2014-05-14T09:01:46-05:00 2013-12-31 420714325 MCGLADREY LLP 1861 INTERNATIONAL DRIVE SUITE 400 MCLEAN VA 22102 990 2013-01-01 237211935 FINANCIAL ACCOUNTING FOUNDATION FINA 2038470700 401 MERRITT 7 PO BOX 5116 NORWALK CT 06856 TERESA S POLLEY PRESIDENT AND CEO 2038470700 2014-05-14 1 JAMES P SWEENEY CPA P01263012 7033366400 2013 2015-11-30 17:44:51Z TERESA S POLLEY 401 MERRITT 7 PO BOX 5116 NORWALK CT 06856 56339346 0 X ACCOUNTINGFOUNDATION.ORG,FASB.ORG,GASB.ORG X 1972 DE THE MISSION OF THE FINANCIAL ACCOUNTING FOUNDATION (FAF) IS TO ESTABLISH FINANCIAL ACCOUNTING AND REPORTING STANDARDS, THROUGH AN INDEPENDENT AND OPEN PROCESS, RESULTING IN FINANCIAL REPORTS THAT PROVIDE DECISION-USEFUL INFORMATION. THE FAF, ORGANIZED IN 1972, IS THE INDEPENDENT, PRIVATE-SECTOR ORGANIZATION WITH RESPONSIBILITY FOR THE OVERSIGHT, ADMINISTRATION, AND FINANCES OF THE FINANCIAL ACCOUNTING STANDARDS BOARD (FASB), THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB), AND THEIR ADVISORY COUNCILS, THE FINANCIAL ACCOUNTING STANDARDS ADVISORY COUNCIL (FASAC) AND THE GOVERNMENTAL ACCOUNTING STANDARDS ADVISORY COUNCIL (GASAC), ALL OF WHICH WERE ESTABLISHED TO PERFORM DISTINCT FUNCTIONS IN THE PROCESS OF ESTABLISHING AND IMPROVING FINANCIAL ACCOUNTING AND REPORTING STANDARDS. 17 15 184 0 0 0 0 0 0 0 1125678 931040 51420149 52829425 52545827 53760465 0 0 0 0 35539041 36611504 0 0 0 9569541 13309263 45108582 49920767 7437245 3839698 91141745 99080044 15396364 15275322 75745381 83804722 X ESTABLISH AND IMPROVE FINANCIAL ACCOUNTING AND REPORTING STANDARDS, THROUGH AN INDEPENDENT AND OPEN PROCESS, RESULTING IN FINANCIAL REPORTS THAT PROVIDE DECISION-USEFUL INFORMATION. 0 0 32763005 41180960 FINANCIAL ACCOUNTING STANDARDS BOARD (FASB)FINANCIAL ACCOUNTING STANDARDS ADVISORY COUNCIL (FASAC)THE FASB IS THE PRIVATE-SECTOR BOARD WITHIN THE FINANCIAL ACCOUNTING FOUNDATION (FAF) RESPONSIBLE FOR SETTING ACCOUNTING STANDARDS FOR NONGOVERNMENTAL ENTITIES IN THE UNITED STATES; THOSE STANDARDS ARE OFTEN REFERRED TO AS U.S. GAAP. THE MISSION OF THE FASB IS TO ESTABLISH AND IMPROVE STANDARDS OF FINANCIAL ACCOUNTING AND REPORTING THAT FOSTER FINANCIAL REPORTING BY NONGOVERNMENTAL ENTITIES THAT PROVIDES DECISION-USEFUL INFORMATION TO INVESTORS AND OTHER USERS OF FINANCIAL REPORTS. THAT MISSION IS ACCOMPLISHED THROUGH A COMPREHENSIVE AND INDEPENDENT PROCESS THAT ENCOURAGES BROAD PARTICIPATION, OBJECTIVELY CONSIDERS ALL STAKEHOLDER VIEWS, AND IS SUBJECT TO OVERSIGHT BY THE FAF'S BOARD OF TRUSTEES. THE FASB BELIEVES THAT BY FAITHFULLY IMPLEMENTING U.S. GAAP, ENTITIES WILL PRODUCE FINANCIAL REPORTS THAT PROVIDE USEFUL INFORMATION TO INVESTORS, CREDITORS, AND OTHER PROVIDERS OF CAPITAL. IN 2013, THE FASB CELEBRATED ITS 40TH YEAR AS THE STEWARD OF U.S. GAAP. IN 2013, THE FASB'S EFFORTS WERE PRIMARILY FOCUSED IN THREE AREAS:IMPROVING U.S. GAAP WHILE FOSTERING THE INTERNATIONAL CONVERGENCE OF ACCOUNTING STANDARDS, PRIMARILY THROUGH JOINT STANDARDS SETTING PROJECTS WITH THE INTERNATIONAL ACCOUNTING STANDARDS BOARD (IASB);IMPROVING AND SIMPLIFYING U.S. ACCOUNTING STANDARDS FOR PRIVATE COMPANIES; REDUCING THE COMPLEXITY OF FINANCIAL REPORTING FOR ALL ENTITIES.IMPROVING U.S. GAAP WHILE FOSTERING CONVERGENCE- -THE FASB AND IASB CONTINUED WORK ON THE REMAINING FOUR JOINT PROJECTS - FINANCIAL INSTRUMENTS, REVENUE RECOGNITION, LEASING, AND INSURANCE CONTRACTS, REACHING SEVERAL KEY PROJECT MILESTONES. -THE FASB ISSUED AN EXPOSURE DRAFT TO SOLICIT FEEDBACK ON A SUBSTANTIALLY CONVERGED APPROACH TO THE CLASSIFICATION AND MEASUREMENT OF FINANCIAL INSTRUMENTS. THE FASB AND IASB RECONSIDERED THAT PROPOSAL THROUGHOUT 2013 IN THE LIGHT OF FEEDBACK RECEIVED. -THE FASB CONTINUED ITS EFFORTS TO IMPROVE AND CONVERGE THE ACCOUNTING FOR THE IMPAIRMENT OF FINANCIAL ASSETS THROUGHOUT 2013, CONSIDERING FEEDBACK RECEIVED ON A LATE 2012 EXPOSURE DRAFT. -THE FASB AND THE IASB ISSUED A REVISED EXPOSURE DRAFT ON THE ACCOUNTING FOR LEASING AND BEGAN TO RECONSIDER THE FEEDBACK RECEIVED THROUGH COMMENT LETTERS AND PUBLIC OUTREACH. -THE FASB