2012-05-15T17:12:18-05:00 2011-06-30 O'CONNOR DAVIES MUNNS & DOBBINS LLP 60 EAST 42ND STREET 36TH FL NEW YORK NY 101653698 990 2010-07-01 112104059 NEW YORK HALL OF SCIENCE NEWY 7186990005 47-01 111TH STREET CORONA NY 11368 MARGARET HONEY 7186990005 2012-05-15 1 2122862600 2010 2016-02-24 21:20:13Z MARGARET HONEY 47-01 111TH STREET CORONA NY 11368 23189106 0 X HTTP://WWW.NYSCI.ORG X 1964 NY THE NEW YORK HALL OF SCIENCE ("NYSCI") IS NEW YORK CITY'S HANDS-ON SCIENCE AND TECHNOLOGY CENTER. RESPONDING DIRECTLY TO THE CRITICAL NEED FOR IMPROVED SCIENCE EDUCATION IN AMERICA, NYSCI BRINGS THE EXCITEMENT AND UNDERSTANDING OF SCIENCE AND TECHNOLOGY TO CHILDREN, FAMILIES, TEACHERS, AND OTHERS BY GALVANIZING THEIR CURIOSITY AND OFFERING THEM CREATIVE, PARTICIPATORY WAYS TO LEARN. LOCATED IN QUEENS, THE MOST ETHNICALLY DIVERSE COUNTY IN THE COUNTRY, NYSCI OFFERS OVER 400 INTERACTIVE EXHIBITS THAT EXPLORE CHEMISTRY, BIOLOGY, PHYSICS, GENETICS, AND MUCH MORE. THESE EXHIBITS, COUPLED WITH THE YOUNG, DIVERSE, AND ENTHUSIASTIC EXPLAINER FLOOR STAFF, MAKE NYSCI A LABORATORY OF DISCOVERY THAT SERVES OVER 375,000 VISITORS EACH YEAR, WITH AN ADDITIONAL 150,000 PARTICIPATING IN OFF-SITE, SCHOOL-BASED OUTREACH PROGRAMS. 32 32 360 77 0 0 16753717 17964469 2518067 2731702 161146 258890 635070 793669 20068000 21748730 309843 304733 0 0 7390544 7804256 260000 527504 2434669 7276072 7423984 15236459 16060477 4831541 5688253 59726893 66095365 1145900 1509426 58580993 64585939 X NYSCI BRINGS THE EXCITEMENT AND UNDERSTANDING OF SCIENCE AND TECHNOLOGY TO CHILDREN, FAMILIES, TEACHERS AND OTHERS BY GALVANIZING THEIR CURIOSITY AND OFFERING THEM CREATIVE AND PARTICIPATORY WAYS TO LEARN. 0 0 4900181 1709816 EXHIBITIONS:NYSCI OFFERS AN UNPARALLELED RANGE OF 450 INTERACTIVE EXHIBITS THAT EXPLORE CHEMISTRY, BIOLOGY, ASTRONOMY, PHYSICS, GENETICS, AND MUCH MORE, ALL GEARED FOR CHILDREN AND ADULTS. BY COMBINING THESE EXHIBITS WITH THE OUTDOOR SCIENCE PLAYGROUND, ROCKET PARK MINI GOLF, THE BIOCHEMISTRY, ASTRONOMY AND CONNECTIONS DISCOVERY LABS, THE PRESCHOOL PLACE FOR EARLY CHILDHOOD LEARNING, THE HARCOURT TEACHER LEADERSHIP CENTER FOR OUR ENHANCED TEACHER TRAINING PROGRAMS, AND NATIONALLY REPLICATED SCIENCE EDUCATION PROGRAMS FOR UNDERSERVED POPULATIONS, NYSCI OFFERS A HIGH-TECH, HANDS-ON LABORATORY OF DISCOVERY FOR VISITORS OF ALL AGES. IN FISCAL YEAR 2011, NYSCI SERVED A NEAR RECORD NUMBER OF 500,000 VISITORS. 