2021-10-26T10:54:29-05:00 2021-05-31 410746749 CLIFTONLARSONALLEN LLP 801 CHERRY ST SUITE 1400 FORT WORTH TX 76102 990 2020-06-01 520743814 FOUNDATION FOR ADVANCED EDUCATION IN THE SCIENCES INC FOUN 3015948985 10 CENTER DRIVE RM 1N241-MSC 1115 BETHESDA MD 208921115 CHRISTINA FARIAS MBA CEO/EXECUTIVE DIRECTOR 3015948985 2021-10-26 1 CHRISTINA FARIAS MBA 999009999 MICHAELA J CROMAR CPA P00895728 8178775000 2021-10-04 2 AAL1 IAL1 2020 2022-09-23 18:48:47Z CHRISTINA FARIAS MBA 10 CENTER DRIVE RM 1N241-MSC 1115 BETHESDA MD 208921115 56421971 0 X WWW.FAES.ORG X 1959 MD PROMOTE THE PRODUCTIVITY & ATTRACTIVENESS OF PROFESSIONAL LIFE AT THE NIH. 25 24 39 60 0 0 8027 58216 36565635 37557662 200540 1809222 -302152 -698531 36472050 38726569 411306 41089 0 0 3133476 2996723 0 0 60508 25372532 27090461 28917314 30128273 7554736 8598296 43726141 57498909 4006210 3507494 39719931 53991415 X FOUNDATION FOR ADVANCED EDUCATION IN THE SCIENCES, INC (FAES), LOCATED AT THE NATIONAL INSTITUTES OF HEALTH (HEREAFTER "NIH"), CONDUCTS ADVANCED EDUCATIONAL PROGRAMS AND SUPPORTING ACTIVITIES TO PROMOTE THE PRODUCTIVITY AND ATTRACTIVENESS OF PROFESSIONAL LIFE ON THE NIH CAMPUSES. FAES PROGRAMS COMPLEMENT THE WORK OF NIH IN ACCOMPLISHING ITS MISSION OF RESEARCH AND TRAINING IN THE BIOMEDICAL SCIENCES. 0 1 26437444 0 35401734 HEALTH INSURANCE:ADMINISTRATIVE SERVICES/PLAN SPONSORSHIP FOR A GROUP HEALTH INSURANCE PLAN WHICH IS AVAILABLE TO NIH TRAINEES WHO WORK AT OR FOR NIH, BUT ARE INELIGIBLE FOR FEDERAL HEALTH INSURANCE. NIH TRAINEES, ALSO REFERRED TO AS FELLOWS, ARE THE PRIMARY MARKET THAT FAES SERVES. THIS PROGRAM PROVIDED HEALTH, VISION, AND DENTAL INSURANCE FOR OVER 6,000 INDIVIDUALS DURING THE YEAR, INCLUDING EXCELLENT BENEFITS, AFFORDABLE ANNUAL MAXIMUMS, AND LOW OUT-OF POCKET EXPENSES. 2136128 20918 1924897 ACADEMIC PROGRAMS:FAES SUPPORTS EDUCATIONAL, CULTURAL, AND PROFESSIONAL INITIATIVES OF THE NIH AND ACTIVELY SEEKS OUT WAYS TO FACILITATE A COLLEGIAL ENVIRONMENT. FAES OFFERS OVER 100 GRADUATE-LEVEL COURSES TO FILL THE GAP BETWEEN TRADITIONAL ACADEMIC PROGRAMS AND WORKING IN A WORLD-CLASS BIOMEDICAL RESEARCH ENVIRONMENT AT NIH. FAES HAD 2,026 COURSE ENROLLMENTS DURING THE YEAR. FAES ALSO HAS PARTNERSHIPS FROM WHICH CREDITS CAN BE TRANSFERRED INTO SEVERAL UNIVERSITY OF MARYLAND MASTER'S DEGREE PROGRAMS. FAES OFFERS OVER 35 LAB TECHNIQUE TRAINING COURSES TAUGHT BY NIH SCIENTISTS AND OTHER LEADING BIOMEDICAL FIELD EXPERTS. TRAINING COURSES INCLUDE 2-5 DAY SESSIONS AND WEEKEND OFFERINGS. FAES HOSTED 68 TRAINING COURSES WITH A TOTAL OF 1,254 ATTENDEES DURING THE YEAR. 27239 0 -267123 RETAIL:THE FAES BOOKSTORE@NIH HAS BEEN PROVIDING MEDICAL AND SCIENCE TEXTBOOK SERVICES TO NIH FOR OVER 60 