2014-03-11T14:52:36-05:00 2013-06-30 420714325 MCGLADREY LLP 100 INTERNATIONAL DRIVE SUITE 1400 BALTIMORE MD 21202 990 2012-07-01 237003516 US NAVAL ACADEMY FOUNDATION INC USNA 4102954100 247 KING GEORGE STREET ANNAPOLIS MD 21402 HENRY J SANFORD 4102954100 2014-03-07 1 JULIA FLANNERY CPA P00928918 4102469300 2012 2015-11-30 17:44:51Z BYRON MARCHANT 247 KING GEORGE STREET ANNAPOLIS MD 21402 64630294 0 X WWW.USNA.COM X 1969 MD TO SUPPORT, PROMOTE, AND ADVANCE THE MISSION OF THE NAVAL ACADEMY. 35 34 27 40 -38402 -38402 17496994 28702477 1257792 1444487 1913280 4325773 0 0 20668066 34472737 11741037 14740857 0 0 3712970 4168589 380266 373587 6356978 2932853 3665385 18767126 22948418 1900940 11524319 131098484 148778148 7716002 7362536 123382482 141415612 X TO SUPPORT, PROMOTE AND ADVANCE THE MISSION OF THE NAVAL ACADEMY BY WORKING IN CONJUNCTION WITH ACADEMY LEADERSHIP TO IDENTIFY STRATEGIC INSTITUTIONAL PRIORITIES AND BY RAISING, MANAGING AND DISBURSING PRIVATE GIFT FUNDS THAT PROVIDE A MARGIN OF EXCELLENCE IN SUPPORT OF THE NATION'S PREMIER LEADERSHIP INSTITUTION. THE MISSION STATEMENT OF THE RELATED ENTITY, THE U.S. NAVAL ACADEMY ALUMNI ASSOCIATION:TO SERVE AND SUPPORT THE UNITED STATES, THE NAVAL SERVICE, THE NAVAL ACADEMY AND ITS ALUMNI:BY FURTHERING THE HIGHEST STANDARDS AT THE NAVAL ACADEMY;BY SEEKING OUT, INFORMING, ENCOURAGING, AND ASSISTING OUTSTANDING, QUALIFIED YOUNG MEN AND WOMEN TO PURSUE CAREERS AS OFFICERS IN THE NAVY AND MARINE CORPS THROUGH THE NAVAL ACADEMY; ANDBY INITIATING AND SPONSORING ACTIVITIES WHICH WILL PERPETUATE THE HISTORY, TRADITIONS, MEMORIES AND GROWTH OF THE NAVAL ACADEMY AND BIND ALUMNI TOGETHER IN SUPPORT OF THE HIGHEST IDEALS OF COMMAND, CITIZENSHIP AND GOVERNMENT. 0 0 15164525 14740857 1444487 SUPPORT INCLUDED DIRECT AND INDIRECT SUPPORT FOR USNA ENDOWED POSITIONS AND PROGRAM SUPPORT FOR CYBER SECURITY, ATHLETIC EXCELLENCE, STEM, MINORITY OUTREACH, LEADERSHIP DEVELOPMENT AND INTERNATIONAL PROGRAMS. GRANTS TO USNA ALSO SUPPORTED THE WAR OF 1812 EXHIBIT, ADMISSIONS SUPPORT, THE ACADEMIC CENTER AND THE CENTER OF ETHICAL LEADERSHIP. GRANTS TO THE ALUMNI ASSOCIATION WERE IN SUPPORT OF OPERATIONS. 