2017-06-28T10:53:32-05:00 2016-12-31 420714325 RSM US LLP 1861 INTERNATIONAL DRIVE SUITE 400 MCLEAN VA 22102 990 2016-01-01 541860956 AMERICAN REGISTRY FOR INTERNET NUMBERS LTD AMER 7032279840 PO BOX 232290 CENTREVILLE VA 20120 JOHN CURRAN PRESIDENT & CEO 7032279840 2017-06-27 1 YONG ZHANG CPA P01249785 7033366400 108.171.131.186 2017-06-27 14:49:07 ED P 9E5CB7256FC422C6D82BE40595290C30C37C1F6E 9E5CB7256FC422C6D82BE40595290C30C37C1F6E 2016 2021-01-29 14:40:06Z X JOHN CURRAN PO BOX 232290 CENTREVILLE VA 20120 28422512 0 X WWW.ARIN.NET X 1997 VA THE AMERICAN REGISTRY FOR INTERNET NUMBERS, LTD (ARIN) WAS ESTABLISHED FOR THE PURPOSE OF ADMINISTRATION AND REGISTRATION OF IP ADDRESS RESOURCES AND AUTONOMOUS SYSTEM NUMBER ASSIGNMENT RESOURCES. ARIN'S SERVICE REGION INCLUDES ANGUILLA, ANTIGUA AND BARBUDA, BAHAMAS, BARBADOS, BERMUDA, CAYMAN ISLANDS, DOMINICA, GRENADA, GUADELOUPE, JAMAICA, MARTINIQUE, MONTSERRAT, PUERTO RICO, SAINT BARTHELEMY, SAINT KITTS AND NEVIS, SAINT LUCIA, ST PIERRE AND MIQUELON, SAINT VINCENT AND THE GRENADINES, ST MARTIN, TURKS AND CAICOS ISLANDS, VIRGIN ISLANDS BRITISH, VIRGIN ISLANDS US, CANADA, THE UNITED STATES, UNITED STATES OUTLYING AREAS, ANTARCTICA, BOUVET ISLAND, HEARD AND MCDONALD ISLANDS, AND ST HELENA. ARIN IS ONE OF FIVE REGIONAL INTERNET REGISTRIES (RIRS) WORLDWIDE WHICH COLLECTIVELY PROVIDE IP REGISTRATION SERVICES TO ALL REGIONS AROUND THE GLOBE. 7 6 85 28 0 0 0 0 17860242 18049936 1663654 1710685 0 0 19523896 19760621 181100 1238566 0 0 9101322 10866009 0 0 0 8516064 9604730 17798486 21709305 1725410 -1948684 41898046 42658962 8719743 11381818 33178303 31277144 X THE AMERICAN REGISTRY FOR INTERNET NUMBERS, LTD (ARIN) WAS ESTABLISHED FOR THE PURPOSE OF ADMINISTRATION AND REGISTRATION OF INTERNET PROTOCOL (IP) RESOURCES. SEE SCHEDULE O.ARIN PROMOTES THE COMMON BUSINESS INTERESTS OF ITS MEMBERS BY OVERSEEING THE INTERNET PROTOCOL RESOURCE REGISTRATION PROCESS SO AS TO PROMOTE MORE EFFICIENT USE OF THE INTERNET BY ITS MEMBERS AND OTHER INTERESTED USERS AND THEREBY PROMOTE THE EFFICIENCY OF THE BUSINESS OPERATIONS OF EACH. 0 0 ESTABLISHED IN DECEMBER 1997, THE AMERICAN REGISTRY FOR INTERNET NUMBERS (ARIN) IS A REGIONAL INTERNET REGISTRY (RIR) INCORPORATED IN THE COMMONWEALTH OF VIRGINIA, USA. ARIN, A NONPROFIT ORGANIZATION, PROVIDES SERVICES RELATED TO THE TECHNICAL COORDINATION AND MANAGEMENT OF INTERNET NUMBER RESOURCES IN ITS RESPECTIVE SERVICE REGION. STAKEHOLDERS IN THE COMMUNITY DRIVE POLICIES AND ACTIVITIES. ARIN PROMOTES THE COMMON BUSINESS INTERESTS OF ITS MEMBERS BY OVERSEEING THE INTERNET PROTOCOL (IP) ADDRESS REGISTRATION PROCESS SO AS TO PROMOTE MORE EFFICIENT USE OF THE INTERNET BY ITS MEMBERS AND OTHER INTERESTED USERS AND THEREBY PROMOTE THE EFFICIENCY OF THE BUSINESS OPERATIONS OF EACH. REGISTRATION SERVICES INCLUDES COORDINATION AND MANAGEMENT OF IP ADDRESS SPACE AND ASN ALLOCATIONS AND ASSIGNMENTS, RESOURCE TRANSFERS, RECORD MAINTENANCE, REGISTRATION TRANSACTION INFORMATION (WHOIS), ROUTING