Intermediaryed

“Joseph a. Aguerrebere, jr. And belle s. Wheelan have a business relationship with sarita e. Brown to the extent that they are directors of a tax-exempt organization that employs sarita e. Brown. Some officers and directors have a business relationship with other officers and directors to the extent that they also serve together on the boards of other related entities: (1) jon s. Whitmore and thomas j. Goedken are directors of act international b.v. (2) jon s. Whitmore and thomas j. Goedken are directors of act education solutions ltd (hong kong). (3) jon s. Whitmore and thomas j. Goedken are directors of act education solutions (australia) pty ltd. (4) jon s. Whitmore and thomas j. Goedken are directors of act information consulting (shanghai) co ltd. (5) jon s. Whitmore and thomas j. Goedken are directors of act business solutions b.v. (6) thomas j. Goedken, mark d. Musick, and charles b. Reed are directors of act bridge, inc. (7) thomas j. Goedken, jon l. Erickson, and chad p. Wick are directors of act aspire, llc. (8) jon l. Erickson and thomas j. Goedken are directors of pacific metrics corporation.”

“Procedures for review of form 990 the audit committee of the corporation conducts a substantive review of the form 990 prior to its filing with the assistance of the outside tax preparer and the corporation's chief financial officer, counsel, and staff. The final version of the form 990 is provided to all of the members of the corporation's board of directors before it is filed with the irs.”

“Act has created an ethics advisory committee. Members of the ethics advisory committee review conflict of interest questionnaires submitted by employees and are responsible for seeing that conflicts of interest are investigated and appropriately addressed. They also work closely with act's human resources department to develop education and training programs for employees regarding the conflicts of interest policy and ethics issues. The ethics advisory committee reports directly to the audit committee of act's board of directors. Conflict of interest questionnaires submitted by directors or officers are reviewed and addressed by the executive committee of the board of directors.”

“Compensation of officers and directors is determined by the board based upon a process that includes a compensation committee of the board and an independent compensation study conducted by a professional firm that includes review of compensation published by similar organizations contained in form 990. With the exception of board officers who by their nature cannot be considered independent due to serving on the executive committee, which serves as the compensation committee, compensation for the ceo, all other officers, and key employees is reviewed and approved by independent persons. Compensation of key employees is informed by the same study and is established by the board annually. All other employee compensation is reviewed at least annually, under the direction of the human resource department and includes applicable data gathered and reviewed.”

“Act does not make its governing documents, conflict of interest policy, and financial statements available to the public.”

“Per act policy, board members are expected to participate in four three-day board meetings, committee meetings that occur throughout the year, and at other times to discuss important and strategic matters pertaining to act. In exchange for their valuable time and service, act compensates the board with an annual amount that is prorated for meeting attendance and partial years of service. The chairman of the board and committee chairs, as well as board members who are requested to provide time other than for meeting attendance, receive additional compensation at a commensurate rate. In addition to serving as a voting member of the board of directors, jon s. Whitmore also serves as ceo of act. His compensation as ceo is disclosed on form 990, part vii, section a and schedule j. He receives no additional compensation for service as a member of the board of directors.”

“Hours listed for each individual are reported on a calendar year basis.”

“Act has state organizations that serve as advisory and advocacy groups to facilitate communications between act and the educational institutions and agencies that participate in act programs. These organizations are not separate legal entities, but do have organizing bylaws. The state organizations provide feedback to act on its programs as they relate to the information needs of individuals, schools, and agencies in the state. There are 823 representatives including educators, agency personnel, leaders of state associations, and workforce professionals who actively volunteer their time to serve in an advisory capacity by attending meetings with act regional and national office staff to provide input.”

“Other operating expense: program service expenses 9,680. Management and general expenses 100. Fundraising expenses 0. Total expenses 9,780. Honoraria other: program service expenses 5,250. Management and general expenses 9,000. Fundraising expenses 0. Total expenses 14,250. Essay scoring: program service expenses 9,671,422. Management and general expenses 0. Fundraising expenses 0. Total expenses 9,671,422. Item development: program service expenses 1,317,100. Management and general expenses 0. Fundraising expenses 0. Total expenses 1,317,100. Other data processing: program service expenses 509,741. Management and general expenses 5,283. Fundraising expenses 0. Total expenses 515,024. Computer programming-external: program service expenses 668,010. Management and general expenses 0. Fundraising expenses 0. Total expenses 668,010. Computer processing-external: program service expenses 14,187,096. Management and general expenses 67,271. Fundraising expenses 0. Total expenses 14,254,367. Consulting fees: program service expenses 21,651,500. Management and general expenses 1,213,620. Fundraising expenses 0. Total expenses 22,865,120. Other services & fees: program service expenses 21,651,500. Management and general expenses 1,213,619. Fundraising expenses 0. Total expenses 22,865,119.”

“Net depreciation in fair value of interest rate swaps -29,214. Increase in net assets - act international 239,333. (decrease) in net assets - act bridge -3,913,537. Increase in net assets - act foundation 4,392,834. Equity in net loss of nonmarketable equity securities -6,840,499.”

“The organization's audit committee assumes responsibility for oversight of the audit of its financial statements and selection of an independent accountant.”