YEARS. STEPS AWAY FROM MASUR AUDITORIUM AND THE FAES CLASSROOMS, THE BOOKSTORE@NIH IS IDEALLY LOCATED TO SUPPORT THE SPECIALIZED BOOK NEEDS OF FAES ACADEMIC PROGRAMS AND THE NIH SCIENTIFIC COMMUNITY. FAES GIFTSTORE@NIH, LOCATED IN THE BUILDING 10 ATRIUM, AND THE B1GIFTSTORE@NIH, LOCATED ON THE B1 LEVEL OF BUILDING 10, EXPAND THE SELECTION OF QUALITY NIH IMPRINTED CLOTHING AND GIFTS FOR NIH EMPLOYEES, PATIENTS, AND VISITORS. 693881 20171 242492 PROGRAM SUPPORT TO NIH: FAES PROVIDES FUNDING, FOOD, AND ADMINISTRATIVE SUPPORT FOR A VARIETY OF PROGRAMS, ACTIVITIES AND EVENTS IN SUPPORT OF NIH SUCH AS THE OFFICE OF INTRAMURAL TRAINING AND EDUCATION (OITE) COMMUNITY COLLEGE DAY, GRADUATE PARTNERSHIP PROGRAM (GPP) RECRUITING, COMMUNITY BUILDING, AND SYMPOSIA, SUPPORT FOR THE NIH ANNUAL RESEARCH FESTIVAL, CLASSICAL AND JAZZ MUSIC PERFORMANCES, WEDNESDAY AFTERNOON LECTURES (WALS), ADMINISTRATION OF MEMORIALS, AND MORE. FAES ALSO PROVIDED LOW COST HOUSING TO 47 NIH FELLOWS DURING THE YEAR. 693881 20171 242492 29294692 1 1 0 0 0 0 0 0 1 0 1 0 0 0 1 1 1 0 1 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 153 0 1 39 1 0 0 0 0 0 0 0 0 0 0 0 0 X 25 24 1 0 0 0 1 1 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MD FL MA DC NY VA X CHRISTINA FARIAS 3015948985 10 CENTER DRIVE ROOM 1N241-MSC 1115 BETHESDA MD 208921115 SUSAN F LEITMAN PRESIDENT 5.00 X X 37000 0 0 BARBARA ALVING FIRST VICE PRESIDENT/VICE CHAIR 2.00 X X 0 0 0 CAROL J THIELE SECOND VICE PRESIDENT/VICE CHAIR 2.00 X X 0 0 0 JOHN IBEX TREASURER 2.00 X X 0 0 0 ALAN SCHECHTER SECRETARY 2.00 X X 0 0 0 JENNIFER CATALANO DIRECTOR 1.00 X 0 0 0 CANDICE ABATE DIRECTOR 1.00 X 0 0 0 IRA BERKOWER DIRECTOR 1.00 X 0 0 0 ORNA COHEN-FIX DIRECTOR 1.00 X 0 0 0 ALAN GOLDHAMMER DIRECTOR 1.00 X 0 0 0 ALISA M GOLDSTEIN DIRECTOR 1.00 X 0 0 0 DENNIS KLINMAN DIRECTOR 1.00 X 0 0 0 JEFFREY KOPP DIRECTOR 1.00 X 0 0 0 DONALD R MATTISON DIRECTOR 1.00 X 0 0 0 LOUIS MKANGANWI DIRECTOR 1.00 X 0 0 0 PAUL RANDAZZO DIRECTOR 1.00 X 0 0 0 KAREN SIBLEY DIRECTOR 1.00 X 0 0 0 MARGARET THOMAS DIRECTOR 1.00 X 0 0 0 JOSHUA FARBER DIRECTOR 1.00 X 0 0 0 STEVE FERGUSON DIRECTOR 1.00 X 0 0 0 MARITA HOPMANN DIRECTOR 1.00 X 0 0 0 ALAN KORETSKY DIRECTOR 1.00 X 0 0 0 HENRY LEVIN DIRECTOR 1.00 X 0 0 0 GERALD MCLAUGHLIN DIRECTOR 1.00 X 0 0 0 YOSUKE MUKOUYAMA DIRECTOR 1.00 X 0 0 0 CHRISTINA FARIAS CEO/EXECUTIVE DIRECTOR 40.00 X 283233 0 45074 NICOLE LUNA DIRECTOR OF ACCOUNTING/CONTROLLER 40.00 X 168550 0 39656 LYNN JOHNSON LANGER EXECUTIVE DEAN OF ACADEMIC PROGRAMS 40.00 X 168320 0 32029 JAMES KUHLMAN DIRECTOR OF BUSINESS SERVICES 40.00 X 164737 0 32643 JONATHAN LOGAN ASSISTANT CONTROLLER 40.00 X 120244 0 28742 MELINDA MARIS ASSISTANT DEAN 40.00 X 119693 0 28606 