ISSUED AN EXPOSURE DRAFT ON THE ACCOUNTING FOR INSURANCE CONTRACTS THAT PROPOSED TO CONVERGE WITH MANY ASPECTS OF AN IASB PROPOSAL. THE FASB IS CURRENTLY DISCUSSING THE FEEDBACK RECEIVED ON THIS PROPOSAL. -THE FASB AND THE IASB SUBSTANTIALLY COMPLETED DISCUSSIONS OF A JOINT STANDARD ON REVENUE RECOGNITION AND BEGAN DRAFTING A CONVERGED STANDARD FOR ISSUANCE IN 2014. THE FASB EXPECTS TO SUBSTANTIALLY CONCLUDE ITS JOINT WORK PROGRAM IN 2014. GOING FORWARD, THE FASB WILL CONTINUE ITS EFFORTS TO FOSTER CONVERGENCE THOUGH OTHER MEANS, IN PARTICULAR, BY ESTABLISHING RELATIONSHIPS WITH OTHER NATIONAL STANDARDS SETTERS AS WELL AS THE IASB. IN 2013, THE FASB BECAME A MEMBER OF THE IASB'S NEWLY FORMED ACCOUNTING STANDARDS ADVISORY FORUM (ASAF), A FORUM WHICH ALLOWS FASB REPRESENTATIVES TO PROVIDE U.S. INPUT INTO THE DEVELOPMENT OF IFRS. IT ALSO GIVES US A VALUABLE OPPORTUNITY TO COLLABORATE WITH OTHER NATIONAL STANDARD SETTERS TO DEVELOP HIGH QUALITY STANDARDS, BOTH AT THE GLOBAL AND NATIONAL LEVEL. IN ADDITION TO THOSE CONVERGENCE-RELATED ACTIVITIES, THE FASB COMPLETED A VARIETY OF PROJECTS TO IMPROVE ASPECTS OF U.S. GAAP, ISSUING 13 FINAL ACCOUNTING STANDARDS UPDATES (ASUS).IMPROVING AND SIMPLIFYING U.S. ACCOUNTING STANDARDS FOR PRIVATE COMPANIES-2013 MARKS THE FIRST FULL YEAR OF OPERATIONS FOR THE PRIVATE COMPANY COUNCIL (PCC), ESTABLISHED TO STRENGTHEN THE PROCESS FOR IDENTIFYING AND CONSIDERING THE NEEDS OF PRIVATE COMPANY USERS OF FINANCIAL STATEMENTS IN THE STANDARDS DEVELOPMENT PROCESS. HIGHLIGHTS FROM 2013 INCLUDE: -THE FASB AND PCC JOINTLY COMPLETED AND ISSUED THE PRIVATE COMPANY DECISION-MAKING FRAMEWORK: A GUIDE FOR EVALUATING FINANCIAL ACCOUNTING AND REPORTING FOR PRIVATE COMPANIES (GUIDE). THE GUIDE IS A TOOL TO HELP THE PCC AND FASB CONSISTENTLY IDENTIFY AND EVALUATE THE NEED FOR EXCEPTIONS OR FINANCIAL ACCOUNTING ALTERNATIVES FOR PRIVATE COMPANIES. -THE PCC ESTABLISHED ITS INITIAL AGENDA, DECIDING TO FOCUS ON THE ACCOUNTING FOR GOODWILL IN A BUSINESS COMBINATION, CONSOLIDATION OF RELATED PARTY VARIABLE INTEREST ENTITIES, AND THE ACCOUNTING FOR PLAIN VANILLA INTEREST RATE SWAPS. THE PCC REACHED CONCLUSIONS ABOUT RECOMMENDED CHANGES IN EACH OF THOSE AREAS; THE FASB ENDORSED THOSE RECOMMENDATIONS AND ISSUED PROPOSALS FOR PUBLIC COMMENT IN MID-2013. THE PCC AND FASB ARE CONSIDERING THAT FEEDBACK. -THE FASB ALSO ISSUED ASU NO. 2013-12, DEFINITION OF A PUBLIC BUSINESS ENTITY: AN ADDITION TO THE MASTER GLOSSARY, TO CLARIFY THE COMPANIES THAT WILL BE ELIGIBLE TO USE EXCEPTIONS OR ALTERNATIVES PROVIDED FOR PRIVATE COMPANIES. -THE FASB DEVELOPED AND ISSUED GUIDANCE CLARIFYING WHICH PRIVATE COMPANIES AND NOT-FOR-PROFIT ORGANIZATIONS WERE ELIGIBLE TO USE A FAIR VALUE DISCLOSURE EXEMPTION REDUCING THE COMPLEXITY OF FINANCIAL REPORTING FOR ALL ENTITIES-IN RESPONSE TO CONCERNS ABOUT REPORTING COMPLEXITY ARISING FROM SO-CALLED "DISCLOSURE OVERLOAD," THE FASB ADDED A PROJECT TO IMPROVE THE EFFECTIVENESS OF DISCLOSURES IN NOTES TO FINANCIAL STATEMENTS. IN 2013, THE FASB SUBSTANTIALLY COMPLETED WORK ON A PROPOSED CONCEPTS STATEMENT-CONCEPTUAL FRAMEWORK FOR FINANCIAL REPORTING: CHAPTER 8 NOTES TO FINANCIAL STATEMENTS (COMPLETED AND ISSUED FOR COMMENT IN MARCH 2014). THE PROPOSED FRAMEWORK WOULD GUIDE THE FASB IN MAKING DECISIONS ABOUT FUTURE DISCLOSURE REQUIREMENTS. THE FASB ALSO HAS BEEN DEVELOPING A FRAMEWORK TO HELP PREPARERS OF FINANCIAL STATEMENTS MAKE DECISIONS ABOUT WHAT INFORMATION TO INCLUDE IN NOTES TO FINANCIAL STATEMENTS. IN LATE 2013, THE FASB BEGAN TESTING THOSE PROPOSALS WITH SELECTED COMPANIES.THE FASB ALSO INITIATED A RESEARCH EFFORT TO IDENTIFY SPECIFIC PROVISIONS WITHIN U.S. GAAP THAT COULD BE SIMPLIFIED WITHOUT SIGNIFICANTLY IMPACTING THE QUALITY OF REPORTED FINANCIAL INFORMATION. THE FASB EXPECTS TO CONSIDER THE OUTCOME OF THAT RESEARCH IN 2014.OTHER ACTIVITIESTHE FAF, THE FASB AND GASB LAUNCHED IN 2013 UPDATED WEBSITES THAT FEATURE MORE USER-FRIENDLY NAVIGATION AND "PLAIN ENGLISH" ACCOUNTING, FINANCIAL REPORTING AND OTHER RELATED RESOURCES AT