3508206 672877 EDUCATION:SCIENCE CAREER LADDER: A YOUTH DEVELOPMENT PROGRAM THAT TRAINS A CADRE OF 150 NEW YORK CITY HIGH SCHOOL AND COLLEGE STUDENTS TO WORK AS EXHIBIT FLOOR GUIDES TO INTERACT WITH AND INSTRUCT VISITORS.AFTER SCHOOL PROGRAMS: PROVIDE ELEMENTARY THROUGH HIGH SCHOOL STUDENTS WITH HANDS-ON LEARNING. IN CALENDAR YEAR 2010, 2,990 YOUNGSTERS PARTICIPATED IN WORKSHOPS, CLUBS, CAMPS AND OUTREACH ACTIVITIES DESIGNED TO TEACH THE BASIC PRINCIPLES OF CHEMISTRY, PHYSICS, BIOLOGY, ECOLOGY, FORENSICS AND OTHER SCIENTIFIC DISCIPLINES.PROFESSIONAL DEVELOPMENT: EACH YEAR APPROXIMATELY 4,500 TEACHERS PARTICIPATE IN NYSCI'S PROFESSIONAL DEVELOPMENT PROGRAMS, EFFECTIVELY REACHING SOME 300,000 STUDENTS ANNUALLY.INFORMAL SCIENCE EDUCATION: WITH A $1.4 MILLION GRANT FROM NSF, NYSCI IS COLLABORATING WITH THE NSF QUALITY OF LIFE TECHNOLOGY ENGINEERING RESEARCH CENTER OF THE UNIVERSITY OF PITTSBURGH AND CARNEGIE MELLON UNIVERSITY TO DEVELOP AN INTERACTIVE TRAVELING EXIBITION ENTITLED HUMAN +. THE GOAL OF THE EXHIBITION IS TO ENGAGE THE PUBLIC IN THE PROFOUNDLY CREATIVE PROCESS OF HUMAN ENHANCEMENT ENGINEERING.DIGITAL LEARNING AND THE VIRTUAL VISIT PROGRAM: NYSCI PROVIDES INTERACTIVE DISTANCE LEARNING TO SCHOOLS, LIBRARIES, COMMUNITY CENTERS AND HOSPITALS. IN FISCAL YEAR 2011, NYSCI DELIVERED 200 VIRTUAL VISITS REACHING AN AUDIENCE OF 6,400. 1143887 148939 PUBLIC PROGRAMS:SCIENCE TECHNOLOGY LIBRARY: FEATURES A WIDE VARIETY OF BOOKS, MEDIA, JOURNALS AND LESSON PLANS. APPROXIMATELY 29,000 VISITORS INCLUDING 500 TEACHERS USED THE LIBRARY DURING FISCAL YEAR 2011.PRESCHOOL EDUCATION: THE PRESCHOOL PLACE IS A 3,000 SQUARE FOOT AREA THAT CONTAINS PROGRAMS AND EXHIBITS FOR CHILDREN UNDER THE AGE OF SIX. IN FISCAL YEAR 2011, 88,225 VISITORS (84,500 FAMILIES & 3,725 SCHOOL GROUPS) AND CAME TO THE PRESCHOOL PLACE.SCIENCE THEATER: A COMBINATION OF THEATER MIXED WITH SCIENTIFIC CONTENT THAT ENCOURAGES CHILDREN TO PARTICIPATE WITH CHARACTERS TO CREATE AN INTERACTIVE EXPERIENCE. 2361528 304733 200070 DEVELOPMENT OF SPECIAL SCIENTIFIC PROGRAMS AND EVENTS 2361528 304733 200070 11913802 1 1 0 1 0 0 1 0 1 1 0 0 0 0 1 1 0 0 0 0 0 0 1 1 0 0 1 0 1 0 0 0 0 0 1 0 1 1 1 0 0 0 0 0 0 0 0 1 96 0 1 360 1 0 0 0 0 0 1 1 0 0 0 0 X 32 32 1 0 1 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 X X MARGARET HONEY PRESIDENT & CEO 7186990005 47-01 111TH STREET CORONA NY 11368 IVAN G SEIDENBERG 0.30 X X 0 0 0 NICHOLAS M DONOFRIO 1.50 X X 0 0 0 DON CALLAHAN 1.00 X X 0 0 0 MELISSA VAIL 3.00 X X 0 0 0 SIBYL R GOLDEN 1.00 X X 0 0 0 MARTIN R KUPFERBERG 2.00 X X 0 0 0 ANTHONY K ASNES 0.50 X 0 0 0 BONNIE ROCHE-BRONFMAN 1.00 X 0 0 0 DR GEORGE CAMPBELL JR 2.00 X 0 0 0 ANTHONY CIOFFI 2.00 X 0 0 0 RAVENEL B CURRY III 1.00 X 0 0 0 FRANCISCO D'SOUZA 1.00 X 0 0 0 LEON DEMAILLE 1.50 X 0 0 0 ERIK DOCHTERMANN 2.00 X 0 0 0 SETH H DUBINESQ 1.50 X 0 0 0 JOSEPH R FICALORA 1.00 X 0 0 0 DAVID CHRISTMAN 2.00 X 0 0 0 JOHN