2013-04-12T16:47:23-05:00 2012-03-31 ERNST & YOUNG US LLP 2 NORTH CENTRAL SUITE 2300 PHOENIX AZ 85004 990 2011-04-01 860253821 THE ARIZONA SPORTS FOUNDATION % CURT KRIZAN ARIZ 4803500900 7135 E CAMELBACK RD SCOTTSDALE AZ 85251 Robert Shelton 2013-01-25 6023223000 2011 2016-02-25 16:41:14Z THE FIESTA BOWL ROBERT N SHELTON 7135 E CAMELBACK RD STE 190 SCOTTSDALE AZ 85251 25523753 false X WWW.FIESTABOWL.ORG X 1972 AZ The Arizona Sports Foundation is committed to fostering a culture of community involvement and giving. 26 23 275 300 8144 -13974 0 0 16482522 14773769 135354 -49908 706387 567564 17324263 15291425 27704 1000000 0 0 1288811 1380663 0 0 0 13858616 11775481 15175131 14156144 2149132 1135281 35619998 25710118 18073023 7027862 17546975 18682256 THROUGH THE ANNUAL TOSTITOS FIESTA BOWL AND RELATED EVENTS, WE SERVE AS WELCOMING HOSTS, CREATE LIFELONG MEMORIES, PROMOTE ARIZONA AND ENABLE MEANINGFUL CONTRIBUTIONS TO SOCIETY. false false 10903558 13942322 THE ARIZONA SPORTS FOUNDATION ANNUALLY STAGES THE TOSTITOS FIESTA BOWL, WHICH IS PART OF THE BOWL CHAMPIONSHIP SERIES. THE GAME IS PLAYED IN UNIVERSITY OF PHOENIX STADIUM IN GLENDALE, ARIZONA. THE 41st ANNUAL TOSTITOS FIESTA BOWL WAS PLAYED ON JAN. 2, 2012, IN FRONT OF A CROWD OF 69,927. THE OKLAHOMA STATE COWBOYS DEFEATED THE STANFORD CARDINAL 41-38 IN OVERTIME. THE GAME WAS TELEVISED BY ESPN. 10903558 true false false true false false false false false false true false false false true true false true false false false false false false false false false true false true false false true false false false true true false false false false false true true true false false true 135 0 true 275 true true true false false false false false false false false false X 26 23 false false true false false true false true true true false true true true true true true true true false AZ X X CURT KRIZAN 4803500900 7135 E CAMELBACK RD SUITE 190 SCOTTSDALE AZ 85251 X BOB AYLESWORTH 1.0 X 800 0 0 JIM BRUNER 1.0 X X 605 0 0 ANN DAMIANO 1.0 X 640 0 0 KEMP ELLIS 1.0 X X 2040 0 0 LARRY JOHNSON 1.0 X 800 0 0 DAN LEWIS 1.0 X X 1516 0 0 ANDY MCCAIN 1.0 X 0 0 0 MANNY MOLINA 1.0 X 0 0 0 CHUCK O'CONNOR 1.0 X 0 0 0 MARK VINCIGUERRA 1.0 X 0 0 0 STEVE WHITEMAN 1.0 X X 0 0 0 MATT WINTER 1.0 X X 0 0 0 DUANE WOODS 1.0 X X 0 0 0 JOHN ZIDICH 1.0 X X 0 0 0 DON ROBINSON 1.0 X 0 0 0 MIKE HECOMOVICH 1.0 X 0 0 0 CLINTON PATTEA 1.0 X 0 0 0 NIKKI BALICH 1.0 X 0 0 0 PATRICK BARKLEY 1.0 X 0 0 0 ANDREW STEGEN 1.0 X 640 0 0 SHERYL DEHNING LONG 1.0 X 0 0 0 BRIAN J HALL 1.0 X X 800 0 0 STEVEN LEACH 1.0 X 0 0 0 MARCUS SIPOLT 1.0 X 1000 0 0 JOHN CURRIE 1.0 X 0 0 0 JORY HANCOCK 1.0 X 0 0 0 TYLER HANSON 1.0 X 0 0 0 RICHARD A HORN 1.0 X 0 0 0 DEREK J KERR 1.0 X 0 0 0 RAMIRO G PERU 1.0 X 0 0 0 KEMP ELLIS CONT'D 1.0 X X 0 0 BRIAN J HALL CONT'D 1.0 X X 0 0 ALAN YOUNG 12.0 X 102787 0 ROBERT SHELTON 12.0 X 218211 CURT KRIZAN 12.0 X 70645 STEPHANIE JARVIS 12.0 X JAY FIELDS 0.0 X 138134 TRACY GUERRA 12.0 X 130512 CHRISTINE MARTIN 12.0 X 132871 ANDREW BAGNATO 12.0 X 120882 PEGGY EYANSON 12.0 X 107313 JOHN JUNKER 0.0 X 120471 NATALIE WISNESKI 0.0 X 153640 1304307 0 0 9 true true false ROBINS KAPLAN MILLER 2800 LASALLE PLAZA MINNEAPOLIS MN 55402 LEGAL COUNSEL 1930547 BINGHAM MCCUTCHEN LLP P O BOX 3486 BOSTON MA 02241 LEGAL COUNSEL 1704308 PRICEWATERHOUSECOOPERS LLP P O BOX 514038 LOS ANGELES CA 90051 AUDIT/ACCOUNTING 687867 SNELL WILMER LLP ONE ARIZONA CENTER PHOENIX AZ 85004 LEGAL COUNSEL 488105 SITRICK BRINKO GROUP LLC 1801 W OLYMPIC BLVD PASADENA CA 91109 LEGAL COUNSEL 470916 31 0 GAME REVENUE 711300 13888178 13888178 SPONSORSHIP PAYMENTS 711300 885591 885591 14773769 318366 318366 0 505274 505274 3420 3420 