INFORMATION (INTERNET ROUTING REGISTRY), AND REVERSE DNS. ARIN ALLOCATES AND ASSIGNS INTERNET NUMBER RESOURCES TO INTERNET SERVICE PROVIDERS AND END USERS WITHIN ITS SERVICE REGION. IP NUMBER MANAGEMENT - ARIN IS TASKED WITH THE MANAGEMENT OF IP ADDRESS SPACE, AUTONOMOUS SYSTEM NUMBERS, AND IN-ADDR ARPA ADDRESS MAPPING, AS WELL AS DATABASE MAINTENANCE AND VERIFICATION OF REASSIGNMENT INFORMATION. ARIN ALSO PROMOTES THE CONSERVATION OF INTERNET PROTOCOL RESOURCES AND DISTRIBUTES GLOBALLY UNIQUE INTERNET ADDRESSES IN A HIERARCHICAL MANNER, PERMITTING THE ROUTING SCALABILITY OF ADDRESSES, WHICH IS NECESSARY TO ENSURE PROPER OPERATION OF INTERNET ROUTING. 0 0 0 1 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 1 1 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 0 0 0 0 0 0 1 18 0 1 85 1 0 0 0 0 0 0 X 7 6 0 0 1 0 1 1 1 1 0 0 0 1 1 1 1 1 1 1 1 0 X NATE DAVIS COO 7032279840 PO BOX 232290 CENTREVILLE VA 20120 VINT CERF CHAIRMAN OF THE BOARD JAN-JUN 5.00 X X 0 0 0 VINT CERF VICE CHAIR JUL-DEC 2.00 X 0 0 0 PAUL ANDERSEN CHAIRMAN OF THE BOARD JUL-DEC 5.00 X X 0 0 0 PAUL ANDERSEN VICE CHAIR JAN -JUN 2.00 X 0 0 0 BILL SANDIFORD TREASURER 2.00 X X 0 0 0 TIMOTHY DENTON SECRETARY 2.00 X X 0 0 0 AARON HUGHES BOARD MEMBER 2.00 X 0 0 0 BILL WOODCOCK BOARD MEMBER 2.00 X 0 0 0 JOHN CURRAN CEO AND PRESIDENT 40.00 X X 514465 0 51142 NATE DAVIS COO 40.00 X 355751 0 47835 MARK KOSTERS CTO 40.00 X 248756 0 62935 RICHARD JIMMERSON CIO 40.00 X 237680 0 66690 CATHY HANDLEY EXEC. DIR. OF GOVT AND PUB 40.00 X 203888 0 41874 SUSAN HAMLIN DIRECTOR, CMSD 40.00 X 202360 0 50856 LESLIE DANIELLO NOBILE SR. DIR OF GLOBAL REGISTRY 40.00 X 191547 0 52247 VALORIE WINKELMAN DIRECTOR, FSD 40.00 X 182072 0 47101 ERIN ALLIGOOD DIRECTOR, HR & ADMIN 40.00 X 180044 0 51582 ANDREW NEWTON CHIEF ENGINEER 40.00 X 199509 0 32612 MICHAEL ABEJUELA ASSOCIATE GENERAL COUNSEL 40.00 X 186186 0 36328 MATTHEW ROWLEY INFRASTRUCTURE MANAGER 40.00 X 183845 0 55150 PETER TOSCANO NETWORK OPERATIONS MANAGER 40.00 X 179008 0 45858 GARTH DUBIN TECHNICAL MANAGER 40.00 X 170460 0 53799 3235571 0 696009 42 0 1 0 MCDERMOTT WILL & EMERY LLP 500 NORTH CAPITOL ST NW WASHINGTON DC 20001 LEGAL/CONSULTING SERVICE 347408 STANTON COMMUNICATIONS 1150 CONNECTICUT AVE NW SUITE WASHINGTON DC 20036 PUBLIC RELATIONS 149623 2 REGISTRATION SERVICES 900099 14809470 14809470 MAINTENANCE FEES 900099 2467699 2467699 NETWORK TRANSFERS 900099 568000 568000 IP END-USER REGISTRATI 900099 150250 150250 MEMBERSHIP DUES 900099 28464 28464 26053 26053 18049936 697823 697823 9674553 200 8661377 514 1013176 -314 1012862 1012862 19760621 18049936 0 1710685 1075000 163566 2788826 5447801 884447 1101579 643356 295991 37470 123061 119420 135325 732753 610307 979324 742369 1254668 3153262 INTERNET/DNS SERVICES 775229 NRO EXPENSES 279810 OUTREACH EXPENSES 259994 BAD DEBT EXP 105747 21709305 350 350 1615389 795172 586217 366309 761939 809057 25278586 15588753 6548110 9689833 31690607 30277766 695434 720475 41898046 42658962 1396111 