2021-10-13T06:56:36-05:00 2020-12-31 420714325 RSM US LLP 2021 L STREET NW SUITE 400 WASHINGTON DC 20036 990 2020-01-01 260003391 THE SURETY & FIDELITY ASSOCIATION OF AMERICA SURE 2024630600 1140 19TH STREET NW NO 500 WASHINGTON DC 200366617 J LEE COVINGTON II PRESIDENT & CEO 2024630600 2021-10-13 1 J LEE COVINGTON II 260003391 SARA SMITH P01332734 2022932200 2021-10-12 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z J LEE COVINGTON II 1140 19TH STREET NW NO 500 WASHINGTON DC 200366617 5530958 0 X WWW.SURETY.ORG X 2001 DC PERFORMS A LEADERSHIP ROLE IN PROMOTING AND PRESERVING THE USE OF FIDELITY AND SURETY BONDS TO PROTECT PUBLIC AND PRIVATE INTERESTS. 18 18 21 500 0 0 0 0 5403445 5366178 141973 126229 30919 30126 5576337 5522533 1165 5500 0 0 3038033 3133742 0 0 0 1697852 2182511 4737050 5321753 839287 200780 6210440 6450866 3507723 3489171 2702717 2961695 PERFORMS A LEADERSHIP ROLE IN PROMOTING AND PRESERVING THE USE OF FIDELITY AND SURETY BONDS TO PROTECT PUBLIC AND PRIVATE INTERESTS. 0 0 STATISTICAL REPORTS AND ANALYSIS: DATA AND REPORTS REGARDING THE SURETY AND FIDELITY INDUSTRIES PROVIDED TO MEMBERS AND OTHER INTERESTED PARTIES. EDUCATION AND PROMOTION: PUBLIC SERVICE INFORMATION TO EDUCATE CONSUMERS AND GOVERNMENT OFFICIALS ABOUT SURETY AND FIDELITY BONDS. LEGAL FEES AND LEGISLATION: FEES PAID TO MONITOR LEGISLATION AND HIRE ATTORNEYS TO PROVIDE LEGAL ADVICE ON MATTERS RELATED TO SURETY AND FIDELITY BONDS. 0 0 0 1 0 0 0 0 0 1 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 1 1 0 0 1 40 0 1 21 1 0 0 0 0 1 0 0 0 0 X 18 18 0 0 1 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 1 0 X THE ORGANIZATION 2024630600 1140 19TH STREET NW NO 500 WASHINGTON DC 200366617 JOHN WELCH CHAIR 0.50 0.00 X X 0 0 0 BOB MURRAY VICE-CHAIR 0.50 0.00 X X 0 0 0 LARRY TAYLOR PAST CHAIR 1.00 0.00 X 0 0 0 ANTONIO ALBANESE DIRECTOR 0.50 0.00 X 0 0 0 STEVE ANDERSON DIRECTOR 0.50 0.00 X 0 0 0 KENNETH CHAPMAN DIRECTOR 0.50 0.00 X 0 0 0 RICK CIULLO DIRECTOR 1.00 1.00 X 0 0 0 GARY DUNBAR DIRECTOR 0.50 0.00 X 0 0 0 NANCY GIORDANO-RAMOS DIRECTOR 0.50 0.00 X 0 0 0 STEPHEN HANEY DIRECTOR 0.50 0.00 X 0 0 0 JAMES KAWIECKI DIRECTOR 0.50 0.00 X 0 0 0 MICHAEL KEIMIG DIRECTOR 0.50 0.00 X 0 0 0 SHAWN LYNCH DIRECTOR 0.50 0.00 X 0 0 0 TIM MIKOLAJEWSKI DIRECTOR 1.00 1.00 X 0 0 0 ALAN PAVLIC DIRECTOR 0.50 0.00 X 0 0 0 ROBERT RANEY DIRECTOR 0.50 0.00 X 0 0 0 MICHAEL SEFF DIRECTOR 0.50 0.00 X 0 0 0 GARY STUMPER DIRECTOR 0.50 0.00 X 0 0 0 JOHN KNOX DIRECTOR (THRU 5/28) 0.50 0.00 X 0 0 0 THOMAS KUNKEL DIRECTOR (THRU 5/28) 0.50 1.00 X 0 0 0 J LEE COVINGTON II PRESIDENT & CEO 50.00 1.00 X 528509 0 91129 JULIE ALLEYNE VP, POLICY; GEN COUNSEL, SECR-TREASURER 45.00 0.00 X 230040 0 36365 BARBARA FINNEGAN REIFF TREASURER & DIR, OPS (THRU 7/2020) 45.00 5.00 X 110209 0 20793 WILLIAM HEINBOKEL DIR, FIDELITY & REG COMPLIANCE 40.00 0.00 X 209632 0 43010 