2016-06-30T14:06:35-05:00 2015-08-31 420714325 RSM US LLP 221 THIRD AVENUE SE STE 300 CEDAR RAPIDS IA 524011512 990 2014-09-01 420841485 ACT INC ACTI 3193371000 PO BOX 168 IOWA CITY IA 522430168 THOMAS J GOEDKEN CFO/TREASURER 3193371000 2016-06-30 1 CARLEY UMSTEAD P00982177 3192985333 2014 2016-09-27 15:27:22Z DR JON WHITMORE PO BOX 168 IOWA CITY IA 522430168 721287943 0 X WWW.ACT.ORG X 1960 IA HELPING PEOPLE ACHIEVE EDUCATION AND WORKPLACE SUCCESS 17 13 1743 636 0 -15673 0 0 309969396 334242998 18802751 14996477 0 0 328772147 349239475 3892656 3764644 0 0 128187203 136943269 0 0 0 186771154 198810913 318851013 339518826 9921134 9720649 530638419 527915702 92138181 102516928 438500238 425398774 X ACT, INC. (ACT) WAS ESTABLISHED AS A CORPORATION NOT FOR PECUNIARY PROFIT UNDER THE LAWS OF THE STATE OF IOWA ON AUGUST 23, 1960. THE PURPOSE AND MISSION OF ACT IS TO ADVANCE EDUCATION BY PROVIDING PROGRAMS, SERVICES, AND CONDUCTING RESEARCH THAT ASSISTS: A) INDIVIDUALS PLANNING AND PURSUING EDUCATION AND TRAINING, B) EDUCATORS DELIVERING INSTRUCTION AND TRAINING, AND C) POLICY MAKERS CONCERNED WITH ENSURING THAT INDIVIDUALS ARE READY FOR EDUCATION AND WORKPLACE SUCCESS. 0 0 275080293 2004659 310718888 EDUCATION ASSESSMENT PROGRAM - ACT'S EDUCATION ASSESSMENT PROGRAM IS DESIGNED AND DEVELOPED TO INFORM INDIVIDUALS (AND THOSE HELPING THEM) ABOUT THE KNOWLEDGE AND SKILLS NEEDED FOR SUCCESS IN EDUCATION AND EVENTUALLY CAREER. INFORMATION RESULTING FROM THE ADMINISTRATION OF THE ASSESSMENTS ENABLE INDIVIDUALS TO PREPARE THEMSELVES FOR A NEXT LEVEL OF EDUCATION AND/OR TRAINING. THE ASSESSMENTS PROVIDE EDUCATORS AND TRAINERS WITH INFORMATION USEFUL IN GUIDING THEIR TEACHING AND INSTRUCTION. COLLECTIVELY, DATA RESULTING FROM THE ADMINISTRATION OF THE ASSESSMENTS FACILITATES RESEARCH ON EFFECTIVE EDUCATIONAL PRACTICES OF VALUE TO NATIONAL, STATE AND LOCAL EDUCATORS AND POLICY MAKERS. 37510949 1759985 23524110 WORKFORCE DEVELOPMENT ASSESSMENT PROGRAM - ACT'S WORKFORCE DEVELOPMENT ASSESSMENT PROGRAM IS COMPLEMENTARY OF ITS EDUCATION ASSESSMENT PROGRAM IN THAT IT FOCUSES ON HELPING INDIVIDUALS TO ACQUIRE THE SKILLS THAT THEY NEED FOR SUCCESS IN THE WORKPLACE. THE PROGRAM IS A COMPONENT PART OF THE OVERALL EDUCATION PROCESS AND HELPS INDIVIDUALS TO UNDERSTAND THE SKILLS THEY WILL NEED TO BE READY FOR WORKPLACE RELATED EDUCATION AND TRAINING PROGRAMS. THE ASSESSMENTS ARE USED WIDELY BY EDUCATORS AND TRAINERS TO PRESCRIBE AND PROVIDE INSTRUCTIONAL INTERVENTIONS FOR THOSE INDIVIDUALS. COLLECTIVELY, DATA RESULTING FROM THE ADMINISTRATION OF THE ASSESSMENTS ENABLES RESEARCH ON NATIONAL, STATE, AND REGIONAL SKILL GAPS IN THE LABOR POOL AND FACILITATES DECISIONS AND STRATEGIES FOR ADDRESSING THEM. 312591242 1 0 0 1 0 0 0 0 0 0 1 0 1 0 1 1 0 1 0 0 1 0 0 0 0 0 0 1 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 1 X 14470 0 1 1743 1 0 1 AS CH KS ID NL HK 0 0 0 0 0 0 0 0 X 17 13 1 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 0 1 1 CA IL IN MA MN NH NY OH X THOMAS J GOEDKEN 3193371000 500 ACT DRIVE IOWA CITY IA 522430168 X JON S WHITMORE CEO/DIRECTOR 41.00 X X 845333 0 59438 CARL A COHN CHAIRMAN OF THE BOARD 3.00 X X 65000 0 0 ROBERT M BERDAHL VICE CHAIR 2.00 X X 39375 0 0 VIVIEN STEWART TEITELBAUM SECRETARY 3.00 X X 50000 0 0 JOSEPH A AGUERREBERE JR DIRECTOR 3.00 X 50000 0 0 DIXIE L AXLEY DIRECTOR 3.00 X 52125 0 0 JAMES E BOSTIC JR DIRECTOR 3.00 X 46000 0 0 SARITA E BROWN DIRECTOR 3.00 X 47000 0 