2012-03-29T09:15:57-05:00 2011-09-30 CLIFTONLARSONALLEN LLP 2900 SOUTH QUINCY ST SUITE 150 ARLINGTON VA 22206 990 2010-10-01 530196547 NATIONAL DEFENSE INDUSTRIAL ASSOCIATION NATI 7035221820 2111 WILSON BOULEVARD NO 400 ARLINGTON VA 222013061 BRONISLAW PROKUSKI JR 7035221820 2012-03-18 1 7039985100 2010 2016-02-24 21:20:13Z LAWRENCE P FARRELL JR 2111 WILSON BOULEVARD NO 400 ARLINGTON VA 222013061 43561395 0 X WWW.NDIA.ORG X 1919 DC TO PROMOTE THE INTEREST OF DEFENSE PREPAREDNESS. 29 29 82 90000 1405147 -2000 119121 343814 34424920 36373380 989613 514699 898653 882785 36432307 38114678 70000 76925 0 0 9999779 10708253 0 0 0 22680458 23688285 32750237 34473463 3682070 3641215 50634789 54653970 18905827 20534402 31728962 34119568 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 20893437 76925 31793073 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. 3357765 0 2964140 CHAPTERS: 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. 2502118 0 1616167 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. 26753320 1 0 0 1 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 0 1 38 0 82 1 1 1 0 0 0 0 0 0 0 0 0 X 29 29 0 0 0 0 1 1 0 1 1 0 1 1 1 1 1 1 1 1 1 1 0 VA X BRONISLAW PROKUSKI JR 7035221820 2111 WILSON BOULEVARD NO 400 ARLINGTON VA 222013061 JOHN D ILLGEN 1.00 X X 0 0 0 SEAN O'KEEFE 1.00 X X 0 0 0 HAROLD L YOH III 1.00 X X 0 0 0 BRONISLAW PROKUSKI JR 40.00 X X 658067 0 49234 RICHARD BENSINGER 1.00 X 0 0 0 DALE W CHURCH 1.00 X 0 0 0 RICHARD A CODY 1.00 X 0 0 0 MARGARET A DIVIRGILIO 1.00 X 0 0 0 STEVEN F GAFFNEY 1.00 X 0 0 0 MAURICE A GAUTHIER 1.00 X 0 0 0 HELEN GREINER 1.00 X 0 0 0 GERALD G HARVEY JR 1.00 X 0 0 0 RICHARD L HAVER 1.00 X 0 0 0 RICHARD ANDREW HOVE 1.00 X 0 0 0 DWAYNE N JUNKER 1.00 X 0 0 0 STEPHEN E KELLY 1.00 X 0 0 0 JOANNA T LAU 1.00 X 0 0 0 JAMES T MCALEESE 1.00 X 0 0 0 RICHARD D MCCONN 1.00 X 0 0 0 ANDREW M MCHUGH 1.00 X 0 0 0 JOHN H MOELLERING 1.00 X 0 0 0 WILLIAM B MOORE 1.00 X 0 0 0 MARGARET MYERS 1.00 X 0 0 0 ARNOLD J PUNARO 1.00 X 0 0 0 JOE R REEDER 1.00 X 0 0 0 GRAHAM E SHIRLEY 1.00 X 0 0 0 FREDERICK M STRADER 1.00 X 0 0 0 BOBBY STURGELL 1.00 X 0 0 0 KENNETH J WOLBECK 1.00 X 0 0 0 LAWRENCE P FARRELL JR 40.00 X 1049964 0 42018 DAVID E CHEESEBROUGH 40.00 X 174479 0 67589 FREDERICK L LEWIS 40.00 X 339153 0 33617 BARRY D BATES 40.00 X 334409 0 37690 SANDRA I ERWIN 40.00 X 189861 0 40858 JAMES E MCINERNEY JR 40.00 X 191875 0 104029 DINO K PIGNOTTI 40.00 X 165928 0 99039 PETER M STEFFES 40.00 X 221791 0 127844 THOMAS NORDBY 40.00 X 206443 0 61820 SASAN OGHLIDOS 40.00 X 163325 0 37985 E RICHARD TAYLOR 40.00 X 143714 0 36820 DONALD B ROULSTONE 40.00 X 141256 0 31079 SAMUEL CAMPAGNA 40.00 X 141149 0 33101 SCOTT J REKDAL 40.00 X 140341 0 49273 LUELLEN HOFFMAN 40.00 X 127900 0 28361 4389655 0 880357 17 0 1 0 0 343814 343814 MEETINGS 900099 19780690 19780690 EXHIBITS 900099 9994335 9994335 MEMBERSHIP DUES 900099 3394793 3394793 PUBLICATIONS 541800 1616167 211020 1405147 SPONSORSHIPS 900099 1587395 1587395 36373380 772949 772949 5188467 5446717 -258250 -258250 -258250 MISCELLANEOUS REVENUE 900099 497487 497487 CHAPTER MISC REVENUE 900099 