15164525 1 1 0 0 0 0 0 0 0 1 1 1 0 0 1 1 0 1 0 0 1 0 1 1 0 0 0 1 1 1 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 1 17 0 1 27 1 1 1 1 CJ 0 0 0 0 0 0 0 0 X 35 34 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 MD OH X X X HENRY J SANFORD CFO & TREASURER 4102954100 247 KING GEORGE STREET ANNAPOLIS MD 21402 X CHARLES S ABBOT 2.00 X 0 0 0 DANIEL AKERSON 2.00 X 0 0 0 RICHARD C ATKINSON 2.00 X 0 0 0 ROBERT C BELLAS JR 2.00 X 0 0 0 PHILIP M BILDEN 2.00 X 0 0 0 MICHAEL R BONSIGNORE 2.00 X 0 0 0 THOMAS C BRASCO 2.00 X 0 0 0 WESLEY BUSH 2.00 X 0 0 0 GEORGE CAMPBELL JR 2.00 X 0 0 0 PETER F DE VOS 2.00 X 0 0 0 THOMAS B FARGO 2.00 X 0 0 0 LOUIS J FREEH 2.00 X 0 0 0 CARLTON W FULFORD JR 2.00 X 0 0 0 CHARLES S GARBER JR 2.00 X 0 0 0 LINDA R GOODEN 2.00 X 0 0 0 ERIC P GRUBMAN 2.00 X 0 0 0 WALTER P HAVENSTEIN 2.00 X 0 0 0 JON M HUNTSMAN JR 2.00 X 0 0 0 JAY L JOHNSON 2.00 X 0 0 0 GREER O LAUTRUP 2.00 X 0 0 0 THOMAS C LYNCH 2.00 X 0 0 0 CORBIN A MCNEILL JR 2.00 X 0 0 0 RICHARD W MIES 2.00 X 0 0 0 JERROLD L MILLER 2.00 X 0 0 0 ROBERT J NATTER 2.00 X 0 0 0 C MICHAEL PETTERS 2.00 X 0 0 0 PAUL B PRAGER 2.00 X 0 0 0 JOHN R RYAN 2.00 X 0 0 0 KEVIN SHARER 2.00 X 0 0 0 ROGER T STAUBACH 2.00 X 0 0 0 TIMOTHY P SULLIVAN 2.00 X 0 0 0 J RONALD TERWILLIGER 2.00 X 0 0 0 ROGER E TETRAULT 2.00 X 0 0 0 DEBORAH L WINCE-SMITH 2.00 X 0 0 0 BYRON F MARCHANT 36.00 24.00 X X 305908 203939 24525 HENRY J SANFORD 33.00 27.00 X 137211 112264 13610 EDWARD WALLACE 50.00 X 151765 0 7868 WILLIAM O'CONNOR 50.00 X 189002 0 13791 HARRY YEISER 50.00 X 125660 0 6711 STEPHEN M MACONI 50.00 X 165337 0 9804 GERALDINE S FARMER 33.00 27.00 X 81822 66945 6711 EMILY PARKHURST 50.00 X 123659 0 12498 1280364 383148 95518 5 0 1 0 AFRC INC 208 PASSAIC AVE FAIRFIELD NJ 07000 FUNDRAISING CONSULTANT 379578 SAFEHOUSE PICTURES LLC 630 27TH ST SAN FRANCISCO CA 94131 VIDEO PRODUCERS 319556 GRENZEBACH GLIER & ASSOCIATES INC PO BOX 88277 DEPT A CHICAGO IL 60680 FUNDRAISING CONSULTANT 254267 TIFF ADVISORY SERVICES 200 BARR HARBOR DR SUITE 100 WEST CONSHOHOCKEN PA 19428 INVESTMENT ADVISORS 244007 SIGNCRAFT ANNAPOLIS LLP 2012 RENARD CT SUITE O ANNAPOLIS MD 21401 GRAPHIC DESIGN 201194 7 28702477 6718920 28702477 FUND ADMIN. FEE 900099 1389197 1389197 MISCELLANEOUS FEES & S 900099 55290 55290 1444487 1735127 -38402 1773529 32748203 30157557 2590646 2590646 2590646 34472737 1444487 -38402 4364175 14170510 14170510 486296 486296 84051 84051 964852 71792 171182 721878 2612821 192355 464085 1956381 93139 6876 16538 69725 261603 19277 46462 195864 236174 17435 41937 176802 17423 1286 3094 13043 70372 70372 373587 373587 337482 337482 549256 40526 97478 411252 168116 12411 29852 125853 79983 5905 14202 59876 182454 13469 32398 136587 80051 5910 14214 59927 254682 18801 45223 190658 35235 2601 6257 26377 BAD DEBT 1686808 1686808 DONOR CULTIVATION 151020 11149 26816 113055 MISCELLANEOUS 19757 1457 3508 14792 