3420 3420 9863184 870 10214023 18305 -350839 -17435 -368274 -368274 0 0 5103 5103 379 4724 OTHER REVENUE 711300 13767 13767 GAME PROMOTION REVENUE 711300 40000 40000 53767 15291425 13942324 8144 1340957 1000000 1000000 0 0 0 235897 155692 80205 0 846672 707648 139024 0 206729 155047 51682 91365 71621 19744 0 559992 559992 141387 141387 0 0 0 447734 447734 454149 454149 224170 224170 74522 74522 12218 12218 111009 111009 165849 165849 0 81106 81106 0 0 237863 61293 176570 249012 249012 GAME EXPENSES 8551549 8551549 GAME PROMOTION - HOSPITALITY 188490 188490 UNRELATED BUS INC TAX 929 929 DUES SUBS/M&E 116751 116751 158751 158751 14156144 10903558 3252586 0 2615275 347953 11804326 3695328 0 0 1255943 6341840 0 0 0 0 200 0 20716 18626 90488 77772 8745748 3267981 5434020 5477767 0 9736788 0 0 0 0 0 0 14399030 14044 35619998 25710118 2873351 690006 0 0 13190 21914 0 0 0 0 0 0 0 0 0 0 15186482 6315942 18073023 7027862 X 17546975 18682256 0 0 0 0 17546975 18682256 35619998 25710118 X 1135281 X false true true X false X 0 0 0 0 0 0 13555615 16346205 15643070 16309226 14844512 76698628 1285539 1149124 1110789 838378 885591 5269421 14841154 17495329 16753859 17147604 15730103 81968049 0 0 0 1219641 1411269 2630910 686587 617695 607101 6333285 6967779 15212447 686587 617695 607101 7552926 8379048 17843357 64124692 789044 172905 364290 601323 872060 2799622 789044 172905 364290 601323 872060 2799622 41917 18243 3054 11330 4724 79268 15672115 17686477 17121203 17760257 16606887 84846939 0.75577 0.84637 0.03300 0.02891 X X 0 0 0 14156144 32139706 14156144 32139706 857807 1000000 214452 250000 1000000 1000000 1000000 3000000 4500000 1998 0 0 1998 250000 250000 250000 750000 1125000 0 0 0 0 0 0 3278182 672900 2605282 2295125 454082 1841043 1011941 836034 175907 0 2044280 1304966 739314 5361546 0 INTERCOMPANY PAYABLE TO ACFCF 26896384 ACCRUED EXCISE, WITHOLDING AND 33747 INTERCOMPANY DUE TO DUE FROM FEI -12755254 INTERCOMPANY DUE TO DUE FROM VSB -7858935 6315942 UNCERTAIN TAX POSITIONS - FIN 48 (ASC 740) SCHEDULE D, PART X, LINE 2 THE ORGANIZATION HAD A FOOTNOTE TO ITS AUDITED FINANCIAL STATEMENT ADDRESSING AN UNCERTAIN TAX POSITION UNDER FIN 48(ASC 740). PER THE REQUIREMENTS OF SCHEDULE D, PART X, LINE 2, THE ENTIRETY OF THE FOOTNOTE IS QUOTED HERE. THE FOOTNOTE WAS ISSUED AS PART OF OUR AUDITED FINANCIAL STATEMENTS FOR THE YEAR ENDED MARCH 31, 2012 IN AN AUDIT REPORT DATED JULY 12, 2012 ISSUED BY ERNST & YOUNG LLP. "During fiscal 2011, a Special Committee of the Foundation's Board of Directors directed an investigation into matters related to, among other things, the reimbursement of political contributions made by employees, potential excessive executive compensation, and inappropriate expenditures and gifts. The Special Committee found evidence of reimbursed political contributions and inappropriate gifts and expenses. Matters relating to expenditures and excess compensation continue to be addressed by the Board of Directors and management. The Foundation has taken steps to address the concerns raised in the Special Committee report including, but not limited to, the termination of employees; the hiring of a new executive director, chief financial officer, chief compliance officer/general counsel, and controller; the implementation of changes to the governance structure, including restructuring committees of the Board of Directors; and the establishment of more detailed policies and procedures. Upon examination of the results of the Special Committee investigation and review done subsequent to the special investigation, management believes that the expenses paid by the Foundation have been appropriately recorded