2016-10-25T13:47:50-05:00 2015-12-31 381357951 PLANTE & MORAN PLLC PO BOX 307 SOUTHFIELD MI 480370307 990 2015-01-01 383203030 FRAUNHOFER USA INC FRAU 7343549700 44792 HELM STREET PLYMOUTH MI 48170 ERIN SIMMONDS TREASURER 7343549700 2016-10-21 1 TINA M PETERS CPA P00904574 2483522500 2015 2017-02-10 21:41:12Z PATRICK BRESSLER 44792 HELM STREET PLYMOUTH MI 48170 34930407 0 X WWW.FRAUNHOFER.ORG X 1994 RI ENHANCE THE TECHNOLOGICAL COMPETENCE AND KNOWLEDGE OF THE U.S. MANUFACTURING INDUSTRY BY FOSTERING ADVANCED TECHNOLOGICAL RESEARCH AND DEVELOPMENT AND INNOVATIVE METHODS OF TECHNOLOGICAL EDUCATION FOR THE BETTERMENT OF THE GENERAL PUBLIC AND THE ACADEMIC, SCIENTIFIC, AND MANUFACTURING COMMUNITIES. 8 6 326 8 0 0 11361615 9353299 27192429 24773268 396405 427487 77508 90300 39027957 34644354 12620 21770 0 0 19681930 19637225 0 0 0 19957617 17779580 39652167 37438575 -624210 -2794221 61495672 60122622 23727030 25130898 37768642 34991724 X SEE SCHEDULE OFRAUNHOFER USA OFFERS CUSTOMIZED, ADVANCED TECHNOLOGY RESEARCH, DEVELOPMENT AND DEPLOYMENT. FRAUNHOFER USA SHALL SERVE MARKET-DRIVEN TECHNOLOGY NEEDS; PROMOTE INTERNATIONAL COOPERATION IN BUSINESS; ESTABLISH STRATEGIC ALLIANCES WITH INDUSTRY, GOVERNMENT AND ACADEMIC PARTNERS. 0 0 20567745 21770 24773268 FRAUNHOFER USA OPERATES NINE CENTERS THROUGHOUT THE USA. EACH CENTER IS DEVOTED TO A DIFFERENT TYPE OF TECHNOLOGICAL RESEARCH, SUCH AS SUSTAINABLE ENERGY SYSTEMS AND LASER TECHNOLOGY. THE FRAUNHOFER CENTERS UNDERTAKE ADVANCED RESEARCH PROJECTS TO DEVELOP KEY TECHNOLOGICAL INNOVATIONS IN MAJOR AREAS OF PUBLIC CONCERN AND EDUCATE PARTICIPANTS IN A VARIETY OF TECHNICAL DISCIPLINES. THE RESEARCH IS DONE TO BENEFIT THE U.S. INDUSTRY AS A WHOLE, AND IS OFTEN DONE IN COLLABORATION WITH EDUCATIONAL INSTITUTIONS IN FURTHERANCE OF ITS EXEMPT SCIENTIFIC AND EDUCATIONAL PURPOSES. 20567745 1 1 0 1 0 0 0 0 0 0 1 0 0 0 1 1 1 0 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 1 0 0 1 0 0 0 0 1 0 0 0 1 362 0 1 326 1 0 0 0 0 0 0 0 0 0 0 X 8 6 0 0 0 0 1 1 0 1 0 0 1 1 0 1 1 1 0 1 0 0 1 1 MI X ERIN SIMMONDS 7343544334 44792 HELM STREET PLYMOUTH MI 48170 PROF REIMUND NEUGEBAUER CHAIRMAN 2.00 40.00 X 0 0 0 DR GEORG ROSENFELD VICE-CHAIRMAN 1.00 40.00 X 0 0 0 J MICHAEL BOWMAN BOARD MEMBER 1.00 0.00 X 0 0 0 STEVE WILLIAMS BOARD MEMBER 1.00 0.00 X 0 0 0 DR ANNA-KATHARINA WITTENSTEIN BOARD MEMBER 1.00 0.00 X 0 0 0 DR BRIAN DARMODY BOARD MEMBER 1.00 0.00 X 0 0 0 DR JOHN F REID BOARD MEMBER 1.00 0.00 X 0 0 0 DR DENNIS A AUSIELLO BOARD MEMBER 1.00 0.00 X 0 0 0 FRANK TREPPE