-PRESIDENT FOR EMPLOYEES AT THE HEADQUARTERS AND 2) CENTER DIRECTOR FOR EMPLOYEES AT THE RESPECTIVE FRAUNHOFER CENTER. THE SALARY OF THE TREASURER IS APPROVED BY THE PRESIDENT AND EXECUTIVE VICE-PRESIDENT. FORM 990, PART VI, SECTION C, LINE 19 THE DOCUMENTS ARE MAINTAINED ON FILE AT THE ORGANIZATION'S HEADQUARTERS AND ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: INVESTMENT WRITEDOWN -10,775. FORM 990, PART XII, LINE 2C: THE WHOLE BOARD OVERSEES THE AUDIT. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. FORM 990, PART VII, SECTION A, COLUMN E AND F HANS-JOERG BULLINGER, REIMUND NEUGEBAUER, AND GEORG ROSENFELD RECEIVE COMPENSATION FROM THE PARENT ORGANIZATION OF FRAUNHOFER USA, FRAUNHOFER-GESELLSCHAFT. FRAUNHOFER USA DOES NOT HAVE ACCESS TO COMPENSATION INFORMATION OF FRAUNHOFER-GESELLSCHAFT. THE TREASURER OF FRAUNHOFER USA REQUESTED THE COMPENSATION INFORMATION FROM FRAUNHOFER-GESELLSCHAFT IN 2008 AND WAS INFORMED THAT THE SALARY INFORMATION WOULD NOT BE AVAILABLE. THE PARENT ORGANIZATION IS LOCATED IN GERMANY AND HAS A VASTLY DIFFERENT SALARY STRUCTURE AND AMOUNTS WOULD NOT BE APPROPRIATELY COMPARABLE TO THE SALARIES FROM FRAUNHOFER USA. FRAUNHOFER GESELLSCHAFT POSTFACH 200733 MUNCHEN GERMANY GM 80007 PARENT COMPANY - PROVIDE FUNDING GM N/A 0 0 0 1 0 1 0 0 0 0 0 0 1 1 0 1 0 1 0 0