in the historical financial statements. Any recoveries of expenses paid will be recorded, if any when they are received. Some of the Foundation's prior activities could risk the Foundation's Section 501 (c)(3) exemption from federal income taxes. These activities fall into four categories: (i) political expenditures, (ii) lobbying expenditures, (iii) benefits provided to disqualified persons, and (iv) benefits provided to third parties. In all these areas, the Foundation has taken and will continue to take corrective action as follows: Political campaign contributions - The Foundation has sought to recover such amounts from candidates and changed its internal bonus and expense reimbursement policies and practices. Lobbying activities - The Foundation has investigated these expenditures and believes that all of the expenses paid by the Foundation to professional services firms were proper and the Foundation is not aware of lobbying activities conducted by the Foundation other than a small amount of indirect support provided for fundraising events. Benefits provided to disqualified persons - The Foundation has amended income tax reporting for certain directors, former directors, employees, and consultants for recent years. The Foundation has also quantified all inurement and possible excess benefit transactions and reported such amounts for income tax purposes. Benefits provided to third parties - The Foundation has investigated and has not identified any significant amounts that raise inurement or impermissible private benefit issues with third parties. The IRS has broad discretion when determining whether or not to revoke the tax-exempt status of an offending charitable organization or to impose alternative corrective actions. Although the Foundation cannot predict the outcome with certainty, based on the corrective actions the Foundation has taken and expects to continue to take, management believes it is more likely than not that the Foundation will retain its tax-exempt status under Section 501 (c)(3) of the Internal Revenue Code. Accordingly, management believes it continues to be appropriate to record no provision for income taxes in these combined financial statements. The Foundation has accrued a liability at March 31, 2012, for excise taxes related to reimbursed political campaign contributions since 2000 and for withholding and employment taxes with respect to amounts that represent compensation but which were not initially treated as such by the Foundation. These amounts total approximately $122,000 and represent the estimated liabilities identified to date. It is reasonably possible additional amounts may be identified and the IRS could assess a penalty or other amount to the Foundation. Any such additional liabilities cannot be estimated at this time and a liability has not been recorded in the accompanying combined financial statements. The IRS has provided statutory guidance stating that qualified sponsorship contributions (payments where there is no expectation of any substantial return benefits other than the use or acknowledgment of the corporate name or logo) received by not-for-profit organizations are not taxable unrelated business income. Management believes that the contributions received by the Foundation qualify under the statutory provisions and therefore are not taxable. In addition, should the contributions be deemed taxable, management believes that the revenues should be reduced by related expenses. Accordingly, no provision for income taxes for unrelated business income has been recognized in the accompanying combined financial statements." true ANGEL CHARITY FOR