PRESIDENT 5.00 40.00 X 20000 0 0 DR PATRICK BRESSLER EXECUTIVE VICE PRESIDENT 45.60 0.00 X 292190 0 49407 MARK J EBY SECRETARY 1.00 0.00 X 0 0 0 ERIN SIMMONDS TREASURER 40.20 0.00 X 161566 0 35253 VIDADI YUSIBOV EXECUTIVE DIRECTOR 40.20 0.00 X 267516 0 51282 CHRISTIAN HOEPFNER CENTER DIRECTOR 47.90 0.00 X 195976 0 38692 FRANK HERMAN MANAGING DIRECTOR 46.40 0.00 X 271786 0 47643 ROBERT BLEIDT DIVISION GENERAL MANAGER 40.20 0.00 X 286154 0 36214 JAN NORDMANN SENIOR DIRECTOR BUSINESS DEVELOPMENT 40.20 0.00 X 185401 0 37458 CRAIG BRATT DIRECTOR OF LASER APPLICATIONS 40.20 0.00 X 247680 0 43747 WILLIAM MOSOLGO SALES 40.20 0.00 X 186803 0 29744 2115072 0 369440 50 0 1 0 MILLER CANFIELD PADDOCK & STONE 101 NORTH MAIN ST 7TH FLOOR ANN ARBOR MI 48104 LEGAL SERVICES 821898 MERILL WEISS CONSULTING 227 CENTRAL AVENUE METUCHEN NJ 088401242 CONSULTING 297184 RATNER PRESTIA 1235 WESTLAKES DRIVE SUITE 301 VALLEY FORGE PA 19482 LEGAL SERVICES 255563 LUMETA 2081 BUSINESS CENTER DRIVE IRVINE CA 92612 RESEARCH STUDIES 224517 TMS CONSULTING 16761 MARQUEX TERRACE PACIFIC PALISADES CA 90272 CONSULTING 185327 7 9199299 154000 154000 9353299 RESEARCH & DEVELOPMENT 541700 24773268 24773268 24773268 427791 427791 20631 15142 5489 5489 5489 253107 17500 253107 17804 0 -304 -304 -304 MISCELLANEOUS INCOME 900099 87851 87851 FOREIGN EXCHANGE GAIN/LOSS 900099 -3040 -3040 84811 34644354 24773268 0 517787 X 21770 21770 1111881 489228 622653 13775335 6061147 7714188 1581909 696040 885869 2054798 904111 1150687 1113302 489853 623449 263488 79046 184442 109979 109979 60000 60000 4813401 3080577 1732824 194622 33086 161536 186618 109185 77433 212936 149055 63881 3317079 2388297 928782 708603 141721 566882 592410 473928 118482 3020400 2567340 453060 164197 129716 34481 SUPPLIES 2619004 2435674 183330 EQUIPMENT RENTAL 1208803 84616 1124187 BAD DEBT EXPENSE 49713 49713 DUES & SUBSCRIPTIONS 10925 2185 8740 247402 181457 65945 37438575 20567745 16870830 0 92181 60860 2175905 1966378 7763371 8069011 470517 1064315 70814770 23760248 49446503 47054522 194342 191202 1352853 1716334 61495672 60122622 3853579 3188936 1234608 1729754 18638843 20212208 23727030 25130898 X 34006956 32349965 3761686 2641759 37768642 34991724 61495672 60122622 X -2794221 17303 X X 0 1 X 1 1 1 X 14778886 9634982 10066512 11361615 9353299 55195294 27730952 25803996 27646869 27192429 24773268 133147514 42509838 35438978 37713381 38554044 34126567 188342808 11982942 9860103 10414323 14771848 9682787 56712003 9311994 9092897 8537328 6628178 11176380 44746777 