2012-07-09T13:52:38-05:00 2010-08-31 BDO USA LLP 633 THIRD AVENUE 13TH FLOOR NEW YORK NY 10017 990 2009-09-01 311151545 ISTA INSURANCE TRUST ISTA 3172633330 150 WEST MARKET STREET No 830 INDIANAPOLIS IN 46204 EDWARD SULLIVAN 3172633330 2012-07-09 1 EDUARDO SINGERMAN CPA 2123155000 2009 2016-02-24 21:20:13Z EDWARD SULLIVAN 150 W MARKET ST INDIANAPOLIS IN 46204 3147023 0 X N/A X 1985 IN TO PROVIDE AFFORDABLE HEALTH AND WELFARE INSURANCE COVERAGE TO EMPLOYEES OF PARTICIPATING INDIANA K-12 PUBLIC SCHOOLS. X 9 5 0 0 -95336 -120220 0 84707013 1442493 -2062382 -212444 -120514 -116702 82524117 1113347 0 66487462 1475659 0 0 0 19305062 3258194 85792524 4733853 -3268407 -3620506 13527108 14157983 56789451 57678693 -43262343 -43520710 TO PROVIDE AFFORDABLE HEALTH AND WELFARE INSURANCE COVERAGE TO EMPLOYEES OF PARTICIPATING INDIANA K-12 PUBLIC SCHOOLS. 0 0 1961377 THE I.S.T.A. INSURANCE TRUST PROVIDES BENEFITS INCLUDING LIFE, AD&D, VISION AND LONG-TERM DISABILITY TO THE EMPLOYEES OF PARTICIPATING INDIANA K-12 PUBLIC SCHOOLS. 1961377 0 0 0 0 0 0 0 0 1 0 0 0 0 1 0 0 0 0 0 0 0 0 1 0 0 0 0 0 1 0 0 0 1 0 1 0 0 1 8 0 1 0 0 0 0 0 0 9 5 1 1 1 0 0 1 0 1 0 1 0 1 0 0 0 0 0 0 IN X EDWARD SULLIVAN 2023558658 150 WEST MARKET STREET SUITE 900 INDIANAPOLIS IN 46204 X R STEPHEN GOOKINS 1.00 X 0 0 0 KATHY PARKS 1.00 X 0 5000 0 EDWARD SULLIVAN 1.00 X 0 118400 0 TOM EDINGTON 1.00 X 0 0 0 J SUE KELLY 1.00 X 0 0 0 DAVID ORENTLICHER 1.00 X 0 0 0 BRENDA PIKE 1.00 X 0 0 0 NATHAN SCHNELLENBERGER 1.00 X 0 168065 66047 JOHN F SPRINGER 1.00 X 0 0 0 FREDERICK J SUMAN 1.00 X 0 0 0 ANN CLARK 1.00 X 0 0 0 WARREN WILLIAMS 1.00 X 0 79734 40031 ROBERT FRANKEL 20.00 X 0 84382 31856 JUDITH BRIGANTI 0.00 X 0 12951 0 BRUCE ROGERS 0.00 X 0 14203 24653 0 482735 162587 0 1 1 0 UNITED HEALTHCARE (UHC) 7440 WOODLAND DRIVE DEPT 100 INDIANAPOLIS IN 46278 CLAIM ADMINISTRATION 1379847 NOVIA CARE CLINICS 429 NORTH PENNSYLVANIA STREET INDIANAPOLIS IN 46204 MEDICAL CONSULTING 196684 MORGAN STANLEY 280 EAST 96 STREET INDIANAPOLIS IN 46240 CUSTODIAN AND INVESTMENT MANAGEMENT 123939 ICE MILLER PO BOX 663633 INDIANAPOLIS IN 46266 LEGAL COUNSELING 114971 HUTTLESTON BENEFIT GROUP INC 7941 TREE LANE SUITE 200 MADISON WI 53717 ACTUARIAL AND CONSULTING 102507 5 INSURANCE PREMIUMS 900099 1442493 1442493 1442493 101 101 1821131 2033676 -212545 -212545 21366 -233911 PASS THROUGH LOSS FN 1 900001 -116702 -116702 -116702 1113347 1442493 -95336 -233810 1475659 1475659 56627 56627 2298860 2298860 331536 331536 27163 27163 1138 1138 47897 47897 INSURANCE PREMIUMS FN 2 485718 485718 MISCELLANOUS EXPENSES 9255 9255 4733853 1961377 2772476 0 6866 921170 746819 171949 17324 175907 11365273 13211067 1068716 0 13527108 14157983 692352 168638 56097099 57510055 56789451 57678693 X 0 0 0 0 -43262343 -43520710 -43262343 -43520710 13527108 14157983 X 0 0 0 0 HEDGE FUNDS 111081 F PRIVATE EQUITY FUNDS 13099986 F 13211067 LONG-TERM DISABILITY RESERVE 35280000 RETIRED LIFE RESERVE 170000 CLAIMS STABILIZATION RESERVE 7168662 AMOUNTS DUE TO AFFILIATES 14891393 57510055 1113347 4733853 -3620506 3266803 95336 3362139 -258367 Part XI, Line 8 - Other Adjustments: PASS-THROUGH LOSSES FROM PARTNERSHIPS FROM SCHEDULES K1, FORM 1065 CENTRAL AMERICA AND THE CARIBBEAN INVESTMENTS 0 0 0 0 0 0 NATHAN SCHNELLENBERGER 0 133890 0 0 0 34175 0 28115 0 37932 0 234112 0 0 WARREN WILLIAMS 0 73231 0 0 0 6503 0 15378 0 24653 0 119765 0 0 ROBERT FRANKEL 0 79547 0 0 0 4835 0 16705 0 15151 0 116238 0 0 JUDITH BRIGANTI 0 0 0 0 0 12951 0 0 0 0 0 12951 0 0 BRUCE ROGERS 0 0 0 0 0 