2015-10-22T18:03:59-05:00 2014-12-31 420714325 MCGLADREY LLP 9737 WASHINGTONIAN BLVD 400 GAITHERSBURG MD 208787340 990 2014-01-01 522344655 RAILROAD RESEARCH FOUNDATION RAIL 2026392118 425 THIRD STREET SW NO 910 WASHINGTON DC 20024 JEFFREY D MARSH VICE PRESIDENT & TREASURER 2026392118 2015-10-22 1 WILLIAM E TURCO CPA P00369217 3012963600 2014 2016-02-25 16:41:14Z EDWARD HAMBERGER 425 THIRD STREET SW NO 910 WASHINGTON DC 20024 1252816 0 X WWW.RAILROADRESEARCH.ORG X 1999 DE THE RAILROAD RESEARCH FOUNDATION IS A PUBLIC CHARITY FORMED TO CONDUCT RAILROAD RELATED RESEARCH AND EDUCATION ACTIVITIES TO PROMOTE RAILROAD TRANSPORTATION SAFETY AND EFFICIENCY. 6 1 0 1 0 0 1403095 381237 936577 616124 -1661 0 0 255455 2338011 1252816 0 0 0 0 135149 0 0 0 0 2340114 1368790 2475263 1368790 -137252 -115974 540064 197097 455545 228552 84519 -31455 X THE RAILROAD RESEARCH FOUNDATION IS A PUBLIC CHARITY FORMED TO CONDUCT RAILROAD RELATED RESEARCH AND EDUCATION ACTIVITIES TO PROMOTE RAILROAD TRANSPORTATION SAFETY AND EFFICIENCY. 0 1 637124 616124 RCRMS LICENSE ACTIVITIES:GOVERNED BY LICENSING AGREEMENTS BETWEEN THE FOUNDATION AND THE SEVEN (7) CLASS I AND ONE (1) SHORTLINE RAILROADS, THE RCRMS FREIGHT RAILROAD RISK ASSESSMENT TOOL IS RECOGNIZED AS A KEY ENABLING TECHNOLOGY FOR THE RAILROAD INDUSTRY TO ASSIST IN ACCOMPLISHING THE RISK EVALUATION OBJECTIVES FOR COMPLIANCE WITH THE RAIL SAFETY IMPROVEMENT ACT OF 2008. THIS TOOL WAS ORIGINALLY FUNDED BY A COOPERATIVE AGREEMENT BETWEEN THE FEDERAL RAILROAD ADMINISTRATION AND THE FOUNDATION FOR THE DEVELOPMENT AND DEPLOYMENT OF A TOOL FOR ROUTE ANALYSIS AND ASSESSMENT OF ROUTES BASED ON CERTAIN RISK CHARACTERISTICS AND PROFILES. THE FOUNDATION PROVIDES APPLICATION AND USER HOSTING, TECHNICAL SUPPORT CAPABILITIES AND DATA INTEGRATION. 255456 255455 CLEAN DIESEL FUNDING ASSISTANCE PROGRAM - REGION 6/LA:VOLUNTARY REPAYMENT OF FEDERAL FUNDS RECEIVED UNDER THE IDLE REDUCTION PROGRAM GRANT. ALL FUNDS RECEIVED UNDER GRANT WERE REFUNDED TO RRF BY ITS SUB-RECIPIENT AND, IN TURN, REPAID TO THE US ENVIRONMENTAL PROTECTION AGENCY. 129385 NATIONAL JOINT TERRORISM TASK FORCE (NJTTF):THIS IS A COOPERATIVE AGREEMENT BETWEEN THE DEPARTMENT OF HOMELAND SECURITY (DHS)/TRANSPORTATION SECURITY ADMINISTRATION (TSA) AND THE FOUNDATION TO ASSIST AND PROVIDE CONSTANT SECURE INTELLIGENCE AND COMMUNICATIONS BETWEEN THE DHS/TSA FREIGHT RAIL SECURITY DIVISION, FEDERAL MEMBERS OF NJTTF, AND OTHER INDUSTRY AGENCIES WHO SERVE ON THE NJTTF. 