2014-08-14T14:12:08-05:00 2013-09-30 410746749 CLIFTONLARSONALLEN LLP 4250 N FAIRFAX DRIVE SUITE 1020 ARLINGTON VA 22203 990 2012-10-01 530196547 NATIONAL DEFENSE INDUSTRIAL ASSOCIATION NATI 7035221820 2111 WILSON BOULEVARD NO 400 ARLINGTON VA 222013061 LAWRENCE P FARRELL JR 7035221820 2014-08-04 1 KAREN GRIES P00078514 5712279500 2012 2015-11-30 17:44:51Z LAWRENCE P FARRELL JR 2111 WILSON BOULEVARD NO 400 ARLINGTON VA 222013061 30364025 0 X WWW.NDIA.ORG X 1919 DC TO PROMOTE THE INTEREST OF DEFENSE PREPAREDNESS. 30 30 84 92000 1294830 0 294884 135431 32737108 21319014 907596 2032076 938403 781148 34877991 24267669 61000 92500 0 0 11461278 7868674 0 0 0 21222692 15253005 32744970 23214179 2133021 1053490 59340566 58137940 19841063 17350338 39499503 40787602 X THE MISSION OF THE NATIONAL DEFENSE INDUSTRIAL ORGANIZATION (NDIA) AND ITS SUBSIDIARY AFFILIATES: THE ASSOCIATION FOR ENTERPRISE INFORMATION (AFEI), THE NATIONAL TRAINING AND SIMULATION ASSOCIATION (NTSA), THE PRECISION STRIKE ASSOCIATION (PSA), AND WOMEN IN DEFENSE (WID); IS TO ADVOCATE CUTTING EDGE TECHNOLOGY AND SUPERIOR WEAPONS, EQUIPMENT, TRAINING, AND SUPPORT FOR THE WAR-FIGHTER AND FIRST RESPONDER; TO PROMOTE A VIGOROUS, RESPONSIVE GOVERNMENT - INDUSTRY NATIONAL SECURITY TEAM; AND TO PROVIDE LEGAL AND ETHICAL FORUMS FOR THE EXCHANGE OF INFORMATION BETWEEN INDUSTRY AND GOVERNMENT ON NATIONAL SECURITY ISSUES. 0 0 11108729 92500 18281174 THE NDIA PROMOTES ACTIVITIES AND FORUMS FOR THE INTERCHANGE BETWEEN INDUSTRY AND GOVERNMENT ON TECHNOLOGY AND ACQUISITION DEVELOPMENTS. IN ADDITION IT PROVIDES STATE OF THE ART DEFENSE TECHNOLOGY UPDATES AND PROMOTES BETTER MANAGEMENT TECHNIQUES THROUGH SYMPOSIA. NDIA'S OVER 30 DIVISIONS COVER A WIDE SPECTRUM OF INTEREST AREAS THAT ARE IMPORTANT TO THE NATIONAL DEFENSE PREPAREDNESS EFFORT. THE DIVISIONS ARE ORGANIZED TO PROMOTE THE EXCHANGE OF TECHNICAL INFORMATION RELATED TO THE RESEARCH, DEVELOPMENT, PRODUCTION, LOGISTICS, AND MANAGEMENT OF WEAPON SYSTEMS, POLICY, ASSOCIATED SUPPORT, AND TRAINING AMONG THE DEPARTMENT OF DEFENSE, OTHER FEDERAL GOVERNMENT AND STATE AGENCIES, INDUSTRY, ACADEMIA AND SCIENTIFIC AGENCIES. 2540889 2409182 CHAPTERS AND DIVISIONS: THE NDIA AND WID CHAPTERS ARE PART OF THE NDIA ENTITY AND ARE ORGANIZED GEOGRAPHICALLY FOR THE PURPOSE OF ENCOURAGING ACTIVITIES THAT SUPPORT THE ASSOCIATION'S VISION, MISSION, AND GOALS. MANY ARE LOCATED NEAR MAJOR MILITARY COMMANDS, RESEARCH CENTERS, AND DEFENSE AGENCIES AND CONDUCT PROGRAMS TO INFORM THEIR MEMBERS AND COMMUNITIES ABOUT NATIONAL SECURITY AND THE INDUSTRIAL BASE. 2297230 1409806 EDUCATIONAL SERVICES: THE NATIONAL DEFENSE MAGAZINE IS A MONTHLY MAGAZINE THAT IS PUBLISHED TO HELP EDUCATE GOVERNMENT, INDUSTRY, AND THE PUBLIC REGARDING DEFENSE ISSUES AND RELATED TECHNOLOGY DEVELOPMENTS. 