2022-06-30T14:35:28-05:00 2021-08-31 420714325 RSM US LLP 201 FIRST ST SE STE 800 CEDAR RAPIDS IA 524011512 990 2020-09-01 420841485 ACT INC ACTI 3193371000 PO BOX 168 IOWA CITY IA 522430168 CURT YEDLIK CFO 3193371000 2022-06-13 1 CURT YEDLIK 999009999 SHAWNA HULS P01315330 3192985333 2022-06-13 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z JANET GODWIN PO BOX 168 IOWA CITY IA 522430168 602125767 0 X WWW.ACT.ORG X 1960 IA HELPING PEOPLE ACHIEVE EDUCATION AND WORKPLACE SUCCESS 13 10 1147 630 443931 0 322000 844745 190143135 238136012 50229341 3618908 0 998673 240694476 243598338 1530864 516174 0 0 132226361 99305800 0 0 0 167517251 149875792 301274476 249697766 -60580000 -6099428 448903923 330613737 189632330 81827374 259271593 248786363 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 212097569 482457 223050232 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. 14822909 33718 15085780 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. 226920478 1 1 0 1 0 0 0 0 0 0 1 1 0 0 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 6373 0 1 1147 1 1 1 1 AS CH KS ID NL HK 0 0 0 0 0 0 0 0 1 0 X 13 10 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 1 1 CA IL MA MN NH NY X CURT D YEDLIK 3193371000 500 ACT DRIVE IOWA CITY IA 522430168 X JANET E GODWIN CEO 40.00 0.00 X X 417030 0 38329 THOMAS G ROTHERHAM DIRECTOR 10.00 0.00 X 95320 0 0 EDUARDO J PADRON DIRECTOR 5.00 0.00 X 59070 0 0 JULIUS W MUIS DIRECTOR 8.00 0.00 X 66925 0 0 ANTHONY MILLER DIRECTOR 3.00 0.00 X 76320 0 0 DANIEL A DOMENECH CHAIR 2.00 0.00 X X 75625 0 0 DEB DELISLE DIRECTOR 3.00 0.00 X 50500 0 0 KAREN CATOR DIRECTOR 4.00 0.00 X 57000 0 0 WALTER C BUMPHUS DIRECTOR 3.00 0.00 X 65875 0 0 ROBERT M BERDAHL DIRECTOR 4.00 0.00 X 51750 0 0 JOSEPH A AGUERREBERE JR DIRECTOR 4.00 0.00 X 50500 0 0 VIVIEN STEWART TEITELBAUM VICE CHAIR 3.00 0.00 X X 54250 0 0 CHAD P WICK DIRECTOR 7.00 0.00 X 92320 0 0 JENNIFER SMITH CORPORATE SECRETARY (PART-YEAR) 40.00 0.00 X 186562 0 22145 LUCAS KUHLMANN CFO & TREASURER (PART-YEAR)/CTO 40.00 0.00 X 331072 0 20800 MICHAEL CLIFTON CORPORATE SECRETARY (EFF. JAN. 2021) 40.00 0.00 X 168567 0 35906 CURT YEDLIK CFO & TREASURER (EFF. NOV. 2020) 40.00 2.00 X 194812 0 24352 SHANE KING CHIEF OPERATING OFFICER 40.00 0.00 X 215905 0 12384 ADRIENNE DIEBALL VICE PRESIDENT - CONTENT DEVELOPMENT 40.00 0.00 X 249967 0 43534 CHARLES ASTORINO CHIEF SALES OFFICER 40.00 0.00 X 334913 0 39825 JENNIFER YI BOYER CHIEF TALENT OFFICER 40.00 0.00 X 493394 0 30188 ALINA VON DAVIER SR. VICE PRESIDENT - ACT NEXT 40.00 0.00 X 342008 0 18337 MARTEN ROORDA FORMER CEO 40.00 0.00 X 1251057 0 47740 JONELL SANCHEZ PRESIDENT OF LEARNING 40.00 0.00 X 365671 0 42549 WAYNE CAMARA HORACE MANN CHAIR 40.00 0.00 X 380707 0 23025 JOHN COONEY FORMER CORPORATE SECRETARY 40.00 0.00 X 268216 0 31448 SANTONU JANA