TRAINING 19013 1404 3376 14233 13733 1014 2439 10280 22948418 15164525 1426915 6356978 2103200 1555308 20409224 25759335 129635 10092 92120 99238 5429720 2373737 3232388 3055983 82674811 26335544 19733907 89071447 2723199 2891201 131098484 148778148 288845 266538 4529 7190 7422628 7088808 7716002 7362536 X 8038177 9655269 78253262 93317147 37091043 38443196 123382482 141415612 131098484 148778148 X 11524319 5583485 925326 X X 0 1 X 1 0 X 21522640 23160909 15463471 17496994 28702477 106346491 21522640 23160909 15463471 17496994 28702477 106346491 106346491 1945473 2135048 2841049 1045896 1735127 9702593 116049084 6134796 0.91640 0.90300 X RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED RESTRICTED 78391286 1380798 7026166 2506968 84291282 80326494 176196 420654 2532058 78391286 69729801 6637 11752074 1162018 80326494 62273792 2088909 7252647 1885547 69729801 87085212 -13647765 -10068997 1094658 62273792 0.72060 0.27940 0 1 1 644316 644316 4081933 1844820 2237113 703471 528917 174554 3055983 INVESTMENTS IN PARTNERSHIPS, HEDGE FUNDS, OTHER 21280219 F TIFF MULTI-ASSET FUND 67791228 F 89071447 SPLIT INTEREST AGREEMENTS 5264848 INTERCOMPANY PAYABLE 1823960 7088808 X 51074960 5583485 463707 11877346 17924538 33150422 337482 984833 1322315 34472737 29537620 463707 7447810 7911517 21626103 337482 984833 1322315 22948418 DESCRIPTION OF INTENDED USE OF ENDOWMENT FUNDS: PART V, LINE 4: THE ENDOWMENT CONSISTS OF APPROXIMATELY 72 INDIVIDUAL FUNDS ESTABLISHED FOR A VARIETY OF PURPOSES. THESE ENDOWMENT FUNDS ARE DONOR-RESTRICTED. THE FOUNDATION DOES NOT HAVE ANY BOARD-DESIGNATED ENDOWMENT FUNDS. AS REQUIRED BY GENERALLY ACCEPTED ACCOUNTING PRINCIPLES, NET ASSETS ASSOCIATED WITH ENDOWMENT FUNDS ARE CLASSIFIED AND REPORTED BASED ON THE EXISTENCE OR ABSENCE OF DONOR-IMPOSED RESTRICTIONS. DESCRIPTION OF UNCERTAIN TAX POSITIONS UNDER FIN 48: PART X, LINE 2: THE ASSOCIATIONS HAVE ADOPTED THE ACCOUNTING 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 POLICY, THE ASSOCIATIONS MAY RECOGNIZE THE TAX BENEFIT FROM AN UNCERTAIN TAX POSITION ONLY IF IT IS MORE-LIKELY-THAN-NOT THAT THE TAX POSITION WOULD BE SUSTAINED ON EXAMINATION BY TAXING AUTHORITIES, BASED ON THE TECHNICAL MERITS OF THE POSITION. MANAGEMENT HAS EVALUATED THE ASSOCIATIONS' TAX POSITIONS AND HAS CONCLUDED THAT THE ASSOCIATIONS HAVE TAKEN NO UNCERTAIN TAX POSITIONS THAT REQUIRE ADJUSTMENT TO THE CONSOLIDATED FINANCIAL STATEMENTS TO COMPLY WITH PROVISIONS OF THIS GUIDANCE. AS OF JUNE 30, 2013 AND 2012, THERE ARE NO MATERIAL