United States Naval Academy Alumni Assoc

“Regular members are graduates of the united states naval academy (the "academy") and former midshipmen who did not graduate from the academy, after the last academy class of which they were a member has graduated and who, in each case, have applied for membership and have been admitted. Regular members have the right to vote, to hold office, to serve as trustees and shall pay dues. Each regular member is entitled to one (1) vote in all elections conducted per section 4.6(a) of the bylaws, and all questions presented to the membership for action. In order to maintain a strong and vibrant organization, the association may from time to time establish additional classes of membership with criteria for such classes of membership and approval of individual members to be determined by the board.”

“See explanation for form 990, part vi, section a, line 6.”

“The form 990 was reviewed by management and members of the joint finance and audit committee of u.s. Naval academy alumni association and u.s. Naval academy foundation with our tax preparers and sent to members of the board of trustees and to the irs.”

“The conflict of interest policy is sent to each board/trustee member at the beginning of the calendar year with a self addressed envelope for responding. The policy details potential conflicts of interest and the need to disclose such conflicts. The policy also defines the board/trustee's member fiduciary obligation to the organization. All conflicts of interest statements are returned to the board secretary's office and kept on file. Any statements with an affirmative conflict are circulated to the board and the board member agrees to answer any questions regarding the conflict. The completed signed conflicts of interest statements are reviewed by the organization's audit firm during the annual audit for completeness and to ensure that all board/trustee members are included.”

“The process for determining compensation of the ceo, other officers and key employees of the organization "includes a review and approval by independent persons, comparability data, and contemporaneous substantiation of the deliberation and decision." specifically, the organization takes all of the steps necessary to ensure that the compensation packages of these individuals are not only reasonable and competitive, but are designed and determined in the precise manner specified in the internal revenue service's "intermediate sanctions" regulations. The process for determining the compensation packages of these individuals is as follows: 1. A joint compensation committee is constituted that is composed entirely of current and former trustees and directors meeting a strict "no conflicts" independence test set forth in the irs regulations. The joint committee is chartered by the boards to evaluate and approve the compensation of the senior executives. The approved compensation levels are included in the annual operating budget which is subsequently approved by both boards. 2. The committee acquires appropriate, independent market comparability data from its professional compensation consultant. 3. The committee reviews this comparability data in detail, posing appropriate questions to its professional compensation consultant. 4. The committee reviews the qualifications, experience and performance of each of the individuals against the comparability data acquired from the professional compensation consultant. 5. The committee designs a proposed compensation package for each of the individuals and seeks a written opinion from the professional compensation consultant that the proposed compensation package is reasonable. (the committee makes any adjustments to the proposal required in order for the professional compensation consultant to conclude that the package is reasonable.) 6. The committee memorializes all of its deliberations in detailed committee minutes that are reviewed and corrected, if necessary and approved at its following meeting. 7. The committee acquires an opinion of counsel concluding that the process followed by the committee meets the requirements of the irs regulations. 8. The committee regularly reviews its process to ensure that it continues to meet all of the requirements of applicable law.”

“The organization makes all necessary and required governing documents, conflicts of interest policies, financial statements, form 990s and annual report available on its website: www.usna.com for the same period of disclosure as set forth in section 6104(d).”

“All information reported on this 2015 form 990 is reported on a fiscal year beginning july 1, 2015 and ending june 30, 2016, with the exception of information that is reported for compensation on schedule j and part vii of the return. Compensation listed on these schedules is based on calendar year reported compensation (per the 990 instructions) for the calendar year january 1, 2015 and ending december 31, 2015.”

“Several officers of the united states naval academy alumni association are dually employed by a related organization, the u.s. Naval academy foundation. Hours devoted to the foundation are listed below for the officers involved in both organizations: officer hours devoted to foundation byron f. Marchant 36 henry j. Sanford 33 geraldine s. Farmer 33”

“To serve and support the united states, the naval service, the naval academy and its alumni: by furthering the highest standards at the naval academy; by seeking out, informing, encouraging, and assisting outstanding, qualified young men and women to pursue careers as officers in the navy and marine corps through the naval academy; and by initiating and sponsoring activities which will perpetuate the history, traditions, memories and growth of the naval academy and bind alumni together in support of the highest ideals of command, citizenship and government. The mission statement of the related entity, the u.s. Naval academy foundation: to support, promote and advance the mission of the naval academy by working in conjunction with academy leadership to identify strategic institutional priorities and by raising, managing and disbursing private gift funds that provide a margin of excellence in support of the nation's premier leadership institution.”

“Change in split interest agreements -93,062.”

“For gaap purposes, the organization presents its activity in a consolidated format with its related entity, the u.s. Naval academy foundation. These consolidated financial statements are audited by independent auditors. The gaap financial statements include supplementary information that presents the financial position and the changes in net assets of the association.”

“The u.s. Naval academy alumni association is the paymaster for both the association and the u.s. Naval academy foundation (a related organization). Due to the association's role as paymaster for both organizations, the association reports both association and foundation employees for w-3 purposes and the foundation does not report employees for w-3 purposes. The association files all related employment tax forms. All payroll expenses related to the foundation are recorded as a receivable to the association and a payable from the foundation.”