2172075 7063644 6692871 259988 2516872 8719743 11381818 X 33178303 31277144 33178303 31277144 41898046 42658962 -1948684 47525 0 X X 0 1 X 1 0 0 0 0 13849864 123061 123061 123061 PART III - B THE AMERICAN REGISTRY FOR INTERNET NUMBERS, ARIN, MEMBERSHIP CONSISTS OF INTERNET RESOURCE HOLDERS. THERE ARE TWO TYPES OF MEMBERSHIPS AT ARIN. ONE TYPE IS THOSE ORGANIZATIONS WHO HOLD IP ADDRESS ALLOCATIONS THAT ARE AUTOMATICALLY CONVEYED MEMBERSHIP RIGHTS. THESE ORGANIZATIONS PAY THE BULK OF ARIN'S OPERATIONAL EXPENSES ON A RECURRING BASIS. THE ALLOCATION FEES FOR JAN-JUN 2016 WERE SET AT $500, $1,000, $2,000, $4,000, $8,000, $16,000 AND $32,000. ARIN'S FEE STRUCTURE WAS CHANGED 1 JULY 2016 WHICH INCLUDED A CREATION OF FOUR NEW SERVICE CATEGORIES; 3X-SMALL, 3X-LARGE, 4X-LARGE, AND 5X-LARGE SO THE ALLOCATION FEES GOING FORWARD ARE SET AT $250, $500, $1,000, $2,000, $4,000, $8,000, $16,000, $32,000, $64,000, $128,000 AND $256,000. THERE IS NO SET MEMBERSHIP AMOUNT ASSOCIATED WITHIN THE ALLOCATION FEE. THE SECOND TYPE OF MEMBERSHIP ARE THOSE ORGANIZATIONS WHO HOLD IP ADDRESS ASSIGNMENTS AND/OR AUTONOMOUS SYSTEM NUMBERS WHO CHOOSE TO PAY A $500 SPECIFIC MEMBERSHIP FEE FOR THE MEMBERSHIP RIGHTS. WE ARE SHOWING THE ENTIRE REVENUE FROM IP NUMBERS ALLOCATIONS, AS WELL AS THE SPECIFIC MEMBERSHIP FEE IN PART III. FEE WAIVER INFORMATION: ORGANIZATIONS THAT FALL UNDER THE CURRENT FEE SCHEDULE'S 5X-LARGE, 4X-LARGE AND 3X-LARGE SERVICE CATEGORIES WILL RECEIVE A FEE REDUCTION CREDIT AS A RESULT OF ACTION BY THE ARIN BOARD OF TRUSTEES. THIS ONE-TIME ADJUSTMENT IS INTENDED TO MAINTAIN THE SAME FEE FOR AN ORGANIZATION'S RENEWAL AS THE PRIOR FEE SCHEDULE. THE CREDIT ADJUSTMENT APPLIES TO RENEWAL DATES BETWEEN 1 JULY 2016 AND 30 JUNE 2017. AFTER 30 JUNE 2017, INVOICE CREDIT ADJUSTMENTS WILL END AND ORGANIZATIONS WILL BE INVOICED CONSISTENT WITH THE PUBLISHED FEE SCHEDULE. 3085890 906199 2179691 6285951 4750231 1535720 15906745 9932323 5974422 9689833 DUE TO ICANN 122220 DEFERRED RENT 2150213 DUE TO NRO 244439 2516872 X 20035898 47525 227438 314 275277 19760621 0 19760621 21937057 227438 314 227752 21709305 0 21709305 PART X, LINE 2: ARIN IS A QUALIFYING NOT-FOR-PROFIT ORGANIZATION AS DEFINED IN SECTION 501(C)(6) OF THE INTERNAL REVENUE CODE AND IS EXEMPT FROM FEDERAL INCOME TAXES. ACCORDINGLY, NO PROVISION FOR INCOME TAXES HAS BEEN MADE IN THE ACCOMPANYING FINANCIAL STATEMENTS. ARIN ADOPTED THE ACCOUNTING STANDARD FOR UNCERTAINTY IN INCOME TAXES, WHICH ADDRESSES THE DETERMINATION OF WHETHER TAX BENEFITS CLAIMED OR EXPECTED TO BE CLAIMED ON A TAX RETURN, SHOULD BE RECORDED IN THE FINANCIAL STATEMENTS. UNDER THIS GUIDANCE, ARIN RECOGNIZES THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE LIKELY THAN NOT THAT THE TAX POSITION WILL BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. THE TAX BENEFITS RECOGNIZED IN THE FINANCIAL STATEMENTS FROM SUCH A POSITION ARE MEASURED BASED ON THE LARGEST BENEFIT THAT HAS A GREATER THAN 50% LIKELIHOOD OF BEING REALIZED UPON