15946848 1 0 0 1 0 0 0 0 0 1 1 1 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 1 1 1 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1 24 0 84 1 1 1 0 0 0 0 0 0 0 0 0 X 30 30 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 VA X BARRY D BATES 7032472559 2111 WILSON BOULEVARD NO 400 ARLINGTON VA 222013061 MR SEAN O'KEEFE 1.00 X X 0 0 0 MR ARNOLD J PUNARO 1.00 X X 0 0 0 MR JOSEPH W DYER 1.00 X 0 0 0 BRONISLAW PROKUSKI JR 40.00 X X 665027 0 51547 RICHARD A CODY 1.00 X 0 0 0 MS SUSAN B KENNEDY 1.00 X 0 0 0 MR JOE REEDER 1.00 X 0 0 0 MR MAURICE A GAUTHIER 1.00 X 0 0 0 MS SID ASHWORTH 1.00 X 0 0 0 MR GERALD G HARVEY JR 1.00 X 0 0 0 MR RICHARD L HAVER 1.00 X 0 0 0 MR WILLIAM C HOOVER 1.00 X 0 0 0 MR RICHARD ANDREW HOVE 1.00 X 0 0 0 MR JAMES B LASSWELL 1.00 X 0 0 0 MR STEPHEN E KELLY 1.00 X 0 0 0 MS JOANNA T LAU 1.00 X 0 0 0 MR JAMES MCALEESE 1.00 X 0 0 0 MR TERRANCE J MCKEARNEY 1.00 X 0 0 0 LTG DAVID F MELCHER USA RET 1.00 X 0 0 0 MR RICHARD D MCCONN 1.00 X 0 0 0 DR WILLIAM B MOORE 1.00 X 0 0 0 MS PATRICIA M WARD 1.00 X 0 0 0 MR GEORGE J PEDERSEN 1.00 X 0 0 0 BRIG GEN GRAHAM E SHIRLEY USAF RET 1.00 X 0 0 0 MS ELLEN LORD 1.00 X 0 0 0 MR BOBBY STURGELL 1.00 X 0 0 0 MR GREGORY WENZEL 1.00 X 0 0 0 MR THOMAS A VECCHIOLLA 1.00 X 0 0 0 MR DELLOYD VOORHEES JR 1.00 X 0 0 0 MR FRANCIS M WALTON 1.00 X 0 0 0 MR WILLIAM GLENN YARBOROUGH JR 1.00 X 0 0 0 MR HAROLD L YOH III 1.00 X 0 0 0 LAWRENCE P FARRELL JR 40.00 X 1078099 0 41119 DAVID E CHEESEBROUGH 40.00 X 193259 0 85812 FREDERICK L LEWIS 40.00 X 109981 0 108183 JAMES A ROBB 40.00 X 244405 0 0 BARRY D BATES 40.00 X 345338 0 34207 SANDRA I ERWIN 40.00 X 206001 0 35585 DINO K PIGNOTTI 40.00 X 193393 0 61518 PETER M STEFFES 40.00 X 268030 0 128034 THOMAS NORDBY 40.00 X 217225 0 65157 SASAN OGHLIDOS 40.00 X 172351 0 37791 SAMUEL CAMPAGNA 40.00 X 165539 0 76989 SCOTT J REKDAL 40.00 X 182840 0 72222 E RICHARD TAYLOR 40.00 X 149258 0 36346 DONALD B ROULSTONE 40.00 X 148383 0 33334 LUELLEN HOFFMAN 40.00 X 127992 0 30086 BRITT BOMMELJE 40.00 X 147523 0 25644 BARBARA MCDANIEL 40.00 X 140080 0 25703 4754724 0 949277 24 0 1 0 0 135431 135431 MEETINGS 900099 7807460 7807460 EXHIBITS 900099 7730327 7730327 MEMBERSHIP DUES 900099 3122205 3122205 PUBLICATIONS 541800 1557180 262350 1294830 SPONSORSHIPS 900099 1101842 1101842 21319014 912601 912601 7215831 6096356 1119475 1119475 1119475 CHAPTER MISC REVENUE 900099 424371 424371 MISCELLANEOUS REVENUE 900099 356777 356777 781148 24267669 20805332 1294830 2032076 5500 5500 87000 87000 4602608 1874330 2728278 2091267 1193501 897766 123315 64953 58362 649105 318945 330160 402379 195212 207167 775186 511320 263866 79499 7683 71816 64329 64329 198874 198874 906901 600962 305939 1022907 503832 519075 409205 149298 259907 550041 550041 762704 292744 469960 555746 426281 129465 7732432 7732432 34716 14321 20395 55400 55400 