CHILDREN INC PO BOX 14225 TUCSON AZ 85732 860472794 501(c)(3) 50000 GENERAL SUPPORT AGUA FRIA FOOD & CLOTHING BANK INC 405 E HARRISON DRIVE AVONDALE AZ 85323 562515365 501(c)(3) 10000 GENERAL SUPPORT CENTRAL ARIZONA SHELTER SERVICES INC 230 S 12TH AVENUE PHOENIX AZ 85007 860500753 501(c)(3) 10000 GENERAL SUPPORT CHALLENGER SPACE CENTER 21170 N 83RD AVENUE PHOENIX AZ 85382 860851830 501(c)(3) 25000 GENERAL SUPPORT CHANCES FOR CHILDREN - ARIZONA 9399 S PRIEST DRIVE TEMPE AZ 85284 860778257 501(c)(3) 15000 GENERAL SUPPORT CHILDSPLAY INC 900 S MITCHELL DRIVE TEMPE AZ 85281 860336473 501(c)(3) 25000 GENERAL SUPPORT CRISIS NURSERY INC 2334 E POLK STREET PHOENIX AZ 85006 860324144 501(c)(3) 25000 GENERAL SUPPORT DROWNING PREVENTION COALIATION 428 E THUNDERBIRD 606 PHOENIX AZ 85022 860780594 501(c)(3) 25000 GENERAL SUPPORT FLORENCE CRITTENTON SERVICES 715 W MARIPOSA STREET PHOENIX AZ 85013 860103282 501(c)(3) 20000 GENERAL SUPPORT FOUNDATION FOR BLIND CHILDREN 1235 E HARTMONT DRIVE PHOENIX AZ 85020 860129981 501(c)(3) 50000 GENERAL SUPPORT FREE ARTS FOR ABUSED CHILDREN 103 W HIGHLAND 200 PHOENIX AZ 85013 860739613 501(c)(3) 10000 GENERAL SUPPORT GABRIEL'S ANGELS INC 1550 E MARYLAND AVE 1 PHOENIX AZ 85014 860991198 501(c)(3) 25000 GENERAL SUPPORT GREATER PHOENIX YOUTH AT RISK INC 1001 E PIERCE STREET PHOENIX AZ 85006 860615007 501(c)(3) 20000 GENERAL SUPPORT HOMEWARD BOUND 2302 E COULTER STREET PHOENIX AZ 85015 860660875 501(c)(3) 15000 GENERAL SUPPORT KITCHEN ON THE STREET INC 3218 E BELL RD 203 PHOENIX AZ 85020 205723799 501(c)(3) 10000 GENERAL SUPPORT MAKE-A-WISH FOUNDATION OF ARIZONA 711 E NORTHERN AVENUE PHOENIX AZ 85033 860409636 501(c)(3) 25000 GENERAL SUPPORT MAKE WAY FOR BOOKS 3955 E FTLOWELL RD114 TUCSON AZ 85712 311583036 501(c)(3) 15000 GENERAL SUPPORT SCOTTSDALE RAILROAD & MECHANICAL SOCIETY 7301 E INDIAN BEND RD SCOTTSDALE AZ 85250 860727677 501(c)(3) 15000 GENERAL PURPOSE SPECIAL OLYMPICS ARIZONA INC 2100 S 75TH AVENUE PHOENIX AZ 85004 860307564 501(c)(3) 30000 GENERAL SUPPORT STARLIGHT CHILDREN'S FOUNDATION 125 N 2ND STREET 110 PHOENIX AZ 85008 953802159 501(c)(3) 100000 GENERAL SUPPORT THE SALVATION ARMY 2707 E VAN BUREN PHOENIX AZ 85020 941156347 501(c)(3) 25000 GENERAL SUPPORT THUNDERBIRD JUNIOR GOLF FOUNDATION 7226 N 16TH STREET100 PHOENIX AZ 85008 522103204 501(c)(3) 20000 GENERAL SUPPORT UMOM NEW DAY CENTERS INC 3333 E VAN BUREN PHOENIX AZ 85007 860521062 501(c)(3) 55000 GENERAL SUPPORT VALLEY OF THE SUN JEWISH COMMUNITY CENTER 12701 N SCOTTSDALE RD 203 SCOTTSDALE AZ 85254 860622258 501(c)(3) 15000 GENERAL SUPPORT VALLEY OF THE SUN YMCA 3350 N FIRST AVENUE PHOENIX AZ 85003 860096799 501(c)(3) 50000 GENERAL SUPPORT YMCA OF SOUTHERN ARIZONA PO BOX 1111 TUCSON AZ 85702 860101237 501(c)(3) 25000 GENERAL SUPPORT AT STILL UNIVERSITY 800 W JEFFERSON KIRKSVILLE MO 63501 430356250 501(c)(3) 25000 GNERAL SUPPOT MIRACLE LEAGUE OF ARIZONA 11130 E CHOLLA STREET SCOTTSDALE AZ 85255 202742885 501(c)(3) 20000 GENERAL SUPPORT BACK-TO-SCHOOL CLOTHING DRIVE 1212 E WASHINGTON STREET PHOENIX AZ 85034 742382265 501(c)(3) 10000 GENERAL SUPPORT BOYS & GIRLS CLUBS OF THE EAST VALLEY 1405 E GUADALUPE PD 4 TEMPE AZ 85283 860550646 501(c)(3) 170000 GENERAL SUPPORT NOTMYKID INC 5230 E SHEA BLVD100 SCOTTSDALE AZ 85254 860988329 501(c)(3) 25000 GENERAL SUPPORT VALLEY YOUTH THEATRE 807 N 3RD STREET PHOENIX AZ 85004 860641978 501(c)(3) 25000 GENERAL PURPOSE ARIZONA BLIND AND DEAF 3957 E SPEEDWAY BLVD 207 TUCSON AZ 85712 861048256 501(c)(3) 10000 GENERAL SUPPORT GRANTS SCHEDULE I PART 1 LINE 2 THE ORGANIZATION HAS ESTABLISHED A FORMAL GRANT PROCESS FOR ITS SEMIANNUAL CONTRIBUTIONS. A CHARITABLE GIVING COMMITTEE APPOINTED