91141 PERSONAL ELECTRONIC DEVICE DISTRACTION MITIGATION PEER-TO-PEER PROJECT 36778 RCRMS SHORTLINE CLASS II & III PROJECT - HTRAM 127919 1149884 1 1 0 0 0 0 0 0 0 0 1 0 0 0 1 1 1 1 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 0 0 0 0 1 0 0 0 1 4 0 1 0 0 0 0 0 0 0 0 0 0 0 X 6 1 1 0 0 0 0 0 0 1 0 0 0 1 1 1 1 1 1 0 0 0 X JEFFREY MARSH TREASURER 2026392118 425 THIRD STREET SW NO 910 WASHINGTON DC 20024 EDWARD R HAMBERGER PRESIDENT & DIRECTOR 1.00 39.00 X X 0 1827490 883748 JEFFREY D MARSH VP, TREASURER & DIRECTOR 4.00 36.00 X X 0 460013 165712 ROBERT C VANDERCLUTE VP & DIRECTOR 4.00 36.00 X X 0 449617 50878 PATRICIA M REILLY VP & DIRECTOR 1.00 39.00 X X 0 501462 242720 JOHN T GRAY VP & DIRECTOR 1.00 39.00 X X 0 556476 52383 LOU THOMPSON DIRECTOR 1.00 X 0 0 0 JANET L BARTELMAY CORPORATE SECRETARY 1.00 39.00 X 0 673818 103916 LOUIS P WARCHOT VP & GENERAL COUNSEL 1.00 39.00 X 0 570692 64848 MARK A MCROBERTS ASSISTANT TREASURER 4.00 36.00 X 0 215766 75369 KELLY FRENCH DONLEY ASSISTANT VP COMMUNICATION 1.00 39.00 X 0 230212 69952 0 5485546 1709526 0 0 1 0 ABSG CONSULTING INC ABS PLAZA 16855 NORHTCHASE DR HOUSTON TX 77060 PROGRAM SERVICES 636492 NORFOLK SOUTHERN CORPORATION 3 COMMERCIAL PLACE NORFOLK VA 23510 PROGRAM SERVICES 180660 ASSOCIATION OF AMERICAN RAILROADS 425 THIRD ST SW SUITE 1000 WASHINGTON DC 20024 ADMIN & PROGRAM SERVICES 122350 3 125000 256237 381237 RCRMS LICENSE FEES 900099 616124 616124 616124 REFUNDS FROM SUBCONTRA 900099 255455 255455 255455 1252816 871579 0 0 X 41611 41611 923859 870684 53175 202 202 1649 1649 4811 4811 13404 13404 REFUND TO GRANTOR 255456 255456 INTER-COMPANY EXPENSES 122349 765 121584 OTHER EXPENSES 5351 5351 ALLOCATED OVERHEAD 98 22979 -22881 1368790 1149884 218906 0 303616 95838 213683 91898 425 425 43949 35013 22340 8936 540064 197097 318411 117987 137134 110565 455545 228552 X 84519 -31455 84519 -31455 540064 197097 -115974 0 X 0 1 X 1 0 X 7733617 6896200 3712359 1646264 381237 20369677 7733617 6896200 3712359 1646264 381237 20369677 1509658 18860019 20369677 2270867 0.92590 0.85230 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 200000 200000 200000 144000 144000 200000 43949 35013 8936 8936 DUE TO AFFILIATES 110565 110565 X 1351784 98968 98968 1252816 0 1252816 1467758 98968 98968 1368790 0 1368790 PART V, LINE 4: TEMPORARILY RESTRICTED NET ASSET IS MADE UP OF A SERIES OF PLEDGES MADE BY ASSOCIATION OF AMERICAN RAILROADS. PART X, LINE 2: THE FOUNDATION IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE IRC. HOWEVER, INCOME FROM CERTAIN ACTIVITIES NOT DIRECTLY RELATED TO THE FOUNDATION'S TAX-EXEMPT PURPOSE IS SUBJECT TO TAXATION AS UNRELATED BUSINESS INCOME. THERE WAS NO UNRELATED BUSINESS INCOME FOR THE YEARS ENDED DECEMBER 31, 2014 OR 2013. THE FOUNDATION FOLLOWS THE CODIFICATION TOPIC, 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, THE FOUNDATION MAY RECOGNIZE 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 THE FOUNDATION'S TAX POSITIONS AND CONCLUDED THAT THE FOUNDATION HAS TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE FINANCIAL STATEMENTS TO COMPLY WITH THE PROVISIONS OF THIS GUIDANCE. GENERALLY, THE FOUNDATION IS NO LONGER SUBJECT TO INCOME TAX EXAMINATIONS BY THE U.S. FEDERAL, STATE OR LOCAL TAX AUTHORITIES FOR YEARS BEFORE 2011. 