FORMER CFO & TREASURER 40.00 0.00 X 226965 0 14970 6222301 0 445532 383 1 1 0 NCS PEARSON 2510 N DODGE ST IOWA CITY IA 52245 COMPUTER PROCESSING 25252272 KELLY SERVICES INC 1212 SOLUTIONS CTR CHICAGO IL 60677 TEMPORARY LABOR 11912341 STARTEK INC 8200 E MAPLEWOOD AVENUE STE 100 GREENWOOD VILLAGE CO 80111 CALL CENTER - CUSTOMER CARE 10405343 AMAZON WEB SERVICES LLC PO BOX 84023 SEATTLE WA 98124 DATA PROCESSING 5705733 SHEPPARD MULLIN RICHTER AND HAMPTON LLP 333 S HOPE ST LOS ANGELES CA 90071 LEGAL SERVICES 3948605 107 579745 265000 844745 EDUCATIONAL ASSESSMENT 611710 215858934 215858934 WORKFORCE DEVELOPMENT 541900 15085780 14641849 443931 EDU ASSESSMENT-ENCOURA 611710 7191298 7191298 238136012 2042622 2042622 358600829 1502886 357015399 1512030 1585430 -9144 1576286 1576286 LITIGATION SETTLEMENT 900099 998673 998673 998673 243598338 237692081 443931 4617581 X 516174 516174 4226092 1483042 2743050 77127449 69033221 8094228 1904655 1713977 190678 10288090 8210276 2077814 5759514 5182921 576593 1917136 11504 1905632 341749 13170 328579 112097 112097 267435 267435 55368257 53297015 2071242 2509059 2408533 100526 21216904 20694036 522868 11820538 10814864 1005674 300416 300416 3112792 2790399 322393 283145 259547 23598 362072 359338 2734 2140343 2140343 19375790 18930832 444958 1975690 -27 1975717 TEST ADMINISTRATION 29639052 29639052 SOFTWARE DEVELOPMENT 1313147 1313147 MEMBERSHIP FEES 510325 386103 124222 BAD DEBTS 115000 115000 -2805155 -2804502 -653 249697766 226920478 22777288 0 37738969 36709339 11298799 29813860 13315376 6446126 5350360 5263779 5878852 4529410 100897675 50075872 55784350 50821803 178208414 64795956 -41852328 106729900 106513275 -20019726 41072059 32780150 35595797 12743140 448903923 330613737 55583270 33946005 36438026 22883594 22625000 20920000 41922587 416508 33063447 3661267 189632330 81827374 X 258932912 248517164 338681 269199 259271593 248786363 448903923 330613737 X -6099428 443528 -4829330 X X 0 1 X 1 0 X 130000 431249 375000 322000 844745 2102994 332322393 309583269 287704567 189688429 237692081 1356990739 332452393 310014518 288079567 190010429 238536826 1359093733 12419649 10245461 6990087 605632 1775235 32036064 33536340 24828912 24070600 17458649 20036260 119930761 45955989 35074373 31060687 18064281 21811495 151966825 1207126908 9203709 7505225 8864194 6180329 2042622 33796079 9203709 7505225 8864194 6180329 2042622 33796079 341656102 317519743 296943761 196190758 240579448 1392889812 0.86660 0.85340 0.02430 0.02620 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 0 0 0 0 1 117841 0 0 117841 0 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. 