J GILBERT III 5.00 X 0 0 0 EDWARD D HOROWITZ 1.00 X 0 0 0 SHANKAR NARAYNAN 1.50 X 0 0 0 JEFFREY R LIBSHUTZ 0.50 X 0 0 0 YVONNE LIU 1.00 X 0 0 0 PAUL MALCHOW 2.00 X 0 0 0 MARY JANE MCCARTNEY 2.00 X 0 0 0 JOEL H MOSER ESQ 2.00 X 0 0 0 DAVID NEWMAN 1.00 X 0 0 0 JANE FEARER SAFER 1.50 X 0 0 0 SARA LEE SCHUPF 1.00 X 0 0 0 ALAN SINSHEIMER ESQ 1.00 X 0 0 0 CLAUDE TRAHAN 2.00 X 0 0 0 BERT WELLS ESQ 2.00 X 0 0 0 KURT D WOETZEL 1.00 X 0 0 0 SAMUEL FLORMAN RESIGNED 311 1.00 X 0 0 0 MARK KAPLANRESIGNED 1210 1.00 X 0 0 0 MARK PIRNERRESIGNED 111 1.00 X 0 0 0 ROBERT ROTHSCHILDRESIGNED 1211 1.00 X 0 0 0 HOWARD SZARFARCRESIGNED 611 1.00 X 0 0 0 GRETCHEN TEICHGRAEBERRESIGNED 1010 1.00 X 0 0 0 JAMES WHALEYRESIGNED 22011 1.00 X 0 0 0 MARGARET HONEY 35.00 X 259664 0 37653 PATRICIA HUIE 35.00 X 106876 0 11195 ROBERT LOGAN 35.00 X 151994 0 20752 ERIC SIEGEL 35.00 X 160696 0 29811 FRANK M DUUS JR 35.00 X 153761 0 23932 PREETI GUPTA 35.00 X 107166 0 17985 DANNY WEMPA 35.00 X 111882 0 14312 1052039 0 155640 7 0 1 0 COMMUNITY COUNSELLING SERVICE CO LLC PO BOX 27462 NEW YORK NY 100877462 CONSULTING FOR FUNDRAISING CAMPAIGN 395000 1 545665 938003 2691963 13788838 262035 17964469 ADMISSIONS 713990 1862903 1862903 EDUCATION & TRAINING F 611710 517258 517258 PUBLIC PROGRAMS 611710 351541 351541 2731702 17160 17160 520066 130339 389727 389727 389727 1401098 1159368 241730 241730 241730 361923 938003 150669 211254 211254 PARKING LOT INCOME 812930 121114 121114 RESTAURANT 722200 44224 44224 MISCELLANEOUS REVENUE 900099 27350 27350 192688 21748730 2731702 0 1052559 304733 304733 1026175 204674 580556 240945 5001000 3898704 409636 692660 347281 264267 29233 53781 952372 719857 86017 146498 477428 342118 58243 77067 1269236 1018161 68130 182945 11945 8406 3513 26 25545 25545 230079 230079 527504 527504 10689 917 7725 2047 239392 193347 37134 8911 601631 383682 100532 117417 642855 622962 13527 6366 279768 217091 35918 26759 3003437 2929863 35909 37665 195591 190709 2515 2367 RENTAL/MAINT EQUIP./EXH 451292 345585 75192 30515 OTHER OPERATING EXPENSE 230826 75283 124913 30630 PARTICIPANT COSTS 94316 94316 NONCAPTIALIZED EQUIP 94284 73344 12584 8356 BOOKS,DUES & SUB 43098 25783 5184 12131 16060477 11913802 1712006 2434669 355211 2232177 2791815 2740169 3069010 8449026 131541 155391 209114 228227 68030271 18285457 51261926 49744814 1900429 2532895 7847 12666 59726893 66095365 737615 1261084 408285 248342 1145900 1509426 X 4225762 4872236 54020231 59378703 335000 335000 58580993 64585939 59726893 66095365 X 5688253 316693 X X 0 1 1 X 1 1 X 8598208 9610690 11205415 16753717 17964469 64132499 8598208 9610690 11205415 16753717 17964469 64132499 809545 63322954 