WWW.ACCOUNTINGFOUNDATION.ORG, WWW.FASB.ORG AND WWW.GASB.ORG.THE FASB IS RESPONSIBLE FOR THE ONGOING MAINTENANCE OF THE U.S. GAAP FINANCIAL REPORTING TAXONOMY (UGT) WHICH IS A LIST OF COMPUTER-READABLE TAGS IN XBRL, OR EXTENSIBLE BUSINESS REPORTING LANGUAGE, WHICH IS AN XML STANDARD FOR TAGGING BUSINESS AND FINANCIAL REPORTS TO INCREASE THE TRANSPARENCY AND ACCESSIBILITY OF BUSINESS INFORMATION BY USING A UNIFORM FORMAT. IN 2013, THE FASB LAUNCHED XBRL IMPLEMENTATION GUIDES TO PROVIDE PREPARERS WITH ADDITIONAL INSIGHT AND SUPPLEMENTAL GUIDANCE FOR UTILIZING THE UGT AS THEY CREATE THEIR XBRL DOCUMENTS. IN 2013, THE FASB ISSUED AN INVITATION TO COMMENT ON WAYS TO IMPROVE U.S. GAAP FINANCIAL REPORTING TAXONOMY CALCULATION HIERARCHY. THE XBRL STAFF ALSO DEVELOPED AND ISSUED A NUMBER OF NONAUTHORITATIVE XBRL IMPLEMENTATION AND REFERENCE GUIDES FOR SEVERAL TOPICAL AREAS TO HELP PREPARERS UNDERSTAND AND USE THE TAXONOMY. THE FAF ESTABLISHED A FORMAL POST-IMPLEMENTATION REVIEW (PIR) FUNCTION TO FORMALIZE THE PROCESS OF REVIEWING THE EFFECTIVENESS OF SIGNIFICANT STANDARDS THAT HAVE BEEN IN PLACE FOR AT LEAST TWO YEARS. IN 2013, THE PIR TEAM COMPLETED REPORTS ON FASB STATEMENT NO. 141(R), BUSINESS COMBINATIONS AND FASB STATEMENT NO. 109, ACCOUNTING FOR INCOME TAXES. THE PIR TEAM ALSO ISSUED ITS REPORT IN MARCH 2014 ON FASB STATEMENT NO. 157, FAIR VALUE MEASUREMENTS.THE FASAC COMPRISES 35 MEMBERS WHO REPRESENT A BROAD CROSS-SECTION OF THE FASB'S STAKEHOLDERS. THE PRIMARY FUNCTION OF FASAC IS TO ADVISE THE FASB ON ISSUES RELATED TO PROJECTS ON THE FASB'S AGENDA, POSSIBLE NEW AGENDA ITEMS, PROJECT PRIORITIES, PROCEDURAL MATTERS THAT MAY REQUIRE THE ATTENTION OF THE FASB, AND OTHER MATTERS AS REQUESTED. FASAC MEETINGS PROVIDE THE FASB WITH AN OPPORTUNITY TO OBTAIN AND DISCUSS THE VIEWS OF A VERY DIVERSE GROUP OF INDIVIDUALS FROM VARIED BUSINESS AND PROFESSIONAL BACKGROUNDS.FASAC MET FOUR TIMES IN 2013 WITH MEMBERS OF THE FASB, PROVIDING INPUT AND ADVICE ON A VARIETY OF BOTH TECHNICAL AND STRATEGIC ISSUES. THE FASAC CHAIRMAN PRESENTED TO THE FASB A VARIETY OF RECOMMENDATIONS FOR IMPROVING THE OPERATIONS AND EFFECTIVENESS OF FASB'S VARIOUS ADVISORY COMMITTEES. THE FASB IMPLEMENTED THOSE RECOMMENDATIONS IN THE FIRST HALF OF 2013. 7500813 9097725 GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)GOVERNMENTAL ACCOUNTING STANDARDS ADVISORY COUNCIL (GASAC)THE GASB IS THE PRIVATE-SECTOR BOARD WITHIN THE FAF RESPONSIBLE FOR SETTING ACCOUNTING AND FINANCIAL REPORTING STANDARDS FOR STATE AND LOCAL GOVERNMENTS. THE GASB ESTABLISHES ACCOUNTING AND REPORTING STANDARDS THAT RESULT IN THE COMMUNICATION OF DECISION-USEFUL INFORMATION AND THAT FACILITATE PUBLIC ACCOUNTABILITY OF GOVERNMENT FINANCIAL OPERATIONS FOR CITIZENS AND OTHER CONSTITUENCIES, SUCH AS LEGISLATIVE AND OVERSIGHT BODIES, AND INVESTORS AND CREDITORS. WHETHER SETTING NEW STANDARDS, IMPROVING EXISTING ONES, OR HELPING CONSTITUENTS TO IMPLEMENT AND UNDERSTAND THOSE STANDARDS, GASB'S AIM IS TO PROMOTE GREATER TRANSPARENCY, TO SUPPORT WELL-INFORMED DECISION MAKING, AND TO HELP USERS ASSESS A GOVERNMENT'S FINANCIAL ACCOUNTABILITY. THE GASB IN 2013 ISSUED THREE FINAL STATEMENTS. GOVERNMENT COMBINATIONS AS ADDRESSED IN STATEMENT NO. 69, GOVERNMENT COMBINATIONS AND DISPOSALS OF GOVERNMENT OPERATIONS, ARE COMMONLY REFERRED TO AS MERGERS AND ACQUISITIONS. IN ADDITION TO ADDRESSING GOVERNMENT COMBINATIONS THEMSELVES-SUCH AS THE MERGER OF NEIGHBORING SCHOOL DISTRICTS-STATEMENT 69 ALSO ADDRESSES HOW A GOVERNMENT SHOULD ACCOUNT FOR DISPOSALS OF GOVERNMENT OPERATIONS THAT IT HAS TRANSFERRED OR SOLD, SUCH AS A LOCAL SEWER DISTRICT THAT IS SOLD TO BE COMBINED WITH A LARGER, REGIONAL AUTHORITY. STATEMENT NO. 70, ACCOUNTING AND FINANCIAL REPORTING FOR NONEXCHANGE FINANCIAL GUARANTEES, PROVIDES RECOGNITION, MEASUREMENT, AND DISCLOSURE GUIDANCE FOR STATE AND LOCAL GOVERNMENTS THAT EXTEND THESE KINDS OF GUARANTEES. A NONEXCHANGE FINANCIAL GUARANTEE TAKES PLACE WHEN A GOVERNMENT COMMITS TO INDEMNIFY THE HOLDER OF A FINANCIAL OBLIGATION OF ANOTHER