Sme Education Foundation

“MEMBERS OR SHAREHOLDERS SME is the sole shareholder.”

“MEMBERS OR STOCKHOLDERS WHO MAY ELECT All elected directors are approved by the SME executive compensation committee, and serve at the pleasure of the shareholder, SME.”

“GOVERNANCE DECISIONS The SME-EF bylaws are reviewed and approved by the SME Executive Compensation Committee.”

“FORM 990 REVIEW PROCESS SME and SME-EF utilize an independent accounting firm to complete the Form 990 and related schedules. A detailed review of the Federal Form 990 was performed by the Vice President, Finance, the Chief Financial Officer of SME and SME-EF. When the return was finalized, it was presented to the Executive Director/CEO, for discussion and review, where all comments were addressed. The return was then presented to the SME/SME-EF's combined Audit Committee of the Board of Directors for approval, as delegated per the governing bodies. The signed return was made available to all board members prior to filing.”

“CONFLICT OF INTEREST POLICY MONITORING & ENFORCEMENT All employees sign a disclosure form when they are hired, and are reminded of the policy annually. If a conflict arises, they are evaluated by the Vice President, Human Resources and the SME Executive Director/CEO. Corrective action is taken if required.”

“PROCESS FOR DETERMINING COMPENSATION All SME-EF staff are employed by SME, which also provides access to employee benefit plans. SME-EF reimburses SME for its employee costs. Benchmark studies have been performed when determining the compensation to be paid to the SME CEO/Executive Director and all top management. A third party performed an independent assessment using multiple local and national surveys. Target compensation is based on these benchmark studies. The Executive Compensation Committee conducts an annual performance review for the CEO/Executive Director against previously set objectives. The CEO/Executive Director conducts an annual performance review of all top management against previously set objectives. Merit increases are awarded annually by the Executive Compensation Committee for the CEO/Executive Director and all top management, based on performance reviews. Executive incentives are awarded based on the Executive Incentive Plan.”

“HOW DOCUMENTS ARE MADE AVAILABLE TO THE PUBLIC SME-EF makes their conflict of interest policy, articles of incorporation and audited financial statements available to the general public upon request. Normally electronic copies are provided; however, printed copies are also available.”

“ALLOCATION OF COMPENSATION AMONG ORGANIZATION AND RELATED ORG. THE EXECUTIVE DIRECTOR & CEO AND VICE PRESIDENT, FINANCE PROVIDES SERVICES TO BOTH SME-EF AND SOCIETY OF MANUFACTURING ENGINEERS, A RELATED ORGANIZATION WHO ALSO SERVES AS THE COMMON PAYMASTER. ADDITIONALLY, THE VICE PRESIDENT, SME-EF AND EDUCATIONAL PROGRAMS OFFICER PERFORM WORK SOLELY FOR SME-EF, BUT ARE COMPENSATED BY SOCIETY OF MANUFACTURING ENGINEERS. COMPENSATION FOR THESE INDIVIDUALS ON PART VII, SECTION A AND SCHEDULE J, PART II HAS BEEN ALLOCATED BASED OFF THE HOURS OF WORK PERFORMED FOR EACH ORGANIZATION. This is a change from the prior year reporting.”

“Organization's Mission a. To operate and act exclusively for the benefit of, to perform the functions of, and to carry out the purposes of the Society of Manufacturing Engineers, a tax-exempt charitable organization which is described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, (the "Code"), and which is not a private foundation, as such term is defined in Code Section 509, pursuant to Code Section 509(a)(2). b. The SME Education Foundations mission is to prepare the future engineers and technologists for manufacturing careers through outreach programs to enrich students to study Science, Technology, Engineering, and Mathematics (STEM) in alignment with SME. c. To operate and act exclusively for charitable and educational purposes as such terms are used in code section 501(c)(3). d. To receive and administer assets exclusively for charitable and educational purposes as such terms are used in code section 501(c)(3). e. To conduct any and all such activities and exercise any and all such powers as are necessary or desirable to the achievement of the foregoing and in furtherance of the purposes of the corporation. Form 990, Part III, Line 3 CHANGE TO PROGRAM SERVICE ACCOMPLISHMENTS Prior year programs "Grants to other 501(C)(3) organizations in support of STEM education initiatives"Educational websites and events" are now combined. Support for educational websites "Manufacturing is Cool"CareerMe" was discontinued. FORM 990, PART V, LINE 2A NUMBER OF EMPLOYEES ON FORM W-3 The number of employees reported (6) corresponds to dedicated SME-EF employees, although all wage/W-3 reporting is solely through SME, the common paymaster. All SME-EF staff are employed by SME, which also provides access to employee benefit plans. SME-EF reimburses SME for its employee costs.”

“Other changes in net assets revaluation of charitable gift annuity obligations: ($70,387) ----------- total ($70,387)”