0 1 0 0 0 0 0 0 0 EDWARD R HAMBERGER PRESIDENT & DIRECTOR 0 917758 0 891156 0 18576 0 831631 0 58195 0 2717316 0 0 JEFFREY D MARSH VP, TREASURER & DIRECTOR 0 306652 0 150405 0 2956 0 142507 0 31118 0 633638 0 0 ROBERT C VANDERCLUTE VP & DIRECTOR 0 295878 0 145331 0 8408 0 30058 0 28262 0 507937 0 0 PATRICIA M REILLY VP & DIRECTOR 0 334163 0 162230 0 5069 0 238840 0 12072 0 752374 0 0 JOHN T GRAY VP & DIRECTOR 0 323771 0 213857 0 18848 0 31563 0 28637 0 616676 0 0 JANET L BARTELMAY CORPORATE SECRETARY 0 206715 0 61023 0 406080 0 92935 0 18008 0 784761 0 0 LOUIS P WARCHOT VP & GENERAL COUNSEL 0 375377 0 184432 0 10883 0 36474 0 44470 0 651636 0 0 MARK A MCROBERTS ASSISTANT TREASURER 0 178931 0 34130 0 2705 0 64648 0 15658 0 296072 0 0 KELLY FRENCH DONLEY ASSISTANT VP COMMUNICATION 0 197980 0 30373 0 1859 0 44078 0 31003 0 305293 0 0 PART I, LINE 4B FOLLOWING INDIVIDUALS PARTICIPATE IN THE AAR SERP: EDWARD R. HAMBERGER - $766,681 JEFFREY D. MARSH - $93,810 PATRICIA M. REILLY - $204,222 FOLLOWING INDIVIDUALS RECEIVED PAYMENT IN THE AAR SERP: JANET BARTELMAY - $402,002 PART II, COMPENSATION: THE RAILROAD RESEARCH FOUNDATION DOES NOT COMPENSATE OFFICERS OR DIRECTORS. ALL COMPENSATION SHOWN IN PART VII OF THE FORM 990, AND SCHEDULE J, PAGE 2, PART II, IS PAID BY A RELATED ORGANIZATION OF THE FOUNDATION, THE ASSOCIATION OF AMERICAN RAILROADS. THE COMPENSATION DETERMINATION METHODOLOGY OF THE ASSOCIATION OF AMERICAN RAILROADS IS AS FOLLOWS: EXCEPT FOR ONE DIRECTOR WITH NO REPORTABLE COMPENSATION, ALL RRF DIRECTORS AND OFFICERS ARE EMPLOYED BY THE ASSOCIATION OF AMERICAN RAILROADS (AAR). IN REGARD TO AAR EMPLOYED DIRECTORS AND OFFICERS, COMPARABILITY DATA IS PREPARED BY AN INDEPENDENT COMPENSATION CONSULTANT FOR AAR EXECUTIVE (CEO AND VICE PRESIDENTS) COMPENSATION. THAT INFORMATION IS PROVIDED ANNUALLY TO THE AAR'S GOVERNANCE COMMITTEE AS PART OF ITS ANNUAL BUDGET DELIBERATIONS. EXECUTIVE SALARIES ARE REVIEWED AND ANY MERIT ADJUSTMENTS FOR THAT FISCAL YEAR ARE DETERMINED AS PART OF THE ANNUAL BUDGETARY PROCESS. CONTEMPORANEOUS MINUTES OF AAR GOVERNANCE COMMITTEE MEETINGS ARE MAINTAINED. FORM 990, PART III, LINE 3 RRF HAS BEEN UNABLE TO GENERATE SUFFICIENT EARNINGS TO ADEQUATELY FUND ITS OPERATION WITHOUT CONTINUED SUPPORT FROM THE AAR. THIS FACTOR, COUPLED WITH EXPECTED REDUCED FEDERAL ASSISTANCE RESOURCES AND OPPORTUNITIES AVAILABLE FOR THE FOUNDATION TO CONSIDER HAS LED TO MANAGEMENT PLANS TO WIND DOWN FEDERAL GRANT ACTIVITIES. THE FOUNDATION EXPECTS TO SUBSTANTIALLY COMPLETE ALL OF ITS OUTSTANDING FEDERALLY FUNDED COOPERATIVE AGREEMENTS BY THE END OF 1Q15 AND AAR HAS COMMITTED TO PROVIDE THE FOUNDATION WITH NECESSARY