PUBLICATIONS 830659 830659 MISCELLANEOUS CHAPTER E 825300 825300 ALL OTHER EXPENSES 197327 197327 MEMBERSHIP SERVICES 136531 136531 115248 115248 23214179 15946848 7267331 0 700 700 19545343 14795052 323455 459547 1613590 1463771 2807199 2713520 116227 93679 31762797 34269924 5361055 6484189 617399 571078 59340566 58137940 4445237 2023662 10034771 8842415 5361055 6484261 19841063 17350338 X 38178768 39395325 689235 757777 631500 634500 39499503 40787602 59340566 58137940 X 1053490 936545 -686655 -15281 X 0 1 X 1 0 X 2941193 3299425 3655107 294884 135431 10326040 26107878 29839922 31573440 32737108 21335664 141594012 29049071 33139347 35228547 33031992 21471095 151920052 0 0 0 151920052 669827 722450 772949 784309 912601 3862136 669827 722450 772949 784309 912601 3862136 786507 898653 1145563 938403 781148 4550274 30505405 34760450 37147059 34754704 23164844 160332462 0.94750 0.95200 0.02410 0.02270 X 0 125041 125041 23089139 23214180 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 120365 127268 128765 125041 501439 250000 250000 250000 250000 1000000 1500000 555 7768 465 0 8788 878610 3000 57868 10000 929478 860216 9001 9393 878610 822237 3000 34979 860216 756445 65792 822237 721586 7000 27859 756445 0.68000 0.32000 1 0 2807199 2713520 93679 93679 DEFERRED COMPENSATION INVESTMENT 6484189 F 6484189 DEFERRED COMPENSATION OBLIGATION 6484261 6484261 X 19563520 0 19563520 4704149 4704149 24267669 20474416 0 20474416 198874 2540889 2739763 23214179 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ACTIVE ENDOWMENT FUNDS ARE PRIMARILY USED FOR SCHOLARSHIP AWARDS. THE CHOU AND ZERNOW FUNDS ARE PRIMARILY FOR RECOGNIZING PROFESSIONAL COMPETENCE IN TERMS OF BEST PAPER AND BEST AUTHOR AT THE NORMALLY, ANNUAL BALLISTICS CONFERENCE. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE ASSOCIATION IS FOLLOWING THE GUIDANCE IN THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE ASSOCIATION EVALUATED ITS TAX POSITIONS AND DETERMINED ITS POSITIONS ARE MORE-LIKELY-THAN-NOT TO BE SUSTAINED UPON EXAMINATIONS. THE ASSOCIATION'S TAX RETURNS ARE SUBJECT TO REVIEW AND EXAMINATION BY FEDERAL AND STATE AUTHORITIES. THE TAX RETURNS FOR THE FISCAL YEARS 2010, 2011, AND 2012 ARE OPEN TO EXAMINATION BY FEDERAL AND STATE AUTHORITIES. PART XI, LINE 4B - OTHER ADJUSTMENTS: CHAPTER REVENUE 2,731,157. INVESTMENT INCOME 1,972,992. PART XII, LINE 4B - OTHER ADJUSTMENTS: CHAPTER EXPENSES 2,540,889. 