BY THE BOARD OF DIRECTORS REVIEWS GRANT APPLICATIONS AND SUBMITS A LIST OF POTENTIAL CONTRIBUTIONS TO THE BOARD OF DIRECTORS FOR APPROVAL. CHARITABLE NON-GRANT ACTIVITY, INCLUDING PARTICIPATION IN COMMUNITY EVENTS, IS APPROVED THROUGH THE NORMAL BUDGET PROCESS. ALL 501(C) (3) ORGANIZATIONS ARE CHECKED AGAINST PUBLIC RECORDS TO ENSURE THEIR 501 (C) (3) EXEMPTION IS CURRENT. GRANTEES ARE ASKED TO SUBMIT WRITTEN STATEMENTS REGARDING THEIR USE OF THE FUNDS. X X true true X X X X X X true false false false false false false true false JOHN JUNKER 120471 120471 NATALIE WISNESKI 78640 75000 153640 ROBERT SHELTON 189583 28628 218211 COMPENSATION INFORMATION PART I QUESTION 1 DETAIL TAX INDEMNIFICATION AND GROSS-UP PAYMENTS - THREE OFFICERS; ADDED TO COMPENSATION. HEALTH OR SOCIAL CLUB DUES WERE PAID IN JANUARY-MARCH OF 2011 FOR EXECUTIVES WHO ARE NO LONGER WITH THE ORGANIZATION. THERE ARE NO HEALTH OR SOCIAL CLUB DUES BEING PAID IN CONNECTION WITH CURRENT EMPLOYEES. COMPENSATION PAYMENT SCHEDULE J - PART II FOR PAYROLL TAX PURPOSES, THE ARIZONA SPORTS FOUNDATION PAYS ALL EMPLOYEES OF THE ARIZONA SPORTS FOUNDATION AND ITS RELATED ORGANIZATIONS: VALLEY OF THE SUN BOWL FOUNDATION, FIESTA EVENTS, INC. AND ARIZONA COLLEGE FOOTBALL CHAMPIONSHIP FOUNDATION. ALLOCATIONS OF OFFICERS, KEY EMPLOYEES AND STAFF COMPENSATION ARE MADE IN ACCORDANCE WITH THE EMPLOYEES' AVERAGE TIME DEVOTED TO EACH OF THE ORGANIZATIONS. SEVERANCE PAYMENTS SCHEDULE J, PART I, LINE 4A CHRISTINE MARTIN, DIRECTOR OF TEAM SERVICES, RECEIVED $47,200 IN SEVERANCE FROM THIS ORGANIZATION. REPORTABLE COMPENSATION PART VII AND SCHEDULE J, PART II JOHN JUNKER'S EMPLOYMENT ENDED ON MARCH 31, 2011. HE RECEIVED NO BONUS NOR SEVERANCE PAYMENT. NATALIE WISNESKI'S EMPLOYMENT ENDED ON MARCH 31, 2011. SHE RECEIVED A BONUS FOR WORK DURING THE 2010-2011 BOWL SEASON. SHE RECEIVED NO SEVERANCE PAYMENT. THE BONUS FOR WISNESKI IS REPORTED IN PART II, COL Bii. JAY FIELDS' EMPLOYMENT ENDED APRIL 30, 2011. HE RECEIVED A BONUS FOR WORK DURING THE 2010-2011 BOWL SEASON. HE RECEIVED NO SEVERANCE PAYMENT. ROBERT N. SHELTON WAS HIRED ON AUGUST 1, 2011 AS EXECUTIVE DIRECTOR. AS HE WAS ONLY EMPLOYED FOR FIVE MONTHS OF THE 2011 CALENDAR PAYROLL YEAR, THE AMOUNT DOES NOT REPRESENT A FULL YEAR OF COMPENSATION NOR ANY BONUS PAYMENTS. EXECUTIVE DIRECTOR COMPENSATION SCHEDULE J, PART I, QUESTION III WITH THE HIRING OF ROBERT N. SHELTON AS EXECUTIVE DIRECTOR IN 2011, THE BOARD OF DIRECTORS UNDERTOOK AN EXTENSIVE PROCESS TO ASCERTAIN THE APPROPRIATE COMPENSATION LEVEL. THIS INCLUDED USING AN OUTSIDE COMPENSATION CONSULTANT, REVIEWING THE EXECUTIVE COMPENSATION OF LIKE ORGANIZATIONS THROUGH FORM 990 AND OTHER SURVEYS AND REVIEWING THE PACKAGE WITH THE HIRING COMMITTEE APPOINTED BY THE BOARD OF DIRECTORS. NON-FIXED PAYMENTS PART I, QUESTION 7 DETAIL NON-FIXED PAYMENTS INCLUDE BONUSES PAID AT THE DISCRETION OF THE BOARD OF DIRECTORS. JOHN JUNKER - OFFICER ORG MGR 2007 EXCESS COMPENSATION - $75,623 false JOHN JUNKER - OFFICER ORG MGR 2008 EXCESS COMPENSATION - $10,755 false JOHN JUNKER - OFFICER ORG MGR 2009 EXCESS COMPENSATION - $129,361 false 75509 0 ARIZONA BILTMORE SEE PART V 154318 HOTEL & CATERING false TB CONSULTING SEE PART V 138436 COMPUTER CONSULTANT false ANTHONY AGUILAR BROTHER OF CORP OFFICER 75297 EMPLOYMENT false PART IV - BUSINESS TRANSACTIONS WITH INTERESTED PARTIES (A) NAME OF INTERESTED PERSON - ARIZONA BILTMORE RESORT (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: ANDREW STEGEN GENERAL MANAGER AND ORGANIZATION BOARD MEMBER (C) AMOUNT OF TRANSACTION: $154,318 (D) DESCRIPTION OF TRANSACTION: HOTEL AND CATERING (E) SHARING OF ORGANIZATION REVENUES?: NO (A) NAME OF INTERESTED PERSON - TB CONSULTING (B) RELATIONSHIP BETWEEN INTERESTED PERSON AND ORGANIZATION: MARCUS SIPOLT PRESIDENT AND ORGANIZATION BOARD MEMBER (C) AMOUNT OF TRANSACTION: $138,436 (D) DESCRIPTION OF TRANSACTION: COMPUTER CONSULTANT (E) SHARING OF ORGANIZATION REVENUES?: NO EXCESS BENEFIT TRANSACTIONS Part I - Excess Benefit Transaction - Supplemental Information The Arizona Sports Foundation has undertaken an extensive process to examine the benefits and salary received by its former President/CEO, John Junker. With help of forensic accountants, the Foundation presented to Mr. Junker a list of expenses, for which Mr. Junker received reimbursement, that were considered to be questionable in their business purpose. Mr. Junker was given an opportunity to respond and provide a business purpose for those expenses. After considering Mr. Junker's response and the pertinent information gathered, those reimbursed expenses deemed unrelated to the Foundation's business were considered compensation to Mr. Junker and were reported to him as such on an amended Form W-2. For the years 2007, 2008, and 2009, Mr. Junker's compensation, including the above-mentioned reimbursed expenses, was compared to other similarly situated chief executives in the industry. The Form 990 of other organizations and Football Bowl Association compensation studies were considered. In comparing these amounts, it was determined the compensation, including the above-referenced reimbursed expenses, received by Mr. Junker was in excess of compensation paid to other similarly situated chief executives for those years. The amount of excess benefit by year is described in the table below. Having engaged in a diligent search of historical records and having consulted with outside legal counsel, the Foundation believes the requirements for the rebuttable presumption of reasonableness have been satisfied with regard to Mr. Junker's base compensation. The Foundation corresponded with Mr. Junker requesting excess compensation and benefits (listed in the table below) be returned to the Foundation with interest. Mr. Junker has declined to repay the organization. IRC Code Section 4958 imposes an initial excise tax of 25% of the excess compensation on the disqualified person or organization manager who receives excess compensation. In addition, an initial excise tax of 10% is imposed on the organization manager who approves or initiates the payment. It is the Foundation's position that Mr. Junker both initiated the payments and received the payments and would therefore be subject to both the 10% and 25% initial excise taxes imposed by Internal Revenue Code Section 4958. The excise taxes are payable to the Internal Revenue Service directly by Mr. Junker and are not owed by the Foundation. Excess Compensation Excess Benefit 10% 25% Total 2007 75,623 7,562 18,906 26,468 2008 10,755 1,076 2,689 3,765 2009 129,361 12,936 32,340 45,276 215,739 21,574 53,935 75,509 PROCESS USED BY ORGANIZATION TO REVIEW THIS FORM 990 PART VI, SECTION B, QUESTION 11B THE RETURN IS PREPARED INTERNALLY AND REVIEWED BY MANAGEMENT AND AN EXTERNAL ACCOUNTING FIRM. ONCE THE RETURN IS COMPLETED AND REVIEWED, THE FORM 990 IS PROVIDED TO THE BUDGET AND FINANCE COMMITTEE AND AUDIT AND COMPLIANCE COMMITTEE. AFTER THE COMMITTEES' REVIEW, THE RETURN IS RECOMMENDED TO THE BOARD OF DIRECTORS FOR THEIR APPROVAL. UPON APPROVAL BY THE BOARD OF DIRECTORS, THE RETURN IS FILED. COMPENSATION PROCESS PART VI, SECTION B, QUESTIONS 15A & 15B CEO COMPENSATION PROCESS - *COMPENSATION COMMITTEE DETERMINES COMPENSATION FIGURES *INDEPENDENT COMPENSATION CONSULTANT REVIEWS AND COMPARES TO