FINANCIAL SUPPORT. THE FOUNDATION WILL CONTINUE TO MANAGE AND LICENSE THE RCRMS TOOL. FORM 990, PART VI, SECTION A, LINE 2 EDWARD HAMBERGER AND JANET BARTELMAY - BUSINESS RELATIONSHIP FORM 990, PART VI, SECTION A, LINE 8B WHILE FORMAL MINUTES OF MANAGEMENT COMMITTEE MEETINGS ARE NOT RECORDED, ACTIONS TAKEN BY THE MANAGEMENT COMMITTEE ARE SUBSEQUENTLY PRESENTED IN WRITING TO THE BOARD OF DIRECTORS FOR RATIFICATION. FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 IS FIRST REVIEWED IN DETAIL BY THE ORGANIZATION'S PRESIDENT AND TREASURER PRIOR TO FILING. THEN A COPY OF THE 2014 RETURN IS MADE AVAILABLE TO EACH MEMBER OF THE ORGANIZATION'S CURRENT GOVERNING BODY. THE DIRECTORS ARE GIVEN AN OPPORTUNITY TO REVIEW, DISCUSS, AND ASK QUESTIONS BEFORE THE RETURN IS FILED WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE ORGANIZATION'S CONFLICT OF INTEREST POLICY REQUIRES EMPLOYEES AND DIRECTORS, ON AN ONGOING BASIS, TO IMMEDIATELY REPORT ANY CONFLICT OR POTENTIAL CONFLICT. WHEN AN EMPLOYEE OR DIRECTOR REASONABLY BELIEVES THAT A CONFLICT OF INTEREST MAY EXIST OR APPEAR TO EXIST, THE EMPLOYEE OR DIRECTOR MUST PROMPTLY AND FULLY DISCLOSE THE CONFLICT, REFRAIN FROM PARTICIPATION IN THE MATTER UNTIL THE QUESTION IS RESOLVED, AND FOLLOW ANY DIRECTIONS GIVEN BY THE ORGANIZATION CONCERNING THE MATTER. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ITS GOVERNING DOCUMENTS AVAILABLE TO THE PUBLIC TO THE EXTENT REQUIRED BY LAW. FORM 990, PART IX, LINE 11G CONSULTING FEES & EXPENSES: PROGRAM SERVICE EXPENSES 870,684. MANAGEMENT AND GENERAL EXPENSES 53,175. FUNDRAISING EXPENSES 0. TOTAL EXPENSES 923,859. ASSOCIATION OF AMERICAN RAILROADS 425 THIRD ST SW STE 1000 WASHINGTON DC 20024 536000125 TRADE ASSOCIATION DC 501(C)(6) N/A 0 TRANSPORTATION TECHNOLOGY CENTER INC 55500 DOT ROAD PUEBLO CO 81001 841440384 RAILROAD SERVICES DE ASSOCIATION OF AMERICAN RAILROADS C 0 RAILINC CORPORATION 7001 WESTON PARKWAY STE 200 CARY NC 27513 522131600 DEVELOPMENT SVCS DE ASSOCIATION OF AMERICAN RAILROADS C 0 0 0 1 1 1 0 0 0 0 0 1 0 1 1 1 1 0 0 0 ASSOCIATION OF AMERICAN RAILROADS C 125000 COST ASSOCIATION OF AMERICAN RAILROADS M 122216 COST PART V, LINE 1D AND 1E: THE TRANSACTION CORRESPONDING WITH LINES 1D AND 1E INVOLVES AN UNSECURED LINE OF CREDIT WHICH WAS CO-SIGNED BY ORGANIZATIONS RELATED TO THE ASSOCIATION OF AMERICAN RAILROADS. THE $4 MILLION UNSECURED LINE OF CREDIT HAD AN ORIGINAL EXPIRATION DATE OF JULY 31, 2008 AND THE AGREEMENT WAS SUBSEQUENTLY RENEWED MOST RECENTLY DURING 2014, WITH A MATURITY DATE OF JULY 31, 2015. UNDER THE LINE OF CREDIT FACILITY, SUNTRUST BANK WILL ALLOW ADVANCES AT ANY TIME PROVIDED NO SIGNIFICANT DETERIORATION IN THE FINANCIAL CONDITION OF THE CO-BORROWERS HAS OCCURRED. AS OF DECEMBER 31, 2013, NO AMOUNTS HAD BEEN WITHDRAWN ON THE LINE OF CREDIT.