GOVERNMENT WHILE GENERALLY RECEIVING LITTLE OR NO COMPENSATION IN RETURN. STATEMENT NO. 71, PENSION TRANSITION FOR CONTRIBUTIONS MADE SUBSEQUENT TO THE MEASUREMENT DATE, ADDRESSES THE TRANSITION PROVISIONS OF STATEMENT NO. 68, ACCOUNTING AND FINANCIAL REPORTING FOR PENSIONS. THE STATEMENT ELIMINATES A POTENTIAL SOURCE OF UNDERSTATEMENT OF BEGINNING NET POSITION AND EXPENSE FOR GOVERNMENTS THAT ARE FIRST IMPLEMENTING STATEMENT 68.THE GASB ISSUED AN EXPOSURE DRAFT, MEASUREMENT OF ELEMENTS OF FINANCIAL STATEMENTS, AND A PRELIMINARY VIEWS, FAIR VALUE MEASUREMENT AND APPLICATION. THE EXPOSURE DRAFT PROPOSED NEW ACCOUNTING CONCEPTS FOR THE MEASUREMENT OF ASSETS AND LIABILITIES AND LED TO THE ISSUANCE OF A FINAL STATEMENT OF GOVERNMENTAL ACCOUNTING CONCEPTS IN EARLY 2014. THE PRELIMINARY VIEWS PROPOSES NEW STANDARDS REGARDING HOW FAIR VALUE SHOULD BE DETERMINED, WHICH INVESTMENTS SHOULD BE MEASURED AT THEIR "FAIR VALUE," AND WHAT NOTE DISCLOSURES SHOULD BE INCLUDED WITH FAIR VALUE MEASUREMENTS. A PRELIMINARY VIEWS DOCUMENT IS DESIGNED TO ELICIT COMMENTS FROM GASB STAKEHOLDERS AT A RELATIVELY EARLY PROJECT STAGE. PENSION OUTREACH ACTIVITIES AND THE RELEASE OF AN IMPLEMENTATION GUIDE ADDRESSING PENSION PLAN REPORTING ISSUES WAS A SIGNIFICANT FOCUS DURING 2013. THE PENSION STANDARDS ISSUED BY THE BOARD IN 2012 PROVIDE SIGNIFICANT INFORMATIONAL BENEFITS IN TERMS OF TRANSPARENCY, CONSISTENCY AND COMPARABILITY, BUT WE REALIZE THAT TO BRING EVERYONE UP TO SPEED ON THE CHANGES THAT HAVE TAKEN PLACE AND WHAT MUST BE DONE AS A RESULT, A WIDE ARRAY OF RESOURCES ALONG WITH EDUCATIONAL AND COMMUNICATION EFFORTS TO SUPPORT THEM WERE NEEDED TO ASSIST OUR STAKEHOLDERS AS THEY MOVED TOWARD IMPLEMENTATION. THE COMPANION PROJECT TO 2012'S PENSION STANDARDS ADDRESSES OTHER POSTEMPLOYMENT BENEFITS (OPEB). THE GASB ENGAGED IN SIGNIFICANT DELIBERATIONS ON OPEB OVER THE COURSE OF 2013 AND IS POISED TO ISSUE AN EXPOSURE DRAFT IN 2014 THAT RESULTS FROM THE REEXAMINATION OF HOW RETIREE HEALTHCARE AND OTHER RETIREE BENEFITS ARE REPORTED. ONCE FINAL OPEB STANDARDS ARE ISSUED, THEY ARE EXPECTED TO PROVIDE THE SIMILAR INFORMATIONAL BENEFITS AS THOSE PROVIDED BY THE RECENT PENSION STANDARDS.JUST BEFORE THE END OF THE YEAR, THE GASB APPROVED AN EXPOSURE DRAFT THAT IS DESIGNED TO UPDATE THE PROCESS THAT GOVERNMENTS USE TO IDENTIFY THE APPROPRIATE ACCOUNTING LITERATURE TO FOLLOW FOR CHANGES IN THE GOVERNMENT FINANCIAL REPORTING ENVIRONMENT. THIS UPDATE ELEVATES THE STATUS OF GUIDANCE PROVIDED THROUGH STAFF IMPLEMENTATION GUIDES. A SECOND COMPANION DOCUMENT EXPOSES THE ELEVATED IMPLEMENTATION GUIDANCE.WHILE THE MAJORITY OF TIME IS DEVOTED TO DEVELOPING ACCOUNTING AND FINANCIAL REPORTING STANDARDS, THE GASB STAFF SPENDS A SIGNIFICANT AMOUNT OF TIME HELPING STAKEHOLDERS UNDERSTAND AND IMPLEMENT STANDARDS BY PROVIDING THEM WITH DIRECT ASSISTANCE ADDRESSING THEIR SPECIFIC FACTS AND CIRCUMSTANCES. DURING THE PAST YEAR, THE GASB RESPONDED TO 1591 TECHNICAL INQUIRIES THAT REQUIRED A SPECIFIC RESPONSE ABOUT THE APPLICATION AND IMPLEMENTATION OF OUR STANDARDS. IN ADDITION, THE GASB BOARD AND STAFF MADE 111 PRESENTATIONS AT CONFERENCES AND STAKEHOLDER EVENTS ACROSS THE COUNTRY AND PUBLISHED EDUCATIONAL MATERIALS DESIGNED TO ENHANCE THE UNDERSTANDABILITY OF GASB STANDARDS, INCLUDING PLAIN LANGUAGE ARTICLES, PODCASTS, A MONTHLY NEWSLETTER, AND A USER-ORIENTED ELECTRONIC NEWSLETTER. IN 2013, THE GASB LAUNCHED A NEW, ONLINE PLATFORM FOR THE GOVERNMENTAL ACCOUNTING RESEARCH SYSTEM(GARS ONLINE). PREVIOUSLY AVAILABLE ONLY ON CD-ROM, GARS ONLINE PROVIDES EFFICIENT, EFFECTIVE, AND EASY ACCESS TO ALL U.S. GAAP AND RELATED LITERATURE FOR STATE AND LOCAL GOVERNMENTS. GARS ONLINE IS MADE AVAILABLE THROUGH FOUR SERVICE PLANS TO ACCOMMODATE THE VARYING NEEDS OF DIFFERENT STAKEHOLDERS. THE GASB ALSO LAUNCHED IN 2013 AN UPDATED WEBSITE THAT FEATURES MORE USER-FRIENDLY NAVIGATION AND "PLAIN ENGLISH" RESOURCES THAT PROVIDE EXTENSIVE BACKGROUND ON ACCOUNTING AND FINANCIAL REPORTING ISSUES FOR STATE AND LOCAL GOVERNMENTS AT