ULTIMATE SETTLEMENT. THE GUIDANCE ON ACCOUNTING FOR UNCERTAINTY IN INCOME TAXES ALSO ADDRESSES DE-RECOGNITION, CLASSIFICATION, INTEREST AND PENALTIES ON INCOME TAXES, AND ACCOUNTING IN INTERIM PERIODS. MANAGEMENT EVALUATED ARIN'S TAX POSITIONS AND CONCLUDED THAT ARIN HAD TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. GENERALLY, ARIN IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2013. PART XI, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF ASSETS 314. PART XII, LINE 2D - OTHER ADJUSTMENTS: LOSS ON SALE OF ASSETS 314. PARTS XI PLEASE NOTE SCHEDULE D, PART XI, 2.B. LISTS $227,438 OF DONATED SERVICES. THESE DONATED SERVICES CONSIST OF TRANSACTIONS RELATED TO INTERESTED PARTIES. THEY WERE ALL "CONTRIBUTIONS IN KIND" SERVICES. THE MAJORITY OF THE DONATED SERVICES IS THE ARIN WEB HOSTING SERVICES PROVIDED BY VERISIGN, INTERNET SYSTEMS CONSORTIUM (ISC), PACKET CLEARINGHOUSE (PCH) AND CIRA, ONE OF THESE ORGANIZATIONS HAS AN ARIN BOARD MEMBER AS THEIR EMPLOYEE, WITH BILL WOODCOCK AT PCH. ARIN BOARD MEMBER BILL SANDIFORD IS A BOARD MEMBER OF CIRA. THE VALUE OF THESE CONTRIBUTED SERVICES IS MARKET PRICED AT $60,000 PER YEAR FOR VERISIGN, ISC AND PCH AND $21,600 PER YEAR FOR CIRA. SPONSORS OF ARIN'S MEMBERS MEETINGS THAT CONTRIBUTED THEIR SERVICES TOTALING $25,838 FOR 2016. WHILE THESE SERVICES WERE SUPPLIED TO ARIN FOR FREE, ARIN RECOGNIZED THE SERVICES RENDERED AS CONTRIBUTION REVENUE WITH AN OFFSET SHOWING THE EXPENSE IN THE COMMUNICATION CATEGORY AND THE MEMBERS MEETING CATEGORY RESPECTIVELY. 1 CENTRAL AMERICA AND THE CARIBBEAN GRANTS TO CANTO 6500 CENTRAL AMERICA AND THE CARIBBEAN GRANTS TO CTU 65000 CENTRAL AMERICA AND THE CARIBBEAN ARIN 37 FELLOWSHIPS 17585 CENTRAL AMERICA AND THE CARIBBEAN ARIN 38 FELLOWSHIPS 5341 EUROPE (INCLUDING ICELAND & GREENLAND) GRANTS TO ITU 41147 NORTH AMERICA GRANTS TO CANADIAN ISP SUMMIT 6908 NORTH AMERICA ARIN 37 FELLOWSHIPS 11411 NORTH AMERICA ARIN 38 FELLOWSHIPS 9674 0 0 0 0 0 0 163566 0 163566 CENTRAL AMERICA AND THE CARIBBEAN PROGRAM SUPPORT TO CANTO. 6500 WIRE CENTRAL AMERICA AND THE CARIBBEAN PROGRAM SUPPORT TO CTU. 65000 WIRE EUROPE (INCLUDING ICELAND & GREENLAND) PROGRAM SUPPORT TO ITU 41147 WIRE NORTH AMERICA PROGRAM SUPPORT TO CANADIAN ISP 6908 WIRE ARIN 37 FELLOWSHIPS CENTRAL AMERICA AND THE CARIBBEAN 37 17585 WIRE ARIN 38 FELLOWSHIPS CENTRAL AMERICA AND THE CARIBBEAN 38 5341 WIRE ARIN 37 FELLOWSHIPS NORTH AMERICA 37 11411 CHECK ARIN 38 FELLOWSHIPS NORTH AMERICA 38 9674 CHECK 0 0 0 0 0 0 PART I, LINE 2: ARIN HAS A FELLOWSHIP PROGRAM THAT PAYS FOR TRAVEL FOR UP TO FIVE INDIVIDUALS FROM EACH OF THE THREE SECTORS WITHIN ARIN'S SERVICE AREA (CANADA, THE CARIBBEAN AND NORTH ATLANTIC ISLANDS AND THE UNITED STATES AND OUTLYING AREAS) TO ATTEND EACH ARIN PUBLIC POLICY AND ARIN MEETING. PART I, LINE 3: THE ORGANIZATION USES GAAP TO REPORT EXPENDITURES IN A FOREIGN REGION. 