UNRECOGNIZED/DERECOGNIZED TAX BENEFITS OR TAX PENALTIES OR INTEREST. THE ASSOCIATIONS ARE NO LONGER SUBJECT TO U.S. FEDERAL, STATE OR LOCAL TAX EXAMINATIONS BY TAX AUTHORITIES FOR YEARS ENDED BEFORE JUNE 30, 2010. PART XI, LINE 2D - OTHER ADJUSTMENTS: CHANGE IN VALUE OF SPLIT INTEREST AGREEMENTS 925,326. REVENUE OF AFFILIATE INCLUDED ON CONSOLIDATED FINANCIAL STATEMENTS 10,952,020. PART XI, LINE 4B - OTHER ADJUSTMENTS: GRANT TO NAVAL ACADEMY ALUMNI ASSOCIATION 984,833. PART XII, LINE 2D - OTHER ADJUSTMENTS: EXPENSES OF AFFILIATE INCLUDED ON CONSOLIDATED FINANCIAL STATEMENTS 7,447,810. PART XII, LINE 4B - OTHER ADJUSTMENTS: GRANT TO NAVAL ACADEMY ALUMNI ASSOCIATION 984,833. 1 EUROPE 0 0 PROGRAM SERVICES & GRANTMAKING SCHOLARSHIPS 84051 CENTRAL AMERICA AND THE CARIBBEAN 0 0 INVESTMENTS 7399951 0 0 0 0 0 0 7484002 0 7484002 SCHOLARSHIP EUROPE 3 84051 FOREIGN DRAFT 1 0 0 1 0 0 PROCEDURE FOR MONITORING GRANTS OUTSIDE THE U.S.: SCHEDULE F, PART I, LINE 2: THE U.S. NAVAL ACADEMY DETERMINES WHO RECEIVES THE SCHOLARSHIP FUNDS. THE U.S. NAVAL ACADEMY FOUNDATION VERIFIES THAT THE SCHOLAR AND THEIR CHOICE OF HIGHER LEARNING ARE APPROPRIATE BASED ON THE U.S. NAVAL ACADEMY'S SCHOLAR SELECTION PROCESS. THE FUNDS ARE THEN TRANSFERRED DIRECTLY TO THE INSTITUTION OF HIGHER LEARNING. X X X X X 1 ADVANTAGE CONSULTING 2500 PASEO VERDE PARKWAY HENDERSON NV 89074 SOLICITATION 0 2100728 373587 1727141 2100728 373587 1727141 MD OH 1 US NAVAL ACADEMY ALUMNI ASSOCIATION INC 247 KING GEORGE STREET ANNAPOLIS MD 21402 520548411 501(C)(3) 1246233 GENERAL SUPPORT US NAVAL ACADEMY 121 BLAKE ROAD ANNAPOLIS MD 21402 311575142 12924277 GENERAL SUPPORT 2 0 SCHOLARSHIP SUPPORT 50 486296 PROCEDURE FOR MONITORING GRANTS IN THE U.S.: PART I, LINE 2: SCHEDULE I, PART I, LINE 2: THE FOUNDATION KEEPS DETAILED RECORDS OF GRANTS TO THE U.S. NAVAL ACADEMY ALUMNI ASSOCIATION AND THE U.S. NAVAL ACADEMY. ALL GRANTS ARE REVIEWED BY MANAGEMENT PRIOR TO PAYMENT. THE GRANT TO THE U.S. NAVAL ACADEMY ALUMNI ASSOCIATION IS BUDGETED FOR AND APPROVED BY THE BOARD OF DIRECTORS. THE UNRESTRICTED PORTION OF THE GRANT TO THE U.S. NAVAL ACADEMY IS BUDGETED FOR AND APPROVED BY THE BOARD OF DIRECTORS. ALL OTHER GRANTS TO THE U.S. NAVAL ACADEMY ARE BASED ON DONOR DIRECTION OF THEIR RESTRICTED GIFTS. THE FOUNDATION HAS ELECTED TO DISCLOSE THE JOINTLY ADMINISTERED SCHOLARSHIP PROGRAM FOR INCREASED TRANSPARENCY. X X X X X 0 1 0 0 0 0 0 0 0 BYRON F MARCHANT 192000 128000 28800 19200 85108 56739 7500 5000 7215 4810 320623 213749 20100 13400 HENRY J SANFORD 