21294936 18953000 18951651 21400026 20859167 101458780 86884028 2011135 2153459 539250 437181 448422 5589447 2011135 2153459 539250 437181 448422 5589447 14375 18734 55366 63936 84811 237222 44535348 37611171 38307997 39055161 34659800 194169477 0.44750 0.44160 0.02880 0.03780 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 0 0 0 0 0 0 0 0 1 60000 60000 0 PART II-B, LINE 1: ONE OF THE ORGANIZATION'S CENTERS ENTERED INTO A CONTRACT WITH TRAVAGLINI EISENBERG KIELY LLC TO PROVIDE LOBBYING ACTIVITIES ON BEHALF OF THE CENTER. 34319747 3659115 30660632 16871842 3848771 13023071 18839542 15626333 3213209 783639 626029 157610 47054522 ADVANCES DUE TO FRAUNHOFER-GESELLSCHAFT 4325888 LONGTERM OBLIGATION UNDER CONSTRUCTION CONTRACT 15886320 20212208 X 41241182 3628671 2964812 6593483 34647699 -3344 -3344 34644355 44018100 3628672 2950853 6579525 37438575 0 37438575 PART X, LINE 2: THE COMPANY IS EXEMPT FROM INCOME TAX UNDER PROVISIONS OF INTERNAL REVENUE CODE SECTION 501(C)(3). ACCOUNTING PRINCIPLES GENERALLY ACCEPTED IN THE UNITED STATES OF AMERICA REQUIRE MANAGEMENT TO EVALUATE TAX POSITIONS TAKEN BY THE COMPANY AND RECOGNIZE A TAX LIABILITY IF THE COMPANY HAS TAKEN AN UNCERTAIN POSITION THAT MORE LIKELY THAN NOT WOULD NOT BE SUSTAINED UPON EXAMINATION BY THE IRS OR OTHER APPLICABLE TAXING AUTHORITIES. MANAGEMENT HAS ANALYZED THE TAX POSITIONS TAKEN BY THE AGENCY AND HAS CONCLUDED THAT AS OF DECEMBER 31, 2015 AND 2014, THERE ARE NO UNCERTAIN POSITIONS TAKEN OR EXPECTED TO BE TAKEN THAT WOULD REQUIRE RECOGNITION OF A LIABILITY OR DISCLOSURE IN THE FINANCIAL STATEMENTS. THE COMPANY IS SUBJECT TO ROUTINE AUDITS BY TAXING JURISDICTIONS; HOWEVER, THERE ARE CURRENTLY NO AUDITS FOR ANY TAX PERIODS IN PROGRESS. MANAGEMENT BELIEVES IT IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS FOR YEARS PRIOR TO 2012. PART XI, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES, INCLUDED IN EXPENSES ON FS 15,141. REIMBURSEMENT OF EXPENSES, NOT SHOWN ON 990 2,949,671. PART XI, LINE 4B - OTHER ADJUSTMENTS: FOREIGN EXCHANGE GAIN INCLUDED IN EXPENSES ON THE FS -3,040. GAIN ON FIXED ASSET DISPOSAL, INCLUDED IN EXPENSES ON FS -304. PART XII, LINE 2D - OTHER ADJUSTMENTS: RENTAL EXPENSES, INCLUDED IN EXPENSES ON FS 15,141. GAIN ON FIXED ASSET DISPOSAL, INCLUDED IN EXPENSES ON FS 304. FOREIGN EXCHANGE GAIN NETTED WITH EXPENSES ON THE FS 3,040. REIMBURSEMENT OF EXPENSES, NOT SHOWN ON 990 2,949,671. INVESTMENT WRITE DOWN, NOT SHOWN ON 990 -17,303. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES RESEARCH EAST ASIA AND THE PACIFIC - AUSTRALIA, BRUNEI, BURMA, CAMBODIA, 0 0 PROGRAM SERVICES RESEARCH 21684 EUROPE (INCLUDING ICELAND & GREENLAND) - ALBANIA, ANDORRA, AUSTRIA, BELGIUM 0 0 PROGRAM SERVICES RESEARCH 24700 NORTH AMERICA - CANADA AND MEXICO, BUT BUT NOT THE UNITED STATES 0 0 PROGRAM SERVICES RESEARCH 109574 SUB-SAHARAN AFRICA - ANGOLA, BENIN, BOTSWANA, BURKINA, FASO, 0 0 PROGRAM SERVICES RESEARCH SOUTH AMERICA - ARGENTINA, BOLIVIA, BRAZIL, CHILE, COLUMBIA, ECUADOR, 0 0 PROGRAM SERVICES RESEARCH 959497 SOUTH ASIA - AFGHANISTAN, BANGLADESH, BHUTAN, INDIA, MALDIVES, NEPAL, 0 0 PROGRAM SERVICES RESEARCH 0 0 0 0 0 0 1115455 0 1115455 0 0 0 0 0 0 0 DELAWARE COMMUNITY FOUNDATION PO BOX 25207 WILMINGTON DE 19899 222804785 501(C)(3) 10000 PROVIDE SCHOLARSHIPS TO ELIGIBLE STUDENTS AT THE UNIVERSTY OF DELAWARE, DELAWARE STATE UNIVERSITY, AND DELAWARE TECHNICAL AND COMMUNITY COLLEGE 1 0 PART I, LINE 2: FRAUNHOFER USA PARTICIPATES ON THE SCHOLARSHIP REVIEW COMMITTEE AND AS PART OF THE COMMITTEE MAKES DECISIONS ON WHICH STUDENTS SHOULD RECEIVE THE SCHOLARSHIPS, BASED ON THE CRITERIA. THE AWARD IS GIVEN TO THE SCHOOL, NOT THE STUDENT, TO GUARANTEE IT IS USED FOR TUITION. X X 1 1 X 0 0 0 0 0 0 0 1 0 DR PATRICK BRESSLER EXECUTIVE VICE PRESIDENT 250000 0 41674 0 516 0 31250 0 18157 0 341597 0 0 0 ERIN SIMMONDS TREASURER 136768 0 24618 0 180 0 17096 0 18157 0 196819 0 0 0 VIDADI YUSIBOV EXECUTIVE DIRECTOR 267000 0 0 0 516 0 33125 0 18157 0 318798 0 0 0 CHRISTIAN HOEPFNER CENTER DIRECTOR 195700 0 0 0 276 0 24463 0 14229 0 234668 0 0 0 FRANK HERMAN MANAGING DIRECTOR 239170 0 31092 0 1524 0 29896 0 17747 0 319429 0 0 0 ROBERT BLEIDT DIVISION GENERAL MANAGER 238032 0 47606 0 516 0 29754 0 6460 0 322368 0 0 0 JAN NORDMANN SENIOR DIRECTOR BUSINESS DEVELOPMENT 154411 0 30882 0 108 0 19301 0 18157 0 222859 0 0 0 CRAIG BRATT DIRECTOR OF LASER APPLICATIONS 198000 0 49500 0 180 0 24750 0 18997 0 291427 0 0 0 WILLIAM MOSOLGO SALES 93000 0 93527 0 276 0 11625 0 18119 0 216547 0 0 0 PART I, LINE 1A THERE IS NOT A WRITTEN POLICY SPECIFICALLY REGARDING FIRST CLASS TRAVEL. THE RULES AND PROCEDURES STATE THAT THE VP (FOR THE HEADQUARTERS) AND THE CENTER DIRECTOR (FOR THE CENTERS) HAVE THE AUTHORITY TO GRANT PERMISSION TO GO ON A BUSINESS TRIP AND AUTHORIZE REIMBURSEMENT FOR REASONABLE TRAVEL. FIRST CLASS TRAVEL IS NOT THE NORM FOR THE ORGANIZATION. DOMESTIC TRAVEL IS TYPICALLY UPGRADED AS A COURTESY OF THE AIRLINE DUE TO FREQUENT FLIER STATUS. INTERNATIONAL TRAVEL IS TYPICALLY UPGRADED USING MILES, HOWEVER, MAY OCCASIONALLY