1 NANOG 2864 CARPENTER ROAD SUITE 100 ANN ARBOR MI 48108 272534183 501(C)(3) 50000 SUPPORT ON 2016 NANOG WEBCASTING PROGRAMS. THE INTERNET SOCIETY 1775 WIEHLE AVENUE STE 201 RESTON VA 20190 541650477 501(C)(3) 1000000 IETF ENDOWMENT CONTRIBUTION - ONE TIME CORPORATE GIFT THE INTERNET SOCIETY 1775 WIEHLE AVENUE STE 201 RESTON VA 20190 541650477 501(C)(3) 25000 SUPPORT FOR THE RFC EDITOR 2 0 PART I, LINE 2: ARIN PROVIDES GRANTS EACH YEAR TO OTHER SIMILAR NON-PROFIT ORGANIZATIONS FOR THE PURPOSE OF FUNDING THEIR PROGRAM SERVICE ACTIVITIES. ARIN RECEIVES INVOICES FROM THOSE NON-PROFIT ORGANIZATIONS TO OFFSET THE COST OF THEIR PROGRAM SERVICE ACTIVITIES. ARIN EXAMS THE INVOICE TO ENSURE THE PROPER USE OF GRANTS IN THOSE NON-PROFIT ORGANIZATIONS. X 1 1 X X X 0 0 0 JOHN CURRAN CEO AND PRESIDENT 397499 0 116000 0 966 0 23850 0 27292 0 565607 0 0 0 NATE DAVIS COO 283385 0 71400 0 966 0 23850 0 23985 0 403586 0 0 0 MARK KOSTERS CTO 205790 0 42000 0 966 0 30598 0 32337 0 311691 0 0 0 RICHARD JIMMERSON CIO 196541 0 40500 0 639 0 32009 0 34681 0 304370 0 0 0 CATHY HANDLEY EXEC. DIR. OF GOVT AND PUB 173005 0 26300 0 4583 0 25697 0 16177 0 245762 0 0 0 SUSAN HAMLIN DIRECTOR, CMSD 166070 0 34000 0 2290 0 25041 0 25815 0 253216 0 0 0 LESLIE DANIELLO NOBILE SR. DIR OF GLOBAL REGISTRY 157740 0 32401 0 1406 0 20853 0 31394 0 243794 0 0 0 VALORIE WINKELMAN DIRECTOR, FSD 148060 0 32000 0 2012 0 22631 0 24470 0 229173 0 0 0 ERIN ALLIGOOD DIRECTOR, HR & ADMIN 141791 0 37995 0 258 0 21147 0 30435 0 231626 0 0 0 ANDREW NEWTON CHIEF ENGINEER 179910 0 19040 0 559 0 26447 0 6165 0 232121 0 0 0 MICHAEL ABEJUELA ASSOCIATE GENERAL COUNSEL 154305 0 31600 0 281 0 23837 0 12491 0 222514 0 0 0 MATTHEW ROWLEY INFRASTRUCTURE MANAGER 162391 0 21150 0 304 0 24719 0 30431 0 238995 0 0 0 PETER TOSCANO NETWORK OPERATIONS MANAGER 158610 0 19890 0 508 0 24585 0 21273 0 224866 0 0 0 GARTH DUBIN TECHNICAL MANAGER 153830 0 16345 0 285 0 23393 0 30406 0 224259 0 0 0 PART I, LINE 1A THE FOLLOWING EMPLOYEES RECEIVED TAXABLE HEALTH CLUB BENEFITS DURING FY 2016. ERIN ALLIGOOD: $600 NATE DAVIS: $425 GARTH DUBIN: $240 SUSAN HAMLIN: $360 ANDY NEWTON: $360 AS INDICATED IN SCHEDULE J , AS PART OF ARIN'S BENEFITS PROGRAM, ARIN PROVIDES FOR REIMBURSEMENT FOR HEALTH CLUB MEMBERSHIPS FOR ANY INTERESTED EMPLOYEES UP TO $50 PER MONTH. PART II AS A GENERAL NOTE OF EXPLANATION FOR SCHEDULE J, PART 2 ON COMPENSATION, ARIN CONTRIBUTES 9% TO THE 401K RETIREMENT PLAN OF ANY EMPLOYEE WHO CONTRIBUTES 6% OF THEIR SALARY. THE MATCH IS 6% FOR THE FIRST 3% EMPLOYEE CONTRIBUTION AND THEN DOLLAR FOR DOLLAR UP TO 6% OF THE EMPLOYEE'S SALARY. IN ADDITION, ARIN CONTRIBUTES TO THE HEALTH INSURANCE COST OF EMPLOYEES. SOME EMPLOYEES HAVE OPTED OUT OF ONE OR BOTH OF THESE BENEFITS WHICH WOULD EXPLAIN ANY VARIATION IN THE AMOUNTS LISTED IN EITHER COLUMN C OR D, WITH THE RESULTING TOTAL SHOWING IN COLUMN E. NANOG SEE PART V 50000 SEE PART V 0 PART IV (A) NAME OF PERSON: NANOG(B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION:KEVIN BLUMBERG - ADVISORY COUNCIL IS ON THE NANOG PROGRAM COMMITTEE(D) DESCRIPTION OF TRANSACTION: ARIN