9729313 9729313 47560934 21683159 25877775 25013310 11127655 13885655 18594118 17265058 1329060 50821803 INVESTMENT IN ACT ASSESSMENT TECHNOLOGIES, INC. (FORMERLY ACT BRIDGE, INC.) 106729900 C 106729900 POST RETIREMENT BENEFIT PLAN OBLIGATIONS 2411267 OTHER CONTINGENT CONSIDERATION PAYABLE 1250000 3661267 X PART X, LINE 2: FIN 48 FOOTNOTE FROM AUDITED FINANCIAL REPORT: ACT, PROEXAM, AND ACT EDUCATION ASSESSMENT SERVICES, INC. ARE EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE AND MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAXES ON ANY NET INCOME FROM UNRELATED BUSINESS ACTIVITIES AND 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 HAS CERTAIN REVENUE FROM PROGRAMS AND SERVICES THAT, BY VIRTUE OF A 1980 AGREEMENT WITH THE INTERNAL REVENUE SERVICE (IRS), IS DEEMED TO BE UNRELATED TO ITS TAX-EXEMPT PURPOSE AND, THEREFORE, MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAX. THE ENTITIES CONSOLIDATED INTO ACT INTERNATIONAL B.V. ARE NOT DIRECTLY SUBJECT TO U.S. INCOME TAX AND SUCH INCOME AND LOSS OF SUCH FOREIGN ENTITIES ARE NOT INCLUDED IN THE U.S. TAXABLE INCOME OF ACT. 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, 2021 AND 2020, THERE WERE NO UNCERTAIN TAX BENEFITS IDENTIFIED AND RECORDED AS A LIABILITY AND ANY AMOUNTS OWED RELATED TO UBI ARE IMMATERIAL TO THE CONSOLIDATED FINANCIAL STATEMENTS AS A WHOLE. FORMS 990 AND 990-T FILED BY ACT ARE SUBJECT TO EXAMINATION BY THE 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 YEARS ENDED AUGUST 31, 2017 AND PRIOR, AND FORMS 990 AND 990-T FILED BY PROEXAM ARE NO LONGER SUBJECT TO EXAMINATION FOR THE YEARS ENDED DECEMBER 31, 2017 AND PRIOR. 1 CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES TESTING SERVICES 32117 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES TESTING SERVICES 1617737 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES TESTING SERVICES 283722 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES TESTING SERVICES 6616022 NORTH AMERICA 0 0 PROGRAM SERVICES TESTING SERVICES 131862 RUSSIA AND NEIGHBORING STATES 0 0 PROGRAM SERVICES TESTING SERVICES 63871 SOUTH AMERICA 0 0 PROGRAM SERVICES TESTING SERVICES 61689 SOUTH ASIA 0 0 PROGRAM SERVICES TESTING SERVICES 134650 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES TESTING SERVICES 64719 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM-RELATED INVESTMENTS -6699402 0 0 0 0 0 0 8941670 -6634683 2306987 0 0 1 0 0 1 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. FOREIGN INVESTMENTS IN FOREIGN SUBSIDIARIES ARE SHOWN AT NET ASSET VALUE RESULTING IN A NEGATIVE INVESTMENT VALUE IN COLUMN (F) FOR FISCAL YEAR ENDING 2021 DUE TO LIABILITIES EXCEEDING ASSETS. PART III ACCOUNTING METHOD: 1 UNITED WAY OF JOHNSON COUNTY 1150 5TH ST CORALVILLE IA 52241 426062055 501(C)(3) 53000 N/A N/A MATCHING CONTRIBUTION FOR UNITED WAY CAMPAIGN IOWA CITY AREA DEVELOPMENT GROUP INCORPORATED 316 E COURT ST IOWA CITY IA 52240 421234837 501(C)(6) 45000 N/A N/A GENERAL OPERATING ARENACO 