14203 0 0 0 24653 0 38856 0 0 ISTA ASC COMMON CONTROL 27860 ADMINISTRATIVE FEE 0 ISTA FSC COMMON CONTROL 27860 ADMINISTRATIVE FEE 0 ISTA FSC COMMON CONTROL 765963 COLLECTION OF NET RECEIVABLE 0 ISTA ASC COMMON CONTROL 302753 COLLECTION OF NET RECEIVABLE 0 INDIANA STATE TEACHERS ASSOCIATION CONTROLLING ORGANIZATION 7862956 ADVANCES TO FUND: A) LONG-TERM DISABILITY CLAIMS, B) CAPITAL CALLS, C) LEGAL FEES 0 ISTA ASC COMMON CONTROL 475 INSURANCE PREMIUMS RECEIVED 0 INDIANA STATE TEACHERS ASSOCIATION CONTROLLING ORGANIZATION 67557 INSURANCE PREMIUMS RECEIVED 0 INTEREST IN HEDGE FUND 2009-10-01 63892 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2009-10-01 8500 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2009-11-25 7836 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2009-12-08 232267 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2010-01-26 1272899 NET ASSET VALUE 205842677 UBS ACTIVIST PARTNERS LLC 1285 AVENUE OF THE AMERICAS NEW YORK NY 10019 LLC INTEREST IN HEDGE FUND 2010-01-28 8367 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2009-12-29 25807 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2009-10-09 7099 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2010-03-17 4383 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2010-04-23 6641 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2010-05-12 141454 NET ASSET VALUE 205842677 UBS ACTIVIST PARTNERS LLC 1285 AVENUE OF THE AMERICAS NEW YORK NY 10019 LLC INTEREST IN HEDGE FUND 2010-06-25 8899 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2010-08-02 5313 NET ASSET VALUE SAIL PACIFIC EXPLORER FUND S CLASS P O BOX 513 STRATHVALE HOUSE GEORGE TOWN GRAND CAYMAN CJ KY 1-1106 IRC SECTION 1297 INTEREST IN HEDGE FUND 2010-08-05 1629 NET ASSET VALUE 141832969 MERIDIAN DIVERSIFIED FUND LP 20 CORPORATE WOODS BLVD ALBANY NY 12211 LIMITED PARTNERSHIP INTEREST IN HEDGE FUND 2010-02-12 2101 NET ASSET VALUE 141832969 MERIDIAN DIVERSIFIED FUND LP 20 CORPORATE WOODS BLVD ALBANY NY 12211 LIMITED PARTNERSHIP INTEREST IN HEDGE FUND 2010-05-11 2659 NET ASSET VALUE 141832969 MERIDIAN DIVERSIFIED FUND LP 20 CORPORATE WOODS BLVD ALBANY NY 12211 LIMITED PARTNERSHIP 0 0 0 0 Form 990, Part VI SECTION B, LINE 15. THE I.S.T.A. INSURANCE TRUST DOES NOT HAVE PAID EMPLOYEES OR OFFICERS. Form 990, Part VI LINE 9: SEE CONTACT INFORMATION BELOW Form 990, Part VI, Section A, line 2 INDIVIDUAL'S NAME: BRENDA PIKE TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: NATHAN SCHNELLENBERGER TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: BRENDA PIKE TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: KATHY PARKS TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: BRENDA PIKE TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: ANN CLARKE TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: BRENDA PIKE TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: EDWARD SULLIVAN TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: NATHAN SCHNELLENBERGER TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: KATHY PARKS TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: NATHAN SCHNELLENBERGER TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: ANN CLARK TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: NATHAN SCHNELLENBERGER TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: EDWARD SULLIVAN TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: KATHY PARKS TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: ANN CLARK TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: KATHY PARKS TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: EDWARD SULLIVAN TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP INDIVIDUAL'S NAME: EDWARD SULLIVAN TITLE OR ROLE: TRUSTEE INDIVIDUAL'S NAME: ANN CLARK TITLE OR ROLE: TRUSTEE EXPLANATION OF RELATIONSHIP: BUSINESS RELATIONSHIP Form 990, Part VI, Section A, line 3 ISTA ADMINISTRATIVE SERVICES CORPORATION ADMINISTERS THE CLAIMS FOR THE I.S.T.A. INSURANCE TRUST PRODUCTS. ISTA FINANCIAL SERVICES CORPORATION PROVIDES FINANCIAL SERVICES FOR THE I.S.T.A. INSURANCE TRUST PRODUCTS. Form 990, Part VI, Section A, line 4 ON OCTOBER 29, 2009, THE BOARD OF TRUSTEES APPROVED A RESOLUTION TO AMEND THE DECEMBER 14, 2007 REVISED BY-LAWS. THE AMENDMENTS CONSISTED OF THE FOLLOWING: 1. THE CHIEF EXECUTIVE OFFICER (THE "CEO") OF THE TRUST WILL BE DELEGATED ALL OF THE FUNCTIONS OF THE OFFICERS OF THE BOARD OF TRUSTEES. IN PERFORMING THOSE FUNCTIONS, THE CEO WILL BE RESPONSIBLE FOR PROVIDING DETAILED REPORTS TO THE BOARD OF TRUSTEES OF ALL ACTIVITIES TAKEN ON BEHALF OF THE TRUST AND FOR CARRYING OUT ANY POLICIES OR DIRECTIVES OF THE BOARD OF TRUSTEES TO THE EXTENT CONSISTENT WITH THE CEO'S FIDUCIARY RESPONSIBILITIES. 2. UNLESS THE BOARD OF TRUSTEES DECIDES OTHERWISE ON A CASE-BY-CASE BASIS, MEETINGS WILL BE HELD TELEPHONICALLY THROUGH CONFERENCE CALLS OR THE INTERNET IN WHICH THE TRUSTEES CAN HEAR AND SPEAK TO EACH OTHER IN REAL TIME. 3. SECTION 4.7 OF THE REVISED BYLAWS IS CLARIFIED TO PROVIDE EXPRESSLY THAT THE BOARD OF TRUSTEES MAY ACT ON THE BASIS OF A MAJORITY VOTE OF A QUORUM PRESENT AT ANY MEETING OF THE BOARD OF TRUSTEES OR BY THE CONSENT PROCEDURES SET FORTH IN SECTION 4.9 OF THE REVISED BYLAWS. 4. THERE WILL BE NO DIRECTOR OF THE TRUST. ALL OF THE FUNCTIONS OF THE DIRECTOR SET FORTH IN THE REVISED BYLAWS WILL BE DELEGATED TO THE CEO. Form 990, Part VI, Section A, line 7a EXCEPT AS PROVIDED IN SUBSECTION (b) of SECTION 7.1 OF THE AMENDEMENT OF THE AGREEMENT AND DECLARATION OF TRUST, THE PRESIDENT OF THE INDIANA STATE TEACHERS ASSOCIATION (THE "ISTA") HAS THE RIGHT TO APPOINT 6 TRUSTEES WITH THE APPROVAL OF THE BOARD OF DIRECTORS OF THE ISTA. ONE OF THE TRUSTEES APPOINTED SHALL BE A SCHOOL ADMINISTRATOR, AND IN NO CASE ANY OF THE 6 TRUSTEES SHALL BE ACTIVELY SERVING IN THE BOARD OF DIRECTORS OF THE ISTA. UNDER SUBSECTION (b) EFFECTIVE MAY 15, 2009, AND CONTINUING FOR THE DURATION OF THE TRUSTEESHIP THEN ESTABLISHED BY THE NATIONAL EDUCATION ASSOCIATION OVER ISTA AND PURSUANT TO THE BYLAWS OF THE NATIONAL EDUCATION ASSOCIATION, THE I.S.T.A. INSURANCE TRUST SHAL BE ADMINISTERED BY THE TRUSTEE APPOINTED BY THE NATIONAL EDUCATION ASSOCIATION FOR PURPOSES OF SUCH TRUSTEESHIP (EDWARD SULLIVAN). ON SEPTEMBER 23, 2009, THE MARRION SUPERIOR COURT APPOINTED 8 ADDITIONAL TRUSTEES. Form 990, Part VI, Section A, line 8b THERE WERE NO COMMITTEES WITH AUTHORITY TO ACT ON BEHALF OF THE GOVERNING BODY. Form 990, Part VI, Section B, line 11 BEFORE THE FORM 990 IS FILED WITH THE IRS, EDWARD SULLIVAN, TRUSTEE & CEO, REVIEWED THE FORM 990 AND CONSULTED WITH LEGAL COUNSEL. A COPY OF THE FORM 990 WAS PROVIDED TO EACH TRUSTEE WHO WAS AFFORDED AN OPPORTUNITY TO ASK QUESTIONS ABOUT THE RETURNS, PRIOR TO FILING, AT A MEETING OF THE BOARD OF TRUSTEES. Form 990, Part VI, Section C, line 19 THE I.S.T.A. INSURANCE TRUST MAKES ITS GOVERNING DOCUMENTS (THAT IS, THE AMENDMENT AND RESTATEMENT OF THE AGREEMENT AND DECLARATION OF TRUST ESTABLISHING THE I.S.T.A. INSURANCE TRUST AND THE BYLAWS) AVAILABLE TO THE PUBLIC UPON