750530 786959 503125 556026 537226 3133866 336700 495012 468824 197679 192688 1690903 68957268 14458675 0.91830 0.92260 X SCHEDULE A, PART IV, SUPPLEMENTAL INFORMATION: SCHEDULE A, PART II, LINE 10 - EXPLANATION FOR OTHER INCOME: OTHER INCOME FOR ALL YEARS INCLUDES PARKING AND RESTAURANT REVENUE PROVIDED FOR THE CONVENIENCE OF GUESTS AS WELL AS OTHER MISCELLANEOUS REVENUE AMOUNTS. RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 3249 0 1 226830 230079 0 EXPLANATION OF OTHER LOBBYING ACTIVITIES: PART II-B, LINE 1I: NEW YORK HALL OF SCIENCE HAS RETAINED COUNSEL TO MONITOR APPROPRIATIONS ACTIVITY AND CONTACT GOVERNMENT OFFICIALS REGARDING SCIENCE FUNDING AND FUNDING FOR NYSCI WITH RESPECT TO THE UNITED STATES, NEW YORK STATE AND NEW YORK CITY GOVERNMENTS. X X 0 1663190 360 190818 -107062 -12952 1734354 1744496 5089 137599 -208492 -15502 1663190 2000112 -255616 1744496 0.69000 0.31000 0 0 66597805 17930178 48667627 1432466 355279 1077187 49744814 21748730 16060477 5688253 316693 316693 6004946 22739912 316693 393481 281008 991182 21748730 0 21748730 16734966 393481 281008 674489 16060477 0 16060477 PART III, LINE 1A: CONSISTENT WITH THE POLICY OF MANY MUSEUMS, PURCHASES FOR USE AS EXHIBITS AND PROGRAMS ARE NOT CAPITALIZED. PART III, LINE 4: NYSCI HAS APPROXIMATELY 450 INTERACTIVE EXHIBITS THAT EXPLORE CHEMISTRY, BIOLOGY, ASTRONOMY, PHYSICS, GENETICS, AND OTHER STEM (SCIENCE, TECHNOLOGY, ENGINEERING AND MATH) TOPICS, ALL GEARED FOR CHILDREN AND ADULTS. THESE EXHIBITS, COMBINED WITH THE OUTDOOR SCIENCE PLAYGROUND, ROCKET PARK MINI GOLF, THE BIOCHEMISTRY, ASTRONOMY AND CONNECTIONS DISCOVERY LABS, THE PRESCHOOL PLACE FOR EARLY CHILDHOOD LEARNING, THE HARCOURT TEACHER LEADERSHIP CENTER FOR ENHANCED TEACHER TRAINING PROGRAMS, AND NATIONALLY REPLICATED SCIENCE EDUCATION PROGRAMS FOR UNDERSERVED POPULATIONS, OFFER A HIGH-TECH HANDS-ON LABORATORY OF DISCOVERY FOR VISITORS OF ALL AGES. THE EXHIBITS SERVE A CRITICAL ROLE IN REALIZING NYSCI'S MISSION TO BRING THE EXCITEMENT AND UNDERSTANDING OF SCIENCE AND TECHNOLOGY TO CHILDREN, FAMILIES, TEACHERS AND OTHERS BY OFFERING CREATIVE AND PARTICIPATORY WAYS TO LEARN ABOUT STEM TOPICS. DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: NYSCI MAINTAINS VARIOUS DONOR RESTRICTED FUNDS WHOSE PURPOSE IS TO PROVIDE LONG-TERM SUPPORT FOR ITS PROGRAMS IN EXHIBITIONS, EDUCATION, PUBLIC PROGAMS AND SPECIAL PROJECTS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X: NYSCI RECOGNIZES THE EFFECT OF INCOME TAX POSITIONS ONLY WHEN THEY ARE MORE LIKELY THAN NOT OF BEING SUSTAINED. MANAGEMENT HAS DETERMINED THAT NYSCI HAD NO UNCERTAIN TAX POSITIONS THAT WOULD REQUIRE FINANCIAL STATEMENT RECOGNITION. NYSCI IS NO LONGER SUBJECT TO AUDITS BY THE APPLICABLE TAXING JURISDICTIONS FOR PERIODS PRIOR TO JUNE 30, 2008. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED ON PART VIII LINE 6B 130,339. DIRECT EXPENSE FOR FUNDRAISING GALA REPORTED ON PART VIII LINE 8B 150,669. PART XIII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES REPORTED ON PART VIII LINE 6B 130,339. DIRECT EXPENSE FOR FUNDRAISING GALA REPORTED ON PART VIII LINE 8B 150,669. X X X X X X 1 COMMUNITY COUNSELING SERVICE PO BOX 27462 NEW YORK NY 10087 PLAN/DEVELOP 5 YR FUND-RAISING CAMPAIGN 0 6842899 395000 6447899 RESOURCE AND EVENT MANAGEMENT LTD 342 MADISON AVENUE SUITE 1133 NEW YORK NY 10173 CONSULTANT 0 1299926 132504 1167422 8142825 527504 7615321 NY ANNUAL GALA 1299926 938003 361923 106015 44654 1299926 938003 361923 106015 44654 150669 211254 1 CAPITAL EXHIBITS SERVICES INC 12299 LIVINGSTON ROAD MANASSASS VA 20109 541475244 N/A 156268 PAYMENT FOR SERVICES RENDERED IN CONNECTION WITH A FEDERAL RESEARCH GRANT FOCUSING ON EDUCATION AND HUMAN RESOURCES INSTITUTE FOR LEARNING INNOVATION 166 WEST STREET ANNAPOLIS MD 21401 521467051 501(C)(3) 57184 PAYMENT FOR SERVICES RENDERED IN CONNECTION WITH A FEDERAL RESEARCH GRANT FOCUSING ON EDUCATION AND HUMAN RESOURCES OREGON MUSEUM OF SCIENCE & INDUSTRY 1945 SE WATER AVENUE PORTLAND OR 972143354 930402877 501(C)(3) 85773 PAYMENT FOR SERVICES RENDERED IN CONNECTION WITH A FEDERAL RESEARCH GRANT FOCUSING ON EDUCATION AND HUMAN RESOURCES UNIVESTITY OF PITTSBURGH 123 UNIVERSITY PLACE PITTSBURGH PA 15213 250965591 501(C)(3) 5508 PAYMENT FOR SERVICES RENDERED IN CONNECTION WITH A FEDERAL RESEARCH GRANT FOCUSING ON EDUCATION AND HUMAN RESOURCES 3 1 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE SUBCONTRACTOR IS REQUIRED TO SUBMIT A BUDGET FOR APPROVAL. ONCE APPROVED, NYSCI MAINTAINS THE BUDGET IN ITS ACCOUNTING SYSTEM AND MONITORS GRANT EXPENSES AGAINST THIS BUDGET. PAYMENT TO THE SUBCONTRACTOR IS USUALLY IN THE FORM OF REIMBURSEMENTS. SUBCONTRACTOR IS REQUIRED TO SUBMIT RECEIPTS AND SUPPORTING DOCUMENTATION IN ORDER TO BE REIMBURSED. DEPENDING ON THE PROJECT, INTERIM PROGRESS REPORTS MAY BE REQUIRED. A FINAL REPORT AND ACCOUNTING STATEMENT IS USUALLY REQUIRED AT THE END OF THE PROJECT. AT ITS DISCRETION, NYSCI RESERVES THE RIGHT TO AUDIT THE SUBCONTRACTOR'S FINANCIAL RECORDS. X X X X X 0 0 0 0 0 0 0 0 0 MARGARET HONEY 259664 0 0 0 0 0 25148 0 12505 0 297317 0 0 0 ROBERT LOGAN 151994 0 0 0 0 0 14465 0 6287 0 172746 0 0 0 ERIC SIEGEL 160696 0 0 0 0 0 16295 0 13516 0 190507 0 0 0 FRANK M DUUS JR 153761 0 0 0 0 0 11393 0 12539 0 177693 0 0 0 ERIK DOCHTERMANN CEO OF KD&E AND BOARD OF TRUSTEE