TAMMY ROGERS ASSISTANT DIRECTOR BUSINESS SERVICES 40.00 X 104751 0 26491 1166528 0 233241 7 0 1 0 TRUSTMARK HEALTH BENEFITS INC 62707 COLLECTION CENTER DRIVE CHICAGO IL 60693 INSURANCE CLAIMS TPA 3724369 CLEAR REAL ESTATE SERVICES LLC 818 CONNECTICUT AVENUE NW WASHINGTON DC 20006 PROJECT MANAGEMENT 271497 INFORMATICS LLC 2603 HARRIS AVE SILVER SPRING MD 20902 WORKSHOP INSTRUCTION 227200 GUTSCHICK LITTLE & WEBER PA INC 3909 NATIONAL DRIVE BURTONSVILLE MD 20866 ENGINEERING AND DESIGN 191247 GTM ARCHITECTS INC 7735 OLD GEORGETOWN ROAD BETHESDA MD 20814 ARCHITECT 111035 5 58216 58216 INSURANCE SUBSCRIPTIONS 524292 35401734 35401734 CONFERENCE REVENUE 611430 1112020 1112020 TUITION & SCHOOL FEES 611430 802327 802327 NIH TRAINEE OCCUPANCY FEES 531110 241581 241581 37557662 518781 518781 442869 -442869 -442869 -442869 17908355 16617914 1290441 1290441 1290441 363941 634619 -270678 -270678 MANAGEMENT FEE 900099 10550 10550 MISCELLANEOUS REVENUE 900099 4466 4466 15016 38726569 37302000 0 1366353 15067 15067 26022 26022 993573 338023 637937 17613 1494823 1117222 362331 15270 132526 96043 35507 976 219814 155100 64714 155987 99898 54245 1844 59710 45486 14224 36951 36951 112934 112934 159710 84809 55124 19777 2970 2970 128624 74735 53889 229933 155455 71103 3375 592681 591125 1556 11 11 681968 673328 8640 11440 9841 1599 110300 110300 INSURANCE PROGRAM COSTS 24960880 24960880 MISCELLANEOUS 2349 312 2037 OVERHEAD ALLOCATION 0 851346 -852999 1653 30128273 29294692 773073 60508 12767068 10613904 2560396 10070851 3196822 3713417 273016 183255 113806 133864 3947245 1947779 1470183 1999466 23219497 30593658 125353 190494 43726141 57498909 3727590 3278940 209348 172330 63068 54370 6204 1854 4006210 3507494 X 39534636 53791665 185295 199750 39719931 53991415 43726141 57498909 X 8598296 5688327 -15139 X X 0 1 X 1 0 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 1 X 740654 740654 2343993 1162999 1180994 862598 784780 77818 1999466 DUE TO NIH 1854 1854 X 45446450 5688327 67000 5755327 39691123 112934 -1077488 -964554 38726569 31174966 67000 1092627 1159627 30015339 112934 112934 30128273 PART IV, LINE 2B: CUSTODIAL FUNDS ARE MONIES COLLECTED ON BEHALF OF THIRD PARTY ORGANIZATIONS THAT FAES IS HANDLING ON AN AGENCY BASIS. FAES HAS NO DECISION MAKING AUTHORITY REGARDING HOW THE FUNDS ARE SPENT. PART X, LINE 2: UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE, FAES IS EXEMPT FROM FEDERAL INCOME TAXES ON INCOME OTHER THAN UNRELATED BUSINESS INCOME. NO PROVISION FOR UNRELATED BUSINESS INCOME TAXES HAS BEEN MADE IN THE FINANCIAL STATEMENTS FOR THE YEARS ENDED MAY 31, 2021 AND 2020, AS FAES HAS NO MATERIAL NET UNRELATED BUSINESS INCOME. FAES FOLLOWS THE AUTHORITATIVE GUIDANCE