REQUEST. THE I.S.T.A. INSURANCE TRUST DOES NOT HAVE A CONFLICT OF INTEREST POLICY OR AUDITED FINANCIAL STATEMENTS. Form 990, Part VII Contact Addresses for Officers, Directors, Etc R. STEPHEN GOOKINS - 412 E. CARR STREET, MILAN, IN 47031. TOM EDINGTON - 4538 E. Fox Run Drive, Syracuse, IN 46567. J. SUE KELLY - 1475 KENDALE BLVD., EAST LANSING, MI 48823. DAVID ORENTLICHER - INDIANA UNIVERSITY SCHOOL OF LAW - 530 W. NEW YORK ST, INDIANAPOLIS, IN 46202. JOHN F. SPRINGER - 41 SUNFIRE AVENUE, CAMP HILL, PA 17011. FREDERICK J. SUMAN - 975 EASTHAM WAY, #101, NAPLES, FL 34104. ANN CLARK - 20 ASHBURTON PLACE, BOSTON, MA 02108. WARREN WILLIAMS - 5 BELTON COURT, HILTON HEAD ISLAND, SC 29926. ROBERT FRANKEL - 7325 OAKBAY DRIVE, NOBLESVILLE, IN 46062. JUDITH BRIGANTI - 316 SUNSET COURT, WAKARUSA, IN 46573. BRUCE ROGERS - 14709 OSBORNE RD, BREMEN, IN 46506. FORM 990, PART VII, SECTION A, LINE 1A, COLUMN B: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS EDWARD SULLIVAN: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: 39 HOURS KATHY PARKS: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: 39 HOURS BRENDA PIKE: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: 39 HOURS (BEGINNING IN JANUARY 2010) NATHAN SCHNELLENBERGER: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: 39 HOURS WARREN WILLIAMS: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: 39 HOURS (BASED ON CALENDAR YEAR 2009 AND ENDING ON MAY 13, 2009) ROBERT FRANKEL: AVERAGE HOURS PER WEEK DEVOTED TO RELATED ORGANIZATIONS: 20 HOURS (BASED ON CALENDARY YEAR 2009 AND ENDING ON MAY 2, 2009) FORM 990, PART VIII, LINE 11A: MISCELLANEOUS REVENUE FOOTNOTE 1: PASS-THROUGH LOSS REFERS TO PASS-THROUGH LOSSES FROM PARTNERSHIPS FROM SCHEDULES K1, FORM 1065. FORM 990, PART IX, LINE 24A OTHER EXPENSES FOOTNOTE 2: INSURANCE PREMIUMS REFERS TO LIFE INSURANCE PREMIUMS PAID. INDIANA STATE TEACHERS ASSOCIATION 150 WEST MARKET STREET NO 900 INDIANAPOLIS IN 46204 351148612 LABOR ORGANIZATION THAT IMPROVES THE PROFESSIONAL STATUS OF SCHOOL EMPLOYEES IN 501(C)(5) INDIANA POLITICAL ACTION COMMITTEE FOR EDUCATION (I-PACE) 150 WEST MARKET STREET INDIANAPOLIS IN 46204 351712876 CONTRIBUTE TO CANDIDATES SUPPORTING PUBLIC EDUCATION IN INDIANA IN 527 INDIANA EDUCATORS' VEBA TRUST 150 WEST MARKET STREET INDIANAPOLIS IN 46024 383691211 TO PROVIDE A FUNDING SOURCE FOR POST RETIREMENT HEALTH CARE EXPENSES IN 501(C)(9) NATIONAL EDUCATION ASSOCIATION OF THE UNITED STATES 1201 16TH STREET NW 8TH FLOOR WASHINGTON DC 20036 530115260 LABOR ORGANIZATION - MISSION IS TO ADVOCATE FOR EDUCATION PROFESSIONALS DC 501(C)(5) ISTA ADMINISTRATIVE SERVICES CORPORATION 150 WEST MARKET STREET INDIANAPOLIS IN 46204 352003568 ADMINISTRATION OF CLAIMS FOR TRUST PRODUCTS IN C ISTA FINANCIAL SERVICES CORPORATION 150 WEST MARKET STREET INDIANAPOLIS IN 46204 351901242 FINANCIAL SERVICES PROVIDED FOR TRUST PRODUCTS IN C 0 0 0 0 1 0 0 0 0 0 1 1 1 1 0 0 0 1 Taxpayer: I.S.T.A. Insurance TrustEIN: 31-1151545Forms: 990 and 990-TTax Year: September 1, 2009 to August 31, 2010Date: July 9, 2012Reasonable Cause Explanation for Late Filed Return The forms 990 and 990-T for the fiscal year ending August 31, 2010 filed today, July 9, 2012, on behalf of the I.S.T.A. Insurance Trust (the "Trust") are late. The Trust respectfully submits that its delay in filing these forms was due to reasonable cause and was not the result of willful neglect. As explained below, the failure to file these returns timely was due to the complete re-evaluation and wind-down of the