900 1ST AVE CORALVILLE IA 52441 814968896 501(C)(3) 25000 N/A N/A COMMUNITY DEVELOPMENT PROJECT - SPONSORSHIP UNITED NEGRO COLLEGE FUND INC 1805 7TH STREET NW WASHINGTON DC 20001 131624241 501(C)(3) 25000 N/A N/A GENERAL OPERATING AMERICAN INDIAN COLLEGE FUND 8333 GREENWOOD BLVD DENVER CO 80221 521573446 501(C)(3) 10500 N/A N/A GENERAL OPERATING 4 1 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. REQUESTS UP TO $10,000 ARE APPROVED/DENIED BY THE COMMITTEE. REQUESTS OVER $10,000 ARE APPROVED/DENIED BY THE CEO. X X 1 1 X X X X X X 1 1 0 0 0 0 0 1 0 MARTEN ROORDA FORMER CEO 510657 0 0 0 740400 0 31457 0 16283 0 1298797 0 500000 0 JENNIFER YI BOYER CHIEF TALENT OFFICER 282335 0 88000 0 123059 0 17584 0 12604 0 523582 0 0 0 JANET E GODWIN CEO 382637 0 18277 0 16116 0 23240 0 15089 0 455359 0 0 0 JONELL SANCHEZ PRESIDENT OF LEARNING 325022 0 20000 0 20649 0 20347 0 22202 0 408220 0 0 0 WAYNE CAMARA HORACE MANN CHAIR 268153 0 0 0 112554 0 20510 0 2515 0 403732 0 0 0 CHARLES ASTORINO CHIEF SALES OFFICER 266419 0 30000 0 38494 0 17513 0 22312 0 374738 0 0 0 ALINA VON DAVIER SR. VICE PRESIDENT - ACT NEXT 236069 0 0 0 105939 0 17619 0 718 0 360345 0 0 0 LUCAS KUHLMANN CFO & TREASURER (PART-YEAR)/CTO 288831 0 40000 0 2241 0 17982 0 2818 0 351872 0 0 0 JOHN COONEY FORMER CORPORATE SECRETARY 265017 0 0 0 3199 0 14919 0 16529 0 299664 0 0 0 ADRIENNE DIEBALL VICE PRESIDENT - CONTENT DEVELOPMENT 226822 0 20000 0 3145 0 13121 0 30413 0 293501 0 0 0 SANTONU JANA FORMER CFO & TREASURER 226407 0 0 0 558 0 12181 0 2789 0 241935 0 0 0 SHANE KING CHIEF OPERATING OFFICER 200198 0 12500 0 3207 0 11757 0 627 0 228289 0 0 0 CURT YEDLIK CFO & TREASURER (EFF. NOV. 2020) 192834 0 0 0 1978 0 11114 0 13238 0 219164 0 0 0 JENNIFER SMITH CORPORATE SECRETARY (PART-YEAR) 175361 0 10000 0 1201 0 10557 0 11588 0 208707 0 0 0 MICHAEL CLIFTON CORPORATE SECRETARY (EFF. JAN. 2021) 166624 0 0 0 1943 0 10696 0 25210 0 204473 0 0 0 PART I, LINE 1A ACT'S TRAVEL POLICY GENERALLY PROHIBITS FIRST CLASS TRAVEL AT ACT'S EXPENSE. THE POLICY DOES ALLOW LIMITED EXCEPTIONS FOR FIRST CLASS TRAVEL AT ACT'S EXPENSE UNDER CIRCUMSTANCES REQUIRING EXTENDED UNINTERRUPTED FLIGHTS. IN ADDITION, TEAM MEMBERS ARE ELIGIBLE TO FLY FIRST CLASS IF THERE IS NO ADDITIONAL EXPENSE TO ACT (I.E., USE OF TRAVEL POINTS). ONE KEY EMPLOYEE WAS PROVIDED WITH FIRST CLASS TRAVEL. NO AMOUNT WAS TREATED AS TAXABLE COMPENSATION TO THE LISTED PERSONS. CHARLES ASTORINO WAS REIMBURSED FOR A MOVE. THE PAYMENT WAS GROSSED UP AND INCLUDED IN HIS W-2. 