RELATING TO ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES INCLUDED IN FASB ASC TOPIC 740, INCOME TAXES. THESE PROVISIONS PROVIDE CONSISTENT GUIDANCE FOR THE ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES RECOGNIZED IN AN ENTITY'S FINANCIAL STATEMENTS AND PRESCRIBE A THRESHOLD OF "MORE LIKELY THAN NOT" FOR RECOGNITION AND DERECOGNITION OF TAX POSITIONS TAKEN OR EXPECTED TO BE TAKEN IN A TAX RETURN. FAES PERFORMED AN EVALUATION OF UNCERTAIN TAX POSITIONS FOR THE YEARS ENDED MAY 31, 2021 AND 2020, AND DETERMINED THAT THERE WERE NO MATTERS THAT WOULD REQUIRE RECOGNITION IN THE FINANCIAL STATEMENTS OR THAT MAY HAVE ANY EFFECT ON ITS TAX-EXEMPT STATUS. IT IS FAES' POLICY TO RECOGNIZE INTEREST AND/OR PENALTIES RELATED TO UNCERTAIN TAX POSITIONS, IF ANY, IN INCOME TAX EXPENSE. PART XI, LINE 4B - OTHER ADJUSTMENTS: RENTAL EXPENSE -442,869. COST OF GOODS SOLD -634,619. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSE 442,869. COST OF GOODS SOLD 634,619. BAD DEBT 15,139. 1 1 1 1 1 1 1 0 0 0 0 0 0 0 0 0 0 1 SCHEDULE E, PART I, LINE 3 VARIOUS ADVERTISING MATERIALS OUTLINE THE RACIALLY NON-DISCRIMINATORY POLICY OF FAES. THE COURSE CATALOGUE CONTAINS A NON-DISCRIMINATORY CLAUSE. 1 NATIONAL INSTITUTES OF HEALTH 9000 ROCKVILLE PIKE BETHESDA MD 20892 N/A 5067 TO BUILD A GIFT STORE ON B1 LEVEL OF BUILDING 10 AND GENERAL SUPPORT 1 HONORARIA AND TRAVEL AWARDS 30 13800 SCHOLARSHIPS 32 7118 LAPTOPS 16 0 5104 BOOK LAPTOPS PART I, LINE 2: FAES PROVIDES VARIOUS HONORARIA AND TRAVEL AWARDS THROUGHOUT THE YEAR; AMOUNTS OF THIS ASSISTANCE RANGE FROM $75 TO $750. FAES PROVIDES SCHOLARSHIPS FOR FAES COURSES RANGING FROM $50-$400. FAES PROVIDED A ONE-TIME GIFT OF 16 NEW LAPTOPS TO UNDERSERVED YOUTHS PARTICIPATING IN THE SATURDAY SCIENCE ACADEMY PROGRAM TO ALLOW FOR THE COMPLETION OF THE PROGRAM REMOTELY DUE TO RESTRICTIONS ON IN-PERSON MEETINGS DUE TO COVID-19. FAES MAINTAINS RECORDS TO SUBSTANTIATE THE AMOUNTS OF ASSISTANCE AND THE SELECTION CRITERIA AND ELIGIBILITY REQUIREMENTS AS SET BY THE BOARD OF DIRECTORS, WHERE APPLICABLE. FAES ALSO COMPLIES WITH TAX REPORTING REQUIREMENTS FOR THESE INDIVIDUALS AS APPLICABLE. FURTHER INFORMATION REGARDING THESE POLICIES CAN BE OBTAINED UPON REQUEST. X X X X 0 0 0 0 0 0 0 1 0 CHRISTINA FARIAS CEO/EXECUTIVE DIRECTOR 252963 0 30000 0 270 0 28296 0 16778 0 328307 0 0 0 NICOLE LUNA DIRECTOR OF ACCOUNTING/CONTROLLER 157428 0 11000 0 122 0 17408 0 22248 0 208206 0 0 0 LYNN JOHNSON LANGER EXECUTIVE DEAN OF ACADEMIC PROGRAMS 156689 0 10000 0 1631 0 15464 0 16565 0 200349 0 0 0 JAMES KUHLMAN DIRECTOR OF BUSINESS SERVICES 151722 0 10500 0 2515 0 16222 0 16421 0 197380 0 0 0 PART I, LINE 7 VARIOUS EMPLOYEES RECEIVED BONUS PAYMENTS THAT