1 SPECIAL OPERATIONS WARRIOR FOUNDATION 1137 MARBELLA PLAZA DRIVE TAMPA FL 33619 521183585 501(C)(3) 5500 0 N/A N/A GENERAL OPERATING CONTRIBUTION. I/ITSEC SCHOLARSHIP 1 10000 0 N/A USW FELLOWSHIP AWARD 3 18000 0 N/A HORIZONS SCHOLARSHIP AWARD 4 49000 0 N/A GOLLOBIN SCHOLARSHIP 1 10000 0 N/A PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: I/ITSEC TRAINING SYSTEMS: A SCHOLARSHIP AWARD FUNDED BY THE ANNUAL MEETING. SCHOLARSHIPS ARE OFFERED AT A MASTERS LEVEL IN THE AMOUNT $5,000, AND AT A DOCTORAL LEVEL IN THE AMOUNT OF $10,000. APPLICANTS MUST BE ENROLLED OR ACCEPTED FOR A FULL-TIME MASTERS OR DOCTORAL PROGRAM IN CERTAIN DISCIPLINES, BE A US CITIZEN, AND HAVE A STATED INTEREST AND CAREER GOAL IN THE MODELING, SIMULATION & TRAINING SYSTEMS AND/OR EDUCATION INDUSTRY. THE AWARD WILL BE BASED ON STUDENT MERIT AND NEEDS AS DETERMINED FROM THE SUBMITTED APPLICATION DOCUMENTS. IF THE AWARDEE TERMINATES HIS/HER GRADUATE STUDIES AND THERE ARE REMAINING FUNDS, THE INSTITUTION WILL RETAIN SUCH FUNDS FOR AWARD TO ANOTHER STUDENT OF THEIR CHOICE FOLLOWING THE ELIGIBILITY GUIDELINES. A PANEL CONSISTING OF INDIVIDUALS FROM THE MILITARY SERVICES AND PAST AND PRESENT I/ITSEC CHAIRS DETERMINE THE SELECTION. UNDERSEA WARFARE FUND: THE NDIA UNDERSEA SYSTEMS WARFARE DIVISION (USWD) UNIVERSITY FELLOWSHIP FUND IS TO FUND SCHOLARSHIPS FOR DOCTORAL CANDIDATES IN SCIENCE AND ENGINEERING RELATED TO UNDERSEA WARFARE AT THE UNIVERSITY OF TEXAS AUSTIN, THE PENNSYLVANIA STATE UNIVERSITY AT STATE COLLEGE, AND THE UNIVERSITY OF WASHINGTON SEATTLE. SPECIFIC ELIGIBILITY RULES FOR THE FELLOWSHIP ARE ESTABLISHED AT THE PARTICIPATING UNIVERSITIES, WHICH FORWARD CANDIDATES TO THE DIRECTOR OF APPLIED RESEARCH LABORATORIES AT THE UNIVERSITY OF TEXAS WITH THEN REVIEW AND APPROVAL BY UNDERSEA WARFARE EXECUTIVE BOARD. THE FELLOWSHIP IS NORMALLY FOR ONE-YEAR NOT TO EXCEED IN-STATE TUITION COSTS AND FEES, EXTENDIBLE TO A SECOND YEAR BASED ON STUDENT PERFORMANCE. HORIZONS SCHOLARSHIP: THE SCHOLARSHIP IS INTENDED TO PROVIDE FINANCIAL ASSISTANCE TO FURTHER EDUCATIONAL OBJECTIVES OF WOMEN WHO ARE US CITIZENS EITHER EMPLOYED OR PLANNING CAREERS IN DEFENSE OR NATIONAL SECURITY AREAS (THIS IS NOT LAW ENFORCEMENT OR CRIMINAL JUSTICE). THE AMOUNT OF THE AWARDS VARIES EACH YEAR. THE APPLICANT MUST BE CURRENTLY ENROLLED EITHER PART OR FULL TIME AT AN ACCREDITED UNIVERSITY OR COLLEGE WITH A MINIMUM GRADE POINT AVERAGE OF 3.25. AWARDS ARE BASED ON ACADEMIC ACHIEVEMENT, PARTICIPATION IN DEFENSE AND NATIONAL SECURITY ACTIVITIES, FIELD OF STUDY, WORK EXPERIENCE, STATEMENTS OF OBJECTIVES, RECOMMENDATIONS, AND FINANCIAL NEED. A PANEL OF JUDGES, COMPOSED OF WID (NDIA AFFILIATE) MEMBERS, CONSIDERS APPLICATIONS AND MAKES AWARDS ONCE EACH YEAR. SKIBBIE SCHOLARSHIP: THE SCHOLARSHIP IS INTENDED TO SUPPORT ONE OR MORE ADVANCED GRADUATE STUDENT(S) IN ENGINEERING, SCIENCE, OR MANAGEMENT, WITH THE TOTAL AVAILABLE FOR AWARD BEING $10,000. THE APPLICANT MUST BE ENROLLED OR ACCEPTED FOR A FULL-TIME MASTERS OR DOCTORAL PROGRAM IN ENGINEERING, THE SCIENCES OR MANAGEMENT AS RELATED TO THE NDIA MISSION, BE A US CITIZEN, AND HAVE A STATED INTEREST AND CAREER GOAL IN THE DEFENSE OR NATIONAL SECURITY INDUSTRY, THE AWARD WILL BE BASED ON STUDENT MERIT