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 DOES NOT ALLOW ELIGIBLE EMPLOYEES TO MAKE ELECTIVE CONTRIBUTIONS BUT DOES PROVIDE FOR ACT TO MAKE DISCRETIONARY CONTRIBUTIONS TO ELIGIBLE EMPLOYEES. ACT MADE NO SUCH CONTRIBUTIONS DURING THE YEAR. MARTEN ROORDA'S 457(F) AMOUNT ACCRUED AND RECORDED AS DEFERRED ON PRIOR YEAR 990'S OF $500,000 VESTED AND IS PROPERLY REPORTED IN FORM 990, PART VII, COLUMN D, AND ALSO IN SCHEDULE J, PART II, COLUMN B(III). ACT MAINTAINS SEVERANCE/TERMINATION 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 THE YEAR THERE WERE SEVERANCE PAYMENTS MADE PURSUANT TO A CONFIDENTIAL AGREEMENT. ALL AMOUNTS PAID HAVE BEEN PROPERLY REPORTED ON FORM W-2 AND REPORTED IN FORM 990, PART VII, COLUMN D, AND ALSO IN SCHEDULE J, PART II, COLUMN B(III). THE AGREEMENT IS AVAILABLE TO THE INTERNAL REVENUE SERVICE UPON REQUEST. OTHER LISTED PERSONS MAY BE ELIGIBLE FOR SIMILAR SEVERANCE ARRANGEMENTS. PART I, LINE 7 ACT HAS IMPLEMENTED A BONUS PLAN FOR CERTAIN LEADERSHIP EMPLOYEES THAT ENABLES THEM TO EARN ADDITIONAL COMPENSATION BASED ON THE ACHIEVEMENT OF CERTAIN GOALS. SUCH BONUSES HAVE A MAXIMUM AMOUNT THAT IS A PERCENTAGE OF THE INDIVIDUAL'S BASE COMPENSATION. THESE PAYMENTS ARE CONSIDERED NON-FIXED AS THEY ARE DISCRETIONARY IN NATURE AND ARE BASED PRIMARILY ON PERFORMANCE, WHICH DOES NOT INCLUDE PERFORMANCE BASED UPON NET INCOME OR REVENUE. THIS BONUS PLAN IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. A CITY OF IOWA CITY IOWA 2017-02-28 27560000 REFUNDING REVENUE BONDS 0 0 0 A 27560000 300710 1 0 1 1 A 0 0 0 0 0 0 0 0 0 A 1 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. THERE ARE 630 REPRESENTATIVES INCLUDING EDUCATORS, AGENCY PERSONNEL, LEADERS OF STATE ASSOCIATIONS, AND WORKFORCE PROFESSIONALS 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 SOME CURRENT AND FORMER OFFICERS, DIRECTORS, AND KEY EMPLOYEES HAVE A BUSINESS RELATIONSHIP WITH OTHER CURRENT AND FORMER OFFICERS, DIRECTORS, AND KEY EMPLOYEES TO THE EXTENT THAT THEY ALSO SERVE TOGETHER ON THE BOARDS OF OTHER ENTITIES RELATED TO ACT, INC.: JANET GODWIN, CURT YEDLIK, SHANE KING, LUCAS KUHLMANN FORM 990, PART VI, SECTION B, LINE 11B 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 CORPORATION'S INTERIM 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. IN ADDITION TO QUESTIONNAIRES, THE ETHICS COMMITTEE UTILIZES AN ANONYMOUS ETHICS HOTLINE AND CONVERSATIONS WITH TEAM MEMBERS TO MONITOR ETHICS ISSUES. 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 AUDIT COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15A COMPENSATION OF THE CEO IS DETERMINED BASED UPON A PROCESS THAT INCLUDES CONTEMPORANEOUS DOCUMENTATION AND A PERIODIC INDEPENDENT COMPENSATION STUDY CONDUCTED BY A PROFESSIONAL FIRM. AMONG OTHER BENCHMARKS, THE STUDY INCLUDES A REVIEW OF COMPENSATION PUBLISHED BY SIMILAR ORGANIZATIONS CONTAINED IN FORM 990. COMPENSATION OF THE CEO IS APPROVED BY THE BOARD BASED UPON THE RECOMMENDATION OF THE COMPENSATION COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15B: COMPENSATION OF ALL OTHER OFFICERS AND KEY EMPLOYEES IS ESTABLISHED UNDER ACT'S COMPENSATION POLICY. THE CEO APPROVES THE COMPENSATION FOR ALL OTHER OFFICERS. 