PAID SUPPORT TO NANOG IN THE AMOUNT OF $50,000 FOR THE WEBCAST OF ITS MEETINGS. PART IV PLEASE NOTE THAT SCHEDULE L , THE DISCLOSURE OF "BUSINESS TRANSACTIONS INVOLVING INTERESTED PERSONS", RELATES TO ANY TRANSACTION "THAT EXCEEDED THE GREATER OF $10,000 OR 1 PERCENT OF TOTAL REVENUES". FOR AVOIDANCE OF DOUBT, ARIN HAS OPTED TO DISCLOSE ALL BUSINESS TRANSACTIONS OUTSIDE OF NORMAL BUSINESS (E.G. MEMBERSHIP AND/OR REGISTRATION SERVICES FEES) REGARDLESS OF DOLLAR AMOUNT. FORM 990, PART I, QUESTION 6: ARIN ESTIMATES THAT IT HAS AT LEAST 28 VOLUNTEERS WHO DONATE A SUBSTANTIAL PORTION OF THEIR VALUABLE TIME TO ITS MISSION. THIS INCLUDES ADVISORY COUNCIL MEMBERS, BOARD MEMBERS, AND MEMBERS OF THE COMMUNITY WHO VOLUNTEER THEIR TIME WITH COMMITTEE WORK. PLEASE NOTE, THAT ARIN ALSO MAINTAINS A PUBLIC POLICY MAILING LIST THAT IS QUITE ACTIVE, WITH MANY DIFFERENT MESSAGES SENT FROM MEMBERS OF THE COMMUNITY AND THE GENERAL PUBLIC. THERE ARE ALSO SEVERAL OTHER MAILING LISTS AS WELL AS A SUGGESTION PROCESS ONLINE FOR PEOPLE OR ORGANIZATIONS TO MAKE SUGGESTIONS FOR IMPROVEMENTS. ADDITIONALLY, ARIN PUBLIC POLICY MEETINGS HAVE AN AVERAGE ATTENDANCE OF 150, AND THERE ARE TWO A YEAR. THUS, THE ANSWER TO THIS QUESTION COULD CONCEIVABLY BE IN THE HUNDREDS, DEPENDING UPON LEVEL OF EFFORT TO BE CONSIDERED A VOLUNTEER. FORM 990, PART VI, SECTION A, LINE 4 CHANGES TO ARIN BYLAWS ADOPTED MAY 20, 2016 1.IMPROVING LANGUAGE FOR OPTIONAL APPOINTMENT OF A TRUSTEE FOR PURPOSES OF BROADENING BOARD DIVERSITY 2.IMPROVING LANGUAGE, WHEN ABSENCE IN THE CHARTER, NOTING THAT THE BOARD SHALL DETERMINE THE TERMS OF SERVICE FOR COMMITTEE MEMBERSHIP 3.CLARIFYING THE STAGGERING OF TERMS OF SERVICE FOR TRUSTEE AND ADVISORY COUNCIL MEMBERS 4.MODIFYING THE TRUSTEE REMOVAL PROCESS TO MAKE REMOVALS BY THE BOARD OF TRUSTEES SUBJECT TO MEMBERSHIP RATIFICATION 5.CLARIFYING THE PROCESS FOR INTERIM APPOINTMENTS AND PARTIAL TERMS 6.CHANGING THE PROCESSES FOR CERTAIN BYLAWS CHANGES AND ARTICLES OF INCORPORATION CHANGES SO ALL PROPOSED CHANGES ARE SENT TO COMMUNITY CONSULTATION BEFORE FINAL ADOPTION BY THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 6 MEMBERSHIP IS AUTOMATICALLY CONVEYED TO ISPS WHO RECEIVE IP RESOURCES FROM ARIN. MEMBERSHIP IS ALSO OPEN TO ANY ENTITY THAT HAS A SIGNED REGISTRATION SERVICE AGREEMENT (RSA) OR LEGACY RSA WITH ARIN AND HOLDS AN INTERNET NUMBER RESOURCE IN THE ARIN REGION AND WISHES TO PARTICIPATE IN FORMING SOLUTIONS TO INTERNET NUMBER RESOURCE-RELATED ISSUES. FORM 990, PART VI, SECTION A, LINE 7A MEMBER IN GOOD STANDING HAS THE RIGHT TO PARTICIPATE IN AN ELECTION FOR ONE OR MORE MEMBERS OF THE BOARD OF TRUSTEES AND OF THE ADVISORY COUNCIL. FORM 990, PART VI, SECTION A, LINE 7B THE TRUSTEE REMOVAL PROCESS BY THE BOARD OF TRUSTEES IS SUBJECT TO MEMBERSHIP RATIFICATION. IN ADDITION, THE PROCESSES FOR CERTAIN BYLAWS CHANGES AND ARTICLES OF INCORPORATION CHANGES ARE SENT TO COMMUNITY CONSULTATION BEFORE FINAL ADOPTION BY THE BOARD OF TRUSTEES. FORM 990, PART