0 WALTER C BUMPHUS DIRECTOR 3.00 X 51500 0 0 DANIEL A DOMENECH DIRECTOR 2.00 X 10500 0 0 D ROBERT GRAHAM DIRECTOR 2.00 X 35500 0 0 MARK D MUSICK DIRECTOR 3.00 X 39000 0 17500 DIANA NATALICIO DIRECTOR 2.00 X 11500 0 0 RICHARD W RILEY DIRECTOR 3.00 X 28500 0 17500 THOMAS G ROTHERHAM DIRECTOR 3.00 X 53500 0 0 BELLE S WHEELAN DIRECTOR 3.00 X 49000 0 0 CHAD P WICK DIRECTOR 2.00 X 57000 0 0 THOMAS J GOEDKEN CFO & TREASURER 52.00 X 498949 0 48854 JON L ERICKSON PRESIDENT & COO EDUCATION 40.00 X 514344 0 70353 JANET E GODWIN CHIEF OPERATING OFFICER 40.00 X 314355 0 53195 RICHARD PATZ CHIEF MEASUREMENT OFFICER 40.00 X 671951 0 26027 PATRICIA COX STEINBRECH SR. VP CORPORATE SYSTEMS 40.00 X 411331 0 43872 LAMAR C BUNTS SR. VICE PRESIDENT 40.00 X 305503 0 32727 WAYNE CAMARA SR. VICE PRESIDENT 40.00 X 411649 0 27176 DAVID I CUMBERBATCH SR. VICE PRESIDENT 49.00 X 344364 0 38856 L MIGUEL ENCARNACAO SR. VICE PRESIDENT 40.00 X 297892 0 39768 JENNIFER M YI BOYER SR. VICE PRESIDENT 40.00 X 315874 0 43053 KAREN A HOLBROOK FORMER DIRECTOR 3.00 X 37500 0 0 CHARLES B REED FORMER DIRECTOR 4.00 X 53000 0 0 5707545 0 518319 189 1 1 1 NCS PEARSON INC 2510 N DODGE ST IOWA CITY IA 52245 COMPUTER PROCESSING 31882823 ATOS IT SOLUTIONS AND SERVICES INC 2500 WESTCHESTER AVE 300 PURCHASE NY 10577 IT SUPPORT 16301261 AGILIX LABS INC 733 EAST TECHNOLOGY AVE OREM UT 84097 IT CONSULTING 4200383 ORACLE AMERICA INC 500 ORACLE PARKWAY REDWOOD SHORES CA 94065 SOFTWARE DEV CONSULTING 2725342 RR DONNELLEY 111 S WACKER DR CHICAGO IL 60606 PUBLISHING 2697788 80 EDUCATIONAL ASSESSMENT 611710 310718888 310718888 WORKFORCE DEVELOPMENT 541900 23524110 23524110 334242998 6648528 6648528 380396417 371522279 526189 8874138 -526189 8347949 8347949 349239475 334242998 0 14996477 X 3764644 3764644 4454424 2270911 2183513 101569696 92253292 9316404 9629135 8536534 1092601 13839386 10585470 3253916 7450628 6605218 845410 1706229 568 1705661 244310 30752 213558 611611 611611 1046681 1046681 87660413 85607035 2053378 801907 664209 137698 27600674 25812759 1787915 13629521 13481396 148125 282722 282722 5743760 5351124 392636 6335741 5584480 751261 3148166 2536194 611972 304478 304478 10219074 9497824 721250 714802 714802 STATE TAXES (UBIT) 1077 1077 FEDERAL TAXES (UBIT) 180 180 TEST ADMINISTRATION 37739166 37739166 MEMBERSHIP FEES 940848 792240 148608 79553 277358 -197805 339518826 312591242 26927584 0 52222757 43277403 18882751 30041815 2495988 848572 2461706 2083854 9085781 10957709 125704480 62793573 64207426 62910907 315646913 299424468 12914660 9785724 37954267 55819157 7758279 7401843 7007891 5364250 530638419 527915702 34110573 43665013 23458481 26030223 29595000 28420000 4974127 4401692 92138181 102516928 X 438366037 421996665 134201 3402109 438500238 425398774 530638419 527915702 X 9720649 -16393524 -6428589 X X 0 1 X 1 0 X 1933784 749195 2682979 263697801 271933101 287574210 309094886 334242998 1466542996 265631585 272682296 287574210 309094886 334242998 1469225975 1961524 873375 224851 849640 24833637 28743027 33418101 28298434 27380397 36623158 40913316 166633406 35379625 29171809 27605248 37472798 65746953 195376433 1273849542 6888811 11520866 7454107 6645727 6648528 39158039 6888811 11520866 7454107 6645727 6648528 39158039 424173 1069356 55486 1549015 272944569 285272518 295028317 315796099 340891526 1509933029 0.84360 0.85880 0.02590 0.02710 X 0 1 0 0 0 0 1 752990 0 0 752990 0 PART II-B, LINE 1: ACT HAS CERTAIN EMPLOYEES