93445 76455 16793 13739 26973 22070 4672 3823 2813 2302 144696 118389 0 0 EDWARD WALLACE 125000 0 17235 0 9530 0 6250 0 1618 0 159633 0 0 0 WILLIAM O'CONNOR 163461 0 25000 0 541 0 0 0 13791 0 202793 0 0 0 STEPHEN M MACONI 148250 0 14826 0 2261 0 7412 0 2392 0 175141 0 0 0 GERALDINE S FARMER 63278 51773 5524 4520 13020 10652 3174 2597 517 423 85513 69965 0 0 PART I, LINE 4B BYRON MARCHANT AND HENRY SANFORD PARTICIPATE IN A SUPPLEMENTAL NONQUALIFIED RETIREMENT PLAN (457F AND 457B). $108,602 VESTED IN 2012 FOR BYRON MARCHANT AND THAT AMOUNT IS INCLUDED IN HIS W-2 COMPENSATION. SUPPLEMENTAL INFORMATION PART III BYRON MARCHANT'S W-2 INCOME INCLUDES DEFERRED COMPENSATION THAT VESTED IN 2012 AND MUST BE REPORTED AS INCOME IN THE YEAR IT VESTS. $33,500 OF THE DEFERRED COMPENSATION WAS REPORTED AS NONTAXABLE DEFERRED COMPENSATION ON THE 2011 FORM 990 AND IS REPORTED IN SCHEDULE J, PART II, COLUMN F. PART I, LINE 3: THE WRITTEN EMPLOYMENT CONTRACT IS AN INTERNAL CONTRACT ONLY. X 1837 FAIR MARKET VALUE X 1716 FAIR MARKET VALUE X 136 2625255 FAIR MARKET VALUE X SOFTWARE 1 4050112 FAIR MARKET VALUE X EQUIPMENT 1 40000 FAIR MARKET VALUE 0 1 0 FORM 990, PART VI, SECTION B, LINE 11 THE FORM 990 WAS REVIEWED BY MANAGEMENT AND MEMBERS OF THE JOINT FINANCE AND AUDIT COMMITTEE OF U.S. NAVAL ACADEMY ALUMNI ASSOCIATION AND U.S. NAVAL ACADEMY FOUNDATION WITH OUR TAX PREPARERS AND SENT TO MEMBERS OF THE BOARD OF DIRECTORS AND TO THE IRS. FORM 990, PART VI, SECTION B, LINE 12C THE CONFLICT OF INTEREST POLICY IS SENT TO EACH BOARD/TRUSTEE MEMBER AT THE BEGINNING OF THE CALENDAR YEAR WITH A SELF ADDRESSED ENVELOPE FOR RESPONDING. THE POLICY DETAILS POTENTIAL CONFLICTS OF INTEREST AND THE NEED TO DISCLOSE SUCH CONFLICTS. THE POLICY ALSO DEFINES THE BOARD/TRUSTEE'S MEMBER FIDUCIARY OBLIGATION TO THE ORGANIZATION. ALL CONFLICTS OF INTEREST STATEMENTS ARE RETURNED TO THE BOARD SECRETARY'S OFFICE AND KEPT ON FILE. THE COMPLETED SIGNED CONFLICTS OF INTEREST STATEMENTS ARE REVIEWED BY THE ORGANIZATION'S AUDIT FIRM DURING THE ANNUAL AUDIT FOR COMPLETENESS AND TO ENSURE THAT ALL BOARD/TRUSTEE MEMBERS ARE INCLUDED. UPON A DETERMINATION THAT A CONFLICT EXISTS, THE BOARD SHALL APPOINT A DISINTERESTED PERSON OR COMMITTEE TO INVESTIGATE ALTERNATIVES TO THE PROPOSED TRANSACTION OR ARRANGEMENT TO WHICH THE CONFLICT RELATES. AFTER EXERCISING THIS DUE DILIGENCE, THE BOARD SHALL DETERMINE WHETHER THE FOUNDATION CAN OBTAIN WITH REASONABLE EFFORTS A MORE ADVANTAGEOUS TRANSACTION FROM A SOURCE THAT WOULD NOT GIVE RISE TO A