COMPENSATION STUDY *FORM 990 OF COMPARABLE ORGANIZATIONS INCLUDED IN COMPENSATION CONSULTANT REVIEWS *EXECUTIVE DIRECTOR ENGAGED UNDER A WRITTEN EMPLOYMENT CONTRACT *ORGANIZATION PARTICIPATES ANNUALLY IN THE FOOTBALL BOWL ASSOCIATION SURVEY *COMPENSATION IS APPROVED ANNUALLY BY THE BOARD OF DIRECTORS AFTER A RECOMMENDATION BY THE COMPENSATION COMMITTEE. WE BELIEVE THESE ACTIONS CREATE A REBUTTABLE PRESUMPTION OF REASONABLE COMPENSATION. KEY EMPLOYEE COMPENSATION PROCESS- *CEO REVIEWS PERFORMANCE AND DETERMINES COMPENSATION *COMPENSATION AMOUNT TO BOARD OF DIRECTOR CHAIR FOR APPROVAL *INDEPENDENT COMPENSATION CONSULTANT REVIEWS AND COMPARES TO COMPENSATION STUDY DISCLOSURE PART VI SECTION C QUESTION 19 The organization makes public its governing documents, including its bylaws and 501(c)(3) determination letter, as well as key policies such as the code of conduct, code of ethics, conflict of interest, expense reimbursement, political activity, record retention and destruction, ticket policy and whistleblower protection. All documents are available for public viewing at http://www.fiestabowl.org/about-us/governance/php GOVERNING BODY AND MANAGEMENT PART VI SECTION A QUESTION 9 THE FOLLOWING OFFICERS CANNOT BE REACHED AT THE ORGANIZATION'S MAILING ADDRESS, BUT CAN BE REACHED AT THE ADDRESSES LISTED BELOW: JOHN JUNKER C/O MARISCAL, WEEKS, MCINTYRE & FRIEDLANDER, P.A. - ATTN GARY L. BIRNBAUM 2901 NORTH CENTRAL AVENUE, SUITE 200 PHOENIX, ARIZONA 85012 NATALIE WISNESKI C/O JAMES BURKE QUARLES & BRADY LLP ONE RENAISSANCE SQUARE TWO NORTH CENTRAL AVENUE PHOENIX, ARIZONA 85004-2391 POLITICAL CAMPAIGN ACTIVITIES Part IV, Line 3 DURING THE PRIOR FISCAL YEAR (2010-2011), THE ORGANIZATION BECAME AWARE OF DIRECT AND INDIRECT POLITICAL CAMPAIGN ACTIVITIES RELATING TO PRIOR YEARS. THE ORGANIZATION CONTINUES TO WORK WITH REGULATORY AUTHORITIES TO RESOLVE ISSUES RELATED TO ACTIVITIES INCLUDING REQUESTING REPAYMENT AND PAYING ANY APPROPRIATE PENALTIES OR FINES. APPROPRIATE INTERNAL CONTROLS AND GOVERNANCE HAVE BEEN ADOPTED TO ENSURE THAT THIS WILL NOT OCCUR AGAIN. EXCESS BENEFIT TRANSACTION PART IV, LINE 25B DURING THE PRIOR FISCAL YEAR, THE ORGANIZATION BECAME AWARE OF POSSIBLE EXCESS BENEFIT TRANSACTIONS WITH DISQUALIFIED PERSONS THAT MAY HAVE OCCURRED AND MAY NOT HAVE BEEN REPORTED ON FORM 990. THE ORGANIZATION HAS ASCERTAINED THAT EXCESS BENEFITS WERE PROVIDED TO JOHN JUNKER. PLEASE SEE SCHEDULE L FOR DETAIL. CHANGES TO GOVERNING DOCUMENTS Part VI, Section A, Line 4 BEGINNING IN THE SPRING OF 2011, THE ORGANIZATION MADE SWEEPING CHANGES TO ITS BY-LAWS, POLICIES AND PROCEDURES. THESE POLICIES AND PROCEDURES ARE FOCUSED ON COMPLIANCE WITH ALL RULES AND REGULATIONS OF ITS VARIOUS GOVERNING BODIES, INCLUDING THE IRS, THE NCAA AND THE BCS. THESE CHANGES INCLUDED THE ESTABLISHMENT OF KEY GOVERNANCE COMMITTEES, INCLUDING BUDGET AND FINANCE, NOMINATING AND GOVERNANCE, VOLUNTEER OVERSIGHT AND CHARITABLE GIVING COMMITTEES. EACH HAS A CHARTER AND MEETS REGULARLY TO DISCUSS KEY MATTERS TO THE ORGANIZATION IN DEPTH. THESE COMMITTEES REPORT AT THE BOARD OF DIRECTORS MEETINGS. COPIES OF OUR UPDATED POLICIES AND BY-LAWS ARE AVAILABLE AT WWW.FIESTABOWL.ORG CONFLICT OF INTEREST Pt VI, Governance, Management, SECTION B, LINE 12c THE ORGANIZATION ANNUALLY REQUIRES ALL EMPLOYEES AND MEMBERS OF THE BOARD OF DIRECTORS TO COMPLETE A CONFLICT OF INTEREST DISCLOSURE AND SIGN THE CONFLICT OF INTEREST POLICY. COPIES OF ALL CONFLICT OF INTEREST STATEMENTS ARE PROVIDED TO THE AUDIT COMMITTEE AND CHIEF COMPLIANCE OFFICER. PROCEDURES ALSO INCLUDE REVIEWING TRANSACTIONS AGAINST BOTH THE FORMS SUBMITTED AND ALL KNOWN BUSINESS ASSOCIATIONS OF OUR BOARD