LOCATED IN WASHINGTON, D.C. THAT ARE REGISTERED LOBBYISTS. IN ADDITION, ACT CONTRACTED WITH LOBBYING FIRMS DURING THE YEAR TO ASSIST IN MONITORING FEDERAL AND STATE LEGISLATIVE ACTIVITY AND HELPING TO STRENGTHEN ACT'S RELATIONSHIPS WITHIN EACH STATE CONCERNING ACT INITIATIVES AND PROGRAMS. OF THE AMOUNT REPORTED, $611,611 REPRESENTS DIRECT EXPENDITURES BY THE FILING ORGANIZATION AND $141,379 REPRESENTS THE FILING ORGANIZATION'S SHARE OF LOBBYING ACTIVITIES CONDUCTED BY A JOINT VENTURE, ACT ASPIRE, LLC. 4755955 4755955 55441221 19010220 36431001 18933513 6348905 12584608 46274128 37434448 8839680 299663 299663 62910907 PRIVATE EQUITY INVESTMENTS 6994804 C INVESTMENTS IN JOINT VENTURE 11798721 C INVESTMENT IN FOREIGN SUBSIDIARIES 4682626 C INVESTMENT IN ACT FOUNDATION 32343006 C 55819157 INTEREST RATE SWAP 1192409 POST RETIREMENT BENEFIT PLAN OBLIGATIONS 3209283 4401692 X 343813839 -16393524 10441699 -5951825 349765664 -526189 -526189 349239475 360183211 526189 20138196 20664385 339518826 0 339518826 PART X, LINE 2: FIN 48 FOOTNOTE FROM AUDITED FINANCIAL REPORT: ACT AND ACT FOUNDATION ARE RECOGNIZED AS EXEMPT FROM FEDERAL INCOME TAXES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. THESE ORGANIZATIONS MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAXES ON ANY NET INCOME FROM UNRELATED BUSINESS ACTIVITIES. THESE ORGANIZATIONS FILE FORMS 990 (RETURN OF ORGANIZATION EXEMPT FROM INCOME TAX) ANNUALLY AND UNRELATED BUSINESS INCOME (UBI) IS REPORTED ON FORM 990-T, AS APPROPRIATE. ACT BRIDGE, INC. AND PACIFIC METRICS ARE TAXABLE CORPORATIONS UNDER THE INTERNAL REVENUE CODE REGULATIONS. THE ENTITIES CONSOLIDATED INTO ACT INTERNATIONAL B.V. ARE NOT DIRECTLY SUBJECT TO U.S. INCOME TAX. FURTHERMORE, SUCH INCOME AND LOSS OF SUCH FOREIGN ENTITIES ARE NOT INCLUDED IN THE U.S. TAXABLE INCOME OF ACT. ACT HAS CERTAIN REVENUE FROM PROGRAMS AND SERVICES THAT, BY VIRTUE OF A 1980 AGREEMENT WITH THE INTERNAL REVENUE SERVICE (IRS), IS DEEMED TO BE UNRELATED TO ITS TAX-EXEMPT PURPOSE AND, THEREFORE, MAY BE SUBJECT TO FEDERAL AND STATE INCOME TAX. MANAGEMENT HAS EVALUATED THEIR MATERIAL TAX POSITIONS, WHICH INCLUDE SUCH MATTERS AS THE TAX EXEMPT STATUS AND VARIOUS POSITIONS RELATIVE TO POTENTIAL SOURCES OF UBI. AS OF AUGUST 31, 2015 AND 2014, THERE WERE NO UNCERTAIN TAX BENEFITS IDENTIFIED AND RECORDED AS A LIABILITY AND ANY AMOUNTS OWED RELATED TO UBI ARE IMMATERIAL TO THE FINANCIAL STATEMENTS AS A WHOLE. FORMS 990 AND 990-T FILED BY ACT ARE SUBJECT TO EXAMINATION BY THE IRS UP TO THREE YEARS FROM THE EXTENDED DUE DATE OF EACH RETURN. FORMS 990 AND 990-T FILED BY ACT ARE NO LONGER SUBJECT TO EXAMINATION FOR THE FISCAL YEARS ENDED AUGUST 31, 2011 AND PRIOR. PART XI, LINE 2D - OTHER ADJUSTMENTS: NET APPRECIATION IN FAIR VALUE OF INTEREST RATE SWAPS 81,718. INTERCOMPANY REVENUE - ACT INTERNATIONAL CONSOLIDATED -92,306. INTERCOMPANY REVENUE - ACT BRIDGE CONSOLIDATED -7,038,408. INTERCOMPANY REVENUE - ACT FOUNDATION -3,237,069. ACT INTERNATIONAL CONSOLIDATED REVENUE - SEPARATE ENTITIES 3,748,108. ACT BRIDGE CONSOLIDATED REVENUE - SEPARATE ENTITIES 17,529,488. ACT FOUNDATION REVENUE - SEPARATE ENTITY 3,179,045. EQUITY IN NET LOSS OF NONMARKETABLE EQUITY SECURITIES -3,728,877. PART XI, LINE 4B - OTHER ADJUSTMENTS: LOSS ON SALE OF EQUIPMENT -526,189. PART XII, LINE 2D - OTHER ADJUSTMENTS: INTERCOMPANY EXPENSE - ACT INTERNATIONAL CONSOLIDATED -92,306. INTERCOMPANY EXPENSE - ACT BRIDGE CONSOLIDATED -7,038,408. INTERCOMPANY EXPENSE - ACT FOUNDATION -3,237,069. ACT INTERNATIONAL CONSOLIDATED EXPENSES - SEPARATE ENTITIES 3,021,454. ACT BRIDGE CONSOLIDATED EXPENSES - SEPARATE ENTITIES 23,263,294. ACT FOUNDATION EXPENSE - SEPARATE ENTITY 4,221,231. CENTRAL AMERICA AND THE CARIBBEAN 0 0 PROGRAM SERVICES TESTING SERVICES 115242 EAST ASIA AND THE PACIFIC 0 0 PROGRAM SERVICES TESTING SERVICES 891066 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM SERVICES TESTING SERVICES 320002 MIDDLE EAST AND NORTH AFRICA 0 0 PROGRAM SERVICES TESTING SERVICES 34984 NORTH AMERICA 0 0 PROGRAM SERVICES TESTING SERVICES 3972756 RUSSIA AND NEIGHBORING STATES 0 0 PROGRAM SERVICES TESTING SERVICES 164631 SOUTH AMERICA 0 0 PROGRAM SERVICES TESTING SERVICES 97750 SOUTH ASIA 0 0 PROGRAM SERVICES TESTING SERVICES 46303 SUB-SAHARAN AFRICA 0 0 PROGRAM SERVICES TESTING SERVICES 36013 EUROPE (INCLUDING ICELAND & GREENLAND) 0 0 PROGRAM-RELATED INVESTMENTS 4682626 0 0 0 0 0 0 5642734 4718639 10361373 0 0 1 0 0 1 PART I, LINE 3: THE FOREIGN EXPENDITURES FOR PROGRAM SERVICES REPORTED IN COLUMN (F) RELATE TO THE ADMINISTRATION OF ACT ASSESSMENTS INTERNATIONALLY. ACT MAY HAVE OTHER FOREIGN EXPENDITURES IN THE REGIONS LISTED THAT SUPPORT THE PROGRAMS OF ACT'S FOREIGN SUBSIDIARIES. THESE AMOUNTS ARE NOT SEPARATELY TRACKED AND ARE NOT REFLECTED IN THE AMOUNTS REPORTED. 1 ACT FOUNDATION 500 ACT DRIVE IOWA CITY IA 52243 272574917 501(C)(3) 3237069 N/A N/A GENERAL SUPPORT AMERICAN COUNCIL ON EDUCATION 1 DUPONT CIR NW WASHINGTON DC 20036 530196573 501(C)(3) 5000 N/A N/A DGR STUDENT AID ALLIANCE CONTRIBUTION AMERICAN HEART ASSOCIATION INC 1035 NORTH CENTER POINT ROAD STE B HIAWATHA IA 52233 135613797 501(C)(3) 11000 N/A N/A AMERICAN HEART ASSOCIATION PARTNERSHIP PROJECT DIVERSITY FOCUS 222 2ND ST SE CEDAR RAPIDS IA 524011407 203420207 501(C)(3) 51500 N/A N/A 2015 INVESTOR CONTRIBUTION GEORGIA TECH FOUNDATION INC 760 SPRING ST NW STE 400 ATLANTA GA 30308 586043294 501(C)(3) 15000 N/A N/A 2015 INVESTOR CONTRIBUTION IOWA CITY AREA DEVELOPMENT GROUP INC 316 E COURT ST IOWA CITY IA 52240 421234837 501(C)(6) 35000 N/A N/A FY2015 INVESTMENT CONTRIBUTION IOWA CITY COMMUNITY SCHOOL DISTRICT FOUNDATION 1725 N DODGE ST IOWA CITY IA 52245 421177023 501(C)(3) 64500 N/A N/A SUPPORT OF ICCSD COMPLEMENTARY LEARNING PROGRAM IOWA CITY PUBLIC LIBRARY FRIENDS FOUNDATION 123 S LINN ST IOWA CITY IA 52240 421181774 501(C)(3) 20000 N/A N/A BETTER BUILDING BETTER SERVICE CAMPAIGN IOWA JOBS FOR AMERICAS GRADUATES 400 E 14TH ST DES MOINES IA 50319 421492988 501(C)(3) 5000 N/A N/A CAREER AND POST-SECONDARY PREPARATION PROGRAM LIVING LANDS & WATERS 17624 ROUTE 84 N EAST MOLINE IL 61244 364244353 501(C)(3) 5000 N/A N/A GENERAL SUPPORT ST LUKES HEALTH CARE FOUNDATION 855 A AVENUE NE CEDAR RAPIDS IA 52402 421106819 501(C)(3) 5000 N/A N/A RONALD MCDONALD FAMILY ROOM AT ST LUKES TABLE TO TABLE FOOD DISTRIBUTION NETWORK 20 E MARKET ST IOWA CITY IA 52245 421457219 501(C)(3) 5000 N/A N/A REFRIGERATION INSTALLATION ON NEW FOOD RESCUE VAN THE CONFERENCE BOARD INC 2000 L ST NW STE 700 WASHINGTON DC 20036 131624108 501(C)(3) 25000 N/A N/A 2015 MEMBER SUPPORT FOR INDEPENDENT POLICY STUDIES/OUTREACH PROG THE EDUCATION TRUST INCORPORATED 1250 H ST NW STE 700 WASHINGTON DC 20005 521982223 501(C)(3) 15000 N/A N/A 2014 CONFERENCE CONTRIBUTION, BALTIMORE, MD UNITED WAY OF JOHNSON COUNTY 1150 5TH ST CORALVILLE CORALVILLE IA 522412933 426062055 501(C)(3) 75745 38830 FMV