American Academy of Dermatology Inc

“Aad is an association representing approximately 19,500 dermatologists, who become members of the academy. The academy has nine classes of members but only fellows and life and honorary members who were fellows are eligible to vote and serve in any elective office. Members annually elect the president to a three year term as president elect, president, and past president and vice-president to two year term as vice-president elect and vice president. Additionally, members also elect four directors to serve a four year term. Proposed amendments to the by-laws by the board of directors are subject to approval by the membership.”

“See explanation of line 6 above.”

“See explanation of line 6 above.”

“The board retained the services of an independent cpa firm to prepare the organization's form 990. Management reviews the completed form 990 and provides a full copy to the board of directors prior to filing. The return is posted on a secured web site for their review. Board members are given a reasonable period of time to contact either management or the cpa firm with any questions.”

“Officers, directors, committee members, editors, speakers, and key employees are annually required to complete a conflict of interest disclosure statement as a precursor to their service to the organization. Detailed below is the disclosure process: disclosure process 1. The individuals covered are required to electronically submit a disclosure statement acknowledging a duty to serve the academy in good faith and with undivided loyalty. These individuals are to describe all personal or professional circumstances which might create a potential conflict of interest with the interests of the academy. Accompanying this policy statement as exhibit a is a sample copy of such a disclosure statement. Members who do not submit a yearly conflict of interest disclosure, may lose the right to hold office and serve in the governance structure and, except in unusual circumstances approved in advance by the board of directors, to participate in academy programs as a faculty member, presenter, or scientific exhibit contributor. Review process 1. Officers, directors, chairs and members of councils, committees, and task forces, the editors of jaad and senior staff will submit their statements directly onto the academy website with oversight by the secretary treasurer. 2. The statements are provided at every committee meeting to all committee members. If necessary, the chairmen will forward those that appear to have conflicts which could prevent them from serving to the secretary-treasurer with any relevant observations or recommendations. 3. The secretary-treasurer will review all statements submitted for further review and if necessary will forward to the ethics committee, while at the same time informing the board of directors of any conflicts that appear especially significant. If further clarification is needed the ethics committee will utilize the academy oversight committee. 4. The ethics committee will review and initiate any request for further information and promptly prepare a report to the secretary-treasurer regarding its findings. The secretary-treasurer will report to the board of directors on any items found by the committee to be of special significance. All electronic disclosure statements will be retained on the academy server. They will be available electronically for review by members of the board of directors and staff, and upon request by academy members. They will be available to the council, committee and task force members to review prior to all conference calls and meetings. All members filing an annual disclosure statement will be obligated to promptly update any change in circumstances which might give rise to an actual or potential conflict of interest. Members also should verbally disclose and update their conflict of interest form for any relevant conflicts that may occur during a conference call or meeting that do not already appear on the disclosure form. Chairs of councils, committee and task forces are required to include in the summation report any conflict of interests that have been expressed by a member during a meeting or conference call.”

“The executive director: it has been standard practice for the academy to comply with the internal revenue codes section 4958, following best practices for ensuring compliance and establishing a rebuttable presumption of reasonableness as it relates to compensation. The academy uses fair market value to determine cash and non-cash compensation for the executive director/ceo. Fair market value is based on market data. Market data may be collected from a variety of methods, including published or off the shelves surveys, surveys managed by third party consultants, compensation analysis performed by third party consultants, and surveys managed by a group of organizations. The competitive market is typically defined in terms of revenue and company size. To define competitive market the academy considers the following as valid resources for comparable market data:companies with similar operating budget; companies with roughly same number of employees; and companies who operate under like circumstances. Compensation decisions are recommended by the compensation committee that consists of independent officers of the board of directors and approved by the board of directors. The decisions are based on analysis of comparable market data. Other officers or key employees of the organization: key employees of the organization's compensation are determined in the same fashion of the executive director although their compensation decisions are approved by the executive director.”

“The academy's governing documents and conflict of interest policies are available on the academy's web site for the membership and public to view. The annual financial statements are published in dermatology world, the academy's magazine, and are available on guidestar.”

“The compensation reported in part vii is the compensation paid by the filing organization american academy of dermatolgy (aad) for a full-time position. However, a portion of the various individual's time is devoted to a related organization, american academy of dermatology association, inc. (aada). The filing organization is reimbursed by aada. The organization estimates the approximate hours per week dedicated to aada and aad.”

“Officer compensation allocated to aada 1,385,038. Returned grant funds 69,885. Contributions from related entity 215,236.”