WWW.GASB.ORG. THE WEBSITE REDESIGN FOLLOWS THE LAUNCH OF THE FAF AND FASB NEW WEBSITES, BRANDING, AND LOGOS.IN 2013, THE FAF'S PIR TEAM COMPLETED ITS REVIEW OF GASB STATEMENTS NO. 141R, BUSINESS COMBINATIONS AND GASB STATEMENTS NO. 10, ACCOUNTING AND FINANCIAL REPORTING FOR RISK FINANCING AND RELATED INSURANCE ISSUES, TOGETHER WITH NO. 30, RISK FINANCING OMNIBUS, AN AMENDMENT OF GASB STATEMENT NO. 10. THE REPORT CONCLUDED THAT THESE STANDARDS, WHICH WERE ESTABLISHED TO IMPROVE THE CONSISTENCY AND COMPARABILITY IN REPORTING U.S. STATE AND LOCAL GOVERNMENTS' INSURANCE ACTIVITIES, ACHIEVE THEIR PURPOSE. THE THIRTY-MEMBER GASAC IS AN ORGANIZATION OF KNOWLEDGEABLE AND EXPERIENCED PROFESSIONALS REPRESENTING THE GASB'S VARIED STAKEHOLDERS WHO VOLUNTEER THEIR SERVICES TO WORK WITH THE GASB IN AN ADVISORY CAPACITY TO ENHANCE THE STANDARD SETTING PROCESS BY CONSULTING WITH THE GASB ON TECHNICAL ISSUES, PROJECT PRIORITIES, AND OTHER MATTERS LIKELY TO CONCERN THE GASB. GASAC MEMBERS ALSO PROVIDE AN IMPORTANT COMMUNICATION LINK BETWEEN THE GASB AND STAKEHOLDER GROUPS, AND THEY STRIVE TO ENSURE THAT STAKEHOLDER VIEWS ARE CONSISTENTLY AND EFFECTIVELY COMMUNICATED TO THE GASB ON A TIMELY BASIS. 40263818 1 0 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 0 0 1 0 0 0 0 0 0 0 1 0 0 0 0 0 0 0 0 0 1 87 0 1 184 1 0 0 0 0 0 0 0 0 0 0 X 17 15 0 0 0 0 0 0 0 1 1 0 0 1 1 1 1 1 1 1 1 0 CT DE DC X PETER SPENCER 2038470700 401 MERRITT 7 PO BOX 5116 NORWALK CT 06856 JOHN J BRENNAN TRUSTEE 4.00 X 65000 0 0 JEFFREY J DIERMEIER TRUSTEE, CHAIRMAN 10.00 X X 150000 0 0 CYNTHIA P EISENHAUER TRUSTEE 4.00 X 65000 0 0 DENNIS M KASS TRUSTEE 4.00 X 65000 0 0 LUIS M VICEIRA TRUSTEE 3.00 X 61667 0 0 EDWARD E NUSBAUM TRUSTEE 3.00 X 0 0 0 CAROL A JOHN DAVIDSON TRUSTEE, VICE CHAIRMAN 5.00 X 75000 0 0 WMMACK LAWHON TRUSTEE 4.00 X 65000 0 0 STEPHEN R HOWE JR TRUSTEE 3.00 X 0 0 0 ANN MARIE PETACH TRUSTEE 3.00 X 55000 0 0 MICHELLE R SEITZ TRUSTEE 3.00 X 55000 0 0 W DANIEL EBERSOLE TRUSTEE, TREASURER 3.00 X X 55000 0 0 PAUL G CAMELL TRUSTEE 3.00 X 55000 0 0 CHARLES S COX TRUSTEE 3.00 X 55000 0 0 JOHN C DUGAN TRUSTEE 3.00 X 55000 0 0 TERI L LIST-STOLL TRUSTEE 3.00 X 55000 0 0 TERRY WARFIELD TRUSTEE 3.00 X 33279 0 0 TERESA S POLLEY PRESIDENT 40.00 X 656502 0 45827 RONALD P GUERRETTE VICE PRESIDENT 40.00 X 376567 0 71759 JODI P DOTTORI VICE PRESIDENT AND CHIEF OF STAFF 40.00 X 304455 0 90396 JEFFREY W RUBIN VICE PRESIDENT AND GENERAL COUNSEL 40.00 X 280613 0 78708 ROBERT H ATTMORE CHAIRMAN, GASB THROUGH 6/30 40.00 X 224723 0 28170 LESLIE F SEIDMAN CHAIRMAN, FASB THROUGH 6/30 40.00 X 492491 0 54731 RUSSELL G GOLDEN CHAIRMAN, FASB 40.00 X 891134 0 69591 DAVID A VAUDT CHAIRMAN, GASB 40.00 X 319598 0 55522 JAMES L KROEKER VICE CHAIRMAN, FASB 40.00 X 347688 0 32689 LAWRENCE W SMITH BOARD MEMBER 40.00 X 855457 0 97825 MARC A SEIGEL BOARD MEMBER 40.00 X 736219 0 58738 THOMAS J LINSMEIER BOARD MEMBER 40.00 X 817758 0 104153 DARYL E BUCK BOARD MEMBER 40.00 X 741634 0 63568 R HAROLD SCHROEDER BOARD MEMBER 40.00 X 751142 0 85712 8760927 0 937389 87 0 1 0 MAGNA CONSTRUCTION 30 PAIVE STREET STAMFORD CT 06902 CONSTRUCTION CONTRACTOR 1308695 DELOITTE & TOUCHE LLP 10 WESTPORT ROAD WILTON CT 06897 PAYMENTS FOR FELLOWS 785948 PRICEWATERHOUSECOOPERS 400 CAMPUS DRIVE FLORHAM PARK NJ 07932 PAYMENTS FOR FELLOWS 542455 ERNST & YOUNG 200 PLAZA DRIVE SECAUCUS NJ 07094 PAYMENTS FOR FELLOWS 534728 K & L GATES 1601 K STREET NW WASHINGTON DC 20006 CONSULTANT EXTERNAL RELATIONS 504794 15 871447 871447 11737 11737 2126000 2066407 59593 59593 59593 853970 512474 341496 341496 ACCOUNTING SUPPORT FEES 900099 32917201 32917201 LICENSE FEE AND SUBSCRIPTION REVE 900099 16997882 16997882 CLASS ACTION SETTLEMENT 900099 2539003 0 2539003 22106 22106 52476192 53760465 50278685 0 3481780 5386110 2516339 2869771 24071455 21767750 2303705 3012801 2619744 393057 2964471 2261745 702726 1176667 1011799 164868 1199853 711625 488228 58479 3110 55369 199060 199060 481392 481392 2165 2165 439015 111492 327523 796822 361129 435693 2078190 1344932 733258 669149 