WERE NOT FIXED AND WERE BASED ON THEIR OVERALL PERFORMANCE, NOT SPECIFIC/CONTINGENT TO REVENUES OR NET EARNINGS. FORM 990, PART III, LINE 3 ON MARCH 11, 2020, THE WORLD HEALTH ORGANIZATION DECLARED COVID-19 TO BE A GLOBAL PANDEMIC. IN RESPONSE TO LOCAL AND STATE GOVERNMENT MANDATED BUSINESS CLOSURES, FAES TEMPORARILY CLOSED ITS OFFICES, THE SAC, AND ALL RETAIL LOCATIONS TO THE PUBLIC ON MARCH 16, 2020. FAES CONTINUED OPERATIONS THROUGH REMOTE ACCESS AND TELEWORK. FAES REOPENED ITS OFFICES IN A LIMITED CAPACITY IN JANUARY 2021. DEMAND FOR ONLINE COURSES AND WORKSHOPS HAS INCREASED AS A RESULT OF THE COVID-19 PANDEMIC. A SIGNIFICANT PORTION OF FAES ACADEMIC PROGRAMS WAS CONVERTED TO ON-LINE FORMATS BEFORE OR DURING THE ONSET OF THE COVID-19 PANDEMIC. AS A RESULT, MANY COURSES AND WORKSHOPS HAVE CONTINUED WITH MINIMAL INTERRUPTION. THE FAES BOOKSHOP AND GIFT STORE WERE REOPENED IN A LIMITED CAPACITY DURING THE FISCAL YEAR ENDED MAY 31, 2021. FAES IS UNABLE TO ESTIMATE THE DATE UPON WHICH THE THIRD RETAIL STORE WILL BE OPEN OR WHEN ALL RETAIL STORES WILL AGAIN OPERATE AT FULL CAPACITY. THE FAES SUPPORT FOR NIH PROGRAM ROUTINELY PROVIDES THE NIH COMMUNITY WITH SUPPORT FOR MEETINGS, EVENTS, AND MUSIC PERFORMANCES. DUE TO NIH PROHIBITIONS ON GATHERINGS, FAES EXPECTS A REDUCTION IN SUPPORTING EXPENSES UNTIL THE PROHIBITION IS EASED OR REMOVED. FAES OWNS 4 HOUSES NEAR THE NIH BETHESDA, MD CAMPUS AT WHICH FAES PROVIDES LOW-COST HOUSING TO NIH FELLOWS. IN THE FISCAL YEAR ENDED MAY 31, 2021, FAES BEGAN A PROJECT TO DEMOLISH THE 4 EXISTING HOUSES AND BUILD 6 NEW HOUSES ON FAES OWNED LOTS. THE 6 NEW HOUSES WILL BE USED TO PROVIDE LOW-COST HOUSING OPTIONS TO NIH FELLOWS AND ARE EXPECTED TO BE COMPLETED IN SUMMER OF 2022. IN ADDITION, FAES HAS EXPANDED THE HOUSING PROGRAM BY RENTING SEVERAL HOUSES AND APARTMENTS NEAR THE NIH BETHESDA, MD CAMPUS TO PROVIDE LOW-COST HOUSING TO A GREATER NUMBER OF NIH FELLOWS. FORM 990, PART VI, SECTION A, LINE 1 FAES HAS AN EXECUTIVE COMMITTEE (EC), AUDIT COMMITTEE (AC), AND INVESTMENT COMMITTEE (IC). THE EXECUTIVE COMMITTEE IS COMPOSED OF THE FIVE OFFICERS OF THE GOVERNING BOARD, AND MAKES DECISIONS NEEDING BOARD GUIDANCE/INPUT, BUT NOT A FULL BOARD VOTE, SUCH AS THE REVIEW AND APPROVAL OF THE CHIEF EXECUTIVE OFFICER'S SALARY. THE AUDIT COMMITTEE IS COMPOSED OF THE TREASURER AND A MIX OF BOARD DIRECTORS AND OUTSIDE (NON-BOARD, NON-EMPLOYEE) MEMBERS WITH RELEVANT EXPERIENCE/EXPERTISE. IN FY2021, THE AC HAD 5 VOTING MEMBERS INCLUDING THE TREASURER, 1 DIRECTOR AND 3 OUTSIDE MEMBERS AND 3 NON-VOTING MEMBERS INCLUDING THE PRESIDENT, CEO, AND CONTROLLER. THE AC OVERSEES THE AUDIT PROCESS, INCLUDING SELECTION OF AN AUDIT FIRM. THE AC REVIEWS THE AUDITED