JOSEPH ORGOVAN DIR, INFO TECHNOLOGY 45.00 0.00 X 196664 0 37052 PETER ROTH VP, STRAT COMM, MKT, & RESEARCH 40.00 0.00 X 196838 0 2775 ALAN CLARK ACTUARY 40.00 0.00 X 130639 0 51651 EDWARD O'DONNELL MGR, STATISTICAL 40.00 0.00 X 121943 0 55168 DALTON DEFENDIS DIR, GOVT AFFAIRS 40.00 0.00 X 152415 0 24124 LEE ANN ALEXANDER VP, GOVT AFFAIRS (TO 7/2020) 45.00 0.00 X 154405 0 13140 STEPHEN TAYLOR DIR, POLICY & ASST GEN COUNSEL 40.00 0.00 X 101520 0 8734 2132814 0 383941 11 0 1 0 ERNST & YOUNG LLP 200 PLAZA DRIVE SECAUCUS NJ 07094 PROJECT - DEMONSTRATING VALUE OF SURETY 185000 INSURANCE SERVICE OFFICES INC PO BOX 27507 NEW YORK NY 10087 STATISTICAL DATA PROCESSING 162675 HIGH LANTERN GROUP 685 THIRD AVENUE 22ND FLOOR NEW YORK NY 10017 DEVELOPMENT OF MARKETING/COMMUNICATIONS 145000 3 MEMBERS' ASSESSMENTS 900099 4949635 4949635 STATISTICAL FILERS 900099 250919 250919 STUDIES AND SURVEYS 900099 97265 97265 SUBSCRIBER FEES 900099 37500 37500 SEMINAR REGISTRATION 900099 30859 30859 5366178 128939 128939 30175 30175 5666 8376 -2710 -2710 -2710 49 -49 -49 5522533 5366178 0 156355 X 5500 1714772 1035301 119523 103155 160991 25642 104635 336187 10673 635722 73284 81531 291565 21981 54947 64386 36776 STAT. REPORTS & ANALYS. 236381 AMICUS BRIEFS 78377 COMMITTEE ATTENDANCE FE 70600 COMPENSATION SURVEY 25750 34074 5321753 556361 169707 21853 83791 14497 14448 169089 127865 784698 462838 383363 321860 4349306 4849297 715971 883898 6210440 6450866 359909 386865 115783 7500 3032031 3094806 3507723 3489171 X 2702717 2961695 2702717 2961695 6210440 6450866 X 200780 71101 -12903 X X 0 1 X 1 0 0 0 1 4949635 508139 -6192 501947 386673 115274 0 0 477056 253519 223537 293445 195122 98323 14197 14197 0 321860 DEFERRED COMPENSATION 215023 MATRIX TRUST 668875 883898 DEFERRED RENT 328243 INS. DEPT. EXAM. RESERVE 83944 ACCRUED POST-RETIREMENT BENEFIT 1445235 DEFERRED COMPENSATION 215023 ACCRUED PENSION COSTS 125140 DEFERRED TENANT IMPROVEMENT ALLOWANCE 228346 SFAA MONEY PURCHASE PLAN 668875 3094806 X 5636595 71101 53634 124735 5511860 10673 10673 5522533 5361747 54549 54549 5307198 10673 3882 14555 5321753 PART X, LINE 2: MANAGEMENT EVALUATED TAX POSITIONS AND CONCLUDED THAT THE ENTITIES HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS. FOR THE YEARS ENDED DECEMBER 31, 2020 AND 2019, NO PROVISION FOR INCOME TAXES WAS MADE FOR THE ORGANIZATION, AS NEITHER ORGANIZATION HAD ANY SIGNIFICANT NET UNRELATED BUSINESS INCOME AND DID NOT IDENTIFY ANY UNCERTAIN TAX POSITIONS REQUIRING RECOGNITION OR DISCLOSURE IN THE CONSOLIDATED FINANCIAL STATEMENTS. PART XI, LINE 2D - OTHER ADJUSTMENTS: PAC REVENUE 53,585. COGS - SALES 49. PART XII, LINE 2D - OTHER ADJUSTMENTS: PAC EXPENSES 54,500. COGS - SALES 49. PART XII, LINE 4B - OTHER ADJUSTMENTS: NET PERIODIC BENEFIT COST ADJUSTMENT 3,882. X X X X 0 0 0 J LEE COVINGTON II PRESIDENT & CEO 402207 0 123600 