385298 385298 882785 38114678 34968233 1405147 1397484 20300 20300 56625 56625 2154797 1648012 506785 7343417 4148133 3195284 419298 255197 164101 427769 308252 119517 362972 220915 142057 37891 3726 34165 56947 5599 51348 127268 8268 119000 145968 145968 1515477 1325504 189973 556633 556633 1938328 1170156 768172 835796 404741 431055 874042 710058 163984 11454445 11407632 46813 72590 26672 45918 EXHIBIT EXPENSES 2173775 2173775 CHAPTER EXPENSES 1197543 1197543 PUBLICATIONS 988154 988154 SPONSORSHIP 253435 253435 MEMBERSHIP SERVICES 192996 192996 1266997 -329006 1596003 34473463 26753320 7720143 0 750 750 15204298 17710037 564130 514493 1726157 1924043 2800468 2644973 173981 155495 29264209 29894956 3176682 3877260 524582 576936 50634789 54653970 4375347 5490401 11235126 11166741 3295354 3877260 18905827 20534402 X 30446983 32803610 661479 692458 620500 623500 31728962 34119568 50634789 54653970 X 3641215 -1250609 X 0 1 1 X 0 X 2601242 2863831 2941193 3299425 3655107 15360798 24559531 27704932 26107878 29839922 31573440 139785703 27160773 30568763 29049071 33139347 35228547 155146501 0 0 0 155146501 1029319 938237 669827 722450 772949 4132782 1029319 938237 669827 722450 772949 4132782 799795 511349 786507 898653 1145563 4141867 28989887 32018349 30505405 34760450 37147059 163421150 0.94940 0.94940 0.02530 0.02760 X SCHEDULE A, PART II, LINE 12, EXPLANATION OF OTHER INCOME: MISCELLANEOUS INCOME 0 0 0 0 0 0 7768 119500 127268 34346195 34473463 1000000 250000 0 0 1000000 1000000 1000000 1000000 4000000 6000000 243667 109510 120365 127268 600810 250000 250000 250000 250000 1000000 1500000 750 490 555 7768 9563 822237 3000 34979 860216 756445 0 65792 822237 721586 7000 27859 756445 0.82500 0.17500 1 0 2800468 2644973 155495 155495 DEFERRED COMPENSATION INVESTMENT 3877260 F 3877260 DEFERRED COMPENSATION OBLIGATION 3877260 3877260 38114678 34473463 3641215 -1080445 -170164 -1250609 2390606 34009551 0 34009551 145968 3959159 4105127 38114678 30969730 0 30969730 145968 3357765 3503733 34473463 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: THE ASSOCIATION IS EXEMPT FROM THE PAYMENT OF INCOME TAXES ON ITS EXEMPT ACTIVITIES UNDER SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE (IRC). THE INTERNAL REVENUE SERVICE HAS DETERMINED THAT THE ASSOCIATION IS NOT A PRIVATE FOUNDATION AS THE ASSOCIATION IS CLASSIFIED UNDER SECTION 509(A)(2) OF THE IRC. HOWEVER, THE ASSOCIATION IS SUBJECT TO TAXES ON ITS UNRELATED BUSINESS ACTIVITIES. THE ASSOCIATION HAS ADOPTED THE GUIDANCE IN THE INCOME TAX STANDARD REGARDING THE RECOGNITION AND MEASUREMENT OF UNCERTAIN TAX POSITIONS. THE ADOPTION OF THIS STANDARD HAD NO IMPACT ON THE ASSOCIATION'S FINANCIAL STATEMENTS. THE ASSOCIATION FILES AS A TAX-EXEMPT ORGANIZATION. SHOULD THAT STATUS BE CHALLENGED IN THE FUTURE, THE ASSOCIATION'S 2008, 2009, AND 2010 TAX YEARS ARE OPEN FOR EXAMINATION BY THE IRS. SCHEDULE D, PART XII, LINE 4B: DESCRIPTION OF OTHER CHAPTER REVENUE $3,594,292 INVESTMENT INCOME $364,867 SCHEDULE D, PART XIII, LINE 4B: DESCRIPTION OF OTHER CHAPTER EXPENSES $3,357,765 1 WOUNDED WARRIOR PROJECT 4899 BELFORT