CONFLICT. IF A MORE ADVANTAGEOUS TRANSACTION WHICH WOULD NOT CREATE A CONFLICT IS NOT REASONABLY POSSIBLE, THE BOARD SHALL DETERMINE BY A MAJORITY VOTE OF THE DISINTERESTED DIRECTORS WHETHER THE TRANSACTION OR ARRANGEMENT IS FAIR, REASONABLE AND IN THE FOUNDATION'S BEST INTERESTS. IN CONFORMITY WITH THE ABOVE DETERMINATION, THE BOARD SHALL MAKE ITS DECISION AS TO WHETHER TO ENTER INTO THE TRANSACTION OR ARRANGEMENT. FORM 990, PART VI, SECTION B, LINE 15 THE PROCESS FOR DETERMINING COMPENSATION OF THE CEO, OTHER OFFICERS AND KEY EMPLOYEES OF THE ORGANIZATION "INCLUDES A REVIEW AND APPROVAL BY INDEPENDENT PERSONS, COMPARABILITY DATA, AND CONTEMPORANEOUS SUBSTANTIATION OF THE DELIBERATION AND DECISION." SPECIFICALLY, THE ORGANIZATION TAKES ALL OF THE STEPS NECESSARY TO ENSURE THAT THE COMPENSATION PACKAGES OF THESE INDIVIDUALS ARE NOT ONLY REASONABLE AND COMPETITIVE, BUT ARE DESIGNED AND DETERMINED IN THE PRECISE MANNER SPECIFIED IN THE INTERNAL REVENUE SERVICE'S "INTERMEDIATE SANCTIONS" REGULATIONS. THE PROCESS FOR DETERMINING THE COMPENSATION PACKAGES OF THESE INDIVIDUALS IS AS FOLLOWS: 1. A BOARD COMPENSATION COMMITTEE IS CONSTITUTED THAT IS COMPOSED ENTIRELY OF TRUSTEES MEETING A STRICT "NO CONFLICTS" INDEPENDENCE TEST SET FORTH IN THE IRS REGULATIONS. 2. THE COMMITTEE ACQUIRES APPROPRIATE, INDEPENDENT MARKET COMPARABILITY DATA FROM ITS PROFESSIONAL COMPENSATION CONSULTANT. 3. THE COMMITTEE REVIEWS THIS COMPARABILITY DATA IN DETAIL, POSING APPROPRIATE QUESTIONS TO ITS PROFESSIONAL COMPENSATION CONSULTANT. 4. THE COMMITTEE REVIEWS THE QUALIFICATIONS, EXPERIENCE AND PERFORMANCE OF EACH OF THE INDIVIDUALS AGAINST THE COMPARABILITY DATA ACQUIRED FROM THE PROFESSIONAL COMPENSATION CONSULTANT. 5. THE COMMITTEE DESIGNS A PROPOSED COMPENSATION PACKAGE FOR EACH OF THE INDIVIDUALS AND SEEKS A WRITTEN OPINION FROM THE PROFESSIONAL COMPENSATION CONSULTANT THAT THE PROPOSED COMPENSATION PACKAGE IS REASONABLE. (THE COMMITTEE MAKES ANY ADJUSTMENTS TO THE PROPOSAL REQUIRED IN ORDER FOR THE PROFESSIONAL COMPENSATION CONSULTANT TO CONCLUDE THAT THE PACKAGE IS REASONABLE.) 6. THE COMMITTEE MEMORIALIZES ALL OF ITS DELIBERATIONS IN DETAILED COMMITTEE MINUTES THAT ARE REVIEWED, CORRECTED IF NECESSARY, AND APPROVED AT ITS NEXT FOLLOWING MEETING. 7. THE COMMITTEE ACQUIRES AN OPINION OF COUNSEL CONCLUDING THAT THE PROCESS FOLLOWED BY THE COMMITTEE MEETS THE REQUIREMENTS OF THE IRS REGULATIONS. 