0 2702 0 53837 0 41533 0 623879 0 0 0 JULIE ALLEYNE VP, POLICY; GEN COUNSEL, SECR-TREASU 190950 0 38000 0 1090 0 36365 0 1474 0 267879 0 0 0 WILLIAM HEINBOKEL DIR, FIDELITY & REG COMPLIANCE 185950 0 22644 0 1038 0 40260 0 4184 0 254076 0 0 0 JOSEPH ORGOVAN DIR, INFO TECHNOLOGY 171741 0 24012 0 911 0 37052 0 2958 0 236674 0 0 0 PETER ROTH VP, STRAT COMM, MKT, & RESEARCH 168731 0 27309 0 798 0 2775 0 866 0 200479 0 0 0 ALAN CLARK ACTUARY 113367 0 16750 0 522 0 27564 0 25634 0 183837 0 0 0 EDWARD O'DONNELL MGR, STATISTICAL 105275 0 16175 0 493 0 24839 0 31353 0 178135 0 0 0 DALTON DEFENDIS DIR, GOVT AFFAIRS 126075 0 25750 0 590 0 18072 0 7549 0 178036 0 0 0 LEE ANN ALEXANDER VP, GOVT AFFAIRS (TO 7/2020) 153569 0 0 0 836 0 0 0 14152 0 168557 0 0 0 FORM 990, PART VI, SECTION A, LINE 4 (1) BOARD MEMBERS MUST BE INDIVIDUALS AND NOT COMPANIES; (2) WITH REGARD TO THE PRESIDENT'S POWER, THE ORIGINAL INTENT OF ONE PROVISION WAS UNCLEAR AND THEREFORE IT WAS DELETED; (3) ELIMINATION OF MEMBERSHIP REVIEW OF BOARD ACTIONS; AND (4) WITH THE CHANGE THAT IS REQUIRED FOR ELECTION OF INDIVIDUALS, VERSUS COMPANIES, IT IS COMMON FOR BOARDS TO INCLUDE A PROVISION MAKING AN INDIVIDUAL NO LONGER ELIGIBLE TO SERVE IF THE DIRECTOR LEAVES HIS OR HER THEN CURRENT POSITION. OF COURSE, THE INDIVIDUAL COULD BE ELECTED ANEW TO THE BOARD IN THE NEW POSITION. FORM 990, PART VI, SECTION A, LINE 6 ANY COMPANY LICENSED TO ENGAGE IN THE BUSINESS OF SURETY OR FIDELITY BONDING, OR AS A REINSURER, AND MEETING SUCH OTHER CRITERIA AS MAY BE DETERMINED FROM TIME TO TIME BY THE BOARD OF DIRECTORS, IS ELIGIBLE TO BECOME A MEMBER UPON ITS APPLICATION. FORM 990, PART VI, SECTION A, LINE 7A THE MEMBERS OF THE ASSOCIATION SHALL VOTE TO ELECT DIRECTORS EACH YEAR AT THE ANNUAL MEETING. IN ADDITION, THE PRESIDENT SERVES ON THE BOARD IN AN EX OFFICIO, NON-VOTING CAPACITY. TO FACILITATE VOTING FOR MEMBERSHIP ON THE BOARD OF DIRECTORS AT AN ANNUAL OR OTHER MEETING, THE BOARD OF DIRECTORS WILL APPOINT A NOMINATING COMMITTEE OF FIVE MEMBERS AT LEAST THREE WEEKS PRIOR TO THE MEETING. THE NOMINATIONS PROPOSED BY THIS MEMBER COMMITTEE WILL BE DISTRIBUTED TO ALL MEMBERS AT LEAST ONE WEEK PRIOR TO THE MEETING. OTHER NOMINATIONS ARE ALLOWED AT THE MEETING. FORM 990, PART VI, SECTION A, LINE 7B THE NUMBER OF VOTES THAT EACH MEMBER IS ENTITLED TO IS BASED ON THE BALANCE OF PREMIUMS WRITTEN OVER THEIR LATEST THREE-YEAR CALENDAR PERIOD. FORM 990, PART VI, SECTION B, LINE 11B MANAGEMENT DISTRIBUTES THE DRAFT OF THE FORM 990 AND RELATED SCHEDULES TO THE SFAA EXECUTIVE COMMITTEE AND MAKES IT AVAILABLE TO BOARD MEMBERS FOR INSPECTION PRIOR TO FILING IT WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE SFAA BOARD OF DIRECTORS REQUIRES ALL DIRECTORS, OFFICERS AND EMPLOYEES TO COMPLETE AND SUBMIT AN ANNUAL STATEMENT OF DISCLOSURE DETAILING ANY FACTS OR CIRCUMSTANCES THAT MIGHT