2018-04-26T18:38:01-07:00 2017-06-30 990 2016-07-01 510172756 AACN CERTIFICATION CORPORATION AACN 9493622000 101 Columbia Suite 200 Aliso Viejo CA 926564109 Michael Willett Chief Financial Officer 9493622000 2018-04-30 216.231.15.2 2016 2021-01-29 14:40:06Z Dana Woods 101 Columbia Suite 200 Aliso Viejo CA 926564109 15039783 0 X www.certcorp.org X 1975 CA The primary purpose of AACN Certification Corporation is to promote and enhance consumer health and safety by establishing and maintaining high standards of professional practice excellence through certification and certification renewal for nurses who care for acutely and critically ill patients and their families. 9 9 0 130 22863 3770 28000 54000 7491800 7629952 289964 1339420 0 127313 7809764 9150685 6000 0 0 0 0 1177 0 0 0 7402601 7743765 7408601 7744942 401163 1405743 22668866 25397501 1425060 1501590 21243806 23895911 AACN Certification Corporation contributes to consumer health and safety through comprehensive credentialing of nurses to ensure their practice is consistent with established standards of excellence in caring for acutely and critically ill patients and their families. 0 0 5113935 AACN Certification Corporation administers fourteen separate credentialing exams: Adult, Pediatric and Neonatal critical-care exams, Adults, Pediatric and Neonatal critical-care Knowledge designation exams, a CCRN-e exam for teleICU nurses, Progressive Care, Cardiac Medicine, Cardiac Surgery, Acute Care Nurse Practitioner exams, and the Clinical Nurse Specialist exams (ACCNS-AG, ACCNS-P, ACCNS-N). For our fiscal year ended June 30, 2017, we had 23,774 nurses register to take these exams. During the year, 15,111 nurses passed these rigorous exams to become certified. 2459240 In addition to our initial exams, nurses are required to be recertified every three years for our certifications (except for the CNS certification (renewal only) which lasts four years and the ACNPC certifications which lasts five years). The nurse maintains certification based on the recertification process which consists of a combination of working directly with critically ill patients and obtaining continuing education credits (CE's) throughout the term of their certification period. In the fiscal year ended June 30, 2017, we had 20,449 nurses recertify one or more of the certifications administered by AACN Certification Corporation. Overall, there are approximately 105,520 nurses that are certified in one or more of the categories of certification offered by AACN Certification Corporation. 44960 AACN Certification Corporation hosts an annual dinner celebration meeting for certified nurses at its affiliates' conference, the National Teaching Institute (NTI). At this conference, certified nurses are also afforded a meeting area called the Certification Oasis where they can learn more about the certification process and where they can network with other certified nurses. In addition, the dinner meeting is held at this conference to celebrate certified nurses for their commitment to their profession. At the meeting, there were 1,124 certified nurses in attendance. 0 0 11817 Other program service revenue 0 0 11817 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 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 0 0 1 7 0 0 1 1 0 0 0 0 0 X 9 9 0 0 0 0 1 1 1 1 1 0 0 1 1 1 1 1 1 1 0 0 CA X Michael Wulf 9493622000 101 Columbia Suite 200 Aliso Viejo CA 92656 Karen S Kesten Chairperson 5 0 X X 1177 0 0 Denise Buonocore Chair-Elect 5 0 X X 0 0 0 Lisa Falcon Secretary & Treasurer 2 0 X X 0 0 0 Nancy Freeland Director 2 4 X 0 0 0 Deborah Klein Director 2 4 X 0 0 0 Sonia Astle Director 2 0 X 0 0 0 Teresa Jahn Director 2 0 X 0 0 0 Elizabeth Scruth Director 2 0 X 0 0 0 Patty Cox Director 2 0 X 0 0 0 Dana Woods Chief Executive Officer 15 40 X 0 355063 35957 Michael C Willett Chief Financial Officer 10 40 X 0 258485 30025 1177 613548 65982 0 0 1 0 PSI Services LLC 18000 W 105th Street Olathe KS 660617543 Provides testing services 1668234 Merrill Lynch 7825 Fay Avenue Suite 300 La Jolla CA 92037 Investment Advisor 186660 2 0 0 0 0 0 54000 0 54000 Exam fee revenue 541900 5113935 5113935 0 0 Recertification revenue 541900 2459240 2459240 0 0 Certification celebration dinner 541900 44960 0 0 44960 11817 0 0 11817 7629952 481653 0 0 481653 0 0 0 0 127313 98150 22863 6300 0 0 6381727 365138 5889098 0 492629 365138 857767 0 0 857767 0 0 9150685 7671325 22863 1402497 X 0 0 0 0 1177 0 0 0 0 0 0 5118 0 0 0 186660 1933396 484995 102282 0 0 0 258863 0 127982 0 0 0 0 Administrative expense allocation 4563826 Business and property taxes 1730 78913 7744942 0 0 0 226759 283337 1648622 2069873 0 0 39938 180624 0 0 0 0 0 0 0 0 3479 3818 20750068 22859849 0 0 0 0 0 0 0 0 22668866 25397501 1135625 1043974 0 0 289435 457616 0 0 0 0 0 0 0 0 0 0 0 1425060 1501590 X 21243806 23895911 0 0 0 0 21243806 23895911 22668866 25397501 1405743 1246362 0 0 0 0 X 0 1 X 1 0 RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 10397643 1246362 0 0 596 1246958 9150685 0 0 0 9150685 7745538 0 0 0 596 596 7744942 0 0 0 7744942 Schedule D, Part XI, Line 2d Cash discounts recorded in audit as expense credit; recorded as revenue on tax return. Schedule D, Part XII, Line 2d Cash discounts recorded as expense credit in audited statements; recorded as