COMPUTER EQUIPMENT MATCHING CONTRIBUTION FOR UNITED WAY CAMPAIGN WESTERN INTERSTATE COMMISSION FOR HIGHER EDUCATION 3035 CENTER GREEN DR BOULDER CO 80301 846008945 501(C)(3) 50000 N/A N/A KNOCKING AT THE COLLEGE DOOR CONTRIBUTION WORKPLACE LEARNING CONNECTION 1770 BOYSON RD HIAWATHA IA 52233 237076632 501(C)(3) 15000 N/A N/A GENERAL SUPPORT 16 1 PART I, LINE 2: ACT REVIEWS THE QUALIFICATIONS OF THOSE REQUESTING CONTRIBUTIONS TO ENSURE THAT THEY ARE NONPROFIT ORGANIZATIONS. ACT HAS CREATED AN EMPLOYEE COMMITTEE TO REVIEW ALL SUCH REQUESTS. ALL GRANTS AND CONTRIBUTIONS ARE REVIEWED AND APPROVED BY THE CEO PRIOR TO COMMITMENT. X X 1 1 X X X X X 0 1 0 0 0 0 0 1 0 JON S WHITMORE CEO/DIRECTOR 608506 0 150000 0 86827 0 40996 0 18442 0 904771 0 71654 0 CARL A COHN CHAIRMAN OF THE BOARD 65000 0 0 0 0 0 0 0 0 0 65000 0 0 0 THOMAS J GOEDKEN CFO & TREASURER 347081 0 60764 0 91104 0 33806 0 15048 0 547803 0 48910 0 JON L ERICKSON PRESIDENT & COO EDUCATION 384171 0 67500 0 62673 0 56395 0 13958 0 584697 0 18594 0 JANET E GODWIN CHIEF OPERATING OFFICER 269130 0 44549 0 676 0 31695 0 21500 0 367550 0 0 0 RICHARD PATZ CHIEF MEASUREMENT OFFICER 385491 0 267500 0 18960 0 23472 0 2555 0 697978 0 0 0 PATRICIA COX STEINBRECH SR. VP CORPORATE SYSTEMS 324577 0 58898 0 27856 0 23185 0 20687 0 455203 0 0 0 LAMAR C BUNTS SR. VICE PRESIDENT 240887 0 44980 0 19636 0 23454 0 9273 0 338230 0 0 0 WAYNE CAMARA SR. VICE PRESIDENT 332290 0 59063 0 20296 0 23433 0 3743 0 438825 0 0 0 DAVID I CUMBERBATCH SR. VICE PRESIDENT 249772 0 52250 0 42342 0 20760 0 18096 0 383220 0 0 0 L MIGUEL ENCARNACAO SR. VICE PRESIDENT 252962 0 43841 0 1089 0 21806 0 17962 0 337660 0 0 0 JENNIFER M YI BOYER SR. VICE PRESIDENT 269195 0 45238 0 1441 0 23485 0 19568 0 358927 0 0 0 KAREN A HOLBROOK FORMER DIRECTOR 37500 0 0 0 0 0 0 0 0 0 37500 0 0 0 CHARLES B REED FORMER DIRECTOR 53000 0 0 0 0 0 0 0 0 0 53000 0 0 0 PART I, LINE 1A ACT'S TRAVEL POLICY PROHIBITS FIRST CLASS TRAVEL AT ACT'S EXPENSE. TEAM MEMBERS ARE ELIGIBLE TO FLY IN BUSINESS/FIRST CLASS IF THERE IS NO ADDITIONAL EXPENSE TO ACT. ONE OFFICER, ONE KEY EMPLOYEE, AND THREE HIGHEST COMPENSATED EMPLOYEES WERE PROVIDED WITH FIRST CLASS TRAVEL AT NO ADDITIONAL EXPENSE. NO AMOUNT WAS TREATED AS TAXABLE COMPENSATION TO THE LISTED PERSONS. ONE OFFICER WAS PROVIDED WITH TRAVEL FOR A COMPANION. THIS AMOUNT WAS TREATED AS TAXABLE COMPENSATION TO THE LISTED PERSON. PART I, LINE 3 THE EXECUTIVE COMMITTEE SERVES AS THE COMPENSATION COMMITTEE IN REGARDS TO ESTABLISHING THE COMPENSATION OF THE ORGANIZATION'S CEO. PART I, LINE 4B ACT MAINTAINS A NON-QUALIFIED DEFERRED COMPENSATION PLAN UNDER SECTION 457(F) OF THE INTERNAL REVENUE CODE FOR CERTAIN LISTED PERSONS. THE PLAN DOES NOT ALLOW ELIGIBLE EMPLOYEES TO MAKE ELECTIVE CONTRIBUTIONS BUT DOES PROVIDE FOR ACT TO MAKE DISCRETIONARY CONTRIBUTIONS TO ELIGIBLE EMPLOYEES. THE PLAN HAD NO PARTICIPANTS DURING THE FISCAL YEAR AUGUST 31, 2015, HOWEVER, THREE LISTED PERSONS PARTICIPATED IN THIS PLAN IN PREVIOUS YEARS AND RECEIVED DISTRIBUTIONS FROM THIS PLAN DURING CALENDAR YEAR 2014. ACT MAINTAINS A LEGACY EARLY RETIREMENT PLAN THAT HAS BEEN CLOSED TO NEW ENTRANTS. TO BE ELIGIBLE, THE EMPLOYEE MUST HAVE COMPLETED 20 YEARS OF CONTINUOUS SERVICE AND RETIRE BETWEEN THE AGES OF 60 AND 65. THE PLAN PROVIDES FOR THE PAYMENT OF CERTAIN RETIREMENT BENEFITS BASED ON SALARY OF THE EMPLOYEE AT DATE OF RETIREMENT. PART II, COLUMN (C), DEFERRED COMPENSATION INCLUDES THE