AND NEEDS AS DETERMINED FROM THE APPLICATION DOCUMENTS. FINAL SELECTION OF THE AWARDEE(S) IS MADE BY THE NDIA EXECUTIVE COMMITTEE. THE AWARD WILL BE MADE DIRECTLY TO THE INSTITUTION FOR TUITION AND IS SUBJECT TO THEIR POLICIES AND PROCEDURES. IF THE AWARDEE TERMINATES HIS/HER GRADUATE STUDIES AND THERE ARE REMAINING FUNDS, THE INSTITUTION WILL RETAIN SUCH FUNDS FOR AWARD TO ANOTHER STUDENT OF THEIR CHOICE SUBJECT TO THE ELIGIBILITY GUIDELINES. 1 X X X X X 0 1 0 0 0 0 0 0 0 BRONISLAW PROKUSKI JR 239003 0 344136 0 81888 0 41399 0 10148 0 716574 0 0 0 LAWRENCE P FARRELL JR 364576 0 511757 0 201766 0 32701 0 8418 0 1119218 0 0 0 DAVID E CHEESEBROUGH 157759 0 35500 0 0 0 66920 0 18892 0 279071 0 0 0 FREDERICK L LEWIS 83072 0 17000 0 9909 0 106899 0 1284 0 218164 0 0 0 JAMES A ROBB 161124 0 65789 0 17492 0 0 0 0 0 244405 0 0 0 BARRY D BATES 189482 0 128000 0 27856 0 33742 0 465 0 379545 0 0 0 SANDRA I ERWIN 128294 0 77707 0 0 0 35585 0 0 0 241586 0 0 0 DINO K PIGNOTTI 119924 0 73469 0 0 0 34129 0 27389 0 254911 0 0 0 PETER M STEFFES 254316 0 0 0 13714 0 121587 0 6447 0 396064 0 0 0 THOMAS NORDBY 145670 0 69900 0 1655 0 40700 0 24457 0 282382 0 0 0 SASAN OGHLIDOS 129851 0 42500 0 0 0 31550 0 6241 0 210142 0 0 0 SAMUEL CAMPAGNA 105539 0 60000 0 0 0 71254 0 5735 0 242528 0 0 0 SCOTT J REKDAL 133540 0 49300 0 0 0 21268 0 50954 0 255062 0 0 0 E RICHARD TAYLOR 109658 0 39600 0 0 0 28257 0 8089 0 185604 0 0 0 DONALD B ROULSTONE 105783 0 42600 0 0 0 28540 0 4794 0 181717 0 0 0 LUELLEN HOFFMAN 90492 0 37500 0 0 0 22997 0 7089 0 158078 0 0 0 BRITT BOMMELJE 113423 0 34100 0 0 0 19888 0 5756 0 173167 0 0 0 BARBARA MCDANIEL 107480 0 32600 0 0 0 18614 0 7089 0 165783 0 0 0 PART I, LINE 4B BRON PRUKOSKI AND LAWRENCE FARRELL PARTICIPATE IN A 457(F) PLAN. THE REQUIRED CONTRIBUTION TO THE PLAN FOR PRUKOSKI AND FARRELL THE FISCAL YEAR ENDED SEPTEMBER 30, 2013 CONSISTED OF $117,500 AND $325,883, RESPECTIVELY. FORM 990, PART VI, SECTION A, LINE 1 THE EXECUTIVE COMMITTEE SHALL CONSIST OF THE CHAIRMAN AND VICE CHAIRMAN OF THE BOARD OF DIRECTORS, THE IMMEDIATE PAST CHAIRMAN, AND FOUR ADDITIONAL MEMBERS ELECTED BY THE BOARD OF DIRECTORS FOR A TERM OF OFFICE OF ONE YEAR. THE EXECUTIVE COMMITTEE SHALL HAVE AND EXERCISE THE AUTHORITY OF THE BOARD OF DIRECTORS IN THE MANAGEMENT OF THE ASSOCIATION, EXCEPT THE AUTHORITY TO ADOPT AMENDMENTS TO THESE BY-LAWS. IN ADDITION, IT SHALL REVIEW INDIVIDUAL, CORPORATE AND GOVERNMENT MEBERSHIP STANDINGS AT EACH OF ITS REGULAR MEETINGS. FORM 990, PART VI, SECTION A, LINE 6 THE ASSOCIATION HAS THREE CLASSES OF MEMBERSHIP: INDIVIDUAL, CORPORATE, AND ALLIED. INDIVIDUAL MEMBERSHIP SHALL BE EITHER REGULAR, LIFE, STUDENT, OR HONORARY, AS DESCRIBED BELOW. INDIVIDUAL MEMBERS MUST BE UNITED STATES CITIZENS. INDIVIDUAL MEMBERS SHALL BE ENTITLED TO VOTE AS A MEMBER OF ONE OF THE