MEMBER 40000 KD&E, AN ADVERTISING AND MARKETING AGENCY, PRODUCED BILLBOARDS FOR NYSCI 0 IVAN SEIDENBERG CHAIRMAN/CEO OF VERIZON AND CO CHAIR OF THE BOARD FO TRUSTEES 35655 VERIZON PROVIDES TELECOMMUNICATIONS SERVICES TO NYSCI 0 ALBERT WELLS SPOUSE OF PRESIDENT/CEO OF NY PUBLIC RADIO AND BOARD OF TRUSTEE MEMBER 15000 NYSCI RECEIVED ON-AIR MARKETING SUPPORT FROM WNYC IN RETURN FOR UNDERWRITING A PAYMENT AS A CULTURAL ARTS PARTNER 0 0 X 5 262035 FAIR VALUE 0 1 0 FORM 990, PART VI, SECTION A, LINE 2 BOARD OF TRUSTEE MEMBER ALAN SINSHEIMER AND BOARD OF TRUSTEE MEMBER SETH DUBIN HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 4 NYSCI'S BOARD OF TRUSTEES APPROVED THE FOLLOWING REVISIONS TO ITS BY-LAWS ON DECEMBER 15, 2010: 1. HAVE THE EXECUTIVE COMMITTEE BE COMPOSED OF THE CO-CHAIRS AND OFFICERS, AND THE CHAIRS OF ALL OF THE STANDING COMMITTEES; 2. ADD TO THE LIST OF STANDING COMMITTEES THE EXHIBITION AND EDUCATION COMMITTEE, A COMMITTEE THAT WAS NOT PREVIOUSLY ADDRESSED IN THE BYLAW; 3. REMOVE THE PERSONNEL COMMITTEE, WHICH HAS NOT BEEN IN OPERATION FOR SOME TIME, AND EMPOWER THE EXECUTIVE COMMITTEE TO HANDLE CEO COMPENSATION AND OTHER PERSONAL MATTERS; 4. CLARIFY THE ROLE OF PRESIDENT; AND 5. REVISE LANGUAGE AROUND THE APPOINTMENT OF AN EMERITUS TRUSTEE. NOTIFICATION OF PROPOSED CHANGES ARE RECOMMENDED TO THE BOARD A MINIMUM OF TEN DAYS PRIOR TO THE BOARD MEETING IN WHICH THEY WOULD BE VOTED ON. FORM 990, PART VI, SECTION B, LINE 11 THE CHIEF FINANCIAL OFFICER ENGAGED AN EXTERNAL ACCOUNTING FIRM TO PREPARE FORM 990. THE FIRST DRAFT WAS REVIEWED WITH SENIOR MANAGEMENT. FORM 990 WAS THEN PROVIDED TO EACH VOTING MEMBER ELECTRONICALLY VIA EMAIL FOR REVIEW AND COMMENT BEFORE FILING. THE CHIEF FINANCIAL OFFICER COORDINATED DISTRIBUTION TO THE BOARD, AND IN CONJUNCTION WITH THE CHIEF EXECUTIVE OFFICER, RESPONDED TO COMMENTS AND QUESTIONS. FORM 990 WAS FILED AFTER REVIEW AND COMMENT BY THE BOARD. FORM 990, PART VI, SECTION B, LINE 12C NYSCI'S TRANSPARENCY POLICY INTRODUCTION THE INTERNAL REVENUE CODE IMPOSES PENALTY TAXES IF NYSCI WERE TO ENTER INTO AN EXCESS BENEFIT TRANSACTION WITH A TRUSTEE OR OFFICER OF NYSCI OR WITH ANYONE ELSE WHO, DURING THE PRIOR FIVE YEARS, HAS BEEN IN A POSITION TO EXERCISE SUBSTANTIAL INFLUENCE OVER THE AFFAIRS OF NYSCI. A SIMILAR CONCERN ABOUT CONFLICTS OF INTEREST ALSO INFORMS THE NEW YORK NOT-FOR-PROFIT LAW PROVISIONS ABOUT CONTRACTS INVOLVING NOT-FOR-PROFIT ORGANIZATIONS AND THEIR TRUSTEES AND OFFICERS. NYSCI HAS ALWAYS BEEN CAREFUL TO AVOID CONFLICTS ISSUES. NEVERTHELESS, IT IS APPROPRIATE TO SET OUT NYSCI'S POLICY IN A WRITTEN STATEMENT WHICH DRAWS FROM THE REQUIREMENTS OF FEDERAL