Trust's operations by newly appointed trustees and their newly retained service providers. The Trust is designed and operated as a voluntary employees' beneficiary association exempt from federal income tax under section 501(c)(9) of the Internal Revenue Code (the "Code"). The Trust was established in 1985 by the Indiana State Teachers Association (the "Association"), which is an employee organization exempt from federal income tax under section 501(c)(5) of the Code. The purpose of the Trust was to serve as a funding vehicle for medical, long term disability, dental, vision, and life insurance benefit programs maintained by Indiana public K-12 schools on behalf of their employees. These programs were financed solely through contributions made by the public school employers and their employees. In June and July of 2009, all of the Trust's operations with respect to these programs other than the life insurance programs were terminated except to the extent necessary to administer and fund incurred but not paid (i.e., "run-out") long term disability claims. The Trust's operations with respect to the life insurance programs are also being terminated and should end by the close of the Trust's current fiscal year (August 31, 2012). The Trust is controlled by a nine-person board of trustees appointed by the Superior Court in Marion County, Indiana. The cessation of the Trust's major operations with respect to the school district insurance programs was instigated by a May 2009 order by the Indiana Department of Insurance ("IDOI"), which - after conducting an investigation that found the Trust to be effectively insolvent - required the Trust to transfer as of June 30, 2009 the funding obligations with respect to new participant claims under the school medical insurance programs to a commercial carrier, along with a fixed amount of cash to cover the costs of the run-out claims for those claims incurred before June 30, 2009, and the stop loss insurance with respect to those run-out claims. After the transition date, the Trust remained responsible for satisfying the demands of the schools for refunds of the balance of their accumulated "Claims Stabilization Reserves" ("CSR"). The IDOI order in May 2009 not only required the Trust to begin an immediate wind down of its major operations, it caused the Trust to suffer an immediate liquidity crisis because it had practically no income or liquid assets to satisfy its monthly obligations to pay substantial long term disability run-out claims. At this point, the Association's parent affiliate, the National Education Association ("NEA"), placed the Association under trusteeship. The NEA-appointed trustee, Edward P. Sullivan, took control of all of the entities related to the Association, including the Trust. With respect to the Trust, Sullivan discovered as soon as he began serving as the trustee in May of 2009 that the books and records were in complete disarray as a result of the lack of adequate internal controls and unfounded characterizations and valuations of the Trust's liabilities. Developing accurate financial statements in this situation took a tremendous amount of time and resources. The difficulty of this task was made far greater by litigation between the Trust and the former fiduciaries and service providers - most of whom were responsible in some respect for the poor state in which the Trust's books and records were found when Sullivan took control. The litigation brought by the Trust - which lasted two and one-half