ASSOCIATION'S CHAPTERS ONLY ON MATTERS AFFECTING THE CHAPTER. (A) REGULAR MEMBERSHIP IS OPEN TO THOSE INDIVIDUALS WHO DO NOT QUALIFY FOR ANY OTHER TYPE OF INDIVIDUAL MEMBERSHIP; (B) LIFE MEMBERSHIP IS OPEN TO INDIVIDUAL MEMBERS UPON PAYMENT OF LIFE-TIME MEMBERSHIP DUES; (C) STUDENT MEMBERSHIP IS OPEN TO STUDENTS IN COLLEGES AND TECHNICAL SCHOOLS; AND (D)HONORARY MEMBERSHIP IS CONFERRED IN THE DISCRETION OF THE BOARD OF DIRECTORS OR THE EXECUTIVE COMMITTEE ON THOSE WHO HAVE RENDERED MERITORIOUS SERVICE IN THE CAUSE OF DEFENSE PREPAREDNESS AND NATIONAL SECURITY. HONORARY MEMBERS WILL PAY NO DUES. CORPORATE MEMBERS SHALL BE TERMED REGULAR CORPORATE MEMBERS. REGULAR CORPORATE MEMBERSHIP IS OPEN TO ALL BUSINESSES, INCLUDING PARTNERSHIPS, SOLE PROPRIETORSHIPS, CORPORATIONS, FIRMS, EDUCATIONAL INSTITUTIONS, FOUNDATIONS, ASSOCIATIONS, AND COMPONENTS THEREOF (HEREINAFTER REFERRED TO AS "CORPORATIONS") ORGANIZED OR OTHERWISE CHARTERED WITHIN THE UNITED STATES. A KEY REPRESENTATIVE, EMPOWERED TO SPEAK (VOTE) FOR HIS OR HER CORPORATION ON MATTERS AFFECTING THE ASSOCIATION AS A WHOLE (HEREINAFTER REFERRED TO AS "KEY REPRESENTATIVE") WILL BE DESIGNATED BY EACH REGULAR CORPORATE MEMBER. REGULAR CORPORATE MEMBERS SHALL HAVE THE RIGHT TO NOMINATE EMPLOYEES TO REGULAR MEMBERSHIP IN THE ASSOCIATION, THE TOTAL NUMBER OF SUCH MEMBERSHIPS TO BE RELATED TO THE ANNUAL MEMBERSHIP DUES OF THE REGULAR CORPORATE MEMBER, AS MAY BE PRESCRIBED BY THE BOARD OF DIRECTORS OR THE EXECUTIVE COMMITTEE. SUCH MEMBERS SHALL NOT BE REQUIRED TO PAY INDIVIDUAL MEMBERSHIP DUES. ALLIED MEMBERSHIP SHALL BE EITHER INDIVIDUAL OR CORPORATE AS DESCRIBED BELOW. (A) ALLIED INDIVIDUAL MEMBERSHIP MAY BE CONFERRED BY THE PRESIDENT OF THE ASSOCIATION ON INDIVIDUALS WHO ARE CITIZENS OF: (1) NATIONS BELONGING TO THE NATO ALLIANCE; (2) JAPAN, AUSTRALIA, OR NEW ZEALAND; (3) NATIONS WITH WHICH THE UNITED STATES MAINTAINS A RECIPROCAL PROCUREMENT AGREEMENT; (4) NATIONS WITH WHICH THE UNITED STATES DEPARTMENT OF DEFENSE HAS SPECIFICALLY REQUESTED THE ASSOCIATION TO CONDUCT MEETINGS AND ENHANCE COMMUNICATIONS ON AN INDUSTRY-TO-INDUSTRY BASIS. ALLIED INDIVIDUAL MEMBERS MAY PARTICIPATE AS INDIVIDUAL NON-VOTING MEMBERS IN THE ACTIVITIES OF THE CHAPTERS, SUBJECT TO ANY RESTRICTIONS THAT MAY BE PLACED ON SUCH PARTICIPATION BY THE UNITED STATES GOVERNMENT. IN THE CASE OF CHAPTERS LOCATED OUTSIDE THE FIFTY STATES, ALLIED MEMBERS MAY PARTICIPATE AS INDIVIDUAL VOTING MEMBERS IN THE ACTIVITIES OF THOSE CHAPTERS. (B) ALLIED CORPORATE MEMBERSHIP MAY BE CONFERRED BY THE PRESIDENT OF THE ASSOCIATION ON CORPORATIONS WHICH ARE CHARTERED AND CONTROLLED UNDER THE LAWS OF: (1) NATIONS BELONGING TO THE NATO ALLIANCE; (2) JAPAN, AUSTRALIA, OR NEW ZEALAND; (3) NATIONS WITH WHICH THE UNITED STATES MAINTAINS A RECIPROCAL PROCUREMENT AGREEMENT; (4) NATIONS WITH WHICH