INCREASE OR DECREASE IN ACTUARIAL VALUE THAT HAS OCCURRED TO AN INDIVIDUAL'S VESTED BALANCE DURING THE YEAR. ONE LISTED PERSON PARTICIPATES IN BUT DID NOT RECEIVE A DISTRIBUTION FROM THIS PLAN DURING THE YEAR. PART I, LINE 7 ACT HAS IMPLEMENTED A BONUS PLAN FOR CERTAIN LEADERSHIP EMPLOYEES THAT ENABLES THEM TO EARN ADDITIONAL COMPENSATION BASED ON THE ACHIEVEMENT OF CERTAIN GOALS. SUCH BONUSES HAVE A MAXIMUM AMOUNT THAT IS A PERCENTAGE OF THE INDIVIDUAL'S BASE COMPENSATION. THESE PAYMENTS ARE CONSIDERED NON-FIXED AS THEY ARE DISCRETIONARY IN NATURE AND ARE BASED PRIMARILY ON PERFORMANCE, WHICH DOES NOT INCLUDE PERFORMANCE BASED UPON NET INCOME OR REVENUE. THIS BONUS PLAN IS REVIEWED AND APPROVED BY THE BOARD OF DIRECTORS. FORM 990, PART VII, SECTION A, LINE 5 AND SCH J, PART II: CARL COHN'S BASE COMPENSATION OF $65,000 WAS PAID BY URBAN SCHOOL IMAGINEERS, AN UNRELATED ORGANIZATION OF WHICH COHN IS A PRINCIPAL. THIS AMOUNT REPRESENTS COMPENSATION FOR SERVICES PROVIDED TO ACT. COMPENSATION REPORTED FOR FORMER DIRECTORS KAREN A. HOLBROOK AND CHARLES B. REED REPRESENTS CALENDAR YEAR 2014 COMPENSATION FOR DIRECTOR SERVICES PROVIDED THROUGH AUGUST 31, 2014. FORM 990, PART I, LINE 6, NUMBER OF VOLUNTEERS: ACT HAS STATE ORGANIZATIONS THAT SERVE AS ADVISORY AND ADVOCACY GROUPS TO FACILITATE COMMUNICATIONS BETWEEN ACT AND THE EDUCATIONAL INSTITUTIONS AND AGENCIES THAT PARTICIPATE IN ACT PROGRAMS. THESE ORGANIZATIONS ARE NOT SEPARATE LEGAL ENTITIES, BUT DO HAVE ORGANIZING BYLAWS. THE STATE ORGANIZATIONS PROVIDE FEEDBACK TO ACT ON ITS PROGRAMS AS THEY RELATE TO THE INFORMATION NEEDS OF INDIVIDUALS, SCHOOLS, AND AGENCIES IN THE STATE. THERE ARE 636 REPRESENTATIVES INCLUDING EDUCATORS, AGENCY PERSONNEL, LEADERS OF STATE ASSOCIATIONS, AND WORKFORCE PROFESSIONALS WHO ACTIVELY VOLUNTEER THEIR TIME TO SERVE IN AN ADVISORY CAPACITY BY ATTENDING MEETINGS WITH ACT REGIONAL AND NATIONAL OFFICE STAFF TO PROVIDE INPUT. FORM 990, PART VI, SECTION A, LINE 2 JOSEPH A. AGUERREBERE, JR. AND BELLE S. WHEELAN HAVE A BUSINESS RELATIONSHIP WITH SARITA E. BROWN TO THE EXTENT THAT THEY ARE DIRECTORS OF A TAX-EXEMPT ORGANIZATION THAT EMPLOYS SARITA E. BROWN. SOME CURRENT OFFICERS, DIRECTORS, AND KEY EMPLOYEES HAVE A BUSINESS RELATIONSHIP WITH OTHER CURRENT OFFICERS, DIRECTORS, AND KEY EMPLOYEES TO THE EXTENT THAT THEY ALSO SERVE TOGETHER ON THE BOARDS OF OTHER RELATED ENTITIES: (1) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT INTERNATIONAL B.V. (2) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT EDUCATION SOLUTIONS LTD (HONG KONG). (3) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT EDUCATION SOLUTIONS (AUSTRALIA) PTY LTD. (4) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT INFORMATION CONSULTING (SHANGHAI) CO LTD. (5) JON S. WHITMORE AND THOMAS J. GOEDKEN ARE DIRECTORS OF ACT BUSINESS SOLUTIONS B.V. (6) THOMAS J. GOEDKEN AND MARK D. MUSICK ARE DIRECTORS OF ACT BRIDGE, INC. (7) THOMAS J. GOEDKEN, JON L. ERICKSON, CHAD P. WICK, AND RICHARD PATZ ARE DIRECTORS OF ACT ASPIRE, LLC. (8) JON L. ERICKSON, THOMAS J. GOEDKEN, AND RICHARD PATZ ARE DIRECTORS OF PACIFIC METRICS CORPORATION. FORM 990, PART VI, SECTION B, LINE 11 PROCEDURES FOR REVIEW OF FORM 990 THE AUDIT COMMITTEE OF THE CORPORATION CONDUCTS A SUBSTANTIVE REVIEW OF THE FORM 990 PRIOR TO ITS FILING WITH THE ASSISTANCE OF THE OUTSIDE TAX PREPARER AND THE CORPORATION'S CHIEF FINANCIAL OFFICER, COUNSEL, AND STAFF. THE FINAL VERSION OF