VI, SECTION A, LINE 8B ARIN HAD NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11B THE FINANCE COMMITTEE ASSISTS IN PREPARATION OF THE 990 FILING, THEN PRESENTS IT TO THE FULL BOARD FOR THE FINAL REVIEW, BEFORE FILING TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C AS SET FORTH IN PARAGRAPH THREE BELOW, A TRUSTEE OF ARIN WHO HAS A PERSONAL INTEREST IN A TRANSACTION, AS DEFINED BELOW, MAY NOT PARTICIPATE IN ANY DISCUSSION OF THAT TRANSACTION BY THE TRUSTEES OF ARIN AND MAY NOT VOTE TO DETERMINE WHETHER TO AUTHORIZE, APPROVE, OR RATIFY THAT TRANSACTION EXCEPT AS SPECIFICALLY DESCRIBED BELOW. FOR PURPOSES OF THIS CONFLICT OF INTEREST STATEMENT, A "PERSONAL INTEREST" IS DEFINED AS ANY ACT THAT WILL PROVIDE, DIRECTLY OR INDIRECTLY, A FINANCIAL BENEFIT OR A DISPARATE BENEFIT INDIVIDUALLY TO THE TRUSTEE, OR TO A COMPANY HE OR SHE IS EMPLOYED BY, HAS A SIGNIFICANT FINANCIAL INTEREST IN, OR REPRESENTS IN ANY FASHION. HOWEVER, POLICIES UNDER CONSIDERATION BY ARIN ARE LIKELY TO HAVE AN IMPACT ON THE BUSINESS OF EVERY TRUSTEE. IT IS EXPECTED THAT MOST POLICY DECISIONS WILL HAVE A DIRECT OR INDIRECT IMPACT ON THE TRUSTEE'S COMPANY, BUT SUCH A NON-INDIVIDUALIZED INTEREST DOES NOT CONSTITUTE A "PERSONAL INTEREST" AS USED IN THIS STATEMENT. A "TRANSACTION" WITH ARIN FOR PURPOSES OF THIS STATEMENT IS A CONTRACT OR CONSULTANCY IN WHICH THE TRUSTEE HAS A DIRECT OR INDIRECT FINANCIAL BENEFIT, OR A POLICY UNDER CONSIDERATION THAT WILL HAVE A DISPARATE AND UNUSUAL IMPACT ON A BUSINESS WITH WHICH THE TRUSTEE IS DIRECTLY OR INDIRECTLY ASSOCIATED. THE MERE EXISTENCE OF A PERSONAL INTEREST BY A TRUSTEE OF ARIN IN A TRANSACTION WITH ARIN SHALL NOT INVALIDATE ARIN'S ABILITY TO ENTER THAT TRANSACTION SO LONG AS THE FOLLOWING CONDITIONS ARE MET: (I) THE MATERIAL FACTS OF THE PERSONAL NATURE OF THE TRANSACTION WITH ARIN AND THE TRUSTEE'S INTEREST IN THE TRANSACTION WITH ARIN ARE FULLY DISCLOSED TO THE BOARD OF TRUSTEES OF ARIN, EITHER BY THE TRUSTEE HAVING A DIRECT OR INDIRECT PERSONAL INTEREST IN THE TRANSACTION WITH ARIN, OR ARE BROUGHT TO THE ATTENTION OF THE BOARD BY A THIRD PARTY; OR (II) THE BOARD OF TRUSTEES OF ARIN, BY A VOTE OF THE DISINTERESTED TRUSTEES OF ARIN VOTE TO AUTHORIZE, APPROVE, OR RATIFY A TRANSACTION WITH ARIN; OR (III) THE TRANSACTION WITH ARIN IN WHICH THE DIRECT OR INDIRECT PERSONAL INTEREST OF AN ARIN TRUSTEE WAS DISCLOSED TO THE BOARD OF TRUSTEES OF ARIN AND WAS DETERMINED BY THE BOARD OF TRUSTEES OF ARIN ENTITLED TO VOTE ON THE MATTER IS DETERMINED BY THE BOARD OF TRUSTEES VOTING TO BE IN ARIN'S INTERESTS, NOTWITHSTANDING THE PERSONAL INTEREST OF THE NON-VOTING TRUSTEE. IN DETERMINING WHETHER A CONFLICT OF INTEREST EXISTS, THE BOARD OF TRUSTEES OF ARIN HAS THE PREROGATIVE, UPON REVIEW OF ALL FACTS AND CIRCUMSTANCES, TO MAKE ITS OWN DETERMINATION OF WHETHER A CONFLICT OF INTEREST EXISTS AND HOW IT IS APPROPRIATE TO PROCEED. A TRUSTEE WHO PERCEIVES THE POSSIBILITY OF A CONFLICT OF INTEREST FOR HIM OR HERSELF, OR FOR ANOTHER