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 TWO-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, JANET GODWIN ALSO SERVES AS CEO OF ACT. COMPENSATION AS CEO IS DISCLOSED ON FORM 990, PART VII, SECTION A AND SCHEDULE J. SHE 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. HOURS REPORTED FOR EMPLOYEES REPRESENT RECORDED PAYROLL HOURS. ACTUAL HOURS WORKED MAY EXCEED THE HOURS REPORTED. FORM 990, PART IX, LINE 11G COMPUTER PROCESSING-EXTERNAL: PROGRAM SERVICE EXPENSES 7,070,588. MANAGEMENT AND GENERAL EXPENSES 182,151. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 7,252,739. TEMPORARY LABOR: PROGRAM SERVICE EXPENSES 9,073,999. MANAGEMENT AND GENERAL EXPENSES 18,256. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,092,255. CONSULTING FEES: PROGRAM SERVICE EXPENSES 10,559,235. MANAGEMENT AND GENERAL EXPENSES 915,221. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 11,474,456. OTHER SERVICES & FEES: PROGRAM SERVICE EXPENSES 10,541,511. MANAGEMENT AND GENERAL EXPENSES 915,221. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 11,456,732. ESSAY SCORING: PROGRAM SERVICE EXPENSES 6,121,703. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 6,121,703. COMPUTER PROGRAMMING - EXTERNAL: PROGRAM SERVICE EXPENSES 2,372,073. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 2,372,073. OTHER DATA PROCESSING: PROGRAM SERVICE EXPENSES 5,911,206. MANAGEMENT AND GENERAL EXPENSES 40,393. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 5,951,599. ITEM DEVELOPMENT: PROGRAM SERVICE EXPENSES 1,204,866. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 1,204,866. HONORARIA OTHER: PROGRAM SERVICE EXPENSES 10,010. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 10,010. DISTRIBUTOR COMMISSIONS: PROGRAM SERVICE EXPENSES 67,512. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 67,512. INTERCOMPANY SERVICE: PROGRAM SERVICE EXPENSES 364,312. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 364,312. FORM 990, PART XI, LINE 9: (INCREASE) IN NET ASSETS - ACT INTERNATIONAL CONSOLIDATED 423,384. (INCREASE) IN NET ASSETS - ACT ASSESSMENT TECHNOLOGIES CONSOLIDATED 131,236,227. (DECREASE) IN NET ASSETS - PROFESSIONAL EXAMINATION SERVICE -1,099,281. (DECREASE) IN NET ASSETS - NRCCUA, LLC -128,231,541. (INCREASE) IN NET ASSETS - ACT EDUCATION ASSESSMENT SERVICES 26,887. INCOME ON EQUITY INVESTMENT 3,749,118. NET LOSS FROM ELIMINATING ENTRIES -252,887. SEC. 337(B)(2) TAX REFUND FROM TARGET CORPORATION 1,068,727. ADOPTION OF ASC 606 -4,558,629. INTER COMPANY CAPITAL CONTRIBUTIONS PRIOR PERIOD ADJUSTMENT -37. PASSTHROUGH INCOME BOOK-TAX DIFFERENCE -7,191,298. 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. 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