THE UNITED STATES DEPARTMENT OF DEFENSE HAS SPECIFICALLY REQUESTED THE ASSOCIATION TO CONDUCT MEETINGS AND TO ENHANCE COMMUNICATIONS ON AN INDUSTRY-TO-INDUSTRY BASIS. ALLIED CORPORATE MEMBERS SHALL HAVE THE RIGHT TO NOMINATE A DESIGNATED NUMBER OF EMPLOYEES AS THEIR REPRESENTATIVES TO RECEIVE ALL BENEFITS OF ALLIED INDIVIDUAL MEMBERS. SUCH MEMBERS SHALL NOT BE REQUIRED TO PAY INDIVIDUAL MEMBERSHIP DUES. FORM 990, PART VI, SECTION A, LINE 7A THE ASSOCIATION'S BOARD OF DIRECTORS ARE ELECTED BY A MAJORITY VOTE FROM THE FOLLOWING ELECTORS: THE PRESIDENT OF EACH CHAPTER IN THE FIFTY STATES SHALL BE AN ELECTOR WHO SHALL HAVE ONE VOTE FOR EACH 100 INDIVIDUAL MEMBERS OF THE CHAPTER, OR A PORTION THEREOF. THE CHAIRMAN OF EACH DIVISION SHALL BE AN ELECTOR WHO SHALL HAVE ONE VOTE. THE KEY REPRESENTATIVE OF EACH REGULAR CORPORATE MEMBER SHALL BE AN ELECTOR WHO SHALL HAVE ONE VOTE. FORM 990, PART VI, SECTION B, LINE 11 FORM 990, PART VI, SECTION A, LINE 10: THE FORM 990 IS PREPARED BY AN INDEPENDENT ACCOUNTING FIRM AND IS PROVIDED PRIOR TO FILING TO THE NDIA BOARD OF DIRECTORS FOR THEIR INFORMATION AND REVIEW. AT THE SAME TIME, A DETAILED REVIEW IS CONDUCTED BY THE NDIA TREASURER, THE NDIA PRESIDENT, THE NDIA VICE PRESIDENT FOR BUSINESS OPERATIONS (FINANCE), THE NDIA CONTROLLER, AND THE NDIA EXECUTIVE COMMITTEE WHICH HAS BOARD AUTHORITY DESIGNATED TO IT. ALL PARTIES ARE ABLE TO ASK QUESTIONS AND REQUEST CHANGES TO THE FORM 990 PRIOR TO FILING WITH THE IRS. FORM 990, PART VI, SECTION B, LINE 12C EACH BOARD MEETING BEGINS WITH A REVIEW OF A CHART OUTLINING THE CONFLICT OF INTEREST POLICY AND THE BOARD CHAIRMAN CALLING FOR ANY DISCLOSURES. THE POLICY IS ALSO OUTLINED IN THE DIRECTOR'S HANDBOOK, WHICH EACH BOARD MEMBER RECEIVES. BOARD MEMBERS, OFFICERS, AND INDIVIDUALS HOLDING STAFF EXECUTIVE POSITIONS ARE REQUIRED TO COMPLETE DISCLOSURE FORMS ANNUALLY AT THE BEGINNING OF EACH FISCAL YEAR, LISTING ALL INTERESTS WHICH EITHER DO, OR POTENTIALLY COULD REPRESENT A CONFLICT OF INTEREST. OFFICERS AND THOSE INDIVIDUALS HOLDING EXECUTIVE POSITIONS ARE REQUIRED TO UPDATE THEIR DISCLOSURE FORMS THROUGHOUT THE YEAR SHOULD CIRCUMSTANCES CHANGE. THE DISCLOSURE FORM IS A THREE PART FORM: THE FIRST SECTION ASKS IF THERE ARE ANY RELEVANT RELATIONSHIPS TO DISCLOSE (RELEVANT BEING THOSE RELATIONSHIPS RELATED TO THE INTERESTS AND ACTIVITIES OF NDIA AND ITS AFFILIATES); THE SECOND SECTION REQUESTS DISCLOSURE OF RELEVANT FINANCIAL, COMMERCIAL OR OTHER ORGANIZATIONAL RELATIONSHIPS; AND THE FINAL SECTION REQUESTS A CATEGORY LISTING OF RELATIONSHIPS TO BE DISCLOSED AS APPROPRIATE. ANY ISSUES RAISED WOULD BE PRESENTED TO THE PRESIDENT AND CEO OF NDIA; SUBSEQUENTLY TO THE NDIA FINANCE COMMITTEE CHAIRMAN AND THE NDIA BOARD EXECUTIVE COMMITTEE FOR APPROPRIATE ACTION. ALL POTENTIAL AND ACTUAL CONFLICTS AND PROCEEDINGS