CONSTITUTE A CONFLICT OF INTEREST. THE BOARD OF DIRECTORS FURTHER REQUIRES DIRECTORS, OFFICERS AND EMPLOYEES TO SUBMIT AN AMENDED STATEMENT OF DISCLOSURE TO REFLECT ANY MATERIAL CHANGES OR ADDITIONS TO THE SUBMITTED INFORMATION THAT MAY ARISE DURING THE COURSE OF THE YEAR. DIRECTORS, OFFICERS AND EMPLOYEES ARE ENCOURAGED TO ERR ON THE SIDE OF DISCLOSURE AND TO REPORT ANY SET OF CIRCUMSTANCES THAT MAY APPEAR TO POSE A CONFLICT OF INTEREST, EVEN IF THERE IS UNCERTAINTY AS TO WHETHER SUCH CIRCUMSTANCES SHOULD BE DISCLOSED. THE BOARD OF DIRECTORS RECOGNIZES THAT CONFLICTS OF INTEREST ARE NOT UNCOMMON, AND THAT NOT ALL CONFLICTS OF INTEREST ARE NECESSARILY HARMFUL TO SFAA. HOWEVER, THE BOARD REQUIRES FULL DISCLOSURE OF ALL ACTUAL AND POTENTIAL CONFLICTS OF INTEREST. UNDER THE POLICY, THE BOARD OF DIRECTORS DETERMINES WHETHER OR NOT A CONFLICT OF INTEREST EXISTS, AND WHETHER OR NOT SUCH CONFLICT MATERIALLY AND ADVERSELY AFFECTS THE INTERESTS OF SFAA. A DIRECTOR, OFFICER OR EMPLOYEE WHOSE POTENTIAL CONFLICT IS UNDER REVIEW MAY NOT DEBATE, VOTE, OR OTHERWISE PARTICIPATE IN SUCH DETERMINATION. IF THE BOARD OF DIRECTORS DETERMINES THAT AN ACTUAL OR POTENTIAL CONFLICT OF INTEREST DOES EXIST, THE BOARD SHALL ALSO DETERMINE WHETHER THE CONFLICT SHOULD BE WAIVED OR IDENTIFY AN APPROPRIATE REMEDY. SUCH REMEDY MAY INCLUDE, FOR EXAMPLE, THE RECUSAL OF THE CONFLICTED DIRECTOR, OFFICER OR EMPLOYEE FROM PARTICIPATING IN CERTAIN MATTERS PENDING BEFORE THE BOARD. FORM 990, PART VI, SECTION B, LINE 15 COMPARABILITY DATA IS USED IN DETERMINING SALARIES FOR THE PRESIDENT & CEO AND OTHER TOP MANAGEMENT POSITIONS. THE ASSOCIATION PURCHASES THE CEO COMPENSATION SURVEY PERIODICALLY. IN 2018, WE HIRED AN OUTSIDE FIRM FOR AN EXECUTIVE COMPENSATION PROJECT TO DETERMINE WHETHER ALL POSITIONS WERE WITHIN APPROPRIATE RANGES IN THE INDUSTRY. IN ADDITION, THE COMPENSATION COMMITTEE (COMPRISED OF BOARD MEMBERS) FREQUENTLY PERFORMS INDEPENDENT RESEARCH ON SALARIES. COMPENSATION SURVEYS FOR ASSOCIATIONS ALSO ARE REVIEWED TO DETERMINE KEY POSITION SALARIES, AND THE DECISION IS DOCUMENTED. FORM 990, PART VI, SECTION C, LINE 19 THESE DOCUMENTS ARE NOT AVAILABLE TO THE PUBLIC. FORM 990, PART IX, LINE 11G CONSULTANTS 194,325. COMMUNICATIONS 432,779. PUBLIC RELATIONS 8,618. FORM 990, PART XI, LINE 9: POSTRETIREMENT PLAN ADJUSTMENT -60,009. PENSION PLAN ADJUSTMENT 47,106. FORM 990, PART XII, LINE 2C: THE AUDIT OVERSIGHT PROCESS HAS REMAINED UNCHANGED FROM THE PREVIOUS YEAR. THE SURETY FOUNDATION 1140 19TH STREET NW STE 500 WASHINGTON DC 200364347 731728689 SCHOLARSHIPS DC 501(C)(3) LINE 7 THE SURETY & FIDELITY ASSOCIATION OF AMERICA 1 THE SURETY & FIDELITY ASSOCIATION OF AMERICA PAC 1140 19TH STREET NW STE 500 WASHINGTON DC 200364347 832558759 POLITICAL ACTION COMMITTEE DC 527 THE SURETY & FIDELITY ASSOCIATION OF AMERICA 1 0 0 0 0 0 0 0 0 0 0 0 1 0 1 1 0 1 0 0