BOARD MEMBER, MAY RAISE THIS ISSUE AT ANY POINT PRIOR TO A VOTE ON ANY ISSUE. ANY TRUSTEE WHO PERCEIVES A POSSIBLE CONFLICT OF INTEREST MAY PRESENT JUSTIFICATION WITH RESPECT TO WHETHER OR NOT A CONFLICT OF INTEREST EXISTS, BUT THE ENTIRE BOARD, WITH THE EXCEPTION OF THE TRUSTEE HAVING THE POTENTIAL CONFLICT OF INTEREST, SHALL MAKE THE FINAL DETERMINATION TO PROCEED IN SUCH A MATTER. IF THE BOARD OF TRUSTEES FINDS THERE IS A CONFLICT OF INTEREST, THE TRUSTEE WITH THE CONFLICT MAY BE EXCLUDED BY THE CHAIR OF THE BOARD FROM THAT PORTION OF ANY MEETING WHERE A SUBSTANTIVE DISCUSSION OR DECISION TO ENGAGE OR NOT IN SUCH A TRANSACTION IS MADE, EXCEPT THAT HE OR SHE MAY PROVIDE ANY INFORMATION THAT WILL ASSIST THE TRUSTEES IN SUCH A MATTER BEFORE LEAVING SUCH A MEETING. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION COMMITTEE OF THE ARIN BOARD OF TRUSTEES SETS THE COMPENSATION FOR THE CEO. SEVERAL FACTORS ARE CONSIDERED IN SETTING THE COMPENSATION RATE. THE JOB DESCRIPTION FOR THE CEO FULLY DETAILS THE EXPECTATIONS FOR PERFORMANCE AND ALSO DESCRIBES THE AMOUNT OF BONUS TO BE AWARDED. THE ANNUAL BONUS FOR THE CEO IS BASED ON JOB PERFORMANCE, THERE IS NO AUTOMATIC BONUS PAYMENT GIVEN. ARIN CONDUCTS A FULL MARKET PRICING SALARY SURVEY EVERY THREE YEARS, COMPARING ALL COMPANY POSITIONS TO COMPARABLE BUSINESS IN THE AREA. CEO SALARY LEVELS ARE ALSO CULLED FROM PRIVATE SOURCES AND JOB ADVERTISEMENTS. THE PERFORMANCE AND EXPERIENCE LEVEL OF THE CURRENT CEO ARE ALSO CONSIDERED WHEN SETTING THE ANNUAL BONUS AND PAY RAISE AMOUNT. THE MEMBERS OF THE COMPENSATION COMMITTEE CONVENE PERIODICALLY THROUGHOUT THE YEAR TO ASSESS THE PERFORMANCE OF THE CEO. ANNUALLY, THEY FORMALLY MEET, ANALYZE THE INFORMATION THEY HAVE GATHERED, AND DECIDE THE ANNUAL BONUS AMOUNT. ARIN CONSIDERS THE SALARY SURVEY INFORMATION, PAYS RAISE PERCENTAGE FROM OUR GEOGRAPHIC REGION, AND OTHER INFORMATION GLEANED FROM BUSINESS PUBLICATIONS THAT PERTAIN TO EXECUTIVE PAY. EVERY 2-3 YEARS, ARIN CONDUCTS A COMPANY WIDE SALARY SURVEY/MARKET PRICING OF ALL COMPANY POSITIONS. UPDATED JOB DESCRIPTIONS AND JOB TITLES ARE PROVIDED TO A COMPANY THAT WORKS WITH CURRENT DETAILED DATA FROM MAJOR COMPENSATION SURVEYS. WE COMPARE ARIN SALARIES TO THE LOCAL AREA, THE NORTHEAST CORRIDOR, NATIONWIDE TECHNOLOGY COMPANIES, NATIONWIDE TRADE AND MEMBERSHIP ASSOCIATION, LOCAL TRADE AND MEMBERSHIP ASSOCIATIONS, NATIONAL NONPROFIT COMPANIES AND LOCAL NONPROFIT COMPANIES. SOME OF THE SURVEYS WE USE INCLUDE: CULPEPPER, MERCER, CORDOM, PRM AND ASAE. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION'S ORGANIZING DOCUMENTS, FINANCIAL STATEMENTS AND CONFLICT OF INTEREST POLICY ARE AVAILABLE AND CAN BE FOUND ON THE ORGANIZATION'S WEBSITE FOR THE SAME PERIOD OF DISCLOSURE AS SET FORTH IN SECTION 6104(D). FORM 990, PART XII, LINE 2C THE PROCESS FOR OVERSEEING THE AUDIT OF THE FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT THAT AUDITED THE FINANCIAL STATEMENTS HAS BEEN CONSISTENT WITH PRIOR YEARS.