revenue in tax return. X X X 1 1 X X X X X 0 0 0 Dana Woods Chief Executive Officer 0 346366 0 0 0 8697 0 26085 0 11504 0 392652 0 Michael C Willett Chief Financial Officer 0 256985 0 1500 0 0 0 19345 0 12134 0 289964 0 0 Schedule J, Part I, Line 1a The CEO contract allows for her to bring her husband to our national conference, the National Teaching Institute (NTI), held annually in May. This is the only trip where she is reimbursed for companion travel. This amount is included in her taxable compensation. The volunteer Chairperson and Chair-elect receive a clothing allowance to defray the personal cost for speaking engagements on behalf of the Association. The allowance is for purchases up to $5,000 and is grossed up 50% to ensure the volunteer is not impacted financially by the clothing compensation. The CEO contract allows for up to $5,000 annually in travel upgrades Schedule J, Part I, Line 3 The process of reviewing and setting CEO compensation is the responsibility of the AACN CEO Compensation and Evaluation Committee. This committee is comprised of the President and President-elect, with the Immediate Past President serving as an ad-hoc member (note that all of these are volunteer, non-compensated positions). The current Treasurer and Secretary of the Board join and serve on the committee whenever decisions related to CEO compensation are required (these too are volunteer, non-compensated positions). The Committee performs an annual performance evaluation and a review of comparable compensation data. The Chief Financial Officer (CFO) provides consultation to the committee related to CEO compensation benchmarking surveys. An independent consulting firm was engaged to review and opine on the CEO compensation. The last CEO compensation review and adjustment occurred in December 2016. The CEO is accountable for compensation levels for all other positions. Each team member receives an annual review and compensation adjustment at the beginning of the calendar year. Salary adjustments are aligned with the annual budget and are allocated based on benchmark salary data and the performance evaluation of each team member. The last salary adjustment occurred in January, 2017. Form 990, Part VI, Section A, Line 6 AACN Certification Corporation is organized as a not-for-profit Corporation. Its sole member is its affiliated not-for-profit association, American Association of Critical-Care Nurses (AACN). Form 990, Part VI, Section A, Line 7a The AACN Certification Corporation Board of Directors is comprised of nine voting directors and the CEO who serves as an ex-officio member with no power to vote. For seven of the director positions, candidates are vetted by a governance committee and then forwarded to both the AACN Certification Board as well as the AACN Board of Directors for appointment to a 3-year term in office. The two additional directors share joint appointments on the AACN and AACN Certification boards and are designated by the President of AACN and the Chairperson of AACN Certification Corporation to serve a one-year term on the Certification Board while fulfilling their three-year AACN board term. Form 990, Part VI, Section A, Line 7b The bylaws of AACN Certification Corporation state that the following actions need to be approved by the written assent of its sole shareholder, AACN: (a) the borrowing of money for long-term capital needs of Certification; (b) the purchase, sale, lease, disposition or hypothecation of real property by Certification; (c) the merger, dissolution, or sale of all assets of Certification; and (d) the amendment of the Articles of Incorporation or Bylaws of AACN Certification Corporation. Form 990, Part VI, Section B, Line 11b The completed form 990 and related schedules are disseminated to the Audit Committee for review in advance of a conference call for the purpose to review and approve the return. All Audit Committee members, along with the Chief Financial Officer, participate in a conference call where all questions or concerns raised by the committee members are resolved to ensure unanimous approval of the return. The Audit Committee then reports any findings to the full Board of Directors. Form 990, Part VI, Section B, Line 12c The Conflict of Interest Policy is reviewed annually at the Fall Board meeting as this is the orientation meeting for newly elected Directors. Each Director is required annually to complete a Conflicts of Interest Statement that lists any potential conflicts. In addition, all employees agree to Conflict of Interest and Work Ethics statements contained in the Employee Handbook. Form 990, Part VI, Section B, Line 15 AACN Certification Corporation shares employees with its affiliate, American Association of Critical-Care Nurses (AACN) and all compensation is recorded through AACN but allocated to AACN Certification Corporation based on estimated percentages of time spent on Certification programs. The process of reviewing and setting CEO compensation is the responsibility of the AACN CEO Compensation and Evaluation Committee. This committee is comprised of the President and President-elect, with the Immediate Past President serving as an ad-hoc member (note that all of these are volunteer, non-compensated positions). The current Treasurer and Secretary of the Board