FINANCIAL STATEMENTS, AUDITOR COMMUNICATION LETTERS, AND THE FORM 990. THE INVESTMENT COMMITTEE HAD 5 VOTING MEMBERS INCLUDING THE TREASURER, 3 BOARD DIRECTORS, AND 1 OUTSIDE MEMBER WITH RELEVANT EXPERIENCE/EXPERTISE AND 3 NON-VOTING MEMBERS INCLUDING THE PRESIDENT, CEO AND CONTROLLER. THE IC OVERSEES INVESTMENT ASSETS, INCLUDING SELECTION OF AN INVESTMENT FIRM, DETERMINATION OF INVESTMENT POLICY/STRATEGY, AND EXECUTION OF INVESTMENT DECISIONS. FORM 990, PART VI, SECTION A, LINE 2 TWO BOARD MEMBERS, SUSAN LEITMAN AND DENNIS KLINMAN, HAVE A FAMILY RELATIONSHIP. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IN FAES CONSISTS OF BOARD DIRECTORS, EX-OFFICIO MEMBERS AND ALL MEMBERS OF FAES ADVISORY COMMITTEES. ONLY BOARD DIRECTORS HAVE VOTING AUTHORITY, OUTSIDE OF ELECTION VOTING. FORM 990, PART VI, SECTION A, LINE 7A ALL MEMBERS HAVE VOTING PRIVILEGES TO ELECT THE BOARD OF DIRECTORS AND OFFICERS. FORM 990, PART VI, SECTION B, LINE 11B FAES HIRES AN INDEPENDENT ACCOUNTING FIRM TO PREPARE THE FEDERAL FORM 990. THE DRAFT FEDERAL FORM 990 IS REVIEWED BY THE EXECUTIVE DIRECTOR, THE CONTROLLER, AND AUDIT COMMITTEE. COPIES OF THE FEDERAL FORM 990 ARE ALSO PROVIDED TO THE BOARD OF DIRECTORS BEFORE FILING WITH THE INTERNAL REVENUE SERVICE. FORM 990, PART VI, SECTION B, LINE 12C EVERY DIRECTOR, PRINCIPAL OFFICER AND MEMBER OF A COMMITTEE WITH BOARD DELEGATED POWERS ARE PROVIDED AN ON-BOARDING PACKET WHICH CONTAINS THE FAES CONFLICT OF INTEREST POLICY. THE POLICY REQUIRES DISCLOSURE OF ANY CONFLICTS. BOARD AND COMMITTEE MEMBERS ARE PERIODICALLY REMINDED TO DISCLOSE NEW AND EXISTING CONFLICTS. IF THE BOARD OR COMMITTEE MEMBERS DETERMINE THAT A CONFLICT OF INTEREST EXISTS, THEY RECUSE THEMSELVES FROM THAT CONVERSATION. FORM 990, PART VI, SECTION B, LINE 15 ON AN ANNUAL BASIS, THE EXECUTIVE COMMITTEE REVIEWS AND APPROVES COMPENSATION FOR OFFICERS AND KEY EMPLOYEES BASED ON PERFORMANCE REVIEWS AND COMPARABLE DATA WHICH INCLUDES COMPENSATION SURVEYS, STUDIES, AND THE FORM 990 OF OTHER ORGANIZATIONS. THE PRESIDENT'S COMPENSATION FOR SUBSTANTIALLY PARTICIPATING IN THE MANAGEMENT OF THE ORGANIZATION AND ITS PROGRAMS IS APPROVED BY THE EXECUTIVE COMMITTEE AND PERMITTED IN THE FAES BY-LAWS. ANY OFFICER OR EMPLOYEE ON THE EXECUTIVE COMMITTEE IS RECUSED FROM THE DISCUSSIONS AND DECISIONS REGARDING THEIR OWN COMPENSATION. THE EXECUTIVE COMMITTEE ENSURES CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISIONS. FORM 990, PART VI, SECTION C, LINE 19 THE AUDITED FINANCIAL STATEMENTS, CONFLICT OF INTEREST POLICY, AND OTHER GOVERNING DOCUMENTS ARE AVAILABLE UPON REQUEST. FORM 990, PART XI, LINE 9: BAD DEBT EXPENSE -15,139. PART XII, LINE 2C THE PROCESS HAS NOT CHANGED FROM PRIOR YEAR.