623713 45436 663228 394968 268260 800026 651840 148186 200852 200852 COST OF LICENSE FEE AND 3919907 3919907 PLACEMENT & RECRUITING 691951 652397 39554 SUBSCRIPTION & LIBRARY 339574 326994 12580 BILLING AND COLLECTION 239400 239400 530200 263542 266658 49920767 40263818 9656949 0 3733321 3804937 8682643 10303207 6298449 5336755 101409 78660 264026 314865 12772435 10054405 1025530 2718030 68715325 72139972 2321042 2390366 0 1993252 91141745 99080044 845897 655418 6436934 6518106 8113533 8101798 15396364 15275322 X 75745381 83804722 75745381 83804722 91141745 99080044 X 3839698 -577930 4797573 X 0 1 X 1 0 X 30079783 35286613 31225803 38220788 32917201 167730188 30079783 35286613 31225803 38220788 32917201 167730188 167730188 1448199 1286945 1212046 1060769 953145 5961104 2539003 2539003 176230295 86614462 0.95180 0.95660 X 0 726800 726800 45274060 46000860 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 640000 620000 740000 726800 2726800 250000 250000 250000 250000 1000000 1500000 0 PART II-A, LINE 1B LOBBYING COSTS INCLUDES EXPENSES PAID TO CONSULTANTS AND OTHER COSTS TO REGULARLY MONITOR PROPOSED LEGISLATION THAT MAY DIRECTLY OR INDIRECTLY AFFECT FINANCIAL ACCOUNTING AND REPORTING STANDARDS, AND FROM TIME TO TIME WE REACH OUT TO CONGRESSIONAL STAFF AND OTHERS WITH RESPECT TO SUCH LEGISLATION. DURING 2013, WE ENGAGED IN LOBBYING EFFORTS WITH RESPECT TO LEGISLATION (I) IMPLEMENTATION OF P.L. 111-203, WALL STREET REFORM AND CONSUMER PROTECTION ACT AND (II) SEQUESTRATION, INCLUDING THE BUDGET CONTROL ACT. 5129644 3702334 1427310 7642791 6352071 1290720 0 2718030 ACCRUED PAYROLL AND RELATED BENEFITS 1134789 ACCRUED RENT EXPENSE 2728666 ACCRUED PENSION COSTS 3705639 ACCRUED 457B PLAN COSTS 532704 8101798 X 49370463 -577930 110000 -467930 49838393 2165 3919907 3922072 53760465 46108695 110000 110000 45998695 2165 3919907 3922072 49920767 PART X, LINE 2: THE FOUNDATION IS A TAX-EXEMPT ORGANIZATION UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE. MANAGEMENT HAS REVIEWED TAX POSITIONS FOR OPEN TAX YEARS AND DETERMINED THAT A PROVISION FOR UNCERTAIN TAX POSITIONS IS NOT REQUIRED. THE FOUNDATION IS CURRENTLY OPEN TO AUDIT UNDER THE STATUTE OF LIMITATIONS BY THE INTERNAL REVENUE SERVICE AND STATE TAXING AUTHORITIES FOR THE YEARS ENDING DECEMBER 31, 2010 THROUGH 2012. PART XI, LINE 4B - OTHER ADJUSTMENTS: COST OF SUBSCRIPTION AND LICENSE FEE REVENUE 3,919,907. PART XII, LINE 4B - OTHER ADJUSTMENTS: COST OF SUBSCRIPTION AND LICENSE FEE REVENUE 3,919,907. EUROPE (INCLUDING ICELAND & GREENLAND) - 0 0 PROGRAM SERVICES ATTEND MEETINGS AND ROUNDTABLES WITH INTERNATIONAL ACCOUNTING STANDARDS BOARD ON ISSUES RELATED TO INTERNATIONAL CONVERGENCE OF ACCOUNTING STANDARDS 271504 EAST ASIA AND THE PACIFIC - 0 0 PROGRAM SERVICES ATTEND MEETINGS WITH STANDARD SETTERS AND OTHERS ON ISSUES RELATED TO INTERNATIONAL ACCOUNTING STANDARDS 33757 SOUTH AMERICA 0 0 PROGRAM SERVICES ATTEND MEETINGS WITH STANDARD SETTERS AND OTHERS ON ISSUES RELATED TO INTERNATIONAL ACCOUNTING STANDARDS 21053 0 0 0 0 0 0 326314 0 326314 0 0 0 0 0 0 X X 1 1 X X X X X 0 1 0 0 0 0 0 0 0 TERESA S POLLEY PRESIDENT 498800 0 50000 0 107702 0 40747 0 5080 0 702329 0 0 0 RONALD P GUERRETTE VICE PRESIDENT 309381 0 17500 0 49686 0 47651 0 24108 0 448326 0 0 0 JODI P DOTTORI VICE PRESIDENT AND CHIEF OF STAFF 265127 0 33000 0 6328 0 55101 0 35295 0 394851 0 0 0 JEFFREY W RUBIN VICE PRESIDENT AND GENERAL COUNSEL 256534 0 18000 0 6079 0 48512 0 30196 0 359321 0 0 0 ROBERT H ATTMORE CHAIRMAN, GASB THROUGH 6/30 194766 0 0 0 29957 0 25066 0 3104 0 252893 0 0 0 LESLIE F SEIDMAN CHAIRMAN, FASB THROUGH 6/30 422738 0 0 0 69753 0 36390 0 18341 0 547222 0 0 0 RUSSELL G GOLDEN CHAIRMAN, FASB 756459 0 0 0 134675 0 35592 0 33999 0 960725 0 0 0 DAVID A VAUDT CHAIRMAN, GASB 269705 0 0 0 49893 0 47148 0 8374 0 375120 0 0 0 JAMES L KROEKER VICE CHAIRMAN, FASB 253928 0 0 0 93760 0 24347 0 8342 0 380377 0 0 0 LAWRENCE W SMITH BOARD MEMBER 667527 0 0 0 187930 0 63434 0 34391 0 953282 0 0 0 MARC A SEIGEL BOARD MEMBER 667527 0 0 