ROAD JACKSONVILLE FL 32256 202370934 501(C)(3) 10300 0 N/A N/A GENERAL DONATION TO SUPPORT THE OBJECTIVE OF PROVIDING PROGRAMS AND SERVICES TO SEVERELY INJURED SERVICE MEMBERS DURING THE TIME BETWEEN ACTIVE DUTY AND TRANSITION TO CIVILIAN LIFE. SPECIAL OPERATIONS WARRIOR FOUNDATION PO BOX 13483 TAMPA FL 33681 521183585 501(C)(3) 10000 0 N/A N/A GENERAL DONATION TO SUPPORT THE OBJECTIVE OF PROVIDING SCHOLARSHIP GRANTS AND EDUCATIONAL AND FAMILY COUNSELING TO THE SURVIVING CHILDREN OF SPECIAL OPERATIONS PERSONNEL WHO DIE IN OPERATIONAL OR TRAINING MISSIONS AND IMMEDIATE FINANCIAL ASSISTANCE TO SEVERELY WOUNDED SPECIAL OPERATIONS PERSONNEL AND THEIR FAMILIES. 2 0 SKIBBIE SCHOLARSHIP 1 10000 0 N/A I/ITSEC SCHOLARSHIP 1 10000 0 N/A USW FELLOWSHIP AWARD 3 18000 0 N/A HORIZONS SCHOLARSHIP AWARD 2 18625 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. X X X X X 0 0 0 0 0 0 0 0 0 BRONISLAW PROKUSKI JR 226618 0 370000 0 61449 0 41150 0 8084 0 707301 0 0 0 LAWRENCE P FARRELL JR 349534 0 549780 0 150650 0 33300 0 8718 0 1091982 0 0 0 DAVID E CHEESEBROUGH 114504 0 59975 0 0 0 51147 0 16442 0 242068 0 0 0 FREDERICK L LEWIS 178446 0 132500 0 28207 0 32922 0 695 0 372770 0 0 0 BARRY D BATES 175781 0 132500 0 26128 0 33333 0 4357 0 372099 0 0 0 SANDRA I ERWIN 119916 0 68000 0 1945 0 34700 0 6158 0 230719 0 0 0 JAMES E MCINERNEY JR 139195 0 47302 0 5378 0 97768 0 6261 0 295904 0 0 0 DINO K PIGNOTTI 107473 0 58455 0 0 0 78195 0 20844 0 264967 0 0 0 PETER M STEFFES 146978 0 62737 0 12076 0 121811 0 6033 0 349635 0 0 0 THOMAS NORDBY 131805 0 72500 0 2138 0 40696 0 21124 0 268263 0 0 0 SASAN OGHLIDOS 118325 0 45000 0 0 0 32982 0 5003 0 201310 0 0 0 E RICHARD TAYLOR 98714 0 45000 0 0 0 28711 0 8109 0 180534 0 0 0 DONALD B ROULSTONE 91256 0 50000 0 0 0 26434 0 4645 0 172335 0 0 0 SAMUEL CAMPAGNA 91149 0 50000 0 0 0 26835 0 6266 0 174250 0 0 0 SCOTT J REKDAL 115341 0 25000 0 0 0 30086 0 19187 0 189614 0 0 0 LUELLEN HOFFMAN 82900 0 45000 0 0 0 22203 0 6158 0 156261 0 0 0 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 THREE 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 THE BYLAWS, IN ADDITION IT SHALL REVIEW ALL NEW REGULAR, INTERNATIONAL, AND ASSOCIATE CORPORATE MEMBERSHIP APPLICATIONS 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, THE NDIA AUDIT COMMITTEE, 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 LAST REVISION BEING IN NOVEMBER, 2011. 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, 2011. 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. THERE HAS BEEN NO CHANGE IN THE PRESIDENT'S BASE COMPENSATION FOR THE LAST FIVE FISCAL YEARS. 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, 2011 FOR THE OTHER OFFICERS: AFFILIATE PRESIDENTS, D. CHEESEBROUGH AND F. LEWIS; AND VICE PRESIDENTS, B. BATES, S. ERWIN, T.A. 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. THE MOST RECENT REVIEW WAS IN NOVEMBER, 2011. 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 5: NET UNREALIZED LOSSES ON INVESTMENTS: -1,080,445. CHAPTER ADJUSTMENTS -243. CHANGE IN PREPAID PENSION ASSET -169,921. TOTAL TO FORM 990, PART XI, LINE 5: -1,250,609.