AND STATE LAW AND ALSO FROM OTHER PRINCIPLES OF GOOD MANAGEMENT. DEFINITIONS: A PERSON WHO HAS "SUBSTANTIAL INFLUENCE OVER THE AFFAIRS OF NYSCI" MEANS EACH TRUSTEE AND EACH SENIOR OFFICER OF NYSCI INCLUDING ALL NYSCI EMPLOYEES WHO ARE AT THE LEVEL OF DIRECTOR OR ABOVE. FOR OUR PURPOSES, IT ALSO MEANS A CORPORATION IN WHICH A TRUSTEE OR A SENIOR OFFICER IS A DIRECTOR OR OFFICER OR CONTROLS AT LEAST 10% OF THE VOTING POWER AND A PARTNERSHIP IN WHICH A TRUSTEE OR A SENIOR OFFICER IS ENTITLED TO AT LEAST 10% OF THE PROFITS. WE CALL EACH OF THOSE PEOPLE AND ENTITIES AN "INFLUENTIAL PERSON." THAT ALSO INCLUDES AN INDIVIDUAL'S SPOUSE OR SIGNIFICANT OTHER, PARENTS, CHILDREN AND THEIR SPOUSES, SISTERS AND BROTHERS, AND SISTERS- AND BROTHERS-IN-LAW. AN EXCESS BENEFIT TRANSACTION IS A TRANSACTION IN WHICH NYSCI PROVIDES TO AN INFLUENTIAL PERSON AN ECONOMIC BENEFIT THAT IS WORTH MORE THAN THE GOODS OR SERVICES THAT NYSCI RECEIVES IN RETURN. THE "REVIEWER" IS THE COMMITTEE DESIGNATED BY THE CHAIRMAN TO REVIEW TRANSACTIONS THAT REQUIRE AUTHORIZATION UNDER THIS POLICY STATEMENT. REVIEW: WITHOUT FIRST RECEIVING AUTHORIZATION FROM THE REVIEWER: A) NYSCI MAY NOT DO BUSINESS WITH AN INFLUENTIAL PERSON; B) NO INFLUENTIAL PERSON MAY ACCEPT A GIFT OR LOAN (OTHER THAN A LOAN IN THE NORMAL COURSE OF THE LENDER'S BUSINESS) FROM A CONTRACTOR OR VENDOR OF NYSCI AND THAT HAS A VALUE OF MORE THAN $100; C) NYSCI MAY NOT MAKE A CONTRIBUTION TO ANY CHARITY OF WHICH AN INFLUENTIAL PERSON IS A DIRECTOR OR OFFICER; AND D) NO INFLUENTIAL PERSON MAY GIVE OR LOAN TO AN EMPLOYEE OF NYSCI, NOR MAY AN EMPLOYEE OF NYSCI GIVE OR LOAN TO AN INFLUENTIAL PERSON, MORE THAN $1,000. THE REVIEWER MAY DECLINE TO GRANT AUTHORIZATION FOR A TRANSACTION UNDER (A) ONLY IF THE REVIEWER DETERMINES THAT THE PROPOSED TRANSACTION WOULD BE AN EXCESS BENEFIT TRANSACTION. THE REVIEWER MAY DECLINE TO GRANT AUTHORIZATION FOR A TRANSACTION UNDER (B), (C), OR (D) ONLY IF THE REVIEWER DETERMINES THAT THE PROPOSED TRANSACTION WOULD BE INIMICAL, OR MAY BE SEEN TO BE INIMICAL, TO RESPONSIBLE MANAGEMENT OF NYSCI. LARGE CONTRACTS: BEFORE NYSCI ENTERS INTO ANY AGREEMENT FOR MORE THAN $100,000, IT SHALL NOTIFY THE REVIEWER OF THE NATURE OF THE AGREEMENT AND THE NAME OF THE OTHER PARTY AND FURNISH WHATEVER INFORMATION IT HAS IN ITS POSSESSION ABOUT THE OWNERSHIP AND CONTROL OF THE OTHER PARTY. THE REVIEWER SHALL BE DEEMED TO HAVE AUTHORIZED NYSCI TO ENTER INTO THE AGREEMENT UNLESS IT NOTIFIES NYSCI WITHIN SEVEN DAYS THAT THE AGREEMENT CONTEMPLATES A TRANSACTION THAT, BY REASONS OF THE IDENTITY OF THE PARTIES, REQUIRES FURTHER REVIEW UNDER THIS POLICY STATEMENT. NOTIFICATION: EACH INFLUENTIAL