0 68692 0 24347 0 34391 0 794957 0 0 0 THOMAS J LINSMEIER BOARD MEMBER 667786 0 0 0 149972 0 70791 0 33362 0 921911 0 0 0 DARYL E BUCK BOARD MEMBER 667536 0 0 0 74098 0 36631 0 26937 0 805202 0 0 0 R HAROLD SCHROEDER BOARD MEMBER 665228 0 0 0 85914 0 49018 0 36694 0 836854 0 0 0 PART I, LINE 1A GROSS-UP PAYMENTS ARE PROVIDED RELATIVE TO CERTAIN RETIREMENT PLAN PAYMENTS. SUCH PAYMENTS ARE TREATED AS TAXABLE COMPENSATION. ALL EMPLOYEES ARE ELIGIBLE FOR REIMBURSEMENT FOR A PORTION OF HEALTH CLUB DUES AT SELECTED FACILITIES, WHICH ARE INCLUDED AS COMPENSATION. PART I, LINE 4B THE FOUNDATION SPONSORED A NON-QUALIFIED SUPPLEMENTAL EXECUTIVE RETIREMENT PLAN (SERP) TO PROVIDE ELIGIBLE PARTICIPANTS (THOSE HIRED PRIOR TO JANUARY 1, 2008) WITH DEFINED BENEFITS SUBSTANTIALLY EQUIVALENT TO THE BENEFITS PROVIDED UNDER THE FOUNDATION'S EMPLOYEES' PENSION PLAN ON COMPENSATION IN EXCESS OF THE INTERNAL REVENUE CODE (IRC) COMPENSATION LIMIT. BENEFITS IN THE SERP VEST WHEN A PARTICIPANT COMPLETES 5 YEARS OF SERVICE, AND COMPENSATION (INCLUDING TAX GROSS-UPS) IS RECOGNIZED IN THE 5TH YEAR AND EACH ELIGIBLE SERVICE YEAR THEREAFTER. THE SERP WAS TERMINATED EFFECTIVE DECEMBER 31, 2013. IN ACCORDANCE WITH THE PROVISIONS OF THE PLAN, FINAL PAYOUTS TO VESTED PARTICIPANTS WILL OCCUR IN EARLY 2015, AFTER A MANDATORY DEFERRAL PERIOD. IN ADDITION, THE FAF PROVIDES ADDITIONAL DEFINED CONTRIBUTIONS TO PARTICIPANTS WHOSE ANNUAL COMPENSATION IS IN EXCESS OF THE IRC COMPENSATION LIMIT, FIRST TO A 457(B) DEFERRED COMPENSATION PLAN, AND IF THAT LIMIT IS REACHED DURING A CALENDAR YEAR, THEN CASH PAYMENTS (INCLUDING TAX GROSS-UPS) ARE MADE TO ELIGIBLE PARTICIPANTS. THE FOLLOWING COVERED INDIVIDUALS PARTICIPATED IN THE FOUNDATION'S SERP AND OTHER SUPPLEMENTAL PROGRAMS IN 2013 AND RECEIVED AND/OR WERE DEEMED TO HAVE RECEIVED THE FOLLOWING AMOUNTS: TERESA POLLEY - $103,840 RONALD GUERRETTE- $39,948 LAWRENCE SMITH- $178,985 LESLIE SEIDMAN- $67,822 THOMAS LINSMEIER- $144,346 ROBERT ATTMORE- $23,764 DAVID VAUDT- $2,402 RUSSELL GOLDEN- $132,415 DARYL BUCK- $70,236 HAROLD SCHROEDER - $79,772 JODI DOTTORI- $4,592 JEFFREY RUBIN- $1,279 ERNST YOUNG STEPHEN HOWE IS AMERICAS MANAGING PARTNER-ERNST & YOUNG,LLP/TRUSTEE OF FAF 2039856 THERE ARE SEVERAL TRANSACTIONS BETWEEN ERNST & YOUNG AND THE FOUNDATION. THE FOUNDATION LICENSES SUBSCRIPTION SERVICES TO ITS AUTHORITATIVE LITERATURE TO ERNST & YOUNG FOR ITS INTERNAL USE AS WELL AS SUBLICENSING AND ARE SUBSTANTIALLY SIMILAR TO THOSE FEES CHARGED TO SIMILARLY SIZED LICENSEES. IN ADDITION, ERNST & YOUNG PURCHASES HARDCOPY PUBLICATIONS AND SUBSCRIPTIONS OF THE AUTHORITATIVE LITERATURE. THESE TRANSACTIONS ARE AT ARMS-LENGTH, AND BASED UPON THE FOUNDATION'S STATUS AS THE AUTHORITATIVE STANDARD SETTER FOR ACCOUNTING, ARE A NECESSITY. IN ADDITION, SEVERAL MEMBERS OF ERNST & YOUNG PARTICIPATED IN THE FAF'S FELLOWSHIP PROGRAM. THESE INDIVIDUALS WORK AT THE FASB & GASB FOR PERIODS RANGING FROM 18-24 MONTHS, AND FAF REIMBURSES ERNST & YOUNG AN AGREED UPON FEE FOR THEIR SERVICES. STEPHEN HOWE HAS NO DIRECT INVOLVEMENT IN NEGOTIATING THE TERMS OR AMOUNTS IN THE AGREEMENTS AND RECEIVES NO BENEFIT FROM THE TRANSACTIONS. 0 GRANT THORNTON LLP EDWARD NUSBAUM IS CEO OF GRANT THORNTON/TRUSTEE OF FAF 255211 THERE ARE SEVERAL TRANSACTIONS BETWEEN GRANT THORNTON AND THE FOUNDATION. GRANT THORNTON PURCHASES HARDCOPY PUBLICATIONS AND SUBSCRIPTIONS OF THE AUTHORITATIVE LITERATURE. THESE TRANSACTIONS ARE AT ARMS-LENGTH, AND BASED UPON THE FOUNDATION'S STATUS AS THE AUTHORITATIVE STANDARD SETTER FOR ACCOUNTING, ARE A NECESSITY. IN ADDITION, SEVERAL MEMBERS OF GRANT THORNTON PARTICIPATED IN THE FAF'S FELLOWSHIP PROGRAM. THESE INDIVIDUALS WORK AT THE FASB & GASB FOR PERIODS RANGING FROM 18-24 MONTHS, AND FAF REIMBURSES GRANT THORNTON AN AGREED UPON FEE FOR THEIR SERVICES. EDWARD NUSBAUM HAS NO DIRECT INVOLVEMENT IN NEGOTIATING THE TERMS OR AMOUNTS IN THE AGREEMENTS AND RECEIVES NO BENEFIT FROM THE TRANSACTIONS. 