THE FORM 990 IS PROVIDED TO ALL OF THE MEMBERS OF THE CORPORATION'S BOARD OF DIRECTORS BEFORE IT IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C ACT HAS CREATED AN ETHICS ADVISORY COMMITTEE. MEMBERS OF THE ETHICS ADVISORY COMMITTEE REVIEW CONFLICT OF INTEREST QUESTIONNAIRES SUBMITTED BY EMPLOYEES AND ARE RESPONSIBLE FOR SEEING THAT CONFLICTS OF INTEREST ARE INVESTIGATED AND APPROPRIATELY ADDRESSED. THEY ALSO WORK CLOSELY WITH ACT'S HUMAN RESOURCES DEPARTMENT TO DEVELOP EDUCATION AND TRAINING PROGRAMS FOR EMPLOYEES REGARDING THE CONFLICTS OF INTEREST POLICY AND ETHICS ISSUES. THE ETHICS ADVISORY COMMITTEE REPORTS DIRECTLY TO THE AUDIT COMMITTEE OF ACT'S BOARD OF DIRECTORS. CONFLICT OF INTEREST QUESTIONNAIRES SUBMITTED BY DIRECTORS OR OFFICERS ARE REVIEWED AND ADDRESSED BY THE EXECUTIVE COMMITTEE OF THE BOARD OF DIRECTORS. FORM 990, PART VI, SECTION B, LINE 15A COMPENSATION OF THE CEO IS DETERMINED BASED UPON A PROCESS THAT INCLUDES CONTEMPORANEOUS DOCUMENTATION AND AN INDEPENDENT COMPENSATION STUDY CONDUCTED BY A PROFESSIONAL FIRM. AMONG OTHER BENCHMARKS, THE STUDY INCLUDES A REVIEW OF COMPENSATION PUBLISHED BY SIMILAR ORGANIZATIONS CONTAINED IN FORM 990. COMPENSATION OF THE CEO IS APPROVED BY THE BOARD BASED UPON THE RECOMMENDATION OF THE EXECUTIVE COMMITTEE. FORM 990, PART VI, SECTION B, LINE 15B: COMPENSATION OF ALL OTHER OFFICERS AND KEY EMPLOYEES IS ESTABLISHED UNDER ACT'S COMPENSATION POLICY. THE CEO APPROVES THE COMPENSATION FOR ALL OTHER OFFICERS. FORM 990, PART VI, SECTION C, LINE 19 ACT DOES NOT MAKE ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC. FORM 990, PART VII, SECTION A, BOARD MEMBER COMPENSATION: PER ACT POLICY, BOARD MEMBERS ARE EXPECTED TO PARTICIPATE IN FOUR THREE-DAY BOARD MEETINGS, COMMITTEE MEETINGS THAT OCCUR THROUGHOUT THE YEAR, AND AT OTHER TIMES TO DISCUSS IMPORTANT AND STRATEGIC MATTERS PERTAINING TO ACT. IN EXCHANGE FOR THEIR VALUABLE TIME AND SERVICE, ACT COMPENSATES THE BOARD WITH AN ANNUAL AMOUNT THAT IS PRORATED FOR MEETING ATTENDANCE AND PARTIAL YEARS OF SERVICE. THE CHAIRMAN OF THE BOARD AND COMMITTEE CHAIRS, AS WELL AS BOARD MEMBERS WHO ARE REQUESTED TO PROVIDE TIME OTHER THAN FOR MEETING ATTENDANCE, RECEIVE ADDITIONAL COMPENSATION AT A COMMENSURATE RATE. IN ADDITION TO SERVING AS A VOTING MEMBER OF THE BOARD OF DIRECTORS, JON S. WHITMORE ALSO SERVES AS CEO OF ACT. HIS COMPENSATION AS CEO IS DISCLOSED ON FORM 990, PART VII, SECTION A AND SCHEDULE J. HE RECEIVES NO ADDITIONAL COMPENSATION FOR SERVICE AS A MEMBER OF THE BOARD OF DIRECTORS. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN (B), AVERAGE HOURS PER WEEK: HOURS LISTED FOR EACH INDIVIDUAL ARE REPORTED ON A CALENDAR YEAR BASIS. HOURS REPORTED FOR EMPLOYEES REPRESENT RECORDED PAYROLL HOURS. ACTUAL HOURS WORKED MAY EXCEED THE HOURS REPORTED. FORM 990, PART IX, LINE 11G HONORARIA OTHER: PROGRAM SERVICE EXPENSES 24,300. MANAGEMENT AND GENERAL EXPENSES 10,000. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 34,300. ESSAY SCORING: PROGRAM SERVICE EXPENSES 11,113,842. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 11,113,842. ITEM DEVELOPMENT: PROGRAM SERVICE EXPENSES 447,088. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 447,088. OTHER DATA PROCESSING: PROGRAM SERVICE EXPENSES 558,952. MANAGEMENT AND GENERAL EXPENSES 11,706. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 570,658. COMPUTER PROGRAMMING-EXTERNAL: PROGRAM SERVICE EXPENSES 569,061. MANAGEMENT AND GENERAL EXPENSES 0. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 569,061. COMPUTER PROCESSING-EXTERNAL: PROGRAM SERVICE EXPENSES 15,113,023. MANAGEMENT AND GENERAL EXPENSES 69,713. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 15,182,736. CONSULTING FEES: PROGRAM SERVICE EXPENSES 23,937,743. MANAGEMENT AND GENERAL EXPENSES 974,717. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 24,912,460. OTHER SERVICES & FEES: PROGRAM SERVICE EXPENSES 23,937,742. MANAGEMENT AND GENERAL EXPENSES 974,717. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 24,912,459. TEMPORARY LABOR: PROGRAM SERVICE EXPENSES 9,905,284. MANAGEMENT AND GENERAL EXPENSES 12,525. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 9,917,809. FORM 990, PART XI, LINE 9: NET APPRECIATION IN FAIR VALUE OF INTEREST RATE SWAPS 81,718. INCREASE IN NET ASSETS - ACT INTERNATIONAL CONSOLIDATED 726,654. (DECREASE) IN NET ASSETS - ACT BRIDGE CONSOLIDATED -5,733,806. INCREASE IN NET ASSETS - ACT FOUNDATION 2,225,722. EQUITY IN NET LOSS OF NONMARKETABLE EQUITY SECURITIES -3,728,877. FORM 990, PART XII, LINE 2C, RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT: THE ORGANIZATION'S AUDIT COMMITTEE ASSUMES RESPONSIBILITY FOR OVERSIGHT OF THE AUDIT OF ITS FINANCIAL STATEMENTS AND SELECTION OF AN INDEPENDENT ACCOUNTANT. ACT FOUNDATION 500 ACT DRIVE IOWA CITY IA 52243 272574917 TO SUPPORT THE ACTIVITIES OF ACT, INC. IA 501(C)(3) LINE 11A, I ACT INC 1 ACT ASPIRE LLC 110 5TH ST STE 270 CORALVILLE IA 52241 455560033 TESTING SERVICES DE ACT INC RELATED -6785785 4525363 0 0 0.50000 ACT EDUCATION SOLUTIONS LTD (HONG KONG) ROOM 2503 BANK OF AMERICA TOWER 1 HONG KONG HK TESTING SERVICES HK ACT INTERNATIONAL BV C 2778159 3165765 1.00000 1 ACT INTERNATIONAL BV NARITAWEG 165 1043 BW AMSTERDAM NL HOLDING COMPANY NL ACT INC C -172 12697965 1.00000 1 ACT BUSINESS SOLUTIONS BV NARITAWEG 165 1043 BW AMSTERDAM NL TESTING SERVICES NL ACT INTERNATIONAL BV C 23623 1.00000 1 ACT EDUCATION SOLUTIONS (AUSTRALIA) PTY LTD SUITE 1201 LEVEL 12 275 ALFRED ST NORTH SYDNEY, NSW 2060 AS TESTING SERVICES AS ACT EDUCATION SOLUTIONS LTD (HONG KONG) C 791556 603067 1.00000 1 ACT EDUCATION SOLUTIONS (KOREA) INC ROOM 2503 BANK OF AMERICA TOWER 1 HONG KONG HK TESTING SERVICES KS ACT EDUCATION SOLUTIONS LTD (HONG KONG) C 47618 11825 1.00000 1 ACT INFORMATION CONSULTING (SHANGHAI) CO LTD RM 1204 TIAN AN CTR 338 NANJING W SHANGHAI CH TESTING SERVICES CH ACT EDUCATION SOLUTIONS LTD (HONG KONG) C 1170972 2205411 1.00000 1 ACT BRIDGE INC 950 E PACES FERRY ROAD NE SUITE 155 ATLANTA GA 30326 461405341 TESTING SERVICES DE ACT INC C 372327 14867486 1.00000 1 PACIFIC METRICS CORPORATION 1 LWR RAGDALE BLDG 1 STE 150 MONTEREY CA 93940 943378681 TESTING SERVICES CA ACT BRIDGE INC C 15753553 18131048 1.00000 1 0 1 0 1 0 0 0 0 0 0 0 1 1 0 0 0 0 0 0 ACT EDUCATION SOLUTIONS LTD (HONG KONG) L 92306 WRITTEN CONTRACT ACT FOUNDATION B 3237069 CASH ACT BRIDGE INC B 2405000 CASH ACT BRIDGE INC L 144285 WRITTEN CONTRACT PACIFIC METRICS CORPORATION B 200000 CASH PACIFIC METRICS CORPORATION M 7026633 WRITTEN CONTRACT SCHEDULE R, PART III: ACT ASPIRE, LLC IS REPORTED ON SCH R, PART III AS A RELATED ORGANIZATION DUE TO ACT'S AUTHORITY TO APPOINT FOUR OF THE SEVEN TOTAL VOTING DIRECTORS THAT GOVERN ACT ASPIRE, LLC. ACT DOES NOT OWN MORE THAN A 50% PROFITS OR CAPITAL INTEREST IN ACT ASPIRE, LLC. THEREFORE, ACT ASPIRE, LLC IS NOT A SECTION 512(B)(13) CONTROLLED ENTITY.