ARE NOTED IN THE MEETING MINUTES. FORM 990, PART VI, SECTION B, LINE 15 THE COMPENSATION FOR THE PRESIDENT & CEO OF NDIA, LAWRENCE P. FARRELL, JR., LT GEN USAF (RET), IS UNDER CONTRACT AS SIGNED BY THE CHAIRMAN, NDIA. THE PRESIDENT'S BASE COMPENSATION IS REVIEWED ON AN ANNUAL BASIS BY THE NDIA COMPENSATION COMMITTEE AS PART OF ITS REVIEW OF THE INCENTIVE AWARDS JUSTIFICATIONS AS PRESENTED TO IT AND SUBSEQUENTLY BY THE NDIA EXECUTIVE COMMITTEE AT THE FALL NDIA BOARD AS PART OF THE EXECUTIVE COMMITTEE MEETING AGENDA FOLLOWING THE BOARD MEETING IN EXECUTIVE SESSION, WITH GENERAL COUNSEL PARTICIPATING. THE MOST RECENT REVIEW WAS IN NOVEMBER, 2012 . THE JUSTIFICATION PACKAGE PRESENTED TO BOTH COMMITTEES INCLUDES SURVEY COMPENSATION DATA PRIMARILY THAT OF PRM CONSULTING GROUP WHICH DOES EXTENSIVE SURVEYS OF THE NON-PROFIT INDUSTRY. THE LAST CHANGE IN THE PRESIDENT'S BASE COMPENSATION WAS AT THE BEGINNING OF FY 2012. THE COMPENSATION OF THE OTHER OFFICERS IS REVIEWED ON AN ANNUAL BASIS BY THE NDIA PRESIDENT AND THE NDIA COMPENSATION COMMITTEE AS PART OF ITS REVIEW OF THE INCENTIVE AWARDS JUSTIFICATIONS AS PRESENTED TO IT AND SUBSEQUENTLY BY THE NDIA EXECUTIVE COMMITTEE AT THE FALL NDIA BOARD AS PART OF THE EXECUTIVE COMMITTEE MEETING AGENDA FOLLOWING THE BOARD MEETING IN EXECUTIVE SESSION, WITH GENERAL COUNSEL PARTICIPATING. THE JUSTIFICATION PACKAGE PRESENTED TO BOTH COMMITTEES INCLUDES SURVEY COMPENSATION DATA PRIMARILY THAT OF PRM CONSULTING GROUP WHICH DOES EXTENSIVE SURVEYS OF THE NON-PROFIT INDUSTRY. THE MOST RECENT REVIEW WAS IN NOVEMBER, 2012 FOR THE OTHER OFFICERS: AFFILIATE PRESIDENTS, D. CHEESEBROUGH , F. LEWIS AND J.ROBB; AND VICE PRESIDENTS, B. BATES, S. ERWIN, T.OWENS, D. PIGNOTTI, B.PROKUSKI, AND P. STEFFES. KEY EMPLOYEES' COMPENSATION IS REVIEWED ON AN ANNUAL BASIS BY THE NDIA PRESIDENT USING THE APPROPRIATE COMPARABILITY DATA AND INFORMATION FROM INDIVIDUAL PERFORMANCE INCENTIVE REVIEWS. KEY EMPLOYEE COMPENSATION IS INDIRECTLY REVIEWED BY NDIA'S FINANCE COMMITTEE AS PART OF THE ANNUAL BUDGETING PROCESS. FORM 990, PART VI, SECTION C, LINE 19 THE ASSOCIATION MAKES ITS GOVERNING DOCUMENTS, CONFLICT OF INTEREST POLICY, AND FINANCIAL STATEMENTS AVAILABLE TO THE PUBLIC UPON REQUEST. CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHAPTER ACTIVITIES -15,281. FORM 990 PART XI LINE 9 PRIOR PERIOD ADJUSTMENT IN FINALIZING FISCAL YEAR 2013 FINANCIAL REPORTING, IT WAS DETERMINED THAT AN ASSET ACCOUNT USED BY THE ASSOCIATION TO CAPTURE UNSETTLED CREDIT CARD CHARGES IN TRANSIT, WAS OVERSTATED AS OF SEPTEMBER 30, 2013. FURTHER, IT WAS DETERMINED THAT THE OVERSTATEMENT IN PART RELATES TO PRIOR PERIODS. THE IMPACT OF ADJUSTING THE ACCOUNT TO ITS PROPER BALANCE IS TO DECREASE UNRESTRICTED NET ASSETS AT OCTOBER 1, 2012 (BEGINNING OF FISCAL YEAR 2013) BY APPROXIMATELY $686,700.