PERSON MUST NOTIFY THE REVIEWER UPON BECOMING AWARE THAT NYSCI IS DOING BUSINESS, OR IS CONSIDERING DOING BUSINESS, WITH THAT INFLUENTIAL PERSON. IN ADDITION, ONCE EACH YEAR AT A TIME DESIGNATED BY THE CHAIRMAN, EACH INFLUENTIAL PERSON SHALL SUBMIT TO THE REVIEWER A COMPLETED QUESTIONNAIRE IN THE FORM ATTACHED TO THIS POLICY STATEMENT. REPETITIVE BUSINESS: IN THE EVENT THAT AN INFLUENTIAL PERSON AND NYSCI EXPECT TO ENGAGE IN REPETITIVE BUSINESS, THE REVIEWER MAY PROSPECTIVELY AUTHORIZE THE CONDUCT OF THAT BUSINESS ON TERMS THAT THE REVIEWER CONSIDERS APPROPRIATE. NO FURTHER AUTHORIZATION FOR THAT REPETITIVE BUSINESS SHALL BE REQUIRED SO LONG AS THE INFLUENTIAL PERSON AND NYSCI COMPLY WITH THE TERMS SET BY THE REVIEWER. THE REVIEWER MAY REVOKE A PROSPECTIVE AUTHORIZATION AT ANY TIME. RECONSIDERATION: IF THE REVIEWER DECLINES TO AUTHORIZE ANY TRANSACTION THAT REQUIRES AUTHORIZATION UNDER THIS POLICY STATEMENT, ANY PARTY TO THAT TRANSACTION MAY SUBMIT THE MATTER TO THE BOARD OF TRUSTEES OR THE EXECUTIVE COMMITTEE OF THE BOARD FOR RECONSIDERATION. THE RELEVANT INFLUENTIAL PERSON MAY NOT VOTE ON THAT MATTER AS A TRUSTEE OR MEMBER OF THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15 COMPENSATION FOR THE CEO IS REVIEWED AND APPROVED BY THE BOARD OF TRUSTEES, PROVIDED THAT PERSONS WITH POTIENTIAL CONFLICT OF INTEREST WITH RESPECT TO THE COMPENSATION ARRANGEMENTS DO NOT PARTICIPATE. THE BOARD USES APPROPRIATE AND ADEQUATE DATA TO DETERMINE THE REASONABLENESS OF THE COMPENSATION BEING CONSIDERED AGAINST INDUSTRY STANDARDS. FOR KEY EMPLOYEES, THE CEO USES INDUSTRY STANDARDS SUBSTANTIATED BY APPROPRIATE DATA SUCH AS COMPENSATION SURVEYS, PERFORMANCE REVIEWS, AND A CONSIDERATION OF EQUITY AND PARITY WITHIN THE ORGANIZATION. THE COMPENSATION REVIEW PROCESS WAS LAST UNDERTAKEN FOR THE CEO AND KEY EMPLOYEES IN THE YEARS LISTED BELOW: PRESIDENT & CEO: 2011 DIRECTOR & CHIEF CONTENT OFFICER: 2008 CHIEF FINANCIAL OFFICER: 2011 EXECUTIVE VP & COO: 2011 VP INSTITUTIONAL ADVANCEMENT: 2011 FORM 990, PART VI, SECTION C, LINE 19 GOVERNING DOCUMENTS AND CONFLICT OF INTEREST POLICY HAVE NEVER BEEN REQUESTED AND HAVE NOT BEEN MADE READILY AVAILABLE TO THE PUBLIC. FINANCIAL STATEMENTS ARE AVAILABLE UPON REQUEST. HARD COPIES ARE PROVIDED WITH A CHARGE TO THE RECIPIENT FOR POSTAGE. ELECTRONIC COPIES IN PDF FORMAT ARE PROVIDED FOR FREE. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 5: NET UNREALIZED GAINS ON INVESTMENTS: 316,693. FORM 990, PART XII, LINE 2C THERE HAVE BEEN NO CHANGES IN THE OVERSIGHT PROCESS OF THE AUDIT OF NYSCI'S FINANCIAL STATEMENTS OR IN THE SELECTION PROCESS OF AN INDEPENDENT ACCOUNTANT WITHIN THIS TAX YEAR.