MEMBERS. OUTSIDE APPOINTMENT OF GOVERNING BODY MEMBER PART VI, SECTION A, QUESTION 7A WITHIN THEIR SPONSORSHIP AGREEMENT OF THE FIESTA BOWL AND RELATED ACTIVITIES, THE FT. MCDOWELL YAVAPAI NATION RETAINS THE RIGHT TO APPOINT ONE MEMBER OF THE BOARD OF DIRECTORS. CURRENTLY, THAT SEAT IS FILLED BY THEIR PRESIDENT, DR CLINTON PATTEA. INDEPENDENCE OF BOARD MEMBERS FORM 990, PAGE 1, PART I, QUESTIONS 2 AND 3 AND SCHEDULE L THE ARIZONA SPORTS FOUNDATION, VALLEY OF THE SUN BOWL FOUNDATION, FIESTA EVENTS, INC. AND THE ARIZONA COLLEGE FOOTBALL CHAMPIONSHIP FOUNDATION HAVE A COMMON BOARD OF DIRECTORS. A BOARD MEMBER IS CONSIDERED INDEPENDENT IF THEY RECEIVE NO COMPENSATION AS AN EMPLOYEE AND NO REPORTABLE TRANSACTIONS ON SCHEDULE L. IF A BOARD MEMBER IS CONSIDERED NOT INDEPENDENT FOR ONE ORGANIZATION, THEY ARE CONSIDERED NOT INDEPENDENT FOR ALL RELATED ORGANIZATIONS. THERE WERE TWO TRANSACTIONS REPORTED ON SCHEDULE L FOR ARIZONA SPORTS FOUNDATION AND ONE FOR FIESTA EVENTS, INC. THEREFORE, 23 OF 26 VOTING MEMBERS WERE CONSIDERED INDEPENDENT AT YEAR END. UNDER THE POLICIES AND PROCEDURES OF THE ORGANIZATION, BOARD MEMBERS MUST RECUSE THEMSELVES FROM THE DISCUSSION AND VOTE OF ANY RELATED TRANSACTION. HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ALAN YOUNG TITLE:CHIEF OF STAFF HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ROBERT SHELTON TITLE:EXECUTIVE DIRECTOR HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CURT KRIZAN TITLE:CHIEF FINANCIAL OFFICER HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:STEPHANIE JARVIS TITLE:LEGAL COUNSEL & CHIEF COMP OFF HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:TRACY GUERRA TITLE:SR DIRECTOR OF GAME OPERATIONS HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:CHRISTINE MARTIN TITLE:DIR OF TEAM SVCS(THRU 8/17/11) HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:ANDREW BAGNATO TITLE:CHIEF OF COMMUNICATIONS HOURS:28 HOURS DEVOTED FOR RELATED ORGANIZATION FORM 990 PART VII NAME:PEGGY EYANSON TITLE:SR DIRECTOR OF BUS. OPERATIONS HOURS:28 ARIZONA COLLEGE FOOTBALL CHAMP'SHIP FOUN 7135 E CAMELBACK RD STE 190 SCOTTSDALE AZ 85251 203705626 COLLEGE BOWL AZ 501(c)(3) 9 NA true VALLEY OF THE SUN BOWL FOUNDATION 7135 E CAMELBACK RD STE 190 SCOTTSDALE AZ 85251 860902767 COLLEGE BOWL AZ 501(c)(3) 9 NA true FIESTA EVENTS INC 7135 E CAMELBACK RD STE 190 SCOTTSDALE AZ 85251 860666998 EVENTS AZ 501(c)(3) 9 NA true false false false false false false false false false false false false true true false true true true FIESTA EVENTS INC M 203474 COST FIESTA EVENTS INC N 956894 COST FIESTA EVENTS INC P 239017 COST FIESTA EVENTS INC Q 267073 COST FIESTA EVENTS INC R 75480 COST VALLEY OF THE SUN BOWL FOUNDATION M 198106 COST VALLEY OF THE SUN BOWL FOUNDATION N 915981 COST VALLEY OF THE SUN BOWL FOUNDATION P 172489 COST VALLEY OF THE SUN BOWL FOUNDATION Q 2125675 COST VALLEY OF THE SUN BOWL FOUNDATION R 86532 COST ARIZONA COLLEGE FOOTBALL CHAMPIONSHIP FDN M 98431 COST ARIZONA COLLEGE FOOTBALL CHAMPIONSHIP FDN N 505494 COST ARIZONA COLLEGE FOOTBALL CHAMPIONSHIP FDN P 255207 COST ARIZONA COLLEGE FOOTBALL CHAMPIONSHIP FDN Q 12613159 COST ARIZ COLLEGE FOOTBALL CHAMPI 7135 E CAMELBACK ROAD SUITE 190 SCOTTSDALE AZ 85251 203705626 X 0 0 0 857306 857306 153596 38399 0 0 0 FIESTA EVENTS INC 7135 E CAMELBACK ROAD SUITE 190 SCOTTSDALE AZ 85251 860666998 X 0 0 0 6910277 6910277 495514 123879 0 0 0 VALLEY OF THE SUN BOWL FOUND 7135 E CAMELBACK ROAD SUITE 190 SCOTTSDALE AZ 85251 860902767 X 0 0 0 10215979 10215979 660799 165200 0 0 0 THE ARIZONA SPORTS FOUNDATIO 7135 E CAMELBACK ROAD SUITE 190 SCOTTSDALE AZ 85251 860253821 X 0 0 0 14156144 14156144 857807 214452 0 0 0