years and ended with confidential settlements with each defendant - impeded the ability of the Trust to communicate with the defendant former fiduciaries and service providers. This imposed a heavy burden on the Trust's efforts to develop accurate financial statements because in many cases the former service providers maintained highly relevant information pertaining to those statements. For example, only through the litigation discovery process could the Trust obtain access to its former actuary's and auditor's work papers. The Trust also has been required to defend three lawsuits seeking refunds of the CSR balances attributable to the former school medical programs; those cases are still ongoing. The individuals responsible for preparing accurate financial statements for the Trust have been required to devote a substantial amount of their time to the litigation brought by and against the Trust. In addition, the Association, which historically has provided staff to assist the Trust, went through a complete reorganization, involving curtailment of services and reductions in force, which further affected the Trust's ability to complete the recreation of the financial statements and analyses.Once all of the obtainable information was gathered, it became apparent that (1) the Trust's liabilities would have to be re-characterized and re-valued and (2) the lack of appropriate internal controls and the failure to maintain appropriate financial records for the periods prior to May 2009 made it impossible for the Trust to engage in an audit process that would result in unqualified opinions regarding the accuracy and fairness of the Trust's books and records. Accordingly, the Trust instead retained an accounting firm, Salibello and Broder, which merged into BDO USA in the course of the work on this project, and an actuarial firm, Oliver Wyman, to prepare the most accurate reports and returns possible under the circumstances regarding the last full fiscal year ending before the Trustees took control of the Trust in May 2009 (the 2007 tax year ending August 31, 2008) and then to prepare such reports and returns for each fiscal year thereafter once the new base line was established. The submissions today are the culmination of this lengthy process during which best efforts were applied. In addition to this submission, the Trust also submitted amended 2007 Forms 990 and 990-T, Forms 926 (tax year ending August 31, 2008), Forms 8886 (tax year ending August 31, 2008), 2008 Forms 990 and 990-T, Forms 926 (tax year ending August 31, 2009), Forms 8886 (tax year ending August 31, 2009), and 2010 Forms 990 and 990-T (tax year ending August 31, 2011).Under the extraordinary circumstances surrounding the Trust's effective insolvency, its wind-down of its operations, and its completed and ongoing litigation over its past operations and assets, the Trust exercised ordinary business care and prudence, and its delay in filing this submission was due to reasonable cause and not willful neglect. For all of the reasons stated above, notwithstanding the diligent work of the trustees, the Association staff, and the professional service providers, the submission was filed as soon as practicable under the circumstances, but necessarily late. Accordingly, the Trust respectfully submits that the delay in filing is understandable and excusable, does not suggest any deviation from standards of ordinary business care and prudence, and was not due to willful neglect of the Trust's filing duties.