join and serve on the committee whenever decisions related to CEO compensation are required (these too are volunteer, non-compensated positions). The Committee performs an annual performance evaluation and a review of comparable compensation data. The Chief Financial Officer (CFO) provides consultation to the committee related to CEO compensation benchmarking surveys. An independent consulting firm was engaged to review and opine on the CEO compensation. The last CEO compensation review and adjustment occurred in December 2016. The CEO is accountable for compensation levels for all other positions. Each team member receives an annual review and compensation adjustment at the beginning of the calendar year. Salary adjustments are aligned with the annual budget and are allocated based on benchmark salary data and the performance evaluation of each team member. The last salary adjustment occurred in January, 2017. Form 990, Part VI, Section C, Line 19 AACN Certification Corporation does not make governing documents or conflict of interest policies available to the public. The financial statements of the organization are part of the consolidated audited financial statements that are published to the AACN membership within 120 days of the end of the fiscal year. The financial report is included in the Association newsletter, AACN Bold Voices, which is available to the public digitally on the AACN website. The audited financial statements are posted on the AACN website and are available to the public upon request. Form 990, Part IX, Line 11g Most of this balance is paid to our testing service provider ($1,840,777) who is paid for each candidate who sits for an exam as well as mailing certificates to those who pass the exam. In addition, this amount includes fees for test construction, item writing, and studies of practice to ensure our exams are based on up to date best practices. Other amounts include fees for facilitation of Certification Board meeting ($20,084), $9,800 for development of Board orientation videos, $28,644 for providing a digital version of Bold Voices to those who hold a certification but are not members of AACN, $13,079 of printing support, $8,000 for re-accreditation support, and $8,353 for review of exam questions. American Association of Critical-Care Nurses 101 Columbia Suite 200 Aliso Viejo CA 926564109 952706905 American Association of Critical-Care Nursing is a professional nursing membership organization CA 501(c)(3) 9 American Association of Critical Care Nurses 0 1 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 1 0 0 American Association of Critical-Care Nurses a-iii 29163 Royalties paid by American Association of Critical Care Nurses (AACN) for Certification recognition products sold at conferences and through an online bookstore. Amount transferred to Certification is based on the gross profit derived for the sale of these Certification items. Examples of Certification products include badge holders, pins, pens, fleeces, etc. American Association of Critical-Care Nurses n 949153 Corporate overhead costs are allocated among the related entities using a step-basis methodology based on each entity's usage of these shared services. Each department cost (includes customer care, finance, information technology, human resources, meetings, executive, mailing & fulfillment, facilities, business strategy and insights, and organizational effectiveness) is allocated based on estimated time spent by team members, space allocations, percentage of direct program costs, etc. Allocations are done on each department based on these estimates and charged to each separate entity on a monthly basis. American Association of Critical-Care Nurses o 1783418 Included in the allocation of overhead costs is the cost of salaries and benefits for these support departments. In these departments, salaries and benefits expenses make up 67.19% of the overall costs. Based on this percentage, the amount recorded here represents 67.19% of the $2,892,877 total general and administrative costs allocated to AACN Certification Corporation. American Association of Critical-Care Nurses p 2892877 Reimbursements from one entity to another flow through the intercompany account balances. As an example, all cash is deposited to the AACN account. Amounts from Certification create a receivable due them and a payable on AACN's records. Similarly, most expenses are paid by AACN, and when Certification related payments are made they create a receivable for AACN and a payable for Certification Corporation. Quarterly we review the intercompany account balances and transfer funds between organizations to ensure that the intercompany balances are paid. American Association of Critical-Care Nurses q 0 Reimbursements from one entity to another flow through the intercompany account balances. As an example, all cash is deposited to the AACN account. Amounts from Certification create a receivable due them and a payable on AACN's records. Similarly, most expenses are paid by AACN, and when Certification related payments are made they create a receivable for AACN and a payable for Certification Corporation. Quarterly we review the intercompany account balances and transfer funds between organizations to ensure that the intercompany balances are paid.