BE PURCHASED DUE TO THE NATURE OF THE FLIGHT AND OR BUSINESS MEETING NEEDS. THIS IS NOT INCLUDED IN TAXABLE INCOME. IF COMPANION TRAVEL WAS PAID, IT WAS RELATED TO AN IRS MOVING EXPENSE AND INCLUDED AS TAXABLE INCOME, IF APPLICABLE. PART I, LINE 7 THE PRESIDENT APPROVES THE BONUS POOL (AS A % OF TOTAL SALARIES, DESIGNATED AS "THE BONUS %") TO BE RECEIVED BY EACH CENTER (EXCLUDING CENTER DIRECTORS AND OFFICERS) UPON THE RECOMMENDATIONS OF THE EXECUTIVE VICE PRESIDENT AND INSTITUTE DIRECTORS. THIS RECOMMENDATION IS BASED ON: GROWTH IN THIRD PARTY REVENUE, FINANCIAL IMPROVEMENTS IN CONTROLLING COSTS RELATIVE TO REVENUE, FULFILLMENT OF THE NEEDS OF THE PARTNERING INSTITUTE(S), AND COMPLIANCE WITH FRAUNHOFER USA OPERATION PROCEDURES. THE GREATEST WEIGHT IS GIVEN TO GROWTH IN THIRD PARTY REVENUE AND FISCAL RESPONSIBILITY AND IMPROVEMENT. THE BONUSES PAID TO THE EMPLOYEES OUT OF THE BONUS POOL OF THE CENTER (EXCLUDING CENTER DIRECTORS) ARE AT THE DISCRETION OF THE CENTER DIRECTOR. THE CENTER DIRECTOR MAY ALLOCATE BONUSES TO THE EMPLOYEES WITHIN A RANGE OF 0% BONUS TO A MAXIMUM BONUS OF 30% OF THE EMPLOYEE'S ANNUAL SALARY. THE TOTAL OF THE BONUSES FOR EACH CENTER SHALL NOT EXCEED THE BONUS POOL. THE CENTER DIRECTOR WILL BASE THEIR DECISIONS ON THE ANNUAL APPRAISAL GIVEN TO EACH EMPLOYEE. THE BONUSES OF OFFICERS OF THE CORPORATION AND CENTER DIRECTORS WILL BE APPROVED BY THE BOARD OF DIRECTORS UPON THE RECOMMENDATION OF THE PRESIDENT. WITTENSTEIN HOLDING CORPORATION DR ANNA-KATHARINA WITTENSTEIN DR. WITTENSTEIN, FHUSA BOARD MEMBER, IS THE DAUGHTER OF THE OWNER OF WHC 19253 PROJECT WORK 0 X MOCVD SYSTEM 1 154000 FAIR MARKET VALUE 1 0 0 0 PART I, COLUMN (B): THE ORGANIZATION IS REPORTING THE NUMBER OF CONTRIBUTIONS FORM 990, PART VI, SECTION A, LINE 6 FRAUNHOFER-GESELLSCHAFT, A GERMAN NOT-FOR-PROFIT ORGANIZATION, IS THE SOLE MEMBER OF THE ORGANIZATION. FORM 990, PART VI, SECTION A, LINE 7A FOUR INDIVIDUALS AT FRAUNHOFER USA'S PARENT COMPANY, FRAUNHOFER-GESELLSCHAFT, ELECT THE BOARD MEMBERS OF FRAUNHOFER USA. PROF. REIMUND NEUGEBAUER IS ONE OF THE INDIVIDUALS AT FRAUNHOFER-GESELLSCHAFT WHO ELECTS THE BOARD OF FRAUNHOFER USA. PROF. REIMUND NEUGEBAUER IS THE CHAIRMAN OF FRAUNHOFER USA. FORM 990, PART VI, SECTION A, LINE 8B THE ORGANIZATION DOES NOT HAVE COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. FORM 990, PART VI, SECTION B, LINE 11 THE TREASURER, OR OTHER OFFICER SIGNING THE RETURN, REVIEWS THE RETURN BEFORE IT IS FILED. FORM 990, PART VI, SECTION B, LINE 12C EMPLOYEES ARE REQUIRED