8. THE COMMITTEE REGULARLY REVIEWS ITS PROCESS TO ENSURE THAT IT CONTINUES TO MEET ALL OF THE REQUIREMENTS OF APPLICABLE LAW. FORM 990, PART VI, SECTION C, LINE 19 THE ORGANIZATION MAKES ALL NECESSARY AND REQUIRED GOVERNING DOCUMENTS, CONFLICTS OF INTEREST POLICIES, FINANCIAL STATEMENTS, FORM 990S AND ANNUAL REPORT AVAILABLE ON ITS WEBSITE: WWW.USNA.COM. FORM 990, PART VII, LINE 1A, COLUMN B SEVERAL OFFICERS OF THE U.S. NAVAL ACADEMY FOUNDATION ARE DUALLY EMPLOYED BY A RELATED ORGANIZATION, THE U.S. NAVAL ACADEMY ALUMNI ASSOCIATION. HOURS DEVOTED TO THE ALUMNI ASSOCIATION ARE LISTED BELOW FOR THE OFFICERS INVOLVED IN BOTH ORGANIZATIONS: OFFICER HOURS PER WEEK DEVOTED TO ALUMNI ASSOCIATION BYRON F. MARCHANT 24 HENRY J. SANFORD 27 GERALDINE S. FARMER 27 CHANGES IN NET ASSETS OR FUND BALANCES: FORM 990, PART XI, LINE 9: CHANGE IN SPLIT INTEREST AGREEMENTS 925,326. 990, PART XI, QUESTION 2B - AUDITED FINANCIAL STATEMENTS FOR GAAP PURPOSES, THE ORGANIZATION PRESENTS ITS ACTIVITY IN A CONSOLIDATED FORMAT WITH ITS RELATED ENTITY , THE U.S. NAVAL ACADEMY ALUMNI ASSOCIATION. THESE CONSOLIDATED FINANCIAL STATEMENTS ARE AUDITED BY INDEPENDENT AUDITORS. THE GAAP FINANCIAL STATEMENTS INCLUDE SUPPLEMENTARY INFORMATION THAT PRESENTS THE FINANCIAL POSITION AND THE CHANGES IN NET ASSETS OF THE FOUNDATION. FORM 990, PART I, LINE 5 AND FORM 990, PART V, LINE 2A THE U.S. NAVAL ACADEMY ALUMNI ASSOCIATION (A RELATED ORGANIZATION) IS THE PAYMASTER FOR BOTH THE ASSOCIATION AND THE U.S. NAVAL ACADEMY FOUNDATION. DUE TO THE ASSOCIATION'S ROLE AS PAYMASTER FOR BOTH ORGANIZATIONS, THE ASSOCIATION REPORTS BOTH ASSOCIATION AND FOUNDATION EMPLOYEES FOR W-3 PURPOSES. THE ASSOCIATION FILES ALL RELATED EMPLOYMENT TAX FORMS. ALL PAYROLL EXPENSES RELATED TO THE FOUNDATION ARE RECORDED AS A RECEIVABLE TO THE ASSOCIATION AND A PAYABLE FROM THE FOUNDATION. THE 27 FOUNDATION EMPLOYEES ARE REPORTED ON PART I, LINE 5 AND PART V, LINE 2A EVEN THOUGH THE FOUNDATION DOES NOT FILE A FORM W-3. FORM 990, PART VII, SECTION A AND PART VII, SECTION B ALL INFORMATION REPORTED ON THIS 2012 FORM 990 IS REPORTED ON A FISCAL YEAR BEGINNING JULY 1, 2012 AND ENDING JUNE 30, 2013, WITH THE EXCEPTION OF INFORMATION THAT IS REPORTED FOR COMPENSATION ON SCHEDULE J AND PART VII OF THE RETURN. COMPENSATION LISTED ON THESE SCHEDULES IS BASED ON CALENDAR YEAR REPORTED COMPENSATION (PER THE 990 INSTRUCTIONS) FOR THE CALENDAR YEAR JANUARY 1, 2012 AND ENDING DECEMBER 31, 2012. US NAVAL ACADEMY ALUMNI ASSOCIATION INC 247 KING GEORGE STREET ANNAPOLIS MD 21402 520548411 SUPPORT OF U.S. NAVAL ACADEMY & ALUMNI MD 501(C)(3) 9 N/A 0 0 1 0 1 1 0 0 0 1 0 0 1 1 1 1 1 1 1 1