0 FORM 990, PART VI, SECTION B, LINE 11 THE AUDIT AND COMPLIANCE COMMITTEE OF THE BOARD OF TRUSTEES REVIEWS AND APPROVES THE FORM 990 PRIOR TO IT BEING FILED. IN ADDITION, A COPY OF THE A FORM 990 IS PROVIDED TO THE FULL BOARD OF TRUSTEE PRIOR TO IT BEING FILED. FORM 990, PART VI, SECTION B, LINE 12C THE FOUNDATION HAS A WRITTEN CONFLICT OF INTEREST POLICY THAT COVERS THE FASB AND GASB BOARD MEMBERS, THE FAF PRESIDENT & CEO, AND ALL OTHER EMPLOYEES OF THE FAF. ON A QUARTERLY BASIS THESE INDIVIDUALS ARE REQUIRED TO REPORT THEIR INTERESTS THAT WOULD POSE A CONFLICT TO THE FOUNDATION. FAILURE TO ADHERE TO THE POLICY CAN INCLUDE TERMINATION. THE FAF ALSO MAINTAINS AN OMBUDS POLICY APPLICABLE TO ALL FAF EMPLOYEES AND THE MEMBERS OF THE FAF BOARD OF TRUSTEES. UNDER THE OMBUDS POLICY, EACH EMPLOYEE AND TRUSTEE HAS AN AFFIRMATIVE DUTY TO REPORT PROMPTLY VIOLATIONS OF LAWS AND UNETHICAL (INCLUDING CONFLICTS OF INTEREST), UNWANTED AND/OR QUESTIONABLE BEHAVIOR. THE OMBUDS POLICY PROVIDES SPECIFIC PROTECTIONS FROM EMPLOYMENT RETALIATION TO INDIVIDUALS WHO, IN GOOD FAITH, REPORT POTENTIAL VIOLATIONS OF THE OMBUDS AND OTHER POLICIES OF THE FAF. THE FAF IS ALSO IN THE PROCESS OF DEVELOPING A STAND-ALONE CODE OF ETHICS/CONFLICTS POLICY THAT WILL BE APPLICABLE TO THE FAF TRUSTEES. FORM 990, PART VI, SECTION B, LINE 15 THE FINANCE AND COMPENSATION COMMITTEE OF THE FAF BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT TRUSTEES, HAS THE AUTHORITY TO RECOMMEND ANNUAL COMPENSATION PARAMETERS FOR THE KEY EMPLOYEES, WHICH INCLUDES THE FAF PRESIDENT AND CHIEF EXECUTIVE OFFICER, FASB CHAIRMAN AND GASB CHAIRMAN, AND CERTAIN OTHER FAF EMPLOYEES, INCLUDING FASB AND GASB MEMBERS. THESE RECOMMENDATIONS ARE BASED ON STUDIES CONDUCTED BY INDEPENDENT COMPENSATION CONSULTANTS THAT PERFORM MARKET RESEARCH AND PROVIDE COMPREHENSIVE COMPENSATION COMPARABILITY REPORTS. THE APPOINTMENTS AND EVALUATIONS COMMITTEE OF THE FAF BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT TRUSTEES, IS RESPONSIBLE FOR REVIEWING THE PERFORMANCE OF THE FASB AND GASB MEMBERS ANNUALLY, AND THE EXECUTIVE COMMITTEE OF THE FAF BOARD OF TRUSTEES, WHICH IS COMPRISED OF INDEPENDENT TRUSTEES, IS RESPONSIBLE FOR REVIEWING THE PERFORMANCE OF THE FAF PRESIDENT AND CHIEF EXECUTIVE OFFICER ANNUALLY. THE APPOINTMENTS AND EVALUATIONS COMMITTEE SHALL DETERMINE THE SPECIFIC COMPENSATION RECOMMENDATION FOR THE FASB AND GASB MEMBERS, WHILE THE EXECUTIVE COMMITTEE SHALL DETERMINE THE SPECIFIC COMPENSATION RECOMMENDATION FOR THE FAF PRESIDENT AND CHIEF EXECUTIVE OFFICER. THESE COMPENSATION RECOMMENDATIONS WILL THEN BE PROVIDED TO THE FULL BOARD OF TRUSTEES FOR THEIR APPROVAL. COMPREHENSIVE COMPENSATION STUDIES OF KEY EMPLOYEE COMPENSATION ARE CONDUCTED EVERY THREE YEARS, WITH THE LAST STUDY BEING PERFORMED IN 2011. IN THE INTERVENING YEARS, THE COMPENSATION DATA IS UPDATED BY THE CONSULTANTS BASED ON MARKETPLACE DATA. ADDITIONALLY, DURING 2012, AN INDEPENDENT CONSULTING FIRM PROVIDED WRITTEN OPINIONS AFFIRMING (1) THE FAIRNESS (UNDER THE INTERMEDIATE SANCTIONS RULES PROMULGATED PURSUANT TO THE IRC) OF THE COMPENSATION DETERMINATIONS MADE BY THE BOARD OF TRUSTEES FOR 2011 WITH RESPECT TO KEY EMPLOYEES, AND (2) THE FAIRNESS OF 2011 TRUSTEE COMPENSATION. FOR OTHER FAF EMPLOYEES, SALARY RANGES ARE REVIEWED EVERY THREE YEARS ON THE BASIS OF MARKET COMPENSATION DATA PROVIDED BY INDEPENDENT COMPENSATION CONSULTANTS. DURING THE INTERVENING YEARS, SALARY RANGES ARE ADJUSTED FOR INFLATION. THE MOST RECENT COMPREHENSIVE REVIEW OF FAF STAFF SALARY RANGES WAS PERFORMED IN 2010 FOR IMPLEMENTATION IN 2011. A COMPREHENSIVE REVIEW IS CURRENTLY IN-PROCESS, WITH AN IMPLEMENTATION OF REVISED FAF STAFF SALARY RANGES SCHEDULED FOR MID-2014. FORM 990, PART VI, SECTION C, LINE 19 THE ANNUAL REPORT, WHICH INCLUDES THE FOUNDATION'S AUDITED FINANCIAL STATEMENTS, AND GOVERNING DOCUMENTS ARE LOCATED ON THE FOUNDATION'S WEBSITE. AT THIS TIME, THE FOUNDATION'S CONFLICT OF INTEREST POLICY IS AVAILABLE TO THE PUBLIC UPON REQUEST. FORM 990, PART XI, LINE 9: PENSION RELATED CHANGES-AMOUNTS REFLECTED AS OTHER CHANGE IN NET ASSETS 4,797,573.