TO DISCLOSE IF THEY DO OR DO NOT HAVE A CONFLICT OF INTEREST TO REPORT AS A PART OF THEIR PERFORMANCE APPRAISAL. BOARD OF DIRECTOR MEMBERS ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS TO THE VICE PRESIDENT. CENTER DIRECTORS ARE REQUIRED TO DISCLOSE POTENTIAL CONFLICTS TO THE HUMAN RESOURCES DIRECTOR. EACH OF THESE DISCLOSURES ARE PERFORMED ANNUALLY. IF A CONFLICT OF INTEREST EXISTS, THE INDIVIDUAL MAY HAVE TO DISASSOCIATE THEMSELVES FROM THE TRANSACTION OR THE COMPANY IN QUESTION. IN REGARDS TO THE CENTER DIRECTORS, THEY ARE REQUIRED TO DISCLOSE IF THEY HAVE A CONFLICT OF INTEREST DURING THE PERFORMANCE APPRAISAL TIME PERIOD ON AN ANNUAL BASIS. FORM 990, PART VI, SECTION B, LINE 15 THE BOARD OF DIRECTORS HAS THE AUTHORITY TO DECIDE ON THE SALARY FOR THE PRESIDENT. THE PRESIDENT HAS THE AUTHORITY TO DECIDE ON THE SALARY FOR THE EXECUTIVE VICE-PRESIDENT AND CENTER DIRECTORS. SUBJECT TO THE APPROVAL OF THE PRESIDENT, THE AUTHORITY TO DECIDE ON SALARIES AND SALARY RAISES FOR ALL OTHER EMPLOYEES IS WITH: 1) EXECUTIVE VICE-PRESIDENT FOR EMPLOYEES AT THE HEADQUARTERS AND 2) CENTER DIRECTOR FOR EMPLOYEES AT THE RESPECTIVE FRAUNHOFER CENTER. THE SALARY OF THE TREASURER IS APPROVED BY THE PRESIDENT AND EXECUTIVE VICE-PRESIDENT. FORM 990, PART VI, SECTION C, LINE 19 THE DOCUMENTS ARE MAINTAINED ON FILE AT THE ORGANIZATION'S HEADQUARTERS AND ARE AVAILABLE UPON REQUEST. FORM 990, PART IX, LINE 11G CONTRACTED SERVICES: PROGRAM SERVICE EXPENSES 3,080,577. MANAGEMENT AND GENERAL EXPENSES 1,732,824. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 4,813,401. FORM 990, PART XI, LINE 9: INVESTMENT WRITEDOWN 17,303. FORM 990, PART XII, LINE 2C: THE WHOLE BOARD OVERSEES THE AUDIT. THIS PROCESS HAS NOT CHANGED FROM PRIOR YEAR. FORM 990, PART VII, SECTION A, COLUMN E AND F: REIMUND NEUGEBAUER, GEORG ROSENFELD, AND FRANK TREPPE RECEIVE COMPENSATION FROM THE PARENT ORGANIZATION OF FRAUNHOFER USA, FRAUNHOFER-GESELLSCHAFT. FRAUNHOFER USA DOES NOT HAVE ACCESS TO COMPENSATION INFORMATION OF FRAUNHOFER-GESELLSCHAFT. THE TREASURER OF FRAUNHOFER USA REQUESTED THE COMPENSATION INFORMATION FROM FRAUNHOFER-GESELLSCHAFT IN 2008 AND WAS INFORMED THAT THE SALARY INFORMATION WOULD NOT BE AVAILABLE. THE PARENT ORGANIZATION IS LOCATED IN GERMANY AND HAS A VASTLY DIFFERENT SALARY STRUCTURE AND AMOUNTS WOULD NOT BE APPROPRIATELY COMPARABLE TO THE SALARIES FROM FRAUNHOFER USA. FRAUNHOFER GESELLSCHAFT HANASTRASSE 27C MUNCHEN GERMANY GM 80686 PARENT COMPANY - PROVIDE FUNDING GM N/A 0 0 0 1 0 1 0 0 0 0 0 0 1 1 0 1 0 1 0 0